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PROFESSIONAL PRACTICE I [QSD 289]
Mohammad Nas Nasha haru rudi dine ne Shuib Shuib Nasharudine
1
SECTION
DESCRIPTIONS
1
INTRODUCTION
2
WHAT IS TENDER?
3
WHAT IS TENDERING?
4
DIFFERENCE BETWEEN TENDER & CONTRACT
5
TENDER NOTICE
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OPEN TENDER
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SELECTIVE TENDER
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DIRECT NEGOTIATED TENDER
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TENDER VALIDITY PERIOD
10
TENDER SUBMISSION
11
TENDER OPENING PROCESS
LINKS
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1.
The objective of tendering is to select a sui uita tabl ble e co cont ntrrac acto torr at an ap appr prop opri riat ate e ti time me acce cep pta tab ble of offe ferr and obtain from him him an ac upon which a contract can be let.
2.
enera y ere ree used: a. Open Tenderin endering g b. Selective Tendering c. Negotiate Negotiated d Tend Tender er
ypes o
en er ng
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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 .
21
Tendering is the management and commercial function of determining the tender based upon the estimate and other details prepared by contractor’s estimator and other personal.
23
People often use the same terms for different things and different terms for the same thing. The term tender formally means an invitation to . term used for when the parties have reached agreement.
25
Format of ideal Tender Notice
Name of the Project.
Name & Address of the Client.
Name of work, materials or services.
Place of work location.
Period of completion.
Date on which the Tender Document sale commences.
Date and time up to which tender documents can be obtained.
The cost of tender documents.
The date and time up to which the tenders to be submitted and are to be opened. 27
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Base on degree of competition:
Competitive Tendering i. Open Tender / Open Competition ii. Selective Tender / Selective Competition
Negotiation
Other Variables: continuity & stage or time of calling tender i. Serial Contract ii. Term Contract iii. Fast-Tracking Fast-Tracking
40
Method of Selection Negotiated Tendering
Competitive Open Tendering
Others
Selective Tendering
Serial Contract Pre-Qualification 41
Factors to be considered when deciding on the method:
The building type & size
Nature & complexity of projects
Method of construction
Extent of completion of design document
Time available before a start on site
Time required to complete the project
Financial resources of the client
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Method of Selection Negotiated
Competitive Open
Selective
Advertisement
Invitation to Bid
Choose Contractor Select Basis for Payment Sign Contract Late tenders returned
Specified Tendering Period Tender Validity Period
Tender Submitted + Tender Deposit Tenders Opened Evaluate Tenders 47
Tender Closing Date
Reject all Tenders Accepted Tender Notify other Tenderers
Open to all eligible contractors Invitation to tenders through the mass media (e.g. general press) A tender that received a result of competitive tender. Maximum competition A tender document fee is required from each contractor. invit ita ati tion on of te tend nde er by pu publ blic ic The system of inv advertisements through Newspapers or the Internet in the most open public manner is called the Open Open Tender Tender System. is most effective way of obtaining This competitive rates. rates.
53
Advantages of Open Tendering No favoritism
Introduction to new firms.
Maximum competition.
Disadvantages of Open Tendering Is the lowest firm capable? Is it financially secure? Experience in tender submission? tendering increased as number of Cost of ten tenderer increases 54
Obtaining Competitive Rates
Lowest Price
Accountability
Competitive Tender
Open To All Contractors
ADVANTAGES
Competition
No. Favoritism
55
Experience in Construction?
Problems of Selecting the Best Tender
Is the Lowest Tenderers Capable?
Is it Financially Secure?
DISADVANTAGES
Higher Cost of Administration: Duplicating Documents
About Quality
Experience in Tender Submission?
56
As the name implies, a list of selected tenderers is pro rodu duc ced as a basis for this method of obtaining tenders.
The design team together with Client will normall de dete term rmin ine e wh whic ich h co cont ntra ract ctor orss wi will ll be invited to tender.
Design team will take into account contractors’ track records, business record, financial stability and capacity to carry out project.
58
Most Effective Way Obtaining The Best Tender
Com lete Design is Necessary
Fulfilled Certain Criteria
Limited Number of Contractors
CHARACTERISTICS
To Ensure Accountability
6 Tenderers
Invitation Through Invitation Letter
59
Obtaining The Best Tender
nanc a y Secure
Accountability
Obtaining Lowest Price
Quality
ADVANTAGES
Tender Submission
Cost of Tendering reduced
60
Favoritism during selection of Tenderers
Higher Cost
DISADVANTAGES
Limited to Certain Contractor Only
Collusion during tender
61
Series of neg Series negoti otiati ation on will take place between the th e cl clie ien nt an and d se sellect cte ed co cont ntrrac acto torr. Norm Normal ally ly under design and build procurement.
In this method the price to be paid in return of contractor.
This This , obviou obviously sly,, doe oess no nott pr pro ovi vide de th the e ow owne nerr with a comparative prices. prices.
63
Though the cost of a work will be higher in this method, an owner may expect some advantages from employing a par partic ticula ularr con contra tracto ctorr who whose se policies and methods are known and who has in the past proved capable of fulfilling his obligations.
The higher cost may be offset by better quality, early completion, and smooth administration. administration .
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The negotiated construction bid procedure can be adopted to the owner’s advantage if the chosen contractor is one in which the Owner and the Engineer have confidence, and which is of known integrity and reliability.
Moreover, the work to be carried out is within his special scope and experience. experience.
65
Most Effective Way Obtaining The Best Tender
Com lete Design is Necessary
Fulfilled Certain Criteria
Only negotiated with single contractor
CHARACTERISTICS
To Ensure Accountability
6 Tenderers
Invitation Through Invitation Letter
66
Obtaining The Best Tender
nanc a y Secure
Smooth in Administration
Early Completion
Better Quality
Work carried out within scope and experience
ADVANTAGES
Cost of Tendering reduced
67
Favoritism
Public Accountability Accountability are Rarely Satisfied
Higher Cost
DISADVANTAGES
Limited to Certain Contractor Only
not provide the owner with a comparative prices 68
QUANTITY SURVEYING: PRACTICE & ADMINISTRATION ADMINISTRATION (1983), DENNIS F TURNER, U.S.A
