TENDER

PROCEDURE

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 Letter of invitation to tenderers
 Checklist for submission of tender
 Form of tender
 Condition of contract
 Specification
 Bill of quantities
 Tender drawings
 Schedule of daywork rates

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 An invitation to contractor to submit offer
 Consists of:
- A list of document issued
- The tender document fee charge
- Detail on tender submission date
- Penalty for withdrawal or failure to proceed
in the event of acceptance
- Any other necessary instruction

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A list to help tenderer on their tender
submission documents
 As a guide to avoid possibility of rejected
due to incompleteness
 For example:
- Filling the specified forms or prices
- Schedule and appendices

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 One of the most important document in
tender submission
 The following information must be filled:
- Tender sum
- Period of completion
- Tender validity period
- Alternative offer (if any)
- Express additional agreement (if any)

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 The detail on agreement between both
parties
 For examples:
- If there is sectional completion required
- Rate of liquidated and ascertained damages
- Mode of payments, interim etc
- Minimum value of work to be executed prior
to payment
- Detail of insurances
- Advance payment, fluctuation price, on site
training (if any) 6
 To define the work required in the project
 Performance specification
 Detail material and workmanship required
 To assist contractor in pricing for work not
fully define in BQ and drawing
 Normal practice will use standard
specification by industry and made
modification where necessary

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A prime document in tender document
 Serve as basis of tender sum & contract sum
 Describe the material and workmanship of
the work
 A tender without BQ will require tenderer to
measure the work based on drawings and
specification
 BQ must be measure based on standard
SMM

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 Item under BQ:
- Preliminaries
- Preambles
- Measured works
- Summary of tender

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A list of items of work priced per unit
 Price used in conjunction of calculation price
for tendered works
 An important for tender without BQ
 As a guide for QS to do valuation of variation
works during construction
 Also used for ‘re-measurement’ type of
contract
 No standard form of schedule

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 Give an overview of nature and extent of the
work involved in the tender
 Provide clear view and detail of the item
under BQ
 Assist contractor to price accordingly
 The drawing must as detail and complete as
possible
 The actual content for tender drawing are
varies, most of it are:
- Site & location plan, floor plan, sections,
elevations, detailing etc 11
 An invitation to public / certain class of work /
particular section of the public
 Tender advertisement information:

• Logo and name of • Place and time of bid

employer document returned
• Title of work • A site visit date, time and
• Type of offer place of encounter
• Class invited contractor • The closing date for bids
• Payment of the offer
document
• Pick up the offer
document

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 Confirmation of allocation

Preparation of specification

Preparation of TENDER DOCUMENTS

Tender Advertisement / Tender Invitattion

Letter

SALES of tender documents

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 RECEIVING of tenders

OPENING the tender received

EVALUATION of tenders

AWARD the tender to

SUCCESSFUL CONTRACTOR

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 The usage of tender box:
- Tender box is used to place the tender
documents submitted by the contractor
- It is a lockbox marked with no. of project,
project name, date and time of tender opening
and the final submission date
- After closing date, tender box will be locked
and the documents will be kept in a room
- Tender documents will be opened after Board
of Tender Committee meetings

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 Offer is valid for acceptance of employer for
a reasonable period of time
 All necessary activities towards the detail in
tender document need to be finalized before
the period end
 Therefore, the tender process need to be
done in the stipulated time frame

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 However, this period can be extended by
applying writing request by employer to
the tenderer at least 2 weeks before expiry
– only agreeing tendered will be further
considered
 Extension of validity period NOT ALLOW
the tenderer to revise their initial bids

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ACCEPTANCE OF TENDER
 Stages of acceptance:
• Issue letter of intent
• Pre-contract award meeting / negotiation
• Confirmation on funding
• Preparation and issuance of letter of
acceptance
• Acknowledgement of tender acceptance by
awarded tenderer

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 Revocation of acceptance:
- By communication of notice by tenderer
- By the lapse of time prescribed in tender for
acceptance
- By the failure of employer to fulfill any
condition
- By the death or mental disorder of the
tenderer or employer
 The withdrawal by tenderer indirectly cause
financial loss to employer – EARNEST
MONEY as PENALTY at the time of tender
submission 21