ESTIMATING

Name: Jeffery Tan Chin Chung

Deric Lee Kai Yang
Chew Jun Ming

Question 2
You are working for a house builder at Kuala Lumpur. Your
company has recently received an invitation to tender a low
cost apartment in Kajang, Selangor. You are required to
make a recommendation whether to accept or decline the
tender invitation. What are the 5 main factors you will
consider before making the recommendation? Explain how
these factors influence your decision.

SHOULD WE ACCEPT OR DECLINE

Preparing tenders
Can be time-consuming, cost money and tie up valuable
resources
The contract is not shortlisted, the money and time spent is
usually lost
Need to carefully evaluate whether or not a tender is worth
bidding for.

Key points to consider

Get hold of the bid documents and analyse them.

Make sure our company can match the technical, skill and
experience requirements.
How much will it cost to prepare the tender
Estimate the costs of fulfilling the contract and whether or not
our company make enough money to justify it.
Assess how the contract would affect other work and ability to
take on other new business.
We also need to consider how important the customer is to
your business. Is this a good potential client or one you don't
want to offend by not tendering.

SHOULD WE ACCEPT OR DECLINE?

Our company works as a house builder at Kuala Lumpur.

Recently received an invitation to tender a low cost
apartment in Kajang, Selangor.
The technical, skill and experience match our
requirements?
Location?

D N
A N T IO
N
O DA
TI N
UA M E
AL M
EV CO
RE

CONTRACTOR QS

ACCEPT
DECLINE
CONTRACTOR
LOW COST APARTMENT IN
KAJANG

Main Factors to Consider

Reputation of the client- Reputation of the client

is one of the very important factors in the
industry as it will decide the trustworthiness of
that company

Project Size- Project size determines the cost of

the building

Main Factors to Consider

Availability of time for tendering- The normal time

for tendering project is three to four weeks

Current Workload- This is one of the main factor

because it decides based on the current situation

Experience- This depends to how long the company

started up and how many projects taken before

No. of CIDB registered Contractors

Standard Industrial Classification

Grade 1

33,280

41,416

Micro sized enterprise

Grade 2

8,136

Grade 3

10,961

13,632

Grade 4

2,671

Small sized
enterprise

Grade 5

3,831

5,322

Grade 6

1,491

Medium sized
enterprise

Grade 7

4,422

4,422

Large sized enterprise

Table 1: Classification of Contractors by CIDB

Grade

Size

Total (Up to 2010)

G7

Large

342

G6

Medium

44

G5

Medium

54

G4

Small

29

G3

Small

72

G2

Micro

24

G1

Micro

32

Table 2: Classification of IBS Contractors by CIDB