AMT 20604 Construction Value

Estimation and Procurement

W3 ( Tendering Principle 1 )

Sr. Dr. Norsyakilah Romeli

(Professional QS, MRISM, BQSM)
PhD in Built Environment (UiTM)
Msc in Integrated Construction Project Management (UiTM)
Degree in Quantity Survey (UiTM)
Diploma in Quantity Survey (UiTM)
CONTENTS

• Tender Invitation
• Site Visit
• Pre- Tender Meeting
• Documentation for Tender
• Compulsory Documents
 Tender invitation
 The tender invitation advertised to the
newspaper.
 E tendering, if necessary for complex
project that require many work package
 Scope of work has been determine
Key principles to tendering
procedure
 Clear procedure which are fair and transparent
to all parties
 Tender list which are short and possible
 Tender list which are complied following
systematic qualifications
 Conditions for all tenderers which are the same
 Respect confidentiality
 Sufficient time and information to allow the
preparation of tender
 The use of unamend standard form
 A commitment to team work from all parties
Client consultant must :
 Ensure all of candidate been treated equally,
so that the confidentiality is maintained
 Make selection criteria and other
requirement clear in advance
 Offer initial briefings
 Ensure the invitations to tender make clear
what is to be supplied and what risk are to
covered in the price
 Allow sufficient time for administering the
process.
Cost of Tendering
 The cost of preparing the competitive
tender is borne by the tenderers
themselves although the expenses, time
and trouble of preparing bid are
substantial.
 But if the contractor perform additional
services at the client’s request, which fell
outside that which normally perform
gratuitously when invited to tender, he
may entitled to reasonable payment
Invitation to tender

 Details of the project

 Registrations requirement
 Details for the procurement
 Details of site visit
 Detail of tender documentation fee
 Detail of tender table documents
 Detail of submission of tender
 Miscellaneous details
Project Nature

 Function : the physical and technical

requirement of the project
 Aesthetics : the satisfaction of all human
and subjective aspect to the project eg shape,
form and finishing
 Cost : the total financial outlay of the project
comprising the initial or development cost,
operating cost, or maintenance cost
 Time : the duration of the project from
inception to completion
Tender Notice
The tender notice set out matters
regarding :

Time and place for tender submission

The form of tender – must be included
Tendering period and closing
Tender Validity Period
Necessary fees and deposits
Requirement to be fulfilled before
E- perolehan
E – tendering communication nodes
Benefits of E tendering
 Allow electronic submission and receipt
 Promotes green procurement
 Allow reachable database and references for
drawings, specification
 Control, non – bias audit system
 Bidders can submit multiple documents
 Allows question and answer to be share
 Accessible online
 Can link in between Field View, JD Edwards
System
SITE VISIT
Site Visit Consideration
 Site access
 Soil Characteristic
 Site Climate Condition
 Location of the Work
 Union Influence
 Distance to IBS/ Material Supply
Purpose of Site Visit
 To understand the external parameters, to
value the preliminaries items
 Mostly cost incurred to run the project with
the existing areas of site.
 Access to material, manpower, and
machineries
 At some circumstances, client will conduct
the interview with the potential bidder to
evaluate their competencies, best to send
experienced people on ground for site visit.
PRE TENDER MEETING
Tender Task Arrangement
 Understand the needs of projects and
instruction
 To understand the Bill of Quantity’s needs
 Separate team to cater technical &
completeness of tender, financial
competence, manpower, machineries,
previous track records
 Inking process
 To estimated at the reasonable rate,
workable rate to cover company overhead.
DOCUMENTATION FOR
TENDER
Documentation for Tender

Requirement :
 Define nature and extent of work
 Provision to contract form basis,
 Reflect the employers procurement
policies
 Minimize ambiguities and discrepancies
 Design and work specification to latest
standard practice
Preparation of tender documents

 Quantity take off from the drawing.

Preliminary Tender Estimate done as
according to the client’s agreed price.
 Final preparation of the tender document.
Form of contract, specification, drawing,
bills of quantities, preliminaries,
preamble, form of tender, instruction to
the tenderer, performance bond, advanced
payment, tenderer information and details
Factor Influence the Tender
Preparation Process
 Revised scope and drawings
 Types of Procurement Path
 Tools to prepare
 Types of Projects
 Delay of submitting documents
 Unclear specification
 Legal Language Barrier
 Accuracy of tender documents
 Number of tender preparation team
COMPULSORY DOCUMENT
Submission and Receipt of Tender

 Clear and complete in any sense

 Comply with The Tender Response
Requirement or Instruction to The
Tenderer documents issued by Employer
 Contain no arithmetical mistakes
 Submitted in accordance with the
stipulated condition
 Submit back all of the documents for
purpose of tender
Compulsory Documents

 Form of Tender (signed by Director/ Board of Director/

HR Director : whom exceeded the capacity to form a
contract)
 Bill of Quantity’s Accuracy, below Preliminary Tender
Estimates
 To review Builder’s Works value ( excluding
Provisional Sum and Prime Cost Sum)
Other requirement by client (eg. E-sekat clear for MBSA)
 Company profile (upgraded with manpower and
machinery details)
 Compulsory Documents
 Three month back Financial Statement (minimum capital 3%
of builder’s work), can attach any liquid asset other bank
statements as supporting documents
 Outstanding job (could be positive or negative impacts to
tender evaluation)
 Updated Balance sheet with original stamp from the banks
 KWSP statement; if worker’s names mismatch with KWSP
statement will effected the technical capacity calculation
 Can attached Awards (QLASSIC awards, Anugerah Penyiapan
Kerja etc)
 Semakan Project Sakit on KKR database
 CIDB contractor’s registration