EMS5CE Tender Evaluation Report: Quantities and Commercial Aspects

This report is an interim tender evaluation of three contractors (A, B, and C) for a construction project located on Mt. Alexandra Road, Essendon. The report, prepared by a cost planner, analyzes the commercial aspects of the tenders, focusing on the accuracy and completeness of the commercial offers, the reasonableness of prices and unit rates, and the presence of any front-loading. The evaluation compares the contractors' tender sums, pricing of the bill of quantities, and completion periods against a pre-tender estimate. Contractor A's tender was found to be the lowest, but with some issues in the bill of quantities. Contractor B's tender was significantly higher than the pre-estimate and contained arithmetic errors. Contractor C's tender was also higher than the pre-estimate, with some issues in the pricing of materials and adherence to standards. The report includes a benchmarking analysis of the contractors and provides a recommendation for clear and established bills of quantities for all trades, including building services.

Tender Evaluation on Commercial Aspect of Quantities: Interim Report
Student Name and student number
1. Executive summery-The principal tendering process for construction normally involves
selection of the contractor that will build the works. Due to increasing and complex
procurement channels, tenders for a wide range of works and services can be obtained
(e.g. a building management contract is a project that is structured to be executed by a
number of different contractors, each working with the client). The pre-tender
calculation helps the cost schedule to be addressed with the tender details from which
any discrepancies can be detected. If there have been adjustments without client consent
then this is the last chance before it is too late to capture them. It also shows that design
changes are added or allow quality technology to be introduced.
This report outlines for the tendering process with a pretender estimate to construct the designated
structure.Key words : Tender, pre estimate , contractors ,bill of quantities
Contents
1. Executive summery.............................................................................................................................1
2. INTRODUCTION...............................................................................................................................2
3. Tender process.....................................................................................................................................2
4. Tenders received..................................................................................................................................4
5. Analysis parameters.............................................................................................................................4
5.1 Tender sum..................................................................................................................................4
5.2 the pricing of bill of quantities.....................................................................................................4
5.3 schedule of bill rates....................................................................................................................4
5.4 schedule of basic price list of materials.......................................................................................4
5.5 completion period........................................................................................................................4
6. Tender comparison..............................................................................................................................4
6.1 contractor A.......................................................................................................................................4
6.2 contractor B.......................................................................................................................................5
6.3 contractor C.......................................................................................................................................7
7. Benchmarking..................................................................................................................................8
8. Recommendation.................................................................................................................................8
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2. INTRODUCTION
The proposed construction site is located on Mt. Alexandra Road, Essendon. Two buildings are to be
construction as below.
a. Store building and,
b. Main structure
-Office/reception with kitchen and water closets ,
- concrete floor,
-walls made of cavity bricks,
- roof consist of timber frames
- total floor area approximated as 127 m2
- there is no basement
- the structure is a single storey
-height approximation is between 2.4-2.7m high from the ground
Figure 1 plan layout overview of the project
3. Tender process
The tendering process for the product will be followed. Since the offers were already submitted,
the process discussed here will start from the idea to the final stage of the tender.
Steps given below will be used to securitize the tenders.
A. Preparatory steps
The procurement department requires a reasonable estimate of the structure's costs (based on good quality
design and costing) and a summary of significant cost items, before any tenders are advertised. The
engineer (The Engineer) should be chosen to prepare such an estimate and named not only for this
preliminary task, but also for supervision of the contractor and for ensuring that work is done according to
the specification and the highest possible performance.
1.1.1 works preparation
The tender preparation starts from generating the business idea to defining the product factors.
The works done in here are as listed below
a. project ide
b. structure specification
c. drafting
d. construction consultations
e. prepare bill of works , for pre estimates [1]
The pre estimates have been made, and will be used to scrutinize the contractors
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1.1.2 Tender publicity
The project was publicly advertised. structure specifications were conveyed to the public for
qualified contractors to apply. In so far as it conforms to the guidelines in the advertising policy,
any organization concerned could apply. The advertisement period shall reflect the criteria for
the issuance of borrowings or donor authorisations, compliance with national or international
governments ' and administrative practices (normally during marketing and award phases),
either globally, locally, nationally and on their range of operations.
1.2 Tendering process
1.2.1 step 1- Receiving the tender bids
Upon an invitation of the tender, make sure documents receipt, drawing maps, quantities and
specifications of tendering materials, date of delivery of the tender and place and time of the
tender are provided (no charges). Every contactor or company who applied the tender must
comply with rules established. The submitted offers must be reported in a recording format, with
the date and time signed and checked and validated, by client or the structure owner. ⠀There will
be o cash accepted here All other deals must be kept safe and unattainable until the offers are
released.
1.2.2 contracts opening
Offers are available in an open and fair manner. All must have been made open to a specific
process and evaluation criteria.
1.2.3 Evaluation of the bidder’s documents
With the opening of each deal, the bidder may be named by the responsible employee, but the
offer will be made fully and in accordance with the published conditions. If it is not
completed for any reason (for example, service or license certification of the Company), a
cover letter will be sent stating why the offer was declined.
1.2.4 Technical analysis
No technical analysis will be done for this tendering process as discussed on the project
description.
1.2.5 Assessing the financial capability of the bidder
Each contractor should be checked , ensure that it meets the financial guidelines established.
1.2.6 Evaluating the best bidder for the contract
The outcomes of 1.37 above will be used to find the best contractor . The price and non-price
worth are compared to established tender analysis document. The bidders are ranked. The best
bidder is chosen
1.3 final stages
1.3.1 awarding the best bidder
The bidder which is ranked position one will be awarded the contact.
1.3.2 supervising the contract
The production will be monitored by the client representative.
1.3.3 dispatch of the product
the product will be dispatched from the contractor’s location to Australia for marketing.
1.3.4 final assessment of the delivered product
engineers inspect product properties. This can be done through sampling. The product must
conform to the measurements and be as described in advertised document
1.3.5 Reimbursement of the payments
The contractor be payed as agreed in documents signed in the contract. This will include any
variations allowed[3].
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4. Tenders received
There were three tenders received. These tenders were from contractors listed below
a. Contactor A
b. Contractor B
c. Contractor C
5. Analysis parameters
The parameters used to analyse the tenders were as outlined below
5.1 Tender sum
Total sums for the contractors as shown below
Contractor
A
contract
or B
contract
or C
Predestinat
es
282142.75
359122.
2 365139 331176
5.2 the pricing of bill of quantities
Each contractor supplied a priced bill of quantity with all trades listed. The documents will be used to
review the contractors as in next topic
5.3 schedule of bill rates
provided by the client, will be used to review the contractors
5.4 schedule of basic price list of materials
catalogue with basic price for materials will be adopted from Catalogue.nla.gov.au.
5.5 completion period
This parameter will be used to Evaluate the best contractors as done in the next section
6. Tender comparison
6.1 contractor A
The comparison will be done in relevance to quantity surveyors pre estimates
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contractor A
Item number Description totals- A
A Preliminaries $ 40,018.00
B substructure $ 40,423.36
C masonry $ 45,741.00
D metalwork $ 1,202.24
E woodwork $ 31,664.91
roofing $ 15,029.89
F finishes $ 45,408.87
G painting $ 3,944.64
H Prime cost sum $ 26,260.50
I provisional sum $ 6,800.00
J subtotal $256,493.41
K Add 10% pr0fit $ 25,649.34
Totals $282,142.75
deviation from
clients estimates
$ (49,033.25)
The total tender costs from client A is $282,142.75. this is less by $ (49,033.25) from the client
quantity surveyor estimate[2].
Financially, contractor has not overrated some products costs as the other contractors
The subtopics of this bill of quantities have not be done well. Finishes should include paintings.
6.2 contractor B
Item
number Description totals- B
1 Preliminaries $ 42,600.00
2 Groundworks $ 37,470.18
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3 concrete $ 11,839.57
4 masonry $ 62,689.11
5 Finishes $ 41,098.41
6 roofing $ 48,572.43
7 Provisional
sum $ 79,027.50
8 prime costs $ 33,825.00
9 performance
bond $ 2,000.00
10 insurance $ 2,000.00
total tender
amount $ 359,122.20
amount in
tender
sheet
$ 361,122.20
deviation
from
clients
estimates
$ 27,946.20
deviation
from its
own
pricing
$ 2,000.00
The total tender costs from client B is $ 359,122.20 this is more by $ 27,946.20
from the client quantity surveyor estimate.
This represents a huge amount for the small contract work to be done.
The contractors bill of quantities has arithmetic errors which totals to 2000 dollars . this Extra amount
in the totals has not been accounted for in the project subtotals.
There is poor schedule of works. A good bill of quantities should follow sequence of activity
occurrences. Finishes should be the last activity that pertains construction in the site . roofing should
be done before finishes.
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6.3 contractor C
Item
number Description totals- C
1 Preliminaries $
139,095.00
2 ground works $
10,495.00
3 concrete $
35,272.00
4 masonry $
48,392.00
5 woodwork $
26,275.00
6 finishes $
49,127.00
7 painting $
3,980.00
8 doors $
642.00
9 windows $
4,273.00
10 glazing $
4,508.00
11 hardware $
1,380.00
12 provisional sum $
35,500.00
13 prime costs sums $
6,200.00
total tender amount $
365,139.00
amount in tender
sheet
$
365,139.00
deviation from
clients estimates
$
33,963.00
deviation from its
own pricing $ -
Total offer amount = $ 365,139.00
Deviation from clients BoQ= $ 33,963.00
Windows amount overrated
Does not follow the standards.
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Pricing of materials ,doors, and masonry should include its associated costs such as door locks, nails
and fittings. Separating this to a hardware section makes procurement complex
Glazing should be part of windows or doors
Materials and resources should be billed according to order of occurrences. Finishes should be the last
billed materials , with exception of building services, i.e. provisional amounts of electricals
7. Benchmarking
All the trades were evaluated based on the commercial bill of quantities from the quantity surveyors’
estimates.
Table 1 Evaluation of the 3 contractors
contactor A contractor B contractor C BoQ client
Trades $183,320.54 $201,669.70 $184,344.00 $187,774.19
provisional sums $6,800.00 $79,027.50 $35,500.00 $51,000.00
prime costs $26,260.50 $33,825.00 $6,200.00 $45,182.00
preliminaries $40,018.00 $42,600.00 $139,095.00 $39,620.00
contingency $1,600.00 $0.00 $6,500.00
margins and
overheads $25,649.00 $2,000.00 $6,500.00 $1,102.00
totals $282,048.04 $360,722.20 $371,639.00 $331,178.19
There was a huge difference for the contractors in both provisional sums and the prime costs allowance.
This difference is due difference in electrical and mechanical services to be provided by the clients
8. Recommendation
a. Clear and established bill of quantities for all trades, including building services
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References
[1]www.Fao.org, "Procurement guidelines for tender preparation, evaluation and award of
contract", Fao.org, 2019. [Online]. Available: http://www.fao.org/3/i1531e/i1531e04.pdf. [Accessed: 15-
Oct- 2019].
[2]"Ultimate Guide to Project Cost Estimating | Smartsheet", Smartsheet, 2019. [Online]. Available:
https://www.smartsheet.com/ultimate-guide-project-cost-estimating. [Accessed: 16- Oct- 2019].
[3]"The 7 Stages of Contract Management", Concord, 2019. [Online]. Available:
https://www.concordnow.com/blog/7-stages-of-contract-management/. [Accessed: 16- Oct- 2019].
[4]C. Emest, "The Australian builders' price-book : containing the price of building materials and the cost
of lab... | National Library of Australia", Catalogue.nla.gov.au, 2019. [Online]. Available:
https://catalogue.nla.gov.au/Record/5979092. [Accessed: 17- Oct- 2019].
APPENDIX
PRE-ESTIMATES
Item number Description totals
1 Preliminaries $ 46,119.00
2 ground works $ 6,738.00
3 concrete $ 11,746.00
4 masonry $ 58,979.00
5 woodwork $ 31,668.00
6 Roofing $ 48,934.00
7 finishes $ 29,708.00
8 provisional sum $ 51,000.00
9 prime costs sums $ 46,284.00
10
11
12
13
total tender amount $ 331,176.00
amount in tender sheet $ 331,176.00
deviation from its own
pricing $ -
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Figure 2 quantity surveyors estimates
contactor A contractor B contractor C BoQ client
Trades $183,320.54 $201,669.70 $184,344.00
$187,774.1
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provisional sums $6,800.00 $79,027.50 $35,500.00 $51,000.00
prime costs $26,260.50 $33,825.00 $6,200.00 $45,182.00
preliminaries $40,018.00 $42,600.00 $139,095.00 $39,620.00
contingency $1,600.00 $0.00 $6,500.00
margins and
overheads $25,649.00 $2,000.00 $6,500.00 $1,102.00
totals $282,048.04 $360,722.20 $371,639.00
$331,178.1
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