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2.tendering

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2.tendering

1. 1. Ahmed Elyamany, PhD October 24/27, 2010
2. 2. • •• •• •• •• •• ••
3. 3.  By the end of this lecture, you will:1. Define the steps of Tendering.2. Define the components of contract documents.3. Estimate Tender price.4. Prepare a balanced and unbalanced bid. 3
4. 4.     Initial Bond  Contract Bond
5. 5. 1.Decision No to Tender Yes1.Inspecting Contract Documents Do nothing 2.Decision to Tender No Yes 3.Estimating Process 4.Tender Adjustment 5.Submitting Tender
6. 6.  Mobilization and demobilization -    -   
7. 7. Include:1. Instruction to Bidder2. Drawings3. Specification4. Bill of Quantity5. Contract conditions6. Letter of offer/Proposal/Bid form
8. 8. 1. Instruction to Bidder           – ◦ – ◦
9. 9. 2. Drawings  – – – – Workshop drawing3. Specification
10. 10. 4. Bill of Quantity 10,000 2.5 4,000 m3
11. 11. 5. Contract conditions  (General Conditions)  (Supplementary Conditions)  ◦ ◦ (Claims ) ◦ (Change orders) ◦
12. 12. 6. Letter of offer/Proposal/Bid form      – – – – ◦ –
13. 13.   (Estimating process) 
14. 14.  Tender Price: Direct cost = Material+ Labor+ Equipment+ Subcontractor Indirect cost (site-overhead)  – – – – – – –  – General- overhead  – – – – – Profit & Risk  
15. 15. Senior Managers    
16. 16. .1 (Balanced Bid) .2(Unbalanced Bid) .3
17. 17.  Tender price = Direct cost + Indirect cost + General- overhead + Profit & Risk Alternative Structures of Tender Price Construction Construction Direct Cost Direct Cost Cost Cost Net Cost Tender Price Tender Price Indirect Cost Indirect CostGeneral Overhead General Overhead Markup Profit and Risk Profit and Risk
18. 18. Performance bondBid bond Performance bond Payment bond
19. 19.  Letter of Offer Bill of Quantity (BOQ)     
20. 20. Direct costItem Unit Quantity Material Equipment labor S/C 1 m3 150 1000 11200 4000 - 2 m3 180 1800 1000 4000 - 3 m3 40 960 400 3200 - 4 m3 60 1200 600 4800 - 5 L.S. job - - - 2000Site overhead =10 % D.C.General overhead =5 % construction costProfit risk =5 % net cost
21. 21. Direct cost ItemItem Unit Quantity DC Material Equipment labor S/C 1 m3 150 1000 11200 4000 - 16200 2 m3 180 1800 1000 4000 - 6800 3 m3 40 960 400 3200 - 4560 4 m3 60 1200 600 4800 - 6000 5 L.S. job - - - 2000 2000 35560 Total Direct Cost= LE 35,560 Construction Cost= 1.05 * TDC Net Cost= 1.05 * CC = 1.05 * 1.05 * TDC Tender price=1.10 * NC=1.10*1.05*1.05* TDC Tender price=1.21275 * TDC = L.E. 43,125.4
22. 22. Price Factor = 1.21275 / Quantity Balanced item price Unbalanced item priceItem Item D.C. Total Unit Total Unit 1 16,200 19646.5 130.98 200465 2 6,800 8246.7 45.82 8246.7 3 4,560 5530.1 138.25 5530.1 4 6,000 7276.5 121.28 7276.5 5 2,000 2425.5 2425.5 2025.5Total 35,560 43125.4 43125.4 - 400 + 400
23. 23. Questions? 24