Tender
Mistakes in tendering
Putting together a winning bid proposal is a lot more complicated than
putting some numbers together and hoping for the best.
Good bid preparation requires a lot of time and effort that involves
everything from reading and fully understanding the plans and
specifications to accurately estimating costs for labor, materials and
equipment.
Making even the smallest mistake can mean the difference between
having a winning bid proposal and missing out on a desired project.
MISTAKE 1 : BIDDING THE WRONG
PROJECTS
You don’t have to bid on every job you come across.
Remember, it is never too late to abandon a bid you are working on.
If at any time during the preparation of a bid you determine that
your company cannot adequately handle the scope and
requirements of the project you need to make the smart business
decision to abandon your bid.
Finding the right balance between bidding and winning enough jobs
can be difficult. On the one hand you don’t want to bid and win so
many jobs that you get to the point that you can’t properly manage
and deliverthe projects but you also don’t want too little work that you
aren’t making any money and your workers aren’t staying busy.
Mistake 2:
INCOMPLETE BID FORMS AND
DOCUMENTS
Fai l i ng to fully complete the bid There are few o t h e r requirements that go along with
form and submi t all required p re p a r i n g your bid that can also get your bid rejected if
documents is a surefire way to get you comply with them or s i m p l y overlook them. The
what might otherwise be a winning fi rst is failing to get prequalifi ed to bid a project when it
bid re j e c t e d. Re q u i r e d is required. The second is not attending a mandatory prebid
documents and paperwork can be meeting. If either of these is required in order to bid on a
anything from bid bonds to project and you fail to comply you will not be allowed to bid
acknowledging receipt of any on the project. The third and most important of these is
addenda. failing to submit you bid by the due date and time.
A good way to ensure that you have All of these requirements will be clearly stated in the bid
all the required paperwork for invitation and not complying will result in a rejected bid.
your bid is to use a checklist as Don’t let all the time and effort you spent preparing your
you prepare your bid and then go bid proposal be wasted be cause you forgot to do
back and double-check to make sure something as simple as properly signing your bid or
that everything is included. It never getting it delivered to the bid opening on time.
hurts to get another set of eyes to
look over the bid proposal to make
sure nothing has been forgotten
before you submit your bid.
Mistake 3:
INACCURATE
TAKEOFFS
If you don’t take the time to fully review You also need to make sure that you are taking
the plans and specifications to determine measurements from the right place.
accurate me asure me nts and takeoff s Often the plans will instruct you not to scale the drawings or
it is going to result in incorrect cost for to use the written or calculated dimensions provided in the
construction when calculating your bid. specifications. This occurs more often when electronic
documents are used because enlarging or shrinking the
Accurate measurements and quantities are size of the drawing to print them can result in the scale
essential in accurately bidding a being incorrect which would adversely affect your bid. If
project. oftware can ensure that correct there is ever any doubt as to where to take your
Takeoff sments are obtained in order to measurements from you should contact the architect for
measure submit te bid. Inaccurate clarification.
an accurameasurements you to
will causemiscalculate the amount g
of buildinmaterials and labor needed to
completethe job which in turn will cause
you to either over- or underestimate your
constructi on costs.
Using right units of measure is
the also when calculating your bid.
important Using et when you should
square have used rds or vice versa
fe squarecan drastically estimated costs.
Mistake 4:
FAILING TO VISIT THE SITE
Not having a good understanding of the conditions and other job specifics.
existing site conditions can create problems Failing to attend a prebid meeting
down the line should you be awarded a means you miss out on the best
contract. Unique site condition may exist opportunity to get clarification on the
such as limited accessibility or location that requirements of the project.This could
would result in additional costs on items like be the only chance you get to walk
transportation, equipment and labor. around the site to have a better
understanding of exactly what you will
Failing to visit the site would leave you be dealing with.There are times when
unaware that these conditions exist and that the prebid meeting is mandatory so
additional costs need to be factored into your failing to attend would result in not being
bid and will cut into your profit if you were to able to even bid on the project.
win the job. Many times a prebid meeting
will be held at the construction site or a site When preparing a bid proposal you
visit will be held directly following a prebid want to have as much information as
meeting. Prebid meetings are held to in order possible in order to compile a
for the project team to answer questions competitive bid and refusing to attend a
regarding plans and specifi cations, site prebid meeting or a site visit will put
you at a severe disadvantage.
Mistake 5:
FAILURE TO SEEK
CLARIFICATION
When preparing a bid you need to do If you are unsure of any aspect of the project
your due diligence to ensure that you when p re p ar in g yo u r b id yo u need to
have all the pertinent information, seek clarifi cation from point of contact for
that the i n f o rm a t i o n i s accurate the project whether it is the architect, owner
and that you have a complete or owners’ representative.
understanding of this information.
This means fully reviewing the plans Be aware that there are typically cut-off
and specifications to determine dates in place for questions in order for any
everything required to bid the changes to the plans or specifications to be
project and complete the work. made and for any addenda to be issued to
the bidders. If you are unclear on any
This includes knowing everything aspect of the project the onus i s on you to
from what bonds are required to get clarification.
whether or not there are
participation goals for minority Making assumptions is no way to submit a
business e n t e r p r i s e s ( M B E s ) or if winning bid. If you aren’t able to get your
material substitutions are allowed questions answered to your satisfaction then
in the bid. you should probably reconsider bidding the
project.
Mistake 6:
2 + 2 = 7? WRONG!
Errors with your math can have a devastating impact on your bid.
Arithmetic errors can result in your bid being well under or well over the
actual cost of completing the job.
Manual calculations can easily result in arithmetic errors. Always use
a calculator or some type of construction bid software to ensure that
your calculations are accurate. If you are using bid software or a
calculator errors can typically be attributed to not inputting your
numbers correctly.
Always double-check your math to make sure that all you numbers
and calculations are correct.This is another one of those instances
where having another set of eyes to look over your fi gures and
calculation can help prevent costly mistakes.
Mistake 7:
NOT EVALUATING EQUIPMENT
NEEDS
You should also check to make sure that the equipment is in good
working order and operating at peak performance which might
otherwise cause delays in your construction schedule.
Equipment that isn’t optimally performing can increase the time
it takes to complete certain tasks. Unexpectedly having to rent
additional equipment or face delays can negatively affect the
bottom line on a project. Remember to factor in the fuel costs to
operate the machinery and to transport the equipment to the jobsite.
Mistake 8:
NOT QUALIFYING
SUBCONTRACTORS
Getting subcontractor pricing can be complicated. When requesting bids from
You want competitive prices from your subcontractors subcontractors, clearly define the scope
but you also want some assurance that they can of work that the subcontractor is
perform the work required effectively.This is true whether expected to perform. If you don’t clearly
it is a subcontractor you are using for the fi rst time or define the scope of services being
one that you have worked with for years. One requested from subcontractors it may
solution is to set up a prequalification process for result in unnecessary costs being added
subcontractors who wish to work with you. This allows to your bid from overlapping work being
you to have a better understanding of the type of work bid by both you and your subcontractor.
they are capable of performing by evaluating the
quality
and performance on past projects.
At a minimum you should get bids
from at least three different
companies for each trade you will
need to s u b c o n t r a c t out work for
to ensure you are getting the best
prices. Carefully review and
evaluate every sub bid to make sure
that the prices quoted are
complete and accurate.
Mistake 9:
LABOR IMPLICATIONS
Being able to accurately estimate labor costs can be one of the most difficult and
trickiest aspects to preparing your bid proposal. To determine your labor costs
you have to factor in hourly wage rates with the number of man- hours a specific
task will take to complete.
You also have to take into account the productiveness and experience of
your workers. Employee turnover, absences and injuries can all affect your
actual labor costs.
More experienced workers may be able to complete tasks quickly which would
reduce the number of man-hours needed but you will have to pay a higher rate for
their services. Workers with less experience will require more man-hours to
complete a job but you can pay those workers a lower wage.
Mistake 10:
NOT FACTORING IN
OVERTIME
Wage rates can vary greatly from state to state and even from county to county. It is
important to understand what if any wage rates apply to the project you are bidding in
order to incorporate those rates into calculating your labor costs.
Wage rate determination is required on all Federal Government construction projects as
mandated by the Davis Bacon Act. Wage rates are determined by the location of the
project and the type of construction being performed. There are also 32 states with
prevailing wage laws for public construction projects.
Always be sure to check the current prevailing wage rates where the construction is taking
place so you can accurately determine your labor costs. When determining your labor
costs don’t forget to factor any projected overtime needs as the wage rates for overtime
hours worked can be as much as double the prevailing wage rate.
Mistake 11:
MISUNDERSTANDING MATERIAL
REQUIREMENTS
Costs for building materials and supplies can change rapidly and can vary
greatly in different areas of the country. If specialty materials are required
that you aren’t familiar with you shouldn’t assume that the cost is
comparable to similar items. Your best bet is to call around to local suppliers
to get up- to-date costs for materials and delivery.
You also need to make sure that the building materials and supplies
required in the specifications are clearly defined so that you are pricing the
right materials. If you are uncertain of the materials being requested in the
specifications you should always get clarification from the architect, owner
or owner’s representative.
Mistake
12:
RUSHED aBIDS
Preparing good competitive bid proposal takes time. If you try to rush
through putting a bid together it is going to lead to mistakes. You need
adequate time to read through and understand the plans and scope of work
and gather and evaluate subcontractor bids. Don’t fall into the trap of thinking
that if you’ve done similar work in the past that you can just slap a bid
together without doing your due diligence.
Putting a bid together is more involved than just pulling some numbers
together and filling out a bid form. If you don’t have the time to fully evaluate
and compile a proper bid then you shouldn’t attempt to do so. Sometimes
not bidding a project is a better business decision than submitting a bid that
you threw together at the last minute.
Mistake 13: OVERLOOKING RISKS
Identifying and managing risks is probably the most overlooked aspect of preparing a bid proposal.
Every construction project comes with its own unique set of risks. Once you’ve identified the potential
risks, you need to analyze and evaluate each one individually so that they can be properly managed
and mitigated if or when they occur.
You also need to take into account the probability of the identified risk and the impact it can have
on the project. A low probability risk with a low impact might be easy to mitigate, but a high
probability risk with a high impact that you can’t effectively manage could be detrimental to the
profitability of the project. By identifying and evaluating possible risks associated with a project while
preparing a bid will make you better prepared to handle a situation when something goes wrong.
Preparing a construction bid proposal is no easy task. A competitive and winning bid
proposal requires a lot of time and attention to detail. Making mistakes can lead to
submitting a lot of overpriced, uncompetitive bids or worse a lot of underpriced bids that
you win but make no profit on. The key to winning more bids is being able to accurately
estimate all costs required to complete the job while factoring in a reasonable profit for
your company. That can easily be accomplished by avoiding these 13 deadly sins of
construction bidding.
TENDER EVALUATION
OBJECTIVES
EVALUATION PROCESS
CRITERIA
EVALUATION STAGES
SPECIAL CRITERIA
OTHERS ANALYSIS ENDORSEMENT
TENDER REPORT
OBJECTIVES
• To determine and to recommend to
the Board of Procurement a
tender which offers the most profit
to the GOVERNMENT. Only
contractor which has the financial
and technical capabilities is eligible
for Award and Acceptance.
EVALUATION PROCESS
1.
Tender opening
committee
6.
Issuing of 2.
tender Processing
Acceptance tender
letter
In validity
Tender
period
5. 3.
Determine Procurement
budget board
4.
Treasury
(if applicable)
Tender evaluation must be done in validity of tender period
(minimum 90 days) from tender closing date.
EVALUATION PROCESS
FIRST STAGE
Tender price adjustment
Arrange the tender price
(from low to high)
Price reasonableness based
on budget or “cut-off”
Determine the number of
tenderers to be evaluated
qualify Not Fulfill requirement
SECOND STAGE
Tender compliance
Tender compliance analysis Not Fulfill requirement
Rejected Contractor
Completeness of document analysis
Adequacy of minimum capital
analsys
qualify Not Fulfill requirement
THIRD STAGE
Experience and capability
Tenderer experience analysis
Technical personnel analysis
CRITERIA
• PWD practice tender evaluation
procedure has been divided into 3
categories, namely:
i. Large projects
ii. Medium projects
iii. Small projects
CRITERIA
- INFORMATION REQUIRED
OTHERS DOCUMENT
i. Audited account copy for last 2 years
ii. Account bank statement copy for last 3 months
iii. Bank report / financial institution (sealed)
iv. Copy of the certificate / confirmation of completion for
each project listed in Form D and G
v. EPF statement and a copy of Form A or copy service
agreement for contract staff
vi. Copy of the certificate of approval of technical staff
vii. Copy of Grant / hire-purchase agreement plant /
equipment
viii. Copies of the final interim payment certificate for the
current project
ix. Project report (sealed)
Sample of summary of tender submission
COURSE OUTCOME
OBJECTIVES
EVALUATION
PROCESS CRITERIA
EVALUATION
STAGES SPECIAL
CRITERIA OTHERS
ANALYSIS
ENDORSEMENT
TENDER REPORT
August 29, 2013 NURUL ASRA ABD RAHMAN 2
EVALUATION STAGES
- FIRST STAGE
• Preparation need to be done by
evaluator before start any tender
evaluation process such as:
• Prepare summary of tender in ascending order
based on tender table prepared by Tender
Opening Committee.
. Prepare tender analysis based on cut-off
pricing.
. Select list of tenderers to be evaluated.
. Check and fill up Checklist of Compulsory
Documents.
. Prepare analysis of percentage (%) of price
distribution and obtain agreement from tenderers.
. Carry out arithmetic checking.
EVALUATION STAGES
- FIRST STAGE
• Number of tenderer should be assessed is
between 15-20 tenderer to produce between 3-
5 tenderer who will pass.
• "Range" of tenderer can be selected is
between
+ / - 20% (+ / - 25% for Civil Engineering) from
• the Mean Price.
For the tenderers who are below the "cut-off"
will be checked the compulsory document first.
Select tenderer with special criteria to be
• evaluated.
For tenderers who are outside the “cut-off” to be
referred to tender committee for consideration.
EVALUATION STAGES
- SECOND STAGE
• A system of evaluation based on predetermined
conditions to ascertain whether tenderers are
eligible for further evaluation.
• Evaluation Criteria:
i. Analysis on Compliance to Tender
ii. Analysis on Completeness of tender
documents.
iii. Analysis on Adequacy of Capital
iv. Analysis on performance of current
work.
• Objectives:
To ensure tenders under consideration are
reasonable, in compliance, complete, have
adequate capital and have good current work
performance free from sick project,
EVALUATION STAGES
- SECOND STAGE
i. Analysis on Compliance to Tender
• Only Tenderers which comply and free from any
imperfection in term of legal and contractual which may
jeopardize their qualification based on current practice are
to be considered.
– To check if form of tender has been signed by
tenderers
–
The signing person has been given the power to sign.
–
To check if tender price is stated in the form of tender.
–
Are PKK/CIDB registration still valid.
–
Has tenderer returned all the basic tender documents,
–
Check proposed construction period is stated in the
form of tender.
–
Failure to submit any of the forms of tender may effect
the ranking of tenderer,
Summary of Tender Price
TENDER PRICE
VALIDITY PERIOD
CIDB CERTIFICATE
FORM OF TENDER
CONTRACT PERIOD
NOT STATED
TENDER PRICE
NOT STATED
FORM OF TENDER
PRICE IN WORDS
PRICE IN
FIGURES
EVALUATION STAGES
- SECOND STAGE
ii. Analysis on Completeness of Tender
a) Tender which is complete and comply to
the requirement of
tender/regulation/Authority.
b) Mandatory Tender Documents includes:
i. Forms of Tender
ii. List of Quantity/ Summary of Tender
iii. Addendum (if any)
iv. Schedule of rates
v. Design proposal, specification, pricing by
contractor etc. (where applicable) as
required
to enable design work by tenderer to be
evaluated.
EVALUATION STAGES
- SECOND STAGE
OTHERS - Analysis on Construction Period
• Ensure the construction period offers by tenderers is
analysed such as:
a) not exceeding the maximum construction period
stated in the tender document.
b) Construction period if offerred by tenderer is not
too short that it becomes unreasonable
EVALUATION STAGES
- SECOND STAGE
Analysis on Completeness of Tender
EVALUATION STAGES
- SECOND STAGE
ii. Analysis on Completeness of Tender
MANDATORY DOCUMENTS
a) Audited account copy for last 2 years, or
Account bank statement copy for last 3 months, or
Bank report / financial institution (sealed)
b) Project report by project superintendence officer
Without mandatory documents
(especially regarding financial)
evaluation of tenders can not be made
and therefore tender will be rejected.
EVALUATION STAGES
- SECOND STAGE
Balance Sheet statement
EVALUATION STAGES
- SECOND STAGE
Current Bank Statement
EVALUATION STAGES
- SECOND STAGE
Financial Statement Report
EVALUATION STAGES
- SECOND STAGE
ii. Analysis
COURSE OUTCOME on Completeness of Tender
OBJECTIVES
EVALUATION
PROCESS CRITERIA
EVALUATION
STAGES SPECIAL
CRITERIA OTHERS
ANALYSIS
ENDORSEMENT
TENDER REPORT
EVALUATION STAGES
- SECOND STAGE
iii. Analysis on Adequacy of Minimum Capital
Method of calculation
i. Rolling capital = asset liability – current liability
ii. Bank account = average of latest 3 months
iii. Make comparison between rolling capital and bank
account. Select the higher amount
iv. Include credit facilities report
v. Add (+) iii and iv = total liquidated capital (>3%)
EVALUATION STAGES
- SECOND STAGE
iii. Analysis on Adequacy of Minimum Capital
Sample of calculation for minimum capital 3% from
value of construction work.
Tender price = 1,000,000.00
PC Sum = 50,000.00
Provisional Sum = 50,000.00
Construction work value = 900,000.00
So, 3% = 27,000.00
MINIMA CAPITAL
EVALUATION STAGES
- SECOND STAGE
iii. Analysis on Adequacy of Minimum Capital
Forms of Capital
a) Rolling capital
b) Shares, unit trust, fixed deposit, Bond
c) Balance of credit facilities
For joint venture tender submission, minimum
capital is analyse based on combined
equity agreed by both parties.
EVALUATION STAGES
- SECOND STAGE
COURSE OUTCOME
Adequacy of Minimum Capital
OBJECTIVES
EVALUATION
PROCESS CRITERIA
EVALUATION
STAGES SPECIAL
CRITERIA OTHERS
ANALYSIS
ENDORSEMENT
TENDER REPORT
EVALUATION STAGES
- SECOND STAGE
iii. Analysis on performance of current work
• Work still on progress during the tendering
process
• No sick project – below 30% of work schedule
• No termination record
• Checking will carry out through
Current progress report
EVALUATION STAGES
- SECOND STAGE
COURSE OUTCOME
OBJECTIVES
EVALUATION
PROCESS CRITERIA
EVALUATION
STAGES SPECIAL
CRITERIA OTHERS
ANALYSIS
ENDORSEMENT
TENDER REPORT
EVALUATION STAGES
- THIRD STAGE
REASONABLE FACTORS
Faktor Civil Building Mechancal /
Enginering work Electrical
Financial capability 45% 50% 50%
Technical
Work experience 35% 35% 35%
Technical staffs 15% 10% 15%
Machineries / plant 5% 5% 0%
TOTAL 100% 100% 100%
EVALUATION STAGES
- THIRD STAGE
i. Financial Capability
FINANCIAL CAPABILITY (Financial Bid Capacity)
= Working capital
Yearly project value
EVALUATION STAGES
- THIRD STAGE
ii. Technical
• Working experiences
• Technical staff
• Machineries / plant
• Working experience
Evaluation criteria
-. Completed total work value past 5 years
- Largest work value done in past 5 years
- Type of work is limited to recognized work
Comparable or similar (follow by head / sub-head
EVALUATION STAGES
- THIRD STAGE
• Technical staff
Evaluation criteria
-. Number and working experience of technical staff
compares with Estimate Minimum Requirement
CONSTRUCTION WORK VALUE BUILDING CIVIL ENGINEERING
CAT CAT CAT CAT CAT CAT
A B C A B C
More than RM5.0 m and not more 1 3 3 2 3 4
than RM 8.0 m
More than RM8.0 m and not more 2 4 4 3 4 5
than RM 15.0 m
More than RM15.0 m and not more 3 7 7 5 7 9
than RM 25.0 juta
More than RM25.0 m and not more
5 11 11 8 11 14
than RM 50.0 m
8 18 18 13 19 23
More than RM50.0 m
EVALUATION STAGES
- THIRD STAGE
Technical staff
Staff categories:
• Category A (Engineer, architect, quantity surveyor)
• Category B (Diploma, Technician / polytechnic)
• Category C (assistant technician))
Must be employed by employer during tendering
• Certificate and KWSP
• For contract staff – Contract agreement
EVALUATION STAGES
- THIRD STAGE
• Machineries / plants
Plant and equipment that could be accounted is limited to:
• As listed in the Estimated Minimum Requirement. Plants / machineries
can be considered if function equivalently
• Owned / hire-purchase before the closing of tender
• Useful life not exceeding 150 years
• If rent-mortgage, the agreement should cover the contract period.
EVALUATION STAGES
- THIRD STAGE
Minimum Score
Criteria Minimum Score
BW CE M&E
1. Financial capability 20.0 18.0 20.0
2. Technical capability 12.5 13.8 12.5
3. Overall capability 45.0 45.5 45.0
SPECIAL CRITERIA
• Tender submission which is below the “cut-
off” price and passes Stage 2 Tender
Evaluation can be considered if comply to
the following criteria:
- Excellent performance for current project
and completed project for the last 5 years.
- Good quality workmanship
- Tender price not less than -20% of the
“cut-off” price
- Tender price is not too unreasonable
(Freak).
SPECIAL CRITERIA
Examples of low tender price can be
considered.
- Own factory for main building materials
- Currently undertake equivalent
construction work at neighboring site
- Own scaffolding / formwork for recently
completed project
- For roadwork / earthwork – own plants
and machineries readily available for use
- Satisfactorily completed 3 projects of
similar nature consecutively prior to this
tender
OTHERS ANALYSIS
• Arithmetic checking
• Table for price comparison
- comparison of price for every building
category with the estimated price
prepared by consultant by each
tenderer taking into account the
arithmetic checking
OTHERS ANALYSIS
COURSE OUTCOME
OBJECTIVES
EVALUATION
PROCESS CRITERIA
EVALUATION
STAGES SPECIAL
CRITERIA OTHERS
ANALYSIS
ENDORSEMENT
TENDER REPORT
COMMITTEE ENDORSEMENT
FOR EVALUATION REPORT
• Ensure tenderer is not too occupied with on
going project.
• If the lowest tender price is too high as
compared to estimated mean price,
recommendation by committee should be:
– Award the tender to the lowest
tenderer
• –Decline all tender offer and re-tender.
Recommendation should list down at least
five (5) tenderers in ascending order who had
• passed each stage of evaluation.
Joint signature by qualified three (3) tender
• committee members
Prepare form for result of tender
together with complete tender
evaluation report
TENDER EVALUATION
REPORT
• Step to be undertaken if there is any fake documents
are detected.
- check all submitted documents, and
verify in compulsory document checklist.
- Check with the parties which is
responsible to supply the document. (if
suspicious arise)
- Verification of fake document should be
in writing.
- Ensure the affected tenderer not to be
recommended
- Lodge a police report and send the report
- Evaluation officer to request show cause
letter from tenderer
Contract
Types of Contracts
Re-measured Contracts
Fixed Lump sum Contracts
Cost Plus Contracts
Design and Build
Design / Build means that:
- One company is responsible for both
design and construction
- Construction begins before design is
complete
If specification is in conflict with a note in drawing:
Follow precedence as stipulated in the contract
If a contractor is failed to deliver a project / work:
Penalty will be applied
Change order is:
Change in scope
Change in time
Change in cost and budget
Steps to get clearance for
building construction
There is always a huge demand for property from a
builder of repute who is known for quality
construction.
Buyers are willing to pay a premium in return for -
Peace of mind that all approvals are in place.
Land Title
First and foremost, the builder has to get clear title for the
land or plot.
Clear title ensures that the property is clear, marketable and
it traces any charges or encumbrances created on the
property and its present status.
It enables a prospective buyer to know the chain of holdings,
transfers over a period and check any dispute on the
ownership of the property.
The best possible scenario is that the builder buys the land
first and then start the project.
Land Clearance
On account of urbanization agricultural land is sometimes converted
into Non – Agricultural land which can further be used for
constructing building for residential or commercial purpose.
In such cases a developer needs to get approval from concerned
authority to convert agricultural land to non-agricultural (NA)
purpose.
Approval for change in land use of the plot is required from local
body.
When the land use shown in master plan / zonal plan (where the plot
is located)/ land allotment letter is to be changed (as the same is not
permitted / not compatible with master plan/ zonal pan).
The land use plan for land area is to be notified by the State Ministry
of UD after the same is approved by local body.
Zonal Clearance
After the land title & clearance, builder is required to take zoning
approval from the local body / authority.
The revenue department provides the ownership certificate for
building permit under the provisions of Local Body Acts.
The state town planning checks regarding city development with
the planning board and forwards the proposals to the various
other concerned authorities in the city as required for issue of
case specific approvals/ NOC before granting zoning approval.
Approvals required for land to approvals for putting in place basic
amenities like electricity, water, connecting roads, etc.
Building Approval
The next step requires an approval from authority for sanction
of building plans/ building permit under the provisions of
Building Byelaws, Master plan and Local Body Acts.
The Building approval comprises of the building plan and the
layout approval for the construction of the building.
Building Approval
1) Building Plan:
A builder should submit building plan before starting the construction
activities. Building plans are a graphical representation of what a building
will look like after construction.
Building plan ensures that building complies with building laws.
Once the building plan is approved, the builder should commence
construction work within two years and there should be no deviation from
the sanctioned plan.
Building Approval
2) Layout approval:
The builder has to get approval of layout plan from concerned authorities
before starting construction of residential or commercial building.
Approved Layout Plan is as per approved FAR (Floor Area Ratio) or FSI
(Floor Space Index).
Constructing building on unapproved layout will not be given permission to
be occupied or such layout plots will be treated as unlawful and exemplary
penalties will be levied as per Municipal Laws.
Land which is sub-divided into plots without permission from authority is
considered illegal or unapproved layout.
No facilities such as roads, drainage, street lighting will be extended in
such areas.
Building Approval
3) Intimation of Disapproval
Intimation of Disapproval or IOD basically states conditions that needs to
be complied with during different phases of Under Construction Project.
Intimation of Disapproval in some places is also i known as Building
Permit. These conditions are normally divided into 3 parts:
(i) Immediately before commencement of construction work
(ii) During the construction period
(iii) After the construction is completed
4) Commencement Certificate in layman terms, is the permission to start
construction from local development authority. Please note that the builder
cannot lay the “Foundation Stone” & “Build Boundaries” in the absence of
these 2 critical documents.
Completion Certificate
After the construction is completed, Completion certificate
is mandatory for building constructed before selling the
building.
The completion certificate is issued after the inspection
process.
Issuing of Completion Certificate will ensure that the builder
or owner has constructed the building as per approved
plan.
Services & Utilities Installation
The builder should get approval from concerned authorities
for electricity, gas and water for potable and non-potable
use.
The building should comply with building laws for sanction
or approval of basic amenities.
The builder has to get NOC from pollution board on the
project. Builder has to get NOC from municipality or
respective authority for digging bore well.
It is essential for the approval for sewer or water supply.
Occupancy Certificate
Lastly, an occupancy Certificate is required from local body/
authority before occupation of a building or part of a building
for any purpose.
The local body forwards the proposals to the various other
concerned authorities in the city as required for issue of
case specific approvals/ NOC before granting Completion-
cum-Occupancy Certificate.
Building Permit
Property owners and developers are required to apply
to add buildings to their properties or for permits to
construct any type of building in Qatar.
The Ministry of Municipality and Urban Planning
oversees all licensing for construction.
All building designs are subject to approval by the Urban Planning Authority
(UPA) and Designs Monitoring Unit (DMU)
Application Process
Follow these steps to apply for a building permit:
Obtain application form from the Ministry of Municipality and
Urban Planning.
Complete the form, include personal details, building and site
details and land owner details.
Supply title deed, ID and proof of legal representation, if any.
Submit application with documents to the ministry for
approval.
Pay appropriate fee
Fees
Those applying to build on a new site must pay the following fees:
License fees
0.15% of estimated fees
Map checking fees
0.20% of license fees
Palestine fees
15% of map checking fees
Insurance fees
0.5% of estimated fees
Those applying to add a building to their property must pay:
Adding fees
25% of Building Permit fees
Renew Building Permit
Citizens or business people wanting to renew a building permit must do so
through the Ministry of Municipality and Urban Planning.
All renewal requests are subject to approval by the Urban Planning Authority
(UPA) and Designs Monitoring Unit (DMU).
Application Process
Follow these steps to renew a building permit:
Obtain application form from the Ministry of Municipality and Urban Planning.
Complete the form, include personal details, building and site details and land
owner details.
Supply title deed, ID and proof of legal representation, if any.
Submit application with documents to the ministry for approval.
Pay appropriate fees.
The application will be validated and transferred to the UPA and DMU, where an
engineer will study the design for approval and make recommendations to the
proper authorities. Once approved, the renewed permit will be delivered by mail or
in person.
Additional Information
A renewal fee worth 25% of the building permit fees apply .
Maintenance Demolition License
Citizens or business people wanting to perform major maintenance on
existing properties or to demolish buildings within the municipality must
first seek approval from the Ministry of Municipality and Urban Planning.
Approval may depend on the location of the land and the type of work
required.
Application Process
Follow these steps to apply for a maintenance/demolition license:
Obtain an application form from the Ministry of Municipality and Urban
Planning.
Complete the application to include personal details, building site details,
and land owner details.
Supply all required documents, including any documents outlining the
request, ID, title deed, and proof of legal representation, if any.
Submit application and documents to the ministry for approval.
Pay appropriate fees.
The application will be validated and transferred to the UPA and DMU,
where an engineer will study its design for approval and make
recommendations to the proper authorities. Once approved, the license
will be delivered either by mail or in person .
Construction Completion Certificate
Upon completing a construction project, the Building Permit holder must
inform the Ministry of Municipality and Urban Planning. Authorities will
then ensure the finished project meets the original drawings and
specifications. The ministry will then issue a certificate authorizing the
official completion of the construction project.
Application Process
Follow these steps to obtain a Construction Completion Certificate:
Obtain an application form from the Ministry of Municipality and Urban
Planning.
Complete the application to include personal details, building and site
details, and land owner details.
Supply all supporting documents, including maps, Building Permit, ID,
title deed, and proof of legal representation, if any.
Submit application and documents to the ministry for approval.
Pay appropriate fees.
If irregularities are found, the application will be sent to the Irregularities
Committee for assessment. The Construction Completion Certificate will
be delivered once it is approved .
Q&A
Quotations are letters of enquiry.
a) True
b) False
Where is the name of the company inviting mentioned in an invitation of
quotation?
a) Top left corner
b) Bottom left corner
c) Top right corner
d) Bottom right corner
A tender is advertised in ______
a) newspapers
b) business environment
c) domestic markets
d) sellers
Which of these is not mentioned in a tender?
a) Date
b) Notice number
c) Sign
d) Designation
Q&A
A voluntary arrangement between two or more parties that is enforceable by
law as a binding legal agreement is known as __________
a) job
b) loan
c) contract
d) mutual fund
How are final contracts signed in modern business?
a) e-Signatures
b) Document scanning
c) Thump impression
d) Shaking hands
An invitation to tender might not include?
a) Holiday packages
b) Preliminarie
c) A letter of invitation to tender
d) Design drawing
Mutual mistake occurs when both parties of a contract are mistaken as to the
terms.
a) False
b) True
Thank
You
