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    PP Unit 3 1

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    Ar. Kapil
    The document discusses tendering and contracting processes for construction projects. It defines a tender as an offer by contractors to execute a project for a predetermined price. There are different types of tenders such as open, closed, negotiated, and limited competitive tenders. The open tender process invites bids through public advertisement to encourage competition, while negotiated and limited competitive tenders involve inviting select contractors to bid. Key aspects of the tendering process include issuing tender notices, evaluating contractor qualifications, releasing tender documents, receiving bids, analyzing bids, and selecting a contractor. A construction contract formalizes the agreement between the client and contractor and specifies the scope, schedule, and payment terms of the project.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    PP Unit 3 1

    Uploaded by

    Ar. Kapil
    156 views6 pages
    The document discusses tendering and contracting processes for construction projects. It defines a tender as an offer by contractors to execute a project for a predetermined price. There are different types of tenders such as open, closed, negotiated, and limited competitive tenders. The open tender process invites bids through public advertisement to encourage competition, while negotiated and limited competitive tenders involve inviting select contractors to bid. Key aspects of the tendering process include issuing tender notices, evaluating contractor qualifications, releasing tender documents, receiving bids, analyzing bids, and selecting a contractor. A construction contract formalizes the agreement between the client and contractor and specifies the scope, schedule, and payment terms of the project.

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    PP-Unit-3-1

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    PP-Unit-3-1

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    The document discusses tendering and contracting processes for construction projects. It defines a tender as an offer by contractors to execute a project for a predetermined price. There are different types of tenders such as open, closed, negotiated, and limited competitive tenders. The open tender process invites bids through public advertisement to encourage competition, while negotiated and limited competitive tenders involve inviting select contractors to bid. Key aspects of the tendering process include issuing tender notices, evaluating contractor qualifications, releasing tender documents, receiving bids, analyzing bids, and selecting a contractor. A construction contract formalizes the agreement between the client and contractor and specifies the scope, schedule, and payment terms of the project.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    156 views6 pages

    PP Unit 3 1

    Uploaded by

    Ar. Kapil
    The document discusses tendering and contracting processes for construction projects. It defines a tender as an offer by contractors to execute a project for a predetermined price. There are different types of tenders such as open, closed, negotiated, and limited competitive tenders. The open tender process invites bids through public advertisement to encourage competition, while negotiated and limited competitive tenders involve inviting select contractors to bid. Key aspects of the tendering process include issuing tender notices, evaluating contractor qualifications, releasing tender documents, receiving bids, analyzing bids, and selecting a contractor. A construction contract formalizes the agreement between the client and contractor and specifies the scope, schedule, and payment terms of the project.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    AR6703 Professional Practice and Ethics

    UNIT – 3 LECTURE BY A.SIVARAMAN

    TENDER & CONTRACT

    CONTENT:
    Part 1: Tender
     Definition
     Types of Tenders
     Open and closed tenders
     Conditions of tender
    o Tender Notice
     Tender documents
     Concept of EMD
     Submission of tender
     Tender scrutiny
     Tender analysis
    o Recommendations
    o Work order
     E-tendering (advantages, procedure, conditions).

    Part 2: Contract
     Definition
    o Contract agreement
    o its necessity – Contents (Articles of Agreement,Terms and Conditions,
    Bills of Quantities and specifications, Appendix)
     Certification of Contractors Bills at various stages.

    Part 3: New trends in project formulation and different types of execution


    (BOT, DBOT, BOLT, BOO, etc.)
     Execution of projects
     The process (Expression of interest, Request for Proposal, Mode of Evaluation of
    Bids, Award of work)

    .
    1 PROFESSIONAL PRACTICE AND ETHICS
    LECTURE BY ASSO.PROF.A.SIVARAMAN M.ARCH (GENERAL ARCHITECTURE).,MCA.,AIIA
    Part 1 TENDER

    • Calling for Tenders


    • Tender Documents
    • Open and Closed Tenders
    • Item Rate, Lump sum, Labour and Demolition
    Tender
    • Conditions of Tender
    • Submission of Tender
    • Scrutiny and Recommendations
    Definition
    • Tenders are offers made by contractors to execute a project on some pre-determined data
    and conditions, for a certain amount.
    • Usually written, may be oral or partly written and partly oral
    • The work may be: construction work as defined by drawings and specification, supply of
    materials/labor of a specified kind, transport of materials, demolition of a building and
    disposing off the debris etc.
    Procedures
    • Inviting notices
    • Opening of tenders
    • Tabulation of tenders
    • Acceptance of tenders
    • Negotiations
    • Preparation of schedule and documents
    Invitation to Tender
    • When all preliminaries for a project are completed and the owner has decided to proceed
    with the work, tenders are invited in the following ways:
    • Negotiated tender
    • Limited competition or selective tendering
    • Open competition including international competitive tendering
    Negotiated Tender
    • The price is negotiated with a single contractor. Since there is no competition to quote the
    price may be higher.
    • Negotiated tenders are okay and to the owner’s advantage under the following
    circumstances:
    • The firm chosen is one in which the owner and architect have confidence and whose
    integrity an reliability is well established by either of the two or both
    • The work to be carried out is within the special scope and experience of the firm
    • In certain limited type of work, there may be only one firm capable of undertaking the job,
    and negotiating with it may be the only reasonable method of obtaining a tender

    .
    2 PROFESSIONAL PRACTICE AND ETHICS
    LECTURE BY ASSO.PROF.A.SIVARAMAN M.ARCH (GENERAL ARCHITECTURE).,MCA.,AIIA
    Negotiated Tender - Procedure
    • Architect on behalf of the owner invites the firm to tender with brief description of the
    scope of work, approximate dates of commencement and completion of work, any special
    requirement and the proposed contracting procedure
    • Contractor prepares a priced BOQ
    • Rates examined by architect and owner, compared with known market rates based on
    similar executed or ongoing projects
    Limited Competitive Tender
    • Usually adopted for private jobs
    • Owner invites tenders from a few known contractors with whom he has worked before and
    who have a history of giving excellent results
    • This procedure is recommended for monumental structures, industrial construction and
    work requiring specialised knowledge and equipment

    Open Competitive Tender


    • Tenders invited by public advertisement
    • Rules require government and other public contracts to be advertised publicly
    • Any contractor willing, with requisite finance and equipment to complete the work
    satisfactorily can submit tender

    Open Tender

    Advantages
    • Safeguards contractors from being denied tendering opportunities for unjust reasons
    • Protects the government or local authorities concerned from possible insinuations and
    favouritism
    • Provides an opportunity for having the work done at a minimum cost to the public, by
    securing the benefit of keen bidding competition

    Disadvantage and Remedy


    • The firm submitting the lowest tender may be unsuitable for carrying out the work,
    resulting in waste of time and effort
    • Prequalification helps eliminate unsuitable contractors
    • Intending tenderers can be invited to apply for selection and registration as qualified
    tenderer
    • Architect reviews the qualifications of the tenderers on the basis of information provided by
    them in a prescribed format supplied
    Prescribed Format
    • Past experience
    • Major works on hand
    • Technical personnel engaged
    • Financial capacity
    • Equipments to be used
    .
    3 PROFESSIONAL PRACTICE AND ETHICS
    LECTURE BY ASSO.PROF.A.SIVARAMAN M.ARCH (GENERAL ARCHITECTURE).,MCA.,AIIA
    • Any other relevant information
    • Blank tender forms are issued only to those contractors who in the judgement of the
    architect has the requisite qualifications
    Advertisement for Tenders
    • To create interest among considerable number of potential bidders for competition
    • City, regional or national newspapers with large circulation and appropriate technical
    journals are the best medium
    • Small projects confined to local newspapers
    • Advertisement should appear well in advance, sufficient number of times in regular interval
    under a heading ‘Tender Notice’
    • From 2-3 weeks to 4-6 months depending upon scale of project
    Pre-Tender Conference
    • For clarifications near the site of the project
    • The intended tenderers attend at their own cost
    • All clarifications, special aspects of the project and tendering process addressed in detail
    • Site visit done to understand and get a feel of site and likely obstacles if any in project in
    future
    Tender Notice
    Short and Concise with information on:
    • 1. Mode of submitting tender: in sealed cover to maintain secrecy
    • 2. Standard form to be filled: ensures uniformity, ease of scrutiny and comparison
    • 3. Name and details of the inviting authority
    • 4. Nature of works and its location
    • 5. Estimated cost of work
    • 6. Time limit
    • 7. Availability of data and forms: Where, from whom, at what cost, and up to which date
    blank tender forms and specifications may be obtained, whether a refund will be made
    upon return in a satisfactory condition
    • 8. Earnest money required along with the tender: Security in the form of earnest money is
    demanded along with the completed bid to make reasonably certain that the bidder is
    willing to sign the contract if the work is assigned to him

    Earnest Money (Refundable):


    • The purpose for which security is required
    • The character of the form of security: cash, bank guarantee, cheque or treasury receipt or
    challan with the name of the payee
    • The amount of security: generally about 1% of the estimated cost of the work- this covers
    expenses incurred to re-do the whole process, in case the successful bidder fails to enter
    into contract in time
    • Return of the deposits: the number of days within which the amount will be refunded to
    unsuccessful bidders

    .
    4 PROFESSIONAL PRACTICE AND ETHICS
    LECTURE BY ASSO.PROF.A.SIVARAMAN M.ARCH (GENERAL ARCHITECTURE).,MCA.,AIIA
    9. Security deposit: The amount which the successful bidder will have to deposit as security
    for satisfactory performance, and the procedure for recovering the security deposit should
    be stated in advertisement
    10. Information regarding plans, blueprints etc.: The advertisement should state explicitly
    where and when plans and detailed drawings can be examined. They are often not supplied
    to bidders as this would involve considerable expense and any secret or confidential aspects
    may be revealed
    11. Information regarding permission to import equipment not available in India: Such
    information and the restriction on disposal of the equipment after completion of the work,
    if any, should be made available whenever relevant
    12. Whether successful foreign contractors would be permitted: This would be in order to
    engage any approved local subcontractor or to enter into a joint venture with Indian
    contractors or firms. Information in this regard should be stated in the case of international
    competitive bidding
    13. The last date, the place, and the time of receipt of sealed bids: All these facts have to
    be mentioned in the text
    14. The date, time, place and procedure of opening of the tender: All these facts should be
    mentioned
    15. Reservation of right to reject bids: The owner should make it clear that the right to
    accept a tender which is higher than the lowest one, or to reject any or all tenders without
    assigning any reason is reserved
    16. Award of Contract: The time required for consideration and scrutiny of tenders, after
    which the contract is likely to be awarded, should be stated. Normally this period should be
    90 days or less from the date of the opening of tenders
    17. Whom to contact for further information: This should be clearly stated
    Contents
    • Tender notice
    • Instructions to tenderers
    • Standard form of contractor’s offer
    • Articles of agreement
    • Conditions of contract
    • Specifications
    • Schedule/Bill of quantities

    Procedures
    • After tenders are received by the stipulated date, Project Manager checks each and every
    tender carefully to find out if there are any omissions, mistakes in calculations, overwriting,
    etc.
    • As part of his scrutiny he prepares a tabulated analysis of all the tenders

    .
    5 PROFESSIONAL PRACTICE AND ETHICS
    LECTURE BY ASSO.PROF.A.SIVARAMAN M.ARCH (GENERAL ARCHITECTURE).,MCA.,AIIA
    Tabulation
    Items Contractor A Contractor B Contractor C Remarks
    Excavation
    PCC
    Rubble
    Plinth beam
    Backfilling
    PCC plinth
    Masonry
    Slab-beams
    Windows
    Doors
    TOTAL
    Report
    • A report is prepared based on the tender analysis and scrutiny
    • On the basis of the report architect makes recommendation to client about acceptance of a
    particular tender
    Types of Tender:
    • Lump sum tender – when the project is small and the drawings can be fairly exhaustive
    • Item-rate tenders – normal practice among architects
    • Percentage tenders – based on prescribed Schedule of Rates of PWD/Govt. agencies

    .
    6 PROFESSIONAL PRACTICE AND ETHICS
    LECTURE BY ASSO.PROF.A.SIVARAMAN M.ARCH (GENERAL ARCHITECTURE).,MCA.,AIIA

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