INTRODUCTION TO

TENDER AND QUOTATION

LOGO

BSR304
DR AN NI SHA NUR WELLI ANA BI NTI ABD RASED
 BY WHO?
Construction project owner or employer of organization who need a new building.

HOW TENDER
LOGO
LOOK LIKE? WHAT IS A TENDER
in the form of document that contain certain terms
and conditions, specified by law

WHO PREPARED THE

TENDER DOCUMENT?
prepared by the employer’s consultant,
usually by the Quantity Surveying Consultant
THE TENDERING PROCESS BIDS PROCESS 3

TENDER SUBMISSION

TENDER REVIEWED

EVALUATED & ADJUDICATION

REFINE TENDER COST

REFINE TENDER COST

THE
TENDERING
PROCESS
(cont’d)

Method where the client determine the

suitable contractor consists the process:
-Bidders
-Tender valuation 
-Interview 
-Selection:
• LO- letter of offer
• LA- letter of acceptance
 OPEN TENDER

SELECTIVE TENDER
TYPE OF
LOGO
TENDER DIRECT
HERE NEGOTIATION

PREQUALIFICATION
TENDER
 PURPOSE OF
Suitable Contractor
Should be selected at a suitable time
TENDERING
• Be the basis for the ensuing
contract
• The most type of tender uses in
Price the Malaysian construction
The offer of the price is required from industry is an offer by the
the contractor at an appropriate time. contractor to carryout the work
specified in the invitation to
tender and the employer
accepted the offer
 OPEN TENDER / TENDER TERBUKA
• Traditional method of
tendering procedure until more
sophisticated techniques were
accepted
LOGO
• Commonly used by
government agencies

• Complete design is necessary

 OPEN TENDER / TENDER TERBUKA 8

(Cont’d)

ALWAYS USED ADVERTISING

IN OUR COUNTRY THE TENDERS IN
SEVERAL MEDIUMS

CONTRACTORS
CONTAIN CLEAR CAN REVIEW A
INFORMATION TABLE TENDER
DOCUMENT
 CONTENT OF TENDER NOTICE

TITLE INFORMATION TYPE AND

proposed project Project team STATUS
& client, address OF TENDERERS
of client Registration class
with CIDB, Kepala
and Subkepala

LOCATION & DATE PRICE

BACKGROUND Open tender,  Document tender
Proposed site site visit, closed
or project tender

9
 OPEN TENDER/ TENDER TERBUKA
ADVANTAGES
• Chance for new firm to participate
• Attracts a large number of tenders
• Lowest possible price
• Simple construction and does not require
specific experience and qualifications.
LOGO

disADVANTAGES
• A committee in charge of public expenditure is under a
lot of pressure
• Employer in the risk
• Tenders tend to inflate prices for future work.
• High cost of administration of tenders, duplicating
document.
• Problem of selecting best tender from a wide range
of tenders.
 EXAMPLE OF TENDER

LOGO
 SELECTIVE
TENDER /
TERBUKA
Limited number of contractors
LOGO
& fulfill certain criteria TERHAD
• General experience
in related to the project
type
• Financial ability
• Managerial & technical
capabilities
SUITABLE FIRMS INVITES FROM CLIENT
/CONSULTANTS

LIST OF CRITERIA: REPUTATION,

RECOMMENDATION, PREVIOUS CONTACT SELECTIVE
WITH CLIENT/CONSULTANTS
TENDER /
ADVERTISEMENT: CLOSED INVITATION
TERBUKA
MAXIMUM 5 TO 10 TENDERERS SUFFICIENT
TERHAD
TO PROVIDE ADEQUATE COMPETITION
(CONT’D)
BID A TENDER: SUBMIT THE TENDER WITH
TENDER COST PROPOSAL
 ADVANTAGES
• Candidates from high quality builders
• Good incentive for builders; maintain

•
& improve their work level
Reduce tender evaluation workload
SELECTIVE TENDER
LOGO TERBUKA TERHAD
DISADVANTAGES (CONT’D)
• May select a builder arbitrarily.
• Attract bid rigging
• High quality builders who do not have
a substantial record have less chance
 • Select a contractor directly

• Contractor possess relevant

skill or experience

NEGOTATION
• Tender document based on
schedule of prices or BQ
LOGO
or Design & Build or
Management Contract

• Main items can be roughly

quantified and price as a
basis of agreement
 NEGOTATION CONT’D
16

Established business
Additional contract during
relationship
the construction

Quality and not economy Contractor’s required to

is the major focus design or programming

Construction has start

A continuation contract
immediately
based on the first contract

Details final scheme not completed

 ADVANTAGES
• Speed negotiation process, have greater
conclusion satisfaction to both parties
• Keep time consuming and therefore costly
minimum.  

NEGOTA
• Start work without wait complete
documentation and contractor will involve in
design process
LOGO

DISADVANTAGES
•
•
Absence of competition; tender sum higher 
client may paying more in return for a
quicker job/ better quality; very high
TION 
(CONT'D)
financial fund and the involvement of experts
 PRE-QUALIFICATION (PRE-Q)

LOGO

intended to screen contractors:  The tenderers should supply Pre-qualified contractors are
experience, technical ability, COMPLETE information that contain;  invited to submit their tenders 
financial management and implement - Company’s previous experience 
in a same field - Physical resources; and 
- Financial standing
 PRE-QUALIFICATION (PRE-Q) (CONT’D) 19

SELECTION TENDER COMMITTEE

WILL SHORT LIST OF
SUCCESSFUL CONTRACTORS

SECRETARIAT NOTIFY CONTRACTORS;

FAILED OR SUCCESSFUL

SUCCESSFUL TENDERERS WILL

APPOINTED AS PANEL OR
MEMBER OF PROJECT TEAM

TENDER DOCUMENTS; SOLD

OR FILLED BY PANEL CONTRACTORS
ACCORDING THEIR EXPERTISE
- WIRING WORKS, CONCRETE WORKS,
- HARDSTANDING AND ROADS, STRUCTURE, ETC.
EXAMPLE

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 Syarikat Prasarana Berhad insists to build
public infrastructure in Putrajaya
immediately. The company requires an
experienced contractor to carry out the
LOGO
project. Analyze how the selection of
contractor can be made as soon as
possible. In a group of 5 students discuss
the above scenario and the findings

QUESTION
submitted through I-DISCUSS