Tendering process

Specialist topics
Dr. Ghlaib Abbasi
Contract management process
Abd Al_Rahman Qasaymeh
ID# 8191007
What is a tender?
• It is an invitation from the owner to the contractor to execute some
work at specified cost in specified time. It is published in the form of
tender notice in newspapers, notice boards, gussets, etc. according
to the cost of works.
What is tendering process
• Owner definition: It is the process of invite contractors to submit their
offers to provide certain products or services

• Contractor definition: it is the process of making an offer, bid or

proposal, or expressing interest in response to an invitation or request
for tender
 Tendering process
Owner Contractor

Preparation receiving the invitation

Approval to tender Decision to tender

documentation Preparation of cost estimate

Invitation Choosing subcontractors

Receive and evaluate bids Prepare documents and costs

Award contract Bid Submission

Tender preparation
Drawings:
• WhatProvideisgraphic
requiredrepresentation of all work to be completed.
Preparation

•-- The
Measurements and dimensions
contractual requirement Approval to tender
Footprint configuration
•- Description
Siting (location inofsite)the work
- Detail of materials and methods
•- Conditions of the tender
Schedule of information
documentation
- Building system
• Evaluation criteria Invitation
Specifications:
•- Submission content
Technical information and format
about materials indicated in drawings
Receive and evaluate bids
•- Process
Written requirements for project
rules and format
(material, equipment, construction system and workmanship)
•- Conditions
Specs representof the contract
quality of project Award contract
 Approval To Tender
selective tenders
adv
Type of tender Greater confidence Preparation
Open tenders
Disadv
adv Approval to tender
Less competition
Equal opportunity
No chance for new contractors
More competitive
disadv documentation
Unknown contractors
Long list of contractors
negotiated tenders Invitation
Adv
Greatest confidence
Disadv Receive and evaluate bids
Higher cost
Award contract
Tender Documentation
Preparation

- Invitation letter
- Approval to tender
General conditions and particular conditions
- Form of tender:
- preliminaries: documentation
- The form of contract and contract conditions:
- Bank and insurance guarantee forms
- Bill of Quantities Invitation
- Specifications
- Relevant drawings
Receive and evaluate bids

Award contract
Tender Invitation
a brief description of the job being tendered will be
Preparation
published in newspaper and internet in order to invite
contractors to provide their offers, this brief description
is called tender notice. Approval to tender

documentation

Invitation

Receive and evaluate bids

Award contract
 Owner Contractor

Preparation receiving the invitation

Approval to tender Decision to tender

documentation Preparation of cost estimate

Invitation Choosing subcontractors

Receive and evaluate bids Prepare documents and costs

Award contract Bid Submission

 Contractor Bid preparation

-- receiving
-- Sealed
receiving
Sealedthe the invitation
invitation from
bidding
bidding from thethe owner
owner side side receiving the invitation
-- contractor
-- Bids
contractor
Bids areareobtain
obtain
prepared
prepared documents
documents (drawing,
confidentially(drawing,
confidentially be
be each specifications
eachspecifications
bidder
bidder and
and are
are
and
andsealed
project
project
sealed manual)
andmanual)
and submitted
submitted to to the
the owner
owner to to be
be examined
examined and and Decision to tender
-- review
review
compareddocs
docs and
compared and
in send
send request
request
in competition
competition for
with
withforone
information
information
one another for
another for any
any
-- itit facilitates
unclear
unclear point
point fair
facilitates fair and
and transparent
transparent procurement
procurement
-- determine
-- prevents
determine
prevents quantity
quantity
collusion
collusion of
of materials
materials Preparation of cost estimate
-- gather
-- reduces
gather unit
reducesunit prices
prices
the from
from suppliers
the complexity
complexity suppliers
of
of the
the bidding
bidding process
process
-- choose
-- Sealed
choose
Sealed subcontractors
subcontractors
bidding
bidding removes and
and ask
removes askthe
them
them
the for
riskfor of
risk their
their
of bids
bidbids
bid shopping,
shopping, Choosing subcontractors
-- calculate
calculate
because
because the
theitit sum
sum
ensures
ensuresof
of all
all
thatcosts
that costs
pricewith
price with including
includingisisall
information
information allkept
kept
additional
additional
confidentialcosts
confidentialcostsuntiland
and taxes
until taxes
after
after the
the due
due date
date
-- result
result isis total
total bid bid to
to owner
owner Prepare documents and costs

Bid Submission
Receive, evaluate and award
Preparation

After the tender is evaluated according to the relevant Approval to tender

criteria provided.  any negotiations are satisfactorily
completed, the award decision is made by the relevant documentation
authority, usually based on the recommendation made
by the evaluation team.
Invitation

Receive and evaluate bids

Award contract
Tendering process problem areas
1- Tender preparation problems
• wrong estimations in time, cost and quality.
• Tender documentation problems
• Choosing the wrong tender strategy

3- Contractor subcontractor relationship problems:

• Selection of subcontractor on basis of lowest price

2- Bidding problems and mistakes: • Harsh contract terms and condition

• Unsigned bid • Lake of shared information
• Incorrect cost schedule
• Incorrect formatting
• Missing information
• Wrong company name
4- Corruption and Bribery
Case study
• Poor quality documentation in tenders
- The case study discussing a project valued 6.5 million , contractor awarded the tender called Gamma
tender documents received as bellow:
instructions tenderers (seven volumes),
form of tender,
form of agreement,
form of bond,
conditions of contract,
special requirements,
information to be supplied by the tenderer,
information supplied to the tenderer,
collateral warranty by contractor,
collateral warranty by subcontractor,
collateral warranty by designer,
parent company guarantee,
technical work specifications (358 pages),
project drawings (213 pages)
and bill of quantities (1053 bill items).
Problems identified by bid team
• missing information,
the bid team of Gamma raised 20 tender queries (TQs)
• incomplete drawings, that they submitted to the client’s consultants for
• conflicting information, additional information.
• inadequate specifications and
• general areas requiring clarification of
information
 There were another 3 bidders arise their tender queries
and the total tender queries was 90 as shown in the table
bellow

This result in delay in the submission date for one week

and the bidders (exclude Gamma team) were not able to
provide their bids because their concerns about cost, time
and quality of the work.
The end