Tender Returns & Analysis Flashcards
What is a form of tender?
- A document that the contractor signs and returns with their tender submission stating their price and programme.
- Formal acknowledgement that the contractor understands and accepts the terms and conditions of the tender docs.
What information is typically included in the form of tender?
- Tender sum
- Date until which the price remains valid.
- Construction period
- Confirmation of the tender being boba fide.
- Tenderer details and signature.
- Acceptance of terms and conditions.
When seeking tenders for construction work, in addition to the actual price for the work, what additional information might be requested?
Qualitative submission including:
- Demonstration of previous experience.
- Proposed team and hierarchy.
- Proposed methodology.
- References.
- Programme.
- H&S information.
- VE proposals.
Once tenders have been submitted, what should be examined for compliance with the ITT?
- Arithmetical errors.
- Pricing errors (items not priced).
- Pricing methods (front loading).
- Ensure contractors proposals against employers requirements.
- Check form of tender is complete and signed.
- Qualifications and exclusions.
What happens if a tender is submitted late?
Public sector: tender should NOT be accepted.
Private sector: at the discretion of the employer. Advise that the safest option is not to consider as risk of collusion, bid-rigging.
Would you open a late tender submission for a school project?
- The tender should not be considered on the basis that the project is funded by the public sector.
What is the danger of accepting a very low tender submission?
- Contractor may try to recover their costs with variations and/or claims.
- May be an indication that the contractor is in poor financial standing or cash flow position.
- Elements of the project might not be priced accurately (potential for adversarial relationship to develop post contract).
How do you deal with qualifications within the tender submission?
- The employers team should look to resolve the qualifications prior to tender award.
- Procedures associated with qualifications should be outlined in the tender instructions.
- If the qualifications are unauthorised it might invalidate the tender leading to qualification.
How would you deal with errors identified in the tender submissions?
- The JCT Tendering Practice Note suggests two options to deal with errors.
Alternative 1: Confirm or withdraw
Alternative 2: Confirm or amend
- I would identify which option has been drafted into the tender pack and act accordingly.
What would you do if you considered a contractor submitting the lowest tender to be in financial difficulty?
- Company accounts will be reviewed as part of the tender evaluation process.
- Consider a performance bond. If contractor fell insolvent, employer could call on the bond and appoint another contractor to complete the project.
- Consider a parent company guarantee.
On what grounds would you advise the client to retender?
- Not enough tender returns.
- The tendering procedure is compromised.
- Significant design, methodology or programme changes after issuing the tender documents.
How would you deal with a front-loaded tender?
- Request contractor removes front loading. If the contractor refuses, this may be grounds for disqualification.
How could you reduce the risk of contractors pulling out during the tender process?
- Ensure the tender information is as accurate as possible.
- Ensure the tender period is long enough (extend if required).
- Check the contractors have the capacity to tender.
What is a contract sum analysis under design & build procurement?
- A CSA is an alternative pricing document to a schedule of works or BOQ.
- It’s often prepared in a standard format by the employers team to support the tender analysis.
What information is typically included in a tender analysis report?
- List of tenders received.
- Original tender sums.
- Any qualifications identified.
- Post-tender adjustments.
- Revised tender sum.
- Issues to be resolved.
- Comparison of tender returns.
- Comparison of Pre-Tender estimate.
- Recommendation.
If the tender was received on time, but the works were delayed and did not commence until a few months later, what would you need to check?
- Form if tender to see how long the price was valid for.
If the contractor (in their tender return) put a cost against an item and marked it as provisional, what would you do?
- I would seek further information from the contractor and request that this be removed/firmed up.
- Subject to the tender instructions, this may invalidate the tender.
If you think the delivery programme is tight, how can you give comfort to the contractor regarding liquidated damages (to avoid them excessively pricing in their tender sum)?
- The contract can be amended to include an LD free period.
If you think the delivery programme is tight, how can you give comfort to the contractor regarding liquidated damages (to avoid them excessively pricing in their tender sum)?
- N/A
What is the purpose of a pre-tender estimate?
- A PTE is the last and most accurate cost check of the project before it is issued to tender.
- The estimate is then used to compare against tender submissions.
What happens if the tender prices are higher than the pre-tender estimate?
- Review tender analysis against PTE to identify major differences in price.
- Look at external factors have affected tenders.
- Undertake value engineering to bring project to within budget.
