Competitive Tender And Contract Case Study

1058 Words 5 Pages
Jones (2004) says that Competitive Tendering and Contract (CTC) of services concerned on needs for fairness and the vital requirement to minimize any risk of corruption. However, there are some issues that will arise in the CTC especially involving the supplier selection process that is responsible for providing services. Purchaser are responsible for the selection of contractors / suppliers and the selection process depends specifies criteria in terms of cost, quality services and value for money. But the role of the CTC to select contractors who are capable of carrying out the tender offer does not function when local government officials do not choose a contractor based on criteria that should be considered in the tendering process. Sometimes …show more content…
Abbott, Blackburn and Curran (1996) say that smaller contract for authorities was that it was easier to locate and deal with a problem. Contractors also can monitor each other contractors. If one contractor realizes that another contractor does not perform well, the contractor will take that chance to improve their quality of services. It is more likely the strategy of contractor that allows them to compete with other contractors. Breaking contracts up into smaller units also potential to helps Direct Services Organisation (DSO/DLO) because it will encourage the contractor to bid more frequently and increase their skills in the tendering process (Abbott, Blackburn & Curran, 1996). Breaking contracts up into smaller unit is a very important to improve the high quality of services. It is because it will encourage contractor to increase their skill that can make them able to compete with another contractor and then they tend to bid …show more content…
This is because small business opportunities depend on the size of contracts designated by the local government. The main reason for the large of contracts are the economies of scale this afford the authority (Abbott, Blackburn & Curran, 1996). In contracting out services, a variety of methods used to improve the quality of services delivered by third parties. One of ways that Local Government used it is about the breaking up contract into small units. The breaking up the contract to small units involves more resources devoted assigned to make an assessment of any contractor including tender documents, invoices systems, quality control and monitoring However, contracting out services can also be seen from the perspective of small business owners where it involved the size of contract that set by the local government can lead to a lack of competitive ability. Small business success depends on the size of the contract are set by local governments. If Local Government reduces the size of the contract, it will provide opportunities for small businesses to compete and to encourage them to improve the quality of service

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