Tender Returns and Analysis Flashcards
What is a form of tender?
A FoT is formal acknowledgement that the tenderer understands and accepts the terms and conditions of the tender documents and any requirements that are stipulated. The contractor usually signs and returns it within their prepared tender submission.
What information is usually included within a Form of Tender?
Tender Sum
The date in which the price remains valid
Construction period (programme)
Confirmation of the tender being genuine and bona fide
Tenderer details and signature
Acceptance of Ts&Cs
Apart from contractors tender sum, what else might be requested that the contractor should provide?
Relevant experience
Project team
Programme
H&S information
Logistics plans
Social Value policy
Once tenders have been submitted, what should be examined for compliance with the invitation to tender and tender instructions?
Arithmatical errors
Pricng errors (elements/items not priced)
Pricing methods (e.g. evidence of front loading)
Compare contractors proposals (CPs) to the ERs (D&B only)
Check that form of tender is complete and signed
What is the process for opening tenders
A tender opening form should be used
What is front loading
Suppliers may front-load costs (or prices in bids) in order to maximise their revenue early in a project by assigning overstated values to the preliminary elements of the work. For example, a contractor might front-load costs for preliminary construction work such as services diversions, demolition, setting out, groundworks, piling, and so on.
What happens if a tender is submitted late
Public Sector project - The documents should not be accepted.
Private Sector project - The matter should be discussed with the client to understand if they would like to accept, however the safest option is not to consider (because of fraud, collusion, bid rigging etc).
What is the danger of accepting a very low tender?
Contractor may be trying to ‘buy’ the project with a view to recovering costs with variations post contract.
Could indicate contractors poor financial situation/cashflow position and is eager to win work at any cost.
Areas of the project may not be priced accurately, creating potential for an adversarial relationship with client team post contract.
How do you deal with qualifications within a tender submission?
Procedures associated with qualifications should be outlined in the tender instructions.
If the qualifications are unauthorised, it might invalidate the tender (leading to DQ).
How would you deal with errors identified within the tender
As per JCT tendering practice note:
Alternative 1 - Tenderer should be given the details of the errors and afforded to opportunity to either confirm or withdraw from the tender
Alternative 2 - Tenderer should be given the opportunity to confirm their offer or amend it to correct genuine errors
What would you do if you believe the contractor submitting the tender was in financial difficulty?
As part of the evaluation process (normally in the PQQ), a financial check would be done on the contractor.
Consider a performance bond.
Consider a PCG
Raise your concern with the client
On what grounds would you advise the client to re-tender the project?
Not enough tenders returned.
The tendering procedure is comprimised somehow
If the required cost level is not achieved and its believe by re-tendering the cost level could be achieved
Design changes significantly changed the overall design that was originally tendered
How would you deal with front loading
Normally not a pricing error but a pricing method.
Request that the contractor remove the fornt loading form their tender, if they refuse, disqualify them
What is included within a tender opening form
The tender price
Proposed programme in weeks
Key comments/exclusions
Alternative tender offers
Confirmation that all docs have been submitted or not
How do you review tenders?
Tender opening form
Check for errors and conflicts
Raise tender queries and conflicts in information
Normalise the tenders
