tendering and its components

1. TENDERING SUBMITTED BY:
KUSHA AHMED
SAJAL SHARMA
HARSHALI KUMAR
KANIKA SHARMA
BHAVYE GOYAL

2. INTRODUCTION
 Tendering is the process by which bids are invited from interested contractor to carry out
specific packages of construction work.
 It is an invitation from the owner to the contractor to execute some work at specified cost in
specified time.
 It is published in the form of tender notice in news papers, notice boards, gussets, etc.
according to the cost of works.
 Most effective method of locking competitive rates.
 New technologies and options are received through open tender process.

3. TYPES OF TENDER
 Open Tendering
 Selective Tendering
 Negotiated Tendering

4. OPEN TENDER
 Under open tendering the employer advertises his proposed project, and
permits as many contractors as are interested to apply for tender documents.
 It is a Bidding process that is open to all qualified bidders
 Tender usually published in the newspaper and internet
 chosen on the basis of price and quality.
 This is most effective way of obtaining many competitive rates.

5. OPEN TENDER
ADVANTAGES
 Any contractor can tender their work
 No favoritism occurs
 maximum competition
 No commitment to tender, all tender received will be genuine.
DISADVANTAGES
 Client must bear expensive cost of tendering ( reproducing number of drawings,boq etc)
 The wrong contractor may be chosen because they are from unknown background
 Time consuming
 Choosing a low cost tender may result in:
• Poor work: a large number of, or even permanent, defects may occur unless there is
closed supervision by the clients agent.
• Poor organization: a late completion,specialist,subcontractor delayed etc.

6. SELECTIVE TENDER
 In selective tendering the employer advertises his project and invites
contractors to apply to be placed on a selected list of contractors who
will be invited to bid for the project. Contractors applying are given a
list of information they should supply about themselves in order to ‘pre-
qualify’.
 A number of contractor of known reputations are selected by the
design team to submit a price of the project.
 The contractor who submit the lowest tender is generally awarded
the contract.
 The number chosen to bid under this tender is little
 they are chosen for their expertise and experiences

7. NEGOTIATED TENDER
 Negotiated tenders are obtained by the employer inviting a contractor of his choice to
submit prices for a project.
 Usually this is for specialized work or when particular equipment is needed as an extension
of existing works, or for further work following a previous contract.
 normally because the skills of the contractor are such that the architect and other members
of the design team needed from the contractor’s specialist knowledge use for design stage.
 Following the completion of the design, the contractor will price the bill of quantities and
then enter into a negotiation with the quantity surveyor.

8. TENDER NOTICE
 A tender notice is advertised in the newspaper or the internet depending upon the type of work.
Format of an ideal tender notice
1. Name of the Project.
2. Name & Address of the Company offering the tender.
3. Name of work, materials or services.
4. Place of work location.
5. Approximate estimated cost of work.
6. Earnest Money.
7. Period of completion.
8. Date on which the Tender Document sale commences.
9. Date and time up to which tender documen
can be obtained.
10. The cost of tender documents.
11. Due date of submission
12. Eligibility Criteria

9. EXAMPLE OF A TENDER NOTICE

10. TENDER DOCUMENTS
 A written invitation sent to potential suppliers of a good or service to inform them about the
information required for the buyer to choose among them.
 Issuing a tender document typically begins the tender process by which a business selects
qualified and interested suppliers based on such things as their price, availability and proposed
delivery terms.
 tender documents should be broken down into a series of packages with its own design
drawings and specifications suitable to be issued by the main contractor to potential sub-
contractors. This makes the tender easier for the contractor to price and easier for the client to
compare with other tenderers.

11. Typically, the tender documents will consist of all or some of the following documents:
• Cover letter
A formal letter inviting contractors to tender. It will advise when and where their completed tender
should be returned.
• Invitation to tender
This provides guidance on how the tender documents are to be completed.
• Form of tender
A covering document prepared by the client and signed by the tendering contractor to indicate that they
understand the tender, accept the various terms and conditions of the contract, and other requirements of
participating in the tender exercise.
• Terms and conditions of contract
This document sets out the legal framework and the obligations of both parties signed up to the contract.
Tendering contractors must read this document in conjunction with the other tender documents.
• Preliminaries: including pre-construction information and site waste management plan (if required).

12. • Bill of quantities
This document is used as the basis of submitting the tender where all prices for carrying out the
work are given. The bill of quantities assists tendering contractors in producing an estimate of
costs for their tender. It also provides a fair and accurate system for tendering.
• Design drawings (general layout plan, construction drawings)
These are clear and concise detailed documents about the construction site, path construction and
any other related feature/ structure works. They are the essential ingredients for informing
contractors of exactly what is required to complete all the work.
• Specifications
This document sets out what needs completing to set standards, including policies, procedures or
guidelines. It sets out the performance standards and the outcomes expected. It describes the
materials and workmanship standards. They do not include cost, quantity, or drawn information,
and so need to be read alongside the terms and conditions of the contract, bill of quantities, and
construction drawings.
• Quality requirements
A questionnaire about how the tenderer intends to provide the contracting service, including
supporting evidence demonstrating relevant experience. This information will help evaluate the
quality of the tender.

13. • Tender evaluation criteria
A document advising how returned tender will be evaluated against each other and the
contract awarded.
• Tender return label
A simple label giving the time and date that a tender must be returned.
• Pre-construction information
A document giving relevant information about the project that might influence the
health and safety of the paths design and work.
Tendering contractors must follow the instructions and information given in each
tender document provided, as failure to do so may prevent you as the client from
considering the tender properly.