Tender Document

A tender is a document compiled by bidders in response to an invitation to tender. It makes an

offer for the supply of goods or services. Tender documents are prepared to search for tenders.

Smith (1986, p. 33) defines ‘tender documents’ as ‘all the relevant information about the proposed
contract, rules, conditions, etc. supplied to the contractor which will enable him to price the work
as accurately as possible, taking into account all the special peculiarities which every building
project possesses’.

The tender documents of a project should typically contain the design and specification of what
the client wants to build. It is the same documentation that a contractor (bidders) needs to calculate
and offer a price and programme for a project. Laryea (2010)
The tender document may be divided a sequence of packages, each with its own design drawings
and specifications which may be issued by the main contractor to sub-contractors if need arises.
This makes the tender easier for the contractor to price and easier for the client to compare with
other bidders or tenderers.

Tender document should contain the following information:

 The objectives for the project
 Background information on the commissioning organisation
 Criteria for tender evaluation and selection
 An outline of the project deliverables which are required
 A detailed timescale for the tendering process which include time for issue of ITT
discussions, receipt of proposals, associated presentation of proposals, evaluation, award
of contract)
 A timescale for the project itself
 The information required from the tendering organization
 Format of the proposal.
Other information that are contained in the tender document include the following:

 A letter of invitation to tender.

 The form of tender.
 Preliminaries: including pre-construction information and site waste management plan (if
required).
 The form of contract, contract conditions and amendments.
 A tender pricing document
 Design drawings and Specifications.

Proposal
The term tender proposal is used in the procurement to describe the response from potential
suppliers to an invitation to tender ITT. It is a selling document that a supplier produces in response
to the request for proposal by a client.

The proposal also brings out three aspects and these are company overview, response to
specifications, and pricing.

The first section of every tender proposal is an overview of the bidder responding to the request
for proposal. It gives background in the industry, it highlights bidder’s successful projects of
similar size or larger, to indicate an ability to meet the client’s requirements. The proposal provides
the information such as bidder’s experience, cost, risk and quality management skills.

The second section is the response section. This is the area where the client will per more attention.
Therefore, this part of the proposal focuses on meeting the requirements as requested in the Tender
document. All the technical specifications and drawings required be provided are contained in this
section. This is part of the document where the bidder clearly shows their time management skills
through previous similar projects carried out. Traceable evidences of past projects are contained
in this part of the proposal. The bidder should indicate in the document any early project completed
or delayed projects previously executed and give reasons for each case. The proposal should also
indicate the bidder’s workforce, showing their qualifications, experiences and skills
Pricing is typically a separate section of the tender proposal. In this section of the proposal the
bidder demonstrates stability in terms financial capability. The bidder should include in the
proposal audited financial statements. The proposal contains any other sources of finances which
will also include any outstanding payments the bidder awaits from the previous projects carried
out. If there are multiple pricing options provided, the response clearly indicates the primary value,
along with the pricing for the different alternate solutions.

Contractual Documents
A contract is a mutually binding agreement which obligates the seller to provide the specified
product and obligates the buyer to pay for it. (PMI, 2000:34)

The contractual documents are documents which form the basis of the contract and may include
all pre-tender, tender, quotations and other documents. The contract documents contain sufficient
information that is needed to complete the project and meet the service delivery requirements. It
should be noted that both parties, the client and contract endorse complete sets of all contractual
documents, and that all documents are kept intact. Each part keeps a copy of the contractual
documents.

Lake (1997:61) states that after negotiations are complete between the client and the contractor, a
document called Terms of Reference is produced this document describes the project in some
detail and forms the basis of the contract between the client and the contractor. It is the basis on
which all subsequent decisions are based.
The Terms of Reference document is most of the times converted into a contract and usually
contains the following information:
• The client
• The contractor
• The end-users of the project
• The project objectives
• The project deliverables
• The costs involved in the project
• The resources required
• The timescale
Below are the documents that form contract documentation package (Master Builders
Queensland, 2017):

 Contract – the binding document or agreement between you and the owner to carry out
the building work. The type of contract you use will depend on the size and complexity
of the project.
 Contract conditions – define the legal rights and obligations, or the rules by which each
party (you and the owner) must comply
 Special contract conditions – as the name suggests, special conditions that are an
extension of the general conditions and apply specifically to the project
 Bill of quantities – a list of materials, parts and labour (and their costs) that are included
in the contract. The bill of quantities is helpful in valuing variations and assists in the
preparation of progress claims
 Drawings – the architectural and structural plans of the building
 Specifications – set out the technical requirements of the work. They describe the project
and requirements for materials and workmanship, and add clarity to the drawings
 Other documents – including technical and pricing schedules.
References

1. Smith, R.C. (1986) Estimating and Tendering for Building Work, Longman, London.
2. Laryea , S. (2010) Quality of tender documents: case studies from the UK, Construction
Management and Economics 29, 275–286
3. PMI, 2012, Project Management: Experience and Knowledge Self-Assessment Manual,
Pennsylvania, Project Management Institute, Inc
4. Lake, C. 1997, Mastering Project Management: Key skills in ensuring profitable and
successful project, London, Thorogood Ltd
5. Master Builders Queensland, 2017, Contract documentation, accessed [29th November
2017], < https://www.mbqld.com.au/contracts-and-disputes/contract-documentation>.