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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??

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
OPEN TENDER EVERYONE INVITED
DISADVANTAGES
CAPABILITY OF LOWEST BIDDER NOT
VERIFIED
RESULTS IN VARYING / UNRELIABLE
PRICING
MUCH TIME REQUIRED FOR EVALUATION
& SELECTION

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
TENDER DOCUMENT PREPARATION

TENDER SCOPE OF WORKS


DRAWINGS
SPECIFICATIONS
BILL(S) OF QUANTITIES
CONDITIONS OF CONTRACT
OTHER PROJECT REQUIREMENTS
ANY OTHER RELEVANT INFORMATION

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
CALLING FOR BIDS
NOTICE INVITING TENDER (NIT) OR REQUEST
FOR PROPOSAL (RFP)
ADVERTISEMENT IN NEWS PAPERS / TRADE
JOURNALS / OWNERS WEB SITE

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
TENDER EVALUATIONS & CORRECTIONS
CHECK
WHETHER
SUBMISSION
IS
COMPLETE ALL REQUIRED INFORMATION
FILLED IN
DISCREPANCIES
IN
RATES
BETWEEN
NUMERIC & WORD
CORRECTIONS
TOTALLING ERRORS

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
POST
TENDER
NEGOTIATIONS

CLARIFICATIONS

DISCUSSIONS / CLARIFICATIONS TO ENSURE


WHETHER BIDDERS HAVE CORRECTLY
UNDERSTOOD CONTRACT REQUIREMENTS
NEGOTIATIONS ON
HIGH / LOW RATES
OTHER TERMS & CONDITIONS PROPOSED BY
BIDDER

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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

CE 6010 CONSTRUCTION CONTRACTS &


SPECIFICATIONS
TENDERING PROCESS
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


PARTIES SHOULD BE
COMPETENT
FREE CONSENT
OFFER & ACCEPTANCE
(MEETING OF MINDS)
CONTRACT

MUTUAL & LAWFUL


CONSIDERATION
LEGALLY BOUND
CERTAINTY & POSSIBILITY
OF PERFORMANCE

REQUIREMENTS FOR AN
ENFORCEABLE CONTRACT