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7.0 APPENDICES
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK BRANCH IN
CHINSALI DISTRICT – MUCHINGA PROVINCE
7.4 Jumcorp
- Arithmetic error comfirmation
- Basic Price List
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK BRANCH IN
CHINSALI DISTRICT – MUCHINGA PROVINCE
1.1 Introduction
This was a reserved tender open only to 100% citizen contractors in Grade D registered with the Public
Procurement and Asset Disposal Board (PPADB). The tender closing date was on the 28 November 2013. In
total twenty five (25) sets of documents were available for collection and of these sixteen (16) attended
compulsory site visit with only eleven responding giving a 69% response. Refer to attached Schedule of
Tenders.
Our pretender estimate for this project was K 3,384,624.49 with construction period of 22 weeks. Our financial
pretender estimate was found to be slightly higher than the average but was adopted to be used for evaluating
the tenders. We therefore adopted financial tender estimate and pretender construction duration estimate as our
benchmark for evaluating tenderers. This benchmark, aided with other illustrations was used to determine a
balanced, less risky and more viable bid for possible award.
We used an evaluation system that subjected all tenderers to a two stage evaluation process. Tenderers that did
not meet the requirements of one phase would be eliminated and not considered in the next phase.
We began by checking tenderers for compliance and disqualified those that did not meet the requirements as
stipulated in the tender documents. At this instance, bids as listed below were found to be non-compliant and
subsequently eliminated;
a) EG Solar (Botswana), Ossy & Sons Investments, Cul de Sac, Champion Construction, Balolwane
Building Services, Phangastian Projects and MPP Construction.
Only Four in L&M Superbuilders, Tsabong Building Contractors, Jumcorp, and Chocholoza Building
Construction were compliant and hence evaluated on next stage.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK BRANCH IN
CHINSALI DISTRICT – MUCHINGA PROVINCE
Three remaining tenderers were then evaluated under stage 3 for financial prudence.
b) Arithmetical errors- The submitted bills of quantities are checked for arithmetical errors. Any errors so
found are communicated to the tenderer to see whether they wish to withdraw or if they confirm to stand
by their figures. In that case the errors will be dealt with in accordance with stipulated procedures in the
tender documents. Messrs Jumcorp had an error of P694, 596.00 in his favor. Upon the tenderer
confirming that they stood by their original figure they were evaluated further.
c) Preliminaries and General Items – High allowances on preliminaries make tender price sensitive
especially if extension of time is to be granted whilst low preliminaries will make the contractor struggle
with site supervision. L&M Super builders were found to have front loaded their provisions for
preliminary and general items.
d) Basic Price List – This tender is fluctuating and where there are escalations resulting from material price
increases the contractor will be reimbursed price incremental costs. Conversely if prices go down the
Client will benefit from the price difference. The basic price list of materials becomes fundamental and
form basis of escalation calculations. Tenderers are expected to include materials which they wish to be
covered against possible escalations. The current prices of such materials including transport should be
stated. Messrs L&M Superbuilders manipulated prices of all critical elements by providing low prices
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK BRANCH IN
CHINSALI DISTRICT – MUCHINGA PROVINCE
so as to benefit more in escalations. Messrs Jumcorp also had some items that were found to be
unreasonably low.
Having carried out the above analysis the tenderer posing less risks and offering client value for money was
recommended for possible award.
1.6 Recommendation
Tsabong Building Contractors provided a reasonably well priced bid with few anomalies with reasonable
construction period and offered the Client value for money. As a result the contract for Proposed
Construction of 09 No Single Storey Semi Detached Staff Housing for Tsabong CJSS is recommended for
possible award to Tsabong Building Contractors (Pty) Ltd at their fluctuating tendered amount of
P17, 441, 410.60 and duration of (44) Forty Four Calendar Weeks .
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK BRANCH IN
CHINSALI DISTRICT – MUCHINGA PROVINCE
2.0 INTRODUCTION
This was a selective tender open to only shortlisted contractors in building works as selected by Zambia
National Commercial Bank and registered with the Public Procurement and Asset Disposal Board (PPADB).
The tender closing date was on the 28 November 2013. In total sixteen contractors attended a compulsory site
visit of the 12 November 2013. Out of these, eleven responded giving a 69% response indicating a high return.
(Please see attached Schedule of Tenders) Although a very high return, it is evident that not many contractors
collected tender documents. This has been brought about by the upswing in the construction industry at present.
There has been a number of construction tenders going out lately from DTS, making many contractors quite
busy with new projects.
DURATION
NAME OF TENDERER AMOUNT TENDERED (Weeks)
1 Dramoll Limited 3,213,264.71 26
2 Hua Chang Infrastructure 3,355,116.00 42
3 BL Consulting and Construction 15,833,210.95 40
4 Astroworks Zambia 17,184,725.60 42
5 Achates 17,362,466.24 43
6 Espeka 17,441,410.60 44
The results of tenders received are as tabulated above. The results show a margin of P4, 846,356.77 between
the highest and the lowest bidder. This margin is huge and clearly, as evidenced above, does not reflect the
mood of the received bids. A closer scrutiny of the submitted bids indicate that 06 No. (Six) bids are within a
margin of P592, 303.32.Based on this and disregarding the highest and lowest outliers, the bids show estimating
and pricing levels that are thorough, tight, competitive and reflective of the market climate.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK BRANCH IN CHINSALI DISTRICT – MUCHINGA
PROVINCE
As indicated earlier the highest bidder is P4, 846,356.77 above the lowest. This translates into about 33.85% variance. (Refer Table B below) On
the other hand six tenderers are within the margin of P592, 303.32 showing a relatively close margin within the middle of the park, and a good
degree of competitiveness.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK BRANCH IN CHINSALI DISTRICT – MUCHINGA
PROVINCE
Table B - Variance
Tender Average P 17,523,093.98
NAME OF TENDERER AMOUNT TENDERED Variance from Lowest Tender Varience from Tender Estimate Variance between Tenders
(P) % Amount (P) % Amount(P) % Amount(P)
E.G Solar 14,315,325.92 0.00 0.00 18.31 3,207,768.06 0.00 0.00
Ossy and Sons 14,711,530.40 2.77 396,204.48 16.04 2,811,563.58 2.77 396,204.48
L.M. Super Building Company 17,362,466.24 21.29 3,047,140.32 0.92 160,627.74 1.03 177,740.64
Tsabong Building Contractors 17,441,410.60 21.84 3,126,084.68 0.47 81,683.38 0.45 78,944.36
Balowane Building Services 17,690,263.92 23.58 3,374,938.00 -0.95 -167,169.94 0.04 7,595.32
Chocholoza Building Construction 17,777,028.92 24.18 3,461,703.00 -1.45 -253,934.94 0.49 86,765.00
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
The pre tender estimate was pegged at P18, 325,000.00 with construction duration of 44 weeks.
This estimate was to our knowledge and experiences a true reflection of the cost of the project. In
arriving at the figure we included the following:
a) 10% Profit Margin compounded in the trade rates ;
b) 7% Preliminaries and General Items; inclusive of
c) Location factors for works carried out in remote areas
It turned out that our financial pretender estimate was higher than most of the submitted bids.
Perhaps the participating tenderers are desperate for work given the current economic conditions
and in such circumstances; tenderers usually opt for low profit margins resulting in low bids. In
particular, only two tenderers came above our estimate. The bids revealed a close competition
between fourth and ninth lowest tenderers. These bids all occur within a margin of
P592, 303.32. With this observation in mind we concluded that our financial pretender estimate is
not suitable to be used as a benchmark for evaluating the submitted bids. The tender average will
have to be computed instead and used as the basis for evaluation.
In computing the tender average, we felt it would be prudent to disregard outliers (bids who in our
opinion are either too high or low both in cost and/or time) and compute financial tender average
in isolation from tender duration average. This is so because it is not necessarily true that a
financially viable bid will give reasonable time duration. Conversely a bid that is not economically
viable does not necessarily mean its duration is unreasonable.
For instance MPP Construction bid at P19, 161,682.69 and Phangastian Projects at
P18, 783,127.90 are too high and uncompetitive. Their financial bids will not be considered in
computing the average since this will distort the average figure. On the other hand, EG Solar, Ossy
and Sons Investments and Cul de SAC at P14,315,325.92, P14,711,530.40 and P15,833,210.95
respectively are low and would pull the average figure down, hence not considered. Therefore the
computation of the financial tender average will comprise Tenderers 4, 5,6,7,8 and 9. With regard
to average construction duration, 26, 38 and 52 weeks were considered either too low or high and
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
thus not considered. The computation of the tender average duration will thus comprise Tenderers
2,3,4,5,6,7,8 and 10. Please see (Table A; Tender Results)
We strongly believe the above tenderers have their bids close to each other. In light of the
foregoing, the tender average yielded is P17, 523,093.98 with duration of 45 weeks. Although our
pretender financial estimate of P18, 325,000 is not too distant from the computed tender average,
the financial tender average is more comparable to the submitted bids and as a result we will
adopt the financial tender average as the basis for evaluation of tenderers. On the other hand our
construction duration of 44 weeks proves to be very comparable with the bids and the tender
construction duration average of 45 weeks. So we will discard the tender average tender duration
of 45 weeks and adopt our pretender estimate construction duration of 44 weeks for evaluating
tender durations. Therefore the benchmark to be used in evaluating the submitted tenderers will be
P17, 523,093.98 with construction duration of 44 weeks.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
The evaluation process will be conducted using a three-phased analysis as outlined in the tender
documents and will adopt the least cost works as per regulation 46 of PPADB Act. These are:
All submitted bids were subjected to this stage for test of compliance. The results are tabulated as
hereunder;
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Table C- Compliance
Phangastian
Chocholoza
L.M. Super
Champion
Cul de Sac
Balowane
E.G Solar
Jumcorp
Tsabong
M.P.P
1 Submission of a certified copy of PPADB Registration in category D or E Code 01 -
a a a a a a a a a a a
Bulding Sub Code 01 - Construction (Certified by PPADB) for main contractor,
mechanical subcontractors
5 Submission of tender documents One (1No) original and Three (3No) copies should
a a a a a a a a a a a
be properly labelled ORIGINAL AND COPY respectively and should be put in one
single envelope
The above table results indicate compliance by a ‘tick’ and non compliance by way of a ‘red
cross’. Having carried out the foregoing the following were observed;
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Intent to submit performance bond: The bond was to be issued by Bank of Botswana
registered financial institutions or non banking financial institutions registered by NBIFRA.
Ossy & Sons Investments did not comply.
Returnable documents for bid bond: The financial tender security issued by a financial
institution registered by Bank of Botswana in an approved format was essential. EG Solar,
Ossy& Sons, Cul de Sac, Champion, Phangastian and MPP Construction did not comply.
With the above findings we weighed up the gravity of the above non compliance instances to
establish if they warranted disqualification outright or perhaps further evaluation would be
necessary. As clearly stipulated in the tender documents, the above requirements are deemed as
fundamental and should be fulfilled in full for further evaluation. Failure to adhere to these
requirements will result in tenders being rejected.
As a result of the above, EG Solar (Botswana), Ossy & Sons Investments, Cul de Sac, Champion
Construction, Phangastian Projects and MPP Construction were all disqualified for not providing a
valid bid bond.
Balowane Building Services was disqualified for failing to submit a duly completed declaration
form. In particular they failed to provide forms 2(c), d, 4 and 5 which are a pre requisite for a
proper duly signed declaration form. It should be noted that that this tender was only open to 100%
citizen contractors and it is the aforementioned forms/documents that assist in establishing the
genuinety of the company.
With the above assessment completed, only four tenderers were found to be compliant for further
evaluation in the technical assessment;
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Only four tenderers have complied with stage 1 requirements and these they will be subjected to
technical assessment. They are messrs L&M Superbuilders, Tsabong Building Contractors,
Jumcorp (Pty) Ltd and Chocholoza Building Construction. A brief compliance under this stage is
tabulated as hereunder;
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Chocholoza
L.M. Super
Jumcorp
Tsabong
`
1 Reference Schedule of Cirriculum Vitae of Key staff (T2.2GK) - The proposed Project
Manager/Contractor's representative of the project must have a technical
qualification
1.2 Site agent: The site shall have at least one key personnel (site agent) and must
have at least 5 years experience with minimum 2 years as site agent, a substantial a a a a
portion of experience be in Southern Africa region
2 Reference Schedule for Plant and Equipment for the proposed project (T2.2WC)
2.1 Bakkie (three) - one for the exclusive use of the project manager and other for use
on buying, shifting/movement of materials etc. or for the use by site agent. Blue a a a r
books to be provided
3.1 The buildings should be broken down into the following minimum elements;
foundations, walls, roof construction, finishes and fittings, electrical services, a a a r
mechanical services and external works services.
3.2 Durations of the elements must be linked to give an overall duration (i.e. indicate
a a a a
a critical path)
3.3 The overall duration should not exceed the stipulated project duration
a a a a
4.1 Provide a SHE offi cer with at least a certificate to be responsible for the above
a a a r
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
L&M SUPERBUILDERS
Key Personnel
The proposed staff in the employment of L&M Superbuilders appears adequate for a project of this
magnitude. The proposed Project Manager is qualified with a Building Diploma and has extensive
experience spanning a total of 28 years. The tenderer intends on deploying a Site Agent qualified
with degree in Civil Engineering. We believe the proposed personnel will be able to see the
project to full completion.
Plant& Equipment
The list of plant and equipment provided is adequate to carry out this project especially that they
own some of the plant. They have provided vehicle registration documents as evidence of
ownership. We have no doubt that in the event more plant and equipment is needed L&M
Superbuilders will be able to hire out.
Management Plan
The tenderer’s proposed method statement and quality assurance plan is detailed and covers all the
critical areas that may pose risks to the welfare of the workforce and works themselves. We
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
however have concerns regarding the proposed SHE officer’s qualifications. The SHE officer
proposed has been trained in safety in scaffolding only. Please see attached SHE officer. SHE
officer’s credentials should cover issues of health, legislation, policies and best practices adhered
to; such as monitoring and reviewing preventative measures to minimize occupational health
problems, accidents and injuries in the work place. We believe the SHE officer proposed is not
suitable in this regard.
Key Personnel
The submitted list and accompanying CV for the proposed staff is adequate and well trained.
Tsabong Building Contractors intends to deploy a Project Manager holding a degree in quantity
surveying with a post qualification experience of more than 15 years. The Site Agent on the other
hand, holds a Diploma in Civil Engineering with total experience of more than 20 years. It is
apparent from the submitted CVs of these personnel that they are experienced and have been
involved in similar projects in the past. We believe that they will be able to see the project to
successful completion.
Tsabong Building Contractors has submitted a comprehensive list of plant that is adequate to carry
out the works. Some of the plant that they own includes bakkies, backhoe loaders, tipper trucks
and horse and trailers. They submitted certified vehicle registration documents as evidence of
ownership. We have no doubt that the listed palnt and equipment is sufficient to carry out the
proposed works and should more plant be required they will be able to hire additional plant.
Management Plan
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
The outlined method statement and quality assurance plan are comprehensive. When viewed
alongside the submitted construction programme the works can be executed and completed in
time.
The method statement for carrying out the works indicates a high level of adherence to safety
regulations. Their proposal will need to be monitored by a well trained SHE officer. The tenderer
has employed a well trained SHE officer. Please refer to attached certificate. The officer’s
qualification is appropriate in that it has covered all SHE critical areas such as occupational health
and safety, risk management, machine and fire safety, accident investigations, ergonomics,
construction safety and hazardous substances among other things.
We believe that the deployment of a SHE officer with this training, the Health& Safety regulations
will be fully complied with.
Key Personnel
Jumcorp is well resourced with well trained personnel covering all required levels of construction
expertise. They propose to deploy a Contracts Manager with an approved building engineering
with more than 10 years of experience in construction industry.
Project Management will be vested in the hands of a qualified quantity surveyor with a post
qualification experience of more than 15years. This project manager has extensively been
involved in projects of this kind. The Site Agent will be a qualified Structural Engineer with more
than 15years experience in the building environment.
The staff compliment as proposed by messrs Jumcorp is impressive and suitable to see the
completion of this project. It should be noted and commended that Jumcorp proposed key
personnel are all Batswana. This falls in line with the objectives of the government in training
Batswana and reserving work for them.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Messrs Jumcorp has adequate plant and equipment necessary to see out this project to full
completion. They own most of their plant and equipment such as JCB backhoe loaders, JCB load
all, horse and trailers and tipper trucks. They have attached motor vehicle registration documents
as evidence of their ownership. We have no doubt that the tenderer will be in a good position to
hire additional plant they may so require.
Management Plan
The method statement as submitted is comprehensive and achievable. They have amassed relevant
experience in similar projects and should be able to execute the works within set time. Their
proposed construction duration although somewhat high is sufficient to see out the project. Also
their works program is in harmony with the quoted duration and has addressed all critical elements
as required.
Jumcorp has provided a comprehensive quality assurance plan and check lists which will be
monitored by an SHE officer with a degree in Environmental Science.
Key Personnel
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
The proposed staff for Chocholoza Building Construction generally appears adequate for the
project of this magnitude. The proposed Project Manager is a qualified Quantity Surveyor with
more than 17 years of post graduation qualification experience. The tenderer has proposed to
deploy a Site Agent of over 20 years’ experience, qualified in Civil Engineering. This is aqequate.
The tenderer has provided a list of Plant & Equipment; however they did not attach blue books as
per requirement. We are therefore unable to attest if Chocholoza Building Construction has any
plant and equipment in their ownership since they failed to provide the required blue books.
Management Plan
The submitted programme of works is not adequate and comprehensive! The programme does not
show a minimum requisite elements as outlined in the tender documents. These are, but not limited
to, foundations, walls, roof construction, finishes and fittings, electrical services, mechanical
services and external works services. The tenderer only provided a general works programme
contrary to what was required.
Chocholoza Building Construction did not attach a SHE officer’s certificate nor the officer’s CV.
A SHE officer is very crucial and it is a government requirement to have a SHE officer on a
project of this magnitude. This non provision comes across as a serious omission from
Chocholoza’s part.
In view of the above we conclude that the technical bid as submitted by Messrs Chocholoza is not
compliant in this regard and as such their evaluation will not be considered any further.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
The financial compliance evaluation results for the shortlisted tenderers as appearing hereunder;
2 Failure to allow for VAT and/or to stand by the bid amount shall render the Tender
Non-Compalint and the next compliant lowest tender of works a a a
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
L&M SUPERBUILDERS
Their submitted tender is P17, 362,466.24 with duration of 43 weeks. They are the lowest of the
shortlisted tenderers. Their tender sum is P160, 627.74 below the tender estimate. This is evident
on the attached Variance Table F for the shortlisted tenderers only.
NAME OF TENDERER AMOUNT TENDERED Variance from Lowest Tender Varience from Tender Estimate Variance between Tenders
(P) % Amount (P) % Amount(P) % Amount(P)
L.M. Super Building Company 17,362,466.24 0.00 0.00 0.92 160,627.74 0.00 0.00
Tsabong Building Contractors 17,441,410.60 0.45 78,944.36 0.47 81,683.38 0.45 78,944.36
Arithmetic Check
In exception of facing bricks which have been priced on the low side Messrs L&M Superbuliders
pricing is generally fair and comparable with the shortlisted tenderers and tender average. We
however noticed two serious anomalies with their pricing levels.
Firstly, their Preliminaries and General Items of 9 % are on the high side. The tender average is
7% and rightly so since this contract is fluctuating and the tenderers will be recompensed for any
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
extra costs in materials escalations. Over and above the high P&Gs we noticed that tenderer’s
fixed items of P&GS are about 60% of the total P&Gs! This is a clear case of front loading where
the contractor will have to be paid 60% of their P%Gs on their first payment certificate. This is
not acceptable. Usually the P&G’s breakdown is 15% of Fixed Items, 10% of Value and 75% of
Time Related.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
L.M. Super
Jumcorp
Tsabong
L.M. Super Tsabong Jumcorp
PRELIMINARY AND GENERAL ITEMS 950,000.00 750,000.00 862,642.00 1,007,499.81 -5.71 -25.56 -14.38
PC's & PS's 1,490,350.00 1,543,700.00 1,509,010.00 1,529,026.67 -2.53 0.96 -1.31
BUILDING
ADD 12% VAT 1,860,264.24 1,868,722.56 1,894,571.64 1,877,474.36 -0.92 -0.47 0.91
Secondly their basic price list on critical elements on this project has been priced very low. With
under priced list of materials the difference between the actual price and the provided price will be
big thereby unfairly rewarding the contractor for escalations that they did not experience. This
should not be allowed. Please refer to the attached table on basic price critical elements appearing
below.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
The above table shows that L&M Superbuilders has priced all critical elements low
We also notice that the contractor has decided not to price for profit and attendance on the PC
Sums and rock. We believe this was the contractors attempt to keep their tender sum low having
overpriced in P&Gs. Should rock be found on site the contractor will be expected to remove it at
their price of P1.00/m3 as quoted.
Duration
Conclusion
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
In view of the tenderers high P&Gs and an unrealistic basic price list their bid does not offer the
Client value for money. In fact their bid will end up being too expensive as Client will have to pay
the contractor huge sums of money that they do not deserve. We therefore find L&M
Superbuilders bid to be posing high levels of risk.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Arithmetic Check
Their bills of quantities were scrutinized and found not to have any arithmetical error.
The rates submitted are generally consistent throughout the bills with no serious anomalies. More
so their rates compare favourably with the tender estimate except for facing brick and interlocking
pavers which are on the high side. The contractor does not show distinct signs of front loading or
suspect distribution of rates. Tsabong did not price for rock and should rock be found during
construction the contractor will be expected to remove it at no compensation.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
2 Extra over excavation in rock m3 1.00 0.00 300.00 148.50 -99.33 -100.00 102.02
4 Reinforced concrete 15 Mpa m3 1,615.00 1,700.00 1,630.00 1,362.50 18.53 24.77 19.63
4 Reinforced concrete 25 Mpa m3 1,800.00 1,850.00 1,737.00 1,581.17 13.84 17.00 9.86
5 Bar reinforcement ton 11,800.00 12,000.00 16,000.00 12,966.67 -9.00 -7.46 23.39
6 Half brick walls m2 220.00 165.00 161.00 169.33 29.92 -2.56 -4.92
6 One brick walls m2 424.00 317.00 388.00 343.17 23.55 -7.63 13.06
7 Face brick walls (115mm) m2 100.00 150.00 150.00 120.83 -17.24 24.14 24.14
7 Extra Over face brick m2 100.00 220.00 71.00 116.83 -14.41 88.31 -39.23
8 Roof coverings-IBR Z275 m2 146.00 170.00 135.00 156.83 -6.91 8.40 -13.92
12 Vinyl floor tiles m2 125.00 110.00 181.00 139.83 -10.61 -21.33 29.44
18 450x600mm Type D manhole cover no 1,500.00 1,350.00 650.00 1,025.00 46.34 31.71 -36.59
19 80mm interlocking pavers m2 215.00 225.00 48.00 176.33 21.93 27.60 -72.78
19 Fig 3, concrete kerbs m2 232.00 245.00 215.00 198.67 16.78 23.32 8.22
20 Manholes, size 915 x 1150 intl no 5,200.00 1,500.00 2,600.00 2,683.33 93.79 -44.10 -3.11
20 Light duty cover 600x600mm, Type 9B no 950.00 750.00 1,210.00 955.00 -0.52 -21.47 26.70
The Preliminaries for Tsabong are pegged at 7% of builder’s work which in our considered
opinion is reasonable. As earlier indicated we are of the opinion that 7% of builders work is
adequate to cover for these works. We notice that the tenderer has allowed 5% for profit and 5%
for attendance. We believe this allowance is reasonable especially that the works are not complex.
As evidenced in the table below Tsabong basic price list is reasonable and reflects the market rate.
They have also attached quotations from suppliers to validate their prices.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Duration
The tenderer has proposed a construction period of 44weeks. This compares very well with the
tender average (benchmark) and is reasonable. We have no doubt that the contractor will be able
to deliver within the set duration
Conclusion
In view of the fairly reasonable and consistent rates and achievable contract duration consider the
bid as submitted by Tsabong Building Contractors as posing less risk.
Their submitted tender is P17, 682,668.60 with construction duration of 49 weeks. This bid is the
highest of the shortlisted bids and P241, 258.00 above second lowest. Their tender sum is
P159, 574.62 above the tender average.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Arithmetic Check
Upon checking their priced bills of quantities an arithmetical error of P694, 596, 00 was
discovered in favor of the tenderer. The tenderer was alerted of the error upon where they
confirmed that they stood by their tender sum. Please see attached confirmation. Jumcorp’s
arithmetical error was a result of an error in the product of the quantity and rate of the interlocking
pavers. This error was corrected in accordance with the stipulated procedures in the tender
documents which states that, where; error from the line item total resulting from the product
of the unit and the quantity, the line item shall govern and the rate shall be corrected. As a
result the rate for interlocking pavers was changed from P48/m² to P248/m².
Messrs Jumcorp rates are generally consistent with some high and others low but altogether
reasonable. Their preliminaries are pegged at 7% of builder’s value which in our opinion is
sufficient. Their rates for bar reinforcement and concrete are on the high side. Please see attached
table on comparison of key rates. Some of their basic price list on critical items is on the high side
as evidenced by the table appearing below.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
The tenderer has allowed a 3% on profit and 3% on attendance over all PC Sums. The allowance
is on the low side. We believe that since their P&Gs are adequately provided for their low margins
on profit and attendance does not pose any risks.
Duration
The tenderer has proposed a construction period of 49 weeks which is on the high side and does
not offer the Client any time benefit period.
Conclusion
Jumcorp tender is characterized by some unreasonable prices which are a case for concern. We
conclude that Jumcorp’s tender does pose some risks.
From a total of eleven submitted tenders we have eliminated eight tenders through reasons
advanced earlier. The remaining three, after being subjected to a thorough assessment still leave
the following concerns unanswered.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Their submitted tender is P17, 362,466.24 and tender duration of 43 weeks. This bid is the lowest
of the shortlisted tenderers and compares very well with the tender average. However, their
Preliminary and General Items have been pegged on the high side with the fixed items taking
about 60% of the total costs. This is front loading and should be discouraged as it disadvantages
the client financially should the contractor fail to complete the works.
Again they have submitted a basic price list which is made up of low prices on critical items.
Items such as facing brick, cement, stock brick, and interlocking pavers will be required in large
quantities and any underpricing will make the cost of escalations unfairly high resulting in the
Client paying out fluctuations costs which are not genuine. We deem this as a serious risk!
L&M Superbuilers’ SHE officer does not pose the right qualifications. The tenderer will have to
source a qualified SHE officer to monitor safety regulations on site. On the basis of the above, the
risks inherent in this bid outweigh any value for money to the Client and as a result this bid will
not be considered any further.
Their submitted tender is P17, 441, 410 with tender duration of 44 weeks. This is the second
lowest under consideration. This tender is P78, 944.36 above the lowest tender.
Of the three shortlisted tenders Tsabong Building Contractor’s submission appears to offer less
risk with value for money. We note that some of their rates are on the high side especially the
facing bricks however this will be mitigated by other low priced items elsewhere. Therefore we
believe this bid is more suitable for possible award.
Jumcorp submitted a bid of P17, 682,668.60 with tender duration of 49 weeks. Although the bid is
the highest of the evaluated submissions it is only P241, 258.00 above the second lowest.
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PROPOSED CONSTRUCTION OF ZAMBIA NATIONAL COMMERCIAL BANK
BRANCH IN CHINSALI DISTRICT – MUCHINGA PROVINCE
Jumcorps bid is generally impressive safe for some critical items in the basic price list which have
not been priced at market rates. When escalations costs are paid the contractor will be rewarded
unfairly. This is a concern! Again their overall bid does not offer any value for money better than
Tsabongs.
As a result of the above we are skeptical in recommending this bid for possible award.
5.0 CONCLUSION
Having thoroughly assessed all short listed tenderers we find that only two tenderers are
technically capable of executing the works.
Tsabong Building Contractors (Pty) Ltd level of pricing can be regarded as consistent and
comparable to our tender estimate. Their preliminaries are adequate to cover for the running of
the project granted sound management. They have already successfully carried other project in the
past and as a result we have no reservations in recommending them for further considerations.
Messrs L&M Superbuilders tender is generally front loaded in P&GS and the basic price list is
not market based. The tenderer did not provide a suitable SHE officer able to manage this contarct.
Their bid was therefore found to be too risky for possible award.
Messrs Jumcorp although technically capable of undertaking this project, has submitted an
imbalanced financial tender which may impact negatively on the client. Their bid is not the most
suitable for award under this valuation.
In light of the foregoing, we believe that the tender submitted by Messrs Tsabong Building
Contractors (Pty) Ltd is more appropriate for possible award.
6.0 RECOMMENDATION
This report was communicated to the other consultants in the team for their perusal and comments,
i.e. Pinagare Architects, JJ Design, G4 Consulting and Systems and Services.
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