DECISION TO

TENDER

Lara Tookey

Before we can begin to consider how

much our resource costs are likely to be,
and what our tender price should be, we
need to actually have been asked by a
client to submit a tender price.
The purpose of any tendering procedure is
to select a suitable contractor, at a time
appropriate to the circumstances, and
obtain from them at the proper time, an
acceptable tender of offer upon which a
contract can be let.
Lara Tookey

There are a number of ways in which a

client can ask a contractor to tender.
Information may be issued to the
contractor by:
Letter containing a description of work
Drawings and Specifications
Schedules of Rates
Schedules of Quantities

Lara Tookey

The method of providing information is

linked to the way in which the price
(tender) is required this is usually
referred to as the procurement route.
This is where the client determines the
way in which the information will be
issued, the conditions of contract which
will govern the contract and the way in
which the price will be obtained (form of
tender).
Lara Tookey

Forms of Tender can include:

Fixed Price
Measurement based, i.e. Schedule of
Quantities / Schedule of Rates
Cost reimbursement
Design and Build
Management or Construction
Management contracts

Lara Tookey

We should also note at this point that

clients can elicit tenders from contractors
either through:
Competitive Tendering
Most commonly used
Ensures commercial
competition
And best value for client
Selected contractors invited
to tender
Ensures accountability (Local
Authorities)

Open Tendering
Essentially free for all
Very rarely used
High risk to both client and
contractors

Lara Tookey

Whatever the method, the

same information is provided:
Specific Project Information:

location of project and description of works

date for commencement of the works
date for completion
details of phasing or sectional completion (if
required)
access problems
operational space restrictions
ground conditions
health & safety issues
Lara Tookey

 Form of Contract & Contract

Particulars:

form of contract to be used

provisions for liquidated and ascertained
damages
any proposed amendments to standard forms
of contract
details of interim payments
retention considerations
bonding requirements
details of insurances
departures from Standard Method of
Measurement
provisions for fluctuations (if lengthy contract
period)
Lara Tookey

Obviously the amount of information and

the format in which it is provided will
depend on the size, nature and complexity
of the project being undertaken.
What is important to note, however, is
that there are a number of important
items that the contractor needs to be
aware of and which will inform their
decision.

Lara Tookey