In construction, the tendering process is the main way general contracting firms invite subcontractors to tender on work the head contractor wants to subcontract out. Head contractor’s contract out the majority of site work to subcontractors, so the tendering process is an incredibly integral part of a construction project. This process allows general contractors to hire subcontractors at a competitive rate.
- General contractors send tender invitations to subcontractors.
- Subcontractors receive a tender package that outlines the scope of work that needs to be complete.
- Subcontractors download tender documents and review the project information based on their cost codes.
- Subcontractors submit their tender to the head contractor of the project.
- General contractors award a tender to the subcontractor with the winning tender and convert it to a commitment.