Project Management in the Oil and Gas Industry

6.9.2 Limited 
Tender
Limited tender is usually used in most special industrial projects, 
as there is a limited number of contractors or vendors working in 
industrial projects. It is very important that before registering the con-
tractors on the company bidder list a pre-qualification assessment and 
audit for these companies should be performed as per ISO procedures 
and requirements.
In this case, the owner has a record of suppliers and contractors. That 
kind of tender calls for a specific number of contractors to be registered 
with it that are known to already have previous experience. This type of 
tender is carried out in most private companies and in some government 
departments to limit the participation by a number of suppliers and con-
tractors involved, both within and outside the country.
In the procedure steps for the call for tender, the tendering and selection 
of the best bid uses the same method as public tenders.
More recently, as a result of the presence of the international network of 
information website, some international companies have been taken by the 
new launch tenders, especially in the case of limited tenders, which is well 
known in some minor companies.
The owner will make a website on the Internet, and the bidders for each 
company have the right to enter the page and change their prices. This 
method provides the ability to see the prices of the competitors. The advan-
tage of this method is that there is a high transparency in the data and 
that all parties know why a company wins the bidding without getting into 
rumors and excitement, which was considered a type of negotiated tender, 
but through the Internet. On the other hand, it needs a precise description 
specific for each item.
This tender is commonly used in oil and gas companies, specifically for 
chemical tenders, as the specifications are very precise and defined well 
and there are only a few famous suppliers for these types of chemicals in 
the market worldwide. So it is very easy and helpful for the owner to obtain 
the best price.

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Tendering, Bidding, and Contract Traps 203