ARBE2308 Cost Planning and Estimating

  • Subject Code :  

    ARBE2308

  • Country :  

    AU

  • University :  

    The University of Newcastle

Answer:-

Tender Invitation

A tender is an answer sent by a contractor to an invitation to tender. It allows a solicitation for the provision of products or services (Heagney 2016). Tender papers are drafted in order to solicit bids. Some of the documents that are expected to be received from the building designer in the tender invitation are listed below:

  • An offer to tender letter.
  • The tender's format.
  • Preliminaries including pre-construction data and waste management strategies for the site.
  • The contract's structure, terms, and conditions, as well as any modifications. This may require a model amendment that enables the use of building information modelling (BIM), effectively turning a BIM protocol into a contractual text.
  • A pricing guide for a tender or contract sum analysis on design and build projects.
  • Details specifications for BIM through employers.
  • Conceptual drawings and an actual construction knowledge model.
  • Requirements
  • Return slip for tenders.

Some of the issues that would be considered before accepting or declining the invitation to submit a tender for the project include:

  • Inaccurate costings
  • Incorrect formatting
  • Missing Information
  • Misunderstandings regarding the client requirements
  • Site visits not done.
  • Incorrect evaluation of resources.
  • Spelling and grammar issues.
  • Clarity in obligations.

Subcontracting

Various information must be supplied with the construction quotations, including: the request for quotation, the tender kit, and the scope of operation (Heldman 2018). This attachment must be specifically referenced in the RFQ. As such, the attachment may provide the contract type, a detailed description of the scope of operation, and a description of the project on which a quote is being sought (Levy 2018). Some of the key documents to be provided in a request to sub-contractors about the components of a project as a part of the RFQ includes:

  • Conditions of Tender
  • Conditions of Contract
  • Specification
  • Drawings
  • Tender Form
  • Compliance Declaration
  • Any other document issued by the Principal for or in connection with the RFT.

A sample of the letter of invitation that would be sent to the sub-contractors with the documents identified in the list produced above is shown in the table below:

[Company Name]
[Address, City, STATE, Zip]
[Contact]
[Website]

Re: Invitation to Tender no. xxxxxxxxxx Dated on xx-xx-xx and Due on xx-xx-xx

Dear Sir/Maám,

I am xxxxxx, the General Manager from xxxxxxxxxxxxx. I am composing this letter on behalf of the company to invite you to the tender notice no. xxxxxxxx as a sub-contractor. We invite you to bid on a project that has been identified and a tender has been given. This project will help you expand your knowledge and abilities. The scheme has an estimated expense xxxxxxxxxxxxx and therefore needs complex technical management. We are assembling a team that is dedicated to and deeply committed to this endeavor. Competent and qualified coordination is desired to ensure that the project is completed within the specifications specified. We invite you to contract with us to provide your expertise and resources for the development of this project.

Please inform us about your earliest availability so that further settlements can be made. Please respond to us at xxxxxxxxx or ring us at xxxxxxxxx.

Thank you.

Regards,

xxxxxxxxxxxx,


A template for comparing the plumbing sub-contract quotations when received. 

The Tenderer might be asked to include supplementary detail or confirmation during the selection phase. This includes, but is not restricted to, the following: -

  1. A description of past projects and accomplishments of doing same or comparable work;
  2. A description of the materials and labour, like construction plant, suggested to be included and the capacity to carry out the work;
  3. A projected cash flow schedule for every month.
  4. The names of subcontractors that are not named in the Tender Form to which it is believed to subcontract a portion of the work.
  5. A list of all quotations obtained by the Tenderer in connection with the works.

Associated risks, for discussion with the appropriate staff members within the company include;

  • Operational risks, which include those associated with safety and accidents, quality assurance, productivity, labour, and supply chains;
  • Contractual and legal risks, which include indemnity, payment terms, site conditions, and dispute resolution;
  • Financial risks, which include mode of payment, cash flow, credit terms and insurance;
  • Political/regulatory risks, which include jobs, lien, and contract law risks and labour laws.
  • Environmental threats, which involve those associated with endemic environmental conditions, spills, leaks, or discharges, as well as those associated with atmospheric discharges (Walker 2015).

A list of the items that will require approval by the appropriate staff members within the company before the submission of the tender are the following;

  • Contractor-Subcontractor Agreement: Used to describe the roles and responsibilities of the contractor and subcontractor.
  • Change Order: Used by the author, contractor, and architect to implement agreed-upon changes to the job.
  • Request for Work Modifications: Used to seek quotations for project improvements or enhancements.

References

Heagney, J., 2016. Fundamentals of project management. Amacom.

Heldman, K., 2018. Project management jumpstart. John Wiley & Sons.

Levy, S.M., 2018. Project management in construction. McGraw-Hill Education.

Walker, A., 2015. Project management in construction. John Wiley & Sons.

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