lecture notes - 3 - tendering process

CE 6010 – CONSTRUCTION CONTRACTS &

SPECIFICATIONS

• TENDERING PROCESS

• TENDER SCOPE FINALIZATION

• SINGLE TENDER PACKAGE OR MULTIPLE??

• MATERIAL SUPPLY ONLY?

• LABOUR ONLY?

• SUPPLY & INSTALLATION?

• DESIGN, SUPPLY & INSTALLATION (EPC/

DESIGN- BUILD)

• MODE OF PRICING

• LUMP SUM ? / UNIT RATES? / COST

PLUS??


SPECIFICATIONS


• OPEN TENDER – EVERYONE INVITED

• DISADVANTAGES

• CAPABILITY OF LOWEST BIDDER NOT

VERIFIED

• RESULTS IN VARYING / UNRELIABLE

PRICING

• MUCH TIME REQUIRED FOR EVALUATION

& SELECTION


SPECIFICATIONS


• PRE – SELECTION / PRE QUALIFICATION

OF BIDDERS

• IDENTIFY CAPABILITY REQUIREMENT

• FINANCIAL /TECHNICAL/ MANAGEMENT

• PRESENT WORK LOAD

• PAST PERFORMANCE IN SIMILAR JOBS

• FINANCIAL STRENGTH

• SPECIAL EQUIPMENT AVAILABILITY

• REQUIRED ENGINEERING / MANAGEMENT

SKILLS WITHIN THE ORGANIZATION


SPECIFICATIONS


• TENDER DOCUMENT PREPARATION

• TENDER SCOPE OF WORKS

• DRAWINGS

• SPECIFICATIONS

• BILL(S) OF QUANTITIES

• CONDITIONS OF CONTRACT

• OTHER PROJECT REQUIREMENTS

• ANY OTHER RELEVANT INFORMATION


SPECIFICATIONS


• CALLING FOR BIDS

• NOTICE INVITING TENDER (NIT) OR REQUEST

FOR PROPOSAL (RFP)

• ADVERTISEMENT IN NEWS PAPERS / TRADE

JOURNALS / OWNER’S WEB SITE


SPECIFICATIONS


• NIT / RFP

• BRIEF DESCRIPTION OF WORK

• PLACE OF WORK

• NAME OF TENDERING AUTHORITY

• APPRX VALUE OF WORK PUT TO TENDER

• WHERE AND UP TO WHEN TENDER

DOCUMENT CAN BE COLLECTED AND THE

FEES

• DATE OF SUBMISSION OF BID / TENDER


SPECIFICATIONS


• INSTRUCTIONS TO TENDERERS

• LIST OF BIDDING DOCUMENTS

• VALUE OF EARNEST MONEY DEPOSIT (EMD)

• TENDER VALIDITY PERIOD

• SITE VISITS AND PRE – BID MEETINGS

• ISSUE OF CLARIFICATIONS/ ADDENDUMS /

CORRIGENDUMS

• HOW TO PRICE – INCLUSIONS & EXCLUSIONS

• HOW TO FILL? / ERRORS / DISCREPANCIES

• ADDITONAL INFORMATION TO BE FILLED IN

GIVEN FORMATS / SCHEDULE


SPECIFICATIONS


• INSTRUCTIONS TO TENDERERS

• WHERE & WHEN TO SUBMIT

• HOW TO SUBMIT – SINGLE COVER / TWO COVER

TENDER

• OPENING OF TENDER – CLOSED OR IN

PRESENCE OF BIDDERS

• INCOMPLETE INFORMATION / ERRORS IN

TENDERS

• TENDER EVALUATION CRITERIA & PROCESS FOR

SELECTION AND AWARD


SPECIFICATIONS


• SITE VISITS / PRE-BID CLARIFICATION

MEETINGS

• ALL BIDDERS INVITED TO PARTICIPATE

THOUGH NOT MANDATORY

• SITE VISIT – TO ASSESS WORKING

CONDITIONS / ACCESS / OTHER LIKELY

CONSTRAINTS

• PRE – BID MEETINGS – TO EXPLAIN THE

SCOPE AND PROVIDE ANSWERS TO

BIDDERS’ TECHNICAL & COMMERCIAL

DOUBTS


SPECIFICATIONS


• ISSUE OF ADDENDUMS/ CORRECTIONS

• ADDITIONAL INFORMATION/

CLARIFICATIONS PROVIDED TO BIDDERS TO

FACILITATE PROPER PRICING

• ISSUED IN WRITING AND TO ALL

PARTICIPATING BIDDERS

• USUALLY INFORMATION PROVIDED IN

ADDENDUM / CLARIFICATIONS SUPERCEDE

THE CORRESPONDING EARLIER

INFORMATION


SPECIFICATIONS


• TENDER SUBMISSION & OPENING

• AS STIPULATED IN THE TENDER

DOCUMENTS

• AT THE PLACE, DATE & TIME STIPULATED

• SINGLE / MULTIPLE COVERS

• TECHNICAL & COMMERCIAL / FINANCIAL &

PRICING

• PUBLIC OPENING & ANNOUNCEMENT OF BIDS


SPECIFICATIONS


• WITHDRAWAL OF TENDERS BY BIDDERS

• USUALLY NOT PERMITTED AND BIDDER

FORFEITS EMD

• CAN BE DONE AFTER INITIAL TENDER

VALIDITY PERIOD IS COMPLETED

• IN RARE INSTANCES WITHDRAWAL

PERMITTED IF BIDDER CAN DEMONSTRATE

GENUINE ERROR IN SUBMISSION

RENDERING THE BID UNVIABLE


SPECIFICATIONS


• TENDER EVALUATIONS & CORRECTIONS

• CHECK WHETHER SUBMISSION IS

COMPLETE – ALL REQUIRED INFORMATION

FILLED IN

• DISCREPANCIES IN RATES BETWEEN

NUMERIC & WORD

• CORRECTIONS

• TOTALLING ERRORS


SPECIFICATIONS


• POST TENDER CLARIFICATIONS /

NEGOTIATIONS

• DISCUSSIONS / CLARIFICATIONS TO ENSURE

WHETHER BIDDERS HAVE CORRECTLY

UNDERSTOOD CONTRACT REQUIREMENTS

• NEGOTIATIONS ON

• HIGH / LOW RATES

• OTHER TERMS & CONDITIONS PROPOSED BY

BIDDER


SPECIFICATIONS


• LETTER OF INTENT (LOI) / LETTER OF

AWARD OR ACCEPTANCE (LOA)

• TO BE ISSUED BY DESIGNATED AUTHORITY

• TO COMMUNICATE CLEAR ACCEPTANCE OF

OFFER AND ANY OTHER CHANGED TERMS

ARRIVED AT DURING NEGOTIATIONS

• INSTRUCTIONS TO PROCEED WITH THE

WORK

• ANY LOI /LOA WITH QUALIFYING TERMS NOT

DEEMED TO BE A CLEAR ACCEPTANCE


SPECIFICATIONS


• CONTRACT AGREEMENT

• IN GOVERNMENT CONTRACTS USUALLY IN A

PRE DEFINED FORMAT INCLUDED IN THE BID

DOCUMENTS

• BRIEFLY DESCRIBES SCOPE, CONSIDERATION,

TIME AND ANY OTHER MAJOR TERMS

• ON A STAMP PAPER AND SIGNED BY

AUTHORIZED SIGNATORIES FROM BOTH

PARTIES

• NOT MANDATORY FOR CONTRACTS BETWEEN

PRIVATE PARTIES

CE 6010 – CONSTRUCTION CONTRACTS & SPECIFICATIONS

• REQUIREMENTS FOR AN

ENFORCEABLE CONTRACT

CONTRACT

FREE CONSENT

OFFER & ACCEPTANCE (MEETING OF MINDS)

MUTUAL & LAWFUL CONSIDERATION

LEGALLY BOUND

CERTAINTY & POSSIBILITY OF PERFORMANCE

PARTIES SHOULD BE COMPETENT

lecture notes - 3 - tendering process

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