Introduction to construction bidding.

1. THE BIDDING PROCESS STEP BY
STEP
What you need to know

2. Understanding the bidding
process in detail is a must
for a cost estimator.

3. Bidding means:
“to make a competitive
offer to set a price in
response to a call to
tender”

4. The tender process for construction projects in
Canada has to be compliant with the Canadian
Tender Law.

5. The Canadian tender law stipulates that:

6. The Canadian tender law stipulates that:
1. The party who issues the tender call has the
obligation to accept only compliant bids, to
consider only disclosed criteria when
evaluating a bid and to act fairly in
evaluating tenders.

7. The Canadian tender law stipulates that:
1. The party who issues the tender call has the
obligation to accept only compliant bids, to
consider only disclosed criteria when
evaluating a bid and to act fairly in
evaluating tenders.
2. The party who submits a bid has the
obligation to stand by its contents, or
support the consequences of retracting the
bid.

8. The two most important rules of preparing a
compliant tender:

9. The two most important rules of preparing a
compliant tender:
1.Is has to be complete, meaning compliant
with the call for tender documentation

10. The two most important rules of preparing a
compliant tender:
1.Is has to be complete, meaning compliant
with the call for tender documentation
2. Has to be delivered on time

11. Depending on each organization, the search
for bidding opportunities is done by:

12. Depending on each organization, the search
for bidding opportunities is done by:
1.The business development
department

13. Depending on each organization, the search
for bidding opportunities is done by:
1.The business development
department
2.The estimating department

14. Depending on each organization, the search
for bidding opportunities is done by:
1.The business development
department
2.The estimating department
3.The business owner

15. Who issues the tender call?

16. Who issues the tender call?
The project owner/sponsor

17. Who issues the tender call?
The project owner/sponsor
Who administers the tender call?

18. Who issues the tender call?
The project owner/sponsor
Who administers the tender call?
The project tender authority

19. Who is the tender authority?

20. Who is the tender authority?
 It can be the project owner, if it has
the resources,

21. Who is the tender authority?
 It can be the project owner, if it has
the resources,
 a design engineering firm,

22. Who is the tender authority?
 It can be the project owner, if it has
the resources,
 a design engineering firm,
 or any entity appointed by the
owner to act on its behalf

23. What is the tender authority role?

24. What is the tender authority role?
1. Advertise the tender call

25. What is the tender authority role?
1. Advertise the tender call
2. Issue the tender call

26. What is the tender authority role?
1. Advertise the tender call
2. Issue the tender call
3. Issue invitation to tender, if the tender is by invitation only

27. What is the tender authority role?
1. Advertise the tender call
2. Issue the tender call
3. Issue invitation to tender, if the tender is by invitation only
4. Issue the tender documentation

28. What is the tender authority role?
1. Advertise the tender call
2. Issue the tender call
3. Issue invitation to tender, if the tender is by invitation only
4. Issue the tender documentation
5. Issue addenda and process the request for information from
potential bidders

29. What is the tender authority role?
1. Advertise the tender call
2. Issue the tender call
3. Issue invitation to tender, if the tender is by invitation only
4. Issue the tender documentation
5. Issue addenda and process the request for information from
potential bidders
6. Receive the tenders

30. What is the tender authority role?
1. Advertise the tender call
2. Issue the tender call
3. Issue invitation to tender, if the tender is by invitation only
4. Issue the tender documentation
5. Issue addenda and process the request for information from
potential bidders
6. Receive the tenders
7. Evaluate the tenders and make recommendations for best bid

31. Public versus Private tenders

32. Public versus Private tenders
1. Public tender is open to all, or pre-qualified contractors

33. Public versus Private tenders
1. Public tender is open to all, or pre-qualified contractors
2. Private tender is by invitation only

34. Public versus Private tenders
1. Public tender is open to all, or pre-qualified contractors
2. Private tender is by invitation only
3. Private tenders sometimes involves post-tender addenda and
private, one-on-one negotiations regarding tender price

35. Public versus Private tenders
1. Public tender is open to all, or pre-qualified contractors
2. Private tender is by invitation only
3. Private tenders sometimes involves post-tender addenda and
private, one-on-one negotiations regarding tender price
4. All projects funded with public money are public tenders and the
tender results are available to the public.

36. Public versus Private tenders
1. Public tender is open to all, or pre-qualified contractors
2. Private tender is by invitation only
3. Private tenders sometimes involves post-tender addenda and
private, one-on-one negotiations regarding tender price
4. All projects funded with public money are public tenders and the
tender results are available to the public.
5. A private tender, almost always, does not disclose the tender
results.

37. Owner’s Tender calls for General Contracting

38. Owner’s Tender calls for General Contracting
1. The majority of tender calls are for general contractors

39. Owner’s Tender calls for General Contracting
1. The majority of tender calls are for general contractors
2. A general contractor can be one business entity, or a
partnership/joint venture

40. Owner’s Tender calls for General Contracting
1. The majority of tender calls are for general contractors
2. A general contractor can be one business entity, or a
partnership/joint venture
3. Tender calls for trade/specialty contractors are common for
Construction Management project delivery method. Please note
that this is also valid for EPCM delivery method.

41. General Contractor’s Role

42. General Contractor’s Role
1. The general contractor is responsible for delivering the project
for the full scope identified in the tender call

43. General Contractor’s Role
1. The general contractor is responsible for delivering the project
for the full scope identified in the tender call
2. A general contractor will provide general construction site
management, subcontractor co-ordination, and contract
administration

44. General Contractor’s Role
1. The general contractor is responsible for delivering the project
for the full scope identified in the tender call
2. A general contractor will provide general construction site
management, subcontractor co-ordination, and contract
administration
3. A general contractor will perform some of the construction
activities, with its own forces. This is called self-performed work.

45. General Contractor’s Role
1. The general contractor is responsible for delivering the project
for the full scope identified in the tender call
2. A general contractor will provide general construction site
management, subcontractor co-ordination, and contract
administration
3. A general contractor will perform some of the construction
activities, with its own forces. This is called self-performed work.
4. For the balance of the construction activities the general
contractor will secure pricing from subcontractors

46. General Contractor’s Scope of Self-performed
work

47. General Contractor’s Scope of Self-performed
work
1. It is very likely that a general contractor will self-perform the
concrete work, and/or earthworks, site works and miscellaneous
items not included in the sub-contracted work

48. General Contractor’s Scope of Self-performed
work
1. It is very likely that a general contractor will self-perform the
concrete work, and/or earthworks, site works and miscellaneous
items not included in the sub-contracted work
2. Specialty trade contractors will bid as general contractors when
the project scope of work justify this approach. Example: think of
a mechanical contractor bidding a project in which the
mechanical scope of work is the largest of all trades.

49. Cost Estimator’s To Do List when Bidding on a
Project

50. Cost Estimator’s To Do List when Bidding on a
Project
1. Procure the tender documentation

51. Cost Estimator’s To Do List when Bidding on a
Project
1. Procure the tender documentation
2. Mark the tender closing date on the calendar

52. Cost Estimator’s To Do List when Bidding on a
Project
1. Procure the tender documentation
2. Mark the tender closing date on the calendar
3. Review the project scope

53. Cost Estimator’s To Do List when Bidding on a
Project
1. Procure the tender documentation
2. Mark the tender closing date on the calendar
3. Review the project scope
4. Mark the site visit date in the calendar. If there is no mentioning
of site visit, request one

54. Cost Estimator’s To Do List when Bidding on a
Project
1. Procure the tender documentation
2. Mark the tender closing date on the calendar
3. Review the project scope
4. Mark the site visit date in the calendar. If there is no mentioning
of site visit, request one
5. Prepare and submit documentation for bonding requirements
(will cover this in detail in the project indirect costs)

55. Cost Estimator’s To Do List when Bidding on a
Project
1. Procure the tender documentation
2. Mark the tender closing date on the calendar
3. Review the project scope
4. Mark the site visit date in the calendar. If there is no mentioning
of site visit, request one
5. Prepare and submit documentation for bonding requirements
(will cover this in detail in the project indirect costs)
6. Prepare the cost estimate development plan and assess
required resources to implement it

56. Cost Estimator’s To Do List when Bidding on a
Project
1. Procure the tender documentation
2. Mark the tender closing date on the calendar
3. Review the project scope
4. Mark the site visit date in the calendar. If there is no mentioning
of site visit, request one
5. Prepare and submit documentation for bonding requirements
(will cover this in detail in the project indirect costs)
6. Prepare the cost estimate development plan and assess
required resources to implement it
7. Implement the cost estimate development and tender closing
plan

57. In future lessons we will cover all steps of the bidding process in
detail.
This was just an introduction of the basic bidding concepts. There
are many facets of bidding and no course will cover them all.

58. In future lessons we will cover all steps of the bidding process in
detail.
This was just an introduction of the basic bidding concepts. There
are many facets of bidding and no course will cover them all.
The tender law is a topic which can be very captivating. It is the
topic a lawyer who specializes in construction law can present in
detail. Various organizations offer seminars on this topic

59. In future lessons we will cover all steps of the bidding process in
detail.
This was just an introduction of the basic bidding concepts. There
are many facets of bidding and no course will cover them all.
The tender law is a topic which can be very captivating. It is the
topic a lawyer who specializes in construction law can present in
detail. Various organizations offer seminars on this topic
In your practice as a cost estimator, you will not be concerned with
the legal aspects of the tender law. As long as you implement the
cost estimate development plan, which we will cover in detail in
future lessons, and follow the tender preparation and submission
rules, you will be in a position of knowledge.

60. Do you have any questions about this topic?

61. Do you have any questions about this topic?
Please use the course group messaging feature, or post a question
in the group discussion.

62. Do you have any questions about this topic?
Please use the course group messaging feature, or post a question
in the group discussion.
You can also email me directly: doina.dobre@emeraldgroup.ca