Detailed Tender Assessment Report: Sydney CBD Hotel Project

This report assesses tenders for a hotel development project in Sydney CBD, focusing on a fixed-price contract with a 500-day period. As the Project Surveyor, the task involves inspecting and analyzing tenders, then advising the Employer on the appropriate selection. The report outlines the information tenderers should submit, including company history, past experience, current workload, price breakdown, preliminary construction program, project team details, site layout plans, and financial information. It also details the objectives of tender examination, such as reviewing allowances, value for money, cost savings, and feasibility. Key factors considered in the tender report include project tenderers, scope of tender works, comparison between tenderers, and tender validity. Furthermore, it includes the valuation of variations in kitchen designs, calculating costs for different kitchen sizes and tiling options, showcasing a comprehensive approach to tender assessment.

Task 2a – Tender Assessment
Introduction
Proposals have been submitted for the main contract tender by various tendered w.r.t the
proposed development of hotel in Sydney CBD. The characteristic of contract is (a) Fixed
Price (lump sum), (b) Period of Contract 500 days as detailed under the documents relating to
tender. The Employer has employed you as the Project Surveyor and the responsibility
encompass inspection and analysis of all tenders that have been received and preparation of
report to assist and advice the Employer in selection of appropriate tender.
Task 2a
a) Briefly describe what information should be submitted by the
tenderers during the return of the tender and explain the purpose
of assessing such information.
The tendered is required to submit the following tender during the process of return of a
tender document:
Company history, background, policies and procedures
The background and history of the company provides insight into the nature of business of
company to the clients. The background should show cast values of the company, ethics and
capabilities of the company along with show cases the intention of the company for the
project.
Company awards and past experience
The awards and experience of the company presents details regarding the ability and
demonstrate whether the company is suitable in executing the project.
In this point details regarding the past experiences and awards received shall be highlighted
displaying the overall track record of the company for the purpose of analysis of client and
serve as proof of standing and an apt bidder for the purpose of tender.
Companies current workload
The number of projects that bidder has in flow or in progress shall be detailed to demonstrate
the current workload of the company. The same helps to find or analyse whether the company
shall be able to complete the project within the given timeline. It shall also help to know, the
reason for no award being rewarded to the bidder lately.

As detailed that the contract of works is a fixed lump sum, it shall be required to provide a
lump sum price. The price shall represent the payment for the entire work and the same shall
be in alignment with the present tender documents.
Price breakdown
The detailed breakup of costings shall be used. The break of Project costs shall be in a
preferred schedule. The preferred schedule shall be given to the bidder in the process of the
tender. The intention behind such action is to provide the client a detailed and open
comparability among the potential contractors. The above allows the client to analyse and
examine the cost comparison, any inflated or overly deflated price shall be reviewed and
assessed. Thus, in a nutshell, the price breakdown aids the client for analyzing the actual cost
that shall be incurred for the project in comparison to the cost of the project as proposed by
the Quantity surveyors.
Preliminary construction program
The Preliminary Program development exhibits an estimated deadline for the purpose of
competing the proposed project. Further, the program shall ink out all the strategic and key
elements of the project while stating an approximate time period of the project work which
shall encompass the initiation and date of completion.
Since the initial program developed is preliminary, the same shall be subject to further
amendment and updation from time to time as the project develops and new information and
details are made available.
Project team
The detail shall include information about the project team, key employees among the group
of employees who are proposed to work on the project. The details shall also ink out the
academic qualification of individuals along with past project history. The above shall help in
better analysis and understanding for the client.
Site layout & staging plans
Under a general parlance, the contractors of the project shall be provided plans of site which
are edited for the purpose of demonstrating the layout of the site proposed in the given
precinct. The details of the plan shall be inked professionally and sufficiently and shall
indicate the following:

(a) Palace or site plant and equipment,
(b) Amenities of site
(c) Construction zones;
(d) Access to site and egress.
The Staging plans are intended to represent different phases of the project like
(a) Location of establishments,
(b) Demolition of structure;
(c) Super Structure;
(d) Sequences of Concrete;
(e) Egress walkways.
The said plan is developed with an intention to provide the client with a myopic guide of the
project in order to enable him to understand the proposal and how everyday construction
work shall be carried out.
Financial information
The Financial information of the company exhibits details regarding the financial position of
the company. Generally cash flow is used for the purpose of analysis and the same is used for
determining the credibility of the company. The said information helps to judge whether the
company has sufficient funds to initiate the project and hire sub contractors before receiving
any progress payments.
b) Describe the objectives of examination of tenders and what factors
should be considered in the preparation of the tender report.
The intention behind a tender report is to provide insights on the brief past of the tendering
process of the project. The process of evaluation is generally established under the guidance
of the committee known as valuation committee. The aim of such action is to provide
guidance on each of the tender submitted.
The basis of report shall be derived by a series of factors, objectives of the tenderer and risk
borne by each of the tenderer. The report shall provide recommendation of the most suitable

tender which shall meet all the desired expectation and shall provide the best result at the
given resource. (CIPS Knowledge, 2013)
Objectives for the examination of tenders:
Review of allowances
For the purpose of review of allowances, it is important to determine that tenders have been
considered for all important and germane tasks, phases and trades involved are within the
scope of work defined. This assures that items have not been misled and or purposely
excluded.
Value for money
The objective of value for money states that the work done under the proposed project must
comply with the documents so that it can be established that the outcome of the project is
what has been expect rather being similar or alike to the expected, if the consumer want only
expected and not similar or alike.
Consideration of cost savings
Tenders, sometimes helps us to achieve cost savings by various way such as:
 Other methods
 Finishes
 Equipment & Fittings
It is important to consider above terms for the purpose of cost saving. This can be done by
establishing that proposals are beneficial for the client and are align with client’s expectations
which will help the company to achieve to save the cost.
Feasibility of proposal
For the purpose of feasibility of proposal, one need to establish that the expected outlook of
works is practical and feasible. Also the work need to be produced in time and as per client
expectation. To establish this, there will be a panel which will assess the program of works
ensuring it is in line with the projected lump sum price.
Determine the appropriate tender
Main objective of the tender examination is to find the perfect bidder for the project.

Factors to be considered in a tender report:
In order to accurately gauge tenders and produce a concise tender report, panel can develop a
tender evaluation spreadsheet which can be used for tender evaluation. Spreadsheet helps the
panel to easily assess information and rank tenders upon various factors. The spreadsheet
report should enlist the following factors:
Project tenderers
A list of each of the bidders who tender on the project should be prepared. The list should
briefly mention various important details of each bidders, inclusive of:
 Company name
 Lump sum price
 Contact details
Scope of tender works
A report containing summary of proposed scope of works including work need to be done
and work not to be done should be made. This scope can be inclusive of further construction
details including representation of construction phases and proposed nominated
subcontractors.
Comparison between tenderers
Tenders should be ranked for the purpose of comparing tenders. On the basis of such ranking
tenders shall be assessed acknowledging both both financial and non-financial information on
the basis of merit.(Capital Work Management Framework, 2011). On the basis of such
comparison, a conclusion shall be formed regarding the tender that shall be most favorable.
Tender validity
The duration for which the tender is valid should be stated; as well further assessment should
be made to ensure the documents are valued and priced as current to the documents. This will
ensure the tender is valid, legitimate and of use.
Task 2b – Valuation of Variations
The computation of Valuation of Variation has been done for both types of kitchen. In regard
to the kitchen one , the computation has been done based on attachment 3 to portray the
Square meterage of the kitchen is 2.507m² & the same shall be priced at $100.28
(2.507x40.00) increasing to $112.82 (2.507x45.00) for allowance in future. With regard to

kitchen two, kitchen square meterage is computed at 3.20m² (1700mm² x 1900mm² = 3.20m²)
resulting in cost of $129.20 (3.23 x 40) or increasing to $146.00 (3.23 x 45) for allowance in
future. Accordingly the planned cost for 900 typical kitchen plans shall be $116,280 (900 x
129.20) or $131,400 (900 x 146.00).
Beside above, We have made calculation with respect to implication of cost w.r.t AIs. The
rate of $38 and $40 has been used as highlighted in the calculations. The same shall result in
costing $ 95,266 (38 x 2.507) or $100,280 (40 x2.507) in labour to tile 2.507m².
In addition, tiles rate which is $190m² shall be included, and the same shall be put into square
meters, and the same shall amount to (38 + 190) x 2507 = $571, 596 or (40 + 190) x 2507 =
$571,576 for tiling small kitchens. In regard to large kitchens, the labour cost shall be
$122,740 (3.23 x 38) or $129,200 (3.23 x 40) for labour to tile the large 900 kitchens. The
combined cost of labour and tile cost shall tantamount to (38 + 190) x 3230= $ 736,440 or
(40 + 190) x 3230 = $742,900.