TENDER

DOCUMENT
WELCOME TO MY VIDEO
DR AN NISHA NUR WELLIANA
ABD RASED
 TENDER
The administration of a construction contract is complex.

Factors impact on the outcome of the Tender Procurement

contract.
Parties involved Money
Tender is carried out depends on whom the owner of projects
System of procurement used Quality

Time constraints
Two category of owner: private & public sectors
Therefore, effective and efficient administration of
the contract is not only necessary but also vital in
order to achieve success.
 THE RULES:

PUBLIC SECTOR is the largest owner or main actor in construction

industry
The tendering procedures must follow or in accordance with
TENDER structured and formalized process
Tendering procedures always governed by factors such as sources of
PUBLIC SECTOR funding and type, nature and estimated cost of projects.
(MALAYSIA SCENARIO)
Mandatory to let projects estimated to cost more than
RM500,000.00 each through OPEN TENDER

In specific cases, such as urgency of the work or for security reasons

or need for sophisticated design: SELECTIVE TENDERING or
NEGOTIATED TENDER (must seek prior approval from the
Ministry of Finance).
TENDER PUBLIC SECTOR (MALAYSIA
SCENARIO)
01Funded cont’dTheCompany Foundation 04
exception for Malaysian contractor are not
Public tenders are funded by the
Government’s own source or financial capable or incompetent (inexperienced etc.) in
certain type of works

02 International Funded
Malaysian government’s policies on open 05 Large/specialize Project
tender and Malaysian contractors are not Works which estimated cost more than RM50
applicable:World Bank, ADB, IMF, IAD,etc. million each, Joint-venture (JV) or MOU
arrangement are allowed. selected foreign
03 Participate contractors are invited to JV with Malaysian
Opened to Malaysian contractor firms only contractors through Pre-qualification
 CONSULTANTS ROLES
IN TENDER DOCUMENT PREPARATION

DRAWINGS

ARCHITECT &
ENGINEER COMPILATION
CONSULTANT
CONCERNED
SPECIFICATION
CONSULTANT
CONCERNED

TENDER
PARTICULAR
CONDITION
OF CONTRACT QUANTITY
SURVEYOR
ESTIMATE
GENERAL
CONSULTANT
CONCERNED
CONDITION
OF CONTRACT
 TENDER CONTENT
Tender content must reflect or illustrating the contract system has been selected in the project proposal
Isi kandungan tender mestilah mengambarkan sistem kontrak yang telah dipilih dalam cadangan projek
tersebut

The contract is usually

based on either :

Bills of Drawing
quantities &
specification
 TENDER DOCUMENT PREPARATION
The tender documents which in generally contain the following matters:

Schedule of Rate Proposal

Instruction to Technology
tenderer 7 Transfer
1 Bills of Quantities / 10
Tender summary
6

Scope of Works

2
Tender Form Performed / Track
Technical
3 Record
drawing / Plans
11
8
Tender
Regulations
4
Profile & Financial Status
Contract
Condition of Period 12
Contract 9
5
 TENDER DOCUMENT PREPARATION (cont’d)

We are committed to our goals and

policy !
Contractual procedures differ with the forms of
contract used.

JKR 203 (Pind. 10/83) / PWD203

(Rev.10/83)
for contracts based on DRAWINGS AND Click icon to add picture
SPECIFICATIONS
JKR 203A (Pind. 10/83) / PWD 203A
(Rev.10/83) for contracts based on
BILLS OF QUANTITIES

PAM / ISM, ICE and FIDIC. Most often

used
by PRIVATE SECTOR.
TENDER DOCUMENT BASED ON BQ
Contract
More specific the content:

 Letter invitation to tender

 Check list for submission of tender
 Articles of Agreement and condition of Contract
 Tender Form
 The tenderers profile / CV - Forms for details of
tenderer’s registration as a contractor and of
organisation, particulars of ten job completed and jobs in
hand
 Letter of Acceptance
 Bank and insurance guarantee forms for Performance
Bond
 Bank and insurance guarantee forms for Advance
Payment
 Specification
TENDER DOCUMENT BASED ON
Drawings and Specifications
More specific, the content:

 Letter invitation to tender

 Check list for submission of tender
 Articles of Agreement and condition of Contract
 Tender Form
 The tenderers profile / CV - Forms for details of
tenderer’s registration as a contractor and of
organisation, particulars of ten job completed and jobs in
hand
 Letter of Acceptance
 Bank and insurance guarantee forms for Performance
Bond
 Bank and insurance guarantee forms for Advance
Payment
 Specification
 Summary of Tender
 ASPECTS TO BE CONSIDERED DURING PREPARE THE
TENDER DOCUMENT

In accordance with approved Work specified must

Government procedures and give effect to the
policies expressed and other
requirement of the
Client
Possible of being
performed by a
contractor
Meet the requirements in
term of standards of
Must free of ambiguity design and construction
and discrepancies
 TENDER NOTICE
Click icon to add picture

 It is also an announcement displayed and

delivered publicly by the organization to
inform and request interested contractors,
suppliers or firms to carry out a project, or
FORMAL  To offer a job or request
to cater equipment or services for the
services in return for a
OFFER IN stated amount of money and organization
by a stated date.
WRITING
 TENDER NOTICE

Describes the statement of tasks or work outline

offered by the clients to any interested parties
(contractors) to carry out the job.

In Malaysia: publicized in the local mass media,

both the Malay and English newspaper in the
advertisement columns and also the electronic
media such as the internet , e.g official website
or e-business. (part of open tender)
 PURPOSE OF TENDER NOTICE

INFOR INVITE SELL SPECIFICATION INFORM

M

To inform To invite qualified To sell the Client’s Tender document

interested parties parties to take up document tender specification for will inform part of
that there is a job the offer and the job the contract
tender to be provide services document at the
offered later stage
 CONTENTS OF TENDER
NOTICE
Click icon to add picture

 eligibility criteria on whom should participate in the

1 2 3 tender

 Contractors are registered with bodies such as Pusat

Name of the customer’s word “Tender Notice or Tender qualification
organization and its logo Invitation of Tender”, or pre qualifications Khidmat Kontraktor (PKK), CIDB, Ministry of Finance
and its tender number (MoF) and government agencies such as Public Works
and references.
Department (PWD) or Jabatan Kerja Raya (JKR),
MARA, Tenaga National or SIRIM etc
 CONTENTSClick
OFiconTENDER
to add picture
NOTICE
(CONT’D)

 The scope of the project and  Pre-tender visit (if necessary), site
visits are compulsory before the
4 the outline of the tasks or scope
of work the customer wants the
6 purchase a tender document
contractor to perform or deliver
Tender Description Request for site visit

 Fees imposed to purchase the  Deposit is refunded to unsuccessful

tender document tenders.
5 7  This is to ensure only parties who
 payment method: cash, bank draft, are really interested are involved in
banker’s cheque, money order, proceed the tender
Tender document fees Earnest money
bank guarantee and time and date
& modes of payment, (tender deposit)
when tender document is available
date and time details
 CONTENTS OF
TENDER NOTICE
(Cont’d)

9
8

Submission of tenders and address Clause of indemnity

specify closing dates and time for tender and The client is not binded to accept the lowest bidder or
the address to submit the document tender quotations nor to assign any reason for the rejection of
any tender nor it will be responsible for any costs
incurred by the tenderers
 TENDER NOTICE (EXAMPLE)
Registered Company with Suruhanjaya Tenaga Malaysia (STM) and an Authorized Switchboard Manufacturer are
invited to participate in the following Tender

Registered
Document Tender Document
Document
Tender Ref.No.&Title Selling Briefing Selling
Fee
Date (Compulsory) Date

TM/PSSCME/7120 (T) 2009/14

PROPOSED SUPPLY,
DELIVER, INSTALL, 22/12/09
TESTING AND
COMMISIONING OF AC STM and an (10.00 am) Crystal
POWER SUPPLY CABINET RM4,000 Authorize 15/12/09 Meeting Room,
COMPLETE WITH AUTO (Not Switchboard Ground Floor,
RESET SYSTEM, ITS Manufacturer to TM’s Building, Lot 07/01/2010
Refundable)
ASSOCIATED Only 31/12/09 1, Section 17,
ACCESSORIES AND THE
PROVISION OF
40200 Shah Alam,
ENGINEERING SERVICES Selangor
FOR TELEKOM MALAYSIA
BERHAD
 TENDER

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PAYMENT SELLING SUBMISSION
VENUE

 Strategic Sourcing CME,  Tender Box, Ground Floor, Complex

 Made in the form of BANK TM, Lot 1, Section 17, 40200 Shah
Group Procurement, 1st
DRAFT/POSTAL ORDER Alam, Selangor Darul Ehsan on the
Floor, Complex TM, Lot 1,
payable to TELEKOM closing date mentioned above before
Section 17, 40200 Shah Alam,
MALAYSIA BERHAD 12.00noon.
Selangor.
 Company information form  Late submission from date and time
 Tenderer are required to
and letter of undertaking shall mentioned above will not be
present an Original
be signed prior to the entertained.
Registration and Authorized
purchase of the Tender  The tender advertisement shall also be
Certificate and a copy
documents accessed at TM’s website :
whereby shall be retain by
 AFTER TENDER SUBMISSION
CLOSING DATE

TVP start TVP end

Tender date close

during tendering TENDER VALIDITY PERIOD TVP extended Tender Awarded

6o days another 6o days

Contractor agreed to extend - 1) will proceed to new period.

2) their tender will be evaluated.
Contractor disagreed to extend1)- they allowed to withdraws / tarik diri
2) their tender will not be evaluated.
 CLOSING DATES OF TENDER

Terdapat 2 situasi dalam tempoh penghantaran

tender;
Tempoh Sah Tender / TENDER VALIDITY PERIOD
Menolak Anugerah Tender /Refuse or reject to accept
the tender award.

Tender validity period:

Once the tender closed: TENDER VALIDITY

PERIOD are start.
 TENDER VALIDITY PERIOD

VALID PERIOD QS 60 DAYS EXTENDED REFUSE

the valid period of tender Period of time allowed for The period can be Client / QS consultant In contractor side, they
after the closing date of QS to analyze and select extended if the selection must submit a letter to can refuse the extension if
submission the eligible tenderer / process of contractor can apply for extension. The they do not agreed with
contractor not be made or the tender validity period can new period time or
occurrence of any be extended after the intends not to proceed
problem. consent from the with the tender
tenderers
 DURING TENDER VALIDITY PERIOD
2 PROCESS NEED TO DO:

STAGE 1: STAGE 2:
Process Of Selecting A Eligible ContractorPreparation of tender report
begins.... After tender analysis process The letter of offer / Letter of
Tender Report are prepared Acceptance (LA) will sent to
Qualifications
with comprehensive, complete, the succeed contractor
Tender prices fair and transparent.
Completion period Succeed contractor MUST
Experience QS: propose and recommend reply the LA within and
Contractor's established skills appropriate choice of one or compulsory agree to accept 2
two tenderer as qualified and weeks the project.
Financial status
succeed
Integrity & reputation
Proven competence suitable for The Tender Committee will
the nature / character of offered review report from QS and
project will agree to the
recommendation proposed by
QS.
REFUSE OR REJECT THE TENDER AWARD /
MENOLAK ANUGERAH TENDER

PENALTY

The penalty imposed due to / causes;

Refuse to accept LA appointment

Withdraw before the expiry date of validity
period
Violates instructions to tenderers
For the first offense - a fine of 2 years suspended
from participating in the tender
For second or subsequent offense
- 5 years suspended
QUESTION

Definision of PERFORMANCE
BOND

Definision of ADVANCE
PAYMENT

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