WK2PM - Tendering (2)

Question 1

Q1. Under a single stage tender there are ways of dealing with errors – what are they? Give reasons why you may recommend each option to a Client.

Answer 1

1 – Standby or withdraw
2 – Correct it or withdraw
Risk not being the most competitive after amendment.

Question 2

Q2. Why should the Clients representative examine a tender in detail?

Answer 2

To save time and cost in the long run.

Major deviations to the commercial requirements and technical specifications are a basis for the rejection of tenders.

Question 3

Q3. What is meant by the term front loading? What should you do if the contractor has front-loaded his rates in a tender?

Answer 3

The term ‘front-loaded’ refers to costs that are applied disproportionately to elements of the work that take place early on during a project or part of a project to enhance cash flow.
Query – ask for a breakdown in evidence to be reviewed.
Must be careful as overpaying and a company going bust will result in having to pay someone else to complete the works.

Question 4

Q4. What is meant by the term “a qualified tender” and give an example?

Answer 4

A non-compliant tender – doesn’t match specification. Disregard and ask to price again like for like.

Question 5

Q5. What is the difference between arithmetical errors and pricing errors? Give examples?

Answer 5

Pricing errors – Incorrect rates
Arithmetical errors – Incorrect calculations
Could lead to variations, claims and disputes
Need correct rates for variations

Question 6

Q6. What documentation will be exchanged between the parties for a tender based on a D&B procurement route? How does this differ under Traditional and Management?

Answer 6

•	Client requirements
•	Ground condition
•	Time
•	Summary
•	Budget 
•	Quality 
•	Contract proposals
Traditional 
Drawing, Bill of Quantities, full detailed spec where as D&B is performance related spec.

Question 7

Q7. How are the bidders notified of the outcome of the tender?

Answer 7

Successful – In writing, Start date and price

Unsuccessful – Can request feedback of winning price and position.

Question 8

Q8. What should be discussed in a tender report?

Answer 8

• Prices
• Companies
• Contract
• Procurement route
• Tender process
• Adjustment of prices

Question 9

Q9. A tender package is issued to 6 contractors and the return date and time is stipulated in the package. The procurement route is Traditional with BQ. Five of the contractors submit their tenders on time, but the 6th contractor misses the deadline and submits it late. The client instructs you (as their QS) to open all the tenders including the late one and report the results. Unfortunately, the late tender is also the lowest tender submitted and contains no errors. What would you advise and why? What are the consequences of the decisions that could be made?

Answer 9

• Don’t open late tender
• Return unopened
• Don’t award
• Unfair – Going against rules
• Risk to claims
• Late to submit = late on project?

Question 10

Q10. The first alternative was cited in the tender documentation as the procedure for amending errors, however the lowest tenderer submitted his tender with errors contained within. The client decided to allow the contractor to submit a revised tender for the items subject to an error and this was still the lowest after the amendments. Can the Client enter into a contract with this tenderer? What are the consequences?

Answer 10

Client at risk of claims from other tenders for breaking tender rules