ECM306 – CIVIL

ENGINEERING
QUANTITIES

CHAPTER 1: Introduction to
Basic Civil Engineering
Quantities
 Learning Outcomes

 By the end of this session, the students are

able to:
- list, define and explain
 open tender
close tender
negotiation tender
 1.1 – Types of 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

 Three types of tender:

1) Open Tender
2) Close Tender / Selected Tender
3) Negotiated Tender
 1) OPEN TENDER

 Open to all qualified contractors registered under

same class
 The invitation to tender is usually advertised through
newspaper, journal, and etc.
 Advantages of Open Tender:
 Less possibility of contractors to quote higher price for
the project
 Possibility to achieve lowest tender sum as it ensures
maximum competition
 Chances to new and inexperience contractors to bid for
the tender
Disadvantages of Open Tender:

 Consume a lot of time during tendering process :

advertising, selection, awarded, etc..
 Tenders may be received from firms who neither have
the necessary financial resource nor technical
knowledge and experience of the class of work involved.
 There is a risk that the contract may be awarded to an
unscrupulous contractor
 Increase time and financial expenses, as a lot of tender
needs to be evaluated
 A lot of wastage as unknown copies of tender
documents has to be prepared
 2) CLOSE TENDER

 Only offer to contractors who are short-listed

according to particular criteria
 Selected contractors chosen base on their
experiences, past performance (pre-requisites).
Normally less than 10 contractors are invited to
tender
 Normally used for fast tract projects or for security
purposes and specialist works
Advantages of Close Tender:

 Only qualified contractors can participate

 The contractor record of previous performance
provides a great magnitude of reliability in term of
financial, technical and experience aspects
 Saving of time and money
 Normally the quality of work from the contractor is
satisfactory
 It is suitable for project require certain level of
efficiency, skill and experience from the contractor
Disadvantages of Close Tender:

 Officers involve in the tendering process may be

biased to a particular contractor
 Tender prices may be higher, as other qualified
tenderer who may be able to quote lower price are
not invite to tender
 There are possibility of contractors “ganging up” or
existence of “cost syndicate” to quote at higher
tender sum
 No opportunities to the new contractor to gains an
experiences
Types of Closed Tender

 Close Tender Offer Only To Bumiputra

Offers only to bumiputra, who fulfil the conditions
such as classification of contractor, paid up capital,
and expertise
 Close Tender Offer Through Selection
Offer to contractor who is reliable of accomplishing
the job satisfactory
 Close Tender Offer Through Pre-Qualification
Normally is applied in huge and complex project,
which require contractor specialisation in their field
 3) NEGOTIATION TENDER

 The tender is directly offered to short-listed

contractor
 Usually proceeds and follows by discussion, and
negotiation for ultimate contract sum, form of
contract to be used, construction programme and
method of carrying out the work
 Usually advisable in special circumstances ( Please
refer to full notes)
Advantages of Negotiation Tender:

 As the contractor performance was based on the

previous record, financial, experience and
equipment, there is no possibility delaying the
project
 Since only one contractor is invited, negotiation can
be easily dealt with; and it saves a lot of time and
money compares with other type of tenders
 Normally the quality of work from the contractor is
satisfactory
Disadvantages of Negotiation Tender:

 Officer inviting tender can be accused of being biased

 Normally new and inexperience contractors are not
invited
 Entry Test

Name: ………………………………..
Student ID:………………………….
Group:…………………………………

1) State three advantages of Open Tender.

2) i) Describe briefly about Negotiated Tender.

ii) When is it advisable to use negotiated tender?

3) List down and explain three types of Close Tender