malinga
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Tendering introductionTRANSCRIPT
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
1
Task 01
I. Description of the stages in Open and Selective Tendering
Introduction
A tender is a submission made by a prospective supplier in response to
an invitation to tender. It makes an offer for the supply of goods or services.
In construction, the main tender process is generally for the selection of the
contractor that will construct the works. However, as procurement routes have
become more complex, so tenders may be sought for a wide range of goods and
services (for example on a construction management contract the works are
constructed by a number of different trade contractors each contracted to the client)
and contractors may take on additional functions such as design and management.
There is also an increasing tendency for suppliers to be aggregated into single
contracts, for example, 'integrated supply teams' on public projects may include; the
main contractor, designers, sub-contractors, suppliers, facilities mangers and so on.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
2
Type of tenders
There are four main types of tender opportunities.
1. Open tendering
2. Selective tender
3. Nomination tendering
4. Serial tendering
Open Tendering
Open tender is an arrangement where an advertisement in local newspapers
or trade journals invites contractors to apply for tender documents. Open Tender is a
transparent process which ensures that only the contractor with the best price and meeting all
the technical requirements will win the tender.
Advantages of the open tendering process are:
Be open to all qualified and interested bidders
Give high level of competition and contractors tend to give best prices as compare to
other tendering method.
New firms can enter into the market
Contractors can enlarge their market and find new clients
Disadvantages of the open tendering process are
Lengthy timeframe for completion of the procurement action,
Requires strict adherence to procedures,
Assumes existing internal capacity for the completion of clear and precise
specifications,
Restricts suppliers‟ participation in determining the technical specifications,
Limits the possibility of building long-term relationship with suppliers,
Focuses only on a least-cost solution,
Suppresses innovation,
Excessive formalism may limit supplier participation in the tendering process.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
3
Selective tendering
Selective tendering only allows suppliers to submit tenders by invitation. A
pre-selected list of possible suppliers is prepared that are known by their track record to be
suitable for a contract of the size, nature and complexity required. Consultants or experienced
clients may maintain „approved‟ lists of prospective suppliers and then regularly review
performance to assess whether suppliers should remain on the list.
Selective tendering can give clients greater confidence that their
requirements will be satisfied and should reduce the wasted effort that can be involved in
open tendering. It may be particularly appropriate for specialist or complex contracts, or
contracts where there are only a few suitable firms. However, it can exclude smaller suppliers
or those trying to establish themselves in a new market.
This type of tendering short listing can be done by,
ICTAD Category
Invitation
Prequalification
Post qualification
Negotiation
Advantages of Selective tender
Well known contractor
Good quality
Less aggregate cost for tender
Less evaluation time
Disadvantages of Selective tender
Favourism
Less price competition
Cartel tendering
New firms cannot enter in to the market
Regular updating is necessary
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
4
II. If going for a selective tender, prior to call for tender estimation, the contractors
need to be short listed. Analyse the factors which are used by clients to formulate
the selected lists.
Tendering is the process by which bids are invited from interested
contractors to carry out specific packages of construction work. It should adopt and observe
the key values of fairness, clarity, simplicity and accountability, as well as reinforce the idea
that the apportionment of risk to the party best placed to assess and manage it is fundamental
to the success of a project. So the client has to consider lot of factors when the doing the
tendering process.
1. Details of the company
2. Technical resources
3. Financial information
4. Sub-contracting
5. Equipment capabilities
6. Health and safety
7. Successfully complete projects with time, quality and cost
8. ICTAD grading
9. Experience
10. Financial stability
Details of the company :- Client has to know about the company and its working history
really well to hand over his project. And as well as he should check whether that company
can finish the project within time quality and cost. Other than that it‟s better to know about
what are the achievements that company has achieved in its level.
Technical resources :- Client should know about the technical resources which company can
use for his construction project to finish his work within the client‟s requirements.
Sub-contracting :- Its better know about the people who are doing the sub contracts for the
construction. From that client can check whether they are supply the equipment and the
material in good quality.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
5
Equipment capabilities :- When considering the plants and the equipment which are going
to be used for the construction, it‟s better to have a good idea about the machines and their
qualities to avoid the hazards which can be happen during the construction.
Successfully complete projects with time, quality and cost :- Before the handed over the
project to the particular contractor, client must checked out what are the successful projects
which completed by them. By visiting and search through the internet client can get clear idea
about their company and the work whether they have finish their job within the time quality
and cost.
ICTAD grading :- In construction industry ICTAD grading is more important than the other
qualifications to get a contract or a tender. ICTAD grading is awarded which the company is
good in construction work and that company has evidence to prove that, their company is
good in work and completing projects with time, quality, cost and managing available
resources as well. ICTAD grading also cause for give tender to a contractor.
Experience :- Past experience is very important factor of the pre-qualification. The
contractor‟s direct or relevant previous experience in completing similar work should be
considered by client before inviting the tenders. The client consider about whether
contractors past construction project are similar or big .
Financial stability :- Financial side of a company is very useful for client whether give
tender or not to the company. Some companies entered to the industry and sometimes they
don‟t have sufficient money. Their finance side is not stronger than other older companies.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
6
III. Discussion of contractual documentation required for tendering
Contractual documents which are mostly need to be have for the tendering
1. Instruction to bidders
2. Conditions of contract
3. Securities and guarantees
4. Bills of quantities
5. Specifications
6. Drawing
7. Form of bid and qualification information
8. Bidding data and contract data
9. Schedule of work
10. Form of tender
Instruction to bidders :- A document included as part of the bidding requirements that sets
forth specific instructions to candidate constructors on procedures, expectations and
disclaimers of the owner, and other necessary information for the preparation of proposals for
consideration by the owner for a competitive bid.
Conditions of contract :- Terms and conditions that set the rights and obligations of the
contracting parties, when a contract is awarded or entered into. These include 'general
conditions' which are common to all types of contracts, as well as 'special conditions' which
are peculiar to a specific contract (such as, contract change conditions, payment conditions,
price variation clauses, penalties).
Bills of quantities :- Bill of quantity is also very important part of the construction process.
BOQ helps to client and Consultant Company to select the suitable contactor for their
construction project. This also provides an impartial and accurate system for tendering. Each
invited tenderer bids against the bill of quantities, making their price for each work item.
Their priced bill of quantities creates their offer. Tenders sent two copies of bill of quantity
and one for the architect or surveyor with the tender and the other for the contractor to keep
as a copy of his submitted prices. If the tenders are not required to submit priced bills with
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
7
their tenders, only one copy need sent to them initially a second copy will then be sent at the
time requesting submission of the priced bills.
Specifications :- Specifications are written documents that describe the materials
and workmanship required for a development. They do not include cost, quantity or drawn
information, and so need to be read alongside other contract documentation such as
quantities, schedules and drawings. Likewise, written information about materials
and workmanship should not appear on drawings or in bill of quantities, instead they should
refer to the appropriate clauses in the specification.
Drawings :- All set of drawings that form part of the job to be performed. These drawings are
usually the latest drawings and must be received by the contractor prior to the date of
commencement. It must include all drawings from consultants, and will constitute the entire
project being contracted.
Schedule of work :- The construction schedule is an important piece of the document. In this
part, the contracting office will know how and when the project will be completed.
Sometimes, construction contracts will require updated schedules throughout the construction
progress, and might form part of the monthly, or agreed term, application for payments.
Form of tender :- The Form of Tender is a form where the tenderer can fill in details relating
to their offer, including the lump sum for which they are offering to complete the works. The
Schedule is the part of the Contract that specifies the particular details relating to a particular
project.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
8
IV. Explanation of client’s involvement in tender process
Tender Process
Tender procedures must be clearly set out and recorded to ensure evidence of full compliance
with the Code. Care should be taken regarding the receipt, recording, assessment,
confidentiality etc. of all communications including verbal, written and electronic methods.
Audits may be undertaken at any stage of the tender process by internal or external auditors
such as the Victorian Auditor General's Office or the Ombudsman.
Stages
The standard tender process consists of 4 main stages
Pre-Tender,
Tender,
Evaluation and
Award
Client
The Client has multiple responsibilities, and it is normal to divide these
amongst several individuals so that the appropriate management structure can be
implemented and conflicts of interest avoided.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
9
The overarching Client responsibilities and roles are
Responsibility for making the decision to invest in the Project.
Responsibility for the approval of the project and thereafter providing a
sustained commitment to the project (may be the Director of Finance, Vice
Principal or such)
.
There are four types of tender are used in construction industry. They are:
Open tendering
Selective tendering
Nomination tendering
Serial tendering
Then client issued tender documents in certain time period and give certain time period for
fill and make the tender documents and submit to client.
After tender submission period then it comes to tender opening process. In tender
opening, contractor or represented should attend to the moment. In tender opening
Client‟s Quantity surveyor announce the each tender sum and contractors rates. Also
Client‟s Quantity surveyor needs to check is the tender documents in order. If it is not
in order that tenders will be rejected.
After tender opening then come to tender evaluation period. In this period Client‟s
Quantity surveyor select most suitable contractor for their project and after tender
evaluation period construction project is hand over to selected contractor.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
10
V. Analysis of the constraints which may apply to the tender process.
There are four main tendering systems as, Open tendering, Selective Tendering, Nomination
Tendering and Serial Tendering.
Open tendering – the process of offering the construction project to any one in
construction field and any one need to enter the field.
Selective Tendering – the process of offering the construction project to few
contractors in construction field.
Nomination Tendering – the process of offering the construction project to only
one well known contractor.
Serial Tendering– the process of offering the construction project to contractors
according a particular order, if they registered before.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
11
Our selected project is selective tendering systems. It‟s easy to us and this not big
project but we must think about quality and cost. They have experience and the can build to
fine cottages. Within this time period, sometimes some tenders can be rejected because there
are several constraints which may apply to the tender process.
Incomplete bids
Lack of supporting documents
No time to review tender process
Tender are difficult to understand
Poorly presented which make them look unprofessional
Tenders take longer to complete them competition
Tenders are not competitively priced
The estimator should be prepared to respond to any request for further information or a
notification that the submitted tender contains error in computation. For errors, two
alternative courses of action are possible:
The tender will be given details of such errors and afforded the opportunity of
confirming or withdrawing the offer. The estimator will need to refer to management
when the extents of the computation errors have been determined for a decision as to
whether to confirm the original tender figure or withdraw the tender.
The second option is that the tenderer is given an opportunity of confirming his offer
or amending it to correct genuine errors. If the contractor elects to amend his offer and
the revised tender is no longer the lowest, the second lowest tender will be examined
in more details.
The estimator must consult with management to establish whether to amend the tender figure
or to confirm the original offer, once the extent of the computation errors has been
determined. In the both situations the estimator or signatory to the original tender must be
prepared to endorse the appropriate tender documents to note the acceptance or change to the
tender. Such amendments must also be endorsed by the employer in the event that a contra t
is subsequently awarded.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
12
VI. Evaluation of the different forms of contracts used in the construction process.
What is a contract
Contracts are "legally binding" agreements, which, in a legal context are valid and must be
fulfilled, with certain exceptions. For an agreement to be regarded as a contract, it must
contain four essential ingredients. The absence of any of the following four parts will make
the agreement not legally binding:
1. Offer
2. Acceptance
3. Intention of legal consequences
4. Consideration
Contract used to say what is expected of client, Says what client expect
of the other contractor or organization, protect each other‟s needs and rights, make each party
more responsible for what that party promises to do and it says what happens if a party does
not keep its promise. The contract type is the key relationship between the parties engaged in
the business and the contract type controls the project risk. There are two main contract
methods are used in the construction industry. They are lump sum method and measure and
pay method.
Lump sum method
Where the contract sum is determined before construction starts, and the
contractor undertakes the work for an agreed sum. Lump-sum contract can be with quantities.
The price will be based on the drawings and a firm bill of quantities. Items which cannot be
accurately quantified can be recovered by an approximate Quantity or a provisional sum, but
these should be kept to a minimum the other method is without quantities. Its price based on
the drawings. Tenders can be prepared on the basis of notional quantities.
Advantages
Lower financial risk to Employer.
Higher financial risk to Contractor.
Minimum Owner supervision related to quality and schedule.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
13
Contractor has higher incentive to achieve earlier completion and better
performance.
Contractor selection is relatively easy.
Disadvantages
Sometime Higher risk not good for contractor
Design should be finalized before the bidding
Changes are difficulty and costly
Contractor will select its own means and methods
Bidding is expensive and lengthy
Measure and pay
This method also called re-measurement or Measurement contracts. The
simple definition of this method is where the price to be paid for the whole work is decided
by measurement and valuation related to a schedule of prices included in the contract.
Measure and pay Contract contains a Bill of provided by the employer or its consultants. A
Measure and pay contract might also be suitable on projects where the design has not been
completed in sufficient detail for bills of quantities to be produced. Normally tenderers rates
will be based on drawings and approximate quantities. if some client use this method as his
contract type these requirements should be need. They are Good quantity surveying and
reporting system, Experience in developing bills of quantities, sufficient design definition to
estimate quantities of units and Payment terms properly tied to measured work completion.
Advantages
Complete design definition not required at tender
“Typical” drawings can be used for bidding
Suitable for competitive bidding
Easy for contractor selection
Early project start possible
Changes in contract documents can be made easily by the owner.
Lower risk for contractor in comparing with lump-sum contract
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
14
Disadvantages
Final cost can be changed from the contract sum
Better supervision needed to quality control
Can lead for disagreements The suitable contract method for this project is measure
and pay contract method.
According to the “Happy Stay” project
I select the lump-sum contract for the “Happy Stay” project
because this is not a big project. This type of contract is suitable for the small projects. This
project has only 10 cottages. The contract sum can be determined before the construction. So
there is no risk for the client. The time period for this project is not long because of that the
material cost is not varying so much. There for the lump sum contract is the most suitable
contract type for this 10 cottages project.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
15
Task 02
I. Method statement for Mixing and Placing of Grade 30 reinforced concrete
for 300 x 300 mm columns in ground floor.
Blinding concrete: Surveyor should mark the size and location with elevation of blinding
after formation level achieved by earth works and released for concrete works. Erect form
work for blinding at 75mm thickness as per approved drawings for each specific foundation.
Cast the concrete blinding with approve mix design class C30 grade. Allow the concrete
blinding to be hardened and cured as per relevant specification. this should be read in
conjunction with method statement.
Form work: Forms shall be of wood and plywood is used for exposed surfaces and is of type
18mm thick plastic coated plywood to achieve the specified finish. The forms shall be faced
to give the specified class of finish for the structures. The form surfaces for exposed concrete
shall be smooth, true and free from all irregularities. All exposed finished edges of concrete
shall be chamfered by chamfers cut from nominal 25mm x 25mm timber unless special
architectural finishes are specified.
Reinforcement: The reinforcing bars, ties, links, stirrups and all other reinforcing shall be
positioned and rigidly fixed exactly as shown on the drawings such that the minimum cover
requirements are achieved and the true alignment of the reinforcement is the maintained.
Splices in reinforcements shall be made at design locations shown on the drawing. All
reinforcing bars shall be stored on the site on supports suitably spaced and at sufficient height
to keep the steel clear of the ground. Long term storage shall be minimized on site.
Scaffolding: All the above ground constructions for buildings superstructure walls, columns,
elevated slab and roof slabs shall be executed on scaffold platforms. These platforms will
support form work, safe access as well as platform for concreting work. All the scaffold
platform shall be inspected and released for use prior to go for intended work. Scaffold for
slab shall be prepared as per approved drawings. No scaffold platform shall be used without
inspection and certified approval.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
16
Structural concrete: Transport of concrete shall be in a truck mixer to site discharge point
within 1 hour after the time of loading. On completion of delivery of the concrete the truck
mixer may be washed down on site only at designated location. The wash down from the
internal of the truck mixer shall not be discharged on site but shall be returned to the batching
plant for disposal. A concrete and inspection test plan including all actions to be dealt with
relevant execution. Concrete shall not be placed unless the positioning, fixing and condition
of the reinforcement and any other embedded items; the cleanliness, alignment and suitability
of the containing surfaces have all been inspected and approved. Forms shall be well soaked
with water prior to concreting. Concrete shall not be freely dropped from more then 1.5m
height. Concrete pump/crane with bucket shall be used when mixer can not reach the
location.
Removal of form work: All form work shall be removed as per the times. After removal the
form work, all fins and projecting edges shall be cleaned from the concrete faces which are to
be exposed in the permanent works and if the surfaces require dressing it shall be as
described in the relevant standard. Curing procedures shall be initiated immediately after
removal of form work.
Repair: Touching up of concrete surfaces after the removal of form work is not permitted
until they have been inspected and released in accordance with the quality procedures. The
repair method including materials and the extent of the repair works to remedy the
imperfections of the concrete shall be specified and approved for each repair case and comply
with the design requirements of the structure concerned. This is the good way for the building
concrete work.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
17
II. List of market rates in Colombo, for Material, Plant & Labour which is
used for this calculation.
According to the Building Schedule of Rates (BSR) values,
List of market rates in Colombo
Cement bag 1 = Rs 950 /bag
Sand = Rs 5400 / cube
Metal
) = Rs 4800/ cube
Skilled labors = 1200/ day
Unskilled = 900/ day
Mixer = Rs 2700/ hour
Vibrator = Rs 250 /day
Mixing concrete 1:1:2(3/4’’)
Materials which are used for a cube
31 cwt cement (50kg bags)
0.44 cube sand
0.96
metal
day hire for mixture
Water (200 gal)
Labour
6 days unskilled labours
1 day skilled labour
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
18
III. Calculation of profit and overhead margin, with the following details.
Mixing grade 30 concrete
Material cost per cubic meter
31 cement bags = 31 × rs950 = Rs 29450
0.44cube sand = 0.44 cube × Rs 5400 /cube = Rs 2376
0.96 metals = 0.96 cube × Rs 4800 = Rs 4608
Total material cost = Rs 36434
Labor cost per cube
Skilled labor per day = 1 day × Rs.1200 = Rs.1200
Skilled labors for 6 days = 6 days × Rs.900 = Rs.5400
Total labor cost per cube = Rs.6600
Machine cost per day
× hire for concrete mixture =
×8h × Rs.2700 = Rs.7200
Total cost (3% of labor)
Tools cost = Rs.6600 × 3%
= Rs.198
Basic cost = 36434 + 6600 + 7200 + 198
= Rs.50432
Cost per cube = Rs.
= Rs.17820. 49
Placing of concrete
Assume details of columns,
Cross section = 300 300 mm2
Height = 10‟ (3.0 m)
Placing overall area (Ground area) = 10 5 m2
5m
5m
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
19
Assumed labor requirement,
Skilled labor
Mason 1 day
Carpenter 1 day
Unskilled labor 4 days
Skilled labor for vibrator 1 day
Unskilled labor for curing 2 days
Tools
Vibrator 1 day
Material
G 30 concrete = (0.3×0.3× 3 m3) @ Rs.17820 . 44/m
3
= Rs.28869.19
Labor
Skilled
Mason 1 day
Carpenter 1 day
Vibrator 1 day = 3 day @ Rs.1200/ day
= Rs.3600
Unskilled labor
Placing 4 day
Curing 1.5 day = 5.5 @ 900 day / day
= Rs.4950
Tools
(Including the 3% )
= [3600 + 4950] 3%
= Rs.256.50
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
20
Vibrator = 8 hrs @ Rs.250
= Rs.2000
Therefore the cost for 1.62 m3
(6 columns) = (28869.19+3600+4950+256.50+2000)
= Rs.39675 .69
IV. Calculation of the rate per m3 including overhead and profit.
Basic cost per m3 =
= Rs.24491. 16
Rate including OH profit = Rs.24491.16 × 1.2
= Rs.29389 .39
V. Calculation of the rate per m including overhead and profit.
Basics cost per m =
= Rs.2204.20
Rate including OH profit = Rs.2204.20 × 1.2
= Rs.2645.04
VI. Determine the critical factors which might have used to decide the profit margin as 9%
Profit.
Tender sum with over head profit = 41.5203M
Site over head = 1.8923M
Head office over head profit = 1.1032M
Profit margin = 9%
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
21
Over head (
) × 100%
= 7.21%
Over head profit margin = (7.21 + 9) = 16.21%
Therefore tender sum = 41.5203 × 116.21 %
= 48.25M
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
22
Task 03
i. In this tender, BOQ plays a vital role in contractor’s estimating. Demonstrate how
the bill of quantities format can be prepared by the consultant and how the
contractor can use it to build up estimates.
Bill of Quantities Preparation
Preparing bills of quantities for contractors and sub-contractors requires a
great deal of thought and time. From the cost of materials, to parts and labour, every single
item must be accounted for. The bills should also detail the terms and conditions of the
construction or repair contract and itemize all work enabling the contractor to accurately
price the job they are bidding for.
The process of preparing bills is understandably even more time consuming.
Where appropriate, the Quantity Surveyor will prepare Bills of Quantities based on the
Architects Drawings and Engineers drawings. The Quantity Surveyor will also consult the
Project Manager regarding any operational restrictions. The Quantity Surveyor and the
Mechanical and Electrical Consultant will prepare a pre-tender estimate to confirm that the
scheme is within budget. If reductions are required the Quantity Surveyor will, in
conjunction with Design Team, submit a schedule of reductions which can be priced during
the tender stage.
The Bill of Quantities has been developed to provide all possible items that
could be required in a project. However, project specific BOQ shall consist of items
necessary for the execution of the particular project. The Consultants must customize BOQ to
be project specific by deleting the unused items and adding new items relevant to the
particular project
Advantages
It saves considerable time and cost of several contractors measuring the same design
in order to calculate their bids for competition;
It provides a consistent basis for obtaining competitive tenders from contractors;
It provides an extensive and clear statement of the work to be executed;
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
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It provides a very strong basis for budgetary control and accurate cost reporting of the
contract including:
- the preparation of cash flow forecasts,
- a basis for valuing variations, and
- a basis for the preparation of progress payments
It allows, when BQ items are codified, reconciliation and any necessary transfers and
adjustments to be made to the cost plan;
When priced it provides data to support claims for grants;
It provides one of the best sources of real-time cost data, which can be used for
estimating the cost of future building projects
ii. Health, safety & welfare are important issues in the construction. Preplanning of
these, will avoid unwanted big expenditures. Evaluate how the health, safety and
welfare plan affects this tender .
Health and Safety
The Planning Supervisor should finalise the Pre-Tender Health and Safety plan which will
then be passed to the Quantity Surveyor for inclusion in the contract documentation. The
Project Manager will comment on the plans adequacy.
The importance of health and safety in construction
Health and safety in construction is not a matter to be taken lightly. In fact,
health and safety needs to be front of mind in every aspect of construction at all times. The
construction industry is prone to many hazards and accident potential. Construction materials,
tools, machinery and handling techniques all come with their own dangers. The main types of
accidents which cause death or serious injury on construction sites include falls, incidents
with site vehicles, collapsing materials and contact with overhead power lines.
Most accidents can be avoided by implementing stringent health and safety
protocols and ensuring those protocols are constantly maintained. H&S methods will ensure
the construction site has good design, good planning and uses tried and tested safety
techniques.
BTEC HND CIVIL ENGINEERING
Assignment 01 – Tender Procedure & Estimating
Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88
[Student name : K.D.G.Malinga Damith]
24
There is simply no excuse for slacking or cutting corners when it comes to
health and safety in construction. Poorly implemented health and safety techniques, design
and management can result in accidents, illness and even death.
Pre-Tender Stage Health and Safety Plan
• Essentially the plan is a collection of information about the significant health and
safety risks of the construction project which the Principal Contractor will have to
manage during the construction phase.
• The degree of detail and the time and effort involved in preparing it should be in
proportion to the nature, size and level of risks involved in the project.
Contents of the Pre-Tender Stage Health and Safety Plan
• Nature of the project
• The existing environment
• Existing drawings
• The design
• Construction materials
• Site-wide elements
• Overlap with the client‟s undertaking
• Site rules
• Continuing liaison
The Planning Supervisor hands the health and safety plan. It is then their responsibility to
develop it into a working document that will assist in the health and safety management of
the project.