Professional Practice seminar

1. PROFESSIONAL
PRACTICE 1
TUTORIAL 4
FARAH SHAM | TAM ZHAO WEI | TAN JIA SAN

2. Question 1 a
As a Consultant QS, briefly explain
what a ‘Tender Document’ is and what
is its main purpose.

3. ○ Compilation of documents or drawings on the
Employer’s or Designer’s requirements for the
project and which are intended for the tenderer to
act on to submit their offer.
○ Requirements such as :
- Quality
- Material
- Workmanship
- Completion time
What is ‘Tender Document’?

4. ○ To present all requirements that is to be
constructed or provided in the project that is being
put to tender for tenderer’s examination and
preparation of a competitive tender
○ To obtain from the Tenderer an acceptable offer
both in terms of cost and time
( For Design and Build - acceptable design)
Purpose of Tender Document

5. Question 1 b
What are the FIVE important
components of a tender document?
Explain.

6. FIVE Important Components of a
Tender Document :
1. Form of Contract
2. Contract Bills
3. Supplementary Requirements
4. Ancillary Forms
5. Drawings

7. ○ In Malaysia, we have the JKR form of contract or
the private form of contract.
○ Both form of contract with quantity or without
quantity.
○ These are the commonly used form of contract in
Malaysia.
○ Form of contracts includes:
- Articles of agreement
- Conditions of contract
1. Form of Contract

8. ○ Contract bills consist of:
- Preliminaries
- Preamble
- Specifications
- Bill of Quantities
- General Summary of Tender
○ Contracts bills is the part where the tenderer would
put their pricing based on the specification and bill
of quantities provided and the preamble that
2. Contract Bills

9. ○ It contains four important elements which are:
- Declaration of Non-Collusion
- Form of Tender
- Instructions to Tenderer
- Conditions of Tendering
3. Supplementary Requirements

10. ○ The definition of ancillary means something that is
helping or subordinate, but not as necessary.
○ Ancillary Forms are:
- Schedule of Finishes
- List of P.C. and Provisional Sum
- Daywork Rates
- Particular of Workers
- Bank Guarantee Form for Performance Bond
4. Ancillary Forms

11. ○ These are prepared by designers eg. Architect,
Engineers etc and should show the exact scope of
work and its location etc.
5. Drawings

12. Question 1 c
List the TWO common tendering
methods which are adopted in the
construction industry and give its
advantages and disadvantages.

13. Disadvantages
■ High evaluation time
■ High aggregate cost for
tender
■ Risks of selecting new or
unknown firms
■ Lowest tender selection
may be due to under-
priced tender
Open Tender
Advantages
■ No favouritism
■ Maximum competition
■ New firms can enter
into the market
■ Increased employment
opportunities
■ Contractors can get
new client
■ Genuine tenders

14. Disadvantages
■ Allows favouritism
■ Less price competition
■ Cartel tendering
■ New firms cannot enter
into the market
■ Regular updating is
necessary
■ Greater chance of
collusion
Selective Tender
Advantages
■ Well known contractor
■ Better quality
assurance
■ Minimised risks of
defaults

15. Question 2
You are the Head of the Tender Department
in a construction firm. You have been invited
to participate in a tender for the
“Construction and completion of a 20 storey
condominium block and other associated
works in Kuala Lumpur”.
What are the factors that you will consider
before deciding to participate in the tender.

16. 1
Do we have sufficient resources to professionally respond within the
deadline?
Whentheamountofjobopportunitiesaremorethanourcapacity,wewillnothave
sufficientresourcestocarrymorejob.
AVAILABILITY OF
RESOURCES

17. 2
○ Wehavetoensurethatthereisnooverloadofworks whichwillleadtodelayin
completiontime
○ Workloadisimportantbecauseitdecidestheresourcesavailabletotenderand
delivertheproject
COMPANY’S CURRENT
WORKLOAD

18. 3
○ Itshouldbeaprojectthatthecompanyisfamiliarwith.
○ Complexityofwork,doesitrequirehighengineering?
SCOPE
OF WORK

19. 4
○ Isthecompanyabletofinancetheproject?
FINANCIAL
CAPABILITIES

20. 5
○ Doyouknowhowmanyothersyouwillbecompetingwithandwhotheyare?
○ Howdoyourstrengthsandweaknessescomparewiththeirs?
○ DoesacompetitorhaveanexistingcontractwiththeBuyer?
○ Whoiscurrentlyservicingthecontract?
TENDER
COMPETITION

21. 6
○ Similarorganisationsforsimilarworkareideal.
○ Iftheexperienceisnota‘corecompetence’,thinkcarefully.
○ Iftherearesomeareasthatyourbusinesscannotmanage,thechancesof
qualifyingorwinningthetenderaredrasticallyreduced. Partneringmaybea
solution.
RELEVANT
EXPERIENCE

22. THANKS!