Tender Returns & Analysis

Question 1

What is a form of tender?

Answer 1

• 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.

Question 2

What information is typically included in the form of tender?

Answer 2

• 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.

Question 3

When seeking tenders for construction work, in addition to the actual price for the work, what additional information might be requested?

Answer 3

Qualitative submission including:
- Demonstration of previous experience.
- Proposed team and hierarchy.
- Proposed methodology.
- References.
- Programme.
- H&S information.
- VE proposals.

Question 4

Once tenders have been submitted, what should be examined for compliance with the ITT?

Answer 4

• 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.

Question 5

What happens if a tender is submitted late?

Answer 5

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.

Question 6

Would you open a late tender submission for a school project?

Answer 6

• The tender should not be considered on the basis that the project is funded by the public sector.

Question 7

What is the danger of accepting a very low tender submission?

Answer 7

• 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).

Question 8

How do you deal with qualifications within the tender submission?

Answer 8

• 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.

Question 9

How would you deal with errors identified in the tender submissions?

Answer 9

• 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.

Question 10

What would you do if you considered a contractor submitting the lowest tender to be in financial difficulty?

Answer 10

• 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.

Question 11

On what grounds would you advise the client to retender?

Answer 11

• Not enough tender returns.
• The tendering procedure is compromised.
• Significant design, methodology or programme changes after issuing the tender documents.

Question 12

How would you deal with a front-loaded tender?

Answer 12

• Request contractor removes front loading. If the contractor refuses, this may be grounds for disqualification.

Question 13

How could you reduce the risk of contractors pulling out during the tender process?

Answer 13

• 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.

Question 14

What is a contract sum analysis under design & build procurement?

Answer 14

• 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.

Question 15

What information is typically included in a tender analysis report?

Answer 15

• List of tenders received.
• Original tender sums.
• Any qualifications identified.
• Post-tender adjustments.
• Revised tender sun.
• Issues to be resolved.
• Comparison if tender returns.
• Comparison of Pre-Tender estimate.
• Recommendation.

Question 16

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?

Answer 16

• Form if tender to see how long the price was valid for.

Question 17

If the contractor (in their tender return) put a cost against an item and marked it as provisional, what would you do?

Answer 17

• 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.

Question 18

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)?

Answer 18

• The contract can be amended to include an LD free period.

Question 19

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)?

Answer 19

• The contract can be amended to include an LD free period.

Question 20

What is the purpose of a pre-tender estimate?

Answer 20

• 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.

Question 21

What happens if the tender prices are higher than the pre-tender estimate?

Answer 21

• 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.