Contracts and Tenders MCQ with answer and solution

Concept

Tendering methods in construction contracts

Formula

NONE

Step-by-step solution

1. Open/public tenders are published broadly for any registered contractor to submit bids. 2. When the employer/architect restricts invitations to a selected roster of verified contractors, it is known as a limited or selective tender. 3. Negotiated tendering involves direct negotiation with usually a single contractor. 4. Therefore, inviting a few selected contractors constitutes a Limited tender. Answer: B

Explanation

When an owner or architect selects a restricted list of pre-qualified, competent contractors and invites only them to submit bids rather than advertising to the general public, the process is termed a Limited Tender (or Selective Tender). This reduces bid processing overhead and ensures only capable firms participate.

Why the other options are wrong

A) Negotiated tender involves direct price discussions with a single selected party without competitive bidding. C) Open tender is publicly advertised and open to all qualified contractors. D) Public tender is synonymous with open tender, requiring general public notice.

Shortcut

Selective invitation to a few contractors = Limited Tender.

Common mistake

Confusing limited tender with negotiated tender; limited tender maintains competitive bidding among a selected group, whereas negotiated tender negotiates directly with a single contractor.