BIDDING PREPARATION

Bidding process

Contractor Contract
Preparation
selection signing
Preparation stage
Goal: To prepare the premises to select a contractor that meets the
requirements of the bidding package
Preparation for a package within the project
Not for the entire project
Conducted after the project's bidding plan is approved or after the
relevant bidding package has been completed.

Pre-qualification/ Prepare bidding

Clarify the Owner's
Personnel preparation short list invitation
needs
determination documents.
 Personnel Clarify the Owner's Pre-qualification/ Prepare bidding
invitation
preparation needs short list determination
documents.

- Preparing personnel to conduct bidding for a bidding package

 Forming a group of personnel responsible for organizing the
selection of contractors (Bidder)
- By three ways:
◦ A specialized department available in the Owner's organizational
structure or agencies under the Owner's management
◦ A professional bidding consulting organization hired by the investor
to help the investor select contractors
◦ Mix: from Investor's personnel and hiring more consultants.
 Personnel Clarify the Owner's Pre-qualification/ Prepare bidding
invitation
preparation needs short list determination
documents.

-Requirements:
◦ Professional qualifications suitable to the characteristics of the bidding
package,
◦ Understanding of bidding activities in general and specific regulations on
bidding of capital-owning organizations for bidding packages,
◦ No relationship of interests with contractors and having professional ethics
(doing the work objectively, not being influenced by contractors, even from
the Owner),
◦ Must be properly trained in the profession of bidding organization (some
countries require a license/practice certificate).
 Clarify the
Pre-qualification/ Prepare bidding
Personnel preparation Owner's short list invitation documents.
needs

 SMART goals
 5 Rights: Quality, Quantity,
The Bidder clearly
Price, Place, Time understands what
 Project log frame the Owner needs
from the Contractor
 Identify needs:
o Bottom up
o Top down
o Combine
 Pre- Prepare bidding
Personnel Clarify the Owner's
preparation needs qualification invitation
documents.
/ short list

Pre-qualification
◦ carried out before organizing bidding
◦ select qualified and experienced bidders to invite in bidding
◦ complex technical requirements or large scale bidding
packages
◦ open bidding with pre-qualification packages
◦ save time and costs, increase attractiveness for qualified
bidders
 Pre- Prepare bidding
Personnel Clarify the Owner's
preparation needs qualification invitation
documents.
/ short list

Pre-qualification process

Prepare pre- Notice of Release of pre-

qualification invitation for qualification
documents prequalification documents

Announcement of Evaluate Receive

pre-qualification application application
results documents documents
 Pre- Prepare bidding
Personnel Clarify the Owner's
preparation needs qualification invitation
documents.
/ short list

Short list
◦ for limited bidding packages
◦ the bid solicitor prepares a short list of capable and
willing bidders allowed to participate in the bidding
◦ must be posted publicly before releasing the Bidding
Documents.
 Prepare
Personnel Clarify the Owner's Pre-qualification/ short bidding
preparation needs list invitation
documents

Bidding invitation documents

◦ all documents used for open bidding and limited bidding,
◦ including requirements for a project or bidding package,
◦ as a basis for bidders to prepare bid documents and for
the bid solicitor to organize the evaluation of bids to
select contractors
 Prepare
Personnel Clarify the Owner's Pre-qualification/ short bidding
preparation needs list invitation
documents

Bidding invitation documents include:

◦ Notice of invitation to bid;
◦ Requirements related to goods and services being bid;
◦ Methods of evaluating, comparing, ranking and selecting contractors;
◦ Other instructions related to bidding.

Tenderers: to prepare bid documents

Bid solicitor: to evaluate bids to select contractors

 Prepare
Personnel Clarify the Owner's Pre-qualification/ short bidding
preparation needs list invitation
documents

Notes
◦ Accurate, consistent,
◦ The requirements need to be complete, clear, specific and feasible
◦ Avoid requirements that are too general, causing misunderstandings
◦ Clearly state what criteria, other than price, will be considered when
evaluating bids, and how those criteria will be quantified or
evaluated.