SCE4281

Contract Administration &

Measurement
Lecture 5
Tender Procedure and Contract Documents

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Lecture 5

The aim of this lecture is for

students to familiarise with
tender procedure and tender
documents. Then we will look at
contract documents which are
partly tender documents with
some other documents.

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Working Stages

• Client’s Brief
• Design
• Tendering
• Contract
• Construction
• Completion
• Maintenance Program

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Tendering

• The stage in which a suitable contractor is

selected and an acceptable offer obtained.
Tendering documents are normally prepared by
the quantity surveyors who go through the
tendering process until recommendation
regarding a contractor is made.

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Contract

• The contract stage in which the terms of a

contract are agreed and the contract arranged
and signed by both parties (the Client and the
Contractor).

• The Client will hand over the site to the

Contractor for his construction process.

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Method of Tendering
• Competitive Tendering
– Open Tendering
– Selective Tendering
• Negotiated Tendering
– Two-stage Tendering
• Stage I – Comparison of price basis and design
proposal
• Stage II – Project design, BQ and agreeing final
price

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Method of Tendering
• Serial Tendering
• Combination of selective and negotiated tendering

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Tendering Process
• The basic purpose of tendering is to select an
appropriate contractor to construct the
designed structures at a reasonable price.

• The contractors who are selected for tendering

are issued letter of invitation to tender and are
invited to tender for the proposed project.

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Tendering Process
• When tender documents are prepared, they
are sent to the tenderers with instruction on
tender or sometimes the tenderers are
required to collect the documents at the
specified office normally an
Architect’s/Engineer’s office.

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Tendering Process
• The priced tenders will have to be submitted
back to the Client at the specified time, date
and venue.

• Once all the tenders are returned to the Client,

the Client will open all tenders in front of
witness and record the returned prices.

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Tendering Process
• The priced tenders will have to be submitted
back to the Client at the specified time, date
and venue.

• Once all the tenders are returned to the Client,

the Client will open all tenders in front of
witness and record the returned prices.

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Documents Used in the Tender
Process
1. Notes to Tenderers
2. Conditions of Tender
– General Conditions of Tender (GCT) and Special
Conditions of Tender (SCT)
3. Form of Tender
4. Schedule of Proportions for calculating the Price
Fluctuation Factor
5. Conditions of Contract
– General Condition of Contract (GCC) and Special
Condition of Contract (SCC)

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Documents Used in the Tender
Process
6. Specifications
– General Specification (GS) and Particular Specification (PS)
7. Standard Method of Measurement (SMM)
8. Preambles
– General Preamble and Particular Preamble
9. Bills of Quantities
10.Drawings
11.Any relevant pre-contract correspondence with the
Contractor (e.g. tender addendum, circular letter to tenderers)

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Documents Used in the Tender
Process
• Notes to Tenderers – information relating to conditions of
tender for example where and when to return tender, what
other documents that need to be submitted.

• General Conditions of Tender – commonly used GCT clauses

to be included in the Conditions of Tender for works contracts
other than design and build contracts are given in ETWB TCW
No. 26/2004.

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Documents Used in the Tender
Process
• Special Conditions of Tender – any alterations to a GCT
shall be effected by a SCT. Commonly used SCT clauses to
be included in the Conditions of Tender for works
contracts other than design and build contracts are
provided in ETWB TCW No. 26/2004.

• Conditions of Contract - the Conditions of Contract that

will be used on signing of contract

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Documents Used in the Tender
Process
• Special Conditions of Contract – Any amendments,
additions, deletions and amplifications to the GCC should
be effected by the inclusion of SCC clauses. However, SCC
clauses should only be included when there is a genuine
need to alter or supplement the GCC. Matters concerning
materials or workmanship standards or detailed
arrangement for the execution of Works should not in
general be stipulated in the form of SCC.

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Documents Used in the Tender
Process
• Specification - Specification giving information regarding
the quality and workmanship for the works

• Bills of Quantities - to facilitate the contractor's pricing for

the works

• Drawings - Structural and Architectural Drawings for

tender showing the scope of works

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Return of Tenders
• The tenderers are usually given 4 to 6 weeks for pricing of
the tender. When the priced tenders are returned, the
following steps will normally be taken by the Client's
consultants:-

– Normally, select three lowest tenders for extensive

checking and examination.
– Check if there is any arithmetical errors in the tenders.
– Watch for abnormal pricing for example some prices
maybe too high or too low when compared to market
prices or if there is front-loading in pricing.

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Return of Tenders
– Check if there is any alternative proposals to the offer
whether technically or contractually
– Prepare a tender report to the Client listing out the
analysis on the prices and other relevant information.
– Once the Client's has selected a contractor, a letter of
intent will be issued to the Contractor and letters will
also be sent out to notify those unsuccessful tenderers
of the tender result.
– Prepare the contract documents for signing by the
Client and the Contractor. Once the contract is signed,
then the post-contract period shall commence and the
contractor shall begins his construction on site.

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Tender Evaluation
• Methods
– Formula Approach
• When the contract is not of unusual complexity and there are
no minimum qualifications required.
• Only take into account the tender price and the tenderer’s
past performance
– Marking Scheme
• When there is unusual complexity, but no prequalification of
tenderers and no minimum qualification are required.
• Tender price and technical score percentage split
• Two-envelope approach; the technical submission and the
tender price document

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Contract Document Composition
1. Articles of Agreement
2. Correspondence Forming Part of the Contract
3. Schedule of Proportions for calculating the Price Fluctuation Factor
4. Conditions of Contract
– General Condition of Contract (GCC); and
– Special Condition of Contract (SCC)
5. Specifications
– General Specification (GS); and
– Particular Specification (PS)
6. Standard Method of Measurement (SMM)
7. Preambles
– General Preamble;
– and Particular Preamble
8. Bills of Quantities
9. Drawings

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References
• Building Contract Procedures in Hong Kong
Martyn J. Hills, Longman 1995
• Building Quantities Explained (3rd Edition)
Ivor H. Seeley, Macmillan 1985
• Hong Kong In China: Real Estate In The Economy
Prof. Anthony Walker, et al, Dept. Of Surveying, The University of Hong Kong 1995
• The Construction Industry: Aspect of its Economics and Management
George Ofori, Singapore University Press 1990
• Measurement In Contract Control
Martin Barnes,1977, Thomas Telford Ltd
• Hong Kong Standard Method of Measurement of Building Works (3rd Edition) 1979
• General Specification of Material and Workmanship for Hong Kong Housing Authority,
Housing Department, Hong Kong
• Building Economics (3rd Edition)
Ivor Seeley, Macmillan, 1983

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End

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