1. a.
VARIOUS TYPES OF TENDER
OPEN
• Advertisement places
in local and national.
• Giving chance to the
new contractors to
involved in construction
team.
• Can enter by any
contractor.
• Not used high
experience to construct to
each project.
• This is very better to
the small project like
school project, renovation,
maintenance and etc
involved standard of this
tender.
• Used for low cost
project below five million.
TYPES OF TENDER
SELECTIVE
• Select from personal
contractors to develop each
project depends to client
needed.
• This types the owner
very high responsibility of
each project.
• Used for high cost
project like residential
house more then ten million
and since on.
• Selected contractor very
carefully because to
construct must be have high
experience.
• Selected by the
experience, skill, reputation
of work and etc.
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NEGOTIATED
• Prepare by discussion
between two people client
and contractor only.
• Used for high cost of
the project like construct
high way, stadiums and
since on.
• Used high experience.
• Involved foreigner
employee like engineer,
architect and since on to
contract that project.
• Selected based on
reputation, skill and
experience.
 ADVANTEGES DISADVANTEGES
 Open tender
a) Many changes select the a) Increased cost of tendering in terms
contractor which competition. of expensive production of contract
b) Will found suitable documentation.
contractor of each project. b) No guarantee that all tenders
c) Give chance to new receive are genuine.
contractors.
d) Can consider an appropriate
budget of that project.

 Selective tender
a) Only for have good a) Not give change for new
performance of work who qualify contractors.
of this tender. b) Only certain contractor can enter of
b) This tender used of this tender.
expensive project. c) Used not large of construction.
c) Selected of contractors very
carefully according to that project.
 Negotiated tender
a) This tender used project very high a) Not give change for new
cost. contractors.
b) Only one contractor which select to b) Only certain contractor can enter of
each project. this tender.
c) Used not large of construction.

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TENDER PROCESS
A. Pra - tender stage:
1. Prepare tender document which comprises:-
a) Bill of quantity/detailed specification.
b) Summery of tender. Prepare by Q.S base from B.Q &
specification
c) Basic drawing/detail drawing.
d) Schedule of rates (for lump sum contract). Prepare by architect.
e) Form of tender.
f) Invitation to tenderers which will include instruction.
g) Condition of contract. Prepare by
QS
h) Special provisions to the conditions of contract.
i) List of work in progress.

2. Prepare tender table document which comprises: - As

are reference to the tenderer if any problem on the tender offer.
a) All items above from (a) – (b) from of contract.
b) Letter of acceptable.
c) Bank and insurance guarantee form for performance bond.
3. Inviting tender by: -to show the tender to invite the
tenderer.
a) Advertising in the press.
b) Writing to selected contractors.
4. Display tender table document and issue tender document
to tenderers.

B. Post tender stage: giving litter head to tenderer who accept that project.

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 5. Receipt of tender document.
6. Opening and scheduling of tenders.
7. Evaluation and recommendation of the tenders to tender
board.
8. Award tender.

CRITICAL ANALYSIS

a) For this project I suggest two the client Mr. Tan Bon Yong to used the like to
construct I fill The used of tender on the construction project many types such as
open tender, selective and also negotiated tender where both of the types have
different function to each tender. We can see, for example the open tender which can
enter for all contractor without have high experience, new contractor or not and many
other. Basically, this tender very famous used in Malaysia country because many
project can found if compare with selective and negotiated tender.

b) Normally, in the construction project some of the tender not suitable to used to
each project like may be have good reputation of work, for example is selective
tender will that found are contractors which have experience, good work, good
reputation and since on. Beside that, selective tender only offer for certain contractors
because each is expensive project, so some of the tender not appropriate by that
project but some of tender can used like negotiated tender, its depends for that project
and to the client needed.

c) For the tender process, this stages very important to create one tender where there
have standard stapes such pra- tender stage and post tender stages. This stage have
different function for example, pra-tender stages where preparation tender document,
prepare tender table, inviting tender and another one display tender document is a
beginning of the process tender. After the pra- stage was given the post tender will
done where the entire document tender will receipt and then the tender will opening

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 to evaluation of document who that found the project. After all the process
completed the letter will given for contractor which eligible.

1. b SELECTION OF SUITABLE CONTRACTOR

1. Tender price (final)

Normally, in each tender must be considering are lowest price according that price of
project.
2. Reputation
Reputation means is before a one contractors enter for each tender or project they
must be have good reputation like complete a project at the time which given because
if the contractor not have good reputation may be they can’t enter each project.
3. Past experiences especially in jobs of a similar nature
Normally, for the contractors must be have experience before enter the tender to
develop that project because if contractors not have experience may be that project
delay on time and of that happen the period of that project can longest.
4. Track record
The record of contractors will be finding from start them as a contractor until follow
to each project such as background they record good or not.
5. Organization chart
The organization chart mean is how the contractor organize they company mainly,
how many people include of they company, preparation of any document and since
on because this very important in the criteria of each contractor.
6. Main power
As a one company in the construction industry, mainly they must be have an own
worker to construct any job. So, before they enter each project, how they have worker
to construct that project.

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7. Capital and equity structure
Consider t each if they have capital and equity like car, equipment and since on.
8. Finance and overdraft facilities
Normally, before enter an each project the contractor must have capital to cover any
budget in construction.

9. Plants and equipments

Same by financing and equity but focus for equipment on site like Crain, lorry and
many other.
10. Credit terms from suppliers
Consider for contractor even though that company have credit to buy any equipment.
11. Attitude
Basically, as a contractor must be have good attitude because this is symbol of
personality of each person.
12. Commitment
The contractor must have good communication with other person to discuss any
problem.
13. Responsibility
As a contractor must have responsibility to own job.
14. Performance and interviews
A contractor must have own decision to introduce for all members.
15. Presentation techniques
As a contractor must be have good presentation into discussion.
16. Technical expertise
In each company must be have expertise of certain part on construction project.
17. Prestigious projects
Evaluate if company have prestigious in constriction project.
18. Performance in original tenders
As contractor must have original job before enter of that project.

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1. c SELACTION OF SUITABLE CONDITION OF CONTRACT

STANDARD FORM OF CONSTRACT IN USE

PWM 203(Rev.10/83) Series

• PWD means is Public Work Department or JKR.
• Normally this form used in the pubic sector to develop the project who base in
government.
• Usually this form used in Malaysia country because standard form to government
project.
• PWD 203 usually has 56 clauses standard PWM.
• This form used in building and civil engineering work.
• There are various versions to the standard form;

Building contracts
P.W.D 203 - Condition of contract without quantities.
203A - Condition of contract with quantities.
203A1 - Condition of contract with provisional quantities.
203B - Form of tender for building contract with quantities.
203C - Form of tender for building contract without
quantities.
203D - Letter of acceptance
203L - Petty contract up to 50,000.00
203H - Nominated sub-contractors

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Mechanical contracts
P.W.D 203E - Contract for supply of engineering equipment and
plant.
203F - Form of tender for ditto. - ditto -
203G - Letter of acceptance for - ditto -

Supply contracts
P.W.D 203H - Contract for supply of stores.
203I - Form of tender for ditto.
203J - Schedules of stores ditto
203K - Letter of acceptance for ditto.

Quarry contracts
P.W.D 203Q - Contract for supply and delivery of metal.
203Q1 - Form of tender for ditto.
203Q2 - Schedule of rates for ditto.
203Q3 - Letter of acceptance for ditto.
203Q4 - Role for working of Government owner quarry.

Transport contract
P.W.D 203R - Contract for transport of material.
203R1 - Firm of tender for ditto.
203R2 - Schedule of rates for ditto.
203R3 - Letter of acceptance for ditto.

Other form
P.W.D Q4 - Form of tender for nominated sub-contractor.
Q5 - form of tender for nominated suppliers.

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 Q7 - Bank guarantee for performance bond.
Q8 - Earnest money bank guarantee.

PAM Standard Form of Building Contractor

• Meaning of PAM is Persatuan Architect Malaysia.
• This form used in the private sector of building industry.
• Normally, to this form used 34 clauses standard of PAM.
• This form similar by PWD 203 forms but base in lump sum method.
• Other one is PAM 69 construct base on drawing and specification and for contract
based on Bill of Quantity.
• PAM form used was referring to PAM/ISM 1969.

IEM Standard Form of Civil Engineering Contract

• IEM mean is Institute Engineering Malaysia.
• Usually this form used for private sector.
• Normally this form used of infrastructure and engineering project like behaviors
structure for example high way, residential house high cost and many others.

CIDB Standard Forms of Contract

• CIDB mean is Construction Industry Develop Board.
• Based in this form same by P.W.D include 56 clauses.
• This form used for private sector.
• This form is instead of PWD 203 and PAM forms.
• CIDB construct based by drawings and specification or for contract by Bill of
Quantity.

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FIDIC Standard Form of Contract
• FIDIC means is International Des Ingenieurs Conseils or International Federation
of Consulting Engineering.
• Normally, this form used to maintenance work.
• FIDIC basically used for TNB.

STANDARD FORM ADVANTEGES DISADVANTEGES

PWM 203(Rev.10/83) • Various specifications • Only for each
can found. construction like public
• Various projects to project.
construct. • Follow to the standard of
• Clear to announce of form without changes.
each part job.
PAM • Can identify the design • Poor separate of
of each project. construction project only
designer.
IEM • Can identify are load, • Specification of job only
straight and stability of identifies the load;
structure like behaviors straight and etc of
structure such as beam, structure not cover all
column and since on. part in building.
• Only for public sector
CIDB • Own owner of each • Can’t to enter of public
project. project.
• Free opinions to • The decision may be
construct to the each changes according to
project. client needed.
FIDIC • Only for one develop • Not length the scope of
such as TBN. each project only for
• Used to maintenance certain pert.

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 work

CHARACTERISTICS OF STANDARD FORM OF CONTRACT

Generally, standard forms of contracts possess the following characteristic;

1) The provisions are equitable between the parties.
2) Practical to apply or enforce.
3) Simple and straightforward to use.
4) Free from ambiguity and sectarian bias.

MAIN PROVISIONS IN STANDARD FORM OF CONTRACT

Broadly, the following are the main provisions normally found in a typical standard form
of contract;
1) Articles of Agreement
2) Definition and interpretation
3) Duties of the S.O
4) S.O’s rights to take action
5) Scope of contract
6) S.O instructions
7) Notices
8) Contract document
9) Material and workmanship
10) Statutory obligations
11) Rights and royalties
12) Setting out

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13) Employment of workmen
14) Variation
15) Bill of quantity
16) Sub-letting and assignments
17) Nominated sub contractor and nominated suppliers
18) Prime cost and provision sump
19) Insurance
20) Payment
21) Final certification
22) Determination of contractor’s employment
23) Effect of war
24) Price fluctuation
25) Arbitration
26) Stamp duty
27) Language of the contract
28) Appendices
29) Supplementary

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CRITICAL ANALYSIS

1. In the construction project many form can used to the each

project according to the provision of each project. For example the form who can
used is PWM, PAM, IEM, CIDB, FIDIC where each of the form have their
advantages and disadvantages such as PWM which used to the public project only
PAM concentrate to designer and since on.

2. The other thing is are characteristic of standard form like

provisions are equitable, practical to apply or enforce, simple and straightforward to
use, free from ambiguity and sectarian bias which include in the standard of form of
contract.

3. The one thing is main provision form of contract where

many provision types must be consider like articles of agreement, definition and
interpretation, duties of the S.O and since on which including into provision form of
contract.

4. To use the standard form of contract to this project, I

suggest to the client used the P.W.M form because this form very appropriate base for
suitability used of this form for this project. Other one, because this form used
normally to the public sector. So, of course I fill suitability of this project very better.
And then the characteristic and main provision of this project allow to the standard
form of contract in local standard form.

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