Professional Documents
Culture Documents
CHAPTER 2
TENDER PROCEDURE
TENDER PROCEDURE
Definition of Tender
o Tender is a statement issued to invite a party to perform a
job/work for the construction or supply works with the permission
from the parties involved.
Tender prepared by the developer while the recipient is a
contractor or supplier.
Definition of Quotations
o Quotation is a process to call and select a qualified contractor to
build and complete construction works value between RM 0001 to
RM 50 000.
o Quotation usually practised to fullfill immediate work, maintenance
work and indent works. Quotation process usually for bumiputra
contractors only.
TENDER PROCEDURE
a) Immediate work
Work should be done immediately, usually selected contractor is a
contractor who is already known skills and ability to work. Example an example of work involved, such as pipeline repair or repair a leaking
roof and repair of public toilets.
b) Maintenance work
Maintenance work usually based on schedules of rates. Basiclly types
of the works is basic maintenance and maintenance of government
buildings. Maintenance works usually open for one week by Public Work
Department or other government body. BY this actions, usually prices
by contractor usually the same.
c) Indent work
This type of work is notified to the contractor work after they submit
their quotation - respectively. Only a successful contractor is required
to perform the work. The types of works involved is office renovation,
cleaning of building and painting.
TENDER PROCEDURE
TYPES OF TENDER
Open Tender
Limited Tender
Selected Tender
Pre-qualification Tender
Negotiable tender
TENDER PROCEDURE
Open Tender
Open tender is an
offer by the government's customary and statutory bodies. This
types of tender is open to all contractor that fullfill the criteria
.This type of tender is open to all qualified contractors. The
number or tenderers is unlimited. This types of tender
used to get a good price by the big number of
contractors who enter this type of tender.
This allows the employer to make the right choice based
on appropriate and reasonable price.The employer will published
tender notice in local newspapers or display on the employer notice
board.
Benefits of Open Offer
Provide opportunities for new contractors(less experience).
The employer can choose the lowest price from a large number
of contractors.
This offer is suitable for the simple construction and requires
no special experience and qualifications.
TENDER PROCEDURE
Limited Tender
Selected Tender
TENDER PROCEDURE
TENDER PROCEDURE
Pre-Qualification Tender
Offer only open to contractors who are selected through a
pre-qualification process. Usually for specific project and
require special expertise and high-class standard..Project
owner/client will advertise the notice of pre-qualification
tender in local newspapers to determine the ability of a
contractor who wants to participate in the
offer. Contractors who wish to participate in this offer
should fill in form that based on information about financial,
management and experience of the contractor and returned
it to the developer. Employers will review the information
provided and will make a selection to select the contractor
to participate in the offer as a tenderers. The successful
contractor usually appointed based on experience, skills,
work skills, working capital and modern techniques being
used.
TENDER PROCEDURE
Negotiate Tender
TENDER PROCEDURE
TENDER DOCUMENT CONTENTS
The tender document is divided into two types:
The tender document for contract based on the bills of
quantities (BQ)
o Usually used for large projects
o Preparation requires a relatively long time
o It can provide as a foundation for assessing the work done for
interim payment and work changes.
The tender document for contract based on
drawings and specifications.
o The use to the project to be completed soon due to limited
time for Quantity Surveyor had to prepare Bills of Quantities.
o Suitable for low and moderate project costs.
o The contractor must include the total price for work in
bulk only (Lump Sum)
TENDER PROCEDURE
TENDER PROCEDURE
This document is very similar to the tender document, but usually more complete
than the tender document that is sold to contractors.
Usually published during tender notice re-opens until closing date submissions of
tender.
TENDER PROCEDURE
DEFINITION OF TENDER NOTICE
Statement issued by the developer to invite contractors to enter tender for the
proposed project
Tender notice is to inform the contractors who are interested with important
details of a tender.
TENDER NOTICE ELEMENTS
Must be attractive and offer complete information about the project so that many
qualified contractors participate to the tender.
Tender shall be advertised in the local newspapers or posted on the notice board at
the employer's/owner office.
TENDER PROCEDURE
INFORMATION AND CONDITIONS OF TENDER NOTICE
Important information that should be included in tender notice : Logo and name of employer/owner
Work title
Type of tender
Classes to invited contractors
The head and sub heads
Payment of the tender document
Places to take the tender document
Place and time of the tender documents returned
Date of site visit, the time and location
Location for checking TTD
Time and date to check TTD
The closing date for tender
Tender Notice
Click here
TENDER PROCEDURE
TENDER PROCEDURE
TENDER PROCEDURE
STANDARD FORM FOR TENDER PROCESS
Form of Contract
Form of agreement between the contractors and developers to
carry out a project. It contains the terms of agreements and
contracts that must be followed by both parties. Form of contract
used is whether JKR203/203A or PAM (equivalent contract)
Contractor Pre-Qualification Form
This form is used by the contractors who wants to enter the Prequalification tender. This form practised to observed contractor
organization to handle a project..Assessment is based on the
number of workers, the number of machines used and the
experience of handling previous projects.
TENDER PROCEDURE
STANDARD FORM FOR TENDER PROCESS
Summary of Tenderer
This form is used to list the capabilities in terms of financial, capital, plant, personnel
and experience of each participating tenderer.
Which is the last form being used where QS will recommended the suitable/qualified
contractor to the owner/client to carried out works
TENDER PROCEDURE
TENDER CLOSING PROCESS
The closure means the tender closing date as stated in tender notice. When the
closing date of the tender, the completed tender documents by tenderers will put
inside provided tendering box. The tender box will be closed and kept in a engineer
office. Committee of opening tender will open the box after meeting/discussion.
THE USE OF TENDER BOX
TENDER PROCEDURE
OPENING OF TENDER PROCESS AND DUTIES OF COMMITTEE OPENING
TENDER
As we have explained the process of opening tender box will be done by members of
the tender opening. Members of this committee usually consists of three officers who
were appointed by the employer. Any documents submitted will be recorded in serial
number based on the amount of the tender documents.
For example, 1/10, 2/10, 3/10, 4/10 ... 9/10 and 10/10, if there are 10 tenderers
submit their tender respectively. This serial number will be listed together in a
special form together with tender prices being submitted. This form is known as a
Form of Tender Schedule.
Form of Tender Schedule will be handed over to the other committee to make a
tender evaluation or analysis. The committee must consist of not less than two
persons either Quantity Surveyor or Technical Officer in the relevant field of work.
TENDER PROCEDURE
TENDER ANALYSIS
Assessment of tenders carried out in two stages of assessment and evaluation which
is First Stage and Second Stage.
First Stage Assessment
The first assessment on the lowest tender for a few tender within a reasonable price
to meet the following conditions :Tender Perfection
Tender must be complete and free from any legal local authorities regulation and
reasonable contract to determine eligibility based on common practice.
Satisfactory Financial Position
Tenderers must submitting their evidence/proof or assessment officer satisfied with
financial condition to constuct a project. During the Satisfactory Performance,
tenderers who do not have a project or defined as 'sick' or getting a bad report from
the supervisor or the officer have a possibility facing a termination of work because
of unsatisfactory job performance.
Tenders which is not meet above conditions shall not being considerated to
further assessment in Second Stage.
TENDER PROCEDURE
TENDER ANALYSIS
Second Stage Assessment
The second stage of assessment is made on a number of tenders that pass the
evaluation of the first stage begins with the lowest to the highest tender prices. This
following criteria were used to determine the most advantageous/profitable tender
for consideration.
Tender Price
Tender prices submitted by the tenderer will be compared with the
department/client budget. Department/client budget should ensure first their
reasonableness.
Experience
Evaluation based of experience is important especially for the contractors who
offered low prices of tender. To enable the lowest or lower tender prices to be
considered, contractors(tenderer) should have a good record in two similir projects
within five years. (as a proof to clients that although offered the lower/lowest prices
contractors have the ability for the construction works)
TENDER PROCEDURE
TENDER ANALYSIS
Second Stage Assessment
Current Performance
Current work/present work is a project still under construction/not completed during
the closing date of tender. Job performance of tenderers will be categorized as
follows:
Excellence - exceed the actual percentage of progress schedule.
Satisfactory - the same percentage of the actual progress or backward from
schedule of less than 30%.
Current job performance evaluation shall be based on a report from the
Superintendent or Engineer Officer who observed the project.
Technical Staff
These factors are evaluated based on the number of technical staff, compared with
technical staff minimum estimates requirement(Anggaran Keperluan Minimum-AKM) to
carry out the tendered project in a great shape.
TENDER PROCEDURE
TENDER ANALYSIS
Second Stage Assessment
Plant, Quarry and Factories
If the technical technical less than AKM requirement bu the tenderer(contractor)
have a quary, factories and etc, or other relevent factors that can support their
tender prices respectively-can be considered
All the analysis and evaluation will be entered into the tender report for
submitted to the Tender Board to be considered. ThenTender Board will make
selection of the successful contractors to implement the project.
TENDER PROCEDURE
TENDER REPORT
Tender Board prepared tender report to facilitate the selection of contractor
a. A summary of the scope of work to be undertaken as the project name,
determination and etc.
b. Explain how to invite tenders for the project and
describes when the tender is opened and closed, and the conduct of the
tender isover.
TENDER PROCEDURE
TENDER PROCEDURE
DUTIES AND RESPONBILITIES OF THE BOARD OF OFFER
Duties and powers of the board of the tender depends on the stages
respectively
.
TENDER PROCEDURE
TENDER AWARDS
Means the the offer made to the contractors, which is their tender being selected
and accepted for the work/supply(s)
Owner/Client will issue a letter of acceptance of tender to the selected
contractor. The Contractor shallnot withdraw or had a risks to se sued if the offer by
owner/client being rejected. This is because as soon as the contractor
received the letter of acceptance of tender, contractual relations exist between the
owner/Client and contractor.
Letter of acceptance of the offer may be made in two stages:
a. Letter of Intent (Letter of Intent)
The contents of the letter including the intention by owner/client to accept the
tender submitted by contractor complied with conditions and requirements. This
letter is not bindthe Government/ owner/client and contractor
b. Letter of Acceptance (Letter of Acceptance)
That is a letter based on the condition that the offer was associated with the
contract. This is a valid legal document/letter and be part of the contract
document. This letter is issued to the successful contractors on all mattersno further consultation/negotition is needed (all matters resolved)
TENDER PROCEDURE
Tender Rejection
TENDER PROCEDURE
RE-TENDERING
Occured based on the following :