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This document discusses the tendering process for contractors submitting bids for construction projects. It explains that contractors must first be asked by a client to submit a tender price. Clients can elicit tenders through either competitive or open tendering. For competitive tendering, selected contractors are invited to bid, while open tendering allows any contractor to bid but is rarely used due to risk. The document also outlines the types of information provided to contractors in a tender, such as project details, the form of contract, and considerations like liquidated damages and insurance requirements.
This document discusses the tendering process for contractors submitting bids for construction projects. It explains that contractors must first be asked by a client to submit a tender price. Clients can elicit tenders through either competitive or open tendering. For competitive tendering, selected contractors are invited to bid, while open tendering allows any contractor to bid but is rarely used due to risk. The document also outlines the types of information provided to contractors in a tender, such as project details, the form of contract, and considerations like liquidated damages and insurance requirements.
This document discusses the tendering process for contractors submitting bids for construction projects. It explains that contractors must first be asked by a client to submit a tender price. Clients can elicit tenders through either competitive or open tendering. For competitive tendering, selected contractors are invited to bid, while open tendering allows any contractor to bid but is rarely used due to risk. The document also outlines the types of information provided to contractors in a tender, such as project details, the form of contract, and considerations like liquidated damages and insurance requirements.
much our resource costs are likely to be, and what our tender price should be, we need to actually have been asked by a client to submit a tender price. The purpose of any tendering procedure is to select a suitable contractor, at a time appropriate to the circumstances, and obtain from them at the proper time, an acceptable tender of offer upon which a contract can be let. Lara Tookey
There are a number of ways in which a
client can ask a contractor to tender. Information may be issued to the contractor by: Letter containing a description of work Drawings and Specifications Schedules of Rates Schedules of Quantities
Lara Tookey
The method of providing information is
linked to the way in which the price (tender) is required this is usually referred to as the procurement route. This is where the client determines the way in which the information will be issued, the conditions of contract which will govern the contract and the way in which the price will be obtained (form of tender). Lara Tookey
Forms of Tender can include:
Fixed Price Measurement based, i.e. Schedule of Quantities / Schedule of Rates Cost reimbursement Design and Build Management or Construction Management contracts
Lara Tookey
We should also note at this point that
clients can elicit tenders from contractors either through: Competitive Tendering Most commonly used Ensures commercial competition And best value for client Selected contractors invited to tender Ensures accountability (Local Authorities)
Open Tendering Essentially free for all Very rarely used High risk to both client and contractors
Lara Tookey
Whatever the method, the
same information is provided: Specific Project Information:
location of project and description of works
date for commencement of the works date for completion details of phasing or sectional completion (if required) access problems operational space restrictions ground conditions health & safety issues Lara Tookey
Form of Contract & Contract
Particulars:
form of contract to be used
provisions for liquidated and ascertained damages any proposed amendments to standard forms of contract details of interim payments retention considerations bonding requirements details of insurances departures from Standard Method of Measurement provisions for fluctuations (if lengthy contract period) Lara Tookey
Obviously the amount of information and
the format in which it is provided will depend on the size, nature and complexity of the project being undertaken. What is important to note, however, is that there are a number of important items that the contractor needs to be aware of and which will inform their decision.