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    University of Tishk: Construction Management Week 2 Module Code: CE 324 Module Credits: 4 By: Awesar Abid

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    kurdish falcon
    1. The document discusses the tendering process for construction projects. It defines what a tender is and explains that tendering involves obtaining offers to complete a project or part of a project. 2. The stages of the tendering process are outlined, including preparation of tender documentation, invitation of tenders, receipt and evaluation of submitted tenders, and awarding of the contract. 3. Key activities in the tendering process are selection of the procurement method, development of a tender list, preparation of tender documents, invitation and submission of tenders, evaluation of tenders, and contract award. Guidelines for the tendering system emphasize thorough investigation of tenderers and realistic quoted rates.

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    University of Tishk: Construction Management Week 2 Module Code: CE 324 Module Credits: 4 By: Awesar Abid

    Uploaded by

    kurdish falcon
    32 views35 pages
    1. The document discusses the tendering process for construction projects. It defines what a tender is and explains that tendering involves obtaining offers to complete a project or part of a project. 2. The stages of the tendering process are outlined, including preparation of tender documentation, invitation of tenders, receipt and evaluation of submitted tenders, and awarding of the contract. 3. Key activities in the tendering process are selection of the procurement method, development of a tender list, preparation of tender documents, invitation and submission of tenders, evaluation of tenders, and contract award. Guidelines for the tendering system emphasize thorough investigation of tenderers and realistic quoted rates.

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    1. The document discusses the tendering process for construction projects. It defines what a tender is and explains that tendering involves obtaining offers to complete a project or part of a project. 2. The stages of the tendering process are outlined, including preparation of tender documentation, invitation of tenders, receipt and evaluation of submitted tenders, and awarding of the contract. 3. Key activities in the tendering process are selection of the procurement method, development of a tender list, preparation of tender documents, invitation and submission of tenders, evaluation of tenders, and contract award. Guidelines for the tendering system emphasize thorough investigation of tenderers and realistic quoted rates.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    32 views35 pages

    University of Tishk: Construction Management Week 2 Module Code: CE 324 Module Credits: 4 By: Awesar Abid

    Uploaded by

    kurdish falcon
    1. The document discusses the tendering process for construction projects. It defines what a tender is and explains that tendering involves obtaining offers to complete a project or part of a project. 2. The stages of the tendering process are outlined, including preparation of tender documentation, invitation of tenders, receipt and evaluation of submitted tenders, and awarding of the contract. 3. Key activities in the tendering process are selection of the procurement method, development of a tender list, preparation of tender documents, invitation and submission of tenders, evaluation of tenders, and contract award. Guidelines for the tendering system emphasize thorough investigation of tenderers and realistic quoted rates.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 35

    University of Tishk

    Construction Management

    Week 2
    Module Code: CE 324
    Module Credits: 4
    By: Awesar Abid

    1
    WHAT IS TENDER?

    2
    Tender is an offer which incorporates
    the sum of money, time and other
    conditions required to carry out the
    contract obligations in order to complete
    a project or a part of it consisting of
    specified works.

    3
    WHAT IS
    TENDERING ?

    4
    Stages of a project

    • Stage 1: inception & feasibility – identifying project


    objectives / set up project brief

    • Stage 2: design – develop further project brief /


    develop concept & schematic design / Undertake
    detailed design & detailing / prepare cost plan & budget

    • Stage 3: tendering – issue tender documents / prepare &


    submit tender / evaluation of tender / award tenders /
    prepare contract documents

    5
    Stages of a project

    • Stage 4: construction – site possession &


    mobilization / undertake procurement fabrication,
    installation, construction / carry out contract admin
    • Stage 5: handover & maintenance – undertake all
    testing, commissioning & training / obtain CF /
    handover project to owner /carry out necessary
    maintenance / Defect rectification / etc

    6
    Tendering
    Will be started after the design complete and
    project budget must be approved
    The process that is used to obtain offers leading
    to a contract between:

    client contractor

    client consultant
    main contractor sub-contractor

    7
    Purpose of tendering process

    • To select a suitable contractor at a time appropriate to the


    situation of the project.

    • To obtain from the contractor selected at the proper time,


    an acceptable tender or offer upon which a contract can be
    let.

    8
    Difference between a contract and a
    tender

    • A tender formally means an invitation to trade under


    the terms of offer.

    • A contract is the term used for when the parties


    have reached agreement.

    9
    General
    TENDERING
    PROCESS

    10
    Tendering process –
    PRINCIPAL ACTIVITIES
    1. Selection of the most preferable or appropriate contract
    procurement method.
    2. Development of tender list
    3. Preparation of tender documentation
    4. Invitation / calling off tender
    5. Preparation and submission of tenders

    11
    Tendering process –
    PRINCIPAL ACTIVITIES (cont’d)

    6. Receipt and opening of tenders


    7. Evaluation of tenders
    8. Acceptance of tender award or award of contract

    12
    Stage 1: Selection of the most preferable or
    appropriate contract procurement method.

    • Traditional contract procurement route


    • Longer time – lead to critical work scheduling
    • Less errors – more precise
    • Fast-track contract procurement route
    • Shorter time
    • Consequences – may be lead to critical error, variation.

    13
    Stage 2: Development of tender list

    • Potential tenderers can directly apply to the


    employer for future works.
    • Employer generate list based on previous dealings
    • The professional team generate their own list and
    recommend to the employer.

    14
    Stage 3: Preparation of tender
    documentation – typical contents
    • Letter of invitation
    • Checklist for submission of tender
    • Articles of agreement
    • Conditions of contract
    • Form of tender
    • Tender specifications
    • Bills of quantities
    • Tender drawings
    • Sample copy of letter of acceptance
    • Sample copy of bang guarantee for performance bond
    • Schedule of day work rates
    • Sample copy bank guarantee for advance payment

    15
    Tendering process

    Stage 1: Stage 2: Stage 3:


    PREPARATION APPROVAL TO DOCUMENTATION
    TENDER

    Stage 6: Stage 5: Stage 4:


    AWARD PROCESSING INVITATION
    CONTRACT

    16
    Stage 1: Preparation

    • Final completion of drawings, specification, measurement /


    take-off process.
    • Choose conditions of contract.
    • Parties involved: architect, engineers, QS, client, project
    manager

    17
    Stage 2: Approval to tender

    • Discussion and decision on type of tender to be used.


    • Selection of tender:
    • Open
    • Selective
    • Negotiate
    • Parties involved: CLIENT, CONSULTANT, PROJECT
    MANAGER

    18
    Stage 3: Documentation

    Contract based on quantities Contract based on tender & specs


     Compilation of:
    • Compilation of:
     Letter of invitation to
    • Letter of invitation to tenderers
    tenderers
    • Articles of agreement / conditions of  Articles of agreement /
    contract
    conditions of contract
    • Form of tender  Form of tender
    • Form of tenderer’s details. i.e:  Form of tenderer’s details.
    contractor’s registration,
    organization background, track i.e: contractor’s registration,
    record (past and present projects) organization background, track
    • Letter of acceptance record (past and present
    projects)
    • Bank and insurance guarantee forms
     Letter of acceptance
    (performance bond)
     Bank and insurance guarantee
    • Bank and insurance guarantee forms
    (advance payments) forms (performance bond)
    • Specifications  Bank and insurance guarantee

    • Bills of quantities forms (advance payments)


     Specifications
    • Relevant drawings
     Summary of tender
     Schedule of rates
     Relevant drawings

    19
    Stage 4: Invitation

    • Based on selection of tendering methods


    • Open / competitive / bid tender – produce tender notice
    • Selective – shot listed contractors will be invited to tender if
    they wish
    • Negotiated – only one contractor is approached- direct entry to
    project

    20
    TENDER NOTICE
    OR NOTICE
    INVITING TENDER

    21
    The Tender Notice is a brief description of the job
    being tendered which is to be published in
    Newspapers and on the Internet.
    The Internet is a very cost effective way of
    publishing the tenders.

    22
    Format of an ideal Tender Notice

    a.Name of the Project.


    b.Name & Address of the Company i. Date on which the Tender
    floating the tender. Document sale commences.
    c.Name of work, materials or j.Date and time up to which
    services. tender documents can be
    obtained.
    d.Place of work location.
    k.The cost of tender
    e.Approximate estimated cost of documents.
    work.
    l. The date and time up to
    f.Earnest Money. which the tenders to be
    g.Period of completion. submitted and are to be
    opened.
    h.Date on which the Tender
    Document sale commences. m.Specification.
    n.Eligibility Criterion.

    23
    Stage 5: Processing
    • Received tender submitted by contractor
    • Tender assessment / evaluation
    • Completed tenders are received
    • Arithmetical check
    • Reasonable tender sum
    • Reasonable completion time
    • Capabilities of tenderers under considerations
    • Tender recommendation / report – tender
    board

    24
    Guidelines to fulfill in the Tender
    System
    The capacity, past credentials and financial
    status of the tendered is thoroughly
    investigated before awarding the contract.
    These aspects should be commented in detail
    along with the tender documents.
    The rates should be quoted in the numbers
    and words without any corrections. To take
    advantage of any possible increase in
    statutory taxes & duties, the tax component
    such as excise duty, Sales Tax, Works
    Contract Tax, etc. should be clearly indicated.

    25
    Tenderers should not quote many special conditions
    as some of them may have financial implications, did
    this can be added to your quoted cost. Also it
    creates confusion and creates room for manipulative
    forces.
    The rates quoted for individual items should be
    realistic and should not be abnormal and unworkable.
     

    26
    Stage 6: Award contract

    • Pre-award meeting with contractors – validation of


    lowest complying bid
    • Validate lowest bid - Pre-contract meeting with
    contractor for contract signing
    • Approval by tender board / treasury (tender
    exceeds RM10 mill.) – an acceptance of tender form
    is issued to tenderer , signed by the authorised
    officer

    27
    TENDER PROCESS
    FOR CONTRACTOR

    28
    Tendering process

    Stage 1: Stage 2: Stage 3:


    Decision to Determine Preparation of
    tender basis of cost estimates
    tender

    Stage 6: Stage 5:
    Stage 4:
    Submissio Conversion
    n of Commercial
    of estimate
    tender appreciation
    to tender

    29
    Stage 1: Decision to tender

    • Receipt of tender documents


    • Pre-tender data sheet
    • Decision to tender
    • Consider implications of:
    • Bonds
    • Warranties
    • Parent company
    • Guarantees
    • Funding

    30
    Stage 2: Determine basis of tender

    • Abstract materials and subcons


    • Sent out enquiries
    • Consider construction methods / prepare method statement
    • Design temporary works / consider alternatives
    • Prepare outline programme
    • Check major quantities
    • Identify restrictions
    • Visit site and compile site report
    • Campaigning meeting (designating areas responsibilities)

    31
    Stage 3: Preparation of cost estimate

    • Calculate recurrent rates using:


    • Operational
    • Unit rates
    • Man-hours estimating
    • Analyse and check subcontractors’ quotations
    • Price prelims / general items (in association with
    members of the team
    • Prepare summary sheets

    32
    Stage 4: Commercial appreciation

    • Tender committee meeting part 1-


    • Review:
    • Method
    • Programme
    • Technical and commercial risks
    • Cash flow and finance
    • Use of own plant
    • Competition
    • Commercial opportunities
    • Economic climate
    • Check prelims against historical cost data

    33
    Stage 5: Conversion of tender
    estimate to tender bid

    • Tender committee meeting – part 2


    • Calculate ‘spread’ and add to estimate

    34
    Stage 6: Submission of tender

    • Submit in format required


    • Organize delivery

    35

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