Tendering Process Case Study

1. a. Explain the client’s involvement in the tender process.

Tendering is the process of making an offer, bid or proposal, or expressing interest to an invitation or request for tender. Organizations will seek other businesses to respond to a particular need, such as the supply of goods and services, and will select an offer or tender that meets their needs and provides the best value for money.

The entire tender process for main contract works starts with the identification of the need to approach the market place to obtain competitive prices to carry out the works and ends with the formal exception of the contract.

Risk

The greatest objective for a client is to pass as much risk as possible by selecting a strategy with few separate

The quality of the finished project is paramount. For example, a seven-star hotel in Dubai will feature the very best of materials and high-quality work. Quality is the variable that must be controlled through close supervision and inspection (Vivian & Thomas, 2007).

c. Describe the scope of the contractual documentation required to support the tendering process.

Tender documents may be prepared for a range of contracts such as; equipment supply, the main construction contract (including design by the contractor), demolition, enabling works etc.

Tender documents should be broken down into a series of packages (even if there will only be one main contract) each with its own design drawings and specifications suitable to be issued by the main contractor to potential sub-contractors. This makes the tender easier to price for the contractor and easier to compare with other tenders for the client. The cost plan (pre-tender estimate) should also be reassembled package by package to allow easy appraisal of tenders received.

Tender documents

Use standard data documents and measurement rules.

Standard costing is the preparation and use of standard costs, their comparison with actual costs and analysis of variances to their causes and point of incidence. The variances calculated are then analyzed and where possible, action is taken to counter the reoccurrence of excess costs in the future. Standard costing has been used more successfully in manufacturing industry, where controlled conditions exist and in those companies where there is a considerable amount of repetition in their production.

A standard cost is calculated through normal work-study procedures or alternatively on the basis of normal distribution data from records retained from previously similar site operations. These standards are then set out on a cost record sheet against which the actual values are entered and verified.

The new rules of measurement (NRM) are published by the Royal Institute of Chartered Surveyors (RICS) and Construction Professional Group. They provide a standard set of measurement rules for estimating, cost planning, procurement and whole-life costing for construction projects. Adopting a standard methodology such as NRM facilitates consistency and benchmarking and helps avoid disputes