Tendering in the traditional procurement process is very competitive and is hindered by the varying costs. The administrative entity has the propensity of choosing the lowest bidders in an attempt to save on monies. This culminates into the project being undervalued and more monies will be required to complete the project. However, an advantage of the traditional procurement route is that the design of the project is done before the tendering process commences (Arai et al, 2006).
Contractors review the documents outlined in the contract and submit a price to complete the work. When accepted, the price submitted becomes the Contract Sum. A clear disadvantage since contractors are motivated by winning the tenders first and inflating the prices later, blaming their actions on economic climates. The only way that a contract sum can be altered, changed or amended, is through variation of the design. This is not allowed, as evinced in the previous chapter (Strauch, 2009).
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