Tender & evaluation
Why are not all contract packages awarded/contracted to one single supplier/contractor
Partitioning the project into multiple contract packages has following advantages:
- Timing: not all work packages require the same urgency in execution, hence the works on site can start before all work packages are contracted. This supports a shorter project lead time compared to the traditional general contracting.
- Flexibility: during execution on site multiple contract packages allow flexible planning regarding work regimes, space allocation, fasttracking, … . The span of control for the customer in such case is much higher compared to the traditional general contracting.
- Cost: when all contract packages would be contracted to one single contractor there would be a cascading of markups without creating any added value. By assigning contract packages directly to the most suitable contractor/supplier such profit cascading mechanism is avoided.