LECTURE 3

TOPIC 3:
TENDER DOCUMENT

By NOREHAN HAJI MOHD NOOR

 TENDER
The administration of a Tender Procurement
construction contract is complex.
A variety of factors including the HOW TENDER IS CARRIED
OUT
forms of contract used, parties - IT DEPENDS ON
involved, the system of WHOM THE OWNER
procurement used, constraints in OF PROJECTS.
terms of time, money and quality
would have impact on the outcome TWO CATEGORY OF
of the contract. OWNER
Therefore, effective and efficient - PRIVATE
administration of the contract is SECTOR & PUBLIC
not only necessary but also vital in SECTORS.
order to achieve success.
The process of tendering
MALAYSIA PRACTICE AND PROCEDURES
 Tender In Public Sector - MALAYSIA SCENARIO
THE RULES:
• IN MALAYSIA, PUBLIC SECTOR is the largest owner or main actor in
construction industry.

• It is contended that in the Public Sector project, the tendering

procedures must follow or in accordance with structured and
formalized process.

• The tendering procedures always governed by factors such as

sources of funding and type, nature and estimated cost of projects.

• In Malaysia practice, it is mandatory to let projects estimated to cost

more than RM500,000.00 each through OPEN TENDER.

• Only in specific cases, such as urgency of the work or for security

reasons or need for sophisticated design, so, the SELECTIVE
TENDERING or NEGOTIATED TENDER are allowed (must seek prior
approval from the Ministry of Finance).
 Tender in Public Sector - MALAYSIA SCENARIO
THE RULES…..
• the Government Fund - It is also mandatory for all
public tenders are funded by the Government’s own
source or financial.
• Tenders to be opened to Malaysian contractor firms only.
• The exception to this rule are (PENGECUALIAN):
1. Malaysian contractor are not capable or incompetent
(inexperienced etc.) in certain type of works.
2. For LARGE civil engineering works or specialist works which
estimated cost more than RM50 million each, the Joint-venture
(JV) agreement or MOU arrangement are allowed. Where the
selected foreign contractors are invited to JV with Malaysian
contractors through Pre-qualification exercise.
Tender in Public Sector - MALAYSIA SCENARIO
BUT...
• The Malaysian government’s policies on
open tender and Malaysian contractors
are not applicable for project funded
by the international funding agencies
such as World Bank, ADB, IMF,
IAD,etc.
• Tendering projects funded by these
bodies are subject to the conditions of
the loan agreement and procurement
procedures laid by them.
 TENDER
DOCUMENTS
 CONSULTANT S ROLES - IN TENDER DOCUMENT
PREPARATION

Architect &
DRAWINGS Engineer

COMPILATION
CONSULTANT
CONCERNED
SPECIFICATION
CONSULTANT
CONCERNED

PARTICULAR
CONDITION
OF CONTRACT QUANTITY
SURVEYOR

ESTIMATE
GENERAL
CONSULTANT
CONCERNED
CONDITION
OF CONTRACT
 apa yang perlu disediakan
Tender content must SO….
reflect or illustrating the The contract
contract system has
been selected in the is usually
project proposal based on
Isi kandungan tender either
mestilah mengambarkan
sistem kontrak yang telah
dipilih dalam cadangan
project tersebut
 TENDER DOCUMENT
PREPARATION
The agency or Consultant
1.Instruction to tenderer
that produce the tender,
2.Scope of Works
have to prepare the tender
3.Tender Form
documents which in
4.Tender Regulations
generally contain the
5.Condition of Contract
following matters:-
6.Bills of Quantities / Tender
summary
7.Schedule of Rate
8.Technical drawing / Plans
9.Contract Period
10.Proposal Technology Transfer
11.Performed / Track Record
12.Profile and Financial Status
 TENDER DOCUMENT PREPARATION

• In general, contractual procedures differ with the

forms of contract used.

• In public sector (Malaysia), the most often used forms of

contract are the JKR 203 (Pind. 10/83) / PWD203 (Rev.10/83)
for contracts based on DRAWINGS AND
SPECIFICATIONS, and
• JKR 203A (Pind. 10/83) / PWD 203A (Rev.10/83) for
contracts based on BILLS OF QUANTITIES.

• Other standard forms of contract in use in Malaysia are the PAM /

ISM, ICE and FIDIC. Most often used by PRIVATE SECTOR.
 More specific,
TENDER DOCUMENT the content of Tender Document as below:-
BASED ON
TENDER DOCUMENT BASED
BQ Contract ON Drawings and
1.Letter invitation to tender
2.Check list for submission of tender
Specifications
3.Articles of Agreement and condition
1.Letter invitation to tender
of Contract 2.Check list for submission of tender
4.Tender Form 3.Articles of Agreement and condition of
5.The tenderers profile / CV - Forms for Contract
details of tenderer’s registration as a 4.Tender Form
contractor and of organisation, 5.The tenderers profile / CV - Forms for
particulars of ten job completed and details of tenderer’s registration as a
jobs in hand contractor and of organisation, particulars
of ten job completed and jobs in hand
6.Letter of Acceptance
6.Letter of Acceptance
7.Bank and insurance guarantee forms 7.Bank and insurance guarantee forms for
for Performance Bond Performance Bond
8.Bank and insurance guarantee forms 8.Bank and insurance guarantee forms for
for Advance Payment Advance Payment
9.Specification 9.Specification
10.Bill of Quantities 10.Summary of Tender
11.Schedule of Rates
11.Drawing & Plans
12.Drawing & Plans
ASPECTS TO BE CONSIDERED DURING
PREPARE THE TENDER DOCUMENT