Tender & Contract Doc

uments
 Tender and Contract Documents
PROCESS DOCUMENT
• Tender & Invitation • Conditions of Contract
to Tender • Bill of Quantities
• Tender & Contracts • Inside a BQ
Documents
• Tender Notice &
Conditions of
Tendering
THE PROCESS
Tender & Invitation to Tender
WHO does WHAT?
Employer provide info
Agents prepare documents
Contractor reply
WHY do we do it?
To select suitable contractor
To obtain reasonable price
HOW do we do it?
Preparation of tender design documents
Invitation to tender
Completion of forms and documents within time and date
Submission of tender
 Tender and Contract Documents
Contents
• Differs depends on Standard Forms of Contract
Conflict or discrepancies
• Written words, explanatory value and ambiguity
issues
Incorporation of documents
• Important documents not incorporated in the contract

Davis Contractors v Fareham UDC (1956)

Trollope & Colls Ltd v Atomic Power Construction

(1962)
Tender Notice and Conditions of
Tendering
• Submission Time & Place
• Complete Form of Tender
• Tendering Period & Closing Date
• Tender Validity Period
• Necessary Fees & Deposit
• Pre Requisition
THE CONTENTS
 Conditions of Contract
• Standard Forms of Contract
• Articles of Agreement
• Conditions of Contract
• Appendix to the Conditions
 COC: Standard Forms of
Contract
PRO CON
• Familiar basis of
contract • Commercial-oriented
• Administrative • Does not complement
convenience the unique nature of
• Court-tested; legal each contract
interpretation & familiar
• Possible repetition of
in courts
•
mistake
Induce experience &
produce experts
 COC: Articles of Agreement
• Preliminary Recitals & the Articles
• Constitute Actual Contract between parties
• Contains:
 Names of parties
 Location and scope of works
 Express agreement of parties obligations
 Other related professional carrying out their
functions in the contract
 COC: Conditions of Contract
Obligations Anticipated
Problems
Definitions
Solutions
Procedures or
Remedies

MJ Gleeson v Hillingdon (1970)

 COC: Appendix to the
Conditions
• Contains additional details to ensure enforcement of
certain operation of the clause
• Not inserted means not in contract
• Contains:
– Defect Liability Period
– Commencement & Completion Date
– Sectional Completion
– Amount of LAD
– Honouring Certificates
– Limit of Retention
Chattan Development Ltd v Reigill Civil Eng
Contractors Ltd (2007)
 Bill of Quantities
• Schedule with quantities
and descriptions of
component of the proposed
work
• Tenderer is to price
according to the drawing
and specifications attached
• To also be used for
valuation, variations, interim
payment, fluctuations and
final account
 Know Your BQ
• Contract requires measurement of quantities in
accordance with SMM
• Error in quantities or omission does not vitiate
contract, but can be corrected and leads to variation
• Any departure from original BQ also will constitute
variations
• ‘Without Quantities’ contract pricing is deemed to
include all item necessary as per drawings and
specifications
• BQ become basis for variations and price fluctuations
Inside a BQ
 Preliminaries
• Contains general matters necessary to carry
out works
• Generally concerns facilities, management
and temporary works, priced as lump sum
• Contents are:
 Project particulars and work scope
 Facilities to be provided by contractor
 Contract conditions
 Parties’ liability
 Any other conditions
 Specifications
Work scope

SPECIFICATION General Work items included in

pricing

•Descriptions Materials,
•Quality Equipment,
Product Accessories
•Technical Details
•Standards of Workmanship
Material Standard, quality, brand,
•Material
description etc.
Production Process

Application Preparation
Execution
Erection Workmanship

Installation
 Drawings
•Location Plan
•Preliminary Drawings •Site Plan
•Tender Drawings •Floor Plans

•Contract Drawings •Elevation

•Sections
•Construction Drawings
•Details
•As built Drawings
•Schedule
•Architectural Drawings
•Structural Drawings
•Electrical Drawings
•Mechanical Drawings
 Measured Work
• BQ a.k.a contract bills, must be in exact quantities
• To allow pre-controlled pricing operandi under
uniformed basis during tender process
• Become reference for material procurement,
construction, management, valuation, variation,
payment and final account, during and after contract
• Note existence of approximate/ provisional quantities
• Elemental Bills?
• Operational Bills?
• Annotated location?
 Pros and Cons
ADVANTAGES DISADVANTAGES
• Uniform basis for tender • Require complete design
• Accurate & meticulous • Nett quantities not
• Reduce cost of Tendering appropriate for purchasing
• Reduce risk materials
• Basis for valuation of • Allows technical claims
variation
• Basis for valuation of
workdone
• Basis for site management
• Indirect cross check
 PC and Provisional Sums
PRIME COST SUM PROVISIONAL SUM
CONTINGENCY SUM
• Sum allocated for •Sum allocated for work
•Sum set aside to cover
supply of goods or work which cannot be
for unforeseen items
to be carried out by foreseen or detailed at
NSC tender stage
• Expressed as a % of
the expected contract
•Based on QS •Lump figure based on
sum
estimates or estimation
quotations, to be
•No relation to contract
adjusted as-built •To be omitted during
work, no obligation to
final account, replaced
spend
•Profit and attendance with the actual sum
•Can become either
•Permission to spend •Permission to spend
saving or expenses
the sum the sum
 General Summary
PRELIM + BQ + PC
SUM + PROV SUM
+ CONTINGENCY TENDER SUM
SUM

Amount agreed to be paid

Cannot be altered or adjusted
(Only rates and price can be adjusted)
CONTRACT SUM
 Schedules
DOOR & WINDOW DUCTING,
SCHEDULE CABLING &
PLANTS, HERBS & SHRUB PIPING SCHEDULE
SCHEDULE

SCHEDULE OF FINISHES REINFORCEMENT

SCHEDULE
ELECTRICAL FITTINGS
SCHEDULE
LIGHT FITTING SCHEDULE
IRONMONGERY
SOFT FURNISHING
SANITARY FITTINGS
SCHEDULE
 Other Documents
Schedule of Schedule of Basic
Rates Prices
• PRICE PER UNIT • DAYWORK RATE
• Either contractor fill in, • MAN-DAY
EMPLOYER accept • MANHOUR
OR employer fill in, • MATERIAL PRICE
contractor insert % (+/-)
• To be adjusted for
• Reference for Variation
rationalization purposes
• Used best for OR if fluctuation occurs
Maintenance contract
 Additional Documents
• Work Programme
General requirement but not part of the
contract
To aid monitoring of work progress
Main reference to assess extension of
time, variation and LAD
Yorkshire Water Authority v Sir Alfred McAlpine
(1985)
 Additional Documents
• Performance Bond and Guarantees
 A ‘safety net’ to secure contractor obligation under
contract
 Initially, to fund the employer should the contractor
fails to perform his part of the contract
 In the form of bond or guarantees, given by the
bank or financial institution
 Normally, 5% to 10% of contract value
 Bid- bond, Advance payment bond, On-demand
bond, payment bond
 Additional Documents
• Insurance
Contractors’ All CONTRACTOR
Risk DEFAULT
INSURANCE
AGAINST NOT
Professional Insurance
INJURY TO CONTRACTOR’S
PERSON, FAULT
PROPERTY OR
Workmen’s
POSSESSION FIRE & OTHER
Compensation
UNCONTROLLABLE
FACTORS
General Insurance
End of Lecture