Part B – Tender Evaluation Report

1. Explanation on the three-stage process of evaluating these received tenders.

1.0 First Stage

Preparation need to be done by the evaluator before starting any tender evaluation process such as, the
evaluator must prepare the summary of tender in ascending order based on tender table prepared by
Tender Open Committee. Next, the evaluator will prepare tender analysis based on cut-off pricing. The
cut off level is considered as the lowest price by taking into consideration the current market price.
Therefore, the tender price is considered too low if its position is below than cut-off level and it possibly
will affect the contractors’ performance. Then, there will be a selection among the tenderers that need
to be evaluated. This is the process where the contractors will be selected by their best tenders which
reach the clients criteria, either the lowest-priced or the most economically advantageous tender and all
of the tenders that below the cut-off will be check and fill up Checklist of Compulsory Documents first.
Thus, the evaluator must prepare the analysis of percentage of price distribution and obtain agreement
from the tenderers which this process will carry out an arithmetic checking.

The tender evaluation process should be assessed in between 15 to 20 number of tenderer to produce
between 3 to 5 tenderer who will pass the evaluation process. The range of the tenderer that can be
selected is between +/- 20% (+/- 25% for Civil Engineering) from the Mean Price. But, for the tenderers
that below the cut-off will be checked the compulsory document first and for the tenderers who are
outside the cut-off to be referred to tender committee for consideration.

2.0 Second Stage

The objective of this stage is to ensure tenderers under consideration are reasonable, in compliance,
complete, have adequate and have good current work performance that free from sick project. The
second stage of evaluation is a system of evaluation based on predetermined conditions to ascertain
whether tenderers are eligible for further evaluation. There are criteria that need to be considered in
this evaluation stages which is the Analysis on Compliance to Tender, Analysis on Completeness of
tender documents, Analysis on Adequacy of Capital and Analysis on performance of current work.

1) Analysis on Compliance to Tender

It is only for tenderers who comply and free from any imperfection in term of legal and contractual
which may jeopardize their qualification based on current practice are to be considered. The evaluator
must check if form of the tender has been signed by the tenderers because the signing has been given
the right to sign the tender. Then, evaluator responsible to check if the tender price is stated in the form
of tender and to check if the PKK/CIDB registration of each tenderers are still valid. The evaluation
cannot be done if the tenderer did not return the basic document tender and any failure in submitting
the forms of tender may affect the ranking of tenderer. Simply put, full compliance means all material
conditions of a tender must be complied with and the price submitted should be based on the client’s
tender specification documents.

2) Analysis on Completeness of tender documents

It is a tender where need to be complete and comply to the requirement of tender. Some elements of
Completeness of Tender which taken into consideration are the Form of Tender must be signed, the
signature must be the authorized person, tender price must be stated in the Form of Tender,
registration with Contractor Services Center (PKK) or Construction Industry Development Board (CIDB)
must be valid and have stated the proposed completion period. Only tenders that complete and free
from any deficiency or mistakes which may affect the current contract practices in legal aspects, are
qualified to be considered. Tenderers which failed to do so, their tenders will be mentioned as
“INCOMPLETE” to the client and stated the reasons.

3) Analysis on Adequacy of capital

There is a calculation to these criteria which is:

Rolling capital = Asset Liability – Current Liability

Bank account must be average of latest 3 months. Then, make comparison between Rolling Capital
and Bank account and select the highest amount among the two. Next, evaluator must add the highest
amount between bank account and rolling capital with the credit facilities report and evaluators can get
the total liquidated capital (>3%). The analysis will be done on the company’s current assets, current
liability, bank account statement, fixed deposit, bonds, credit facilities from bankers or suppliers,
overdraft and bank loan. Hence, the company financial documents submitted by the tenderers will form
a basis proof for this evaluation aspect.

4) Analysis on performance of current work

On this process, evaluator work is still on progress during the tendering process which is at form D, G
and GA. The tenderers also must not have sick project that below 30% of work schedule and no
termination record. The performance of the tenderers will be checked through PKK, CIDB or JKR scale,
superintendence project report and T.K.S if there is no project on hand. In addition, it is important to
ensure that the tenderers do not have problems of employment’s determination by other client or
employers.

3.0 Third Stage

Stage 3 involves the overall evaluation of the short-listed tenderers and determination of the most
beneficial tender for recommendation. There are a few reasonable factors that need to be considered
by the evaluator in this stage which is financial capability and technical (work experience, technical staff
and machineries or plant). The financial capability is based on the total annum value of project predicted
to be provided from the tenderers various sources of finance. It is important to prove that the tenderer
has the financial capability to execute the project. Marks are given according to their financial capability.
Next is the technical capability for work experience and possession of basic plant and machinery.
Assessment is made based on their technical workers such as architects, engineers and quantity
surveyors. The tenderers need to submit the KWSP statement and photocopies of Certificates of
Workers Qualification to prove that they have qualified and enough number of technical workers to
execute the tendered works. The list of plant and machinery with supporting documents are also
required to submit for the evaluation.