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TENDER PROCEDURE

BY BACHAN SINGH JABATAN STRUKTUR & BAHAN FAKULTI KEJURUTERAAN AWAM

TENDER PROCEDURE
Tender Procedure from the clients viewpoint : There are 3 ways in which a contractor (builder) is selected to carry out work: 1. 2. 3. OPEN TENDERING SELECTIVE TENDERING NEGOTIATED TENDER

TENDER PROCEDURE (CONTD) OPEN TENDERING Advertisement is placed in newspaper to invite contractors to apply for tender documents. Any contractors may apply for the tender. Sometimes, a deposit, is required for the documentation. The deposit is refunded upon receipt of a bona fide tender.

TENDER PROCEDURE (CONTD) OPEN TENDERING


The method was disapproved of in the Banwell Report of 1964. Method still in use today Normally, the lowest bidder is selected to carry out the work.

TENDER PROCEDURE (CONTD) SELECTIVE TENDERING


The client compile a list of the preferred contractor for the project. The contractors are chosen based on the establish skill, reliability and proven competence for the type of work envisaged. The Finance Ministry keep a general list to which the contractors can apply. Contractors are carefully vetted. Generally, not more than 6 contractors should be selected for any tender.

TENDER PROCEDURE (CONTD) NEGOTIATED TENDER


Only one contractor is approached. The skills of the contractor can at times be used at the design stage. Following the completion of the design, the contractor will price the bills of quantities and then enter into a negotiation with the client (Q.S)

TENDER PROCEDURE (CONTD) SINGLE STAGE SELECTIVE TENDERING


INVITATION : The preliminary enquiry consists a list of tenderers be drawn up and whether the contractor wishes to be considered for inclusion in the list. The enquiry should indicate that the contractors inability to accept this invitation will not prejudice a future invitation. Some contractors will submit a high cover price than to decline the invitation

TENDER PROCEDURE (CONTD) SINGLE STAGE SELECTIVE TENDERING


DECISION TO TENDER The contractor must make a decision whether to tender or not. Depends upon companys financial standing (cash flow), jobs in hand. Resources available, form of contract (sometimes the contractor is not familiar. Ascertain the risks involved. Extent of the competition probability of winning the tender

TENDER PROCEDURE (CONTD) SINGLE STAGE SELECTIVE TENDERING


THE TENDER 21 days to price the tender Involve sub-contractors, suppliers. The estimator generally price all items in the B.Q. at cost with no mark-up for overheads and profit. The management of the contractor will decide upon the overheads and profit percentage markup.

TENDER PROCEDURE (CONTD) SINGLE STAGE SELECTIVE TENDERING


RECEIPT OF TENDER Tenders open on specified date If arithmetic errors found in tender 2 alternatives 1. tenderer notified of the error and given the option of confirming the tender or withdrawing 2. tenderer notified of the error and given option of confirming tender or correcting error Sometimes, the correction of tender puts tender prices higher than the original.

TENDER PROCEDURE (CONTD)


SERIAL TENDERING
Contractor tenders for a series of similar contracts eg. School buildings. Learning curve anticipated. (IBS) Rationale is that the contractor might accept a small loss on the first school building. By the time the third school is build, the contractors workmen could be fully conversant with the system. Serial tendering also guarantees work for an extended period. Tenderer to price master bill. It contains quamtities for one school. But include 3 options for the construction of roofs. Foundation to include both pads and piles. The master bill effectively represents a tender for 5 schools to be built in 5 years.

TENDER PROCEDURE (CONTD) TWO STAGE SELECTIVE TENDERING


Negotiated tender to involve the contractor in the design phase of the project. 1. Suitable contractors are selected as in single stage selective tendering. Initial competitive stage. 2. The tender documents comprise of outline sketches of the scheme, a summary of the clients requirements and a notional B.Q. The notional B.Q. is a document containing an outline specification and provisional item descriptions and quantities.

TENDER PROCEDURE (CONTD) TWO STAGE SELECTIVE TENDERING (contd) 3. Tenderer given 5 weeks to prepare tender. An agreement will be made with the successful contractor regarding the cost of the contractors input before the commencement of the design stage.

TENDER PROCEDURE (CONTD) SELECTIVE TENDERING FOR DESIGN AND BUILD 6-12 CONTRACTORS SHORTLISTED. Given the need statement. Contractor submit the proposal & tender Evaluation of tender.