_Topic_2_Tender_Preparation_The_Tendering_Process

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CE 403 PROFESSIONAL PRACTICES & COMMUNICATION

TENDER PREPARATION & THE TENDERING PROCESS 2-1

Contents of the Tender


Tender prepared by the Tenderer shall comprise the following:
 Tender Submission Letter
 Tender Information
 The Priced Bill of Quantities
 Tender Security
 Valid Trade License
 The original and copy of the Tender signed by the person
duly authorized to sign on behalf of the Tenderer
 An Affidavit confirming that the tenderer is not insolvent
 A Certificate that the tenderer is a Tax Payer having valid
Tax Identification Number (TIN) and VAT Registration
Number
 Documentary Evidence establishing Tenderer’s
qualification
M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018
CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-2

Forfeiture of Tender Security


Tender security may be forfeited if a Tenderer :
 Withdraws its Tender after opening of Tenders but within
the validity of the Tender
 Refuses to accept a Notification of Award
 Fails to furnish Performance Security
 Refuses to sign the Contract
 Does not accept the correction of the Tender Price
following the correction of Arithmetic errors

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018


CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-3

Evaluation of Tenders
The Tender Evaluation Committee (TEC) may consider a Tender as
responsive in the Evaluation, only if it is submitted in compliance
with the mandatory requirements set out in the Tender Document.
The evaluation process should begin immediately after opening of
the tenders and should broadly include four steps:
 Preliminary Examination
 Technical Examination and Responsiveness
 Financial Evaluation and Price Comparison
 Post Qualification of the lowest evaluated Responsive
Tender

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018


CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-4

Correction of Arithmetical Errors


The TEC shall correct any arithmetic errors that are discovered
during the examination of Tenders, and shall promptly notify the
concerned Tenderer of any such rule. Any Tenderer that does not
accept the correction of arithmetic errors as determined by the TEC
shall be considered as responsive.

Notification of Award
Prior to the expiry of the Tender Validity Period and within seven
working days of receipt of the approval of the award by the
Approving Authority, the procuring entity shall issue the Notification
of Award (NOA) to the successful Tenderer.

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018


CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-5

Performance Security
The Performance Security shall be provided by the successful
Tenderer in the amount specified in the TDS. Within seven days from
the date of acceptance of the NOA but not later than the date
specified therein, the successful tenderer shall furnish the
Performance Security. The Performance Security shall be in the form
of a Bank Draft, pay order or an irrevocable Bank Guarantee in the
format issued by any scheduled bank of Bangladesh acceptable to
the Procuring Entity.

Contract Signing
Within fourteen working days of issuance of NOA, the successful
Tenderer and the Procuring Entity shall sign the contract provided
that the Performance Security submitted by the Tenderer is found to
be genuine.
M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018
CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-6

Flow Chart of the Tendering Process


PRETENDER TENDER
MEEETING OPENING

INTERESTED
TENDER BIDDER BUY TENDER TENDER
NOTICE TENDER SUBMISSION EVALUATION
DOCUMENT BY TEC
S
OUTCOME OF TENDER EVALUATION

RESPONSIVE SUBSTANTIALLY NON REJECTED


TENDER RESPONSIVE RESPONSIVE TENDER
TENDER TENDER
M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018
CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-7

Flow Chart of the Tendering Process (Contd.)


Obtain Clarification and Mark
Responsive or Nonresponsive
NONE FOUND
RESPONSIVE TRY NEXT LOWEST

LOWEST
BIDDER NOT OK

CANCEL THE OK POST


PROCESS & QUALIFICATION
RE-TENDER

APPROVAL
FROM HOPE
M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018
CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-8

Flow Chart of the Tendering Process (Contd.)

INVITED TO CONTRACT
ISSUE OF NOA

CONTRACT SIGNING

CONTRACTOR

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018


CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-9

Criteria for Preliminary Tender Evaluation


During the Preliminary Examination the Tenders TEC should make
sure all Responsive Tenders have the following:
 Minimum General Experience
 Minimum Similar-Contract-Type Experience
 Minimum Liquid Asset
 VAT and IT related certificates
 Valid Trade License
 Price Schedule
 Signature on all Pages
 Completed Tender Submission sheet
 Tender Security

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018


CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-10

Criteria for Detailed Tender Evaluation


During the Detailed Examination of Tenders the TEC should perform
the following tasks diligently:
 Check the qualification and experience of key personnel
 Check the adequacy of plants and equipments
 Check for general experience
 Check for Similar-Contract-Type experience
 Check for Bank Certificate for liquid assets
 Check for Average Annual Turnover from Audit Report
 Check for Arithmetic Correction of prices quoted
 Check for credit facilities available

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018


CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-11

Role of the Tender Evaluation Committee (TEC)


• Examine and evaluate the tenders received as per PPR 2008
• Check that all required documents are submitted
• Check that each tender meets the requirements
of qualification criteria
• Check that each tender meets the specification
• Check arithmetic accuracy of BOQ
• Ask for clarification, if needed
• Prepare a list of Responsive, Non-Responsive and
Rejected Tenders
• Recommend for award or retender as the case may be.

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018


CE 403 PROFESSIONAL PRACTICES & COMMUNICATION
TENDER PREPARATION & THE TENDERING PROCESS 2-12

Documents Forming the Contract


The documents forming the contract shall be interpreted in the
following order of priority:
 The Signed Contract Agreement
 The Notification of Award
 The Completed Tender and Appendices to the Tender
 The Particular Conditions of Contract
 The Technical Specifications
 The General Specifications
 The Drawings
 The Priced Bill of Quantities and the Schedules
 Any other Documents listed in the PCC forming part of the
contract

M. A. SAQIF DEPT. OF CIVIL ENGINEERING SPRING 2018

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