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1.0 Introduction. 2.0 The Single Stage of Selective Tendering Process Practice in UK. 2.1 Introduction. 2.2 The List of Tenderers. 2.3 Tendering procedure. 2.3.1 Preliminary Enquiry. 2.3.2 The Tender Documents. 2.3.3 Time for Tendering. 2.3.4 Tender Compliance. 2.3.5 Withdrawal of tender before acceptence. 2.4 Assessing Tenders and Notifying Results. 2.5 Examination and Adjustment of The Priced Bills. 2.6 Negotiated Reduction of Tender. 3.0 The Single Stage of Selective Tendering Process Practice in Malaysia. 3.1 Introduction. 3.2 Tender Documents. 3.3 Advertisement. 3.4 Sale of Tender Documents. 3.5 Tender Deposits. 3.6 Closing and Opening of Tenders. 3.7 Evaluation of Tenders. 3.8 Selection of Successful Bidder. 3.9 Registration Requirement of Contractors. 3.10 Central Purchase of Supplies through Federal Central Contracts or Panel Contracts. 3.11 Agency Procurement Boards. 3.12 Letter of Intent. 3.13 Letter of Acceptance. 3.14 Formal Contract. 4.0 Conclusion. 5.0 References. 6.0 Appendix

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1.0 Introduction Tendering is the process of making an offer, bid or proposal, or expressing interest in response to an invitation or request for tender. Organisations will seek other businesses to respond to a particular need, such as the supply of goods and services, and will select an offer or tender that meets their needs and provides the best value for money. Tender request documents also referred to as invitations to tender, Requests for Tender (RTF), Requests for Proposal (RFP) etc outline what is required, that is, what the requesting organisation's needs are. These documents also outline the particular requirements, criteria, and instructions that are to be followed. Future tenders are generally widely advertised to offer opportunities to a number of suppliers, encourage competition and provide a greater pool of offers to select from. Interested suppliers will then prepare a tender, the documents that outline the offer that they are making, and will include pricing, schedules as well as their eligibility for the project or procurement. They will outline their advantage over competitors, provide information on qualifications, competencies and experience. Further they have to demonstrate how their bid offers the best value for money. The submitted tenders are then evaluated with regard to defined criteria. In a normal tendering situation, this process should be conducted fairly and honestly, and in a manner that is free from bias or favour. The offer that best meets all of the requirements outlined in the request, and provides value for money should win the contract. The tendering process is generally utilised for procurements or contracts involving substantial amounts of money. Tendering is utilised by: Government departments, offices and agencies Private sector companies and businesses Overseas markets and businesses While the concept of tendering may seem daunting at first, it can be easily tackled by having a plan of attack'. When becoming involved in a tendering process, it is important to understand your business suitability for the project, whether your business current situation will allow for you to tender, as well as your ability to manage the contract if you are successful in winning the tender. By understanding these points and ensuring you can demonstrate that you are able to meet the criteria and offer a competitive bid, you will increase your chances of success. Basically, there are two most commonly used methods of tendering are single-stage selective tendering or two-stage selective tendering. Both involve the invitation of tenders from firms on a pre-approved or ad-hoc list, chosen because they meet certain minimum standards in general criteria such as financial standing, experience, capability and competence.

2.0 The Single Stage of Selective Tendering Process Practice In UK. 2.1 Introduction. The general principles of the Code are fully supported by the Department of the Environment and take into account the relevant recommendations of the National Economic Development Office (NEDO) report 'The Public Client and the Construction Industries', the report 'The Placing and Management of Contracts for Building and Civil Engineering Work' (The Banwell Report), 'Action on the Banwell Report' and 'Constructing the Team' (The Latham Report 1994). Besides that, good tendering procedure demands that the contractor's tendered price should not be altered without justification. Difficulties have arisen when an examination of the priced bills revealed errors or a discrepancy between these prices and the tender figure. The Code lays down, in Section6, alternative methods of dealing with this situation before the contractor's offer is accepted. The first alternative does not permit the correction of errors in priced bills of quantities, the second does. Finally, it should be a condition of tender that obvious errors in pricing or significant errors in arithmetic discovered before the acceptance of the contractor's tender should be dealt with in accordance with one of the alternatives in Section 6 of this Code. 2.2 The List of Tenderers. Basically, a contractor is to be selected under a competitive tendering procedure, a short list of suitable tenderers should be drawn up either from the employer's approved list of contractors or from an ad hoc list of contractors. It should be appreciated that, because of the cost of preparing tenders, the larger the tender lists become the greater will be the cost of abortive tendering, and this will be reflected inhigher building prices. Besides that, the list of the tenderers must contain not more than six names for the tendering process. It also be paid to the amount of work demanded of tenderers in order to formulate their bids and where this involves extensive quantification, specification, specialisation and/or calculation the maximum number of tenderers should be not more than four. Moreover, there are some of requirement during the process to evaluating the tenderers that must be considered such as: The firm's financial standing and record. Whether the firm has had recent experience of building at the required rate of completion over a comparable contract period The firms general experience, skill and reputation in the area in question Whether the technical and management structure of the firm including the management of sub-contractors is adequate for the type of contract envisaged The firms competence and resources in respect of statutory health and safety requirement
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The firms approach to quality assurance systems Whether the firm will have adequate capacity at the relevant time.

Then, the object of selection is to make a list of firms, any one of which could be entrusted with the job. If this is achieved, then the final choice of contractor will be simple the firm offering the lowest tender. Only the most exceptional cases justify departure from this general recommendation.

2.3 Tendering procedure. 2.3.1 Preliminary Enquiry. In order that contractors may be able to decide whether they will tender, and to anticipate demands on their tendering staff, each firm should be sent, and should reply promptly to, a preliminary invitation to tender that know as 'Preliminary Enquiry for Invitation to Tender'. Then, it is suggested that an appropriate period of time between the preliminary enquiry and the despatch of tender documents is 4 to 6 weeks, although in some instances a period of 3months would not be unreasonable. In cases beyond 3months the preliminary invitation should be confirmed a month before tenders are invited. a contractor has signified initial agreement to tender it is in the best interests of all parties that such acceptance should be honoured.If in exceptional circumstances a contractor has to withdraw his acceptance he should give notice ofthis intention before the issue of tender documents. If for any reason this is not possible, notice should be given not later than two working days after receipt of the tender documents. Moreover, after the latest date for the acceptance of the preliminary invitation the final short list of tenderers will be selected. All firms should be notified promptly whether or not they have been included in the tender list. 2.3.2 The Tender Documents. Basically, on the day stated in the preliminary invitation all tender documents should be available for collection or despatched to the tenderers by first class post. It was suggested 'Formal Invitation to Tender' and for suggested 'Form of Tender'. The conditions of tendering should be absolutely clear sothat all tenders are submitted on the same basis. The contract period should be specified in the tender documents and tenderers should be required to make offers based on the same period of completion in order to limit competition to price only. Then, it is recognised that the terms of the standard forms are not mandatory and that the employer and his professional advisers may alter them at their discretion, the NJCC believes that alterations to the standard forms impede the efforts being made towards achieving greater standardisation ofbuilding procedures. The NJCC is firmly of the opinion that if alterations to the standard forms have to be made it is essential in the interests of good practice and of economic building that they be kept to an absolute minimum. Besides that, the tenderer's attention should be specifically drawn in the Preliminary Invitation to Tender to any alterations to be made to the standard form of contract and, where appropriate, reasons should be given, sothat the implications of such amendments may be considered by the tenderers prior to
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acceptance of the invitation to tender; and sominimise the risk of subsequent queries at tender stage which may result in an extension ofthe tender period. 2.3.3 Time for Tendering. Generally, the time allowed for the preparation of tenders should be determined in relation to the size and complexity of the job. Inadequate tendering time can lead to mistakes and the client may not obtain the most competitive prices. A minimum of four working weeks (20 working days) should normally be allowed. Major projects, plan and specification tenders, works having a significant non-nominated specialist content or other special circumstances may well require a longer period. The tender period must be sufficient to enable the tenderer to obtain competitive quotations for the supply of materials and for the execution of works to be sub-let. The latest time for submission should be specified as an hour of a day and should be chosen to allow as short a time as possible to elapse before opening the tenders. Tenders received after time should not be admitted to the competition. Then, if bills of quantities are issued to tenderers in sections, or any supporting or relevant documentation issued at a later stage in the tendering period, the date for the return of tenders should be extended with the full tendering period calculated from the date of issue of the final information. Sufficient time must be given to allow tenderers to comply with the requirements of the Construction (Design and Management) Regulations 1994. 2.3.4 Tender Compliance Basically, if a tenderer considers that any ofthe tender documents are deficient in any respect and require clarification, or contain unacceptable alterations to the standard form of building contract not previously set out in the Preliminary Invitation to Tender he should inform the issuing authority or the architect with a copy to the quantity surveyor as soon as possible and preferably not less than ten working days before the tenders are due. If it is decided to amend the documents the issuing authority or architect should inform all tenderers and extend the time for tendering if necessary. Then, the employer is prepared to receive alternative offers varying any aspect of the project specifications including an alternative contract period all tenderers should be notified accordingly. The alternative offer, which the employer may reject, should be supported by a fully specified and priced buildup. Moreover, a tenderer who otherwise submits a qualified tender should be given the opportunity to withdraw the qualifications to produce a compliant tender; if he fails to do so his whole tender should be rejected if it is considered

that such qualifications afford the tenderer an unfair advantage over other tenderers. 2.3.5 Withdrawal of tender before acceptence. Based on English law a tender may be withdrawn at any time before its acceptance. Under Scot slaw, if the provision for the tender to be withdrawn at any time before its acceptance is to be available, the words unless previously withdrawn should be inserted in the tender after the words this tender remains open for consideration.... referring to the tenders issued in Scotland by the Department of the Environment and for suggested Form of Tender. 2.4 Assessing Tenders and Notifying Results Generally, tenders should be opened as soon as possible after the time for receipt of tenders. The lowest tenderer should be required to submit priced bills of quantities as soon as possible and in any case within four working days. Tenderers should be informed that failure to comply with this requirement may render the tender liable to rejection. The priced bill of quantities, contained in a sealed, separate envelope, endorsed with the tenderers name, should be submitted at the same time as the tender. Besides that, it is important that all but the lowest three tenderers should be informed immediately that their tenders have been unsuccessful, as this information is critical in relation to a contractors strategic tender planning. In order to serve the employers interests in the event of the lowest tenderer withdrawing his offer, the second and third lowest tenderers should be informed that their tenders were not the most favourable received but that they will be approached again if it is decided to give further consideration to their offers. They should subsequently be notified at once when adecision to accept a tender has been taken. Moreover, a contract must not be entered into nor works started on site until satisfaction has been obtained on the firms competence and resources in respect of statutory health and safety requirements. Once the contract has been let every tenderer should be supplied with a list of the firms who tendered in alphabetical order and a list of the tender prices in ascending order of value. 2.5 Examination and Adjustment of The Priced Bills. Generally, the examination of the priced bills of quantities supporting the tender under consideration should be made by the quantity surveyor who should treat the document as confidential, on no account should any details of the tenderers pricing be disclosed to any person, other than the architect or other appropriate consultant, except with the express permission of the tenderer. Moreover, the object of examining priced bills is to detect errors in computation of the tender. If the quantity surveyor finds such errors, he should report
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them to the architect who, in conjunction with the employer, will determine the action to be taken under whichever is appropriate of the alternatives set out below and referred to in the Formal Invitation to Tender and the Form of Tender. Finally, when a tender is found to be free of error, or the tenderer is prepared to stand by his tender in spite of error, or a tender on amendment is still the lowest, this should be recommended to the employer for acceptance.

Alternative 1 If the tenderer should be given details of such errors and afforded an opportunity of confirming or withdrawing his offer. If the tenderer withdraws, the priced bills of the second lowest should be examined, and if necessary this tenderer be given a similar opportunity.An endorsement should be added to the priced bills indicating that all rates or prices excluding preliminary items, contingencies, prime cost and provisional sums inserted there in by the tenderer are to be considered as reduced or increased in the same proportion as the corrected total of priced items exceeds or falls short of such items. This endorsement should be signed by both parties to the contract. Alternative 2 Basically, the tenderer should be given an opportunity of confirming his offer or of amending it to correct genuine errors. Should he elect to amend his offer and the revised tender is no longer the lowest, the offer of the firm now lowest in the competition should be examined. If the tenderer does amend his tender figure, and possibly certain of the rates in his bills, he should either be allowed access to his original tender to insert the correct details and to initial them or be required to confirm all the alterations in a letter. If in the latter case his revised tender is eventually accepted, the letter should be conjoined with the acceptance and the amended tender figure and the rates in it substituted for those in the original tender. 2.6 Negotiated Reduction of Tender Generally, the NJCC strongly deplores any practice which seeks to reduce any tender arbitrarily where the tender has been submitted in free competition and no modifications to the specification, quantity or conditions under which the work is to be executed are to be made, or to reduce tenders other than the lowest to a figure below the lowest tender. Besides that, the tender under consideration exceed the employers budget the recommended procedure is for a reduced price to be negotiated with the tenderer, based on agreed changes to the specification or the quantity of work. The basis of negotiations and any agreements made should be fully documented. Only when these negotiations fail should negotiations proceed with the next lowest tenderer. If these
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negotiations also fail, similar action may be taken with the third lowest tenderer.If all these negotiations fail, new tenders may be called for.

3.0 The Single Stage of Selective Tendering Process Practice in Malaysia. 3.1 Introduction Ministries and Departments are required to initially prepare tender specifications. For this purpose, a technical committee needs to be formed. Specifications should be as detail as possible to give the bidders a clear idea of what is required or expected. The specifications drawn are functional or performance based although technically detailed specifications are sometimes used. Compliance to acceptable international standards or their equivalent may also be included in the specifications. However, tailored specifications to suit any brand or country are strictly forbidden. The system provides for an objection from potential bidders, a period of 14 days from the date of issue of tender documents on any tailored specifications for local tender and 28 days for international tender. 3.2 Tender Documents. Tender documents are prepared and distributed at a cost, the minimum being RM50. The contents of the tender documents include general and specific terms and conditions, specifications, a copy of agreement, price schedule, delivery period, objection period and the scope of works expected. 3.3 Advertisement. All tenders are advertised in at least one local daily in the Malay language. International tenders must be advertised in at least two local dailies i.e one in the Malay language and one in the English language. Procurement opportunities can also be accessed through the procuring agencies websites, MyPROCUREMENT portal (http://myprocurement.treasury.gov.my) and MyGovernment portal (www.malaysia.gov.my). Bidders are given a submission period of not less than 21 days for local tenders. For international tenders the submission period may not be less than 56 days. 3.4 Sale of Tender Documents. Sale of tender documents may commence from the date of publication of advertisement in the dailies. Only contractors fulfilling the local registration requirement may purchase tender documents for local tenders. In the case of international tender, supplies and services contractors are exempted from the local registration requirement. However, works contracts require foreign contractors to register with the CIDB. The requirement to register with CIDB is mandatory for all contractors dealing with the construction industry in Malaysia under an Act of Parliament.

3.5 Tender Deposits. Local suppliers and contractors registered with the Government are exempted from tender deposits. However, international bidders are required to furnish a tender deposit ranging from RM60,000 for bids below RM5 million, to RM 1 million for bids exceeding RM30 million for supplies and services. For works contracts, bidders are required to furnish tender deposits ranging from RM60,000 for contracts below RM10 million, to RM 1 million for contracts exceeding RM100 million. 3.6 Closing And Opening of Tenders. The tender advertisement stipulates the precise date and time of closing and the address to which all tenders must be sent. The tenders may be sent by post or dropped into boxes specially made available for this purpose. Tender proposals by bidders should include the technical and financial proposals prepared separately in two copies and sealed in separate envelopes to facilitate scheduling and independent evaluation. A Tender Opening Committee comprising of senior government officers will open and schedule all the tenders and prepare a schedule of prices quoted. All tenders will be accorded a serial number and the name of bidders will be omitted to enable fair, just and independent evaluation of tenders by the Technical and Financial Evaluation committees. 3.7 Evaluation of Tenders. Evaluation committees will evaluate all tenders based on the criteria set in the tender document. Evaluation is normally done by two separate committees i.e. Technical Evaluation Committee and Financial Evaluation Committee. The evaluation of both committees will result in the ranking of tenders received and the tender secretariat will apply the pre-determined weightage for the final evaluation of all tenders. This tender evaluation report will then be submitted to the Procurement Boards of Ministries/Departments (Agency Procurement Boards) for consideration and decision. 3.8 Selection of Successful Bidder. The Agency Procurement Boards will consider and select the successful bidder. Selection of tenders will be based on the general procurement principles, predetermined criteria and final evaluation. All tenders are to be considered by the Agency Procurement Boards. However in cases where the tender value is above RM100 million for works and RM50 million for supplies and services, the tenders would then be sent with recommendation of the Agency Procurement Boards to the Ministry of Finance for final decision. Information of successful bidder will be displayed in the procuring agencies websites and MyPROCUREMENT portal.

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3.9 Registration Requirement of Contractors. All individuals, companies or corporate bodies intending to participate in Government procurement i.e. to do business with the Government are required to undergo a registration process. This includes all contractors of works, supplies and services. Registration authorities are as below: Category Works Supplies Services Registration Authorities Construction industry development board (CIDB) Malaysia Government Procurement Division, Ministry of Finance Malaysia Government Procurement Division, Ministry of Finance Malaysia

The registration requirement is to ensure that companies/contractors are bona fide, truly committed in the relevant business fields and possesses the capability to carry out works or supply and provide the services. For works, construction and electrical contractors are registered separately. There are seven (7) classes of registration for construction and seven (7) classes for electrical contractors under the CIDB registration. This registration requirement enables the government to take disciplinary action and impose penalties on contractors who do not perform according to contract. Penalties imposed according to seriousness of deviations, range from warning, suspension of registration for a maximum period of 5 years and to blacklisting of Companies/Board of Directors of the contracting parties from conducting further businesses with any Government Ministry, Department or Agency. This applies to contractors/suppliers with consistent or serious deviations from the contract conditions where enforcement of thecontract conditions alone would not resolve the seriousness or complications as the case might be.Exemption from registration is allowed under certain circumstances but where exemption is granted contractors need to furnish tender deposits. 3.10 Central Purchase of Supplies Through Federal Central Contracts or Panel Contracts. The Government Procurement Division, Ministry of Finance establishes and facilitates procurement of common user items through Federal Central Contracts/Panel Contracts. These contracts are made through open local tenders and sometimes through negotiated tenders. When a Federal Central Contract/Panel Contract has been made for a particular item, all ministries and departments whether Federal or State are required to purchasefrom these contracts. Items under the central contracts/panel contracts range from foodstuff, office furniture and vehicle spare parts.

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3.11 Agency Procurement Boards. All tenders i.e. procurement of supplies, services and works above the value of RM500,000 must be considered and decided by Agency Procurement Boards. The Minister of Finance appoints all Federal Government Procurement Boards and the Chief Ministers of the respective states appoints the State Government Procurement Boards. The chairperson is usually a Head of Department or a Controlling Officer who under the Financial Procedure Act 1957 is empowered to manage the annual allocation given to a particular Ministry or Department. Besides that, currently two Agency Procurement Boards have been established in all federal ministries i.e. Agency Procurement Board A and Agency Procurement Board B. The Agency Procurement Board A is empowered to decide on tenders up to RM 50 million for supplies and services, and up to RM100 million for works. The representative from the Ministry of Finance is the permanent member of the Agency Procurement Board A and his presence is mandatory to validate the decision of the Board. This requirement is mainly to ensure that all procurement principles, policies, rules and regulations and procedures are strictly adhered to. The Agency Procurement Board B is empowered to decide on all tenders below RM20 million without the presence of a representative from the Ministry of Finance. Then, tenders above the values of RM50 million for supplies and services and RM100 million for works for Government Ministries/Departments and tenders above RM100 million for statutory bodies must be forwarded to the Ministry of Finance for final decision. Any decisions of the Agency Procurement Boards which are not unanimous must also be forwarded to the Ministry of Finance for final decision. 3.12 Letter of Intent A Letter of Intent will be issued to the successful bidder, if necessary. The Letter of Intent may consist of additional terms and conditions, mostly safeguards and important for the successful implementation of the contract. The Letter of Intent is not legally binding. The final decision on acceptance of the tender depends upon the successful negotiation and/or acceptance of additional terms and conditions. 3.13 Letter of Acceptance. A Letter of Acceptance is directly issued to the successful bidder if his bid is accepted in total. The successful bidder is then required to attest and return the Letter of Acceptance to the Government. If negotiations are necessary where the Letter of Intent so requires, then upon completion of negotiations, the Letter of Acceptance is issued to the successful bidder and it must be returned to the Government for the formalisation of contract. The Letter of Acceptance forms a part of the contract documents and is legally binding.
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3.14 Formal Contract. Formal contracts are drawn upon the receipt of the Letter of Acceptance from the successful bidder. Bidders are required to forward Performance Bonds based on stipulated rates according to the value of a contract. Performance Bonds must be obtained from locally incorporated banks, insurance companies and financial institutions that are licensed to operate in Malaysia. The current rates are as follows: a) For Supplies and Services contract i) 2.5 percent of contract value for contracts exceeding RM200,000 and less than RM500,000; and ii) 5.0 percent for contracts exceeding RM500,000. b) For Works contract i) 5.0 percent of the contract value exceeding RM200,000.

4.0 Conclusion. As a conclusion, the are few of the differences between the single stage of selective tendering process practice in UK and the single stage of selective tendering process practice in Malaysia. So, the differentation between of both practice will shows what the advantages of the practice that includes in the both types of practices. Accroding to the finalization of the comparision, it will found that the practice was done in UK more effectivelly than the practice in Malaysia.

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5.0 References
Connect, S. B. (n.d.). What is Tendering. Retrieved NOVEMBER 8, 2013, from Small Bizz Conncet: http://toolkit.smallbiz.nsw.gov.au/part/26/134/623 Division, M. o. (2013, JUNE). MALAYSIAS GOVERNMENT PROCUREMENT REGIME. Retrieved NOVEMBER 10, 2013, from Ministry of Finance Malaysia: www.treasury.gov.my/pdf/lainlain/msia_regime.pdf The Scottish Joint Consultative Committee and The Joint Consultative Committee for Building, N. I. (1996, JANUARY). Code of Procedure for Single Stage Selective Tendering. Retrieved NOVEMBER 9, 2013, from National Joint Consultative Committee for Building: www.gobookee.org/single-stage-of-selective-tendering-uk

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