PROFESSIONAL PRACTICE I

[QSD 289]

TENDERING PROCEDURES
Mohammad Nasharudine Shuib

contents
SECTION

DESCRIPTIONS

INTRODUCTION

WHAT IS TENDER?

WHAT IS TENDERING?

DIFFERENCE BETWEEN TENDER &

CONTRACT

TENDER NOTICE

OPEN TENDER

SELECTIVE TENDER

DIRECT NEGOTIATED TENDER

TENDER VALIDITY PERIOD

10

TENDER SUBMISSION

11

TENDER OPENING PROCESS

LINKS

SECTION 1

INTRODUCTION

INTRODUCTION
1.

The objective of tendering is to select a

suitable contractor at an appropriate time
and obtain from him an acceptable offer
upon which a contract can be let.

2.

Generally there three (3) types of tendering

used:

Open Tendering

Selective Tendering

Negotiated Tender

SECTION 2

WHAT IS TENDER?

WHAT IS TENDER?

Tender is an offer which incorporates the sum of

money, time and other conditions required to
carry out the contract obligations in order to
complete a project or a part of it consisting of
specified works.

SECTION 3

WHAT IS TENDERING?

WHAT IS TENDERING?

Tendering is the management and commercial

function of determining the tender based upon
the estimate and other details prepared by
contractors estimator and other personal.

SECTION 4

DIFFERENCE BETWEEN
TENDER AND
CONTRACT

Difference between a Tender and a

Contract

People often use the same terms for different

things and different terms for the same thing.
The term tender formally means an invitation to
trade under the terms of offer. A contract is the
term used for when the parties have reached
agreement.

SECTION 5

TENDER NOTICE /
TENDER
ADVERTISEMENT

TENDER NOTICE / TENDER

ADVERTISEMENT
Format of ideal Tender Notice

Name of the Project.

Name & Address of the Client.

Name of work, materials or services.

Place of work location.

Period of completion.

Date on which the Tender Document sale commences.

Date and time up to which tender documents can be obtained.

The cost of tender documents.

The date and time up to which the tenders to be submitted and

are to be opened.

EXAMPLE

EXAMPLE

SECTION 6

OPEN TENDER

OPEN TENDER

Open
to
all
eligible
contractors
Invitation to tenders through the mass media (e.g.
general press)

A tender that received a result of competitive tender.

Maximum competition

A tender document
contractor.

The system of invitation of tender by public

advertisements through Newspapers or the Internet in
the most open public manner is called the Open Tender
System.

This is most effective way of obtaining competitive

rates.

fee

is

required

from

each

OPEN TENDER
Advantages of Open Tendering

No favoritism Introduction
Maximum competition.

to

new

firms

Disadvantages of Open Tendering

Is the lowest firm capable?

Is it financially secure?

Experience in tender submission?

Cost of tendering increased as number of

tenderer increases

OPEN TENDER
MANAGEMENT
CONTRACTING
DES IGN AND
BUILD
CONTRACT

COMP ETITIVE
TENDER

ADVANTAGES

P RIVATE FUNDING
INITIATIVE
CONTRACT (P FI)

OP EN TO ALL
CONTRACTORS

TURNKEY
CONTRACT

S UITABLE TO
P UBLIC P ROJ ECTS

SECTION 7

SELECTIVE TENDER

SELECTIVE TENDER

As the name implies, a list of selected tenderers

is produced as a basis for this method of
obtaining tenders.

The design team together with Client will

normally determine which contractors will be
invited to tender.

Design team will take into account contractors

track records, business record, financial
stability and capacity to carry out project.

introduction
BILLS OF
QUANTITIES

MEAS UREMENT
CONTRACT

BILLS OF
AP P ROXIMATE
QUANTITIES

S CHEDULE
OF RATES

DRAWINGS &
S P ECIFICATIONS

introduction
MANAGEMENT
CONTRACTING
DES IGN AND
BUILD
CONTRACT

TRADITIONAL
CONTRACT

CONTRACT
P ROCUREMENT
METHODS

P RIVATE FUNDING
INITIATIVE
CONTRACT (P FI)

BUILD, OP ERATE &

TRANS FER
CONTRACT (BOT)
TURNKEY
CONTRACT

BUILD, LEAS E &

TRANS FER
CONTRACT (BLT)

SECTION 8

NEGOTIATED TENDER

NEGOTIATED TENDER

Series of negotiation will take place between

the client and selected contractor. Normally
under design and build procurement.

In this method the price to be paid in return of

the work to be done is negotiated with a single
contractor.

This , obviously, does not provide the owner

with a comparative prices.

NEGOTIATED TENDER

Though the cost of a work will be higher in this

method, an owner may expect some advantages
from employing a particular contractor whose
policies and methods are known and who has in
the past proved capable of fulfilling his
obligations.

The higher cost may be offset by better quality,

early completion, and smooth administration.

NEGOTIATED TENDER

The negotiated construction bid procedure can

be adopted to the owners advantage if the
chosen contractor is one in which the Owner
and the Engineer have confidence, and which is
of known integrity and reliability.

Moreover, the work to be carried out is within

his special scope and experience.

introduction
BILLS OF
QUANTITIES

MEAS UREMENT
CONTRACT

BILLS OF
AP P ROXIMATE
QUANTITIES

S CHEDULE
OF RATES

DRAWINGS &
S P ECIFICATIONS

Thank you