Bid Evaluation (Civil Works)

Annual Refresher Training, 24 – 25 June 2021

Suharyani, Senior Procurement Officer ADB IRM

 SBD for Large and Small Contracts

https://www.adb.org/business/how-to/where-can-I-find-adbs-
standard-bidding-documents
https://www.adb.org/documents/procurement-large-works-
guide
https://www.adb.org/documents/procurement-small-works-
guide
https://www.adb.org/documents/prequalification-bidders-
guide
https://www.adb.org/documents/guide-bid-evaluation-0
 PURPOSE OF BID EVALUATION

The main purpose of bid evaluation is to determine the lowest evaluated

substantially responsive bid among the bids submitted. The lowest evaluated
substantially responsive bid may or may not necessarily be the lowest priced bid.
For contract requiring complex solution with combination of goods, works,
services, value for money may not be achieved by using lowest evaluated bid,
rather striking a balance between cost and quality may be necessary, bid
evaluation for this contract may require different method (e.g using merit point
or scoring system) which is not covered in this presentation.
 SECTION 3
EVALUATION AND QUALIFICATION CRITERIA
EVALUATION:
(i) Adequacy of Technical Proposal
(ii) Completion Time
(iii) Technical Alternative
(iv) Specialist Subcontractors
(v) Quantifiable Nonconformities, Errors, and Omissions
(vi) Domestic Preference
(vii) Multiple Contracts
QUALIFICATION:
(i) Eligibility
(ii) Historical contract non-performance
(iii) Financial Situation
(iv) Construction Experience
(v) Other Criteria
 PRINCIPLES OF BID EVALUATION
1. PROMPT PUBLIC BID OPENING
2. CONFIDENTIALITY OF PROCEDURES
3. PRIORITY OF DOCUMENTS ***
4. CLARIFICATION AND MODIFICATION OF BIDS
5. REJECTION OF BIDS ***
6. CURRENCY OF BID EVALUATION
7. QUALIFICATIONS AND TRACK RECORD OF THE BIDDER ***
8. EXTENSION OF BID VALIDITY PERIOD
9. REJECTION OF ALL BIDS ***
 SEQUENCE OF BID EVALUATION
A. Opening and Preliminary Examination of Bids
i. Basic Data
ii. Record of Bid Opening
iii. Preliminary examination of the bids (Evaluation of Completeness of Bids)
No. Description
1 Form of Bid and Bill of Quantities
2 Bid Security
3 Joint Venture Agreement, if required

4 Propriety of signature and power of attorney

5 Completeness of bid documents
6 Documents establishing the eligibility
7 Documents to assess the bidders’ qualification
B. Determination of substantial responsiveness of bids
i. Compliance with the Commercial Terms and Conditions
• Signature by Authorized person
• Eligibility
• Bid security or bid securing declaration
• Bid validity
• Completion time
• Conditional bid
• ETC
ii. Substantial responsiveness to technical requirement (adequacy of technical
proposal):
• Technical deviation
• Sequence of construction activities
• Construction method
• Construction equipment
• Site organization and key field personnel
• ETC
iii. Evaluation of qualification
iv. Preparation of table substantial responsiveness of bids
C. Detailed evaluation of price bids
i. Preparation of table of bid prices
• Arithmetic correction
• Discount
• Currency conversion
• Adjustments

ii. Determination of number of bids for detailed evaluation

iii. Analysis of prices – see next slide
C. Detailed evaluation of price bids
iii. Detailed evaluation of price bids
• Analysis of BOQ and unit rates: is the BOQ complete? Is the bid price
reasonable or abnormally low? Are the unit rates balanced?
• Unbalanced bids: higher unit prices for earlier works and higher unit
prices for underestimated works items
• Provisional sum (for contingency, dayworks, others)
What We Have to do in Dealing With Abnormally Low Bids,
Unbalanced-Price, and “Front-Loaded Bids

Tools:
1. Table of comparison of rates between bidder, OE and other qualified bidders
2. Unit rate analysis of the bidder
3. Unit rate analysis of the OE
4. Unit rates of other qualified bidders
5. Rates of similar items from other similar recent contracts (if required)
6. Clarifications from the relevant bidder
7. Gantt Chart / Bar Chart prepared by the bidder.
 ABNORMALLY LOW BID
• ALB: The bid price appears so unreasonably low that it raises
concerns with the borrower in respect of the bidder’s ability
to perform the contract successfully.”
• This does not necessarily mean that they cannot or will not
perform according to expectations; thus, any procedure
under which bids above or below a predetermined
assessment of bid values are automatically disqualified is not
acceptable
 UNBALANCED BID PRICE
When a bidder detects that a line item or items may have been underestimated in
the Bill of Quantities and offers a high price on the item. The bidder offsets this
high unit price with low prices on other items, in anticipation of when the actual
quantities of the highly priced item are re-measured for payment.

• Intentionally unbalanced bid price is caused by a situation when bidder(s) believe

that the volume of a line of item or items in the BOQ is/are underestimated;
• The bidders will quote high unit prices of the relevant low volume items with an
expectation that the volume will be re-measured during MC0;
• To maintain the bid price remains at “reasonable or low prices” bidders quote
significantly lower prices on line items that the bidder believes will not change for
after contract award.
 FRONT-LOADED BID PRICES
Bidders submit bids with high prices or unit rates for the early stages of
a construction project, offset by low prices or unit rates for the later
stages of the project, to improve the contractor’s cash flow.
• The Procurement Committee shall review the Implementation Plan submitted by the bidder (in
the form of Gantt Charts or Bar Chart) to identify what are items to be implemented upfront.
Identify the line of items from the project start up until the mid of the completion time. Please
also identify the items are to be implemented from the mid up to the end of the contract
completion period.
• Please check whether substantially high unit rates are plotted at the “upfront” period, and lower
unit rates at the mid to end period of the contract duration.
• If the implementation plan prepared by the bidder show an indication of front-loaded bid price,
specific actions shall be taken.
 Illustration on Front-Loaded Bid Price
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
I Preparation Works
1 Mobilization and Demob
2 HSE, COVID 19 Mtg, and Environmental Mgt
3 Construction of field office

II Substructures
1 Excavation for Pile Caps
2 Boring Works diam. 80 cm
3 Concrete Works K350 for Bore Piles
4 Steel Bar for Bore Piles
5 Steel bar installation and casing
6 Concrete Works K350 for pile caps

III Upper Structure

1st to 7 rd Floor
1 Columns
Concrete works K250
Steel Bars
2 Beams
Concrete works K250
Steel Bars
3 Floor
Concrete works K250
Steel Bars

IV Architecture
V M/E
VI Landscape and Supporting Facilities

Notes:
Bidder's unit rates for concrete works and steel bars are substantially higher than
the OE and the other qualified bidders
Bidder's unit rates deviation less than 50% of rates of the OE and other qualified bidders
 STEPS TO BE TAKEN
• Step1: Identify
1. Compare the unit rates with the OE
2. Compare the unit rates with the unit rates with other qualified bidders
3. Compare with the unit rates with other similar contracts
4. Check the Line of Items in the Gantt Chart (FLB identification)

• Step 2: Seek Clarifications and Analyze

Analyze the Clarifications Provided by the Relevant Bidder

• Step 3: Decide
1. If the clarifications justified and validated, the bid shall be accepted;
2. If the clarifications are justified but with some notes, the bid shall be accepted with an
increased performance security (commonly up to 20%)
3. If the clarifications are not justified and inconsistence - Rejected. The rejection of any bids
determined to be ALBs requires ADB’s prior review
D. Recommendation for Contract Award
i. Ranking of the substantially responsive bidders
ii. Determination of lowest evaluated bid:
examination of unbalanced price, reasonableness
of lowest evaluated bid price
iii. Conclusion and recommendation
Thank you
If any question, please feel free to
drop an email to suharyani@adb.org