It also negates the need for value engineering to reduce cost. The collaborative approach that the two stage procurement process promotes ensures that both the client and contractor can benefit from better outcome s. The second stage construction contract is negotiated by the main contractor, and subject to the approval of the design team. These typically include where sub-contractors are used. In reality however, there may be some items not previously considered, around which negotiations will ensue.
Ideally, the second stage of the process is then simply a exercise, using the criteria agreed in the first stage. This initial phase allows the contractor to submit details under a pre-construction agreement and includes aspects regarding project preliminaries, method statements, design, overheads, and profit. This enables early input between the main contractor and client, helping to ensure design and cost certainty, accelerating the project timescales. For most projects, and especially for those that are more complex, it is useful to obtain input before there is sufficient information available for the main contract. Two-stage tendering involves an initial information stage, facilitating early collaboration between client and contractor.
