PREPARE & EVALUATE THE TENDER
From the material provided in PDF attached answer the following
tasks–
PART A – RECEIVING A REQUEST FOR TENDER FOR A NEW PROJECT.
Prepare the following as though you are going on holidays and you need
your Site Supervisor to review any Request for Tenders that may a
ive in
your absence.
Preparing a process to evaluate a Request for Tender.
Q1. Begin with what documents you should have and what information should
e within each of the documents prior to commencing the evaluation.
Q2. Provide a copy of the documents in Q1
Q3. What checks should be ca
ied out regarding Timeframes to submit.
Q4. Provide a checklist (point form) of what should be in the
Tender Request prior to commencing any preliminary work on the
Tender.
Q5. List (point form) what must be ascertained from a Site Visit or Pre Tender
Meeting.
Q6. Provide a list (point form) of items that you would want the Supervisor to
present to you in a Report to Management regarding the tende
PART B – Compiling an Existing Tender
Prepare the following as though you are going on holidays and you need your Site
Supervisor to Review the Tenders that have a
ived in your absence.
You have sent out a Request for Tender to several contractors prior to going on
holidays. You have a good chance of winning this job and will only have a week
to finalise the Tender on your return.
You have requested your Supervisor to review the tenders received from the
Sub Contractors.
1. Provide a step by step procedure to review and evaluate each application.
REFER TO TOPIC 6 AS A GUIDE
2. Set out what criteria to use when selecting the most suitable tender –
Provide directions and checklists to support your selection
process.
3. Provide a list ( point form ) of items that you would want the Supervisor to
present to you on your return in a Report to Management regarding each
tender submission.
4. Also advise your Supervisor in what order you would want the selection process
as a comparison of each of the tender submissions. Be it by Price or Prefer
Procedures to be set out similar to below –
RULES DO’S List your rules first (policies) regarding each phase/section of the
task
DO NOT List what must not be done
PROCEDURE
Step by Step tasks
to ca
y out the role
1 - Who is responsible
2 - What needs to be done first
3 - What needs to be next
4 - Now list how it is to be done
4 - In what timeframe is each step to be ca
ied out
5 - If it is applicable – nominate where the task should be ca
ied out OR
where information can be obtained
6 - If it is applicable – nominate how the process is to be recorded or
documented
SUPPORT
DOCUMENTS
List the co
ect document that must accompany each document
Provide an example of each document (DO NOT FORGET TO INCLUDE
SAMPLE DOCUMENTS – YOU WILL BE MARKED NYC IF SUPPORT
DOCUMENTS ARE REQUESTED AND NOT RECEIVED)
OBLIGATIONS OF
THE PARTIES
PRINCIPAL, CONTRACTOR, SUPERVISOR, SUBCONTRACTOR, WORKER ETC
Where applicable insert what each officers obligations are
CONTINGENCY List any ‘what to do if the wheels fall off’
REVIEW PROCESS By Whom, When, Frequency
Report Process
Follow up
TENDER EVALUATION
Page 1 of 11
TENDER EVALUATION
Source: Extracts/Adaption from Guidelines on Tender Evaluation Tasmanian Dept of Treasury &
Finance
INTRODUCTION
Organisations should aim to achieve value for money whenever they procure
uilding and construction industry services. This requires clear project definition
and selection of the best procurement method for the project.
Most organisations tendering processes aim to ensure that the most suitable
contractor is selected for each project. The processes are based on three (3)
principles:
1. Probity
2. Fairness
3. Value for Money
Traditionally, building construction contracts have been awarded to the
company with the lowest priced confirming tender. This method of warding
tenders will continue into the future for most projects.
Nevertheless, there are occasions when the traditional method may not result in
the selection of the most suitable contractor for the project. An example is a
contract for the long term maintenance of a building, where the quality of
maintenance has a direct impact on the delivery of the organisations outputs,
compliance with OHS legislation and the long term value of the asset.
In these situations, an alternative tender evaluation process using weighted
criteria could be adopted to determine the tender that offers the best value.
This process is utilised where the performance of the contractor is of crucial
importance to achieving the required outcome.
The weighted criteria method of tender evaluation requires that selection
criteria in addition to price are included in tender documents and form part of
the tender assessment process. A system of weighting the selection criteria
issued to compare tenders and identify the tenderer with the best performance
ecord in terms of time, cost and value for money.
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The guidelines presented on the following pages are a guide only – to put
forward a consistent and robust approach for all major building works and
services tenders using a weighted criteria method for tender assessment.
Principles
The weighted criteria tender assessment process is based on the following
principles:
▪ Selection criteria that reflect the critical elements of the project and that
can be assigned a weighting.
▪ Weightings that reflect the relative importance of selection criteria.
▪ Scores that are based on information submitted with the tender bid; and
▪ Normalising the non-price criteria and the tender price before applying
the weightings to allow for the true effect and advantage of the
weighting system.
The system recognises contractors who have better performance records in
terms of quality, time and cost.
Weighting on the tender price normally exceeds 60%. A lower weighting on
tender the price would represent extraordinary circumstances. Evaluation
practices adopting a weighting of less than 60% would require more work in
justifying the decision.
Organisations should consider whether the extra cost incu
ed by a very good
tender submission is matched by a reduction in the overall project costs or by
the project’s running costs. This analysis should be ca
ied out by experienced
personnel.
Selection Criteria
Rather than automatically accepting the lowest price, the tender evaluation
process applies weighting for:
▪ Skills.
▪ Quality.
▪ Experience; and
▪ Previous Performance.
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In a manner to ensure value for money.
To assess tenders, a system of criteria intended to encapsulate the competence
of the tendering organisation to undertake a particular project is used to rate
the tenderer’s bids.
All relevant information requested in the tender documents and provided with
the tender is used in the tender evaluation.
The criteria are usually selected from the following:
▪ Relevant experience.
▪ Appreciation of the task.
▪ Past performance.
▪ Management and technical skills.
▪ Resources.
▪ Management systems.
▪ Methodology; and
▪ Price.
Generally, no more than five (5) criteria would be used. The criteria must be
elevant to the project, they must be able to be evaluated in a meaningful way
and they must be able to be used to allocate a score to the tender submissions.
When weighting non-price evaluation criteria, organisations should ensure that
any difference in scores between a good submission and a satisfactory
submission does not overshadow a substance price difference. Organisations
assessing submissions with a substantial price difference must ultimately justify
their selection in terms of value for money if the higher priced tender
submission gets the higher score.
Some organisations have a “Contractor’s Pre-Qualification Scheme” in place
which provides the basic financial status and technical ability of the contractors
has been assessed which eliminates the need to consider the Contractor’s
credibility or aptitude and saves time in the evaluation process.
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Relevant Experience
Previous experience of the tenderer needs to be assessed in relation to the
fields of expertise required to achieve the intended outcomes of the project.
Recent experience is more valuable than historic experience. The company’s
previous experience in technical areas comparable to the tendered project, the
scale of past projects and the role undertaken within those projects should be
considered.
Information required should include a list of relevant projects undertaken and
for each project provide:
▪ Description and relevance to the tendered project.
▪ Role of the tenderer.
▪ Project cost; and
▪ Duration of the project.
Past Performance
The tendering organisation’s performance in.
▪ Completing past projects to the quality standards required.
▪ Time performance.
▪ Completing past projects within budget.
▪ Claims history.
▪ Project management expertise; and
▪ Product value.
Need to be assessed.
Extension to the contract completion date and claims for variations also give an
indication of performance quality. Similarly, the satisfaction of previous clients
egarding the management of the project and project outcome provide useful
subjective information on performance of the e=tenderer.
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The information required should include the following information on each
project completed by the tendering organisation:
▪ Project name.
▪ Client’s project manager (name and contact numbers).
▪ Quality standards, target performance levels.
▪ Tender price, variations and final cost.
▪ Completion date and extensions of time granted; and
▪ Details of OHS application and records.
Technical Skills
The competence of key management, professional and technical personnel that
the tenderer proposes to employ on the project needs to be assessed with
particular emphasis on the skills and experience in technical areas comparable
to the project.
The information required should include the following details of the proposed
project team:
▪ Names.
▪ Functions.
▪ Technical expertise; and
▪ C.V’s to be provided.
Management Skills & Systems
The availability within the tenderer’s organisation of personnel with appropriate
management skills together with effective management systems and methods
appropriate to the successful management of the project.
The information required should include the following:
▪