Guideline 4.9 - Tender evaluation - Target price method
- Guideline 4.1 - Tendering authority procedures
- Guideline 4.2 - Invitation to tender
- Guideline 4.3 - Expedited tender procedure
- Guideline 4.4 - Short listing procedures
- Guideline 4.5 - Tender evaluation specification
- Guideline 4.6 - Tender evaluation process
- Guideline 4.7 - Tender evaluation - Brook's law method
- Guideline 4.8 -Tender evaluation - Weighted attribute method
- Guideline 4.9 - Tender evaluation - Target price method
- Guideline 4.10 - Tender negotiation
- Guideline 4.11 - Notification procedures
- Guideline 4.12 - Conformity with RFT
- Guideline 4.13 - Use of particular inputs
Guideline 4.9 - Tender evaluation - Target price method
Target Price is an alternative evaluation method for professional services contracts. Target Price Method is most useful for contracts where the outputs are difficult to specify or quantify. The types of contracts suited to the Target Price Method are: strategy studies; feasibility studies; transportation studies; and investigations. The Target Price Method has not been recommended as an alternative method for physical works because for those contracts the outputs can be specified reasonably precisely and the tendering authority should be able to estimate the approximate price to expect. However, for the above types of professional services there is often less information on which to base the possible range of expected prices.
Tenders only need to be submitted in one envelope as price is specified in the RFT.
If two or more tenderers score the same overall index, the tendering authority should consider the relative amounts of output proposed in the methodology as means for selecting the preferred tenderer.
