CET133-T

CONSTRUCTION PLANNING
AND SCHEDULING
Engr. Kriselle Joy L. Hernandez
Instructor I
Bidding & Contracting Procedures
The bidding process ensures fair competition and project transparency. It typically
involves the following steps:
 Pre-qualification: Applicants with the required experience and qualifications are
shortlisted to participate in the bidding.
 Negotiations: Depending on the contract type, negotiations with shortlisted
bidders may occur to finalize terms.
 Project Advertisement: The project is announced publicly, attracting potential
bidders.
 Content of Invitation to Bid (ITB): The ITB outlines the project scope,
submission requirements, and evaluation criteria.
 Instructions to Bidders (ITB): The ITB provides detailed instructions for
preparing and submitting bids.
The Bidding Process
Step 1: Request for Proposals
After an organization has decided to open up the floor for bids on a particular project, it will
issue an invitation for bid (IFB), a request for quote (RFQ), or a request for proposal (RFP).
While these terms are unique, they all serve the same purpose: to express public interest in
receiving bids for a project. From there, a tender manager prepares a more detailed package
that fills in any remaining information about the project, issuing organization, and what types
of skills and services they’re looking for.

The package will include details about deadlines, expectations, specifications, supporting
documents, and details about what requirements and supplementary information potential
bidders should include in their bids. Depending on the type of bid process the organization
prefers for the project, the invitation to bid will be extended openly or to a limited number of
preferred applicants.
The Bidding Process
Step 2: Bid Preparation and Submission
Once the request for proposal has been issued, it’s up to interested parties to assemble their
bid and submit it to the organization accepting bids. During this time period, parties assemble
as an organization to fully review the requested document and the project’s terms.

Before drafting a proposal of any kind in response, the team must first make sure that they
understand the client’s needs and have the bandwidth and capability to deliver on those terms
successfully. If the team determines that the project is a good fit for the deliverables and
services they can provide, then they can begin assembling a project proposal.

Once the proposal has been drafted, the team should take one final look at the document as a
collective before sending it back to the client for their official review.
The Bidding Process
Step 3: Bid Evaluation and Selection
During the bid evaluation and screening process, the organization accepting bids reviews the
various bids and project proposal submissions from outside contractors. While this process
can take weeks or even months, it’s important to review each proposal thoroughly and
carefully. After the organization reviews each proposal, they will select the vendor or vendors
that they want to grant the project to.
The Bidding Process
Step 4: Contract Negotiation
Once a vendor has been selected, they will negotiate back and forth with the hiring
organization to establish agreed-upon terms and conditions for project satisfaction. During
these negotiations, both parties may discuss the project timeline, compensation, access to
resources, and more.
The Bidding Process
Step 5: Project Delivery
The final step of the bidding and tendering process is project delivery. This phase marks the
official beginning of project work and encompasses the entirety of the project lifecycle. At
the conclusion of this phase, the client receives all of the key deliverables and project
outcomes that were discussed in the initial planning phase.
General Conditions of the Contract
The general conditions establish the legal framework for the project and govern
various aspects:
 Definition, Intent, Modifications: Defines key terms, project intent, and how
contract modifications are handled.
 Bond Requirements: Specifies the types and amounts of bonds (e.g., performance,
payment) required from the contractor.
 Conduct of Work: Outlines construction execution expectations, quality
standards, and safety protocols.
 Completion & Acceptance: Defines procedures for project completion verification
and owner acceptance.
Invitation to Bid (ITB)
An ITB is a formal solicitation issued by project owners to invite
contractors to submit bids for a construction project1. It includes the
following information:
• Project Scope: A detailed description of the work to be performed.
• Timeline: The project duration and key milestones.
• Contract Terms and Conditions: Legal and contractual requirements.
• Guidelines for Bid Submission: Instructions on how to prepare and
submit bids.
• Minimum Qualifications Required for Bidders: Criteria that bidders
must meet to participate in the bidding process.
Instructions to Bidders
These instructions provide essential details for prospective bidders. Here
are some common sections found in the instructions:
• Scope of Bid: Clearly defines what the bidder is expected to provide.
• Funding Information: Details about project financing.
• Bidding Requirements: Documents and forms needed for bidding.
• Corrupt, Fraudulent, Collusive, and Coercive Practices:
Prohibitions related to unethical behavior.
• Eligible Bidders: Criteria for qualifying as a bidder.
• Origin of Goods: Requirements related to the origin of materials or
products.
Instructions to Bidders
• Subcontracts: Rules regarding subcontracting.
• Pre-Bid Conference: Information about any pre-bid meetings.
• Clarification and Amendment of Bidding Documents: Procedures
for seeking clarifications or updates.
• Documents Comprising the Bid: Details about the technical and
financial components of the bid.
• Bid Prices: How to structure bid prices.
• Bid Security: Requirements for bid bonds or guarantees.
• Sealing and Marking of Bids: Instructions for submitting sealed
bids.
Instructions to Bidders
• Deadline for Submission of Bids: The submission deadline.
• Opening and Preliminary Examination of Bids: Procedures for bid
opening and evaluation.
• Domestic Preference: Any preferences for local suppliers or
contractors.
• Post-Qualification: Evaluation after bid submission.
• Signing of the Contract: Procedures for finalizing the contract.
General Conditions of the Contract
The general conditions establish the legal framework for the project and govern
various aspects:
 Definition, Intent, Modifications: Defines key terms, project intent, and how
contract modifications are handled.
 Bond Requirements: Specifies the types and amounts of bonds (e.g., performance,
payment) required from the contractor.
 Conduct of Work: Outlines construction execution expectations, quality
standards, and safety protocols.
 Completion & Acceptance: Defines procedures for project completion verification
and owner acceptance.
Construction Bidding Process Breakdown
The construction bidding process is a structured approach to finding a qualified contractor to complete
a project. Here's a breakdown of the key steps:
• Bid Solicitation: The project owner initiates the process by issuing a bid invitation. This can be a
Request for Proposal (RFP), Request for Qualifications (RFQ), or Invitation to Bid (ITB). These
documents outline the project scope, specifications, and submission requirements.
• Bid Submission: Contractors interested in the project review the bid documents and prepare their
bids. This involves estimating project costs, outlining their approach, and showcasing their
qualifications and experience. Bids are typically submitted by a deadline.
• Bid Selection: The owner carefully evaluates all submitted bids. This evaluation considers factors
like price, contractor experience, references, project schedule, and compliance with project
specifications.
• Contract Formation: After selecting the winning bid, the owner negotiates and finalizes a contract
with the chosen contractor. This contract details the project scope, timeline, budget, and payment
terms.
• Project Delivery: With a signed contract, the construction project commences. The owner and
contractor work together to ensure successful project completion according to the agreed-upon
terms.
Elements of a Project Advertisement
A well-crafted project advertisement attracts qualified bidders and sets the stage for a
successful bidding process. Here are some key elements to include:
• Project Description: Clearly outline the nature of the project, its location, and its size.
• Project Scope: Briefly describe the work involved, including major components and
milestones.
• Eligibility Requirements: Specify any licenses, certifications, or experience required for
bidders.
• Bidding Instructions: Detail the bid submission process, including deadlines, submission
format, and contact information for inquiries.
• Project Documents: Mention where contractors can access bid documents like plans,
specifications, and evaluation criteria.
By providing clear and comprehensive information, project advertisements can generate
interest from qualified contractors and ensure a smooth bidding process.