In the name of Allah, the Most Gracious the Most

Merciful
 Outcome Based Education
PLO 1. Engineering Knowledge: An ability to apply
knowledge of mathematics, science, engineering
fundamentals and an engineering specialization to the
solution of complex engineering problems.

CLO 1. To classify different types of construction

documents.
CLO 2. To develop the concept about rate analysis.
Course Program
Learning Learning Learning Domain
Outcome Outcome
CLO-1 PLO-1 Cognitive 2
CLO-2 PLO-1 Cognitive 3

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 What is a Project?

PROJECT

A PROJECT can be considered to be any series of

activities that:

 Have a specific objective to be completed within certain

specifications
 Have defined start and end dates
 Have funding limits (if applicable)
 Consume resources
 Project participants

 Whether the project involves a building, bridge, dam

pipeline, sewage treatment plant, water supply system or
any one of the numerous other types of projects, it
requires the skills and services of a project team
comprised of three principal participants.

 The owner
 The designer
 The builder
Types of construction projects
It is difficult to categorize a spectrum of construction
projects. However, there are four generally accepted major
types of construction into which designers, owners and
constructors tend to group construction projects.

1. Residential Construction

 Residential construction accounts for about 30 to 35% of

construction expenditure in a year. It includes family
homes, multi-unit town houses and high-rise apartments
2. Building Construction

 It includes small retail stores, departmental stores,

schools, colleges, universities, hospitals, commercial
office towers, theaters, government buildings, recreation
centers and warehouses. Economically, this sector
accounts for 35 to 40% of the construction market.
3. Heavy Engineering Construction

 Heavy engineering construction accounts for some 20 to

25% of the market. Examples are dams and tunnels,
flood control structures, irrigation canals, bridges,
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railways, airports, highways, ports and harbor structures.
4. Industrial Construction

 Industrial construction represents about 5 to 10% of the

market. However, it has some of the largest projects and
is dominated by largest engineering and construction
firms. Petroleum refineries, petrochemical plants, nuclear
power plants, steel mills, manufacturing plants etc. are
examples of industrial construction projects.
TENDERING, BIDDING AND
CONTRACTS
 Tendering
What is Tendering?
 Once a project owner has made the decision to
undertake a project and construction drawings and other
documents are ready, the job must be advertised. The
procedure for placing a project in the market is known as
tendering.
 The main objective of the Tendering Process in
Construction is to eliminate favoritism and corruption in
awarding works to construction companies.

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 Characteristics of Tenders
• All potential contractors and suppliers must submit their bids within
the deadline decided on by the client.
• The bid (tender papers) must include all the required and relevant
details about the materials to be used, the expected cost of
the project, etc.
• After the deadline has passed, all bids are evaluated by
the client based on a set of predetermined criteria such as price
and quality.
• The process of tendering starts with an invitation of tender or a
request for tender (RTF).
• It ends with the public evaluation process and following by which
one of the firms that submitted a tender wins the project or contract.
• Before they are floated by the client, tenders are generally
advertised in a different local of media and newspapers, to allow all
interested contractors an opportunity to bid for the project.

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Advantages of Tendering In Construction

1. No Nepotism
2. Value for Money
3. Encourages Competition
4. Easier Entry for New Firm

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 Tendering
 The tendering procedure may be:
 Open
 Selective
 Negotiated

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 Tendering

 Open Tendering
In open tendering the project is advertised for all qualified
contractors to submit a bid. The job can be advertised in
several ways:
 Trade magazines
 Public advertisement – local newspaper
 Organizations - plan service
 National publications
Disadvantages
 Too many bidders
 Higher possibility of low bids
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 Tendering

 Selective Tendering
The project owner may decide to limit the number of
contractors allowed to submit bids for the project. This
may he done by
 Having approved list of contractors
 Selectively approaching contractors known to the owner.

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 Tendering
 Negotiation Tender
The negotiation tendering process in construction is mostly used in
the engineering and construction industry commencing from tendering till
dispute resolutions, i.e. under the pre-contract negotiations & post-contract
negotiations.
The negotiation process involves are as follows:
 Identification by the employer of a suitable contractor to negotiate with.
 The contractor can be selected either from the employer’s list
of preferences or on the advice of the professional team.
 The contractor being apprised of the work scope. Negotiations can be
applied to the following type of contract.
 This type of tendering process in construction the employer has a long
term business relationship with the contractor.
 Where the contractor is involved in the financing of the project.
 Where there is a pressing need to have a very early start of work on the
site and to complete the works on a fast track basis. 16
Tendering Process In Construction
The tendering process in construction includes the
following stages:
1. Pre-tender Stage
2. Tender Advertisement Stage
3. Closing of Tender
4. Tender Opening Process
5. Tender Evaluation Process
6. Tender Award

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 Pre-tender Stage
• At the pre-tender stage, when the clients
have an idea, the client will appoint a
consultant to discuss further the project.
The consultant will do their job, advising,
managing the tender and contract, and
transferring the idea into the drawing.
• At this stage, the client and consultants
will be brainstorming about the scope, time
to complete, and budget.

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 Tender Advertisement Stage
The tender advertisement is also called tender
notice. The conventional tender notice will advertise
in the local newspaper. In the tender notice, the
basic requirement that should be appearing are:
 Title of the project.
 Class of contractor, head, and subhead needed.
 Location, date, and time to obtain the tender
document.
 Fees for tender documents.
 Location, date, and time for submission of tender
doc.
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 Closing of Tender
• Tender notice will mention the time and date of
the tender closing process.
• If the contractors fail to submit their bids within
a specific time and date, it considers the
contractors refuse to bid for the tender. At that
time also the tender validity period is started.
• At this stage, contractors can withdraw back
their tender papers if they are no more
interested to fight for the tender. Consultants use
this period to make assessments and
evaluations of each of the offers.
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 Tender Opening Process Tender and
Evaluation Process
• Quantity surveyors usually will handle the tender opening
process. To ensure the integrity of the competitive process,
the evaluation of proposals must
be undertaken objectively, consistently & without bias
towards particular suppliers.
• Tenders are generally evaluated against a pre-
determined set of criteria. The evaluation of the tenders
shall be prepared as soon as possible after the tender
opening.
• A report prepared by the Quantity Surveyor will describe
the findings of the said evaluation and it will
be supported by tables and graphs. In the end,
the Quantity Surveyor will recommend which tenderer, who
in his opinion, is the most suitable to undertake to execute
the project. 21
 Tender Award
• An evaluation team will examine each tender received and
make recommendations as to which tender represents the
best value for money. Once the contract has been finalized
and work has been awarded, both the successful and
unsuccessful tenderers will be notified.
• Once the final decision has been made on the tender award
to the particular contractor, the tender administrator creates
the tender results notification which is in letter form and then
sent to all participating contractors.
• Once the client or government accepts a tender, it is binding
on both parties. This means that the agency
or company that won the tender must provide the goods or
services in the manner agreed to and at the price offered,
and the client/government must pay the agreed price at the
agreed time. The tendering process in construction
is complete with tender awarding. 22
 Major considerations in tendering

 A good contractor does not need to bid for every job

available in the market. The decision to bid is based on
two major considerations:

 Information supplied by the client

 Company consideration.

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 Information supplied by the client

 The name of the job

 The names of the client and designers
 The name of any consultants with supervisory duties
 The location of site
 A general description of the work
 The approximate cost range of the project
 Details of any nominated sub-contractors/suppliers
 The form of contract to be used

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 The procedure to be adopted in examining bids
 Anticipated date of possession of site
 The period of completion of the works
 The tender submission and opening date
 The period for which the tender is to remain open
 The anticipated value of liquidated damages (if any)
 Details of bond requirements (if any)
 Any particular conditions relating to the contract.

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 Company Consideration

 The company's current workload and turnover.

 The company's financial resources
 The availability of resources to undertake the job
 The type of work
 The location of the contract
 The identity of the client and his representatives
 A detailed examination of the contract documents.

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If the company decides to bid, an estimate of cost is
Prepared. A bid is submitted in accordance with
owner's requirements. Normally, estimate preparation
will only be done after thorough site investigation.

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Questions?

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