Preparing tender documents / packages is required to unify response formats from contractors and subcontractors. This is required as every contractor will have their standard format which they will deploy to submit a quotation. Their quotations will be based on certain parameters which are open to interpretation and can be ambiguous. Furthermore, it becomes difficult to compare quotations for best price when the contractors have interpreted the tender differently, omissions and assumptions. It is therefore paramount to provide all the subcontractors with the same exact information, the more detail the better, and clearly define the deliverables. This could be in the form of bill of quantities or an activity schedule. Irrespective of which format you deploy, the detail will stipulated the response. This removes the requirements for assumptions and captures any unnecessary omissions.

The traditional tender package will usually include a set of drawings, specifications, activity schedule / bill of quantities, a programme, and a form of contract (standard forms of contract are preferred as they are tried and tested). Within the drawings, you can define the works detail, scale of measure, and the site boundary. This document is the most simplest and more regularly used on site. Therefore, keeping it simple and concise yet detailed will be vital bearing in mind the site agent, supervisors, foreman’s and general operatives will refer to this document on a daily basis. The estimator will usually do a take-off from the drawings. This is not only to provide a quotation, but also to compare against the activity schedule / bill of quantities provided part of the tender package. (Explained in more detail in other courses).

Secondary to this document, is the specification. This document will usually elaborate on the drawings. Standard specifications, construction methods, policies and procedures will be stipulated within this document. This document will also cover health & safety, environmental and quality aspects expected on site. It is best to ensure that the specifications do not conflict with the drawings. Framework contracts, will rarely refer back to this document due to experience and knowledge. However, certain specifications may be job specific and not standard so this will then become a crucial document when compiling the quotation.

When compiling the bill of quantities / activity schedule, it is useful to keep the document simple and sequential, so one activity leads to another activity. Within the Highways industry for example, you have series 100 Prelims to 3000 Landscaping which create the template for the activity schedule. Both bill of quantities / activity schedule are extrapolated from the design and specifications via the take-off process i.e. linear meters of cables, ducts etc itemised within. With regards to the bill of quantities, you would create a list of deliverables and list the units of measure with quantity, keeping the rate blank. In both the above examples, the contractors or subcontractor would simply fill in the blanks whether it is an activity or a bill of quantity, the inputted rate would be the deciding factor of the total value of the scheme. This makes it very ease to compare all the tenders.

The programme will compiled by a planner who appreciates productivity within the industry. The programme will be used to link activities and create a critical path. Individual contractors will know and prepare for when the associated activities are to commence and complete. They can manage their resources to accommodate the programme. They can also offer amendments to the programme should they deem the allowed durations to be impractical. With the tender programme, all the subcontractors will align with the same commitments.

A standard form of contract will constitute as one of the documents provided in the tender package. Within this contract, the terms and conditions will be stipulated, liabilities will be agreed and payment terms will be finalised. When all contractors agree to the same terms, the client will assign the same risk and liability to the contract. A standard form of contract is also a reasonable approach to final agreements and standardised expectations. The most common forms of contracts are NEC, JCT, FIDIC, ICE and MF1, which are commonly used across the UK. These contracts are generally industry specific. For example, JCT is used generally for building development works, NEC for infrastructure works, and ICE for civil engineering works.

There is a pre-qualification process that takes place when selecting preferred suppliers for specific activities. Within this selection process, the contractors are required to provide accreditations (ISO, Chase & OHSAS), insurances, guarantees and business financial checks are assessed and updated via these documents. Further to this, the client may also request CV’s for key personal. Once the above documents have been submitted, reviewed and approved, the contractors / subcontractors will be added to the preferred suppliers list. Following this process, the suppliers will receive the tender documentation as mentioned above for prospective schemes. An optimal number of quotations are required to make the selection process more effective and demonstrate best value for money.

Pros:

• Easy to compare quotations
• Quick process to receiving quotations back
• All contractors will read the same documents and should provide a comparative quote
• These documents will later form part of the contract and be upgraded to live documents
• Demonstrate best value for money by receiving more than one quotation
• The bill of quantities / activity schedule will create payment milestones

Cons:

• The pre-tendering process will take longer
• Minimise value engineering
• Risks associated with discrepancies and ambiguities within the tender documents will remain with the client
• Increase or decrease in measure will create uncertainties to target value#
• Not all subcontractors will agree to client terms which will deter them to provide a quotation
• Contractors can take advantages of design errors