Types of Tender Practiced in Malaysia

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There are several types of tender practiced in Malaysia. Among the commonly practiced are open tenders, selective tenders and tender negotiations. Each type of tender has advantages and disadvantages respectively and its implementation is depending on the suitability of the tendering process. The selection of a tender in a construction project relies heavily on several key factors such as the size of the project, the construction site, the suitability of the time and cost spent, experience and so on (Suraya Yusuf, 2006). 2.2.1 Open Tender Open tender is the type of tender that is commonly practiced in the construction industry by the government and statutory bodies or private. This type of tender is used to obtain the most reasonable price for a contract. Open tender competition is usually fair and will ensure the tender price is accordance with the current market price. Clients will advertise the offer in local newspapers to invite the interested contractors to offer reasonable tender price for the project (Suraya Yusuf, 2006). Open tender has several advantages compared with the other types of tender. Open tender give equal opportunity to all contractors, especially newly registered contractors and less experience. This is because the selection is based on the cost offered by each contractor. In addition, it also does not require the skills and specific qualifications. This type of tender is competitive in nature and can create a healthy competition between contractors

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