TENDERING AS AN EFFECTIVE TOOL FOR VENDOR SELECTION
ABSTRACT
Tendering has for a long time stood as an effective method of purchasing essential materials both in the public and private sectors.
These procedures tend to protect the interest of the bidder and the purchaser and further tries to reinforce the concept of openness and impartiality when the parties involved are satisfied.
Chapter one of this research work focuses on situation that pave way for the use of tendency , advertisement and bid list, method of tendering, open and selective tendering, disadvantage of tendering and his historical background of the company under review, statement of problems, research question, significance of the study, research hypothesis etc.
In chapter two, the researcher reviews some facts drawn from the authors that relates to this project work. The general procedures of tendering pre-qualification of contractors, general principles of receiving opening and awarding contracts in the private sector and award of contract. Chapter three, welcomes research methodology which comprises the research design, the questionnaire design sampling the section procedures of respondents, data source, data analysis. While chapter contains the researchers presentation analysis and listing of hypothesis and his further observation from the company under review. Finally, chapter five, the researcher summarizes, concludes and recommends areas of improvement. It also contains bibliography.
CHAPTER ONE
TENDERING AS AN EFFECTIVE TOOL FOR VENDOR SELECTION
1.0 INTRODUCTION
Tendering is widely discussed by the purchasing text books as an act by which submission of a quotation is made by a tender when so desired by a client, which may be an individual, a group of people, a company, government or any of it’s parastatals.
According to Oyeku and Nwanneka (2001) tendering which is a widely acclaimed from purchasing is monthly used in local, state and federal government purchasing. It represents one of the three methods through which buyers can determine the price to be paid for goods a and services he purchases.
Tendering also help the purchaser to obtain the best and supplier that can meet the requirement and it is usually required when the monetary value of the purpose purchases exceeds statutory naira limitation. Tendering is used sometimes in the private sector to obtain a fair and reasonable price especially in respect of contraction and service contract.
Procedures associated with tendering are designed to protect the interest of both the tender and the purchaser and to reinforce concepts or openers and impartiality. These situations that pave way for the use of tendering, they are as follows:
i. Where the monetary value of the contract is huge and high.
ii. Where the sellers are technically qualified.
iii. Where there many suppliers who are willing to bid.
iv. Where the terms of delivery is very important.
v. Where the specification of items or services must be discussed.
