21034437 AQS 2151 Pre Contract Administration for Quantity Surveyors Copy

7/27/2019 21034437 AQS 2151 Pre Contract Administration for Quantity Surveyors Copy

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AQS 2151Pre-Contract Administration forQuantity Surveyors

Tendering:Methods of TenderingInvitation & receipt of tendersProcesses & procedures in the public & private sectors


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Methods of Tendering

The objective of tendering is to select a suitable

contractor at an appropriate time and obtain from

him an acceptable offer upon which a contract

can be let.

Generally there three (3) types of tendering used:

Open Tendering

Selective Tendering

Negotiated Tender


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Methods of TenderingOpen tender

Open to all eligible contractors

Invitation to tenders through the mass media (e.g. general

press)

Maximum competitionA tender document fee is required from each contractor

Selective tender

As the name implies, a list of selected tenderers is produced

as a basis for this method of obtaining tenders

The design team together with Client will normally determinewhich contractors will be invited to tender.

Design team will take into account contractors track records,

business record, financial stability and capacity to carry out

project


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Methods of TenderingNegotiated Tender

Series of negotiation will take place between the client and

selected contractor. Normally under design and build

procurement.


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Methods of TenderingOPEN TENDERING

Advantages of Open Tendering

No favouritism

Introduction to new firms

Maximum competition

Disadvantages of Open Tendering

Is the lowest firm capable?

Is it financially secure?

Experience in tender submission?

Cost of tendering increased as number of tenderer increases


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Methods of TenderingSELECTIVE TENDERING

Advantages of Selective Tendering

Only capable firms are invited to tender

Reduces the overall cost of tendering

Disadvantages of Selective Tendering

Higher tender prices

Possible charges of favoritism


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VALUE OF WORKSWorks < RM 10 million

Invited for local Companies with 100%

bumiputeraWorks RM 10 million RM 25 million

Invited for local Companies with 100%bumiputera OR Public Listed companies on

BSKL with foreign shares not more than30% and Managing Director and workersare 100% local.


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VALUE OF WORKSWorks > RM 25 million

Invited for local Companies with 100%

bumiputeraLocal companies listed on BSKL OR JVcompanies, with foreign equity not morethan 49% and majority of Board ofDirectors, Management and workers arelocal.


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Invitation & Receipt of TendersTender advertisement

Local tender - minimum: in one main

BM daily

International tender - in one main BMdaily and one main English daily, and

distribute to foreign embassies


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Invitation & Receipt of TendersInformation in tender advertisement:

name of department calling the tendertitle of project

type of tendercontractors qualifications

Class head and sub-head (PKK & CIDB)

place, date & time to purchase tender documentplace, date & time to submit tender documentprice of tender documentsite visit (if any)(See sample of tender advertisement)


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Invitation & Receipt of TendersSubmission of tender:

submit the priced tender document to and at thetime as stated in the tender advertisement

closing time is normally no later than 12 noon

Late Submission:

Late not more than 30 minutes. Can be accepted.(Subject to approval)


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PKK ClassificationsClass Limits on Value of Projects

A > RM 10,000,000

B RM5,000,001 RM10,000,000

C RM2,000,001 RM5,000,000

D RM500,001 RM2,000,000

E RM200,001 RM500,000

F


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CIDB ClassificationsGrade Limits

G7 No Limit

G6 Not exceeding RM 10,000,000G5 Not exceeding RM 5,000,000

G4 Not exceeding RM 3,000,000

G3 Not exceeding RM 1,000,000G2 Not exceeding RM 500,000

G1 Not exceeding RM 100,000


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Special Approval For TenderPKK has the power to consider andapprove any special request from

contractors to participate in tenders forwhich they are not eligible to participatedue to their registration of classes and

experiences

Tendering Procedures


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Tendering Procedures(with specific reference to the Public Sector)

Why public sector?

Largest single owner/developer

one-third of total construction

procedures are more structured and formalised (e.g.governed by factors such as source of funding and type,

nature and estimated cost of project)

basis for good practice


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Category of ProcurementWorks

infrastructure, building & engineering, M&E

Goods

raw materials, intermediate and finishedgoods

Services

manpower, consultants and expertise


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Types of Procurement

Direct Purchase

goods & services up to RM10,000 - directly from anyknown suppliers

goods & services between RM10,000 - RM50,000 - fromsuppliers registered with MOF

works up to RM50,000 - indent to a contractor registered

with CIDB and PKK

Quotation

works, gods and services between RM50,000 RM200,000

may be invited through registered post, by hand or posted

on designated notice board

Tender

next slide..


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Project >RM 200,000 to be let on opentendering (there are exceptions)

Selective tendering / negotiation allowed

in specific circumstances (e.g. urgent orsole supplier) - prior approval from MOF


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Issuance of Tender DocumentIssue from the office that prepares Tender Documenti.e. PWD offices

Before the issuance. The office shall ascertain

That only authorized representatives of contractors areallowed to take the document and they should produceevidence or credentials of their authorities

That they have to show their Bumiputra status

That a verification of status shall be made to ensure that it

is still valid on that date

The issuing officer should record names, addressesand classes of registration of contractors



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Mandatory requirement for all tenders forworks funded by the govt. own source offund to be opened to Malaysian contractingfirms only

The exceptions:

incapability of Malaysian contractors to

undertake certain worksfor civil engineering works valued >RM50million each


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Tender Depositlocal tender - no tender deposit

international tender - tender deposit

varies between RM50,000 - RM1 million

Tender Period

local tender - 21 days

international tender - 56 days


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Tender Validity Period90 days (may be extended)

withdrawal after closing date - disciplinaryaction by PKK and/or agency concerned

1st Offence : 2 years suspension from participatingin government tenders

2nd Offence: 5 years

3rd Offence: Cancellation of registration

Shareholders : blacklisted

Board of Directors : blacklisted


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Next

Opening of tenders

Evaluation

Acceptance

Documents

21034437 AQS 2151 Pre Contract Administration for Quantity Surveyors Copy