Beruflich Dokumente
Kultur Dokumente
• Tendering process
• Tender and Contract Documents
• Insurances and bond
• Progress payment
• Variation order
• Extension of time
Tender process
1. Appropriate contract 6. Receipt and opening tenders
procurement method selection 7. Evaluation of tenders
method 8. Tender acceptance
2. Tender lists development
3. Tender document preparation
4. Calling of tenders
5. Preparation and submission of
tenders
TENDERING PROCESS & PROCEDURES
Types of tender
Open tendering
- The main tendering procedure employed by both government and private
sector.
- The procedures of inviting offers from registered contracting firms
through tender advertisement normally in the general press.
- A tender advertisement provides information such as outline details of
the work, its scale and programme, tendering period, class or grade of
registration of contracting firms eligible to tender, etc.
- All eligible contractors have the opportunity to tender and maximum
competition may be achieved.
TENDERING PROCESS & PROCEDURES
Types of tender
Selective tendering
- The procedures of inviting offers from a limited number of registered
contracting firms, normally through client’s personal contact,
recommendation from consultants or third parties known to the client.
- In the public sector, the names of contracting firms are drawn from the
list of registered contractors that have proven experience and track
record in constructing projects similar to the one being tendered.
- A common approach in the selection of a successful contractor in a
design-build project.
TENDERING PROCESS & PROCEDURES
Types of tender
Negotiated tendering
- In a negotiated tender, there are provisions in the conditions of tendering
for a negotiation or a series of negotiations to be held between tenderers
and the client.
- A client would carry out parallel negotiation with the lowest two or three
contracting firms whose bids meet the technical detail and specifications.
Normally the key issue in the negotiation is the tender price.
- In design-build or turnkey system, negotiation may become essential in
order to facilitate evaluating incomparable offers since contractors may
be required to offer competition in both design and prices.
TENDER & CONTRACT DOCUMENTS
Tender Documents
● Normally before calling for tender, a Table Tender Document (TTD) will be
prepared. It will be displayed during the period of calling for tender. TD
normally will be placed at the same office issuing the tender.
Form of Tender
A form used by tenderer to participate in the tender by filling up important
information including the tender price and time completion.
TENDER & CONTRACT DOCUMENTS
Letter of Acceptance
● A letter by client to state his acceptance towards the tender offered by a
contractor.
● It is sent to the contractor to be kept.
Articles of Agreements
It describes in general terms the parties, the contract works and the price,
and evidences the intention of the parties to be bound.
● Brief description of Project
● Location of Site
● Commencement Date
● Name of the parties
● Obligation of parties
● Price to be paid
● Name of consultants
● Time for Completion
● List of contract documents
Why use Standard Form of Contracts?
● Compromise solution
● Risks are allocated relatively fairly
● Time-tested
● Certainty in meaning
● Saves time and costs
TENDER & CONTRACT DOCUMENTS
Conditions of Contract
● Certain design and build contracts replace the documents listed above
with three alternative documents comprising the 'Employer's
Requirements’ issued by the employer and the 'Contractor's Proposals'
and the ‘Contract Sum Analysis’ submitted by the contractor.
TENDER & CONTRACT DOCUMENTS
Obligations of Parties
TENDER & CONTRACT DOCUMENTS
Key Dates in a Construction Contracts & Obligations of Parties
PERFORMANCE BOND
What is Performance Security/Bond?
NB: Stage payments may not be appropriate for contractors with poor cash
flow.
PROVISIONAL SUM & PRIME COST SUM
PS & PCS
● Omission of work
Compliance to the rules, regulation or law
Compliance to the client’s instruction
● The employer may take over the works when the works have been
completed in accordance with the contract and the relevant certificate
has been issued certifying the completion of the works.
● What constitutes completion of the works may differ from one project to
another. Typically, substantial completion will suffice where the employer
has the full and proper beneficial use of the works with only minor
defects. Other conditions may also be imposed such as the issuance of CF
and completion of testing and commissioning of the works to the
satisfaction of the employer.
COMPLETION & TAKING OVER
Workflow for Taking Over
DEFECTS LIABILITY PERIOD
Defects Liability Period (DLP)
● It is common in construction contracts require the contractor to warrant
that the works upon completion are free from defects and to make good
defects which appear during the defects liability period.
● It is during the defects liability period that the employer has the right to
call for the contractor’s physical return to the site after the employer has
taken over the works. The employer must serve a notification of defect on
the contractor and the contractor is required to make good the defect
within a reasonable period.
● If defects appeared after the expiry of the defects liability period, the
employer’s remedy in most cases is limited to pursuing a legal claim in
damages.
DEFECTS LIABILITY PERIOD
Defects Liability Period (DLP)
● In practice, such defect liability period clauses also work to the advantage
of the contractor given that remedial works can usually be carried out
more cheaply by the contractor than other 3rd party contractors.
LIQUIDATED & ASCERTAINED DAMAGES
Liquidated and Ascertained Damages (LAD)