Tender Estimation QS/15/40/16 Introduction

Tender Estimation QS/
15/40/16
Introduction
This report has been written for Tender Estimate assignment in the 3rd semester.
This report is mainly focused on study of the estimation in the construction industry. A
Tender Estimate establishes the base line of the project cost at different stages of
development of the project.
A Tender Estimate at a given stage of project development represents a prediction
provided by the cost engineer or estimator on the basis of available data. It is defined as
that area of engineering practice where engineering judgment and experience are
utilized in the application of scientific principles and techniques to the problem of
Tender Estimate, cost control and profitability.
The method of tender pricing process, the consideration while pricing, information
required for pricing, factors affecting in making all in rates, preliminaries, suppliers
quotation and the discount types are the main area covered in this report. Being the
quantity surveyor, he is the one playing in monetary environment of the construction
industry.
The quantity surveyor mind is required not only for the estimating he will have to be
able to forecast what will be happening in future. In estimating by means of norms any
one can do or else computers can do. But the reason why still quantity surveyor is
required he is going to analyze the situation where the adjustment to be made
according to the situation. Those type of calculation have established.
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Tender Estimation QS/
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Acknowledgement
I take this page to acknowledge most important people in my life. First and foremost I
would like to gratefully acknowledge the enthusiastic Tender Estimation lecturer Mrs.
Pabasara Kariyavasam of British College of Applied Studies (BCAS) for her valuable
guidance and advice. She inspired us greatly to work in this project. Her willingness to
motivate us contributed tremendously to this assignment.
I would also like thank the authority of BCAS for providing us with a good environment
and facilities to complete this module. Also, I take this opportunity to thank the
Programme Manager Mr. Haseeb for offering this subject, Tender Estimation. This gave
me a clear vision of what a Quantity Surveyor must do in future as his job.
Finally, my honorable mention of thanks goes to my family and friends for their
understandings and supports on me in completing this assignment.
Without helps of the particular that I have mentioned above, I would face many
difficulties while doing this assignment.
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Tender Estimation QS/
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Content
Introduction ...................................................................................................................01
Acknowledgement ................................................................................................... 02
Content.......................................................................................................................03
Task 01(Page 04-09)
Task1.1.......................................................................................................................04
Task1.2.......................................................................................................................05-07
Task1.3.......................................................................................................................08-09
Task 02 (Page 10-13)
Task2.1......................................................................................................................10-11
Task2.2......................................................................................................................12-13
Task 03 (CRA & 14-14)
Task3.1.......................................................................................................................14-15
Task3.2.......................................................................................................................CRA
Task 04 (CRA & 15-17)_
Task4.1......................................................................................................................16-19
Task4.2.......................................................................................................................CRA
Task 05 (Page 18-21)
Task5.1......................................................................................................................20-22
Task5.2......................................................................................................................23-25
Conclusion................................................................................................................ 26
Reference..................................................................................................................27
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Tender Estimation QS/
15/40/16
Task 01
1.1 Describe the steps of tender pricing process.
Decision making to computation Tender program Collect necessary
information that requires in pricing Pricing the tender Prepare
other document to be submitted with the tender Tender adjudication
Tender Submission.
 Make the decision to accept tender application, this process initial step of a
competitive tendering process in which qualified suppliers or contractors are
invited to submit sealed bids for construction or for supply of specific and clearly
defined goods or services during a specified time frame.
 Tender program –Contractor look at the tender to make a plan and sea that can
activities enabling on time tender submission of tender.
 Collect necessary information that requires in pricing – In pricing contractor get the
information about price lists, sent quotations and collect cost data about materials.
 Pricing the tender – Then use the information and start pricing the tender by
building up unit rates, pricing the total BOQ and build up cost.
 Prepare other document to be submitted with the tender – Then contractor collect
the document that need to submitted with the tender document like bid bond to
requires value, method statements, work program, financial statements, previous
work record, site organizations chart, site layout, sources of resources etc.
 Tender adjudication – However after contactor add mark-up percentage on to the
cost and apply in BOQ to ready the tender document to submission.
 Tender Submission – After complete the pricing the BOQ, dully filled the form of
tender, incorporate all necessary submittals specified in tender document, specially
bid bond, submit the tender with required manner. And In order to prevent such a
disaster, do not leave things to the last minute. Plan the process well and make sure
that you allow for all potential problems, such as ensuring all files are safely stored
and backed up and printers are working and have a sufficient stock of ink or toner.
From above factors will influence in successful in tender submission.
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Tender Estimation QS/
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1.2. Identify the factors to be considered in pricing a tender
Pricing a tender is a pricing construction operation usually spared throughout specified
time period. cost of operation, therefore depend on some certainties and uncertainties
as well behavior of these factors should be considered in conjunction with all aspects of
the tender. finding from the examination of tender documents and information
collected would be helpful in pricing the tender. The factors to be considered in pricing
are;
Types of contract – Lump Sum. Measure & Pay, Design and build
Special condition or instruction given by client
Price fluctuation
Advance payment
Payment structure
Standard form of contract – SBD Form by ICTAD, FIDIC
Construction period and maintenance period
Location of site, Accessibility, Facilities available, Neighborhoods
Nature of the workplace - weather, Ground condition
Availability of material, Labour, Plant, Technology
Construction methods
Credit facilities from suppliers
Stock of materials
Sub contractors
Method of measurement used in preparation of BOQ
Imported materials
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Tender Estimation QS/
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BOI facilities
Accommodation of workplace
Rules and regulation-Local authorities, Government
Taxes
Extend of design information available
Potential design changes by client
Accuracy of the available cost data
Competition in the market
Estimator’s skill and estimation methods
Tender validity period
Description for some factors
Payment of structure
Since most construction companies are obtaining the capital from the bank loans.
contractor has to know the payment structure from the client. Because client has to pay
the bank loans payments and the interest as well.
And the Progressive payments are a common billing procedure for construction
projects, for instance. For example is a shipment that cannot be delivered all at once.
The client is served by not having to pay an unaffordable payment up front, and by
having a tool to keep workers motivated to complete the project. The project manager is
served by having ability to pay worker wages and buy materials. We must conformed
the payment dates.
Location of Site, Accessibility, Facilities Available, Neighborhood
The site at which the construction is carried out has a mass outcome on the cost. It is so,
depending on where site is situated. So transport facilities, labor agencies, security
services, local services like water, electricity are available or not. and neighborhood, if it
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