TENDER

DOCUME
N T
By INTAN BAYANI BT ZAKARIA
Department of
Building Surveying,
UiTM Perak
TENDER
Tender Procurement
The administration of a construction
contract is complex.
A variety of factors including the forms of HOW TENDER IS CARRIED
contract used, parties involved, the system OUT
- IT DEPENDS ON
of procurement used, constraints in terms
WHOM THE OWNER OF
of time, money and quality would have
PROJECTS.
impact on the outcome of the contract.
Therefore, effective and efficient
TWO CATEGORY OF
administration of the contract is not only
necessary but also vital in order to achieve OWNER
success. - PRIVATE SECTOR
& PUBLIC
SECTORS.
The process of tendering
 Tender In Public Sector - MALAYSIA SCENARIO
THE RULES:
– IN MALAYSIA, PUBLIC SECTOR is the largest owner or main actor in
construction industry.

– It is contended that in the Public Sector project, the tendering procedures

must follow or in accordance with structured and formalized process.

– The tendering procedures always governed by factors such as sources of

funding and type, nature and estimated cost of projects.

– In Malaysia practice, it is mandatory to let projects estimated to cost more

than RM500,000.00 each through OPEN TENDER.

– Only in specific cases, such as urgency of the work or for security reasons or
need for sophisticated design, so, the SELECTIVE TENDERING or
NEGOTIATED TENDER are allowed (must seek prior approval from the
Ministry of Finance).
 Tender in Public Sector - MALAYSIA SCENARIO
THE RULES…..
– the Government Fund - It is also mandatory for all public tenders
are funded by the Government’s own source or financial.

– Tenders to be opened to Malaysian contractor firms only.

– The exception to this rule are (PENGECUALIAN):

1. Malaysian contractor are not capable or incompetent
(inexperienced etc.) in certain type of works.
2. For LARGE civil engineering works or specialist works which
estimated cost more than RM50 million each, the Joint-venture
(JV) agreement or MOU arrangement are allowed. Where the
selected foreign contractors are invited to JV with Malaysian
contractors through Pre-qualification exercise.
Tender in Public Sector - MALAYSIA SCENARIO

BUT...
– The Malaysian government’s policies on open
tender and Malaysian contractors are not
applicable for project funded by the
international funding agencies such as World
Bank, ADB, IMF, IAD,etc.

– Tendering projects funded by these bodies are

subject to the conditions of the loan agreement
and procurement procedures laid by them.
TENDER
DOCUMENTS
 CONSULTANT S ROLES - IN TENDER DOCUMENT
PREPARATION

Architect &
DRAWINGS Engineer

COMPILATION
CONSULTANT
CONCERNED
SPECIFICATION
CONSULTANT
CONCERNED

PARTICULAR
CONDITION
OF CONTRACT QUANTITY
SURVEYOR
ESTIMATE
GENERAL
CONSULTANT
CONCERNED
CONDITION
OF CONTRACT
 Tender content must SO….
reflect or illustrating the The contract
contract system has been
selected in the project is usually
proposal based on
Isi kandungan tender mestilah either
mengambarkan sistem
kontrak yang telah dipilih
dalam cadangan projek
tersebut
 TENDER DOCUMENT PREPARATION

The agency or Consultant that
produce the tender, have to prepare 11.Performed / Track Record
the tender documents which in
generally contain the following
matters:-
1.Instruction to tenderer
2.Scope of Works
3.Tender Form
4.Tender Regulations
5.Condition of Contract
6.Bills of Quantities / Tender summary
7.Schedule of Rate
8.Technical drawing / Plans
9.Contract Period
10.Proposal Technology Transfer
12.Profile and Financial Status
 TENDER DOCUMENT PREPARATION

• In general, contractual procedures differ with the forms of

contract used.

• In public sector (Malaysia), the most often used forms of contract

are the JKR 203 (Pind. 10/83) / PWD203 (Rev.10/83) for contracts
based on DRAWINGS AND SPECIFICATIONS, and
• JKR 203A (Pind. 10/83) / PWD 203A (Rev.10/83) for contracts
based on BILLS OF QUANTITIES.

• Other standard forms of contract in use in Malaysia are the PAM /

ISM, ICE and FIDIC. Most often used by PRIVATE SECTOR.
 MoreDOCUMENT
TENDER specific, the BASED
contentON
of Tender Document as below:-
TENDER DOCUMENT BASED
BQ Contract ON Drawings and
1.Letter invitation to tender
2.Check list for submission of tender
Specifications
3.Articles of Agreement and condition of
1.Letter invitation to tender
Contract 2.Check list for submission of tender
4.Tender Form 3.Articles of Agreement and condition of
5.The tenderers profile / CV - Forms for Contract
details of tenderer’s registration as a 4.Tender Form
contractor and of organisation, particulars 5.The tenderers profile / CV - Forms for
of ten job completed and jobs in hand details of tenderer’s registration as a
6.Letter of Acceptance contractor and of organisation, particulars
of ten job completed and jobs in hand
7.Bank and insurance guarantee forms for
6.Letter of Acceptance
Performance Bond 7.Bank and insurance guarantee forms for
8.Bank and insurance guarantee forms for Performance Bond
Advance Payment 8.Bank and insurance guarantee forms for
9.Specification Advance Payment
10.Bill of Quantities 9.Specification
11.Drawing & Plans 10.Summary of Tender
11.Schedule of Rates
12.Drawing & Plans
ASPECTS TO BE CONSIDERED DURING PREPARE THE TENDER
DOCUMENT