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. As the process can take a long time and contractors are increasingly reluctant to engage in single stage tenders due to the bidding risks, The process also means clients are unable to benefit from early contractor engagement. The added pressure may mean contractors look for ways to cut costs, possibly at the expense of quality. However, if elements from the project specification are missing or are unclear, it can lead to adjustments being made later in the contract, and the final account may be very different as unforeseen costs mount up. It can be an efficient route to obtaining a contractor. The process seeks to ensure that the client is able to secure a competitive price and to this end, the contractor may decide to price aggressively in order to secure the project. Single-stage tendering, also known as traditional tendering, is when a client issues a tender for the whole project, with all the relevant information provided at the point of issue. In essence, there are two main procurement routes single stage and two stage tendering. However, recent figures within the sector have given some to question the sustainability of such rates, and whether the method of procurement has been a contributor. I should start by saying that profit shouldn't be a dirty word in the construction industry - after all, businesses need cashflow to survive and to ensure that they remain engaged with their supply chain. In difficult times, it is easy to understand why construction contractors may cut prices to win work.