"supplier is extremely obliging, but discovers that this change will double the cost of theitems……the vendor comes out ahead."Disadvantage #4: Use of cheaper, poor quality materials and/or laborA supplier forced to play the competitive tendering game may come under pressure to keep costsdown to ensure he gets a satisfactory profit margin. One way a supplier can lower costs is byusing cheaper labor and/or materials. If the cheaper labor and materials are poor quality, theprocurer will often end up with inferior, poor quality product or service. Warranty and otherclaims may result –raising the price of the true, overall cost.Disadvantage #5: Safety shortcutsAnother area where suppliers may be tempted to lower costs is safety standards. An example isreported in this news link. In this case sub-contractors seemed to be cutting corners and creatingsafety risks. As a result the buyer was urged by the union to put in checks and balances in thetendering process. Such checks and balances a) miss Deming‘s points about the flaws incompetitive tendering, b) create financial costs, time delays, and c) make it more likely fordisagreements about terms to occur, perhaps leading to litigation.Disadvantage # 6: Competitive tendering can be extremely slowWhen government agencies, and indeed, private companies use competitive tendering it can takeseveral years to choose a successful bidder. The result is the customer can wait incredibly longperiods for product or service that may be required quickly. A situation that compounds theproblem of lengthy time frames of competitive tendering is when a selected supplier is unable tomeet the requirement that he has contracted for. To the procurer‘s frustration, the lengthy competitive tendering process may have to begin again. As such, it is rework caused bycompetitive tendering itself.Disadvantage #7: Insufficient profit margin to allow for investment in research and development,new technology or equipment. Competitive bidding can force a supplier to accept a very slimprofit margin. These low margins can result in a supplier having little or no money to spend onresearch and development, new technology and equipment. The result – society gets a lowerprice tag today, but society loses out tomorrow and well into the future.Describe the Complexity of Bidding and it’s impacts on the industry.Ans. 10 Complexity of BiddingShash (1993) explains that the decision to bid making is complex and hard to make, because ifthe company decide not to bid, they just lose an opportunity. On the other hand if the companydecides to bid, the direct cost will be borne immediately and the value of decision outcomewould not be defined in short period. An incorrect decision would lead to contractor losses theiroperating capacity, reputation and capital. Egemen and Mohamed (2007) agree that bid/ no biddecision making is affected by the specific project characteristics and complex externalsituations. The bidding decision making is very complex and it is required to consider a largenumber of relevant factors to achieve the decisionIt‘s Impact on the Industry? The whole process of tendering in construction and engineering industry is acomprehensive and complex procurement process and very expensive exercise forEmployer and Tenderer as well.? Bidding especially for big and complex projects can be a very costly exercise equally forEmployer and Tenderers, but this would be money well spent if the targets achievesuccessfully.? Further, the tender documents normally consist of voluminous amount of paperdocuments due to the complex requirements of tender, and printing all these documentsand sending them to all Tenderers individually is totally wasteful.? Selection of the medium of exchange of information depends on the size and complexityof project. The medium of technology implemented between project‘s size andcomplexity. "