Standard Forms of Building Contract 1998 Editions

Series 2

Practice Main Contract Tendering

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Practice Note 6

Main Contract Tendering

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Contents

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Introduction page 2 Scope and Contents Use with JCT Forms Scotland and Northern Ireland Electronic Tendering Public Procurement

The Preliminary Enquiry The documents The Project Information Schedule Basis of assessment and the Questionnaire

n- Timing

The Invitation to Tender Documents to be issued Completing the Forms

The lender

Withdrawal and Lapse

The Alternativ

el Form of Preliminary Enquiry for Main Contract Works

in Contract Works

I Form of Tender for Main Contract Works

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This Prakice Note is intended to be a successor to the Code of Procedure for Single Stage Selective Tendering, published by the former National Joint Consultative Committee for Building (NJCC). It includes much of the material from thst Code and also from the NJCC Codes relating to Two-Stage and to Design and Build Tendering. The Joint Contracts Tribunal Limited is grateful to the NJCC's constituent bodies for their permission to include that material.

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Introduction. . . . , . . . . . . I . . . . a.

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Scope and Contents

1 JCT recognises that there is a need for model forms of tender for use in obtaining tenders for main contracts. This Practice Note contains JCT Model Forms and brief notes on their use.

2 The Practice Note is primarily concerned with the m procedure most common in the United Kingdom const stage tendering by a selected list of contractors for responsibility remains wholly or primarily with professional team, and this is reflected in the Model

3 The concluding section o differences between the single stage proce procedure frequently adop prior to complete develop footnotes to the Model Forms as to desirable to deal with the Open tendering and “neg scope of the Practice Note.

Against that background, the Pr preliminary enquiry/pre-qu listing of potential contract the tender itself.

e necessary or

4 del Forms cover (a) the ly follow a preliminary ation to tender; and (c)

Use with JCT For &)A\\\” 5 The Model Fo n both the public and the private

sion of the JCT Standard Form of ontractor‘s Design), with the JCT

s forms and also with the JCT Measured ed for use in conjunction with Works

anagement Contract, Trade Contracts under entation or tenders by prospective actors. In each of these latter cases

JCT Domestic Sub-Contract (DSC), the JCT invitation to tender and a form of

rn Ireland

and practice in particular differ in certain respects from law and e remainder of the United Kingdom but, with the assistance of the ing Contract Committee (SBCC), itself a member of the JCT, notes luded to indicate the principal differences. In terms of forms used ng process, practices appear to be more diverse in Scotland than is intended that the Model Forms in this Practice Note should

serve as a general guide where the contract is to be governed by aw and/or to use an SBCC Scottish Building Contract (‘SBC‘)

daptation or equivalent of the relevant JCT Form of Contract.

Accordingly, references in the Model Forms to a JCT Form of Contract or Warranty should in such cases be adapted to refer to the relevant SBC or SBCC Warranty.

PN6 17/02)

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Similarly, in the case of contracts governed by the law of Northern Ireland, such references should be extended where relevant to include the appropriate Northern Ireland Adaptation Schedule, published by the Royal Society of Ulster Architects.

Electronic Tendering

In recent years there has been a substantial -and welcome - incrctase in the use of electronic tendering procedures. These offer obvious advantages in terms both of speed and of reductions in the cost of produci documentation; use of such procedures will no doubt be

In the interests of simplicity, tendering practice and this Practice Note generally by reference to a ha However, this Practice Note applies equally to password or other protections are built into a sealed envelope or otherwise to safeguar and other information, the underlying p practice remain essentially the same. Th less than for hardcopy.

Public Procurement

In the case of Directives and UK must continue to requirements of

within the scope of EU and their consultants

and the procedural

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The Preliminary Enquiry

The documents

12 Following preparation of an initial list of potential contractors, and in order to establish which of them are both suited to the project and willing to bid, each contractor should be sent a letter substantially in the form included in the JCT Model Form of Preliminary Enquiry, accompanied by a Project Information Schedule and a Questionnaire. This Model Form enqui for each of those other two documents are set out in A

The Model Form of Preliminary Enquiry envisages from contractors within 10 days of the date of its ori of contractors interested in tendering, completed Questionnaire. A longer perio

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The Project Information Schedule

To encourage a positive and time contractors as possible, it is im should be duly completed.

for the issue of

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cide whether or not to

0 the JCTFor

f Contract that will apply;

executed as a deed or as a simple

Schedule’should also have annexed to it the form of Particulars applicable to the relevant JCT Form,

racticable. Where the form of Contract is one that does

Footnote la1 . Not applicable to contracts governed by the law of Scotland (as to which see the SBCC ‘Note to Users: Attestation‘).

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Basis of assessment and the Questionnaire

The Preliminary Enquiry, in the letter itself andlor in the Project Information Schedule, should indicate whether the tender will be assessed solely on the price for the works or on some other basis. If the employer requires alternative tenders, the basis on which each of these is to be made should be stated clearly.

Where criteria other than price are to be used in the assessment of tenders (as opposed merely to being requirements for pre-qualification), those criteria must be set out in detail and the relative weighting of specified qualitieskriteria should be stated. For

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will of course form a non-price criterion and Similarly, where tenderers are required to put f

must also be stated.

need to provide in his tender relat simplify the process as far as pract such information as contractors can Preliminary Enquiry stage.

on the responses to the Questionnaire, it

Tender. However, ent is to be made in respect l of matters other intention of maki letter and/or the

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Timing (C flv I

prising th& Project Information Schedule, er should generally be sent out 4 to 6 weeks

ue of tender documents. Occasionally, a longer a case (or if there is any delay in the issue of

e contractors who gave a preliminary indication of their , shortly before the issue of tender documents, be asked

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PN6 (7102)

to do so.

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The Invitation to Tender 2

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Documents to be issued

After a shortlist of tenderers has been drawn up on the basis of responses to the Preliminary Enquiry and Questionnaire, then, as soon as the other tender documents are available for release (that is, the drawings and bills of quantities or approximate quantities or, where appropriate, specifications, schedules of work and/or employer's requirements), these should be i with a Form of Invitation to Tender (see Appendix Appendix C). Separate Forms of Tender should be offer sought and each Form of Tender should identi to which it relates.

24 Where documents are issued in hardcopy f remains good practice to send these docu separate envelopes, each with an appropr sought and also for priced documents wher The envelope for priced documents should

Completing the Forms

Before the issue to tender or his designated consult

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n be viewed; and

the arrangements and procedures with respect to priced documents. . .

If the employer has fixed a date or period for completion of the Works, that date or period should also be inserted in the Form of Tender; in cases where it is for the contractor to state his requirements as to time, appropriate adjustments should be made. [cl

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27 The latest time and date for submission of bids should be stated on the face of the Form of Tender as well as on the Invitation to Tender because, during the bidding process, the Form of Tender often becomes separated from the Invitation to Tender. The Model Form of Tender is expressed to remain open for acceptance for a 28 day period from that bid submission date. Id]

In Scotland, traditional practice is to examine (or to reserve the right to examine) the priced documents of the three lowest or best value tenderers, and hence also in many cases to require submission of the priced documents at the same time as the tender, but in a separate envelope (the "two envelope" system).

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As respects time and other non-price criteria, see paragraphs 18 to 21 above.

See paragraphs 33 and 34 below.

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The Tender

Tender Submission

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The tenderer should complete the Form or (where alternative tenders are requested) Forms of Tender as required and return it or them in due time in the envelope(s) sent out with the tender documents. Where priced documents are required to be submitted at the same time, these should accompany the tender in their separate envelope, marked with the tendering may be extended, as is stated in the Tender, but tenders received out of time should

Tender Compliance

To ensure fair competitive tendering, it is es are based on identical documents and attempt to vary that basis through qualific

If a tenderer considers that any of deficient, whether technically or i employer or the employer's des preferably not less than ten workin

If it is decided to amend the d should notify all tenderers a for tendering.

submitted , with no

equirements are ould inform the

as soon as possible, closing date for tenders.

or designated consultant ecessary, extend the period

A Qualified Tenders v0=\3 A tenderer wh nder should be given an opportunity to

roduce a compliant tender, but without uses to withdraw the qualification(s), the of a non-compliant tender is contrary to most cases it is impractical at that stage

be fair both to the client and to other

U n tenderers.

be withdrawn during the period for which it ain open for acceptance, save in the circumstances ve 1 below. Under English law, the traditional view is that thdraw an offer at any time before acceptance would be

if, for example, the tender was executed under seal or there was n from the employer for the implied promise not to withdraw it -

stances in which such consideration might be inferred. ish law, an undertaking to keep an offer open for a definite period d the offer cannot be recalled within that time; only where there is o keep an offer open for a specified time can it be recalled.

I lapse if not accepted within the specified period. If no period for acceptance is specified, the offer (unless permissibly withdrawn or recalled) will remain open for a reasonable period, but that gives rise to uncertainty and a period for acceptance should always be stated.

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Subsequent procedures

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Assessment on criteria other than price

35 , In cases where criteria other than price are to be taken into account and the assessment is one to determine best value, the evaluation of tenders against the non-price criteria should be completed prior to examination of the priced documents.

36 It should be stressed that where such wider criteria hav to the tender in question, whether in the Prelimin Tender or otherwise, the employer should abide by weighting or order of importance attributed to them To do otherwise would leave the by one or more of the unsucces and other tenders subject to the public proc constitute a breach of applicable legislation.

Once the assessment based on all the bills of quantity or other priced in the same way as one that is to documents should not be opened be

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Notifications to Tenderers . T,kV 38 It is important that II tenderers except

hat their tenders critical importance to

rd the employer's ences of errors found

the second and third lowest (or best ed that their tender was not the most

may be approached again if it is decided eir offer. They should also be notified as soon

for the three lowe have been unsucc

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value) tenderers favourable one

as a tender has I I

sful tenderers should I

t been successful, as

should not be used

actice dictates that hould not be attributed to individual bidders. I

icable public procurement requirements, it may be

meaningful lump sum figures. In terms of best value

Examination of Priced Documents and Errors

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42 The object of examining priced documents is to detect errors of computation in the tender before a contractor's offer is accepted but good tendering procedure demands that a contractor's tendered prices should not be altered without

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justification. When an examination of the priced documents reveals errors or a discrepancy between these prices and the overall tender figure, there are several methods of dealing with the situation before the offer is accepted. This Practice Note recommends use of one of the two straightforward procedures set out below. Under the first of them (Alternative 11, correction of the overall tender price is not permitted; under the second (Alternative 21, it is permitted.

The choice as to which Alternative is to apply must be made before contractors are invited to tender. This should be reflected by the appropriate deletion, both

of Invitation to Tender. in the Project information Schedule to the Preliminary

Alternative 1 may be inconsistent with a considered appropriate in two-stage Alternative 2 is open to abuse if not

The examination of the pr consideration should be made by the emplo whom should treat the documents as confi details of the tenderer's pricing be disc1 employer, the consultant(s) and the cont express permission of the tenderer.

If errors are found, they should in conjunction with the empl implement the procedure pro

act administrator who,

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errors and afforded an opportunity of confirming or withdrawn, the priced documents tenderer should be

in them, this tenderer (and a similar opportunity to

his tender, an endorsement should be added to o acceptance, indicating that all rates or prices contingencies, prime cost sums and provisional ments by the tenderer are to be considered as ame proportion as the corrected total of priced

short of his offer price (again excluding the items, oned above). Both parties to the contract should

r should be given an opportunity of confirming his offer or of to correct genuine errors. Should he elect to amend his offer with at the revised tender is no longer the lowest or best value (as the

as as a result become the lowest or best value

end his offer, an endorsement will be required er does amend his tender figure, and possibly

certain of the rates in his documents, he should either be allowed access to his original tender to insert and initial the correct details or be required to confirm

Footnote [e] Under Scottish procedure where the priced documents for the three lowest or best value tehders are examined, the processes will of course take place in parallel.

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all the alterations in a letter. If in the latter case his revised tender is then recommended for acceptance, a copy of the letter should be attached to the tender acceptance letter or form before that acceptance is sent or communicated in any way to the tenderer; the acceptance letter or form itself should record clearly that the amended tender figure and rates in the tenderer's letter are substituted for those in the original tender.

Recommendation

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I Two-Stage Tendering

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Two-stage tendering procedures are particularly suited to large or complex schemes where close collaboration with the contractor during the design stage will assist the search for the best solution for the employer in terms of cost, programme and design. The professional team is able to make use of the contractor's expertise when finalising the .design; the contractor has an opportunity to become involved in the planning and key decision-making process for the project and to build a working relationshi professional team.

In two-stage tendering, the first stage is a competiti usually based on tenderers' track records and on

partially-developed design information. This fir award but with the selection of a tenderer fo level of pricing produced in the first stage is second stage tender based on bills of quanti reflect the completed design.

In addition to price negotiation and fu the contractor and/or specialists, the such as methods of working; value 'buildability'; negotiation and a programming; and the procure

documentation ecialist sub-contractors. The contract award

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With modificatio the footnotes to the Model Forms,

The involveme ve contractor, the utilisation of his knowledge of ideas in the development of the final

it is essential that the discussion and negotiation of not be such as in any way to undermine the integrity of

that the time involved and lack of contractual certainty e inevitably carry certain risks. If the final price cannot be d tenderer, the employer may find that other acceptable taken on other commitments and much of the further

,wasted. It may be necessary to invite fresh first stage cting both the employer's schedule for completion of the neration; contractors' tendering costs may also become

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Appendix A

JCT Model Form of Preliminary Enquiry for Main Contract Works - Enquiry Letter

Notes on completion

Insert name and address of Contractor.

See Note 1 below.

Dear

Project title: Employer:

enclosed Project Information Schedul would let us know whether you wish

Should you wish to do so, please return it to us so as to arrive not I letter,

invited to tender, but

days from the closing date for the

ot wish to bid will not prejudice you that we put out to tender. Should you t subsequently find that you are

us as soon as possible.

llow tendering procedures consistent with JCT

of the invitation to tender that the tenderer should not at ification of the award of the contract disclose to or

, See Nota 2 below.

2 If a material element of Contractor's design is required, appropriate assurances shquld be given in the Preliminary Enquiry and/or in the Invitation to Tender as to limitations on use of the successful tenderer's designs (unless those limitations are expressly set out in the contract conditions) and as to the return end non-use of those submitted by unsuccessful tenderers.

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Appendix A

Project Information Schedule Notes on completion

[e) In the case of Design and Build tenders, it may be necessary to provide additional information on e.g. site considerations, planning requirements ani any proposed novation of agreements with the professional teem.

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Description of the works:

Location of the works:

Type@

Any of wor 'ng:

er' re uir ments or other matters affecting the order or methods

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weeks.

roposed number of tenderers:

*Delete or amend as necessaw

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. ... Project Information Schedule

lbl State which JCT Form (or, where appropriate, SEC or other form of contract) and which edition or revision end issue is to apply, end state also which (if any) Amendments end/or Supplements [including, for Northern Ireland, the NI Adaptetion Schedule) and which optional clauses ere to apply. /

PN6 17/02]

Names and Addresses of:

Employer: Tel No: Fax No: €-mail:

Employer's Consultants:

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Contract Particulars or equivalent items for insertion in [so far as completed,l* are set out in the

1 * to this Schedule.

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*Delete or amend a s necessary

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Project Information Schedule

[cl Not applicable in Scodend.

[dl Stete or summarize these requirements (so fer as known) either here or ir a further Annexure to this Schedule, with appropriate cross- reference. (See Note 1 below for a lid of points to be covered in relation to current JCTforms of collateral warrantv.)

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ICI The contract is to be executed as a deed/as a simple contract*

Particulars of any Listed, Named or Nominated Sub-Contractors and work intended to be the subject of such sub-contracts

(if different from those '

Annexure/Annexure 1 * to this

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"Delete or amend as necessary

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Project Information Schedule I - I

[e] Specify criteria for the tendeds) together with weighting or other means of assessment to be used. See also Note 2 below.

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The criterion for assessing the tender is price only*

The criteria for assessing the [alternative]* tender are:*

Price

[Time]

[Other criteria]

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n and correction of priced bills:

ivel/Alternative2* will apply

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*Delete or amend as necessary

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Project Information Schedule

Notes 1 Collateral Warranties

The statement or summary should cover the following points:

0 whether Collateral Warranties are required: - -

the Forms of the Collateral Warranties in each case (i.e. JCT MCWaF, MCWa/P&T, SCWa/F, SCWa/P&T, SBCC equivalents or other)

the identity or category of beneficiary end warrantor in each case an maximum number of warranties required from each warrantor

in the case of JCT Warranties to Purchasers and Tenants, whether is to apply and, if so, which of the alternative provisions is to appl

the identity of Consultants and Sub-Contractors for the pur

whether the copyright licence provisions are applicable

whether Professional Indemnity insurance cover is requi case - per claimkeries of claims from one event end/or in - for pollution and contamination and the period from the date of Practical Com

the limitation period for each warranty.

in favour of a Funder and/or Purchasers andlor Tenants from the Main Contractor, Sub-Contractors andor Professionals

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0 mum level in each

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(It is anticipated that these details and/or e due course be incorporated in the Append

hird party rights may in Forms of Contract.)

2 Additional Criteria

Approach , Resources . . - culture - on-site facilities - method stateme - personnel (general) - programme - personnel (designated) - mobilisation peri - financial

Sub-Contractors and Supply Chain - selection procedures and quality - supply chain management - length of relationships

Technical - design capabilities - quality inspection capabilities

Design and Build only - aesthetics - functional requirements - life cycle costs - flexibility in use

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I Appendix A !

I Questionnaire

See Note below. In respect of the Project identified in this Preliminary Enquiry, please indicate the following:

1 The Company's recent experience in dealing the standards and on the time scale envisaged.

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2 The particular technical skills and'capabil delivering this project, including (where r

3 Management and Personnel

contribute to projects of thi

(b) the proposed manage qualifications and exp

ct (give name, position,

with the Employer and his

out the project, with particulars of its

Note This questionnaire can (and should1 be adapted as necessary, both with regard to any non-price criteria to be used in assessina tenders and otherwise to meet the particular circumstances (see, for

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example, the examples of other criteria for tender assessment set out in Note 2 to the Project Information Schedule). As regards assessments against non-price criteria, see paragraphs 18-21 and 35-37 of the Practice Note.

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Appendix B

JCT Model Form of Invitation to Tender for Main Contract Works

R erence

Notes on completion

See Note 1 below.

See Note 2 below.

See Note 3 below.

See Note 4 below. i

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See Note 5 low.

/7 Se Note be G t

To:

Project title:

Location of the works:

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You are invited to provide a tender for the WO documents:*

0 Drawings listed in the a

0 Specification, Schedule Quantities*;

0 Employer's Requirements*;

0 The JCT Form and 0th

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enclosed Form of Tender, sealed in the

so as to be received not

you that the contract has been awarded. At that stage of all tenderers (in alphabetical order) and a list of tender

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ing order of value).

procedure will be conducted in accordance with the principles Practice Note 6 - Main Contract Tendering. The employer ght to postpone the closing date for bids and to accept any

der or no tender at all. No tendering expenses will be payable.

ned by or on behalf of

Signature:

Position: Date:

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Appendix B

Please note:

0 Drawings and details may be inspected at:

0 Inspection of the site is by arrangement with:

Notes Delete andlor complete as necessary.

1 In two-stage tender procedures, it is good practice to make stage" tender.

The other Conditions of Contract referred to here include optional clauses, any changes to the Contract F requirements specified, together with the completed A equivalent items forming the Annexure (or Ann and Northern Ireland, reference also should be Schedule.)

2 ative clauses and

or completed list of

H any required details were not supplied to te Project Information Schedule (e.g. as to or other matters that then remained t o those details, prospective tenderers sh

3 These may include, for example, (in other cases) collateral

4 The reference to price to those documents i

5 In the case of two-stage and procurement requir

1 Preliminary Enquiry and Its mpletion, Collateral Wananties any subsequent change in

tion to Tender, if not before.

he Contract Sum Analysis and (in

leted as necessary see also the reference and paragraph 24 of the Practice Note.

s, subject to any applicable public

(Ad respects feedback in best value cases, see

y these lists (or to qualifV that uch that there are unlikely to

tage tendering, it is desirable that not more than two or list or reserve list for second-stage discussions and that the

required, appropriate assurances should be given in the Tender as to limitations on use of the successful the contract conditions) and as to the return and non-

rers. Unless specified in the Employefs Requirements or on to Tender should also indicate the period required by istrator for approvaVcomment on designs and drawings

three contract0

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Appendix C

JCT Model Form of Tender for Main Contract Works

Notes on completion See Note 1 below.

Insert description end location of the Works.

Insert name end address of Employer.

lnsen name end address of Contractor.

This list should be conformed with the Invitation to Tender, prior to issue to tenderers.

( See Note 2 below.

S @ Not 3 b

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Reference No:

Tender for:

To:

From:

We have examined the follo A n i \ ocume s: I

0 Drawings liste ()l?l\\z in nvita . n to

0 Specification, Sche*s of-rk o m s of Quantities/Approximate v Quantities;

d other CO ditions of Contract specified in the Project Information che ac ed to the Preliminary Enquiry dated I TheJcTFow Out-n Plan; . $~&sfo~lows:

L fn??4 We off to arry out the whole of the Works described in a cordance with th -)&red to above;

VAT chargeable

from acceptance of our tenderhhe Date of Possession,

omprising a period of:

[ 1 weeks from acceptance to the Date of Possession; and

- [ 1 weeks from the Date of Possession to the Date for Completion].

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Appendix C

Delete if not appliceble.

Delete whichever alternative is not applicable, prior to issue.

Delete whichever I I I alternative is not

applicable, prior to issue, and see Note 4 below.

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For the purposes of the guarantee requirements mentioned in the Project Information Schedule to the Preliminary Enquiry, our parent company (if any)

is (Registered No. ) whose registered office is at:

We agree to supply [a] fully priced document[s] based within three days of being required to do priced document[sl in the separate envelope name. n\l We agree that if any

I procedure set out in JCT P

We undertake in the event of yo contract embodying all th 21 days of being required to

This tender remains open for the submissi

specified in the Preliminary Enquiry. I

ute with you a formal ained in this offer within

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ays from the latest date fixed

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/ received by a t

not later than hours on the

day of 20 -

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! Appendix C I

Not838 1 Where alternative tenders are required a separate form of tender should be used for each tender. The form of tender must indicate clearly the nature of the alternative tender.

In a two-stage tendering process there should be substituted for this paragraph a paragraph in terms similar to the following:

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"We offer to enter into second stage negotiations on the basis of the enclosed priced tender documents [and the first stage tender sum off (exclusive of VAT)]. Subject to satisfactory completion of those negotiations [the preparation of priced bills of quantities] and agreement of a contract sum we confirm our willingness to execute to do so on the basis of the contract form and other conditions refer

(The reference to a first stage tender sum should be included only if t documents permit, and the references to bills of quantities and other the particular circumstances.)

4 See paragraphs 42 to 50 of the Practice Note. AI and may be inappropriate in partnering arrange

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Standard Forms of Building Contract 1998 Editions

Series 2

Practice Note 6

Main Contract Tendering P (

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Issued by The Joint Contracts Tribunal Limited

Members Association of Consulting Engineers Limited British Property Federation Limited Construction Confederation Local Government Association National Specialist Contractors Council Limited Royal Institute of British Architects The Royal Institution of Chartered Surveyors The Scottish Building Contract Committee

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