Microsoft Powerpoint - Chapter 7 - Tendering Procedures.ppt [compatibility M 32164s
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PROFESSIONAL PRACTICE I [QSD 289]
Mohammad Nasharudine Shuib
1
SECTION
DESCRIPTIONS
1
INTRODUCTION
2
WHAT IS TENDER?
3
WHAT IS TENDERING?
4
DIFFERENCE BETWEEN TENDER & CONTRACT
5
TENDER NOTICE
6
OPEN TENDER
7
SELECTIVE TENDER
8
DIRECT NEGOTIATED TENDER
9
TENDER VALIDITY PERIOD
10
TENDER SUBMISSION
11
TENDER OPENING PROCESS
LINKS
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
1.
2.
The objective of tendering is to select a suitable contractor at an appropriate time and obtain from him an acceptable offer upon which a contract can be let. Generally there three (3) types of tendering used: a. Open Tendering b. Selective Tendering c. Negotiated Tender
19
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.
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 for different things and different for the same thing. The term tender formally means an invitation to trade under the of offer. A contract is the 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
28
29
30
31
32
33
34
35
36
37
38
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
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
43
45
46
Method of Selection Negotiated
Competitive Open
Selective
ment
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
Notify Successful Tenderer
Return Deposits Prepare Contract Document Sign Contract
48
Tendering methods consist of:-
Tendering Methods Negotiated Tendering
Competitive Open Tendering
Others
Selective Tendering
Serial Contract Pre-Qualification 50
Most Effective Way Obtaining Competitive Rates
Complete Design is Necessary
Competitive Tender
Open To All Contractors
Maximum Competition
CHARACTERISTICS
To Ensure ability
Invitation Through ments
52
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. The system of invitation of tender by public ments through Newspapers or the Internet in the most open public manner is called the Open Tender System. This is most effective way of obtaining competitive 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? Cost of tendering increased as number of tenderer increases 54
Obtaining Competitive Rates
Obtaining Lowest Price
ability
Competitive Tender
Open To All Contractors
Maximum Competition
ADVANTAGES
No. Favoritism
55
Experience in Construction?
Problems of Selecting the Best Tender
Is the Lowest Tenderers Capable?
Is it Financially Secure?
No assurance About Quality
DISADVANTAGES
Higher Cost of istration: Duplicating Documents
Experience in Tender Submission?
56
As
the name implies, a list of selected tenderers is produced as a basis for this method of obtaining tenders. The design team together with Client will normally determine which contractors will be invited to tender. Design team will take into contractors’ track records, business record, financial stability and capacity to carry out project.
58
Most Effective Way Obtaining The Best Tender
Complete Design is Necessary
Fulfilled Certain Criteria
Limited Number of Contractors
A Maximum of 6 Tenderers
CHARACTERISTICS
To Ensure ability
Invitation Through Invitation Letter
59
Obtaining The Best Tender
Financially Secure
ability
Obtaining Lowest Price
Quality
Experience in Tender Submission
ADVANTAGES
Cost of Tendering reduced
60
Favoritism during selection of Tenderers
Higher Cost
DISADVANTAGES
Limited to Certain Contractor Only
Collusion during tender
61
Series
of negotiation will take place between the client and selected contractor. Normally under design and build procurement. In this method the price to be paid in return of the work to be done is negotiated with a single contractor. This , obviously, does not provide the owner with a comparative prices.
63
Though
the cost of a work will be higher in this method, an owner may expect some advantages from employing a particular contractor whose 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 istration.
64
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.
65
Most Effective Way Obtaining The Best Tender
Complete Design is Necessary
Fulfilled Certain Criteria
Only negotiated with single contractor
A Maximum of 6 Tenderers
CHARACTERISTICS
To Ensure ability
Invitation Through Invitation Letter
66
Obtaining The Best Tender
Financially Secure
Smooth in istration
Early Completion
Better Quality
Work carried out within scope and experience
ADVANTAGES
Cost of Tendering reduced
67
Favoritism
Public ability are Rarely Satisfied
Higher Cost
DISADVANTAGES
Limited to Certain Contractor Only
not provide the owner with a comparative prices 68
QUANTITY
SURVEYING: PRACTICE & ISTRATION (1983), DENNIS F TURNER, U.S.A
70
Mohammad Nasharudine Shuib
1
SECTION
DESCRIPTIONS
1
INTRODUCTION
2
WHAT IS TENDER?
3
WHAT IS TENDERING?
4
DIFFERENCE BETWEEN TENDER & CONTRACT
5
TENDER NOTICE
6
OPEN TENDER
7
SELECTIVE TENDER
8
DIRECT NEGOTIATED TENDER
9
TENDER VALIDITY PERIOD
10
TENDER SUBMISSION
11
TENDER OPENING PROCESS
LINKS
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
1.
2.
The objective of tendering is to select a suitable contractor at an appropriate time and obtain from him an acceptable offer upon which a contract can be let. Generally there three (3) types of tendering used: a. Open Tendering b. Selective Tendering c. Negotiated Tender
19
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.
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 for different things and different for the same thing. The term tender formally means an invitation to trade under the of offer. A contract is the 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
28
29
30
31
32
33
34
35
36
37
38
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
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
43
45
46
Method of Selection Negotiated
Competitive Open
Selective
ment
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
Notify Successful Tenderer
Return Deposits Prepare Contract Document Sign Contract
48
Tendering methods consist of:-
Tendering Methods Negotiated Tendering
Competitive Open Tendering
Others
Selective Tendering
Serial Contract Pre-Qualification 50
Most Effective Way Obtaining Competitive Rates
Complete Design is Necessary
Competitive Tender
Open To All Contractors
Maximum Competition
CHARACTERISTICS
To Ensure ability
Invitation Through ments
52
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. The system of invitation of tender by public ments through Newspapers or the Internet in the most open public manner is called the Open Tender System. This is most effective way of obtaining competitive 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? Cost of tendering increased as number of tenderer increases 54
Obtaining Competitive Rates
Obtaining Lowest Price
ability
Competitive Tender
Open To All Contractors
Maximum Competition
ADVANTAGES
No. Favoritism
55
Experience in Construction?
Problems of Selecting the Best Tender
Is the Lowest Tenderers Capable?
Is it Financially Secure?
No assurance About Quality
DISADVANTAGES
Higher Cost of istration: Duplicating Documents
Experience in Tender Submission?
56
As
the name implies, a list of selected tenderers is produced as a basis for this method of obtaining tenders. The design team together with Client will normally determine which contractors will be invited to tender. Design team will take into contractors’ track records, business record, financial stability and capacity to carry out project.
58
Most Effective Way Obtaining The Best Tender
Complete Design is Necessary
Fulfilled Certain Criteria
Limited Number of Contractors
A Maximum of 6 Tenderers
CHARACTERISTICS
To Ensure ability
Invitation Through Invitation Letter
59
Obtaining The Best Tender
Financially Secure
ability
Obtaining Lowest Price
Quality
Experience in Tender Submission
ADVANTAGES
Cost of Tendering reduced
60
Favoritism during selection of Tenderers
Higher Cost
DISADVANTAGES
Limited to Certain Contractor Only
Collusion during tender
61
Series
of negotiation will take place between the client and selected contractor. Normally under design and build procurement. In this method the price to be paid in return of the work to be done is negotiated with a single contractor. This , obviously, does not provide the owner with a comparative prices.
63
Though
the cost of a work will be higher in this method, an owner may expect some advantages from employing a particular contractor whose 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 istration.
64
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.
65
Most Effective Way Obtaining The Best Tender
Complete Design is Necessary
Fulfilled Certain Criteria
Only negotiated with single contractor
A Maximum of 6 Tenderers
CHARACTERISTICS
To Ensure ability
Invitation Through Invitation Letter
66
Obtaining The Best Tender
Financially Secure
Smooth in istration
Early Completion
Better Quality
Work carried out within scope and experience
ADVANTAGES
Cost of Tendering reduced
67
Favoritism
Public ability are Rarely Satisfied
Higher Cost
DISADVANTAGES
Limited to Certain Contractor Only
not provide the owner with a comparative prices 68
QUANTITY
SURVEYING: PRACTICE & ISTRATION (1983), DENNIS F TURNER, U.S.A
70
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