TENDERING #3 Tendering (CONS6811) Lara Tookey

Transcription

1 TENDERING #3

2 Recap on Session 2

3 Session THREE Stage 1 Initial actions & appraisals: What type of tendering methods are there? What does qualification mean? Do you (the MC) bid for every job? Do you (the MC) price every job the same? Is planning important prior to starting your tender?

4 Client (S01) Main Contractors Subcontractors (S02)

5 What is the purpose of tendering?

6 1. Find a suitable contractor To be selected at a time which is suited to the circumstances of the project. 2. Obtain a price from the relevant contractor at an appropriate time.

7 ACTIVITY (10 MIN) Working with your peers Outline the various tendering methods that can be used to obtain a competitive tender. What are the benefits and limitations of each? Which one, as a MC, would you prefer to work with?

8 What type of tendering methods are there? Open Selective Single-stage Two-stage Negotiated

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10 Request for Proposal Request for Tender Request for Expression of Interest Tender Tender Evaluation MC selection Negotiation. Contract Awarded

11 EOI / RF PT ~ Contractual Obligations Customer makes an OFFER to the MC to tender Customer s requirements & perception 1. Needs 2. Specifications 3. Objectives 4. Performance Contractor offering Products Resources 1. People 2. Technology 3. Skills 4. Facilities MC ACCEPTS to tender

12 Case law in NZ holds that TENDERING CONTRACTS exist between the principal and each tenderer. It is therefore essential that a proper procedure be set up for calling, receiving and examining tenders. All interested parties should be fully aware of how the system operates.

13 Case Law: Tenderers Contracts Pratt Contractors Ltd v Palmerston North City Council [ (Dec 1984) CP76/92] It was held that In selecting a particular tenderer, the Council is in my view bound by the terms it has itself imposed, as well as the requirements of fairness and equity which may well have an application.

14 Weebly / Contractors Perspective / Stage 1 Expression of Interest - East & West Foreshore Borrow Pit Excavations Statement for Expression of Interest for Engineering Feasibility Study Registration of Interest - Transmission Gully PPP Housing New Zealand Request for Proposals Request for Tender - Contract for Professional Services

15 ACTIVITY (20 MIN) Working with your peers What does each one tell us? What, if any, are the similarities between the various invitations. Are there are issues that concern you?

16 Format of an ideal EOI / Tender Notice Name of Project. Name & Address of the Company requesting the tender. Location of site. Approximate estimated cost of work. Period of completion. Date on which the Tender Document is available for collection.

17 Date and time up to which tender documents can be obtained. The cost of tender documents. The date and time for submission of tenders / tender opening. Specifications. Eligibility Criterion.

18 Scope of Project Define the aims and scope of the project. What are the needs / interests of the Principal Review the Procurement Strategy the aims etc should be embodied therein.

19 Project Objectives The Client must take particular care in defining these. It is a good idea to include a brief statement of these at the beginning of the tender documents.

20 EOI / RF PT Purpose EOI / RF PT is the usual documentary mechanism used to seek tenders from service providers.

21 EOI / RF PT Purpose It informs potential tenderers of the: Purpose and nature & contracting processes; Terms & conditions & any associated contract(s); Information required for evaluating a tender; and Process & criteria (and broad weightings if appropriate) to be used in the evaluation.

22 EOI / RF PT Content Usually include the following components: Conditions of tendering Tender form and/or pricing schedule(s) Schedules of information Standard conditions of contract Special conditions of contract Technical specifications Drawings (where applicable)

23 EOI / RF PT Content cont. Must include A clear and unambiguous description of the proposed procurement process, including the: Proposed contract conditions Work, assets and services to be delivered through the contract; Information to be lodged in the tender; Tendering process, including the basis for evaluating tenders; and Decisions that will flow from the tendering process.

24 Remember: The clearer you are able to articulate what you want, the better, more informed EOI / RF PT you will receive.

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27 Prepare tender enquiry form Do you wish to be considered? No do nothing Yes submit the form / document as required.

28 Meridian North Bank Tunnel Project Pg 9: Submission procedure

29 Meridian North Bank Tunnel Project Pg 9: Information to be submitted EOI form provided Supporting information to address the following topics: Approach to project Management Technical skills, track record & relevant experience Resources

30 Meridian North Bank Tunnel Project Pg 10: Evaluation

31 Prequalification questionnaires NZTA Pre-qualification application link

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33 Invitation to tender Assign proposals manager / operations director Assign project manager Decision to tender Yes Form project team No Planning activities Initiate tendering process Estimating activities Establish overall strategy & framework for bid Programme Cost Estimate Estimator s report Tender adjudication Risk & opportunities analysis Submission Lost Records Won Contract / negotiate

34 M. Marzouk, M., & Moselhi, O. (2003). A decision support tool for construction bidding. Construction Innovation, 3, Contractors frequently face two main questions in the bidding process: 1) whether to bid or not, and 2) what markup to allocate, if they decide to bid. The first question can be addressed based on project characteristics, market conditions, and current workload of contractors. The second will be dealt with later.

35 ACTIVITY (15 MIN) Working with your peers What questions do you think you (the MC) should ask before a decision to bid is made?

36 Is sufficient time being allowed for the proper preparation of an estimate & subsequent tender? What are the Conditions of Contract? Are the operating conditions clearly defined? Stages in work; timing; access to site etc. What is the value & extent of project?

37 Is the design well developed or hastily prepared? Have standard methods of measurement been used? If not, which method has been used? If Schedules of Quantities have not been prepared, will extra time be allowed? If quantities have to be taken off, is there sufficient detail?

38 Nature of job & overall corporate objectives; Present construction workload; Future commitments; Present estimating workload; Previous experience with: Similar type of work; Consultants; Client

39 Availability of manpower, supervisory staff; plant, machinery, material; financial resources of contractor; Market conditions; General economic & political situation & outlook;

40 Description of tender docs; Date of issue; Tender period available; Acceptance period; Notification of unsuccessful tenderers. Has the project been advertised before (tenders invited?) Latest date for receipt of acceptance of invitation to tender. Tender period.

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42 Do you price every job the same?

43 Mark-up allocation Lowest price Repeat work Boom / Bust market conditions

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45 ACTIVITY (10 MIN) Working with your peers What do you, the MC, need to do in order to submit a competitive tender? Identify at least seven activities that you will need to undertake. What impact does this have on your tender submission?

46 Estimate Programme: Latest date for dispatch of enquiries for: Materials, plant & sub-contracted items Latest date for receipt of quotations Measurement of quantities Visits to consultants (optional)

47 Estimate Programme: Site visits Finalization of method statement Completion of measurement Completion of pricing Adjudication meeting Submission of tender.

48 ACTIVITY (10 MIN) Working with your peers Consider what difficulties the Client and the MC could experience due to inadequate tender information being made available.

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50 YOUR ASSESSMENTS

51 Session FOUR Stage 2 Project appreciation & enquiries Introduction to subcontracting Why does a MC need subbies? How is the work split between the various parties?