You are here:
Construction Industry/tendering
Advertisement
Question
Please could you tell me the meaning of the terms open tendering and selective tendering with regards to the building industry and how each meathod works and the advantages and disadvantages of each.
Id be extremely greatful for any information you might have. Thanks for your time.
Hello Max,
"Tendering" is a word used when "making an offer" or when proposing an offer such as "tendering a loan". I have heard of an "open tendering" which when applying for a loan, the borrower receives an "open tendering which will apply to any purchase. For example, I want to know how much I can borrow based on my assets, income and potential. The bank will write an "open tendering" for a future loan when I find a home in the price range of the tendering plus my earnest money.
As for a "selective tendering" - that term is new to me but I rather suspect that it would apply, as in the previous example, as an offer to loan based on the home being chosen as being approved by the lender. In other words, the bank or lender is selective in what properties they will invest in.
Whenever I purchase a property or land, I ask the lender to tender me a loan appraisal. A "tendering" is not a binding offer but rather an "overview" of what the lender "thinks" is a good investment. It is not a "commitment" for a loan until the lender has determined that I can afford to buy the property and have the ability to pay back the loan. The lender usually has a list of "conditions" that apply and also a list of requirements which must be met, i.e. a credit report, bank balance, assets, etc. Often the borrower must pay a fee to the lender or mortgage broker in order to obtain a "commitment" for a loan.
I hope this was helpful.
Roger
Related Articles
Answers by Expert:
Roger Zona
Expertise
I am experienced in all types of construction: residential, industrial and commercial; single family, multi-family, mid-rise and high rise buildings (16 story office building) as well as remodeling, additions and tenant improvements. I can field most any question that relates to general construction. I have consulted with infrastructure (utility) contractors also and have a good general knowledge of underground utility construction for subdivisions and commercial projects.
Experience
After college, I began my career in the construction industry. I chose to become an apprentice Architect and 4 yrs later I opened my own architectural design firm. Six years later I moved to Florida to buy & develop land and build. I became a State of Florida Certified General Contractor and operated my business for 45 years. I built all types of residential and commercial buildings including warehouses, shopping centers, high rise apartments and office buildings and developed sites for other contractors. I retired and became a consultant to the construction industry. I maintain my license and continuing education requirements, operate a small construction company and write a weekly newspaper column for the Palm Beach Post (a Cox publication) with the byline "Ask The Contractor". I am the "technical editor" for a publisher of books that relate to home maintenance.
Organizations
Previously - NAHA
Currently - FLCA (Florida Licensed Contractors Assoc.)
Publications
Palm Beach Post newspaper - weekly Q & A column
Happy Herald monthly real estate publication - monthly column
Education/Credentials
Michigan State University
University of Detroit
BS in Engineering
Past/Present Clients
I built a home in Palm Beach for a member of the Pulitzer Family.
I was responsible for the completion of a twin hi-rise condominium project for G.E. Credit.
I was a partner in the successful development of a P.U.D. (Planned Urban Development) subdivision.
I represented the largest home builder from France (Bati Service, S.A.) in the development of a subdivision and the design and construction of the homes.
©2012 About.com, a part of The New York Times Company. All rights reserved.