Principles of Tendering and Estimating

Principles of Tendering and Estimating

Principal- Samco Mining Traders invites the locals who are eligible for providing mining equipment which will be used in mining quarries needed for building roads.

Tenderer- Any person who has the capability of providing the services needed by Samco Traders.

The written tender is grounded on the following principles below;

1. This task shall be carried out in an open and honest manner.
2. The task shall only be taken by those contractors who have ability of handling that particular work.
3. The conditions for the tender shall be similar for all the tenderers.

• Tendering Procedure covered, including;

1.3.1. Obligations of the principal

Assistance– The contractor shall use his effort to make sure he renders assistance to the contractor in case he is needed.

Services and facilities—All the services and facilities shall be made available to the contractor (Brook, 2016, p. 120).

• The charges on tender document shall not exceed 5000/=
• The tenders are invited to hand over their Financial and Technical Proposal for transportation services needed.
• No tenderer shall be allowed to through the document making the purchase of the document.
• The proposal preparation and negotiation cost for the contract is not acknowledged as a direct cost of the assignment.

1.3.1.2.  Pre-tender

3.1 The writing of the proposal shall be done in English

3.2 During preparation of the proposal, the tenderers must concentrate on the following;

1. If the firm contemplates that it lacks all the proficiency for the task
2. Alternative professional staff shall not be proposed and only one Curriculum Vitae may be submitted for each position(Moelmann, 2009, p. 178)

1.3.1.3.   Tender document

3.3. The following information shall be provided by the proposal using the attached standard form

1. A fleeting description on the firm organization and outlining the current knowledge concerning the same task.
2. A description of the methodology and work plan for performing the assignment.

• The list of a recommended staff team

1. CVs recently signed by the recommended specialized team and certified representatives submitting the proposal.
2. Estimates of the total staff inputs

3.6 All the financial information shall not be included in The Technical Proposal

3.7. During the preparation of the technical proposal, the tenderers shall express the prices of their services in figures, commissions, and gratuities to be paid if there is any. The proposal must remain valid for 60 days after the submission date.

1.3.1.4.  Call for tenders

Samco Mining Company invites different tenderer to submit their proposal for the provision of transportation services to enable the company to transport their mines from the transportation site to where the mines will be carried to the various places needed. The quoted prices should be net inclusive of all taxes.

The filled tender documents MUST be sealed off in plain envelopes marked with the tender number and be deposited in the tender box provided at Mwalimu plaza, along elimu road at 2^nd floor tender box.

The opening of tender will be done when all the representatives representing the tenderers who choose to attend the opening at the boardroom.

The selection of tenderer will be done based on Quality Cost Based Selection centered with the policies laid down in the Public Procurement and Asset Disposal Act.

1.3.1.5. Receipts of tenders

4.1 The tenderers to prepare the number of duplicates of the proposal as indicated.

4.2 The original and all copies of Technical Proposal shall be placed in a sealed envelope labeled TECHNICAL PROPOSAL (Seyeres, 2009, p. 321)

1.3.1.6. Closing of tenders

4.3 All the tenders must be submitted the exact date mentioned above and late submission shall not be accepted since the closing of tender will be done on the 4^th September 2018.

6.1 The opening of the proposal shall take place when all the representatives representing the tenderers are present. The prices and the name of every tenderer will be announced loudly when the financial proposal is opened (Brandt, 2007, p. 456).

6.2 The clients selected by the tenderer will notify the tenderer in case the proposal did not meet the required marks after carrying out technical proposal evaluation. Their financial proposal will also be reverted to them immediately after accomplishment of the selection procedure thereafter, the remaining tenderers will be invited to attend the opening of the financial proposals.

6.3 The determination of whether the financial proposals are complete will be done the finance committee.

6.4. The financial score will be determined by the following method Sf= 100X^FM/f where sf is the financial score; F is the proposal price (Downings, 2011, p. 230).

6.5 The tender evaluation will be done within 21 days beginning from the date of opening the tender.

• The handling of price variations will be done by procuring entity within 30 days.

• The negotiation will involve discussion of the technical proposal, work plan or proposed methodology and any suggestions.
• The contract draft form will also be included in the negotiation.

7.3 Appointment of team will be done by the procuring entity for the purpose of negotiation.

7.4 Award of the contract

7.5 The awarding of the contract will be done based on the negotiation. The shortlisting of the tenderer who won the contract shall be done while those who will not qualify, their financial proposal will be returned to them.

7.6 The tenderer nominated is required to start carrying on the task on the date and site quantified in the document

7.7 The signing of the contract shall take place within 30 days by the two parties starting on notification date of the contract award (Kiiver, 2014, p. 19).

• Obligation of the Tenderer

General– The contractor will carry out his duties in accordance with the SC

Banning of contradictory activities– The contractor shall not participate in activities conflicting to the work assigned to them.

1.3.2.1.  Evaluation of the proposal

5.1Tthe financial proposal shall not be accessed by the evaluators until the conclusion of technical evaluation (Uher, 2009, p. 96).

5.2 The following criteria will be used during the evaluation of the proposals by the appointed committee.

	POINTS
The tenderer experience on the task relating to the assignment	20
Competence of the recommended work plan and methodology in replying to the terms of reference.	30
Capability and Qualification of the key staff for the assignment	30
Sustainability to the transfer of Technology program	20
Total Points	100

1.3.2.2.  Formulation of tender and estimates

Not tender shall be allowed to participate in unlawful activities not highlighted in the contract such as failing to pay tender fees or bribing the company to be awarded the tender. All the relevant statutory and other legal requirements shall be observed and the tenderers shall not collide with other tenderers, provide or accept the secret commission, present inflated tenderers and influence of contract decision by improper means.

The following estimates are made concerning the contract;

1.3.2.2.1.  Project labor

 The number of workers needed in this assignment is estimated to be 8 and they should be ready to deliver to enhance the performance of the task.

1.3.2.2.2.  Project plant

A number of vehicles required in handling the task specified is estimated to be 4 and they shall assist in carrying the mined materials to numerous places they are needed.

1.3.2.2.3.   Project material

The above specified task requires numerous materials needed to carry out the project.

1.3.2.2.4. Project subcontractors

This task is estimated to require only 2 subcontractors who got knowledge concerning mining.

1.4. Confidentiality-Both the parties will not reveal at all identifications evidence trendy the duration of the contract also afterwards the expiration of the agreement for 24 months

 

2. Financial arrangement and justification

                      2.1.  Summarization of the cost

Cost	Currency	Amount
Subtotal   Levies   Overall Amount of Financial Proposal		…………………………..   ……………………………   …………………………..

                      FINANCIAL PROPOSAL SUBMISSION FORM

                                                                               ……………………………………(DATE)

To………………………………………………………

    ………………………………………………………….

  (Name and address of the client)

Ladies/ Gentlemen

We, the signatories, agree to offer the carriage services for the firm centered on the Request for Proposal dated……………………. Our attached Financial Proposal is for the sum of ………………………………………………………………………………… (amount to be included in words and figures) inclusive of taxes.

We remain

                                                                                           Yours sincerely

                                                              ………………………………. (Authorized signature)

                                                              …………………………………… (Name and title of signatory)

                                                              ………………………………… (Firms name)

                                                             …………………………………………. (address)

 

3. CONTRACTUAL TERMS

   3.1.  Services-All the services needed will take place at the location identified at the beginning of the document (Kelvin, 2008, p. 56).

3.2. Authorized Representatives– Any action needed to be taken will be executed by the officials specified in the document.

3.3. Laws Leading the contract– This contract is the meaning and clarification and the relationship between the parties and shall be administered by the Laws of Australia.

3.4. Language-The execution of the agreement has been done in the English dialectal which shall be the obligatory language for all troubles associating to the meaning and explanation of the agreement.

3.5. Taxes and Duties– All the contractors and subcontractors shall pay their fees, taxes, and duties under the law of Australia (Greg, 2008, p. 21)

3.6. Commencing of services– the contractor will start carrying out services 30 days after the contract becomes effective.

3.7.Expiration of the contract– The termination of the contract shall take place at the end of the effective date specified in SC.

3.8. No Breach– The failure of a party to fulfill any of its duties under the contract shall be considered to be a breach.

3.9. Payment–The time the contractor is unable to perform the services, he or she shall be entitled to continue to be payment.

3.10. Termination of the contract-The termination of the contact shall take place in less than thirty days through a written notice.  (Downings, 2011, p. 78).

3.11. Interest on Delayed Payment– The selected tenderer will be paid within 30 days of receipt of the invoice and relevant documents and in case of delays then the contractor shall be paid simple interest on every single day of delay.  (Ayeni, 2011, p. 32).

4. Quality Assurance and Control Requirements

4.1. Customer quality focus. The business relies on their customers and therefore should comprehend recent and forthcoming wants of the customers, requirement and specifications.

4.2. Quality leadership. Leaders should form and uphold internal environment in which the people can completely contribute in accomplishing the objectives of the organization. This can be achieved by providing resources to the people, establishing clear vision and trust.

4.3. Process approach- This principle will lead to elimination of risk, establishment of clear responsibilities, analyzing and measuring of the capability of key activities.

4.4. Mutual benefit- A mutual beneficial relationship existing between the principal and the tenderer should lead to optimization of resources and costs.

5. Safety Requirements

5.1. Disagreement Settlement-The settlement of disputes which cannot be done cordially within thirty days after receipt of one party of the other party request then for such amicable clearance maybe by either  the adjudication and the final decision of a person to decide between the gatherings (Atkin, 2014, p. 34).

5.2. Amicable Settlement– Both the principal and tenderer shall use their best effort to settle the arising disputes amicably or in connection with contractor its interpretation

Atkin, B., 2014. Total Facilities Management. s.l.:Ridders digest.

Ayeni, O., 2011. Principles of Tendering and Estimating. s.l.:Hauffe Gruppe.

Brandt, T., 2007. Tendering. s.l.:Wiley.

Brook, M., 2016. Estimating and Tendering for Construction. s.l.:Adventure Works Press.

Collins, S., 2008. Effect of Competitive Tendering on Value in Construction. s.l.:Grupo Planeta.

Downings, M., 2011. Winning Government Tenders. s.l.:Gakken.

Greg, B., 2008. Construction Tendering and Estimating. s.l.:Adventure Works Press.

Kelvin, C., 2008. Tendering for Civil Engineering Contracts. s.l.:HarperCollins.

Kiiver, P., 2014. The Practice of Public Procurement. s.l.:Cambridge University Press.

Lewis, H., 2012. Bids, Tenders and Proposals. s.l.:Scholastic.

Marsh, P., 2008. The Art of Tendering. s.l.:Sanoma.

Moelmann, L., 2009. The law of Performance Bonds. s.l.:McGraw-Hill education.

Rees, G., 2012. Code of stimating Practice. s.l.:Hachette Livre.

Sayers, P., 2012. Managing Sports and leisure Facilities. s.l.:Informa.

Seyeres, P., 2009. Competitive Tendering. s.l.:China Publishing Company.

Uher, T., 2009. Fundamentals of Building Contract Management. s.l.:Simon & Schuster.

 

Previous answers to this question

---

Get The Answer