Lecture no.

Engr. M. Nouman,
Lecturer, CED, SUIT.
Email: mnouman.civil@suit.edu.pk
• When carrying out tendering, a public body can evaluate tenders by either;
1. Lowest Price approach.
2. The MEAT (most economically advantageous tender) approach.

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1. Lowest Price approach:
• The lowest price approach is generally only suitable for;
• Simple procurements.
• Low-level construction e.g. some primary schools.
• Goods of a standard specification or clearly specified product e.g. stationery or
machinery.

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2. The MEAT (most economically advantageous tender) approach:
• This is a method of assessment that can be used as the selection procedure for
publicly-procured contracts, in which the contract is awarded based on different
aspects of the tender submission rather than just price.
• Once an authority has determined that it is appropriate to use MEAT to evaluate its
tenderer, it needs to decide the weighting split between quality and costs.
• There are no fixed or generally recommended splits. This is a matter for each
public body to decide having considered the requirements of each individual
procurement/project.
• For example, a very restricted budget combined with a clear and detailed
statement of requirements may be more suitable to a higher price weighting.

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2. The MEAT (most economically advantageous tender) approach:
• Where the level of service to be delivered is key to the public body, such as for
many consultancy services, it is likely that quality would have the higher weighting.
• In case of MEAT approach, a single stage two envelope procedure (SSTE) of tender
evaluation can then be used.
• The first step is a technical evaluation (of technical bid/proposal) which uses
individual weighted criteria to assess the technical merit of the tenders.
• The second step is a financial evaluation (of financial bid/proposal) which
calculates the relative cost of each tender compared to the lowest price offered.
• Finally, the tenders are ranked based on the aggregate scores.

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2. The MEAT (most economically advantageous tender) approach:
§ Possible criteria to assess quality:-
• There is no definitive list of quality criteria that should be applied to all
procurements, but they must be linked to the subject matter of the contract i.e.
directly related and proportionate to the contracting authority's requirements.
• The following may be appropriate;
a. Past Experience.
b. Equipment capabilities.
c. Financial status.
d. Performance standards, quality control, self monitoring and complaints.

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2. The MEAT (most economically advantageous tender) approach:
§ Possible criteria to assess quality:-
e. Skill level of the workforce.
f. Track record from previous clients.
g. Delivery period.
h. Customer care policies.

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A. GENERAL EXPERIENCE
S. No. Description Marks Explanation for Marks Obtained
Assigned
a) Projects of similar nature and complexity Completed 15 12 Marks are given if the contractor has completed at least 3 projects of similar
in last ten years. (Each of min. 8-Storeyed Building nature in last ten years.
Work). No Marks are awarded for works less than • For less than 3 projects completed use the following weightage 12 x (A/3)
specified limits. • For more than 3 projects but less than 6 projects completed use the following
weightage.
2. The MEAT (most economically advantageous tender) approach: 12+ (A/6) x 3
• A = No of projects of similar nature Completed in last ten years
i. GENERAL EXPERIENCE:- • Full Marks are given in case of 6 projects or more

b) Projects of similar nature and complexity in-hand
during last ten years. (Each of min. 8-Storeyed Building
Work). No Marks are awarded for works less than
specified limits.
10 8 Marks are given if the contractor has 3 projects of similar nature in-hand.
• For less than 3 projects in-hand use the following weightage. 8 x (A/3)
• For more than 3 projects but less than 6 projects in-hand use the following
weightage 8+ (A/6) x 2
• A = No of projects of similar nature In-hand during last ten years
• Full Marks are given in case of 6 projects or more

c) Electrical works carried out during last five years by
the Sub-Contractor/JV Partner.
5 4 Marks are given if the contractor has completed at least 3 projects of similar
nature in last five years.
• For less than 3 projects completed, use the following weightage 4 x (A/3)
• For more than 3 projects but less than 6 projects completed use the following
weightage 4+(A/6) x1
• A = No of projects of similar nature Completed in last five years
• Full Marks are given in case of 6 projects or more.

d) Enlistment record with Government organizations & 5 1 Mark for each enlistment up to maximum of five enlistments.
other agencies.

Total Marks Allocated

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B. PERSONAL CAPABILITIES
S.No. Description
i) B.Sc. Engineers registered with
Pakistan Engineering Council (PEC)
2. The MEAT (most economically
advantageous tender) approach:
i. GENERAL EXPERIENCE:-
Marks Explanation for Marks Obtained
Assigned
9 Experience (3-Marks) :
• 3 Marks will be given if the individual experience of at least 4 no. of B.Sc.
Engineers (professional) is equal to 15 years or above.
• For less than 4 no of B.Sc. Engineers having individual experience of 15 years,
marks will be given as per following formula = (A/4) * 3
• A = No. of Engineers having individual experience of 15 years or above.
Strength of Engineers (6 Marks)
• 6 Marks will be given if the total no. of Engineers registered with PEC are 15
nos. or above.
• For less than 15 no of B.Sc. Engineers registered with PEC marks will be given
as per following formula = (A/15) * 6
• A = No. of Engineers

ii) Associates Engineers (DAE) 6 Experience (2-Marks) :

• 2 Marks will be given if the individual experience of at least 8 no. of Associates
Engineers (DAE) is equal to 10 years or above.
• For less than 8 no of Associates Engineers (DAE) having individual experience
of 10 years, marks will be given as per following formulas: = (A/8) * 2
• A = No. of DAE Engineers.
Strength of Associate Engineers (4 Marks)
• 4 Marks will be given if the total no. of Associate Engineers (DAE) are 20 nos. or
above.
• For less than 20 no of Associate Engineers marks will be given as per following
formulas: = (A/20) * 4
A = No. of Associate Engineers

Total Marks Allocated 15

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C. EQUIPMENT CAPABILITIES
S.No. Description Marks Explanation for Marks Obtained
Assigned
1 Batching Plant (30cu-m/hr Cap.) 10 8 Marks for each equipment are given if the Contractor
2 Concrete Pump 10 m e e t s t h e m i n i m u m re q u i re m e n t s g ive n i n t h e
3 The MEAT (most economically
2. Mobile (30 Ton Cap.)
Crane 10 prequalification document for each item.
advantageous tender) approach:
4 Crane Tower (30 M Boom) 10 • If the available quantity of each equipment is less than
i. GENERAL EXPERIENCE:-
Dumper Trucks
5 10 specified limit give weightage as 8 x (A / Required Quantity)
6 Shower/ Loader/ Backhoe 10 • If the available quantity of each equipment is more than the
7 Steel cutting & Bending Machine 10 minimum equipment requirement full marks will be given.
8 Concrete Transit Mixer (6 cu-m/hr) 10 • A = Available quantity of each equipment of each Item.
9 Cabin Hoist (1500 Kg Cap.) 10 • Total Marks = (Marks Obtained/120) * 20
10 Air Compressor (15 HP Cap.) 10
11 Form Work 10
12 Scaffolding Pipe 10
Total Marks Allocated 20
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D. FINANCIAL SOUNDNESS
S.No. Description
a) Available Bank Credit Line
b) 2.
Working The MEAT (most
Capital in last 3
5 economically
years
advantageous tender) approach:
i. GENERAL EXPERIENCE:-
c) Registration with income tax
department
d) Copy of Valid electrical
license from Sub-Contractor/
JV Partner
e) Litigation History in which
Decision has been given
against the firm(s)
f) Blacklisting from any agency
Total Marks Allocated
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Marks Explanation for Marks Obtained
Assigned
5 3 Marks are given if the available bank credit line limit is equal to 500 Million.
• For limit less than 500 Million, use following weightage 3 x (A/500)
• For the limit more than 50O million but less than 1000 million use following 3 + (A/1000) x 2
A= Available Bank Credit Line Limit
• Full Marks are given in case of limit is 1000 million or more.
3 Marks are given if the available average working capital for last three years is equal to 500 Million.
• For the capital less than 500 million use following weightage 3 x (A/500)
• For the capital more than 500 million but less than 1000 million use following 3+ (500/A) x 2
A= Average working capital in last three years.
• Full Marks are given in case of limit is 1000 million or more.
5 No points will be given if income tax certificate is not attached and 5 points will be added in case of
valid certificate
5 No points will be given if license is not attached and 5 points will be added in case of valid license
5 In case the firm is involved in any litigation, no marks will be given and 5 points will be added in case
affidavit of no litigation is attached
5 In case the firm is blacklisted, no marks will be given and 5 points will be added in case affidavit by
the company that it has not been black listed is attached.
30
11
2. Example:
A. General experience (36 marks maximum):-
• Projects of similar nature and complexity Completed = 5

• Projects of similar nature and complexity in-hand = 4

• Electrical works carried out during last five years by the Sub-Contractor/JV Partner = 5

• Enlistment record with Gover nment Organizations & other agencies = Enlisted with 7
departments.
• Personnel Capabilities (15 marks maximum):-

• No. of B.Sc. Engineers registered with Pakistan Engineering Council (PEC) having 15 years’
experience = 10
• Associates Engineers (DAE) having 10 years’ experience = 15

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2. Example:
C. Equipment Capability (20 marks maximum):-
• Equipment’s capabilities of the contractor meet the minimum requirements given in the
prequalification document.

D. Financial Soundness (30 marks maximum):-

• Available Bank Credit Line = 700 millions
• Working Capital in last 3 years = 800 millions
• Contractor has registration with income tax department, also a valid electrical license
from Sub-Contractor/ JV Partner, clear Litigation history and not blacklisted from any
agency.

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Description No. Score

a) General Experience
Projects of similar nature and complexity Completed in last ten years. (Each of min. 8-Storeyed 5 14.5
Building Work) No Marks are awarded for works less than specified limits.
Projects of similar nature and complexity in-hand during last ten years. (Each of min. 8-Storeyed 4 9.3
Building Work) No Marks are awarded for works less than specified limits.
Electrical works carried out during last five years by the Sub-Contractor/JV Partner 5 4.8
Enlistment record with Government Organizations & other agencies 7 5.0
33.7
b) Personnel Capabilities
B.Sc Engineers registered with Pakistan Engineering Council (PEC) 10 7.0
Associates Engineers (DAE) 15 5.0
12.0
c) Equipment Capability
As per minimum 16.0
requirements

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Description No. Score

d) Financial Soundness

Available Bank Credit Line 700 M 4.6

Working Capital in last 3 years 800M 4.4
Registration with income tax department 5.0
Copy of Valid electrical license from Sub-Contractor/ JV Partner 5.0

Litigation History in which Decision has been given against the firm(s) 5.0

Blacklisting from any agency 5.0

29.0
Total Bid Score 90.7

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