Two-stage tendering appoints a contractor early to secure its design and buildability input; the first stage selects the contractor and fixes the pricing basis without any binding contract, and the second stage converts the outline into a firm contract, with pre-construction agreements covering the interim work

Two-stage tendering appoints a contractor early, during the design period, on large or complex schemes, so the professional team can use the contractor's buildability and programming input. It runs in two stages. The first stage selects the contractor and fixes the basis of the price, using approximate bills or a schedule of rates, with the design frozen at the bid date. Selecting a contractor at this stage is not an award: no contract is let, neither side is committed, and the contractor carries the cost of its early work with no right to reimbursement unless a contract follows. The second stage converts the outline into a firm contract, with the contractor contributing to design, documents, price and health and safety. Because the contractor often works before any building contract is signed, standard pre-construction agreements exist to cover and pay for that work.