Tender Documentation Analysis: University Project Report

This report provides a detailed analysis of tender documentation within the context of a construction project. It begins with an introduction to the tendering process, emphasizing the importance of accurate documentation and careful evaluation. The report then presents a practical application by preparing a subcontractor/supplier spreadsheet for various trades, including brick supply and aluminum windows/doors. A sample cover letter is also provided. A key focus is on the evaluation of quotes, outlining the steps involved in assessing submissions, identifying non-compliant offers, clarifying offers, and evaluating qualitative criteria. The report further delves into the identification of main risks associated with tendering construction projects, such as lack of clarity and potential contract breaches, as well as risks involved with subcontractors and suppliers, including financial risks and adverse physical conditions. The conclusion emphasizes the significance of tender documentation and its evaluation for successful project outcomes.

Running head: TENDER DOCUMENTATION ANALYSIS
Tender documentation analysis
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................3
a) Subcontractor/ supplier spreadsheet for the trades................................................................3
b) Covering letter.......................................................................................................................3
Task 2.........................................................................................................................................5
Evaluation of Quote...................................................................................................................5
a) Identification of the main risks for tendering construction project........................................8
b) Identification of the main risks involved with involving sub-contractors and suppliers.......9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
The tendering process is used in private as well as public sectors for procurement of
goods as well as services. However, the tendering party and respondent require being mindful
while ensuring the accuracy of the documentation exchange along with the statements
developed during the process of bidding. The present study deals with preparing a
spreadsheet for the trades for the organisation, requesting quotes as well as for supplying
bricks, aluminum windows and doors. A cover letter is made to accompany the
documentation. Also, the quotations are analysed, and preferred subcontractor for the trade is
selected for the trade. On the other hand, the main risks to tendering for the construction
project and involving with the sub-contractors are discussed in the current study.
Task 1
a) Subcontractor/ supplier spreadsheet for the trades

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b) Covering letter
SOUND INTERIORS PTY LTD
ABN: 12 345 678 910
Email: [e-mail]
PO BOX 123 First Street 2011
Quote: 01001
Date: 14/03/2019
Attn: Construction Supervisor
Sub: Tender Notice No. BE/BHQWU/2019/020/ Dated 10.03.2019 Due on 10.04.2019
We are pleased to present the proposal for your review against the Tender Notice No.
BE/BHQWU/2019/020/ Dated 10.03.2019 Due to 10.04.2019.
We have gone through the tender and now better understanding of the Dwell Building
construction project requirements.
For the last five years, our organisation has completed some high profile projects related
to the construction industry and achieved great success as one of the leading contracting
organisations located in Australia, WEST COAST PLASTERBOARD has been at the forefront
in executing a wide range of construction projects for people, large corporations as well as the
governments.
We are thankful for the opportunity provided to us to participate in the tender. If you have
any queries, please do not hesitate to get in contact directly.

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Sincerely,
[NAME]
[Authorised Signatory]
Task 2
Evaluation of Quote
The quotes are assessed with the object to identify the offer that encounters
requirements of the agents as well as provides the best value for money. It is also an essential
equability of the tender and able to withstand public scrutiny. The Evaluation Committee
according to the conditions evaluates the submission of tender and compliance criteria using
the methodology determined by the committee.
Step Description Action
1. Evaluate
compliance
Evaluate the submissions for determining if
they are compliant. The non-compliant offers need to
be excluded from the assessment. The quote
submitted by West Coast Plasterboard have provided
the list of jobs like supply and installing Boral
plasterboard to walls and ceiling upstairs. Hence, it is
required to evaluate the non-compliant offers consist
of the following.
 It is not required to comply with the
conditions for making participation.'
 Also, it's essential to evaluate the legal action
may result if the contract is awarded to the

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non-compliant submission (Tu,2015).
 Compliance with the technical specifications
like supply and installation of mini spa to
ceiling, gyprock to the wall, metal angles as
well as casing bead around the stairwell are
essential to evaluate the tender.
2. Clarify offers It may be essential seeking clarification from
a supplier whether the offer/quote is not precise. On
the other hand, allowing a supplier for providing
description does not enable the suppliers to revise the
original offer. Also, any type of clarification and
response is required to be documented.
3. Evaluate qualitative
criteria
The particular stage engages a detailed
analysis of the offers against qualitative evaluation
criteria as well as weighting that are specified in the
RFQ or RFT. Also, the criteria for evaluation are
required to meet. If the quotes do not meet the
conditions to participate, it will be ruled out of the
procedure.
The instant quote made by West Coast
Plasterboard has initiated that the salesperson installs
plasterboard, plaster cover with 50% deposit, and
balance on completion. Hence, the evaluation
committed finds the right approach to be selected for
the tender.
4. Evaluating tender The offers from the government entities are

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when procuring from the
government entities
accepted where the price needs to be reflected
incomplete cost attribution basis whether there are
any private sector suppliers.
Also, if the offers received from the
government authorities do not fulfill the conditions
are declined.
5. Clarification from
the referees
Whether making any discussion that a
supplier with the nominated referee is significant that
referred provided information is used to clarify the
purposes (Erasmus Beyers, Mbuya, Rachidi &
Kanjere, 2016).
To make sure integrity, the discussions with
the referees need to be adequately documented,
6. Selection of the
preferred offer
The preferred offer sent by West Coast
Plasterboard is considered as representing the best
value for money
7. Documenting the
evaluation report
After completing the process of evaluation,
the selection needs to be recorded in the evaluation
report. The members of the committee need to sign
the statement.
On the other hand, it consists of a
comprehensive record of the method of assessing the
rationale used in selecting the preferred supplier. The
final decision of tender is needed to stand with public
scrutiny.
8. Providing an
evaluation report and
The quote provided by West Coast
Plasterboard is considered by the committee

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reviewing committee
endorsement
endorsement and makes the evaluation report. The
committee evaluates the quote with the above-
specified criteria and develops final documentation of
the selection.
a) Identification of the main risks for tendering construction project
Mahmud (2015) mentioned that risk management is considered as significant when
bidding for the construction project. One of the significant risks in the tender documentation
process is a lack of clarity, which can lead to uncertainty as well as misunderstanding. Thus,
it is essential to ensure that the tender procedure is complete and documented for the tenders
that help to meet the requirements to be a conforming tender. In the residential dwelling
project, multiple potential risks can arise when responding to the requests for making a quote
or tenders. The risks are usually the same, as it would identify the building project.
 The aspects that contribute a breach of contract and the resultant impact are
important to identify (Scheepbouwer, Gransberg & Puerto, 2017). The process of
terminating the contract is required to find out at the time of making a tender for
the construction project.
 Delays caused by several circumstances outside the control of the builders like
delivery delays impact on delaying on completion of the project and subsequent
delays in the process of payments are required to identify. On the other hand, it is
necessary to ensure that the tender is liable for any delays and impact of this
liability.

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 According to (Adafin, Rotimi & Wilkinson, 2015), evaluation of the cash flows to
make sure that payments can be made to subcontractors of it is not paid by the
client for a specific milestone.
 However, positive risks like currency fluctuations as well as proposed changes to
legislation could simplify the compliance requirements and minimize the overall
costs of the contract.
b) Identification of the main risks involved with involving sub-contractors and suppliers
Cunningham (2015) mentioned that it is essential for a project manager in a dwell-
building construction project to identify the significant risks involved with sub-contractors as
well as suppliers involved with the project. The risks can be listed as followed.
 It is necessary for the project manager to be aware of the risks before tackling a
specific project. The sub-contractor needs to take prior tacking a project and identify
the possible risk factors. Hence, without the step of risks identification, the
subcontractors cannot develop a plan for management.
 Also, prioritizing the risks is significant, as the sub-contractors need to allocate the
resources properly toward mitigation of the risks, which are critical for the project
(Reeves-Latour& Morselli, 2017). In this aspect, the sub-contractors need to be
ranked as per the criteria like the possibility of occurring as well as the level of impact
on the project. Financial risks have a probability that the subcontractors faced against
delays of the project as well as manual errors.
 Adverse physical conditions and obstructions can be the risks in the project. Also,
defective materials, as well as workmanship with the contractor, are required to fix
while dealing with sub-contractors and suppliers.

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 Also, due to negligence or breach of the contractor warranty while designing the
project may generate risks in the project (Yan, Liu & Skitmore, 2018). Negligence of
consultant and shortage of resources may produce risks in the dwell building project.
 Assigning part of the project to a new subcontractor without making informed to the
original subcontractor, financial issues of the contractor as well as non-adherence t the
time-schedule and conditions of the contract are responsible for generating risks in the
project with sub-contractors and suppliers.
Conclusion
The study concludes that tender documentation for a construction project and its
evaluation is essential for the project. Hence, being a project manager, it is necessary to
understand the criteria required to fulfill for the selection of the tender. On the other hand, the
spreadsheet provided in the study would be helpful to know the process of tendering and get a
brief about the quote. The tender assessment performed in the study would be useful to select
the appropriate and suitable quote for the dwell building project.

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References
Adafin, J., Rotimi, J.O. & Wilkinson, S., (2015). Why do the design stage elemental cost plan
and final tender sum differ in New Zealand?. Journal of Financial Management of
property and construction, 20(2), pp.116-131.
Cunningham, T., (2015). Tender Documentation for Construction Projects-An Overview.
Erasmus Beyers, L.J., Mbuya, J.C., Rachidi, M.F. & Kanjere, M.M., 2016. Standardizing the
Technical Tender Process in the Construction Industry. Journal of Economics, 7(2-3),
pp.161-168.
Mahmud, M., (2015). A study of standard tender documents (goods) of PPR 2008 under un
procurement manual (Doctoral dissertation, BRAC University).
Reeves-Latour, M. & Morselli, C., (2017). Bid-rigging networks and state-corporate crime in
the construction industry. Social Networks, 51, pp.158-170.
Scheepbouwer, E., Gransberg, D.D. & Lopez del Puerto, C., (2017). Construction
engineering management culture shift: Is the lowest tender offer dead?. Frontiers of
Engineering Management, 4(1), p.49.
Tu, Z., (2015). The Quality of the Tender Documents should Have a Few Elements. Science
and Technology & Innovation, (3), p.22.
Yan, P., Liu, J. & Skitmore, M., (2018). Individual, group, and organizational factors
affecting group bidding decisions for construction projects. Advances in Civil
Engineering, 6

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