Tendering Procedure

• In general, and for competitive tendering, the procedure

in tendering is as follows:
(a) Invitation to tender; can be open tendering or
selective tendering;
(b) Collection, pricing and submission of tender;
(c) Opening of tender;
(d) Preparation of tender report and recommendation
of short-listed tenderers for interview;
(e) Interview of short-listed tenderers;
(f) Recommendation for selection of contractor,
(g) Award of contract.
 a. Invitation to tender
• Invitation to tender can be in the form of
advertisements or letters inviting
contractors to tender for a job.

Question a.1
(i) What are the important information that should
be included in an advertisement or letter of
invitation to tender?
(ii) When is an advertisement for invitation to
tender used?
 Invitation to tender
• INVITATION TO TENDER for the PROPOSED CONSTRUCTION OF ONE BLOCK
OF 22-STOREY OFFICE BUILDING ON LOT 222, JALAN KIA PENG, KL

• To :
• Date:
• Dear Sirs

• You are invited to tender for the above contract.

• Tender documentations can be collected at the office of JUBM, 21, Jalan Semantan,
Damansara Heights from 21-27, January 2010 between the hours of0 9:00-17:00hr.
A tender documentation fees of RM2,000 in the form of a bank draft (payable to A&W
Properties Bhd) shall be made upon the collection of the tender documents.
• You are required to hold all information pertaining to this contract confidential and to
limit the dissemination of information within your organisation on a need-to-know
basis.
• Your tender must be received by noon on 10 February 2010, which date will be the
Tender Date in the attached Invitation to Tender.

• Yours sincerely,

• _______________
• Contracts Manager
• A&W Properties Bhd
 b. Collection, pricing and
submission of tender
• Contractors shall from a stated date collect the
tender documents from the place named in the
invitation.
• The contractor is usually given a fixed period of
time for him to work out the price and other
requirements.
• The tenderer shall lodge the completed tender at
the place stated and not later than the date and
time for closing of tender.
• The tenderer is often required to deposit an
earnest money in the form of bank draft/banker’s
cheque.
 c. Opening of tender
• The tenders are opened in the presence of the Client, Consultants,
Quantity Surveyors(QS) and sometimes the tenderers as well.
• The following records will be taken during the opening of the
tenders:
- Time and place of opening of tenders,
- Persons present in the opening of tenders,
- Tender sum for each tender,
- Period for completion, if this is to be submitted by the tenderer,
- Tender sum and period for completion of alternative tender, if any,
- Notes on any divergent points submitted by the tenderer,

• After all the tenders had been opened and all the salient information
recorded, the parties present will sign on the tender records form.
The priced tender documents will then be retained by the Quantity
Surveyors(QS) for him to scrutinize the tenders for any errors,
inconsistencies and deviations, and to prepare a tender report.
d. Tender report and recommendation of
short-listed tenderers
• The tender report is normally prepared by the Quantity
Surveyor(QS). The report will contain the following:
(i) Comparision of tender sums among the tenderers;
(ii) Comparision of financial soundness, technical
competency, experience on the type of project, track
records of current and completed projects,
organizational strength and equipment owned by the
tenderers, etc;
(iii) Highlight of any abnormalities in pricing;
(iv) Notes on any non-compliance or deviation; and
(v) Recommendation of the tenderers to be interviewed.
e. Interview of short-listed tenderers
• Notices are sent to tenderers short-listed for interview.
Good practice to include in the notice the following:
(i) Any important information required of the tenderer.
(ii) A query list on items that need clarification or
confirmation from the tenderer.
(iii) A list of errors in computation.
(iv) A list of deviations or abnormalities in the tender.

• Other matters that may be discussed

- tenderer’s proposed solutions to specific problems,
- his proposed method of working or
- his proposed programme.

• All discussions and agreement reached during the

interview are to be confirmed by way of a letter to the
contractor selected for the job.
f. Recommendation for selection of
contractor
• After the tender interviews, the Architect or the
quantity surveyor will prepare a report and made
recommendation on the contractor to be
selected for the job.
• The Architect/S.O shall, on behalf of the client,
sent a letter to the successful tenderer informing
him of the award of the job (see Sample g.1).
• It is good practice to sent letters to the
unsuccessful tenderers informing them of the
results and to thank them for their participation in
the tender.
g. Award of Tender (Acceptance of Tender)
• Sample g.1
• Our Ref: __________

• To (Tenderer’s Address)
• Date:
• Dear Sir/Madam,
• Acceptance of Tender for the
Proposed______________________________

• With reference to the above, we on behalf of A&W Properties Bhd are pleased to
inform you that your tender for a Contract Sum of RM…………. submitted on (date)
for the above project has been accepted. You are required to commence work on site
by 01 March 2007 and complete the whole works within 20 months therefrom.

• Before you can commence any work on site, you are required to submit to us the
following documents to us for our approval and acceptance:
 Mobilisation Planning and
Documentation
• Upon the award of tender, the contractor
has to immediately plan for mobilization of
his resources on site before the
commencement of any actual construction
work.
• This period is normally very short; about
two to three weeks, depending on the size,
complexity and urgency of the project.
Mobilisation planning involves the following:
• Pre-start (site possession) meeting among the
client, contractor and the consultants to establish
proper working arrangements, roles and
responsibilities, lines of communication, and to
agree to procedures to be followed throughout the
contract period.
• Health and safety plan by the contractor
• Project implementation plan which shall include
the method statement, work programme, resource
allocation, material delivery schedules and
equipment utilization plan.
• Cost control plan whereby the contractor allocate
budgets to various elements of the work against
which cost incurred can be monitored and
checked against the budgets as the work
progresses.
• Site layout plan
• Contractor’s site organization structure with
clearly defined positions, roles and
responsibilities, and lines of
communication.
• Coordination plan among nominated,
specialist sub-contractors and domestic
sub-contractors, including meetings to be
held among them.
• Environmental management plan in the
case of a project site exceeding 25 acres.
 Documents Required before
Comencement of work
• Performance bond, usually amounting to 5% of
the contract sum
• Insurances- ContrCpmpensation actor’s All
Risks (CAR),Workmen Compensation
(WORKCOM)
• Payment of levy to CIDB and certificate of proof
of payment.
• Adequate sets of working drawings(construction
drawings) and schedules.
• Master Work Program
• It would be preferable if the contract documents
could be signed and formalized before the
commencement of work, but this is rarely so in
practice.