MODULES QTS213

Module Heading
MODULE 1: Construction and Types of Construction Products
MODULE 2: Contract and Essentials of a Valid Construction Contract
MODULE 3: Contractual Arrangements in Construction Industry – Traditional Procurement
Systems
MODULE 4: Contractual Arrangements in Construction Industry – Alternative Procurement
Systems
MODULE 5: Tendering – Description, Objectives; Parties Involved and Their Roles;
MODULE 6: Tendering - Types with Their Advantages and Disadvantages
MODULE 7: Tender Documents – Description, Types and Nature
MODULE 8: Tendering Procedures - Selection of a Suitable Contractor
MODULE 9: Factors Influencing the Selection of Contractors
 MODULE ONE QTS213
CONSTRUCTION AND TYPES CONSTRUCTION PRODUCTS
CONSTRUCTION
Construction is the art and science of forming objects or systems. It is the act of building something
or how something is built. Also, construction and the ability to build things is one of the most
ancient of human skills. It usually covers the processes involved in assembling or delivering
buildings, infrastructure and industrial facilities, and associated facilities. Construction is the
activity of putting together different element using detailed design and plan to create a structure in
a location (i.e. it is location specific). It usually starts with or involves planning, financing and
design and it continues until it is built. Construction could be new works or works related to repairs,
additions or alterations, maintenance, demolitions, dismantling or decommissioning.

Construction industry (CI) is a construction sector of any economy that deals with erection of
buildings, public and industrial infrastructures that are needed for running, growth and survival of
a particular economy. It is described as an engine that drives the overall economy of a nation.
Construction industry accounts for more than 10% of global gross domestic products (GDP). In
developed countries, it contributes 6-9% of the GDP and may be lower in other economies. The
global construction is forecasted at $12.7 trillion in 2020. It employs 7% of the global workforce.
In Nigeria, construction industry employs people either directly as operatives on construction sites
or in an administrative, professional, technical or clerical capacity within construction firms. The
industry is also indirectly responsible for the employment in the manufacture, assembly and
distribution of materials and components and for independent professional and associated staffs
such as quantity surveyors, engineers (civil, structural, services and environmental) and architects
in both private practice and public sector departments.

TYPES OF CONSTRUCTION PRODUCTS

i. Building Construction:
a. Residential e.g. bungalow/flat/duplex
b. Non-residential e.g. commercial (office space, shops, retail stores/malls, hotels,
factories, warehouses) and institutional (public buildings) like schools, libraries,
hospital, theatres, prisons, barracks, police stations, courts, churches/mosques,
recreation centres

ii. Civil Works (including Public Utilities) – roads/highways, culverts, bridges, drainages,
dams, tunnels, railways, airports, port and harbors structures, pipelines, water treatment
and distribution systems, sewages and storm-water collection

iii. Heavy/Industrial Engineering – petroleum refineries and petrochemical plants, steel mills,
aluminum plants, large and heavy manufacturing plants, mining plants, nuclear power
plants etc
Further Reading
Halpin, D.A. and Senior, B.A. (2012). Construction Management. Wiley.
Oladapo, A. and Milne, J.A. (1987). Builders’ Pricing and Tendering Procedures in Nigeria.
Julab Publishers Limited, Ibadan, Nigeria.
 MODULE TWO QTS213
CONTRACT AND ESSENTIALS OF A VALID CONTRACT
CONTRACT
A contract is an agreement between two or more parties, which is intended to have legal
consequences or to create a mutual legal obligations. A contract can be either oral or written. Most
contracts have to be written in order for them to be valid especially when a significant among of
money is involved. It might be more challenging to enforce an oral contract and this should be
avoided most especially for construction contract that is always capital intensive.

Essentials of a valid construction contract

Contract can be entered to by the parties in various ways and these may include:
1) Implied by conduct of the parties – a contractor may submit an offer and later have access to
the site.
2) By word of mouth – typically where an offer is accepted by telephone.
3) By exchange of letters – common for small domestic works of extension, alteration or repair
4) Using a written contract – the contract documents often include the enquiry documents, the
written offer, minutes of meetings, tender-stage correspondence, a programme, a method
statement and a formal contract with the agreed terms.

For a contract to be considered a valid contract, it must contain various essential requirements such
as:
1) There must be an offer by one party and an acceptance by the other or others.
2) Each party must contribute something of value to the other’s promise; a client is responsible
for making payments and the contractor must complete the construction. i.e there must be an exchange of value.
3) Each party must have the legal capacity to make a contract.
4) The parties must have exercised their own free will, without force or pressure.
5) Each of the parties must genuinely accept the terms of the contract

A contract comes into existence when an offer has been unconditionally accepted. In construction,
offer is referred to as the ‘tender’, ‘estimate’ or ‘bid’. Suppliers and sub-contractors sometimes
refer to their offers as ‘quotations’.

A contractor is expected to receive an acceptance in a clear term from the client or his adviser. A
letter of intent is often used to let a contractor know that he should prepare to start work. This
statement should clearly state that all work carried out by the contractor and specialists, even if the
contract does not follow, will be paid for in full.

Every contract must comprise a variety of documents such as:

1. Contract drawings
2. Specifications
3. Bill of quantities
4. Conditions of contract
5. Tender
6. Legal (Article of) agreement
 MODULE THREE QTS213
CONTRACTUAL ARRANGEMENT IN CONSTRUCTION
INDUSTRY – TRADITIONAL PROCUREMENT SYSTEMS
Contractual Arrangement
Contractual arrangement is the legal relationship that exists between the parties to a contract
including the mode of payment for the work done or executed. Contractual arrangement however
should not be confused with tendering procedures, which allow an offer to be made. The former
spells out the type of contract to be entered into and the obligations, rights and liabilities of the
parties to the contract while the latter deals with the process of selection of the executor of the
project. The employer in the light of the advice that he receives from his professional advisers will
normally make the choice of type of contract.

The various types of construction contracts are now examined with principal uses, merits and
demerits. There are three main traditional types of contracts: Fixed price contract, Cost
reimbursable contract and Package deal

(A) Fixed Price Contract:

Fixed price or lump sum contract requires the contractor offers to carry out the work, which has
been fully described in return for payment of a fixed sum of money. The offer is subject to
conditions. For instance, quantities and rate will be adjusted for variations and fluctuation. There
are different types of lump sum contract:
i.) Lump sum with bill of quantities
ii.) Lump sum with approximate quantities
iii.) Lump sum with plan and specification
Lump sum with bill of quantities contract:
This type of contract is preferred by both consultant and clients. In this type of contract, the
contractor undertakes to carry out the work in accordance with the tender drawings and as
described in the BOQ, which contains every item of cost, required to complete the project for
specified lump sum. It is used for all works other than minor works including specialist and most
of the engineering work where the requirements can be ascertained before the contract is let. The
inclusion of quantities reduces the contractor’s estimating risks, reduces contractors’ tendering
costs and provides basis for valuing variations, which may occur during the contract and, also for
stage or interim payment.
The advantages of this type are:
i. It is a familiar type
ii. There is a fair basis for tendering
iii. The contract sum is known in advance
iv. There is a good basis for financial control
Disadvantages includes but limited to:
i.) Delay in commencement of work due to time for the preparation of contract documents
like working drawings and bill of quantities
ii.) Requires large sum of money to prepare contract documents due to number of competitors
Lump sum with approximate quantities contract
This is similar to lump sum with BOQ except that the quantities given in the bill are approximate
only and are subject to later adjustments. Only the unit rate forms part of the contract. While the
best procedure is to provide accurate quantities, there are circumstances where approximate
quantities are necessary. Such instances include:
- where speed is of paramount importance,
- when work is below the ground and
- when work is uncertain in extent
Where bills of approximate quantities are used for tendering, the procedure will normally be the
same as with accurate bill. A Standard Form of Contract has been prepared by the Joint Contract
Tribunal (JCT) for use with approximate quantities.
The main problem arises with post-contract administration, particularly with regard to cost control.
It is usual to adopt one of the following three approaches:
- Re-measurement at the end of the contract will becomes the basis for the final account
- Measurement of production drawing when completed to substitute for the approximate bill.
- On site measurement by resident QS as soon as work is executed.
A variant of this contract is schedule of rates
Lump sum with plan and specification
Small contracts are often let on the basis of drawings and specification and the contractor usually
submits to the employer a fixed tender sum for work covering its execution and normally the
maintenance for a specified period after completion. Contract of this type encompass such projects
as small ancillary buildings, small extensions to existing buildings, work of decoration and
demolition, construction of playing fields and the like.

In the absence of any variations to the project, the employer will know the cost of the work from
the outset and he remains immune from increases cost that may occur during the course of the
contract. The contractor is made liable for all the risks and uncertainties associated with the works
and he must allow for them in his tender price.

(B) Cost Reimbursement Contracts:

Cost reimbursement contracts are not favoured by many of the industry’s clients as there is absence
of a tender sum and a possible final account cost. These are sometimes known as cost plus contract
or “prime cost” contract. Prime cost of a project is the net cost of materials, labour, plant and other
preliminary items expended on the project and in addition a management fee to the contractor to
cover his profit and overheads. The price cost is ascertained by the contractor submitting material
invoices, labour hiring invoices and plant-hiring charges for claims, the fees paid to the contractor
is usually calculated on a previously agreed method, which gives rise to a number of forms of cost
reimbursement contracts. It is an uneconomical type of contract and therefore should be used in
special circumstances like
- Where none of the other types of contract is appropriate
- Where new technology is being used
- Where there is special relationship between the client and the contractor
- Where the contractor possesses special ability the client/architect wishes to utilize or where
work of exceptional quality is required
- Where as a result of limited time, the traditional process may not be used
 - Where it is difficult to determine the type and scope of work

There are three variant of cost reimbursable contracts.

Cost plus percentage fee
Under this type of contract, the net cost of labour, material, plant etc. expended on a project are
ascertained and percentage added to cover the contractors profit and overheads. The percentage is
agreed on before the contract is signed and may be subjected to completion i.e. several contractors
submit the percentage addition they require on the net cost of the various element.

For instance, if #800,000.00 is an anticipated contract sum and agreed percentage is 20%, the
contractor will be entitled to #160,000.00 for his profit and overhead. However, if at completion,
labour, material and plant cost #1m, the contractor’s management fee will increase to #200,000.00.
If on the other hand, final contract sum decreases to #600,000.00, overhead and profit also decrease
to #120,000.00.
The main advantage of this type of contract is that:
i. A contractor can be selected and work started with the minimum delays.
ii. It is ideal for emergency situations possible before BOQ can be prepared or when there is
insufficient information for a BOQ to be prepared.
iii. If the contractor is efficient, the cost to the client should represent a fair price.
The disadvantage is that:
i. Almost invariably the final cost of the project will be much higher than say a BOQ contract.
ii. There is no mean time for the contractor to economize, the longer it takes him to complete
the work and the higher the level of wastage, then the higher the net cost of the project and
as a result his profit will be higher. It’s sometimes helpful to have an agreed contract period
for such contract.
Cost plus fixed fee
This is similar to prime cost plus percentage fee but the fee paid to the contractor is a fixed lump
sum not a percentage. The fee is fixed and agreed between the parties before the contract is agreed.
Much more information is required at this stage because reasonable accurate estimate of the work
is required before a fixed fee can be agreed on. It is a better type of contract than the previous one
because there is a slight incentive for the contractor to economize time-wise and earn his fee as
soon as possible. However, there is no incentive to reduce waste since his fee is not affected either
way. Early commencement of the work is undermined in order to reach an agreement which
requires fairly detailed scheme. In addition, renegotiation of fee will be require if there is variation.
Cost plus fluctuation (variable) fee
This is an improvement on the previous two types of cost reimbursable contract. In this form of
contract, the contractor is paid the actual cost of the work plus a fee (fixed and variable), with the
amount of the fee being determined by reference to the allowable cost by some form of sliding
scale. Thus the lower the final cost of the works (prime cost), the greater will be the value of the
fee that the contractor receives. An incentive then exists for the contractor to carry out the work as
quickly and cheaply as possible, and it does constitute the most efficient of three types of prime
cost contract that have been described.

The advantage is that there is an incentive for the contractor to minimize cost and time.
The disadvantage is that the quality of the work might be affected.
(C) Package Deal Contracts:
In this type of contract, the contractor is responsible for the design as well as the construction of
the building. The competing contractors are required to comply with the client’s brief but are given
scope to utilise their construction knowledge and skills. Most contractors who undertake work of
this nature rely heavily on industrial building systems or standardized prefabricated units.
Moreover, the client can give his brief to a contractor of his choice who will be invited to submit
proposal in terms of drawings, specifications, cost and completion time. When such documents
and information are submitted and the client is satisfied that the contractor meets the requirements
in term of use and cost, then, award is made and a formal agreement is signed. This arrangement
means that all the consultants’ works will be carried out by the contractor as well as constructing
the project. Alternatively, independent consultants may be appointed to supervise the post-contract
works.

In another way, many contractors that are capable of executing the works are invited to submit for
the earlier mentioned proposal and a suitable one among them is chosen, and independent
consultants may be appointed as before mentioned. There are other instances when independent
consultants are appointed to design and the contractor is invited at the sketch scheme stage to
participate in the final design. This is done in order that the contractor can contribute on
construction techniques for designs that will be suitable for the project. Then, cost is then
negotiated with appropriate professional i.e. quantity surveyor.

This type of contract has the following advantages:

- There is possibility of best workmanship
- The project can be completed at the earliest possible time
- There is an opportunity for contractor to contribute at the design stage
- Variation will be minimized
- It gives contractor earliest start time in execution of project
- There is possibility of a firm price and completion date

Also, the following are the disadvantages:

- High contract sum
- The likelihood of doubt in public accountability is high
- Rigidity in design due to the contribution of contractor
- The solution for the project may not be the best option
- There could be a lot of wastage when independent consultants are not appointed
- Variations are usually very costly when they occur
 MODULE FOUR QTS213

CONTRACTUAL ARRANGEMENT IN CONSTRUCTION

INDUSTRY – ALTERNATIVE PROCUREMENT SYSTEMS
Contractual arrangement is the legal relationship that exists between the parties to a contract. This
arrangement however should not be confused with tendering procedures which allow an offer to
be made. The former spells out the type of contract to be entered into and the obligations, rights
and liabilities of the parties to the contract while the latter deals with the process of selection of
the executor of the project.
The traditional method of organizing construction work starts with appointing a consultant
designer, usually an architect or engineer, or both. Other specialists may be needed, in particular a
quantity surveyor is appointed to provide cost information, prepare bills of quantity, compare bids
and maintain financial management during construction. The needs for newer methods of
managing contract have been adduced to different factors. Variations in project procurement
system induced the quest for more efficient and speedier project delivery system and better project
performance. However, inflations and litigious are some of the causes of the emergence of design
and build, turnkey and construction management.
The impact of procurement systems on the construction industry performance and the national
economy at large cannot be underestimated. It is asserted that the selection of an inappropriate
procurement method may lead to undesirable project outcomes. The construction industry being a
dynamic industry has no two similar products. This peculiarity alongside with growing clients’
expectations, market demands and environmental changes has necessitated the development of
alternative procurement systems. Besides the traditional procurement system that once remained
clients’ last hope for project delivery, other systems identified are design and build, labour only,
direct labour and management procurement.

(1) Traditional Procurement System

The traditional method of procurement involves the appointment of an architect who leads the
design team which is set up at his architect’s recommendation. The other members of the design
teams are the engineers and the quantity surveyor. It is known as design-bid-build (or
design/bid/build, and abbreviated D-B-B or D/B/B or DBB). DBB has three main phases:
• The design phase,
• The bidding (or tender) phase, and
• The construction phase
In this method, the architect most of the times takes the clients brief and then develops it into
pictorial form. Engineers then come in for the structural and mechanical and detailed it up to a
point where the various elements of the structure can be taken-off and worked up into a bill of
quantities by the quantity surveyor. After this stage, the builders or contractors are invited to tender
for the construction. Their tenders are examined/evaluated, compared and the successful contractor
is appointed to carry out the execution in accordance with the contract documents under the
guidance of the architect. The key feature of this form of procurement is the separation of design
and construction.
Advantages of Traditional Procurement System
i. It exploits the economic potential of the free market by enabling contractors to be selected
either by open or select competition among an unlimited number of prequalified
competitors
ii. The separation of design and construction appointment and service provision effectively
restricts the amount of opportunistic business behaviour of those involved until the design
is completed
iii. Considerable flexibility is allowed for unforeseen events occurring during the construction
phase, e.g., ground conditions, changes in scope and design, and errors in documentation
iv. It is a ‘value for money’ delivery system which employs participants with different talents
and combines these talents into a business relationship to produce the desired results with
greater certainty.

Disadvantages of Traditional Procurement System

i. A relatively lengthy time from inception to start on site
ii. High Owner liability - Disputes go through Owner - Owner bears design adequacy risk
iii. Lack of involvement of the contractor at in the design process
iv. Designers and constructors have some conflicting agendas/objectives – don’t align with
owner objectives.
 v. If and when construction low bid comes in over budget, there can be delays and money
problems.
vi. Initial low price doesn’t necessarily give best value or even the lowest final price.
Separating responsibilities for design and construction is seen as the main reason for the move
away from traditional contractual arrangements.

(2) Design and Build System

Design and build (DB) is a method of project delivery that combines the design and construction
functions and vests the responsibility for such functions with one entity called design-builder or
design and build contractor. DB originates in the ancient “master builder” concept where
responsibility for both design and construction resides with one person. Hence, it is not a new
concept. The emergence of architecture and construction profession benefitted DBB and caused
sharp decline in the use of master builders.

In this method, after deciding to execute a project, an owner produces a request for proposal (REP).
In a REP, the owner describes all aspects including the project mission, goals, programs
requirements, proposal evaluation criteria and any time or process constraint. DB companies take
the REP and produce their design proposals. The owner then evaluates each proposal in accordance
with the REP evaluation criteria. This evaluation process is called a “Best Value” selection.

Fig. 2: The design and build system

Advantages of D & B Procurement System

• Single point responsibility
• Reduce project duration
• Price certainty prior to construction
• Improved degree of buildability
 • Reduces risk of conflicts and disputes between designer and contractor
• Shifts risk of design errors to design-build entity
• Allows selection of design-build entity based on best value rather than lowest responsible
bidder

Disadvantages of D & B Procurement System

• Reduction in client’s ability to control design
• Quality of design may be affected as design-build entity attempts to control costs
• Commitment prior to full design
• Difficulty in comparison of tenders
• Potential for fewer checks and balances than in DBB system
• Potential for increased start-up time or delay in preparing contract documents and assessing
project scope
• Complexity of agreements and labour compliance programme may increase administrative
costs

(3) Management-Based System

Management-based contracts is an arrangement under which the main contractor does none of
the actual building works but is employed simply to provide management service for the client.
Management-based contracts are types of procurement routes in which the contractor (either as
management contractor or construction manager) is employed/engaged to provide management
expertise and buildability advice in a professional capacity in return for a lump sum or percentage
fees to cover for overhead and profit. Management contracting and construction management are
very similar. The distinguishing characteristics fundamental to understanding of the systems in
contractual arrangements between the parties.

(4) Management Contracting System

The management contracting is a contract procurement method in which a management contractor
provides management expertise on a construction project in return for a fee. The management
constructor is appointed at the feasibility study. In this role the management contractor who may
be a general contractor which in other situation may be appointed by the building owner to work
alongside his professional consultants. The management contractor is appointed on a similar
professional basis as the consultants to enable him give a construction management service in
return for reimbursement on a fees basic.

Comparison between Traditional, Design & Build, Management-Based and Management

Contracting Systems
The works contractors are in contract with the management contractor while in construction
management, the package contractors are in contract with the employer. The management
contracting retained the “traditional” structure of main contractor and sub-contractor but the
management contractor will not carry out any of the actual construction work in the project except
for the possibility of the work involved in setting up the site and cost normally associated with the
preliminary works.

The management contractor unlike the design build contractor does not carry out any of the
construction and each element of the work is let out on a competitive basis to a number of specialist
subcontractors. In most cases, the management contractor is responsible for the setting up of
overall site establishment and general backup of services for the use of various specialist
subcontractors. The underlined philosophy of the approach is to allow the contractor to become
part of the client’s team and for the total management function to be carried out in partnership with
the members of the design team to the overall benefit of the client.

The essential difference from a design build contract is that a contractor while coordinating design
with the construction of the project does not directly carryout the role of designer or contractor
and is concern strictly with management. He also reimburses on a fee and prime cost basis rather
than on variable profit

Advantages of Management Contracting

(1) The management contractor can advise on the design implications and cost
(2) He coordinate the work on site very efficiently
(3) He controls the tendering procedure and contractual arrangement for the work elements
(4) The total time frame from brief to commissioning is reduced
(5) Cost monitoring is instituted

Disadvantages of Management Contracting

(1) The management contractor will require to be paid for his pre-contract work if the project
does not go ahead as scheduled
(2) If the contract is let late, little or no time will be available for negotiating cost reduction
of the overall project.
(3) Detailed bill of quantities is necessary for costing variations
(4) Work starts on the site while the scheme is yet to be fully design architecturally and
structurally, this affects the eventual cost of the project.
(5) Construction Management
In construction management, the trade contractors (packages contractors) like the consultants are
in direct contract with the employer. Because of this direct contract arrangement, additional client
involvement is required and this approach is therefore not recommended for those without
adequate experience and resources.
Further Reading
AIA Minnesota (n.d.). Understanding project delivery for the design and construction of public buildings.
Retrieved from www.aia_mn.org
Ashworth, A. & Hogg, K. (2007). Willis’s Practice and Procedure for Quantity Surveyor (12th ed.).
London: Blackwell Science Ltd
Ashworth, A. Hogg, K. and Higgs, C. (2013). Willis’s Practice and Procedure for Quantity Surveyor (13th
ed.). London: John Wiley & Sons Ltd
Bell, S. D. (1996). Construction Procurement: Design-Build as an Alternative to Design-Bid-Build.
(Dissertation submitted to the Graduate Faculty of Texas Technology University, USA).
Birnie, J. & Yates, A. (1996). Procurement Choice - Implications for the Quantity Surveying Profession.
London, U. K.
Design-Build Institute of America, http://www.dbia.org/fr industryin.html.
Hackett, M., Robinson, I and Statham, G. (2007). The Aqua Group Guide to Procurement, Tendering and
Contract Administration. UK: The Aqua Group and Blackwell Publishing
Idoro, G. I. & Iyagba, R. R. (2008). A Comparative Study of the use of Procurement Systems in the
Construction Industries of Finland and Nigeria. The Professional Builder, ISSN 0795-8854, 40 –
50.
Idoro, G. I., Iyagba, R. O. A. & Odusami, K. T. (2007). Evaluation of the use of Design-Bid-Build
Procurement System in the Nigeria Construction Industry. Construction Research Journal, 1(1) 15
– 25.
Joseph, A. L. & Jayasena, H. S. (2007.). Impediments to the Development of Design and Build Procurement
System in Sri Lanka. Department of Building Economics, University of Moratuwa.
Kadiri, D. S. & Odusami, K. T. (2003). Comparative Study of Time and Cost Performance of Direct Labour
and Labour Only Procurement Systems. The Quantity Surveyor, 44 (3) 9 – 16
Kong, A. T. & Gray J. (2006). Problems with Traditional Procurement in the Malaysian Construction
Industry – a survey. In Runeson, Goran and Best, Rick, Eds. Proceedings Australasian Building
Educators Association Annual Conference, pp. 1 – 21, University of Technology, Sydney.
Retrieved from http://eprints.qut.edu.au
McClain, L. R. (2007). Design-Build Interoperability and conceptual Design and Development of a Design-
Build Management Control System. (Thesis submitted to the Academic Faculty, Georgia Institute
of Technology).
Murdoch, J. and Hughes, W. (1992). Construction Contract Law and Management. UK: E & FN Spon.
Contracting Procurement Methods on Client Objectives. Proceedings of the Millennium Conference
“Building in the 21st Century”- Department of Building, Ahmadu Bello University, Zaria, Nigeria.
Rashid, R. A., Taib, I. M., Ahmed, W. B. W., Nasid, M. A., Ali, W. N. W. & Zainordin, Z. M. (2006).
Effect of Procurement System on the Performance of Construction Projects. Department of
Quantity Surveying, University of Teknologi, Malaysia.
Richards, Watson & Gershon (2009). Public work practice group
Songer, A. D. & Molenaar, K. R. (1997). Selecting Design-Build: Public and Private sector Owner Attitude.
Retrieved April 25, 2009 from http:/www.colorado.edu/engineering/civil/db/papers/slctdb.
Udechukwu, C. E. & Iyagba, R. O. A. (2008). Comparative Analysis of Construction Scenarios in Japan
and Nigeria. The Quantity Surveyor, 55 (1) 28 – 37.
Wikipedia (2009a). Design-Bid-Build. Retrieved April 25, 2009 from http://en.wikipedia.org/wiki/design-
bid-build.
Wikipedia (2009b). Design-Build. Retrieved April 25, 2009 from http://en.wikipedia.org/wiki/design-bid-
build.
Williams, C. J. (n.d.). Challenges in Project Delivery and Project Management for the 21st Century
 MODULE FIVE QTS213
TENDERING - Description, Objectives; Parties involved & their Roles; and Tendering
Processes/Procedures
After a client has selected an appropriate procurement method/system/strategy for his building
project, the next stage will be a review of how best to obtain the resources that will be necessary
for him to have the work carried out. In most instances, client organizations will have limited skills
and resources relating to construction work and they will have to rely on others to provide the
necessary services, expertise and resources, e.g., designers, engineers, surveyors and contractors.
The client will therefore need to identify and contact suitable personnel or organizations to assist
him with his project, and agree with them on the scope and nature of their works or the resources
to be supplied and the basis of payment. This will be achieved through a process called Tendering.

Tendering is:
i. An act by which submission of a quotation is made by a tenderer when so desired by a
client, which may be an individual, a group of people, a company, government ministry
or any of its parastatals
ii. An offer by one party to provide goods and services or undertake works for another
party in return for a specified sum of money”.
iii. Administrative procedure of sending out drawing and bills of quantities or
specifications to contractors for them to state their prices for all the items of
one contract. Besides the contractors price, other considerations include his
competence and financial standing”

Objectives of Tendering:
i. To select the most suitable contractor for a construction contract
ii. To get the most competitive price for a construction contract
iii. To give client (employer) value for money

Alternatively, tendering is carried out;

i. For the supply of certain goods such as furniture, aluminum or bitumen roofing materials
or special windows and doors etc
ii. For the construction and erection of all construction works including new buildings, road
works, bridges and dry-docks

Parties involved in Tendering and their Roles

i. Client – A client is the owner of a construction brief who share the same with the
professionals in the industry to translate such into physical construction products. He is
also the financier of such brief and make available all resources required by all the parties
employed in the process of turning the brief into desired product. In construction contract,
the client and the contractor are the two main parties to any construction contract and either
of the two do employ the services of the construction professionals to protect their interest.
 ii. Designers including architect, civil/structural engineer and service engineers (mechanical
and electrical)
a. The Architect is responsible for translation of the initiator’s/client’s concept into a
pictorial form for other professionals to interpret and make necessary construction.
Because construction projects are unique, there is no singular format for relating
between the architect and the quantity surveyor (QS) but there exist patterns defined
by procurement methods applied and explained in the joint contract tribunal (JCT)
for execution of construction projects.
b. The civil/structural engineers are responsible for structural stability of any
proposed design. This include soil test to determine type of foundation(s) and
design the frames (i.e. columns & beams for concrete & steel).
c. The services engineers (i.e. mechanical and electrical (M&E) engineer) are
responsible for the plumbing and wiring system that ensure the functionality of the
proposed building. They are often employed by the client based on architect and
sometimes QS advice

iii. Quantity Surveyor is also called estimator, cost consultant or cost engineers. A QS
examines cost implication of alternative design & advice the architect appropriately. He
values work in progress as agreed in the contract & advice the architect on the amount due
to the contractor. He values variations and additional works & advice the architect
appropriately. He prepares the final account after defect liability period (DLP) & advice
the architect on the outstanding amount to be paid the contractor.

iv. Contractors – They are also called tenderers or bidder or constructors. A contractor assists
in turning client’s brief into reality by deploying the resources provided by the client under
the guidance of the professionals engaged by the client.

v. Subcontractors – They are trades contractors who work under the supervision of main
contractor. They can be nominated, domestic and specialist depending on
Tendering Procedures
i. Appointment of consultants like architect, engineers, quantity surveyor etc
ii. Production of preliminary sketches based on client’s brief
iii. Preparation of preliminary estimates
iv. Preparation of architectural and engineering designs known as working drawings
v. Preparation of bill of quantities
vi. Compilation of tender documents
vii. Collection of tender document by contractors for tender purpose
viii. Submission of priced tender
ix. Opening of tenders submitted by contractors.

Figure below illustrate tendering procedures/processes from client’s brief to the award of contract:
 CLIENT
Appoints Needs a new building/an
Commissions
extension/alteration to an
existing building

QUANTITY SURVEYOR Client approves ARCHITECT

Prepares a Bill of Quantities the Architect To plan and design a
(BOQ) based on Architect’s plans and design building which will fulfil
design client’s requirements

Set of tender documents comprising a BOQ

and copies of the architects drawings on which
the bill is based are sent out to each of the
building firms who have accepted the
invitations to tender for the building

Builder A, B, C, D and E
Each builder prepares an estimate of cost of construction of
the building described in the BOQ and shown on the
Architect’s drawings. The builder then submits a tender
figure to the Client based on his estimate.

The Client and his The successful tenderer is

advisers (the Architect required to enter into an
and Quantity Surveyor) agreement (the contract) by
assess the tenders which he agrees to construct
submitted and award the the work for the sum specified
contract.

Figure 1: The Tendering Process

Source: Jagboro (1989)
Further Readings
Ayeni, J. O. (1997). Principles of tendering & estimating (2nd ed.). Lagos: Builder’s Magazine
Limited.
Jagboro, G. O. (1989). Principles and Practice of Quantity Surveying. Somolu, Lagos: Fancy
Publication Ltd.
Oboirien, M. O. (2007). Tendering and Estimating for Building Students.
UNESCO-Nigeria Technical & Vocational Education Revitalization Projects-Phase II (2008).
National Quantity Surveying Tendering and Estimating I: QUS209.
 MODULE SIX QTS213

TENDERING – Types with their Advantages and Disadvantages

Types of Tendering
There are essentially two ways of selecting a contractor: through competition or by negotiation.

TENDERING

Competitive Negotiated

Open Restricted/Selective

Serial

(1) Open Tendering:

This type of tender is usually thrown open to all and sundry. An advertisement is made in the daily
newspaper or radio and television to invite all interested contractors to collect tender documents
and make offer for the contract. Sometimes, such advertisement can state the type of contractors
that are needed and expected to submit tender documents. The advertisement usually contains
some important information about the contract, which include title of the project, location of the
project, where tender document can be collected, the closing date for submission of tender, time
and place for such submission, and all other information on prequalification of contractors.

Advantages:
1) It gives opportunity for all and sundry to participate in the tendering process (selection of
contractor)
2) It gives widest range of selection
3) It eliminates the possibility of ring formation or collusion among contractors
4) It makes public accountability possible
5) It creates opportunity for unknown contractor to be known especially when he is
successful
6) It allows keen competition which may produce cheaper tender figure
7) It is an opportunity to get genuine tenderers who are actually interested in the project.
 Disadvantages:
1) It involves excessive paper work because so many contractors will tender
2) It wastes time since only one tenderer/contractor will be selected for the contract
3) It takes longer time to conclude award procedure because so many tenderers need to be
examined
4) There is possibility of mushroom (small and incompetent) contractor

(2) Selective Tendering

In this method, a list of contractors that are well known or had worked with client or any of its
representatives/professional advisers is drawn up and invited to submit tenders. Alternatively, an
advert can be made in the press, requesting contractors to make application by submitting some
documents/information for the purpose of prequalification before they can be qualified and be
listed on such a list. From this, a list of the most qualified and suitable contractors is drawn up
while others who indicated interest are later inform of their non-inclusion on the list. Sometimes,
public authorities usually prepare such a list of competent contractors for different size and types
of works based on the previous knowledge and experience of these contractors, and their
performance on past works. National Joint Consultative Committee for Buildings often prepares
number of contractors that can be on such a list and this is determined by the contract sum. This
tendering method is often employed when quality and performance of project is too important to
the client. Some serial clients can also keep a register of contractors and choose from the list
whenever a need arise. A letter of invitation is often written to such a contractor to collect tender
documents and tender for such a contract.

The following points however have to be considered in this tendering arrangement:

(i) The standard of workmanship required
(ii) The equipment such as plant and workshops owned by the firm
(iii) The business records and standards of the firm e.g. whether completion dates were met on
previous jobs, the project were brought in within budget, claims policy of the firm etc.
(iv) The financial stability and length of time in business
(v) The capacity available in relation to the firms current work load.
(vi) The local history in respect of labour relations
(vii) The real willingness to tender

Advantages
i. Only competent contractors are invited to tender in this kind of arrangement and the lowest
tender is often found to be realistic and suitable
ii. There is certainty of performance and good workmanship since known contractors of good
performance are invited to tender
iii. The period of tendering to the award of contract will be short when compared with open
tendering due to small number of contractors
iv. It reduces the risk of failure and cuts the cost of preparing estimates
v. It enables competing contractors to include an adequate level of profit which in turn helps
to give stability the industry
Disadvantages
i. There could be possibility of ring formation or collusion among contractors
ii. The tender sum is most likely to be higher that open tendering due to the type of contractors
that are invited
iii. It is usually a monopoly (cartel/cabal) market with a very view participants since it is not
open to all the contractors that might be interested

(3) Negotiation Tendering

It is an advanced form of selective tendering whereby contracts are entered into for a particular
reason like contractor having special management skills or is a specialist in a particular works that
require a high degree of technical competence or has done such type of contract for the client in
the past or can complete a contract within a required or restricted time. In this arrangement, the
contractor is selected at an early stage in the design process to provide professional experiences
gained in previous similar works. However, some level of competition must be included based on
a tender document (use of bill of quantities) in which the contractor indicates level of costs required
for labour rates, site establishment, general overheads and profit. After the acceptance and as the
drawings are prepared, the contractor and quantity surveyor will prepare and price a bill of
quantities for the work. Both parties will agree the amount of details in the bill of quantities and
the level of pricing will be that laid down in the initial tender document.

The basis of selection will depend on factors such as:

1. General basis of pricing
2. A construction programme or method statement
3. A design offer especially in the case of system building

The client or his consultant will carry out the first stage with various firms until one firm is chosen.
The second stage negotiation will proceed with this one firm until an agreement is reached
and the contract awarded

Advantages
1. The procedure is often time saving since the two parties are able to take shut-cuts
2. More factors can be discussed in detail between the parties during negotiations, including
matters of construction method and procedure.
3. Competition no longer depends on price alone but also on competence

Disadvantages
1. Negotiation contract tend to have higher prices than where agreements are reached
through competitive means
2. Conditions for public accountability are rarely satisfied

(4) Serial Tendering

Selected contractors are invited to tender for a project, for example a school, with the
understanding that the successful tenderer will be asked to build similar projects at the agreed rates.
The serial negotiated contracts are arranged with one contractor on a prime cost basis.
Further Reading
Ashworth, A. Hogg, K. and Higgs, C. (2013). Willis’s Practice and Procedure for Quantity
Surveyor (13th ed.). London: John Wiley & Sons Ltd
Ayeni, J. O. (1997). Principles of tendering & estimating (2nd ed.). Lagos: Builder’s Magazine
Limited.
Jagboro, G. O. (1989). Principles and Practice of Quantity Surveying. Somolu, Lagos: Fancy
Publication Ltd.
Oboirien, M. O. (2007). Tendering and Estimating for Building Students.
UNESCO-Nigeria Technical & Vocational Education Revitalization Projects-Phase II (2008).
National Quantity Surveying Tendering and Estimating I: QUS209.
 MODULE SEVEN QTS213

TENDER DOCUMENT – Description, Types and Nature

After the client and his/her team has decided on form of contract to be adopted in the execution of
a contract, the next step is to prepare documents that are needed for signing a valid contract.
Contract documents are written and graphic documents that are prepared or assembled by the
architect/engineer for communicating the design of the project and administering the contract for
its construction. Various standard forms of contract define contract documents as follow:

According to JCT 98 (Clause 1.3), JCT 2005 (Clause 2.9) and JCT 2011, Section 1.1, contract
documents for a building project comprise:
 Contract drawings,
 Contract bills (or specification),
 Articles of agreement,
 Contract particulars and
 Conditions of contract.

For civil engineering projects, using Institute of Civil Engineers (ICE) Conditions of Contract,
contract document will comprise:
 Conditions of contract,
 Specification,
 Drawings,
 Bills of quantities,
 Tender,
 Written acceptance and
 Contract agreement

Seeley and Murray (2001) opines that if civil engineering project is proposed to be delivered using
traditional procurement route with ICE 6th edition forms of contract, the contract documents in
order of importance are:
 Conditions of contract,
 Contract Drawings,
 Specification
 Bills of Quantities

Contract Drawings
Drawing is a graphical representation that describes the scope of any proposed construction
project. Normally, general arrangement drawings will be provided, showing site location, position
of the building(s) on site and means of access to the site and floor plans and elevations. Tenderers
are not normally given working drawings as they are not considered to be necessary for pricing
purposes, full descriptions of the work being incorporated in the bills or specification. Tenderers
are informed, however, that they can inspect drawings not supplied to them, at the architect’s
office.
Bills of quantities
Bill of quantities shall fully describe and accurately represent the quantity and quality of the works
to be carried out. Work which cannot be measured shall be given as a provisional sum. Work
whose extent of which is not known shall be described as provisional or given in a bill of
approximate quantities. In any contract, every tenderer should be sent two copies of the bills, one
to be returned to the architect or quantity surveyor as part of tender while the other is for the
contractor to keep as a copy of his submitted prices. If the tenderers are not required to submit
priced bills with their tenders, only one copy should be sent to them initially. A second copy will
then be sent at the time of requesting submission of the priced bills. A typical example of a bill of
quantity is as shown below:

RATE AMOUNT
ITEM DESCRIPTION QTY UNIT (=N=) (=N=)

PROPOSED DEVELOPEMNT FOR CLIENT AT

ADDRESS
GENERAL SUMMARY

BILL NR. 2 - PRELIMINARIES 1,000,000.00

BILL NR. 3 - GENERAL PREPARATORY &

DEMOLITIONS 2,759,110.00

BILL NR. 4 - MAIN BUILDING 29,419,060.00

BILL NR. 5 - EXTERNAL WORKS 3,047,510.00

SUB TOTAL =N= 36,225,680.00

Allow for Insurance of the Works against liability for injury

to persons and property as Conditions of Contract Clause 18

Allow for Insurance of the Works against liability for injury

to persons and property as Conditions of Contract Clause
19(1) 5% 1,811,284.00

Allow for Insurance of the Works against fire etc as

Conditions of Contract Clause 20(A)

Allow for Advance Payment Bond (acceptable to the Bank)

CONTIGENCIES
1,000,000.00
 TOTAL CARRIED TO FORM OF TENDER =N= 39,036,964.00

Every bill of quantity should have six columns namely item, description, quantity, unit, rate and
amount. Item column gives an identity to every activity described in a page of a bill of quantity
using alphabets, however, alphabet “I” is usually excluded. Description column is one which spells
out specification for every item listed in the bill. Quantity is the amount or volume of work to be
done while unit is the measurement parameter for the volume of work. Rate is the price of every
unit of the quantity of items to be executed while amount is the total of sum of quantity multiplied
by the unit price.

Specification
A specification is a document that clearly, accurately and completely describes in detail what the
government needs to purchase. A clear, accurate and complete specification is the foundation of
any purchase of goods, services (including consultancies) or building works. The specification
should clearly outline the requirements for these items whether the purchase is for a small, simple
item of a large, complex item. To ensure the best chance of getting what the government wants the
specification needs to be very clear about what exactly it is that the government users require. The
essence of tender specification are to define requirements, guide the suppliers, establish agreement
with supplier and for future evaluation.

In the case of a traditional procurement route, utilizing a lump sum contracts without bills of
quantities will require that a detailed specification be supplied to tenderers. Sometimes a
specification will be supplied in addition to bill of quantities where they are used. A specification
may be in a form for detailed pricing.

Schedule of works
As an alternative to a specification in the case of ‘without quantities’ contracts, tenderers may be
supplied with a Schedule of Works. This lists the works to be carried in the contract under
appropriate headings. The tenderers may be required to price the schedule.

Standard forms
Standard forms of contract is the principal contract document which identifies the roles and
responsibilities of the parties and their agents. It provides the rules to protect the interests of all
parties. Clients have a wide range of standard forms of contracts for construction works especially
those being used for building works and are suitable for most of the procurement systems. Standard
conditions have been written by bodies such as the Joint Contracts Tribunal (JCT) and Institution
of Civil Engineers (ICE).

Available notable and common standard forms include:

1.) Joint Contracts Tribunal (JCT) for building works
2.) Institution of Civil Engineers (ICE) for engineering works
 3.) New Engineering Contract (NEC) - The NEC was developed by ICE in the early 1990s
with the aim of introducing a new form of non-adversarial form of contract strategy which
would contribute towards the more effective and smoother management of projects.
4.) Fédération Internationale des Ingénieurs-Conseils (FIDIC) known in English as
International Federation of Consulting Engineers for civil engineering work internationally

Each of this standard forms has it varieties aside different editions. The majority of the standard
forms of contract comprise, in one way or another, the following three sections: Articles of
Agreement, Contract Particulars and Conditions of Contract

Articles of Agreement
THIS AGREEMENT made the ……………….….… Day of ……...………….. 2015 between
CLIENT a body corporate established under the Laws of the Federal Republic of Nigeria and
having its registered office at Client’s Address. (hereinafter called “The employer” which
expression shall where the context so admits include its successors-in-title of the one part and
……………………………………………………......................................................................
…………………………………………………………………………………………………..
a Company incorporated in Nigeria of (or whose registered office is situated at)
…………………………………..…………………………………………………………………
………………………………………………………………………………………………………
………………………………...(hereinafter called “The Contractor” which expression shall where
the context so admits include its successor-in-title and assigns) on the other part.

WHEREAS the employer is desirous of the Proposed DEVELOPMENT together with its
ancillary works (hereinafter called the “Works”) at SITE ADDRESS and has caused Drawings
and Bills of Quantities showing and describing the work to be prepared by or under the direction
of Physical Development Department, Address, consultium.

AND WHEREAS the Contractor has supplied the Employer with a fully priced copy of the said
Bills of Quantities (which copy is hereafter referred to as the ‘Contract Bills’).AND WHEREAS
the said drawings (listed in Appendix 2) (hereinafter referred to as the ‘Contract Drawings’) and
the Contract Bills have been signed by or on behalf of the parties hereto:
NOW IT IS HEREBY AGREED AS FOLLOWS:
1. For the consideration hereinafter mentioned the Contractor will upon and subject to the
Conditions annexed hereto carry out and complete the Works shown upon the Contract
Drawings and described by or referred to in the Contract Bills and in the said Conditions.
2. The Employer will pay to the Contractor the sum of thirty-nine million thirty-six
thousand nine hundred and sixty-four Naira only (=N= 39,036,964.00Kb) (hereinafter
referred to as ‘the Contract sum’) or such other sum as shall become payable hereunder at
the times and in the manner specified in the said Conditions

3. The term ‘the Architect’ in the said Conditions shall mean the said PHYSICAL
DEVELOPMENT DEPARTMENT, ADDRESS, or in the event of his death or ceasing
to be the Architect for the purpose of this Contract, such other person as the Employer shall
nominate for the purpose, not being a person to whom the Contractor shall object for
 reasons considered to be sufficient by an Arbitrator appointed in accordance with the said
Conditions. Provided always that no person subsequently appointed to be the Architect
under this Contract shall be entitled to disregard or overrule any certificate or opinion or
decision or approval or instruction given or expressed by the Architect for the time being.

4. The term ‘the Quantity Surveyor’ in the said Conditions shall mean Messrs QS Firm of
ADDRESS, Nigeria, or in the event of his death or ceasing to be the Quantity Surveyor for
the purpose of this Contract, such other person as the Employer shall nominate for that
purpose, not being a person to whom the Contractor shall object for reasons considered to
be sufficient by an Arbitrator appointed in accordance with the said Conditions.

5. The term “the Engineer” in the said Condition shall mean the person named in the
Appendix to the Preliminaries, or in the event of his death or ceasing to be the Engineer
for the purpose of this Contract, such other person as the Employer shall nominate for that
purpose, not being a person to whom the Contractor shall object for reasons considered to
be sufficient by an Arbitrator appointed in accordance with the said Conditions.

In witness whereof the parties hereunto have set their hands the day and the year first above
written.

Signed for and on behalf of the said Employer

Fifty Naira Stamp to be
Impressed on the original
CLIENT
………………………………………….

In the presence of:

Name ......................................................

Address ………………………………..

Occupation …………………………….

Signed for and on behalf of the said Contractor

Fifty Naira Stamp to be
Impressed on the original

…………………………………… …………………………….

In the presence of:

Name ………………………………….

Address ……………………………….
Occupation ……………………………

Contract Particulars
The contract particulars for the conditions of contract include that part of the contract which is
peculiar to the particular project in question. It includes key information on, for example, the start
and completion dates, the periods of interim payment due dates and the length of the rectification
period for which the contractor is responsible.

Conditions of contract
This document sets out the obligations and rights of the parties, and the detailed conditions under
which a subsequent contract will operate. If a standard form, such as the JCT Form, is used it will
not be sent out with the invitation to tender, it being assumed that the tenderers will have a copy
or can readily obtain one. The clause headings will, however, be listed in the first (Preliminaries)
section of the bills of quantities and/or specification.

Employer’s Requirements
Where a client wishes the contractor to have a design input on the project, perhaps by using a
design and build procurement route or using an alternative route which contains a contractor’s
design input, it will be necessary for the client to clearly set out his requirements to enable the
contractor to produce a suitable design. The JCT refer to this document as the Employer’s
Requirements. There is no standard form of employer’s requirements but the JCT Practice Note
provides advice as to the content and detail that should be included. The purpose of the form is to
provide tendering contractors with a clear idea of what the client wants in the way of a building,
e.g., type of structure, function, size, accommodation, quality, aesthetics, costs in use
requirements, etc. The actual detail provided in the form can vary considerably depending upon
how the client wishes to use the design and build process.

The form may contain only basic information as to the required function of the building, thereby
allowing tenderers a free rein regarding their design proposals. Alternatively a client may have
very clear ideas about his requirements, in which case the form may contain a full scheme design
prepared by the client’s architect, and the tenderers would be left with the task of developing the
working drawings and being responsible for delivery of the scheme design. Some of the items
identified by the JCT for possible inclusion in the Employer’s Requirements are:

1. The current state of planning permission and who is responsible for obtaining permissions where
consent has not yet been received.
2. A statement as to the function of the building(s).
3. A statement of site requirements, e.g., site boundaries, use of site, ground conditions and
availability of services.
4. The level of design, structural and specification detail to be provided by the tenderers.

Contractor’s proposals
The contractor’s proposals are the contractor’s response to the employer’s requirements and will
be the key document for the client to consider at the tender review. The advice provided by the
JCT on the basic content of the proposals is that they should contain the following:
1 Plans, elevations, sections and typical details.
2 Information about the structural design.
3 Layout drawings, incorporating details of services to be provided.
4 Specifications for materials and workmanship.

Form of tender
The form of tender is the contractor’s written offer ‘to undertake and execute the works in
accordance with the contract documents for a contract sum of money’ and will also state the
contract period and any price adjustment. This is a pre-printed formal statement in which a tenderer
fills in the blank spaces typically providing his name, address and the sum of money for which he
offers to carry out the work shown on the drawings and described in the bills of quantities or
specification. The JCT provides a Model Form of Tender for main contract works in Appendix C
to its Practice Note.

Return envelope
Each tenderer should be supplied with a pre-addressed envelope clearly marked ‘Tender for (name
of project)’. This will ensure that tenders are recognized as such when received and will not be
prematurely opened. Tenderers should be asked to acknowledge in writing receipt of the tender
documents.
 FORM OF TENDER
FOR

PROPOSED DEVELOPMENT

AT

ADDRESS

FOR

CLIENT
To:

Sirs,

1. Having examined the Drawings, Articles of Agreement, Form and Conditions of Contract and
Bills of Quantities relating to the construction and completion of Proposed Development at
Address for Client having visited and examined the site of the proposed works, or caused it
to be visited on our behalf by a competent reliable person and having acquired all requisite
information relating thereto as affecting this Tender, I/WE, the undersigned, hereby offer to
execute complete and maintain the proposed works inclusive of all specialist sub-contracts in
strict accordance with the Contract Documents referred to above for the total sum of
…………..…thirty-nine million thirty-six thousand nine hundred and sixty-four Naira
only (=N=
39,036,964.00Kb)………………………………………………………………………
2. I/WE, undertake to complete and deliver the whole of the works inclusive of all specialist sub-
contracts within ---Twelve (16) --- calendar week reckoned from the Date for Possession of
the site under the forfeiture clause stated in Appendix 1 – To the conditions of Contract as
Liquidated and Ascertained Damages for each week that the work shall remain incomplete
after the expiration of the aforementioned period of time, subject to the conditions of contract
relating to an extension of time.

3. I/WE, also undertake and agree that this offer shall remain open until the expiration of twelve
weeks from the Date of Tender and in the event of our Tender being accepted to enter into a
Contract, within fourteen days of being called upon to do so, for the due execution completion
and maintenance of the said Works in the terms of the Contract documents.

4. I/WE, hereby authorize you, in the event of my/our non-compliance with any of the Conditions
upon which you accept this Tender, to rescind the acceptance of this Tender, without prejudice
to any other rights you may have in respect of such non-compliance.

5. I/WE, understand that you are not bound to accept the lowest or any tender you may receive.

6. I/WE, declare that I/WE, have complied fully with the Instructions to Tenders contained in the
Bill of Quantities and accept all the terms thereof with / without reservation.
Dated this -------------------------------------------------------- Day of ---------------------- 2015

Name of Firm: -------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------

Name of Witness: -------------------------------------------------------------------------------------

Occupation: -------------------------------------------------------------------------------------

Address: -------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------
References
Aje, I. O. and Oke, A. E. (2012). An Evaluation: Contractors’ pre-qualification requirements in
Nigeria. The Quantity Surveyor, 1 (1) 9-19
Ashworth, A. and Hogg, K. (2002). Willis’s Practice and Procedure for the Quantity Surveyor
(11th ed.). London: Blackwell Science Ltd.
Ashworth, A. and Hogg, K. (2007). Willis’s Practice and Procedure for the Quantity Surveyor
(12th ed.). London: Blackwell Publishing Ltd.
Ashworth, A. Hogg, K. and Higgs, C. (2013). Willis’s Practice and Procedure for the Quantity
Surveyor (13th ed.). London: John Wiley & Sons Ltd
Brook, M. (2004). Estimating and tendering for construction work (3rd ed.). London: Elsevier
Butterworth Heinemann.
Oberlender, G. D. (2000). Project Management For Engineering And Construction (2nd ed.).
USA: McGraw-Hill Companies Inc
Ramus, J., Birchall, S. & Griffiths, P. (2006). Contract practice for surveyors (4th ed.).
Oxford: Elsevier Ltd.
QTS 213 - Semester’s Assignment
TRIWISE INC., a private investment firm, has many line of businesses including real estate and
landed property. The firm just acquired a land for the purpose of developing housing facilities for
students’ accommodations along Ede road, Ile-Ife. For the firm to make a right decision in
selecting suitable contractor for the project, it is seeking proposal(s) from professional firms. As
an estimator(s) in training, kindly develop a proposal based on your experience for the project with
the following parameters as a guide for your response to the call.

Activities
1. Has the firm made a right decision to invest in student housing and why?
2. What other landed property option can the firm invest in the choice location and why?
3. What traditional procurement method is the most suitable for students housing option (or
any other option) and why?
4. What alternative procurement method is the most suitable for students housing option (or
any other option) and why?
5. In each of the cases (3) and (4), what will be the most suitable way to select a competent
contractor for the type of procurement method selected?
6. In the procurement option selected, what are the relevant contract documents that are
needed for the award of contract and why?
7. Conditions of contract is an essential document in the award of any contract. Which of the
available forms is the most appropriate for the investment option and why?

Notes:
1. Giving a hypothetical case(s) in your response to each of the questions will be an added
advantage.
2. Class representative is to allocate students into groups.
3. Each group is to answer questions listed above.
4. Submission date is the examination day.