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Tender Process &

Tender Documentation
1

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. 2

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• Tendering is the process by which bids are invited

from interested contractors to carry out specific
• Tendering
packages is of
the process by
construction which
work bids be
that must are invited
fromsubmitted
interested contractors to carry
within a finite deadline. out specific
packages of adopt
• It should construction work
and observe the that mustofbe
key values
submitted
fairness,within
clarity, a finite deadline.
simplicity and accountability, as
well as reinforce the idea that the apportionment
• It should
of riskadopt and observe
to the party best placedthe key values
to assess and of
fairness,
manage clarity, simplicity to
it is fundamental and
theaccountability,
success of a as
well project.
as reinforce the idea that the apportionment
3
of risk to the party best placed to assess and
manage it is fundamental to the success of a
project.
3

identifying project
▪ Stage 1: inception & feasibility –
objectives / set up project brief

develop further project brief / develop

▪ Stage 2: design –
concept & schematic design / Undertake detailed design
& detailing / prepare cost plan & budget
▪ Stage 1: inception & feasibility – identifying project
objectives / set up project brief
issue tender documents / prepare &
▪ Stage 3: tendering –
submit tender / evaluation of tender / award tenders /
prepare contract documents
▪ Stage 2: design – develop further project brief / develop
concept & schematic design / Undertake detailed design
& detailing / prepare cost plan & budget 4

issue tender documents / prepare &

▪ Stage 3: tendering –
submit tender / evaluation of tender / award tenders /
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prepare contract documents

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site possession & mobilization /

▪ Stage 4: construction –
undertake procurement fabrication, installation,
construction / carry out contract admin
▪ Stage 5: handover & maintenance – undertake all
testing, commissioning & training / obtain CF /
handover project to owner /carry out necessary
▪ Stage 4: construction
maintenance site possession
/ Defect– rectification /& mobilization /
etc
undertake procurement fabrication, installation,
construction / carry out contract admin
undertake all
▪ Stage 5: handover & maintenance –
testing, commissioning & training / obtain CF /
handover project to owner /carry out necessary
maintenance / Defect rectification / etc
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TENDERING PROCESS
Start after the design complete and project budget
approved.
TENDERING
The processPROCESS
that is used to obtain offers
leading to a contract between:
Start after the design complete and project budget
approved.
client contractor
The process that is used to obtain offers
leading to a contract between:
client consultant
main contractor sub-contractor
client contractor

client consultant
main contractor sub-contractor
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▪ To select a suitable contractor at a time

appropriate to the situation of the project.

▪ To obtain from the contractor selected at

the proper time, an acceptable tender or
offer upon which a contract can be let.
▪ To select a suitable contractor at a time
appropriate to the situation of the project.

▪ To obtain from the contractor selected at 7

the proper time, an acceptable tender or

offer upon which a contract can be let.

DIFFERENCE BETWEEN
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A CONTRACT VS A TENDER

‘Tender' means an invitation to trade under

DIFFERENCE
The term
BETWEEN
the terms on offer. 'Contract' refers to any agreement
A CONTRACT
entered VSand another
into between the buyer A TENDER
party.

▪A
The term ‘Tender'
TENDER formally means
means an an toinvitation
invitation trade underto trade
under the terms of offer.
the terms on offer. 'Contract' refers to any agreement
entered into between the buyer and another party.

▪ A CONTRACT is the term used for when the parties

have reachedformally
▪ A TENDER agreement.
means an invitation to trade 8
under the terms of offer.

▪ A CONTRACT is the term used for when the parties

have reached agreement. 8

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▪ THE THE

▪ THE THE

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PRINCIPAL ACTIVITIES
1. Selection of the most preferable or
appropriate procurement route & contractual
PRINCIPAL ACTIVITIES
arrangement & tender strategies
2. Approval for tendering
Preparation
1.3. Selection of tender
of the documentation
most preferable or
4. appropriate
Invitation &procurement route
issuing tender & contractual
document
arrangement & tender strategies
5. Preparation and submission of tenders
2. Approval for tendering
3. Preparation of tender documentation 10

4. Invitation & issuing tender document

5. Preparation and submission of tenders

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PRINCIPAL ACTIVITIES (CONT’D)

6. 0pening of tender &
Evaluation of tenders
Next
7. Acceptance of tender week
award or award
PRINCIPAL of contract
ACTIVITIES (CONT’D)
6. 0pening of tender &
Evaluation of tenders
Next
7. Acceptance of tender week
award or award of contract 11

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Stage 1: Stage 2: Stage 3:

PREPARATION APPROVAL TO DOCUMENTATION
TENDER

Stage 6: Stage 5: Stage 4:

Stage 1:
TENDER Stage 2: Stage 3:
TENDER INVITATION &
EVALUATION
PREPARATION SUBMISSION
APPROVAL TO ISSUING THE
DOCUMENTATION
TENDER TENDER DOCUMENT

Stage 6: Stage 7:
Stage 5: Stage 4:
TENDER AWARD
CONTRACT TENDER INVITATION &
EVALUATION SUBMISSION ISSUING THE
TENDER DOCUMENT 12

Stage 7:
AWARD
CONTRACT
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STAGE 1:

STAGE 1:
▪ Traditional
▪ Longer time – lead to critical work scheduling
▪ Less errors – more precise

▪ Fast-track
▪ Shorter time
▪ Consequences – may be lead to critical error, variation.
▪ Traditional
▪ Longer time – lead
1. Discussion andto criticalon
decision work
typescheduling
of contractual arrangement to be used.
▪ Less errors – more
2. Selection precise
of tender strategies :
▪ Fast-tracka) Open
b) Selective
▪ Shorter time
c) Negotiate
▪ Consequences – may be lead to critical error, variation.
3. Parties involved: CLIENT, CONSULTANT, PROJECT MANAGER
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1. Discussion and decision on type of contractual arrangement to be used.
2. Selection of tender strategies :
a) Open
b) Selective
c) Negotiate
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3. Parties involved: CLIENT, CONSULTANT, PROJECT MANAGER
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STAGE 2

▪ Getting approval for tenders

STAGE 2
▪ Employer may develop a tenderers list if the
chosen route is selective tendering

▪ Getting approval for tenders

▪ Employer may develop a tenderers list if the
chosen route is selective tendering

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STAGE 3

▪ Letter of invitation
▪ Checklist for submission of tender/ Instruction to
Tenderer
A Typical Tender ▪ Articles of agreement
Document
▪ Conditions of contract
STAGE 3
- Table Of Contents
▪ Form of tender
▪ Tender specifications
▪ Bills of quantities
▪ Letter of invitation
▪ Tender drawings
▪ Checklist for submission of tender/ Instruction to
▪ Sample
Tenderer copy of letter of acceptance
A Typical Tender ▪ ▪Sample
Articlescopy of bang guarantee for performance
of agreement
Document bond
▪ Conditions of contract
- Table Of Contents ▪ Schedule of day work rates
▪ Form of tender
▪ Sample copy bank guarantee for advance
Tender specifications
▪payment
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▪ Bills of quantities
▪ Tender drawings
▪ Sample copy of letter of acceptance
▪ Sample copy of bang guarantee for performance
bond
▪ Schedule of day work rates
15
▪ Sample copy bank guarantee for advance
payment 15

▪ Final completion of drawings, specification,

measurement / take-off process.
▪ Choose conditions of contract.
▪ Parties involved: architect, engineers, QS, client,
project manager

▪ Final completion of drawings, specification,

measurement / take-off process.
▪ Choose conditions of contract.
▪ Parties involved: architect, engineers, QS, client,
project manager 16

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CONTRACT BASED ON
TENDER & SPECS
Compilation of:
CONTRACT BASED ON QUANTITIES ◼ Letter of invitation to
▪ Compilation of: tenderers
▪ Letter of invitation to ◼ Articles of agreement /
tenderers CONTRACT BASED ON
conditions of contract
▪ Articles of agreement / TENDER & SPECS
◼ Form of tender
conditions of contract ◼ Form of tenderer’s details.

▪ Form of tender
i.e: contractor’s registration,
Compilation organization
of:
CONTRACT BASED▪ Form QUANTITIES
ONof tenderer’s details. ◼ Letter of invitation
record
background, track
(past to
and present
i.e:
▪ Compilation of: contractor’s registration, tenderersprojects)
organization background, track ◼ Articles of agreement
◼ Letter /
of acceptance
▪ Letter ofrecord
invitation
(pasttoand present
tenderersprojects) conditions
◼ Bank of and
contract
insurance guarantee
▪ Articles▪ of agreement / forms
◼ Form of tender (performance bond)
Letter of acceptance
conditions of contract ◼ Form ◼ofBank and insurance
tenderer’s guarantee
details.
▪ Bank and insurance guarantee forms (advance
i.e: contractor’s payments)
registration,
▪ Form of tender
forms (performance bond) organization background, track
◼ Specifications
▪ Form of▪ tenderer’s details. guarantee
Bank and insurance record◼ (past
Summaryand of
present
tender
i.e: contractor’s registration,
forms (advance payments) projects)
organization background, track ◼ Schedule of rates
▪ Specifications ◼ Letter of acceptance
record (past and present ◼ Relevant drawings
projects)▪ Bills of quantities ◼ Bank and insurance guarantee
Relevant drawings forms (performance bond) 17
▪ Letter of acceptance
▪
◼ Bank and insurance guarantee
▪ Bank and insurance guarantee forms (advance payments)
forms (performance bond) ◼ Specifications
▪ Bank and insurance guarantee ◼ Summary of tender
forms (advance payments)
◼ Schedule of rates
▪ Specifications
17 ◼ Relevant drawings
▪ Bills of quantities
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▪ Relevant drawings

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TENDER TABLE DOCUMENTS

TENDER TABLE
A master DOCUMENTS
copy of tender document put on
display at the main office of client.
A master copy of tender document put on
Purpose
display at the main office of client.
The need to keep the tender documentation minimal
Purpose
To make the tender documents manageable
and not unwieldy in terms of content and bulk
The need to keep the tender documentation minimal
To ensure that the tendered are furnished with only relevant
To make the tender
and essential documents
information manageable
to enable them to submit a clear
andoffer
not unwieldy in terms of content and bulk
To ensure
To easethat the tendered
the production and are furnished
logistical burden with
on only
the relevant
andemployer’s
essential tendering
informationteam especially
to enable for large
them and a clear
to submit
complex projects involving extensive documentation and at
offer
a number of tenderers
To ease the production and logistical burden on the
employer’s tendering team especially for large and
complex projects involving extensive documentation and at
a number of tenderers
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STAGE 4

STAGE 4
▪ Based on selection of tendering methods

▪ Open / competitive / bid tender – produce tender

notice
▪ Selective – shot listed contractors will be invited
▪ Basedto tender if they wish
on selection of tendering methods
▪ Negotiated – only one contractor is approached-
direct entry to project
▪ Open / competitive / bid tender – produce tender
notice
▪ Selective – shot listed contractors will be invited 21

to tender if they wish

▪ Negotiated – only one contractor is approached-
direct entry to project
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STAGE 4 21

▪ Invitation to tender is a stage to invite suitable

tenderers to be invited to submit their tender base on
STAGE 4
the employer’s requirements as set out in the tender
document.

▪ Invitation for tendering depends on the type of tender

and the nature of project; large contracts require
advertising (open tender)
▪ Invitation to tender is a stage to invite suitable
tenderers to be invited to submit their tender base on
▪theThe number ofrequirements
employer’s firm to be invited willout
as set depend
in theon the
tender
document.
size and type of contract.

▪ Invitation for tendering depends on the type of tender

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and the nature of project; large contracts require

advertising (open tender)

▪ The number of firm to be invited will depend on the

size and type of contract. 11

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PRE- REQUISITES PRIOR TO

INVITATION !!
PRE- REQUISITES
The invitation PRIOR
to tender stage should TO unless
not be initiated
the conditions precedent have been satisfactorily fulfilled.
INVITATION !!
1. All necessary tender documents must be prepared, checked and
The approved
invitationby
tothe
tender stage should
professional not employer.
team and be initiated unless
the conditions precedent have been satisfactorily fulfilled.
2. Procedure of the following stages should be established with the
consent of the employer ( invitation, receipt, evaluation and
1. Allacceptance
necessary of
tender documents must be prepared, checked and
tender)
approved by the professional team and employer.
3. Source of funding identified and project financing put in place.
2. Procedure of the following stages should be established with the
consent of the employer ( invitation, receipt, evaluation and
acceptance of tender)

3. Source of funding identified and project financing put in place.

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OPEN / COMPETITIVE TENDER

– PRODUCE TENDER NOTICE
✓The Tender Notice is a brief description of the job being
OPEN / COMPETITIVE
tendered which is to TENDER
be published in Newspapers and
– PRODUCE TENDER NOTICE
on the Internet.
✓The Internet is a very cost effective way of publishing
the Tender
✓The tenders.Notice is a brief description of the job being
tendered which is to be published in Newspapers and
on the Internet.
OPEN Invitation categories;
✓The Internet is a very cost effective way of publishing
the
1. tenders.
Open Unrestricted invitation to ‘public at large’
2. Open invitation to certain class /section of public
OPEN Invitation categories;
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1. Open Unrestricted invitation to ‘public at large’

2. Open invitation to certain class /section of public

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a. Name of the Project. i. Date on which the Tender

b. Name & Address of the Document sale commences.
Company floating the tender. j. Date and time up to which
c. Name of work, materials or tender documents can be
services. obtained.

d. Place of work location. k. The cost of tender

a. Name of the Project. i. documents.
Date on which the Tender
e. Approximate estimated cost Document sale commences.
b. Name & Address of the l. The date and time up to
of work. floating the tender.
Company j. which the time
Date and tenders towhich
up to be
f. Earnest Money. submitted and are to
tender documents canbebe
c. Name of work, materials or
services. opened.
obtained.
g. Period of completion.
Placeon
d.Date ofwhich
work location. k.Specification.
m. The cost of tender
h. the Tender
documents.
Document sale commences.
e. Approximate estimated cost n. Eligibility Criterion.
of work. l. The date and time up to
which the tenders to be 25
f. Earnest Money. submitted and are to be
opened.
g. Period of completion.
m.Specification.
h. Date on which the Tender
Document sale commences. n. Eligibility Criterion.
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TENDER ADVERTISEMENT /NOTICE

Various methods used to invite tenderers.

TENDER ADVERTISEMENT /NOTICE
Flyers
Advertisement in newspaper, journals
Broadcasting
Various methodsmedia (television,
used to radio)
invite tenderers.
Posting
Flyers notice on the internet
Through advertising
Advertisement firms
in newspaper, journals
Broadcasting media (television, radio)
Posting notice on the internet
Through advertising firms

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TYPICAL CONTENT OF ADVERTISEMENT/NOTICE

Details of the
project Details of
Tender number Registration documentation
requirements fees Details of
Tender title
for tenderers The quantum of submission of
Brief description
the fees tender
of work
Mode of Place to submit
Location of
project TYPICAL CONTENT OF ADVERTISEMENT/NOTICE
Details of the
payment
(cheque, bank
tender
Date and time
Employer’s procurement of the draft, postal
Details to submit
detailsof the tender documents order)
project Details of tender
Tenderofnumber Office to collect
Registration Details of
documentation Mode of
Details site
documents
requirements beneficiary
fees submission
Details of
visit
Tender title
forand
Date tenderers
time to Any quantum
The additionalof submission of
Penalty for late
Date
Briefof site visit
description
collect the levyfees
the tender
submission
of work
Time of site visit
documents Mode of Place to submit
Location
Place of of
Any pre-requisites to payment tender
project for
assembly
Details(Eg:
collection of the
letter of (cheque, bank Date and time
briefing
Employer’s procurement
authorization) of the draft, postal to submit
details tender documents order) tender
Office to collect Details of Mode of
Details of site
documents beneficiary submission
visit
Date and time to Any additional Penalty for late
Date of site visit
collect the levy submission
Time of site visit
documents
27 Place of
Any pre-requisites to
assembly for
collection (Eg: letter of
briefing
authorization)

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ISSUING OF TENDER DOCUMENTS

Job of the Quantity surveyor on behalf of the client.

Pre- condition to issuance.

1. Tenderers have the necessary registration stipulated in the tender notice

and still valid

ISSUING OF TENDER DOCUMENTS

2. Tenderer’s representative has the authority to collect the documents.

3. Documentation fees has been paid (amount, beneficiary, mode of

Job of the Quantity surveyor on behalf of the client.
payment)

4. If site visit is compulsory prior to the collection of tender, then it has to be

Pre- condition to issuance.
satisfactorily met.
1. Tenderers have the necessary registration stipulated in the tender notice
and still valid

2. Tenderer’s representative has the authority to collect the documents.

3. Documentation fees has been paid (amount, beneficiary, mode of

payment)
31 4. If site visit is compulsory prior to the collection of tender, then it has to be
satisfactorily met. Details of
documents
issued (tender
number,
DATE AND description)
TIME FOR
SUBMITTING Identity of issuer
TENDER

Details of
Details
documents
recorded
issued (tender
during the
Whether all number,
issuance of Details of
conditions DATE AND description)
tender tenderer /
have beenTIME FOR documents
SUBMITTING Person
Identity of issuer
satisfied (site
TENDER collecting it
visit, fees)

Details
recorded
Date and time during the Tenderers
Whether all
for issuance of issuance of registration Details of
conditions tender
have been
tender details (check tenderer /
documents Person
satisfied (site document validity)
collecting it
visit, fees)

Date and time Tenderers

for issuance of registration
tender details (check
document validity)
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TENDERING PERIOD

Begins from the collection of tender documents by tenderers to the

submission of tender documents.
TENDERING PERIOD
Contractors will start to prepare the tenders for submission that is
formulated and perfected for the possible acceptance by the
employer.
Begins from the collection of tender documents by tenderers to the
A fair and of
submission reasonable tendering period commensurate with the
tender documents.
nature and complexity of the works involved should be estimated
Contractors will start to prepare the tenders for submission that is
and allocated.
formulated and perfected for the possible acceptance by the
employer.

A fair and reasonable tendering period commensurate with the

33 nature and complexity of the works involved should be estimated

TENDERING PERIOD
and allocated.

Queries, discrepancy, and ambiguity need clarification

from the employer before preparation of their bid.

TENDERING PERIOD
Clarification process must be formalized, standardize
and notified to all tenderers by issuing addendum.
Queries, discrepancy, and ambiguity need clarification
from the employer before preparation of their bid.

Clarification process must be formalized, standardize

and notified to all tenderers by issuing addendum.

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SITE VISIT
Necessary before tender submission
to obtain a more competitive and
realistic bid involving proper

SITE VISIT
assessment of risk associated with
site and its conditions.
Necessary before tender submission
to obtain a more competitive and
Tenderers will be briefed on a few
realistic
mattersbid involving proper
assessment of risk associated with
1. Nature of work and overview of
site and its conditions.
project

2. Significant
Tenderers will be matter
briefedon
onsite
a few
matters

1. Nature of work and overview of

project
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SITE VISIT ISSUES
2. Significant matter on site

▪ Surface and ground

▪ Site access (presence of
conditions
squatters)
▪ Availability of resources
SITE VISIT ISSUES▪ Weather condition
▪ Possible restrictions or

obstructions (trees,
buildings) ▪ Any particular
Surface local
and ground
▪ Site access (presence of
authority
conditionsregulations
Site boundary condition
▪ squatters)
▪▪ Availability
Availability of
of resources
▪ Presence of utilities
▪ Possible restrictions or
accommodation for
Site topography
▪ obstructions ▪ Weather condition
(trees, laborer's
▪ Any particular local
buildings)
authority regulations
▪ Site boundary condition
▪ Availability of
▪ Presence of utilities
accommodation for 18
▪ Site topography
laborer's

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EXTENSION TO TENDERING PERIOD

Essential if there are compelling reasons such as:
1. Issue of addenda at a very late stage of tendering
period

2. Addenda issue drastically change the nature or extent

of works.

3. Presence of uncertainty

4. Original tender period is unreasonable

5. Specialist work involving foreign manufactures

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