TENDERING #3 - Muse Business Marketingcons6811.weebly.com/uploads/4/2/6/3/42631959/s03_ppts.pdf ·...

Tendering (CONS6811) Lara Tookey

TENDERING #3


Recap on Session 2


Session THREE

•Stage 1 – Initial actions & appraisals: • What type of tendering methods are there? • What does qualification mean? • Do you (the MC) bid for every job? • Do you (the MC) price every job the same? • Is planning important prior to starting your

tender?


Subcontractors (S02)

Main Contractors

Client (S01)


What is the purpose of tendering?


1. Find a suitable contractor To be selected at a time which is suited to the

circumstances of the project.

2. Obtain a price from the relevant contractor at an appropriate time.


ACTIVITY (10 MIN) Working with your peers

•Outline the various tendering methods that can be used to obtain a competitive tender.

•What are the benefits and limitations of each?

•Which one, as a MC, would you prefer to work with?


What type of tendering methods are there?

• Open

• Selective • Single-stage

• Two-stage

• Negotiated


Request for Proposal

Request for Tender

Request for Expression of

Interest

Tender

Tender Evaluation

MC selection

Negotiation….

Contract Awarded


EOI / RFPT ~ Contractual Obligations

Customer’s requirements & perception 1. Needs 2. Specifications 3. Objectives 4. Performance

Contractor offering • Products • Resources

1. People 2. Technology 3. Skills 4. Facilities

Customer makes an OFFER to the MC to tender

MC ACCEPTS to tender


• Case law in NZ holds that TENDERING CONTRACTS exist between the principal and each tenderer.

• It is therefore essential that a proper procedure

be set up for calling, receiving and examining tenders.

• All interested parties should be fully aware of how the system operates.


Case Law: Tenderers’ Contracts

• Pratt Contractors Ltd v Palmerston North City Council [ (Dec 1984) CP76/92] • It was held that “In selecting a particular

tenderer, the Council is in my view bound by the terms it has itself imposed, as well as the requirements of fairness and equity which may well have an application.”


Weebly / Contractors’ Perspective / Stage 1 • Expression of Interest - East & West

Foreshore Borrow Pit Excavations

• Statement for Expression of Interest for Engineering Feasibility Study

• Registration of Interest - Transmission Gully PPP

• Housing New Zealand Request for Proposals

• Request for Tender - Contract for Professional Services

http://weebly-file/4/2/6/3/42631959/eoi_borrow_pit_excavations.pdf

http://weebly-file/4/2/6/3/42631959/eoi_north_bank_tunnel_project.pdf

http://weebly-file/4/2/6/3/42631959/eoi_north_bank_tunnel_project.pdf

http://weebly-file/4/2/6/3/42631959/roi_registration_of_interest_transmission_gully_ppp.pdf

http://weebly-file/4/2/6/3/42631959/roi_registration_of_interest_transmission_gully_ppp.pdf

http://weebly-file/4/2/6/3/42631959/rfp_housing_new_zealand.pdf

http://weebly-file/4/2/6/3/42631959/rfp_housing_new_zealand.pdf

http://weebly-file/4/2/6/3/42631959/rft_planning_resources_transmission_gully.pdf

http://weebly-file/4/2/6/3/42631959/rft_planning_resources_transmission_gully.pdf



•What does each one tell us?

•What, if any, are the similarities between the various invitations.

•Are there are issues that concern you?


Format of an ideal EOI / Tender Notice • Name of Project.

• Name & Address of the Company requesting the tender.

• Location of site.

• Approximate estimated cost of work.

• Period of completion.

• Date on which the Tender Document is available for collection.


• Date and time up to which tender documents can be obtained.

• The cost of tender documents.

• The date and time for submission of tenders / tender opening.

• Specifications.

• Eligibility Criterion.


Scope of Project

• Define the aims and scope of the project. • What are the needs / interests of the Principal…

• Review the Procurement Strategy – the aims etc should be embodied therein.


Project Objectives

• The Client must take particular care in defining these.

• It is a good idea to include a brief statement of these at the beginning of the tender documents.


EOI / RFPT Purpose

• EOI / RFPT is the usual documentary mechanism used to seek tenders from service providers.


EOI / RFPT Purpose

• It informs potential tenderers of the: • Purpose and nature & contracting processes;

• Terms & conditions & any associated contract(s);

• Information required for evaluating a tender; and

• Process & criteria (and broad weightings if appropriate) to be used in the evaluation.


EOI / RFPT Content

• Usually include the following components: • Conditions of tendering

• Tender form and/or pricing schedule(s)

• Schedules of information

• Standard conditions of contract

• Special conditions of contract

• Technical specifications

• Drawings (where applicable)


EOI / RFPT Content cont.

•Must include • A clear and unambiguous description of the

proposed procurement process, including the: • Proposed contract conditions

• Work, assets and services to be delivered through the contract;

• Information to be lodged in the tender;

• Tendering process, including the basis for evaluating tenders; and

• Decisions that will flow from the tendering process.


Remember:

• The clearer you are able to articulate what you want, the better, more informed EOI / RFPT you will receive.


Prepare tender enquiry form

• Do you wish to be considered? • No – do nothing

• Yes – submit the form / document as required.


Meridian North Bank Tunnel Project

• Pg 9: Submission procedure



• Pg 9: Information to be submitted • EOI form provided

• Supporting information to address the following topics: • Approach to project

• Management

• Technical skills, track record & relevant experience

• Resources

http://cons6811.weebly.com/1-initial-actions--appraisals.html



• Pg 10: Evaluation


Prequalification questionnaires

• NZTA Pre-qualification application link

http://nzta.govt.nz/resources/prequalification-application-pack/index.html


Invitation to tender

Assign project manager

Initiate tendering process

Estimating activities

Cost Estimate

Estimator’s report

Tender adjudication

Contract / negotiate

Programme

Planning activities

Establish overall strategy

& framework for bid

Form project team

Records Submission

Assign proposals manager /

operations director

Yes

No Decision to

tender

Risk &

opportunities

analysis

Lost

Won


M. Marzouk, M., & Moselhi, O. (2003). A decision support tool for construction bidding. Construction Innovation, 3, 111–124.

• “Contractors frequently face two main questions in the bidding process: • 1) whether to bid or not, and

• 2) what markup to allocate, if they decide to bid”.

• “The first question can be addressed based on project characteristics, market conditions, and current workload of contractors.”

• The second will be dealt with later.



What questions do you think you (the MC) should ask before a

decision to bid is made?


• Is sufficient time being allowed for the proper preparation of an estimate & subsequent tender?

• What are the Conditions of Contract?

• Are the operating conditions clearly defined?

• Stages in work; timing; access to site etc.

• What is the value & extent of project?


• Is the design well developed or hastily prepared?

• Have standard methods of measurement been used? If not, which method has been used?

• If Schedules of Quantities have not been prepared, will extra time be allowed?

• If quantities have to be ‘taken off’, is there sufficient detail?


• Nature of job & overall corporate objectives;

• Present construction workload; • Future commitments; • Present estimating workload;

• Previous experience with: • Similar type of work; • Consultants; • Client


• Availability of • manpower, supervisory staff; • plant, machinery, material; • financial resources of contractor;

• Market conditions;

• General economic & political situation & outlook;


• Description of tender docs;

• Date of issue; • Tender period available; • Acceptance period; • Notification of unsuccessful tenderers.

• Has the project been advertised before (tenders invited?)

• Latest date for receipt of acceptance of invitation to tender.

• Tender period.


Do you price every job the same?


• Mark-up allocation

• Lowest price

• Repeat work

• Boom / Bust market conditions



What do you, the MC, need to do in order to submit a competitive tender?

• Identify at least seven activities that you will need to undertake.

•What impact does this have on your tender submission?


Estimate Programme:

• Latest date for dispatch of enquiries for: • Materials, plant & sub-contracted items

• Latest date for receipt of quotations

• Measurement of quantities

• Visits to consultants (optional)


Estimate Programme:

• Site visits

• Finalization of method statement

• Completion of measurement

• Completion of pricing

• Adjudication meeting

• Submission of tender.



Consider what difficulties the Client and the MC could experience due to inadequate tender information being made available.


YOUR ASSESSMENTS


Session FOUR

• Stage 2 – Project appreciation & enquiries • Introduction to subcontracting

• Why does a MC need subbies?

• How is the work split between the various parties?

TENDERING #3 - Muse Business Marketingcons6811.weebly.com/uploads/4/2/6/3/42631959/s03_ppts.pdf ·...

Documents

Transcript of TENDERING #3 - Muse Business Marketingcons6811.weebly.com/uploads/4/2/6/3/42631959/s03_ppts.pdf ·...