Tendering (CONS6811) Lara Tookey

Session NINE

Face 2 Face (4 hours)

• Pricing Tags • Class test workshop

Self-directed (6 hours)

• You need to be up to date on all aspects of ‘costs’ associated with creating a tender.

Tendering (CONS6811) Lara Tookey

TENDERING #9

Subcontractor TAG analysis

Tendering (CONS6811) Lara Tookey

Three Stage Process (Subcontracting)

• Preparation phase • Determine a bid list

• ‘Public’ call or select

• Implementation phase • Notification

• Analysis / tender phase • Receive bids • Evaluate the bids • Choose the best SC • Inform all bidders of results.

Tendering (CONS6811) Lara Tookey

Analysis / Tender Phase Receive & Evaluate Bid • “Scope” the bids

• Determine precise scope of work that each bid covers.

• Break into as many work components as possible • Analyse Tags

• Tags are qualifications to an Offer • Other qualification

• Liability insurance, builders’ risk insurance, WC insurance, Bonds

Tendering (CONS6811) Lara Tookey

Choose the best SC

• Cost; • Past performance / history with the SC; • Methods & materials SC intends to use on

project; • Requirement or desire to use minority or

women owned firms on the project; • Tenderers familiarity with building type of

project considered.

Tendering (CONS6811) Lara Tookey

Name of Construction Company

Tag description Comment Action Assumption

Tendering (CONS6811) Lara Tookey

ACTIVITY (45 MIN) Working with your peers

•You work for a Main Contracting company. You are required to establish your company’s tender price for the Some Buildings Project Tender, Mt Albert, Auckland.

Tendering (CONS6811) Lara Tookey

• For this project it has been established that your ‘own work’ will be P&G, Excavation, Carpentry & Joinery.

• All other trades are being subcontracted out. From the subcontract prices received (detailed later) you are to establish the subcontract values for your tender for the following trades:

• Concrete work • Precast concrete • Plumbing

Tendering (CONS6811) Lara Tookey

• Subcontract values for the other subcontract trades have already been established.

• Complete the attached Summary page and submit it to Lara at the requested time.

• Please keep a copy of your working notes separately.

• To assist with this Workshop, give your group a Name!

Tendering (CONS6811) Lara Tookey

PRECAST CONCRETE Tags

DoItAll Precast $35,500 All items

Some Precast Ltd $29,500

Supply only, delivered to site

Don’tKnow Precast $38,250 Incl GST

Tendering (CONS6811) Lara Tookey

CONCRETE Tags

GoneHard Concrete $25,000

Supply & place concrete only

Slippery Forms Ltd $10,000 Formwork items only

TheLot Conctrete $38,813 Concrete & formwork all items, incl GST

Tendering (CONS6811) Lara Tookey

PLUMBING Tags

Lotsawork Ltd $45,000 Plumbing, drainage & roofing (all items)

Just Plumbers $19,000 Plumbing only

Leaky Plumbers $35,000 Plumbing & roofing only

Tendering (CONS6811) Lara Tookey

SOME BUILDING PROJECT - Mt Albert, Auckland TENDER SUMMARY

Item Description Price 1 PRELIMINARIES N/A now 2 EXCAVATION $ 5,769.00 3 CONCRETE WORK 4 REINFORCING STEEL $ 8,700.00 5 STRUCTURAL STEEL $ 27,050.00 6 PRECAST CONCRETE

7 METAL WINDOWS & DOORS $ 23,000.00 8 CARPENTRY $ 52,654.00 9 JOINERY $ 15,326.00

10 PLUMBING 11 DRAINAGE $ 12,000.00 12 ROOFING $ 10,000.00 13 FIRE PROTECTION $ 12,000.00 14 ELECTRICAL SERVICES $ 45,000.00 15 PLASTER BOARD LININGS $ 36,000.00 16 FLOOR COVERINGS $ 17,950.00

17 PAINTING & SPECIAL FINISHES $ 18,754.00 18 GLAZING $ 4,935.00 SUBTOTAL

19 MARGIN N/A now 21 CONTINGENCY SUM $ 100,000.00 TOTAL TENDER SUM (Excl GST)

Tendering (CONS6811) Lara Tookey

Be prepared to submit your Tender Summary Page at :

Tendering (CONS6811) Lara Tookey

Class Test Workshop

Tendering (CONS6811) Lara Tookey

Things to think about

• Can you identify what forms the basis of the ‘estimated costs’?

• The tender sum submitted is considered to be the strategic transformation of these estimated costs into a cost that the MC is willing to undertake the project for.

• What and why is there a difference between the estimated and tender costs / values?

Tendering (CONS6811) Lara Tookey

Tender

Mark Up (Profit)

Head Office Overheads

Preliminaries i.e. Site Overheads

Prime Costs + Provisional Cost + Own Sub-contractors + Own Labour + Materials + Plant

Adjudication

= gross bill

= net bill

Contingencies