Professional Documents
Culture Documents
Lect 5 - Tendering
Lect 5 - Tendering
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identifying project
▪ Stage 1: inception & feasibility –
objectives / set up project brief
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TENDERING PROCESS
Start after the design complete and project budget
approved.
TENDERING
The processPROCESS
that is used to obtain offers
leading to a contract between:
Start after the design complete and project budget
approved.
client contractor
The process that is used to obtain offers
leading to a contract between:
client consultant
main contractor sub-contractor
client contractor
client consultant
main contractor sub-contractor
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DIFFERENCE BETWEEN
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A CONTRACT VS A TENDER
▪A
The term ‘Tender'
TENDER formally means
means an an toinvitation
invitation trade underto trade
under the terms of offer.
the terms on offer. 'Contract' refers to any agreement
entered into between the buyer and another party.
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▪ THE THE
▪ THE THE
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PRINCIPAL ACTIVITIES
1. Selection of the most preferable or
appropriate procurement route & contractual
PRINCIPAL ACTIVITIES
arrangement & tender strategies
2. Approval for tendering
Preparation
1.3. Selection of tender
of the documentation
most preferable or
4. appropriate
Invitation &procurement route
issuing tender & contractual
document
arrangement & tender strategies
5. Preparation and submission of tenders
2. Approval for tendering
3. Preparation of tender documentation 10
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Stage 6: Stage 7:
Stage 5: Stage 4:
TENDER AWARD
CONTRACT TENDER INVITATION &
EVALUATION SUBMISSION ISSUING THE
TENDER DOCUMENT 12
Stage 7:
AWARD
CONTRACT
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STAGE 1:
STAGE 1:
▪ Traditional
▪ Longer time – lead to critical work scheduling
▪ Less errors – more precise
▪ Fast-track
▪ Shorter time
▪ Consequences – may be lead to critical error, variation.
▪ Traditional
▪ Longer time – lead
1. Discussion andto criticalon
decision work
typescheduling
of contractual arrangement to be used.
▪ Less errors – more
2. Selection precise
of tender strategies :
▪ Fast-tracka) Open
b) Selective
▪ Shorter time
c) Negotiate
▪ Consequences – may be lead to critical error, variation.
3. Parties involved: CLIENT, CONSULTANT, PROJECT MANAGER
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1. Discussion and decision on type of contractual arrangement to be used.
2. Selection of tender strategies :
a) Open
b) Selective
c) Negotiate
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3. Parties involved: CLIENT, CONSULTANT, PROJECT MANAGER
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STAGE 2
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STAGE 3
▪ Letter of invitation
▪ Checklist for submission of tender/ Instruction to
Tenderer
A Typical Tender ▪ Articles of agreement
Document
▪ Conditions of contract
STAGE 3
- Table Of Contents
▪ Form of tender
▪ Tender specifications
▪ Bills of quantities
▪ Letter of invitation
▪ Tender drawings
▪ Checklist for submission of tender/ Instruction to
▪ Sample
Tenderer copy of letter of acceptance
A Typical Tender ▪ ▪Sample
Articlescopy of bang guarantee for performance
of agreement
Document bond
▪ Conditions of contract
- Table Of Contents ▪ Schedule of day work rates
▪ Form of tender
▪ Sample copy bank guarantee for advance
Tender specifications
▪payment
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▪ Bills of quantities
▪ Tender drawings
▪ Sample copy of letter of acceptance
▪ Sample copy of bang guarantee for performance
bond
▪ Schedule of day work rates
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▪ Sample copy bank guarantee for advance
payment 15
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CONTRACT BASED ON
TENDER & SPECS
Compilation of:
CONTRACT BASED ON QUANTITIES ◼ Letter of invitation to
▪ Compilation of: tenderers
▪ Letter of invitation to ◼ Articles of agreement /
tenderers CONTRACT BASED ON
conditions of contract
▪ Articles of agreement / TENDER & SPECS
◼ Form of tender
conditions of contract ◼ Form of tenderer’s details.
▪ Form of tender
i.e: contractor’s registration,
Compilation organization
of:
CONTRACT BASED▪ Form QUANTITIES
ONof tenderer’s details. ◼ Letter of invitation
record
background, track
(past to
and present
i.e:
▪ Compilation of: contractor’s registration, tenderersprojects)
organization background, track ◼ Articles of agreement
◼ Letter /
of acceptance
▪ Letter ofrecord
invitation
(pasttoand present
tenderersprojects) conditions
◼ Bank of and
contract
insurance guarantee
▪ Articles▪ of agreement / forms
◼ Form of tender (performance bond)
Letter of acceptance
conditions of contract ◼ Form ◼ofBank and insurance
tenderer’s guarantee
details.
▪ Bank and insurance guarantee forms (advance
i.e: contractor’s payments)
registration,
▪ Form of tender
forms (performance bond) organization background, track
◼ Specifications
▪ Form of▪ tenderer’s details. guarantee
Bank and insurance record◼ (past
Summaryand of
present
tender
i.e: contractor’s registration,
forms (advance payments) projects)
organization background, track ◼ Schedule of rates
▪ Specifications ◼ Letter of acceptance
record (past and present ◼ Relevant drawings
projects)▪ Bills of quantities ◼ Bank and insurance guarantee
Relevant drawings forms (performance bond) 17
▪ Letter of acceptance
▪
◼ Bank and insurance guarantee
▪ Bank and insurance guarantee forms (advance payments)
forms (performance bond) ◼ Specifications
▪ Bank and insurance guarantee ◼ Summary of tender
forms (advance payments)
◼ Schedule of rates
▪ Specifications
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▪ Bills of quantities
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▪ Relevant drawings
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STAGE 4
STAGE 4
▪ Based on selection of tendering methods
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Details of
Details
documents
recorded
issued (tender
during the
Whether all number,
issuance of Details of
conditions DATE AND description)
tender tenderer /
have beenTIME FOR documents
SUBMITTING Person
Identity of issuer
satisfied (site
TENDER collecting it
visit, fees)
Details
recorded
Date and time during the Tenderers
Whether all
for issuance of issuance of registration Details of
conditions tender
have been
tender details (check tenderer /
documents Person
satisfied (site document validity)
collecting it
visit, fees)
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TENDERING PERIOD
TENDERING PERIOD
and allocated.
TENDERING PERIOD
Clarification process must be formalized, standardize
and notified to all tenderers by issuing addendum.
Queries, discrepancy, and ambiguity need clarification
from the employer before preparation of their bid.
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SITE VISIT
Necessary before tender submission
to obtain a more competitive and
realistic bid involving proper
SITE VISIT
assessment of risk associated with
site and its conditions.
Necessary before tender submission
to obtain a more competitive and
Tenderers will be briefed on a few
realistic
mattersbid involving proper
assessment of risk associated with
1. Nature of work and overview of
site and its conditions.
project
2. Significant
Tenderers will be matter
briefedon
onsite
a few
matters
obstructions (trees,
buildings) ▪ Any particular
Surface local
and ground
▪ Site access (presence of
authority
conditionsregulations
Site boundary condition
▪ squatters)
▪▪ Availability
Availability of
of resources
▪ Presence of utilities
▪ Possible restrictions or
accommodation for
Site topography
▪ obstructions ▪ Weather condition
(trees, laborer's
▪ Any particular local
buildings)
authority regulations
▪ Site boundary condition
▪ Availability of
▪ Presence of utilities
accommodation for 18
▪ Site topography
laborer's
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3. Presence of uncertainty
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