JCDISI Workshop - Prep of Tender Docs and Contracts For Prof Services and Building Contractors by SR Anderson Leung

Preparation of Tender Documents and Contracts
for Professional Services and Building Contractors
By Mr. Anderson Leung of Urban Renewal Authority
For Project Planning Workshop for Transitional

Social Housing organized by PolyU Jockey Club
Design Institute for Social Innovation (DISI)
1
Transitional Housing Development Programme
Procurement Procurement Procurement of
of Consultants of Consultants Main Contractor
Notes:
• Hypothetical Programme (with planning application)

• Early engagement of consultants
• Fund application guidelines
2
Procurement of consultants and contractors
Stages of Works in Consultants or Contractors

Development Programme
A. Planning and related
A. Planning Permission and engineering Consultants
Technical Assessment
B. Statutory Person (e.g.
B. Design & Tendering of AP/RSE) and related
Works construction professionals
C. Construction Works (Arch, SE, QS, BSE)
C. Registered General
Building Contractors for
construction works
3
Procurement of planning and related engineering consultants
• To prepare a Section 16 application to

Town Planning Board and seek approval of
the temporary use of a site as transitional
Act as Lead housing
Role of a Consultant
• To coordinate and monitor consultant
Planning team in preparation of various technical
Consultant assessments in support of the Section 16
submission and approval
• To provide technical support on the STT

approval process
4
Why Section 16 and STT application required for TH projects?
Extracted from Outline Zoning Plan Extracted from website of LandsD
Planning Permission may be required for a Short Term Tenancy application is required for
proposed transitional housing although it is for use of vacant government land for community,
temporary use institutional or non-profit making purpose
5
Procurement Options
Employ under Employ each

Comprehensive OR professional separately
Planning Consultant under NGO
• Single point of contact
• Less administration works in both

procurement and post contract stages
6
Procurement Process
2. Shortlist
1. Expression
approval of 4. Tender
of Interest 3. Tender 5. Tender 6. Tender
qualified Invitation and
issued to a list preparation Analysis Award
tenderers by Return
of tenderers
NGO
(i) Expression of Interest with /without shortlisting Notes:

criteria
(i) The requirements for approval or not at
(ii) Selection of consultant list from each stage and the respective approving
a. List approved by NGO
authority may be different for different
b. List from Engineering & Associated Consultants
NGOs.
Selection Board (EACSB) published by CEDD
(https://www.cedd.gov.hk/eng/publications/eacsb-
handbook/index.html)
(ii) Need to check If there are any tender
requirements to follow in the TH funding
(iii) Confirmation of tenderer’s list completed application guidelines.
7
Tender Preparation –Assessment Criteria
Fee Only- for those tenders that

are relatively straight forward
and with a clear task to
accomplish
Assessment Criteria
for selection of
consultants
Fee and Technical (Two
envelopes)- For those tenders
that are more complicated and
require the evaluation of
options to generate acceptable
solutions
8
Tender Preparation - Tender Documents
Conditions
of Tender
Schedule Form of
Basic structure of of Fees Tender
tender documents
Tender
Documents
Project
Brief and Memorandum
Schedule of Agreement
of Services
Conditions
of
Engagement
9
Conditions of Tender
- List out the content of Tender Document:

• Tender submission requirement
• Form of tender
• Build-up of Tender Fee
• Declaration of Interest
• Confidentiality undertaking
• Non-collusive tendering
- Tender assessment method (optional)

- Method of raising tender queries
- Tender closing time and method of submission
of tender
Sample page of Conditions of Tender

10
Sample page of Conditions of Tender

11
Form of Tender
- Lump sum tender fee or
fee as a percentage of
construction works
- Tender offer
Content of
Tender
- Tender validity
- Become a binding
contract once accepted Tender
validity
period
Contract
binding
Sample page of Form of Tender

12
Memorandum of Agreement
Agreement between NGO and tenderer

regarding the undertaking and perform of
Services listed in Tender Document
Sample page of Memorandum of Agreement

13
Conditions of Engagement
General Conditions of
Special Conditions of
Engagement
Engagement
- Contract administration
Amendments to General
matters
Conditions of Engagement to
- Consultant’s responsibility
suit the project particulars and
- Employer’s responsibility
Employer’s need
- Variation / Change of design
- Payment Terms
- Copyright
- Professional Indemnity
- Termination
14
Conditions of Engagement
Sample pages of Conditions of Engagement

15
Project brief and Schedule of Services
Project Brief
Schedule of Services
An introduction of the project containing
project background information, site Schedule of Services for each engineering
information and plans, development discipline
parameters, design requirements, critical
dates, notional design scheme (if any),
tentative programme, client’s
requirements to follow
16
Comprehensive Planning Consultant
Architectural Landscape Traffic

To prepare architectural layout, To prepare tree survey and To review existing traffic capacity,
block layout, development tree felling recommendation recommend access arrangement,
parameter, development / compensatory tree provide traffic data for other
programme in support of the proposal in support of the assessments. e.g. Noise Impact
Section 16 application Section 16 application Assessment.
17
Comprehensive Planning Consultant
Environmental Sewerage
To identify the potential Drainage
To identify existing sewerage
environmental issues resulted To identify existing drainage
provision within and surrounding
from TH development including provision within and surrounding
the site, estimate the additional
noise, water, waste, etc the site, estimate the additional
discharge of sewage to public
demand / discharge to public
sewerage system, recommend if
storm water drainage system
upgrading works required on
resulted from the development
existing public sewage system
18
Schedule of fee
- Fees (Lump sum or fee as a percentage
of construction works)
- List of items included in fee such as

travelling expenses, photocopying and
printing charges, etc
- Disbursement costs such as design

rendering, statutory processing fee, etc.
to be reimbursed at cost
- Payment terms and schedule
- Expenditure of the contingency

allowance to be instructed by Client
Sample page of Payment Schedule
19
Procurement of statutory persons and related construction professionals
Main consultants deal with different stages of the project in

design and construction
Design, tender, construction,

completion of works stages
Registered Structural Engineer

Authorized Person Building Services Quantity
(RSE)
(AP)-Architect Engineer (BSE) Surveyor (QS)
Registered Geotechnical Engineer
(RGE)
20
Registered Structural Engineer (RSE)
Authorized Person (AP)-Architect Registered Geotechnical Engineer (RGE)
-Acting as the AP for communication with Buildings -RSE/ RGE are responsible for geotechnical design, foundation
Department and superstructure design of a TH project
-handling statutory submissions and approval -handling structural-related statutory submissions and
approval
-preparing tender drawings and specification for
builder’s works -preparing tender drawings and specification for structural
works
-liaison with government departments
-liaison with government departments
-daily coordination among consultants and
contractors -daily coordination among consultants and contractors
-supervising clerk of works to check the quality of -supervising resident structural engineers to check the quality
builder’s works of structural works
-monitoring site progress -monitoring site progress in structural aspects and providing
adequate site supervision
21
Building Services Engineer (BSE) Quantity Surveyor (QS)

-BSE are responsible for building services design of a -To carry out pre-tender estimate for NGO as budget
TH project control
-handling building services related statutory -To prepare various works contract documents and bills
submissions and approval of quantities of a TH project
-preparing tender drawings and specification for -To advise client on different tendering strategies
building services works
-To issue payment certificates to contractors in regular
-liaison with government departments and utility basis
companies regarding E&M issue
-To monitor payment status for all the works and to
-daily coordination among consultants and ensure the overall TH budget is under control
contractors
-To prepare and agree final account
-supervising building service inspector to check the
quality of E&M works
-monitoring site progress in building services aspects

and providing adequate site supervision
22
Procurement Options
Employ under Employ each

Comprehensive AP and OR professional separately
Architect Consultant under NGO
• Single point of contact
• Less administration works in both

procurement and post contract stages
23
Design and Build
(i) What is a Design and Build Contract?
The contractor is required to undertake the design and construction of the full package of
superstructure works, based on Employer’s requirements
(ii) Comparison of Design and Build and Traditional Approach

Procurement methods Pros Cons
1. Higher price certainty 1. Unable to allow for early involvement of contractor

Traditional Method
(With Design and Build for 2. Employer has closer control on the design and design 2. Longer tender preparation time
MiC) change
3. The MiC design relies on designer’s experience, with
3. Most popular type of procurement method lower buildability
1. Single point responsibility on the Contractor 1. Less design control by Employer as changes to
Employer’s requirement will constitute to variation
2. Higher price certainty if the Employer’s Requirements
are precisely and accurately prepared 2. Less cost control by Employer in case of variations
Design and Build 3. Allow earlier involvement of contractor 3. The Contractor tends to provides minimum standard
4. The Contractor bears higher risks, hindering his

interest to tender or tend to submit a higher tender
24
Design and Build
(iii) Points to consider before adopting Design and Build:
• Information required for a proper Design and Build tender - A full set of
Employer’s requirement including building plans, MiC design, elevations,
design criteria, schedule of recommendation, pricing document
• Difficult to draft a set of good and precise employer’s requirement for a

Design and Build turnkey project without first developing a scheme design
• Employer’s consultants may still be required to vet contractor’s design
• MiC design may not be feasible for every TH project due to site constraints
• Design and build may end up with a higher price
25
Procurement Process
2. Shortlist
1. Expression
tenderers by Return
of tenderers
NGO
The Tendering procedure and tender documentation preparation are more or less similar to those of the planning consultant with the following points
to note:-
(i) Selection of consultant list from

a. List approved by NGO
b. List from Engineering & Associated Consultants Selection Board (AACSB) published by ASD
(https://www.archsd.gov.hk/en/consultants-contractors/consultants/list-of-consultants-of-aacsb.aspx)
(ii) Assessment Criteria
(iii) Allowance for site staff

26
Assessment Criteria
Based on submitted
Fee Only
fee proposal
Assessment Submitted fee

Criteria for Design proposal
Development
Recommendation:
Consultant
Technical Proposal including: Technical and Fee
- Company and relevant job
experience
Technical and Fee - Quality to response to
project brief, point out the
challenges and provide
Points to note when using technical and fee :
relevant solutions
(i) An Assessment Panel should be formed - Propose a feasible
programme to match client
(ii) The composition of the AP, technical and requirement
fee weight and marking scheme should - Professional qualification
be approved before invitation of tender and experience of the
proposed project team
(i) Fee proposal will not be opened until
completion of technical assessment
27
Allowance for resident site staff
• Allowance for resident site staff (e.g. Clerk of

Works, Resident Engineer, Building Services
Inspector)
• Off-site Supervision (if MiC modules adopted)
• Provisional period and all-inclusive monthly
charge for each site staff Site staff
28
Procurement of RGBC for construction works
Major works included in Main Contract Tender
Main Contract Works

Electrical
Builder’s Work
Installation
MVAC MiC Supply and
Installation Installation
Fitting-out
FS Installation
Works
Plumbing Landscape/
Installation External Works
29
Procurement Options
Contractor will be
responsible for
design, supply and
Design and Build construction of the
works in accordance
Traditional lump sum
with employer’s
Procurement requirement fixed price for Main
options for Contract and Design and
Main Contract Contractor will be Build for MiC
responsible for
Traditional construction of the
Approach works while the
design is provided by
consultants
- Design other than MiC should be provided by the consultant team to save time.
- Less design risk on the contractor as the consultants are responsible for the design except for the MiC part.
- More competitive price

30
Procurement Options for Lump Sum Fixed Price (Main Contract)
Lump sum fixed price contract with Bills of Quantities

(BQ)
PROS CONS
Quantities of works / materials Longer preparation time for
prepared by QS for common use of measuring Bills of Quantities
all tenderers before tender issuance
Pre-tender estimate will be more Risk of incorrect quantities of

accurate. materials/ works, drawing and
specifications shift to the
Easier for tender comparison of price Employer
and on unit rates
Drawing and specification have a

greater chance to improve as
production of BQ takes time
31
Procurement Options for Lump Sum Fixed Price (Main Contract)
Lump sum fixed price contract based on drawings

and specifications and Schedule of Rates
PROS CONS
Quantities of work/ material
Employer will take the risks of
estimated by the tenderers based on
errors in tender drawings and
the drawings and specifications
specifications.
provided. Time for tender issuance
may be faster. Tender price may be higher than
Risks of under-measurement shifted that of with BQ.
to contractors side and they have to
provide the unit rate and tender Difficult to compare tender prices
price on their own. as different tenderers may have
different rates and quantities.
Longer time for tendering process
32
Procurement Process of Main Contract Tender
2. Shortlist
1. Expression
tenderers by Return
of tenderers
NGO
(i) tenderer’s list can be (ii) shortlisting can be • Assessment Criteria

from NGO or from based on
following parties: a. Similar completed job • Tender
reference documentation
a. Approved Contractors b. RGBC qualification Notes:
from Development
Bureau (iii) Confirmation of (i) The requirement for approval or not and
b. List of Approved tenderer’s list completed the respective approving authority may
Contractor’s from
Housing Authority’s
be different for different NGOs.
https://comis.housingauthority.gov.hk
/ha/eng/ctp_list.jsp?LIST_CD=BLG&LIS
T_CAT_GRP_CD=BLG/NW/2
(ii) Need to check If there are any tender
c. Recommendation by requirements to follow in the TH funding
project consultants application guidelines.
33
Tender Preparation - Tender Documents
Conditions
of Tender
Bills of
Basic structure of Quantities
main contract Form of
or
tender documents Tender
Schedule
of Rates
Tender
Documents
Drawings Articles of
and Agreement
Specifications
Conditions
of Contract
34
Conditions of Tender
It contains general rules that

govern:-
• the content of a tender

(completed Form of Tender, BQ
or SOR)
• its submission requirement
• tender assessment method
(Price only or technical and
prices)
• Method of raising tender
queries
• qualified tender may not be
considered
Reference: General Conditions of Tender under

Development Bureau
Source
https://www.devb.gov.hk/filemanager/technicalcirculars/en/upload/2
91/2/pwd39731.pdf
35
Form of Tender
Project Title
This part to be signed by the Description of Works

tenderers to indicate that
they have inspected the site, Tender Sum
understand the tender and

Validity of Offer
accept the various terms and Form of
conditions and other Tender Time for completion of the
works
requirements in submitting a
Tenderer information with
tender signature
Name of witness and

Reference: Form of Tender for Capital signature
Works under Standard Contract Document
in Development Bureau
Dates
https://www.devb.gov.hk/filemanager/en
/content_188/form_of_tender.doc
Sample page of Form of Tender

36
Articles of Agreement
This is the most important part in the contract document. It stated the
core statement of obligation between to contracting parties
The Contractor to complete the works in accordance with the contract

documents for the sum agreed and the employer to pay the contractor
as specified in the contract
This part was included in the Standard Form of Contract
Under Limitation Ordinance
For a simple contract - once six years have passed the right to sue in a
court of law is no longer possible
For a contract under seal - have right to sue in a court of law for
twelve years
Contract under seal are generally executed in accordance with the

sealing requirements of company ordinance and the company’s own
constitutional documents.
Reference: Guidance on Execution of Public Works Contracts as Deed under DEVB(PS) 107/8 Sample page of Articles of Agreement
37
Conditions of Contract
A. General Conditions of Contract
• To define the responsibilities and liabilities of the parties to the

contract
• To describe the method of administration
• To define the terms under which the works to be carried out, the
relationship between the Employer and the Contractor, the
powers of the Architect and the terms of payment
• Set out contractor’s obligations
38
A. General Conditions of Contract
Common terms of the general conditions of contract:
• Architect’s Engineer’s power to issue

instruction - Interim Payment
• Assessment of Variations - Period of interim certificates
• Contract period and commencement of - Percentage of certified value retained
Works - Maintenance Period
• Time for Completion of Works - Period of Final Measurement
• Extension of Time - Insurance of Works and third party insurance
• Liquidated damages - Surety Bond and amount of bond
• Termination
39
B. Special Conditions of Contract
• To supplement the
amendments, additions,
deletions and amplifications Sample pages regarding the SCC of Design
to the general conditions of Responsibility for Contractor’s Design
contract to cater the specific

needs in different projects.
40
Common standard forms of contract in use
For government projects:

General Conditions of Contract for Building Works,
1999 Edition (HKSAR)
For private projects:

Agreement and Schedule of Conditions of
Contract for use in the Hong Kong Special
Administrative Region, With Quantities, 2005
Edition
Agreement and Schedule of Conditions of

Contract for use in the Hong Kong Special
Administrative Region, Without Quantities, 2006
Edition
41
Drawings
Enable tenderers to
understand the scope and
details of works so that price
submitted by the contractor
can be expected to be realistic
Including building plans,

sections and elevations, door
schedule, material schedule,
finishing schedule, structural
plans, building services
drawings (electrical, MVAC,
plumbing and FS), landscape
drawings
Sample layout plans and schematic drawings
42
Drawings
Tender drawing- Architectural Tender drawing-Landscape
43
Specification
There are two main classes of

specification:
General Specification – covers

general requirements of operations
and materials
Particular Specification – to modify

general specification to suit the
project characteristics
Reference: (i) General and Particular

Specification published by ASD
(ii) Consultants may have their own
specifications
44
Bills of Quantities
The purpose of the Bills of
Bills of Quantities
Quantities is: 1) Preambles
To describe the method of measurement used in preparing the bills of
-To set out the quantities quantities.
and descriptions of works to 2) Preliminaries
be executed for the To list out the site overheads requirements and contract conditions
tenderers to price (which do not form part of permanent works), such as description of
work, form of contract used, site supervision and site facilities
-To allow comparison of the 3) Measured work
tenders in the competitive Lump sum contract based on bills of quantities –
bidding process The quantities of work required for completion of the project will be
measured and stated in this section for pricing
4) Provisional sum and prime cost sum
-To provide a basis for
Provisional sum - lump sum items to cover some aspects of a project
valuing the completed work which cannot be measured in details at the time the tender
documents issued
Prime cost sum – a sum of money provided for work or services to be
executed by nominated subcontractor or nominated supplier
45
Bills of Quantities
Samples pages of
Bills of Quantities
46
Schedule of Rates
If the contract used is a lump
sum contract based on drawings
and specifications, no bills of
quantities will be prepared.
Instead, a schedule of rates with
approximate quantities will be
prepared for pricing purpose.
The use of Bills of

Quantities or Schedule of
Rates will be advised by
the Quantity Surveyor
Sample pages of Schedule of Rates

47
Procurement of Works with MiC Construction
• Technical and Fee selection criteria may be considered for MiC

construction such as higher technical weighting may be scored with
MiC experiences
• 2 stages Expression of Interest- Early involvement of contractors/ MiC
suppliers for submission of in-principal acceptance of MiC system
• Particular specification requirements for MiC Construction such as
mock up construction, method statement to explain the whole
construction process, off-site supervision, quality control of MiC
fabrication
48
Employment of Project Manager for TH development
For NGO with less experience in building construction

and tender procedures may employ a Project Manager as
NGO’s representative for managing the implementation
of the TH projects
49
Reference Material
Material Link Source
Form of Tender for Capital https://www.devb.gov.hk/filemanager/en/content_188/form_of_ten Development Bureau
Works Contract der.doc
General Conditions of https://www.devb.gov.hk/filemanager/en/content_188/gf541a.pdf Development Bureau

Contract for Building Works,
1999 Edition
General Specification for https://www.archsd.gov.hk/media/291197/gs2017.pdf Architectural Services
Building 2017 Edition Department
(effective from 1 October
2017)
General Conditions of Tender https://www.devb.gov.hk/filemanager/en/content_188/general_cond Development Bureau
itions_of_tender(31.5.2013).pdf
Guidance on Execution of https://www.devb.gov.hk/filemanager/technicalcirculars/en/upload/3 Development Bureau
Public Works Contracts as a 28/1/c-2014-07-01.pdf
Deed
AACSB Consultant List https://www.archsd.gov.hk/en/consultants- Architectural Services
contractors/consultants/list-of-consultants-of-aacsb/who-have-been- Department
included.aspx
EACSB Consultant List https://www.cedd.gov.hk/eng/publications/eacsb- Civil Engineering and
handbook/index.html Development Department
Housing Authority List of https://comis.housingauthority.gov.hk/ha/eng/ctp_list.jsp?LIST_CD=B Hong Kong Housing

Building Contractors LG&LIST_CAT_GRP_CD=BLG/NW/2 Authority
Development Bureau List of https://www.devb.gov.hk/Contractor.aspx?section=80&lang=1 Development Bureau
Contractors for Public Works
50
Thank you
51

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Preparation of Tender Documents and Contracts

for Professional Services and Building Contractors

By Mr. Anderson Leung of Urban Renewal Authority

For Project Planning Workshop for Transitional

• Hypothetical Programme (with planning application)

Stages of Works in Consultants or Contractors

• To prepare a Section 16 application to

• To provide technical support on the STT

Extracted from Outline Zoning Plan Extracted from website of LandsD

Employ under Employ each

• Single point of contact

• Less administration works in both

(i) Expression of Interest with /without shortlisting Notes:

Fee Only- for those tenders that

- List out the content of Tender Document:

- Tender assessment method (optional)

Sample page of Conditions of Tender

Sample page of Conditions of Tender

Sample page of Form of Tender

Agreement between NGO and tenderer

Sample page of Memorandum of Agreement

Sample pages of Conditions of Engagement

Comprehensive Planning Consultant

Architectural Landscape Traffic

Comprehensive Planning Consultant

- List of items included in fee such as

- Disbursement costs such as design

- Payment terms and schedule

- Expenditure of the contingency

Sample page of Payment Schedule

Main consultants deal with different stages of the project in

Design, tender, construction,

Registered Structural Engineer

Building Services Engineer (BSE) Quantity Surveyor (QS)

-monitoring site progress in building services aspects

Employ under Employ each

• Single point of contact

• Less administration works in both

(ii) Comparison of Design and Build and Traditional Approach

1. Higher price certainty 1. Unable to allow for early involvement of contractor

4. The Contractor bears higher risks, hindering his

(iii) Points to consider before adopting Design and Build:

• Difficult to draft a set of good and precise employer’s requirement for a

• Employer’s consultants may still be required to vet contractor’s design

• Design and build may end up with a higher price

(i) Selection of consultant list from

(ii) Assessment Criteria

(iii) Allowance for site staff

Assessment Submitted fee

Allowance for resident site staff

• Allowance for resident site staff (e.g. Clerk of

Main Contract Works

- More competitive price

Lump sum fixed price contract with Bills of Quantities

Pre-tender estimate will be more Risk of incorrect quantities of

Drawing and specification have a

Lump sum fixed price contract based on drawings

Longer time for tendering process

(i) tenderer’s list can be (ii) shortlisting can be • Assessment Criteria

It contains general rules that

• the content of a tender

Reference: General Conditions of Tender under

This part to be signed by the Description of Works