TENDERING PROCEDURE

• Tendering procedure refers to the typical

procedure for carrying out the tendering
process.

• The process may include the following

milestones:
 The Tendering Procedure
• Prequalification and Preliminary
information/meeting
• Qualification
• Compiling the Tender List
• Tender Enquiry
• Tendering Time
• Tender Invitation
• Tender Submission and Opening
• Late Tenders
• Tender Assessment and Acceptance
 Prequalification and Preliminary
information/meeting
Prequalification and Preliminary
information/meeting

• Usually not conducted by many organisation

• It is a general meeting inviting all interested
parties
• Preliminary information is given to those parties
on the intended project.
• Importantly, a formal procedure must be
followed.
 Prequalification and Preliminary
information/meeting continued
Prequalification and Preliminary
information/meeting continued
• To draw up preliminary list (e.g. from an
approved list of qualified contractors)
• Tenderers on preliminary list to be asked if they
are willing to tender.
• Potential tenderers to be given sufficient
information to enable them to decide if they are
willing to tender.
• If such meetings will be done, they should be
consistent and have similar information/content
 Qualification
Qualification
At this stage, it is important to establish a Criteria for
qualification which may include :
work quality
past performance
overall competence
health and safety record
financial stability
insurance cover
size and resources
technical and organisational
NB: It is important to review the list for any additions or
removals
 Compiling the Tender List
Compiling the Tender List
• Draft tender lists and seek confirmation from
potential tenderers of willingness to tender.
• Potential tenderers to notify unwillingness to
tender before issue of full tender enquiry
documents instead of submitting cover prices.
• Maximum number of invitations to tender
depends on the type of the tendering procedure
e.g Negotiated Forms, only one can be invited.
For design only, can be considered 4. For design
and construct 3 is reasonable.
 Compiling the Tender List Continued

Compiling the Tender List Continued

• Potential tenderers to reconfirm willingness to

tender if tender documents not received since
initial confirmation of willingness to tender if
original tenderers drop out but must have
sufficient time in which to tender.
• NB identify and notify reserve tenderers -
maximum of 2 reserves to be invited to tender.
 Tender Enquiry Documents
Tender Enquiry Documents
• This can be in the public media or sent to private
organisations or individuals
• Tenderers to be informed if information is
approximate.
• Level of detail required in tender submission
must be clearly stated and it should be indicated
if priced schedules are required as well as a lump
sum price.
• Other information to include:
 Tender Enquiry Documents

Tender Enquiry Documents

• job and location
• nature, scope and approximate value of the sub-
contract works including reference to the extent of
any design work required
• the likely dates and duration of both the tendering
process and the sub-contract works if any.
• the number of tenderers being invited to submit a
formal tender
• whether the main contractor is already being
appointed or is also tendering
 Tender Enquiry Documents

Tender Enquiry Documents

the main contract tender date
the approximate value and period of the main contract, if
known
whether, and how, any costs of tendering, may be shared
whether the tender will be based on bills of quantities or
other pricing documents or on specification and drawings
the selection procedure and selection criteria
the main and sub-contract conditions
the names of the client and the relevant consultants
 Tendering Time

Tendering Time
This depends on the technical and complexity of a
project. However, the following can be considered;
10 weeks for design and construct; 6 weeks for
construct only and 3 - 8 weeks for design only.
The time for tendering should take account of public
holidays
The above periods are suitable for most projects but
extra time could be required in certain circumstances,
e.g. where products or materials have to be obtained
from distant or unfamiliar suppliers.
 Tender Invitations

Tender Invitations
Tender invitations to be issued on the same date for all
tenderers and should state whether alternative tenders
are acceptable in conjunction with (but not instead of)
compliant tenders.
Tenderers to acknowledge receipt of documents and
confirm willingness to supply compliant tender.
The tender invitation should also state whether
tenderers are to be interviewed and, if so, for what
purpose and at what stage. Interviews must not involve
second round bidding.
State if site visit is mandatory or not
 Tender Invitations Continued

Tender Invitations Continued

• Not later than 7 days before the date for
submission of tenders, tenderers should submit
in writing any clarification which they may
require.
• The client should inform all tenderers in writing
of its response to requests for clarification or call
for a meeting.
• If the tender documentation is consequently
amended, all tenderers must be informed.
 Tender Submission And Opening

Tender Submission And Opening

• Under no circumstances should tender prices be
disclosed to third parties by the client before the
award of the sub-contract. Use of ‘cover prices’ is a
breach of confidentiality.
• Tenders to be submitted in sealed packages and clearly
labelled as tenders for the works; identification of
tenderers’ names is not permitted.
• Tenders to be kept in a secure place and only opened
on the date and time stated for receipt of tenders.
 Tender Submission And Opening
Continued

Tender Submission And Opening Continued

• When opened, forms of tender should be signed
and prices should be listed against the names of
the tenderers.
• Bills of quantities should only be completed if
they were in the tender documentation and it is
also required that they be part of the tender
submission.
• It is suggested those inviting tenders self-certify
to their tenderers that these requirements have
been met.
 LATE SUBMISSION

LATE TENDERS
• Tenders received after the date and time
specified for return of tenders WILL NOT BE
ACCEPTED.
 Assessment of Tender
Tender Assessment
Tendering enquiry documents to provide tender assessment
criteria.
Weighting factors to be decided in advance, used consistently and a
record kept of scores awarded during the assessment.
To ensure parity of tendering, non-compliant tenders to be rejected.
Unsolicited tenders are unacceptable.
Arithmetic checks must be done
Any mathematical errors to be notified to the tenderer who should
be asked whether he stands by his tender price.
The next preferred tenderers can only be approached if the
preferred tenderer withdraws or post-tender negotiations break
down.[4.9]
 TENDER ACCEPTANCE

TENDER ACCEPTANCE
Formal notification should be sent to the preferred tenderer
following acceptance of the main contract tender.
Once those inviting tenders have accepted tender price,
acknowledgement by the preferred tenderer is required after being
notified.
A list of compliant tender prices and tenderers should be made
available to tenderers on request after a tender has been accepted
Unsuccessful tenderers should be informed and arrangements made
with them to destroy or return their documents.
The client/evaluators to prepare formal records of selection of
preferred tenderers and documents for signing the contract.
 Summary
The procedure depending on the nature and type of the
project and client may include all or omit certain stages.
Various organisations have different procedures due
various reasons such as transparency, costs etc.
The procedures will be different depending on whether
a main contractor will incorporate sub-contract tenders
as part of his tender or is inviting sub-contract tenders
post-main contract tender.
What is important is to follow a formal procedure
depending on the nature of each organisation.
 THE END