PREPARE & EVALUATE THE TENDER From the material provided in PDF attached answer the following tasks– PART A – RECEIVING A REQUEST FOR TENDER FOR A NEW PROJECT. Prepare the following as though you are...

Please refer to attached files. Please be written as per Queensland, Australia processes


PREPARE & EVALUATE THE TENDER From the material provided in PDF attached answer the following tasks– PART A – RECEIVING A REQUEST FOR TENDER FOR A NEW PROJECT. Prepare the following as though you are going on holidays and you need your Site Supervisor to review any Request for Tenders that may arrive in your absence. Preparing a process to evaluate a Request for Tender. Q1. Begin with what documents you should have and what information should be within each of the documents prior to commencing the evaluation. Q2. Provide a copy of the documents in Q1 Q3. What checks should be carried out regarding Timeframes to submit. Q4. Provide a checklist (point form) of what should be in the Tender Request prior to commencing any preliminary work on the Tender. Q5. List (point form) what must be ascertained from a Site Visit or Pre Tender Meeting. Q6. Provide a list (point form) of items that you would want the Supervisor to present to you in a Report to Management regarding the tender PART B – Compiling an Existing Tender Prepare the following as though you are going on holidays and you need your Site Supervisor to Review the Tenders that have arrived in your absence. You have sent out a Request for Tender to several contractors prior to going on holidays. You have a good chance of winning this job and will only have a week to finalise the Tender on your return. You have requested your Supervisor to review the tenders received from the Sub Contractors. 1. Provide a step by step procedure to review and evaluate each application. REFER TO TOPIC 6 AS A GUIDE 2. Set out what criteria to use when selecting the most suitable tender – Provide directions and checklists to support your selection process. 3. Provide a list ( point form ) of items that you would want the Supervisor to present to you on your return in a Report to Management regarding each tender submission. 4. Also advise your Supervisor in what order you would want the selection process as a comparison of each of the tender submissions. Be it by Price or Prefer Procedures to be set out similar to below – RULES DO’S List your rules first (policies) regarding each phase/section of the task DO NOT List what must not be done PROCEDURE Step by Step tasks to carry out the role 1 - Who is responsible 2 - What needs to be done first 3 - What needs to be next 4 - Now list how it is to be done 4 - In what timeframe is each step to be carried out 5 - If it is applicable – nominate where the task should be carried out OR where information can be obtained 6 - If it is applicable – nominate how the process is to be recorded or documented SUPPORT DOCUMENTS List the correct document that must accompany each document Provide an example of each document (DO NOT FORGET TO INCLUDE SAMPLE DOCUMENTS – YOU WILL BE MARKED NYC IF SUPPORT DOCUMENTS ARE REQUESTED AND NOT RECEIVED) OBLIGATIONS OF THE PARTIES PRINCIPAL, CONTRACTOR, SUPERVISOR, SUBCONTRACTOR, WORKER ETC Where applicable insert what each officers obligations are CONTINGENCY List any ‘what to do if the wheels fall off’ REVIEW PROCESS By Whom, When, Frequency Report Process Follow up TENDER EVALUATION Page 1 of 11 TENDER EVALUATION Source: Extracts/Adaption from Guidelines on Tender Evaluation Tasmanian Dept of Treasury & Finance INTRODUCTION Organisations should aim to achieve value for money whenever they procure building and construction industry services. This requires clear project definition and selection of the best procurement method for the project. Most organisations tendering processes aim to ensure that the most suitable contractor is selected for each project. The processes are based on three (3) principles: 1. Probity 2. Fairness 3. Value for Money Traditionally, building construction contracts have been awarded to the company with the lowest priced confirming tender. This method of warding tenders will continue into the future for most projects. Nevertheless, there are occasions when the traditional method may not result in the selection of the most suitable contractor for the project. An example is a contract for the long term maintenance of a building, where the quality of maintenance has a direct impact on the delivery of the organisations outputs, compliance with OHS legislation and the long term value of the asset. In these situations, an alternative tender evaluation process using weighted criteria could be adopted to determine the tender that offers the best value. This process is utilised where the performance of the contractor is of crucial importance to achieving the required outcome. The weighted criteria method of tender evaluation requires that selection criteria in addition to price are included in tender documents and form part of the tender assessment process. A system of weighting the selection criteria issued to compare tenders and identify the tenderer with the best performance record in terms of time, cost and value for money. Page 2 of 11 The guidelines presented on the following pages are a guide only – to put forward a consistent and robust approach for all major building works and services tenders using a weighted criteria method for tender assessment. Principles The weighted criteria tender assessment process is based on the following principles: ▪ Selection criteria that reflect the critical elements of the project and that can be assigned a weighting. ▪ Weightings that reflect the relative importance of selection criteria. ▪ Scores that are based on information submitted with the tender bid; and ▪ Normalising the non-price criteria and the tender price before applying the weightings to allow for the true effect and advantage of the weighting system. The system recognises contractors who have better performance records in terms of quality, time and cost. Weighting on the tender price normally exceeds 60%. A lower weighting on tender the price would represent extraordinary circumstances. Evaluation practices adopting a weighting of less than 60% would require more work in justifying the decision. Organisations should consider whether the extra cost incurred by a very good tender submission is matched by a reduction in the overall project costs or by the project’s running costs. This analysis should be carried out by experienced personnel. Selection Criteria Rather than automatically accepting the lowest price, the tender evaluation process applies weighting for: ▪ Skills. ▪ Quality. ▪ Experience; and ▪ Previous Performance. Page 3 of 11 In a manner to ensure value for money. To assess tenders, a system of criteria intended to encapsulate the competence of the tendering organisation to undertake a particular project is used to rate the tenderer’s bids. All relevant information requested in the tender documents and provided with the tender is used in the tender evaluation. The criteria are usually selected from the following: ▪ Relevant experience. ▪ Appreciation of the task. ▪ Past performance. ▪ Management and technical skills. ▪ Resources. ▪ Management systems. ▪ Methodology; and ▪ Price. Generally, no more than five (5) criteria would be used. The criteria must be relevant to the project, they must be able to be evaluated in a meaningful way and they must be able to be used to allocate a score to the tender submissions. When weighting non-price evaluation criteria, organisations should ensure that any difference in scores between a good submission and a satisfactory submission does not overshadow a substance price difference. Organisations assessing submissions with a substantial price difference must ultimately justify their selection in terms of value for money if the higher priced tender submission gets the higher score. Some organisations have a “Contractor’s Pre-Qualification Scheme” in place which provides the basic financial status and technical ability of the contractors has been assessed which eliminates the need to consider the Contractor’s credibility or aptitude and saves time in the evaluation process. Page 4 of 11 Relevant Experience Previous experience of the tenderer needs to be assessed in relation to the fields of expertise required to achieve the intended outcomes of the project. Recent experience is more valuable than historic experience. The company’s previous experience in technical areas comparable to the tendered project, the scale of past projects and the role undertaken within those projects should be considered. Information required should include a list of relevant projects undertaken and for each project provide: ▪ Description and relevance to the tendered project. ▪ Role of the tenderer. ▪ Project cost; and ▪ Duration of the project. Past Performance The tendering organisation’s performance in. ▪ Completing past projects to the quality standards required. ▪ Time performance. ▪ Completing past projects within budget. ▪ Claims history. ▪ Project management expertise; and ▪ Product value. Need to be assessed. Extension to the contract completion date and claims for variations also give an indication of performance quality. Similarly, the satisfaction of previous clients regarding the management of the project and project outcome provide useful subjective information on performance of the e=tenderer. Page 5 of 11 The information required should include the following information on each project completed by the tendering organisation: ▪ Project name. ▪ Client’s project manager (name and contact numbers). ▪ Quality standards, target performance levels. ▪ Tender price, variations and final cost. ▪ Completion date and extensions of time granted; and ▪ Details of OHS application and records. Technical Skills The competence of key management, professional and technical personnel that the tenderer proposes to employ on the project needs to be assessed with particular emphasis on the skills and experience in technical areas comparable to the project. The information required should include the following details of the proposed project team: ▪ Names. ▪ Functions. ▪ Technical expertise; and ▪ C.V’s to be provided. Management Skills & Systems The availability within the tenderer’s organisation of personnel with appropriate management skills together with effective management systems and methods appropriate to the successful management of the project. The information required should include the following: ▪