CE 6010 – CONSTRUCTION CONTRACTS &

SPECIFICATIONS

• TENDERING PROCESS
• CONTRACTS – MINIMUM REQUIREMENTS

• DEFINED SCOPE OF WORK

• CLEAR OFFER
• UNQUALIFIED ACCEPTANCE
• MEETING OF MINDS
• TIME FOR PERFORMANCE
• AMOUNT PAYABLE & PAYMENT TERMS
• CLEARLY DEFINED OBLIGATIONS OF
CONTRACTING PARTIES
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• TENDER SCOPE FINALIZATION
WHAT IS THE NATURE OF WORK SOUGHT IN
THE TENDER

• A/E CONTRACT ??
• CM/PM CONTRACT ??
• OWNER DESIGNED ??
• DESIGN & BUILD / EPC ??
• BOOT/ BOLT ??
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• TENDER SCOPE FINALIZATION
• SINGLE TENDER PACKAGE OR MULTIPLE??
• MATERIAL SUPPLY ONLY?
• LABOUR ONLY?
• SUPPLY & INSTALLATION?
• DESIGN, SUPPLY & INSTALLATION (EPC/
DESIGN- BUILD)
• MODE OF PRICING
• LUMP SUM ? / UNIT RATES? / COST
PLUS??
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS

• FINALIZATION OF TENDER DOCUMENTS

SCOPE OF WORK –
DESCRIPTION OF WORK /DRAWINGS /
SPECIFICATIONS/ BILL OF QUANTITIES
• CONDITIONS OF CONTRACT
• OTHER NECESSARY INFORMATION
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• OPEN TENDER – EVERYONE INVITED
• DISADVANTAGES
• CAPABILITY OF LOWEST BIDDER NOT
VERIFIED
• RESULTS IN VARYING / UNRELIABLE
PRICING
• MUCH TIME REQUIRED FOR EVALUATION
& SELECTION
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• PRE – SELECTION / PRE QUALIFICATION
OF BIDDERS
• IDENTIFY CAPABILITY REQUIREMENT
• FINANCIAL /TECHNICAL/ MANAGEMENT
• PRESENT WORK LOAD
• PAST PERFORMANCE IN SIMILAR JOBS
• FINANCIAL STRENGTH
• SPECIAL EQUIPMENT AVAILABILITY
• REQUIRED ENGINEERING / MANAGEMENT
SKILLS WITHIN THE ORGANIZATION
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• TENDER DOCUMENT PREPARATION
• TENDER SCOPE OF WORKS
• DRAWINGS
• SPECIFICATIONS
• BILL(S) OF QUANTITIES
• CONDITIONS OF CONTRACT
• OTHER PROJECT REQUIREMENTS
• ANY OTHER RELEVANT INFORMATION
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• CALLING FOR BIDS

• NOTICE INVITING TENDER (NIT) OR REQUEST

FOR PROPOSAL (RFP)
• ADVERTISEMENT IN NEWS PAPERS / TRADE
JOURNALS / OWNER’S WEB SITE
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• NIT / RFP

• BRIEF DESCRIPTION OF WORK

• PLACE OF WORK
• NAME OF TENDERING AUTHORITY
• APPRX VALUE OF WORK PUT TO TENDER
• WHERE AND UP TO WHEN TENDER
DOCUMENT CAN BE COLLECTED AND THE
FEES
• DATE OF SUBMISSION OF BID / TENDER
NIT / RFP
NIT / RFP
NIT / RFP
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• INSTRUCTIONS TO TENDERERS
• LIST OF BIDDING DOCUMENTS
• VALUE OF EARNEST MONEY DEPOSIT (EMD)
• TENDER VALIDITY PERIOD
• SITE VISITS AND PRE – BID MEETINGS
• ISSUE OF CLARIFICATIONS/ ADDENDUMS /
CORRIGENDUMS
• HOW TO PRICE – INCLUSIONS & EXCLUSIONS
• HOW TO FILL? / ERRORS / DISCREPANCIES
• ADDITONAL INFORMATION TO BE FILLED IN
GIVEN FORMATS / SCHEDULE
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• INSTRUCTIONS TO TENDERERS
• WHERE & WHEN TO SUBMIT
• HOW TO SUBMIT – SINGLE COVER / TWO COVER
TENDER
• OPENING OF TENDER – CLOSED OR IN
PRESENCE OF BIDDERS
• INCOMPLETE INFORMATION / ERRORS IN
TENDERS
• TENDER EVALUATION CRITERIA & PROCESS FOR
SELECTION AND AWARD
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• SITE VISITS / PRE-BID CLARIFICATION
MEETINGS
• ALL BIDDERS INVITED TO PARTICIPATE
THOUGH NOT MANDATORY
• SITE VISIT – TO ASSESS WORKING
CONDITIONS / ACCESS / OTHER LIKELY
CONSTRAINTS
• PRE – BID MEETINGS – TO EXPLAIN THE
SCOPE AND PROVIDE ANSWERS TO
BIDDERS’ TECHNICAL & COMMERCIAL
DOUBTS
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• ISSUE OF ADDENDUMS/ CORRECTIONS
• ADDITIONAL INFORMATION/
CLARIFICATIONS PROVIDED TO BIDDERS TO
FACILITATE PROPER PRICING
• ISSUED IN WRITING AND TO ALL
PARTICIPATING BIDDERS
• USUALLY INFORMATION PROVIDED IN
ADDENDUM / CLARIFICATIONS SUPERCEDE
THE CORRESPONDING EARLIER
INFORMATION
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• TENDER SUBMISSION & OPENING
• AS STIPULATED IN THE TENDER
DOCUMENTS
• AT THE PLACE, DATE & TIME STIPULATED
• SINGLE / MULTIPLE COVERS
• TECHNICAL & COMMERCIAL / FINANCIAL &
PRICING
• PUBLIC OPENING & ANNOUNCEMENT OF BIDS
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• WITHDRAWAL OF TENDERS BY BIDDERS

• USUALLY NOT PERMITTED AND BIDDER

FORFEITS EMD
• CAN BE DONE AFTER INITIAL TENDER
VALIDITY PERIOD IS COMPLETED
• IN RARE INSTANCES WITHDRAWAL
PERMITTED IF BIDDER CAN DEMONSTRATE
GENUINE ERROR IN SUBMISSION
RENDERING THE BID UNVIABLE
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• TENDER EVALUATIONS & CORRECTIONS
• CHECK WHETHER SUBMISSION IS
COMPLETE – ALL REQUIRED INFORMATION
FILLED IN
• DISCREPANCIES IN RATES BETWEEN
NUMERIC & WORD
• CORRECTIONS
• TOTALLING ERRORS
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• POST TENDER CLARIFICATIONS /
NEGOTIATIONS
• DISCUSSIONS / CLARIFICATIONS TO ENSURE
WHETHER BIDDERS HAVE CORRECTLY
UNDERSTOOD CONTRACT REQUIREMENTS
• NEGOTIATIONS ON
• HIGH / LOW RATES
• OTHER TERMS & CONDITIONS PROPOSED BY
BIDDER
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• LETTER OF INTENT (LOI) / LETTER OF
AWARD OR ACCEPTANCE (LOA)
• TO BE ISSUED BY DESIGNATED AUTHORITY
• TO COMMUNICATE CLEAR ACCEPTANCE OF
OFFER AND ANY OTHER CHANGED TERMS
ARRIVED AT DURING NEGOTIATIONS
• INSTRUCTIONS TO PROCEED WITH THE
WORK
• ANY LOI /LOA WITH QUALIFYING TERMS NOT
DEEMED TO BE A CLEAR ACCEPTANCE
CE 6010 – CONSTRUCTION CONTRACTS &
SPECIFICATIONS

• TENDERING PROCESS
• CONTRACT AGREEMENT
• IN GOVERNMENT CONTRACTS USUALLY IN A
PRE DEFINED FORMAT INCLUDED IN THE BID
DOCUMENTS
• BRIEFLY DESCRIBES SCOPE, CONSIDERATION,
TIME AND ANY OTHER MAJOR TERMS
• ON A STAMP PAPER AND SIGNED BY
AUTHORIZED SIGNATORIES FROM BOTH
PARTIES
• NOT MANDATORY FOR CONTRACTS BETWEEN
PRIVATE PARTIES