Construction Industry Development Board development through partnership Construction Procurement documents 2c

Construction Industry Development Board

development through partnership

Construction Procurement documents

2c



Objective of procurement documentsProcurement documents should in general:a) require tenderers to submit particulars sufficient for the employer to evaluate their tenders and to assess their status, capabilities and capacities to perform the contract;b) set out in a clear and unambiguous manner

criteria by which tenders are to be evaluated;c) define the risks, liabilities, contractual obligations of the parties to the contract;d) define the nature, quality and quantity of

supplies, services or works to be provided in the performance of the contract.



A first principle approach to procurement documentation

Procurement documents are required primarily to

• solicit tender offers; and

• form the basis for a contract.



•Proposed terms and conditions•Description of what is to be provided•Requirements for and constraints to the works

Employer solicits tender offers

Tenderer compiles tender offer and submits it to the Employer

input

Employer compiles contract after evaluating tender offers

output

Response to tender and financial offer

input

Terms and conditionsDescription of what is to be providedRequirements for and constraints to the works Amounts payable on completion of an activity, deliverable or attainment of a milestone

output



Principle

In order to have a fair, transparent, cost effective and equitable solicitation process, employers should:

• provide tenderers with clear instructions as to how they are to submit their tender offers; and

• inform them as to how their tenders are to be processed following their receipt.



Key principle

There should be complete separation in contract documentation between conditions of tender, conditions of contract specifications and terms of payment (including methods of measurement).

Should this be done, different conditions of contract and payment systems can be used without affecting the remaining component documents



Documents that relate to the “Tender” (See SANS 10403)

Tender Notice and Invitation to Tender

Alerts prospective contractors to the nature of the supplies, services and works required by the employer and should contain sufficient information to enable them to respond appropriately.

Tender Data

States what the applicable conditions of tender are and where they may be found. Tender Data also provides the variables for standardised conditions of tender.



List of Returnable Documents

Ensures that everything the employer requires a tenderer to submit with his tender is included in, or returned with, his tender submission.

Returnable Schedules

Contains documents that the tenderer is required to complete for the purpose of evaluating tenders, and other schedules which upon acceptance become part of the subsequent contract.



Documents that relate to the Contract

Offer and Acceptance

Formalises the legal process of offer and acceptance

Contract data

States the applicable conditions of contract and associated contract specific data that collectively describe the risks, liabilities and obligations of the contracting parties and the procedures for the administration of the contract.



Pricing Data

Pricing Instructions

Provides the criteria and assumptions which it will be assumed (in the contract) that the tenderer has taken into account when developing his prices, or target in the case of target and cost reimbursable contracts.

Activity Schedules / Bills of Quantity

Records the contractor's prices for providing supplies / services / engineering and construction works which are described elsewhere in a specification within the Scope of Work section of the contract.



Scope of work

Specifies and describes the supplies, services, or engineering and construction works which are to be provided and any other requirements and constraints relating to the manner in which the contract work is to be performed



Scope of work (SANS 10403) – Engineering and construction works

Description of the worksEmployer’s objectivesOverview of the worksExtent of the worksLocation of the worksTemporary works

EngineeringDesign services and activity matrixEmployer’s designDesign briefDrawingsDesign procedures

ProcurementPreferential procurement procedures Subcontracting



Scope of work (SANS 10403) – Engineering and construction works

ConstructionWorks specificationsPlant and materialsConstruction EquipmentExisting servicesSite establishmentSite usagePermits and way leavesAlterations, additions, extensions and modifications to existing worksInspection of adjoining propertiesWater for construction purposesSurvey control and setting out of the works

ManagementManagement of the worksHealth and safety



Site Information (works only)

Describes the site as at the time of tender to enable the tenderer to price his tender and to decide upon his method of working and programming

eg 1. report on founding conditions

2. Building will be occupied during refurbishment contract

NB Forms basis of claims if situation is different from what is described.



Single volume Tender Document Contents

Part 1 Tendering proceduresT1.1 Tender Notice and Invitation to TenderT1.2 Tender Data

Part 2 Returnable documentsT2.1 List of Returnable DocumentsT2.2 Returnable Schedules

Part 1: Agreements and contract dataC1.1 Offer and AcceptanceC1.2 Contract Data

Part 2: Pricing dataC2.1 Pricing InstructionsC2.2 Activity Schedule / Bill of Quantities

Part 3: Scope of Work (C3)Part 4: Site information (C4)



3 Volume Tender Document ContentsVolume 1: Tendering proceduresPart 1: Tendering procedures

Tender Notice and Invitation to TenderTender Data

Volume 2: Returnable documentsPart 2: Returnable documents

List of Returnable DocumentsForm of Offer and Acceptance Contract Data (Part 2: Data provided by

Contractor) Activity Schedule / Bill of QuantitiesReturnable Schedules

Volume 3: Contract (Draft contract)Part 1: Agreement and Contract DataContract Data (Part 1: Data provided by

Employer) Part 2: Pricing data: Pricing Instructions

Part 3: Scope of Work: Scope of WorkPart 4: Site information: Site Information



Contract Part 1: Agreement and Contract DataOffer and acceptanceContract Data Part 2: Pricing data:Pricing InstructionsActivity Schedule / Bill of QuantitiesPart 3: Scope of Work: Scope of WorkPart 4: Site information: Site Information



A set of standardised bidding packagesTendering proceduresTender Notice and Invitation to TenderTender DataReturnable documentsList of Returnable DocumentsTender SchedulesPart 1: Agreements and contract dataOffer and AcceptanceContract DataPart 2: Pricing dataPricing InstructionsActivity Schedule / Bill of QuantitiesPart 3: Scope of WorkPart 4: Site information

Varies significantly from contract to contract

Contract specific data needs to be inserted

Make use of standard schedules

Tender specific data needs to be inserted



Standardised procurement documentsTendering procedures

Tender Notice and Invitation to Tender

Tender Data

Returnable documents

List of Returnable Documents

Returnable Schedules

Part 1: Agreements and contract data

Offer and Acceptance

Contract Data

Part 2: Pricing data

Pricing Instructions

Activity Schedule / Bill of Quantities

Part 3: Scope of Work

Part 4: Site information

Example in CIDB Standard for Uniformity

Examples in CIDB Standard of Uniformity

CIDB Standard conditions of tender

CIDB Standard of Uniformity

Standard Industry Form of Contract with contract specific data

Project specific

SANS 10403 (SANS 1921, SANS 2001 and 1914)

Project specific (SANS 10403)



STANDARDIZED CONSTRUCTION PROCUREMENT DOCUMENTS FOR ENGINEERING AND CONSTRUCTION WORKS

Establishes requirements

• Provides examples of how component documents should be structured

STANDARDIZED PROCUREMENT DOCUMENTS FOR MUNICIPAL ENGINEERING AND CONSTRUCTION

WORKS

Generic



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