Q4. The following sub-questions are about tendering methods.(a) Open tender, selective tender, negotiated tender and serial tender are fourtypes of common tendering methods. What are the definitions of opentender, selective tender and negotiated tender, respectively?(12 marks)(b) Company A plans to introduce alterations and additions to an existing 6-storey primary school building. You (as a project manager from a contractor)are approached by Company A (the client) to give advice on the tenderingmethod for this project. The client expresses that they will have the contractprice fixed and the scope of project well-defined in the tender document.What are your suggestions?

(a) The definitions of open tender, selective tender, and negotiated tender are as follows:

1. Open tender: Open tender is a method where any interested contractor or supplier can submit their bids or proposals for a specific project. The tender is publicly advertised, allowing a wide range of potential bidders to participate. The selection of the winning bid is typically based on criteria such as price, quality, and compliance with the tender requirements.

2. Selective tender: Selective tender is a method where the client pre-selects a limited number of contractors or suppliers to invite to submit their bids or proposals for a specific project. The selection is based on criteria such as the contractor's experience, qualifications, and track record. This method is often used when the client wants to ensure that only qualified and capable contractors are considered for the project.

3. Negotiated tender: Negotiated tender is a method where the client negotiates directly with one or a few selected contractors or suppliers to determine the terms and conditions of the contract. This method is typically used when the project is complex or unique, and the client wants to have more control over the selection process and contract negotiations.

(b) Based on the client's requirements of having a fixed contract price and a well-defined scope of the project in the tender document, the following suggestions can be made:

1. Design and Build (D&B) tender: In this method, the contractor is responsible for both the design and construction of the project. The client can provide a clear scope of work and specifications in the tender document, and the contractor can propose a fixed price based on those requirements. This method allows for a streamlined process and can ensure that the project is delivered within the specified budget and timeline.

2. Lump sum tender: In a lump sum tender, the contractor provides a fixed price for the entire project based on the well-defined scope of work provided by the client. This method is suitable when the project requirements are clear, and there is minimal risk of changes or variations during the construction phase. The client can compare different bids based on the fixed price and select the most competitive offer.

3. Two-stage tender: In a two-stage tender, the client first invites contractors to submit their qualifications and initial proposals. Based on the evaluation of these submissions, a shortlist of contractors is selected. The shortlisted contractors are then invited to submit their detailed bids, including the fixed price, based on the well-defined scope of work. This method allows for a thorough evaluation of the contractors' capabilities and ensures that the final bids are based on a clear understanding of the project requirements.

It is important to consider the specific needs and preferences of the client, as well as the complexity and nature of the project, when selecting the most suitable tendering method.