{{norefs, date=July 2022
Selection in Planning also known as SIP is a method of selection used to identify suitable
vendor
In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms ...
s and
contractors
A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of ...
and is an alternative to selection through
Tendering
An invitation to tender (ITT, otherwise known as a call for bids or a request for tenders) is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business ...
.
SIP has gained momentum in those environments where a customer's requirements are subject to ongoing changes or where the development of a project or procurement exercise is expected to be implemented gradually. In such circumstances customers may choose to employ the SIP process rather than issuing a formal tender.
The advantages of SIP are that changes to a customer's requirements or specifications do not require that this information be re-issued as would normally be the case with a tender (with the exception of minor modifications). Instead a customer, during the planning process of a project or procurement requirement, solicits ongoing information and feedback from prospective vendors and contractors making an assessment of their capability, skills, financial competitiveness and overall suitability during the communications process.
The SIP process is sometimes considered by critics to be a less formal procedure in which the qualification of vendors and contractors is not addressed with the same scrutiny as would be the case in a tender. This belief is however erroneous as the quality of the SIP process, just as with tendering, is at the discretion of the selector. Those customers bound by statutory procurement procedures or corporate policies governing the same, apply these requirements to the SIP process by means of ongoing dialogue and solicitation of information from vendors and contractors.
For these reasons and among specific industries, such as construction, as well as in certain economic environments, the SIP process is considered to be a viable alternative to traditional tendering and which has resulted in the rapid growth of this process in recent years.
See also
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Procurement
Procurement is the method of discovering and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. When a government agency buys goods or serv ...
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Construction bidding
Construction bidding is the process of submitting a proposal ( tender) to undertake, or manage the undertaking of a construction project. The process starts with a cost estimate from blueprints and material take offs.
The tender is treated as an ...