Tendering Process For Construction Projects: Spreadsheet, Cover Letter, And Evaluation Committee Essay.

From the tender documents and other information provided:

(a) Complete the Subcontractor/supplier spreadsheet for the trades for which you are requesting quotes, and for the supply of bricks, and aluminium windows and doors. You may use fictitious names and contact numbers for subcontractors and suppliers.

(b) You would include a covering letter to accompany the documentation that you send; a separate letter format for each trade and supply product. Prepare a sample covering letter to accompany the documentation that you are sending: prepare a letter for one of the trades and another for one of the supply products.

Included in this assignment are two (2) sample quotations from wallboard fixers to complete the lining of the dwelling detailed on the plans. The quotations are for the same project and the parties have done their own measure during a site inspection. The extent of the works was verbally communicated to both potential sub-contractors by you, the builder, so no variation to the work is anticipated.

The quotations are ‘lump sum’ and contain a number of conditions which will need to be assessed before you make your decision on which quotation to accept. West Coast Plasterboard is not known to you but Sound Interiors P/L has come highly recommended. You are to analyse these quotations and choose your preferred subcontractor for this trade. Provide a justification for your decision detailing your concerns by comparing these quotations. 
 

Overview of Tendering Process for Construction Projects

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.

a) Subcontractor/ supplier spreadsheet for the trades

b) Covering letter

SOUND INTERIORS PTY LTD

ABN: 12 345 678 910

Email: [email protected]

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.

Sincerely,

[NAME] 

[Authorised Signatory]

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.

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.
• 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.
• 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. 

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