TENDER DOCUMENT CONTENTS

The tender document is divided into two types:

The tender document for contract based on the bills of quantities (BQ)
 Usually used for large projects
 Preparation requires a relatively long time
 It can provide as a foundation for assessing the work done for interim payment and work
changes.

The tender document for contract based on drawings and specifications.

 The use to the project to be completed soon due to limited time for Quantity Surveyor had
to prepare Bills of Quantities.
 Suitable for low and moderate project costs.
 The contractor must include the total price for work in bulk only (Lump Sum)

Based on BQ Based on dwgs & specs

1. Letter of invitation to tenderers 1. Letter of invitation to tenderers

2. Checklist for submission of tenders 2. Checklist for submission of tenders
3. Form of offer 3. Form of offer
4. Instructions to tenderers 4. Instructions to tenderers
5. Condition of tendering 5. Condition of tendering
(preliminary work, material evidence and (preliminary work, material evidence and
the work quality) the work quality)
6. Specification 6. Specification
7. Preambles/contractor background 7. Preambles/contractor background
8. Bills of Quantities(BQ) 8. Tender Summary
9. Appendix 9. Schedule of rates
10. Drawings 10. Appendix
11. Drawings

Tender Table Dokument(TTD)

 This document is very similar to the tender document, but usually more complete than the
tender document that is sold to contractors.

 Prepared before tender being offer to contractors or advertised(tender notice).

Documents place at a special special desk@place in the PWD @ residence office.
The tender document is used to enable the contractor get a clear picture of the project
and briefly describe tender contents.

 Usually published during tender notice re-opens until closing date submissions of tender.
DEFINITION OF TENDER NOTICE

 Statement issued by the developer to invite contractors to enter tender for the
proposed project
 Tender notice is to inform the contractors who are interested with important details of
a tender.

TENDER NOTICE ELEMENTS

 Must be attractive and offer complete information about the project so that many
qualified contractors participate to the tender.
 Bids shall be advertised in the local newspapers or posted on the notice board at
the employer's/owner office.

INFORMATION AND CONDITIONS OF TENDER NOTICE

Important information that should be included in tender notice :-

• Logo and name of employer/owner

• Work title
• Type of tender
• Classes to invited contractors
• The head and sub heads
• Payment of the tender document
• Places to take the tender document
• Place and time of the tender documents returned
• Date of site visit, the time and location
• Location for checking TTD
• Time and date to check TTD
• The closing date for tender

DURATION OF TENDER NOTICE PROCESS

 Usually the tender offer published in local newspapers or by notice posted at the owner
notice board two weeks before site visit.

The tender statement(for tender notice) should be
sent to the press at - least two weeks before the advertised date.
STANDARM FORM FOR TENDER PROCESS

The standard form used during the tendering process are:

Form of Quantity Surveyor appointment

This form is a confirmation between developer and quantity surveyor to carry out work related to
the management of Quantity Surveyors in a construction project.

Bond of Performance Form

Is a letter of guarantee issued by a particular bank or financial institution about the financial
position of the contractor, so that owner & consultant will have more confidence in contractor
abilities to construct/handle a works.

Form of Contract
Form of agreement between the contractors and developers to carry out a project. It contains the
terms of agreements and contracts that must be followed by both parties. Form of contract used
is whether JKR203/203A or PAM (equivalent contract)

Contractor Pre-Qualification Form

This form is used by the contractor swho wants to enter the Pre-qualification tender. This form
practised to observed contractor organization to handle a project..Assessment is based on the
number of workers, the number of machines used and the experience of handling previous
projects.

Forms for Small Contractors and Material Suppliers

To appoint an organization as of small contractor or materials supplier for the construction
project.

Summary of Tenderer Form

This form is used to list the capabilities in terms of financial, capital, plant, personnel and
experience of each participating tenderer.

Form of Current Projects

This form provides an explanation about ongoing construction projects by tenderers.

Form of Tender Error

This form is used to record all the errors made by the tenderers. The error of each element in the
BQ or tender document will be recorded for the make corrections.

Form of Tender Results

Which is the last form being used where QS will recommended the suitable/qualified contractor to
the owner/client to carried out works.
TENDER CLOSING PROCESS

The closure means the tender closing date as stated in tender notice. When the closing date of
the tender, the completed tender documents by tenderers will put inside provided tendering
box. The tender box will be closed and kept in a engineer office. Committee of opening tender will
open the box after meeting/discussion.

THE USE OF TENDER BOX

Box used to keep the tender documents prepared/submitted by contractor. Tender box is a
locked box which is marked with project no., project name, date and time of tender
opening and date of submission based on tender notice.
After the closing date of tender, the tender box will be locked and kept in the engineer
office. Tender box will be reopen once Committee of opening tender had a meeting/discussion.

OPENING OF TENDER PROCESS AND DUTIES OF COMMITTEE OPENING OFFER

As we have explained the process of opening tender box will be done by members of the tender
opening. Members of this committee usually consists of three officers who were appointed by the
employer. Any documents submitted will be recorded in serial number based on the amount of
the tender documents.
For example, 1/10, 2/10, 3/10, 4/10 ... 9/10 and 10/10, if there are 10 tenderers submit their
tender respectively. This serial number will be listed together in a special form together with
tender prices being submitted. This form is known as a Form of Tender Schedule.
Form of Tender Schedule will be handed over to the other committee to make a tender evaluation
or analysis. The committee must consist of not less than two persons either Quantity Surveyor or
Technical Officer in the relevant field of work.

TENDER ANALYSIS
Assessment of tenders carried out in two stages of assessment and evaluation which is First
Stage and Second Stage.

First Stage Assessment

The first assessment on the lowest tender for a few tender within a reasonable price to meet the
following conditions :-

Tender Perfection
Tender must be complete and free from any legal local authorities regulation and reasonable
contract to determine eligibility based on common practice.

Satisfactory Financial Position

Tenderers must submitting their evidence/proof or assessment officer satisfied with financial
condition to constuct a project.
Satisfactory Current Work Performance
Tenderers who do not have a project or defined as 'sick' or getting a bad report from the
supervisor or the officer have a possibility facing a termination of work because of unsatisfactory
job performance.

Tenders which is not meet above conditions shall not being considerated to further
assessment in Second Stage.

Second Stage Assessment

The second stage of assessment is made on a number of tenders that pass the evaluation of the
first stage begins with the lowest to the highest tender prices. This following criteria
were used to determine the most advantageous/profitable tender for consideration.

Tender Price
Tender prices submitted by the tenderer will be compared with the department/client budget.
Department/client budget should ensure first their reasonableness.

Experience
Evaluation based of experience is important especially for the contractors who offered low prices
of tender. To enable the lowest or lower tender prices to be considered, contractors(tenderer)
should have a good record in two similir projects within five years. (as a proof to clients that
although offered the lower/lowest prices contractors have the ability for the construction works)

Current Performance
Current work/present work is a project still under construction/not completed during the closing
date of tender. Job performance of tenderers will be categorized as follows:

Excellence - exceed the actual percentage of progress schedule.

Satisfactory - the same percentage of the actual progress or backward from schedule of
less than 30%.
Current job performance evaluation shall be based on a report from the
Superintendent or Engineer Officer who observed the project.

Technical Staff
These factors are evaluated based on the number of technical staff, compared with technical staff
minimum estimates requirement(Anggaran Keperluan Minimum-AKM) to carry out the tendered
project in a great shape.

Plant, Quarry and Factories

If the technical technical less than AKM requirement bu the tenderer(contractor) have a quary,
factories and etc, or other relevent factors that can support their tender prices respectively-can be
considered

All the analysis and evaluation will be entered into the tender report for submitted to the
Tender Board to be considered. Then Tender Board will make selection of the successful
contractors to implement the project.
TENDER REPORT

Tender report shall included below item so that the Tender Board would be able to select
qualified contractor for the construction works.

a. A summary of the scope of work to be undertaken as the project name, comfirmation and etc.

b. Explain how to invite tenders for the project and

describes when the tender is opened and closed, and the final date submission of tender.

c. List the tenderers - the price of the tender with completion of their works respectively by sorting
the lowest prices first.

d. Review and lists of the error that occurred in the tender and lists the errors of the
tenderer. Based on the list, the final tender prices should be recorded along with any occured
errors.

e. Owner/clients&consultants must submit their estimates (tender prices) and the

differences with each tenderer by contractors.

f. Contractor background such as the company's name, class, and the list of completed and on-
going/current construction project.

g. Suggestions and support to select and appoint certain contractors to the Tender Board after
analyzed and studied above conditions.

DUTIES AND AUTHORITIES OF THE TENDER BOARD

Duties and authorities of the tender board usually depend with the board stages. There is three
stages in tender board such as :-

1. Tender Board Federal Level

It is represented by the Director-General of the Public Works Department, Treasury, Ministry
of Public Work Department/Economic Planner Unit/ State / UPEN or any body / unit concerned.
this offer is only for federal projects/works. The Board is authorized to clarify & certify tender offer
exceeding RM250,000.00.

2. State Tender Board

The Board is represented by the secretary of state / Secretary, State Financial Officer, Director
of JKR and others. The Board is authorized to certify deals finance by the state
government alone.

3. Tender Board District Level

The Board is represented by the secretary of state, finance officer which is a member of the
quotation committee and only authorized amount of tender not exceeding RM10,000.00.

TENDER AWARDS

Award of tender occur when tender/offer offered to contractor, which is tender prices being
acknowledged&clarify by client and after that client/project owner accept tender submitted by
contractor.

The employer will issue a letter of acceptance of tender to the selected contractor and contractor
should not withdraw from the project. The contractor shall sued if the offer is rejected. This is
because from contractors who selected, then the contractor could not withdraw because of
contractual relations existing between the employer and contractor.
Letter of tender acceptence may be made in two stages:

a. Letter of Intent
this is a letter to the contractor that the contents is about owner/client intention to accept the
tender submitted by contractor based on government conditions and requirements that must
followed by contractor. This type of letter is not a contractual agreement between
government/client/owner and selected contractor.

b. Letter of Acceptance
That is a acceptance letter based on the condition that related to the contractual agreement.. This
is a valid legal document and part of the contract. This letter is issued to the successful
contractor when all matters have been resolved and no further consultation/negotiation is
needed.

TENDER REJECTION

some of the reasons why a tender was not accepted :-

 the offer price is too high

 the offer price is too low. If the works/projects given to the contractor, had a risks of non-
completed works..
 contractors handle a lot of works and exceeds the financial limit registration.
 record of previous projects not is not satisfactory.
 failure to comply with any conditions of the offer.
 the tender details not completed correctly
 not enough financial budget for the construction works
RE-TENDERING

Re-tendering process happen when this occurs:

 tender prices offered too low or high.

 there are errors in the tender document, due to calculation method or the details of the
drawings.
 there is not enough funds or financial budgets for the projects.