LECTURE 2: TENDER PROCESS AND DOCUMENTATION

WHAT IS TENDER?

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 specified works.

WHAT IS TENDERING ?

Stages of a project
Stage 1: inception & feasibility
Stage 2: design
identifying project objectives / set up project brief develop further project brief / develop concept & schematic design / Undertake detailed design & detailing / prepare cost plan & budget

Stage 3: tendering

issue tender documents / prepare & submit tender / evaluation of tender / award tenders / prepare contract documents
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Stages of a project
Stage 4: construction
site possession & mobilization / undertake procurement fabrication, installation, construction / carry out contract admin
undertake all testing, commissioning & training / obtain CF / handover project to owner /carry out necessary maintenance / Defect rectification / etc

Stage 5: handover & maintenance

Tendering
Will be started after the design complete and project budget must be approved The process that is used to obtain offers leading to a contract between: client client main contractor contractor consultant sub-contractor

Purpose of tendering process

To select a suitable contractor at a time appropriate to the situation of the project. To obtain from the contractor selected at the proper time, an acceptable tender or offer upon which a contract can be let.
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Difference between a contract and a tender

A tender formally means an invitation to trade under the terms of offer. A contract is the term used for when the parties have reached agreement.

General TENDERING PROCESS

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PRINCIPAL ACTIVITIES

Tendering process

1. Selection of the most preferable or appropriate contract procurement method. 2. Development of tender list 3. Preparation of tender documentation 4. Invitation / calling off tender 5. Preparation and submission of tenders

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PRINCIPAL ACTIVITIES (contd)

Tendering process

6. Receipt and opening of tenders 7. Evaluation of tenders 8. Acceptance of tender award or award of contract

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Stage 1: Selection of the most preferable or appropriate contract procurement method.

Traditional contract procurement route

Longer time lead to critical work scheduling Less errors more precise

Fast-track contract procurement route

Shorter time Consequences may be lead to critical error, variation.

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Stage 2: Development of tender list

Potential tenderers can directly apply to the employer for future works. Employer generate list based on previous dealings The professional team generate their own list and recommend to the employer.

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Stage 3: Preparation of tender documentation typical contents

Letter of invitation Checklist for submission of tender Articles of agreement Conditions of contract Form of tender Tender specifications Bills of quantities Tender drawings Sample copy of letter of acceptance Sample copy of bang guarantee for performance bond Schedule of day work rates Sample copy bank guarantee for advance payment

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Tendering process
Stage 1:
PREPARATION

Stage 2:
APPROVAL TO TENDER

Stage 3:
DOCUMENTATION

Stage 6:
AWARD CONTRACT

Stage 5: PROCESSING

Stage 4: INVITATION

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