LECTU

RE 4
TENDERING PROCESS
: TENDERER’S
SELECTION AND
EVALUATION
DR NOREHAN MOHD
TWO STAGES OF TENDERING PROCESS:
1st STAGE INVITATION TENDER NOTICE
TO BID
TENDER PURCHASE
TARIKH DOKUMEN TENDER
DIJUAL

TENDER CLOSE / TENDER

SUBMISSION
TARIKH TENDER DITUTUP

2nd STAGE TENDER TENDER SELECTION

SELECTION &
TENDER TENDER EVALUATION /
EVALUATION ADJUDIFICATION
PROCEDURES
TENDER REPORT
TVP
TENDER BOARD MEETING

TENDER SELECT AND ENDORSE

BY TENDER COMMITTEE BOARD

TENDER AWARD

TENDER DITAWARKAN
MELALUI SURAT SETUJUTERIMA

3rd STAGE CONTRACT SITE CONSTRACTION

STAGE MANAGEMENT
 CONTRACTOR ACCEPTANCE
AND AGREEMENT

CONTRACT
STAGE SITE COMMENCEMENT
/ PEMILIKAN TAPAK

CONSTRUCTION WORK

HANDING OVER

OCCUPATION
The Objective Of Tender Procedures - Process Of Selecting
A Eligible Contractor
Generally, the aim of tendering procedure is to select
the contractor and determine the tender price, which will
then be turn into a construction contract price.
The tender procedure is pre-screening techniques or pre
qualify used to all bidders / tenderers as the best
way to achieve the objective; by issuing bidding
document.
Methods and techniques used to pre qualify prospective
bidders will vary but essentially, they should prove by
evidence of capability from previous projects and of
financial strength sufficient to handle the project.
 1st stage - TENDER NOTICE
Tender Notice is a formal offer in writing - to offer a
job or request services in return for a stated amount of
money and by a stated date.

It is also an announcement displayed and delivered

publicly by the organization to inform and request
interested contractors, suppliers or firms to carry out a
project, or to cater equipment or services for the
organization.

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 TENDER NOTICE

TENDER NOTICE describes the statement of tasks or

work outline offered by the clients to any interested
parties (contractors) to carry out the job.

Generally the tender notice in Malaysia is publicized in

the local mass media, both the Malay and English
newspaper in the advertisement columns and also the
electronic media such as the internet , e.g official website
or e-business. (part of open tender)

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 TENDER NOTICE

The purpose of tender notice includes:

To inform interested parties that there is a job tender to be offered.
To invite qualified parties to take up the offer and provide
services.
To sell the document tender.
Client’s specification for the job.
Tender document will inform part of the contract document at the
later stage.

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 Contents of Tender Notice
1) the name of the customer’s organization and its logo in the
tender notice.

2) the word “Tender Notice or Invitation of Tender”, and its

tender number and references.

1) Tender qualification or pre qualifications:

 eligibility criteria on whom should participate in the
tender.
 Contractors are registered with bodies such as Pusat
Khidmat Kontraktor (PKK), CIDB, Ministry of Finance
(MoF) and government agencies such as Public Works
Department (PWD) or Jabatan Kerja Raya (JKR), MARA,
Tenaga National or SIRIM etc
 …Contents of Tender Notice
4) Tender Description
the scope of the project and the outline of the tasks
or scope of work the customer wants the contractor to
perform or deliver.

5) Tender document fees and modes of payment, date and

time details:
- fees imposed to purchase the tender document
- payment method: cash, bank draft, banker’s
cheque, money order, bank guarantee and
time and date when tender document is available.
…Contents of Tender Notice
6) Request for site visit
Pre-tender visit (if necessary), site visits are
compulsory before the purchase a tender
document.

7) Earnest money (tender deposit)

-deposit is refunded to unsuccessful tenders.
This is to ensure only parties who are really
interested are involved in proceed the tender.
…Contents of Tender Notice
Submission of tenders and address
specify closing dates and time for tender and the
address to submit the document tender.

Clause of indemnity
the client is not binded to accept the lowest bidder
or quotations nor to assign any reason for the
rejection of any tender nor it will be responsible for
any costs incurred by the tenderers.
 TENDER NOTICE (EXAMPLE)
Registered Company with Suruhanjaya Tenaga Malaysia (STM) and an
Authorized Switchboard Manufacturer are invited to participate in the
following Tender

Registered
Document Tender Document
Tender Document
Selling Briefing Selling
Ref.No.&Title Fee
Date (Compulsory) Date

 
STM and an
TM/PSSCME/7120 (T) Authorize
2009/14 Switchboar
PROPOSED SUPPLY, d
DELIVER, INSTALL, Manufactu
TESTING AND rer Only 22/12/09 (10.00 am)
COMMISIONING OF
Crystal Meeting
AC POWER SUPPLY
  Room, Ground
CABINET COMPLETE 15/12/09
RM4,000 Floor, TM’s  
WITH AUTO RESET to
(Not Refundable) Building, Lot 1, 07/01/2010
SYSTEM, ITS 31/12/09
  Section 17,
ASSOCIATED 
40200 Shah
ACCESSORIES AND
Alam, Selangor
THE PROVISION OF
ENGINEERING
SERVICES FOR
TELEKOM
MALAYSIA BERHAD
If the Tenderer is part of a group of related companies, then
companies which are related to the Tenderer within the
meaning of the Companies Act 1965 shall not submit  the
Proposal  for the same Tender. Any contravention may result in
the rejection or disqualification of the Tenderer’s submission.

PAYMENT
Payment shall be made in the form of BANK DRAFT/POSTAL
ORDER payable to TELEKOM MALAYSIA BERHAD

Company information form and letter of undertaking shall be

signed prior to the purchase of the Tender documents.
TENDER DOCUMENT SELLING VENUE:
Strategic Sourcing CME, Group Procurement, 1st Floor, Complex
TM, Lot 1, Section 17, 40200 Shah Alam, Selangor.
Tenderer are required to present an Original Registration and
Authorized Certificate and a copy whereby shall be retain by TM.

TENDER SUBMISSION
Tender Box, Ground Floor, Complex TM, Lot 1, Section 17, 40200
Shah Alam, Selangor Darul Ehsan on the closing date mentioned
above before 12.00noon. Late submission from date and time
mentioned above will not be entertained.
The tender advertisement shall also be accessed at TM’s website :
www.tm.com.my
 AFTER TENDER SUBMISSION = closing dates

Terdapat 2 situasi dalam tempoh penghantaran tender;

1.Tempoh Sah Tender / TENDER VALIDITY PERIOD (TYP)

2.Menolak Tawaran Tender /Refuse or reject to accept the
Tender Award.

1.0 ONCE…TENDER IS CLOSED…..

means = TENDER VALIDITY PERIOD is begin!!!
 1. TENDER VALIDITY PERIOD

 Tender Validity period - the valid period of tender

after the closing date of submission.

 The period of time allowed for QS to analyze and

select the eligible tenderer / contractor.

 Typically 60 days - the period can be extended if the

selection process of contractor can not be made or
the occurrence of any problem.
If the validity period intend to be extended - the
client / QS consultant must submit a letter to apply for
extension. The tender validity period can be extended
after the consent from the tenderers.

In contractor side, they can refuse the extension if

they do not agreed with new period time or intends not
to proceed with the tender.
STAGE 1 -
Process Of Selecting A Eligible Contractor
begins....

1. Tenderers / contractors will be short listed.

Where contractors are selected by competitive
tendering will be short listed; normally six to eight
bidders is enough. Next, all selected tenders will
undergo several stipulated processes, e.g. evaluation or
adjudication stage, cost analysis stage or tender review.
STAGE 1 -
Process Of Selecting A Eligible Contractor begins....

2. Among pertinent factors such as:-

Qualifications;
Tender prices;
Completion period;
Experience;
Contractor's established skills
Financial status;
Integrity & reputation;
Proven competence suitable for the nature /
character of offered project.
STAGE 2 - PREPARATION OF TENDER REPORT

 After tender analysis process - Tender Report are prepared with

comprehensive, complete, fair and transparent.

 QS also will propose and recommend the most appropriate choice of

one or two tenderer as qualified and succeed.

 The Tender Committee will review report from QS and usually, will
agree to the recommendation proposed by QS.
STAGE 2 - PREPARATION OF TENDER REPORT

 The letter of offer / Letter of Acceptance (LA)

will sent to the succeed contractor.

 The succeed contractor MUST reply the LA

within and compulsory agree to accept 2
weeks the project.
AFTER TENDER SUBMISSION = closing dates

TVP start TVP end

Tender date close

during tendering TENDER VALIDITY PERIOD TVP extended Tender Awarded

6o days another 6o days

Contractor agreed to extend - 1) will proceed to new period.

2) their tender will be evaluated.
Contractor disagreed to extend1)- they allowed to withdraws / tarik diri
2) their tender will not be evaluated.
2.0 Refuse or reject the tender award / Menolak
Anugerah Tender

 If the selected contractor REFUSE or REJECT to accept the

tender offer; penalty will be imposed.

The penalty imposed due to / causes;

 Refuse to accept LA appointment.
 Withdraw before the expiry date of validity period.
 Violates instructions to tenderers.

 For the first offense - a fine of 2 years suspended from

participating in the tender.
 For second or subsequent offense - 5 years suspended.