What do you understand by a tender? What are the aspects which should be covered by a tender? Explain briefly the contents of a tender document.
Tender means the document(s) submitted by the Contractor to the Authority in response to the Authority’s invitation to suppliers for formal offers to supply it with the Services.
Or
Tendering is the process by which bids are invited from interested contractors to carry out specific packages of construction work. It should adopt and observe the key values of fairness, clarity, simplicity and accountability, as well as reinforce the idea that the apportionment of risk to the party best placed to assess and manage it is fundamental to the success of a project.
Important Sections that should be covered in a Tender Document:
ü Conditions
for Participation:
This section is meant to outline the most
important conditions that a supplier must meet in order to be considered by the
client. Important documents and records proving the supplier’s eligibility for
the project might be included here. The availability of financial records, relevant licenses, insurance
documents and past project records might be some of the major
conditions set for participation in the bidding process.
ü Accreditation
and quality standard:
This is the section under which the potential contractor
must demonstrate that they can meet all the needs and requirements of the
client. The bidder must present the client with some certifications of quality or authority
accreditations such as ISO, ISI, etc. You can also outline certain
processes or procedures followed by your firm that will ensure superior quality
for your product or service.
ü Specifications:
In this section, the potential contractor
must outline all the specific information about the project that the client
might be interested in. These specifications might include the goods and
services required, the expected time frame for the completion of the project as
well as any associated requirements or needs related to pricing, delivery and
performance. This information might play a vital role in the final evaluation
made by the client.
ü Conditions
of contract:
This section of the tender document must
provide all the relevant and necessary information about the rights and responsibilities of
the client as well as the potential contractor. All the terms and
conditions of the work that is to be performed must also be clearly outlined
under this section of the tender document. This section is a must because it
ensures clarity, comprehension and transparency in the transactional process.
ü The
condition of offer:
When a bidder or contractor is submitting their offer,
they must give their official
agreement to the proposed terms and conditions of the contract. The
rough timeline of the tendering process as well as the location wherein the
submission must be made are both indicated in this section. Other segments that
might be included in this section are the submission process, the evaluation process,
etc.
1. Tender Drawings
2. The specification
(a) General requirements
(b)Specification
of workmanship and materials
3. Bill of Quantities
4. Conditions of Contract
(a) General Conditions
(b)Special Conditions
5. Form of Tender
6. Form of Agreement
7. Form of bond
1. Tender Drawings:
•
The purpose of tender drawings is to describe the project in sufficient detail
so that the price submitted by the contractor can be expected to be realistic.
•
Drawings must show sufficient
detail so that there is not significant change and subsequently no
significant change of the cost.
2. The Specification
(a) General Requirements • It includes
relevant details of the site and information on items which do not form part of
the permanent works.
(i) Preliminaries
(Not part of permanent works).
They
include:
•
Services (water, electricity, gas, drainage) • Accommodation (offices, toilets)
• Security (fencing, watchman) • Protection • Temporary roads and lighting • Insurance • Scaffolding
(ii) Program and sequence of construction
(iii) Liaison with other contractors
(iv) List of tender drawings
(b) Specification of workmanship and materials
• It
deals with the detailed requirements of every trade. The type, the quality and method
of fixing (or fabrication) and testing of every item for incorporation in permanent
works is described.
3. Bill of Quantities
• It
is like a ‘shopping’ list It lists every work activity or component part
necessary for the execution of the (permanent) works.
•
These quantities are generally prepared
by the Engineer’s staff and sometimes by quantity surveyors.
•
Bill of Quantities is essential to cost control.
•
Arranged to same sections as specifications.
•
Bills of quantities are prepared from tender drawings.
It serves the following purposes:
• To help to describe the scope of the works
• To
provide a means for pricing
• To
effect standardization for realistic price comparison (to provide a means of comparing
the costs of different tenders)
• To
provide a means of valuing completed work
• To
provide a basis (method) for pricing variations.
• The Contractor inserts a rate and multiplies it with the given quantity
4. Conditions of Contract:
The purpose of the Conditions of Contract
is:
• To
define the responsibilities
and liabilities of the parties to the contract.
• To
describe the method of administration (by Engineer)
•
The Conditions of Contract define the terms under which the work is to be
carried out, the relationship between the Employer and the Contractor, the
powers of the Engineer and the terms of payment.
•
The imposition of conditions of contract which are biased (unfair) in favour of
the Employer can be uneconomical.
(a) GENERAL CONDITIONS
General
conditions are essentially the framework of the construction contract
documents. They provide the
“hows” of the project.
Most
importantly, general conditions establish all the rights and obligations of the
contracting parties. Additionally, it will lay out the roles of every party and
the responsibilities of each.
The
general conditions will also include all the suspension, termination and
alternative dispute resolution procedures.
(b)Special Conditions: This is typically an addition
or amendment to the general conditions section. This document will
detail the specific clauses and conditions for each task or project. For
instance, if there are specific instructions that only apply to one job or
portion of the build, they will be included in this document.
5. Form of tender
• It
is a standard letter of
offer by the Contractor to execute the works. It is prepared by the Engineer
and signed by the contractor.
• It
contains the main points of the offer:
–
Starting date
–
Duration
– Tender
sum
6. Form of agreement
• To
set up names of parties, list of contract documents, signatures of parties,
sealed contact documents, signatures, of parties, sealed contact.
• A standard form of agreement is the
legal contract between the promoter and the contractor.
• It
evidences the agreement of the Employer to pay the price indicated in the
contractor’s tender and the contractor’s agreement to undertake the works in
accordance with the tender documents.
7. Form of bond
• It
is signed by both the contractor and a third party evidencing their agreement
to pay a sum of money to the Employer in the event of the contractor’s default
•
Often, the Employer worries whether the work will be good. Guarantee is
provided by a third party (often a bank or an insurance company) to the
contractor. If the contractor does not complete the work according to the
specification (contract documents), he pays sum of money (bond) to the
Employer.
•
The amount of bond is 10% of
the contract sum.
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