QTS 203

PRINCIPLES OF TENDERING
AND ESTIMATING I

QS FUNMILOLA OMONIWA (MRS)

PROCUREMENT METHODS
Definitions
 It is “the framework through which construction is brought
about, acquired or obtained”.
or
 “The strategy to satisfy the client’s development and/or
operational needs with respect to the provision of
constructed facilities for a discrete life cycle”.
PROCUREMENT METHODS IN
CONSTRUCTION

 General contracting

 Design and build

 Construction management

 Joint venture and

 Private financing
TENDERING

Definition, Types of Tendering, Objectives of Tendering,

The Role of different parties involved in Tendering, Nature and type of

Tender Documents;
Tendering Procedure in Selecting a suitable contractor and Factors for
consideration in selection of appropriate contractor.
Definition of Tendering
 Tendering procedures cover various methods that may be
used by the client and his advisers to obtain offers. (Dennis
F. Turner).
 A tender is a submission made by a prospective supplier in
response to an invitation to tender issued by an employer. It
makes an offer for the supply of goods or services.
TENDERING
Purpose of Tendering

To select a suitable contractor at a suitable time. The offer of a price is

required from the contractor at an appropriate time. This offer will be the

basis for the ensuing contract.

Along with the conditions, the contract drawings and bills of quantities (if

used) make up the contractual agreements.

Types of Tendering
 Open tendering
 Selective tendering
 Single stage tendering
 Negotiation
 Extension
 Serial tendering
OBJECTIVES OF TENDERING
The following are objectives of project tendering:

 The key objectives of the tendering process are to make sure work is awarded fairly and to the
best applicant.
 provide an environment that encourages interest and competitive offers from suitably qualified
and experienced construction contractors
 obtain a fair price and best value for undertaking construction works
 obtain a clear understanding of the rights and obligations of all parties
 allow resolution of general issues requiring clarification to all tenderers
 allow resolution of specific matters only relevant to a particular tenderer’s bid
 reduce the likelihood of misunderstandings and disputes during the construction phase
 secure a construction contractor to undertake and meet the required project scope, time, cost and
quality parameters.
Roles of Different Parties in Tendering
The parties’ obligations
•The employer’s request for tenders is an invitation to treat and therefore the employer is
under no legal obligation to accept any tender.
•The cost of tendering is generally borne by the contractor.
•Where the preliminary work goes beyond what is normally expected, an employer may
agree to make payment.
•A person who invites another to tender with no intention whatsoever of accepting that
tender can be liable for any expenses that the latter incurs.
•An employer who expressly promises to accept the lowest tender will be bound by that
promise, if that tender complies with any conditions.
•An employer may be under an implied obligation to give proper consideration to any
tender submitted in accordance with published conditions.
•Local authorities are required by the Local Government Act 1972 to publicise formal
contracting procedures, normally involving competitive tendering.
•Local authorities are required to give reasons for their procurement decisions and are
generally prohibited from taking into account non-commercial considerations in reaching
those decisions.
Nature of Tender Documents

The tender document gives a detailed explanation of the deadlines, requirements, necessary
information and criteria.
In general it consists of the following documents: a cover letter, an invitation to tender, the
form of the tender, the terms and conditions of the contract, a bill of quantities, the
specifications, designs/drawings and/or plans, the quality requirements, the evaluation criteria
and the tender return label.
Depending on the type of the project and requested work, other additional documents vary.
The applying suppliers must deliver the complete tender documentation by the deadline to be
able to participate in the tender bidding process.
The criteria upon which a supplier is usually chosen are the proposed prices and costs,
delivery times and terms, availability and quality.
Common practice has shown that applicants must pre-qualify before being given the tender
documents.
Types of Tender Documents
•A letter of invitation to tender.

•The form of tender.

•Preliminaries: including pre-construction information and site waste management plan (if required).

•The form of contract, contract conditions and amendments. This might include a model enabling

amendment for building information modelling (BIM), making a BIM protocol a contractual document.
•A tender pricing document (or contract sum analysis on design and build projects).

•Employer's information requirements for BIM.

•Design drawings, and perhaps an existing BIM.

•Specifications.

•Tender return slip.

References

David, R. & Stafford R. (2016). Project Tendering. Feedlot Design and Construction

Hudson outsourcing
https://www.tenderconsultants.co.uk/objectives-of-the-tendering-process/ (2019) accessed on 3 rd
Feb. 2022

https://tender.theafrica.co.za/tenderfaq/what-is-the-purpose-of-tendering-13 accessed on 3rd Feb.

2022
THE END FOR
TODAY