HKIS QSD PQSL Series 2015 Report on Tenders · HKIS QSD PQSL Series 2015 Report on Tenders Staw Wong BSc(Hons) LLB(Hons) MHKIS RPS ... in FoT & Summary of BoQ/SoR Qualifications

HKIS QSD PQSL Series 2015HKIS QSD PQSL Series 2015HKIS QSD PQSL Series 2015Report on TendersReport on TendersReport on Tenders

Staw WongStaw WongBSc(Hons) LLB(Hons) MHKIS RPS(QS) MCECABSc(Hons) LLB(Hons) MHKIS RPS(QS) MCECA

Executive Director, Davis Langdon KPK, An AECOM CompanyExecutive Director, Davis Langdon KPK, An AECOM Company

June 24, 2015

June 24, 2015

AgendaAgendaAgenda

IntroductionIntroductionIntroductionExamination of TendersExamination of TendersExamination of TendersIrregularities of TendersIrregularities of TendersIrregularities of TendersPost-Tender Query/QuestionnairePost-Tender Query/QuestionnairePost-Tender Query/QuestionnaireTender InterviewTender InterviewTender InterviewTender EvaluationTender EvaluationTender EvaluationTender ReportTender ReportTender ReportQ&AQ&AQ&A

June 24, 2015Report on Tenders

IntroductionIntroductionIntroduction

Purposes of Tender EvaluationPurposes of Tender EvaluationPurposes of Tender EvaluationSelect a competent contractor with best valueSelect a competent contractor with best valueSelect a competent contractor with best valueAvoid ambiguities/risks brought to post-contractAvoid ambiguities/risks brought to post-contractAvoid ambiguities/risks brought to post-contract

General RulesGeneral RulesGeneral RulesConditions of Tender / Instructions to TenderersConditions of Tender / Instructions to TenderersConditions of Tender / Instructions to TenderersTechnical circularsTechnical circularsTechnical circulars


Introduction (Cont’d)Introduction (Cont’d)Introduction (Cont’d)

Relevant Technical CircularsRelevant Technical CircularsRelevant Technical CircularsWBTC No. 4/92WBTC No. 4/92WBTC No. 4/92ETWB TC (Works) No. 41/2002ETWB TC (Works) No. 41/2002ETWB TC (Works) No. 41/2002ETWB TC (Works) No. 8/2003ETWB TC (Works) No. 8/2003ETWB TC (Works) No. 8/2003DB TC (Works) No. 3/2014DB TC (Works) No. 3/2014DB TC (Works) No. 3/2014DB TC (Works) No. 4/2014DB TC (Works) No. 4/2014DB TC (Works) No. 4/2014DB TC (Works) No. 8/2014DB TC (Works) No. 8/2014DB TC (Works) No. 8/2014


Introduction (Cont’d)Introduction (Cont’d)Introduction (Cont’d)Key WordsKey WordsKey Words

ConfidentialityConfidentialityConfidentialitySafetySafetySafetyFairnessFairnessFairnessProfessional JudgmentProfessional JudgmentProfessional JudgmentBest PracticeBest PracticeBest Practice


Examination of TendersExamination of TendersExamination of Tenders

Examination of TendersExamination of TendersExamination of TendersConditions of Tender / Instructions to Conditions of Tender / Instructions to Conditions of Tender / Instructions to TenderersTenderersTenderersNumber of shortlisted tenderersNumber of shortlisted tenderersNumber of shortlisted tenderers

Normally 3 to 4Normally 3 to 4Normally 3 to 4Don’t jump straight to the lowest 3 or 4!!Don’t jump straight to the lowest 3 or 4!!Don’t jump straight to the lowest 3 or 4!!

Initial ChecksInitial ChecksInitial ChecksAll addenda properly incorporated?All addenda properly incorporated?All addenda properly incorporated?Missing / Additional pagesMissing / Additional pagesMissing / Additional pagesAmount(s) in FoT & Summary of BoQ/SoRAmount(s) in FoT & Summary of BoQ/SoRAmount(s) in FoT & Summary of BoQ/SoRQualifications / ExclusionsQualifications / ExclusionsQualifications / Exclusions


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)

Detailed ChecksDetailed ChecksDetailed ChecksForm of TenderForm of TenderForm of TenderArithmetical checkArithmetical checkArithmetical checkTender submissionsTender submissionsTender submissionsPriced BoQ/SoRPriced BoQ/SoRPriced BoQ/SoR


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Form of TenderForm of TenderForm of Tender

Amounts in Words and FiguresAmounts in Words and FiguresAmounts in Words and Figurescf. Amount in Summary of BoQ/SoRcf. Amount in Summary of BoQ/SoR

Duly Completed?Duly Completed?Duly Completed?Name of tendererName of tendererAuthorized signatureAuthorized signatureDuly stamped and witnessedDuly stamped and witnessedDuly stamped and witnessedBusiness registration number and expiry dateBusiness registration number and expiry dateBusiness registration number and expiry dateContract Period (if applicable)Contract Period (if applicable)Contract Period (if applicable)


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Arithmetical CheckArithmetical CheckArithmetical Check

Casting of Cash ColumnCasting of Cash ColumnCasting of Cash ColumnExtension (Quantity x Rate)Extension (Quantity x Rate)Extension (Quantity x Rate)Carrying Totals to Summary CorrectlyCarrying Totals to Summary CorrectlyCarrying Totals to Summary CorrectlyArithmetical Error Copying ErrorArithmetical Error Copying ErrorArithmetical Error Copying Error


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Arithmetical Error Copying ErrorArithmetical Error Copying ErrorArithmetical Error Copying Error


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Arithmetical Error Copying Error (Cont’d)Arithmetical Error Copying Error (Cont’d)Arithmetical Error Copying Error (Cont’d)


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Tender SubmissionsTender SubmissionsTender Submissions

Price SubmissionPrice SubmissionPrice SubmissionFoT and BoQ/SoRFoT and BoQ/SoR

Technical SubmissionTechnical SubmissionTechnical SubmissionOutline programmeOutline programmeMethod statementMethod statementOrganizationOrganizationOrganizationTrack recordTrack recordTrack recordSite layout planSite layout planSite layout plan


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Priced BoQ/SoRPriced BoQ/SoRPriced BoQ/SoR

Unpriced ItemsUnpriced ItemsUnpriced ItemsIncluded ItemsIncluded ItemsIncluded ItemsExcluded ItemsExcluded ItemsExcluded ItemsLump Sum PricesLump Sum PricesLump Sum PricesPricing of the PreliminariesPricing of the PreliminariesPricing of the PreliminariesConsistency in PricingConsistency in PricingConsistency in PricingDaywork %Daywork %Daywork %


Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Examination of Tenders (Cont’d)Priced BoQ/SoR (Cont’d)Priced BoQ/SoR (Cont’d)Priced BoQ/SoR (Cont’d)

Unreasonably High / Low Quantities (SoR)Unreasonably High / Low Quantities (SoR)Unreasonably High / Low Quantities (SoR)Unreasonably High / Low RatesUnreasonably High / Low RatesUnreasonably High / Low RatesFront LoadingFront LoadingFront LoadingAmendments to BoQ/SoRAmendments to BoQ/SoRAmendments to BoQ/SoR

DescriptionsDescriptionsDescriptionsQuantitiesQuantitiesQuantitiesPre-priced rates / amountsPre-priced rates / amountsPre-priced rates / amounts


Irregularities of TendersIrregularities of TendersIrregularities of Tenders

Irregularities of TendersIrregularities of TendersIrregularities of Tenders

Form of TenderForm of TenderForm of TenderTender SubmissionsTender SubmissionsTender SubmissionsQualifications / ExclusionsQualifications / ExclusionsQualifications / ExclusionsPriced BoQ/SoRPriced BoQ/SoRPriced BoQ/SoR


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Form of TenderForm of TenderForm of Tender

Tender SumTender SumTender SumWords in Form of TenderWords in Form of TenderFigures in Form of TenderFigures in Form of TenderFigures in Form of TenderTotal in Summary of BoQ/SoRTotal in Summary of BoQ/SoRTotal in Summary of BoQ/SoR


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Form of Tender (Cont’d)Form of Tender (Cont’d)Form of Tender (Cont’d)

General RulesGeneral RulesGeneral RulesWords FiguresWords FiguresWords Figures Summary of BoQ/SoRWords Figures Summary of BoQ/SoRWords Figures Summary of BoQ/SoREither Words or Figures left blank or illegibleEither Words or Figures left blank or illegibleEither Words or Figures left blank or illegibleBoth Words or Figures left blank or illegibleBoth Words or Figures left blank or illegibleBoth Words or Figures left blank or illegible

Rules for Remeasurement ContractRules for Remeasurement ContractRules for Remeasurement Contract


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Form of Tender (Cont’d)Form of Tender (Cont’d)Form of Tender (Cont’d)

OthersOthersOthersName of tendererName of tendererDuly stamped and witnessedDuly stamped and witnessedDuly stamped and witnessedAuthorized signatureAuthorized signatureAuthorized signatureBusiness registration number and expiry dateBusiness registration number and expiry dateBusiness registration number and expiry dateContract Period (if applicable)Contract Period (if applicable)Contract Period (if applicable)

Always Check Conditions of Tender!!Always Check Conditions of Tender!!Always Check Conditions of Tender!!


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Tender SubmissionsTender SubmissionsTender Submissions

Tender AddendaTender AddendaTender AddendaAcknowledged receipt?Acknowledged receipt?BoQ/SoRBoQ/SoRBoQ/SoROther parts of tender documentsOther parts of tender documentsOther parts of tender documents

Missing / Additional PagesMissing / Additional PagesMissing / Additional PagesTechnical SubmissionsTechnical SubmissionsTechnical Submissions


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Qualifications / ExclusionsQualifications / ExclusionsQualifications / Exclusions

Excluded Items in BoQ/SoRExcluded Items in BoQ/SoRExcluded Items in BoQ/SoRAmendments to BoQ/SoRAmendments to BoQ/SoRAmendments to BoQ/SoRCover LetterCover LetterCover LetterTechnical SubmissionsTechnical SubmissionsTechnical Submissions

Outline programmeOutline programmeOutline programmeStandard termsStandard termsStandard terms


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Qualifications / Exclusions (Cont’d)Qualifications / Exclusions (Cont’d)Qualifications / Exclusions (Cont’d)

Clarify PurposeClarify PurposeClarify PurposeRemind Tenderer of ConsequencesRemind Tenderer of ConsequencesRemind Tenderer of ConsequencesRequest Unequivocal WithdrawalRequest Unequivocal WithdrawalRequest Unequivocal Withdrawal

Proceed with caution in negotiationProceed with caution in negotiationProceed with caution in negotiation


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Priced BoQ/SoRPriced BoQ/SoRPriced BoQ/SoR

Arithmetical ErrorsArithmetical ErrorsArithmetical ErrorsUnauthorized AmendmentsUnauthorized AmendmentsUnauthorized Amendments

Descriptions and/or quantitiesDescriptions and/or quantitiesProvisional quantitiesProvisional quantitiesPre-priced rates / amountsPre-priced rates / amounts

Unreasonably High / Low RatesUnreasonably High / Low RatesUnreasonably High / Low RatesFront LoadingFront LoadingFront Loading


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Priced BoQ/SoR (Cont’d)Priced BoQ/SoR (Cont’d)Priced BoQ/SoR (Cont’d)

Other Common IrregularitiesOther Common IrregularitiesOther Common IrregularitiesLump sum price without breakdownLump sum price without breakdownUnpriced itemsUnpriced itemsUnpriced itemsIllegible ratesIllegible ratesIllegible ratesMissing BoQ/SoR pagesMissing BoQ/SoR pagesMissing BoQ/SoR pagesAddenda not incorporated in BoQ/SoRAddenda not incorporated in BoQ/SoRAddenda not incorporated in BoQ/SoR

Percentage Adjustment FactorPercentage Adjustment FactorPercentage Adjustment Factor


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Arithmetical ErrorsArithmetical ErrorsArithmetical Errors

Error in Casting of Cash ColumnsError in Casting of Cash ColumnsError in Casting of Cash ColumnsError in Extension in Cash ColumnsError in Extension in Cash ColumnsError in Extension in Cash ColumnsError in Carrying Totals to SummaryError in Carrying Totals to SummaryError in Carrying Totals to Summary


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Error in Casting of Cash ColumnError in Casting of Cash ColumnError in Casting of Cash Column


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Error in Casting of Cash Column (Cont’d)Error in Casting of Cash Column (Cont’d)Error in Casting of Cash Column (Cont’d)


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Error in ExtensionError in ExtensionError in Extension


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Error in Extension (Cont’d)Error in Extension (Cont’d)Error in Extension (Cont’d)





















APPROACH 1APPROACH 1





Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Correction of Error in ExtensionCorrection of Error in ExtensionCorrection of Error in Extension

BoQBoQBoQAlter either rate or extension (but NOT both)Alter either rate or extension (but NOT both)

RemeasurementRemeasurementRemeasurementTendered rates cannot be changedTendered rates cannot be changed

SoRSoRSoRSame as BoQSame as BoQBoth quantities and rates may be alteredBoth quantities and rates may be altered


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Unauthorized Amendments to BoQ/SoRUnauthorized Amendments to BoQ/SoRUnauthorized Amendments to BoQ/SoR

Descriptions and/or QuantitiesDescriptions and/or QuantitiesDescriptions and/or QuantitiesBoQBoQSoRSoRSoR

Provisional QuantitiesProvisional QuantitiesProvisional QuantitiesPre-priced rates / amountsPre-priced rates / amountsPre-priced rates / amounts


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Amendments to Pre-Priced ItemsAmendments to Pre-Priced ItemsAmendments to Pre-Priced Items

Provisional SumsProvisional SumsProvisional SumsIf excluded / amended correct tender sumIf excluded / amended correct tender sum

Prime Cost SumsPrime Cost SumsPrime Cost SumsIf excluded / amended correct tender sumIf excluded / amended correct tender sumProfit and attendance?Profit and attendance?

Prime Cost RatesPrime Cost RatesPrime Cost RatesIf excluded / amended correct tender sumIf excluded / amended correct tender sum


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Unreasonably High / Low RatesUnreasonably High / Low RatesUnreasonably High / Low Rates

How to Judge?How to Judge?How to Judge?Compare amongst tender ratesCompare amongst tender ratesCompare rates from estimates or other projects Compare rates from estimates or other projects Compare rates from estimates or other projects

Why Need to Spot?Why Need to Spot?Why Need to Spot?Unfavourable in variationsUnfavourable in variationsLimited power to adjust incorrect rates in post-Limited power to adjust incorrect rates in post-Limited power to adjust incorrect rates in post-contract stagecontract stage


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Unreasonably High / Low Rates (Cont’d)Unreasonably High / Low Rates (Cont’d)Unreasonably High / Low Rates (Cont’d)

What to Do?What to Do?What to Do?Double check quantity in BoQ/SoRDouble check quantity in BoQ/SoRCheck with designers on likelihood of changesCheck with designers on likelihood of changesCheck with designers on likelihood of changesRequest confirmation that tenderer can comply Request confirmation that tenderer can comply Request confirmation that tenderer can comply with requirements (for low rates only)with requirements (for low rates only)Communicate with tenderersCommunicate with tenderersSuggest reasonable rates for variationsSuggest reasonable rates for variationsSuggest reasonable rates for variations


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Unreasonably High / Low Rates (Cont’d)Unreasonably High / Low Rates (Cont’d)Unreasonably High / Low Rates (Cont’d)

Agreement of Reasonable RatesAgreement of Reasonable RatesAgreement of Reasonable RatesTender sum shall remain unchangedTender sum shall remain unchangedProvisional QuantitiesProvisional QuantitiesProvisional QuantitiesProvisional BoQProvisional BoQProvisional BoQ

Refusal to Agree Reasonable RatesRefusal to Agree Reasonable RatesRefusal to Agree Reasonable RatesConfirm to abide by unreasonable ratesConfirm to abide by unreasonable ratesConfirm to abide by unreasonable ratesAssess implication in tender reportAssess implication in tender reportAssess implication in tender report


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Front LoadingFront LoadingFront Loading

Cash FlowCash FlowCash FlowUnfavourable to EmployerUnfavourable to EmployerUnfavourable to EmployerAbnormal Pricing LevelAbnormal Pricing LevelAbnormal Pricing Level

Establishment cost of the preliminariesEstablishment cost of the preliminariesEstablishment cost of the preliminariesTrades with earlier completion (e.g. excavation)Trades with earlier completion (e.g. excavation)

Reasonable Prices for Interim PaymentsReasonable Prices for Interim PaymentsReasonable Prices for Interim PaymentsAssess Implication in Tender ReportAssess Implication in Tender ReportAssess Implication in Tender Report


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Other Common IrregularitiesOther Common IrregularitiesOther Common Irregularities

Lump Sum Price without BreakdownLump Sum Price without BreakdownLump Sum Price without BreakdownRequest submission of breakdown (or missing Request submission of breakdown (or missing priced page)priced page)Check if rates (and quantities) are appropriateCheck if rates (and quantities) are appropriateCheck if total matches the lump sumCheck if total matches the lump sumRequest to readjust if necessaryRequest to readjust if necessaryIf serious malpractice, consider disqualificationIf serious malpractice, consider disqualificationIf serious malpractice, consider disqualification


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Other Common Irregularities (Cont’d)Other Common Irregularities (Cont’d)Other Common Irregularities (Cont’d)

Unpriced ItemsUnpriced ItemsUnpriced ItemsRequest to confirm included elsewhereRequest to confirm included elsewhereRequest unit rate for variations if necessaryRequest unit rate for variations if necessaryRequest unit rate for variations if necessary

Illegible RatesIllegible RatesIllegible RatesDivide inserted amount by quantityDivide inserted amount by quantityRequest confirmation of the rate so derivedRequest confirmation of the rate so derivedRequest confirmation of the rate so derived


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Other Common Irregularities (Cont’d)Other Common Irregularities (Cont’d)Other Common Irregularities (Cont’d)

Missing BoQ/SoR PagesMissing BoQ/SoR PagesMissing BoQ/SoR PagesRequest to confirm included elsewhereRequest to confirm included elsewhereRequest submission of missing pagesRequest submission of missing pagesRequest submission of missing pagesRequest unit rate for variations if necessaryRequest unit rate for variations if necessaryRequest unit rate for variations if necessary

Addenda not Incorporated in BoQ/SoRAddenda not Incorporated in BoQ/SoRAddenda not Incorporated in BoQ/SoRNew itemNew itemNew itemRevised quantity or description Revised quantity or description Revised quantity or description Deleted itemDeleted itemDeleted item


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Percentage Adjustment FactorPercentage Adjustment FactorPercentage Adjustment Factor

Adjustment Factor =Adjustment Factor =Adjustment Factor =

Tendered Sum* – Corrected Sum* Tendered Sum* – Corrected Sum* Tendered Sum* – Corrected Sum* Corrected Sum*Corrected Sum*Corrected Sum*

* Exclude provisional sums, PC sums, PC rates and * Exclude provisional sums, PC sums, PC rates and * Exclude provisional sums, PC sums, PC rates and other pre-priced amountsother pre-priced amountsother pre-priced amounts

* Profit and attendance?* Profit and attendance?* Profit and attendance?* Preliminaries?* Preliminaries?* Preliminaries?


Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Irregularities of Tenders (Cont’d)Percentage Adjustment Factor (Cont’d)Percentage Adjustment Factor (Cont’d)Percentage Adjustment Factor (Cont’d)

Trivial Adjustment FactorTrivial Adjustment FactorTrivial Adjustment FactorRequest Confirmation of CorrectionsRequest Confirmation of CorrectionsRequest Confirmation of CorrectionsShow Adjustment Details in Letter of IntentShow Adjustment Details in Letter of IntentShow Adjustment Details in Letter of Intent


Post-Tender Query/QuestionnairePost-Tender Query/QuestionnairePost-Tender Query/Questionnaire

Post-Tender Query/QuestionnairePost-Tender Query/QuestionnairePost-Tender Query/QuestionnairePurposesPurposesPurposes

Need for Chance to Clarify/ConfirmNeed for Chance to Clarify/ConfirmNeed for Chance to Clarify/ConfirmRequest SubmissionsRequest SubmissionsRequest SubmissionsRequest Clarification / ConfirmationRequest Clarification / ConfirmationRequest Clarification / ConfirmationPost-Tender VariationsPost-Tender VariationsPost-Tender Variations


Post-Tender Query/Questionnaire (Cont’d)Post-Tender Query/Questionnaire (Cont’d)Post-Tender Query/Questionnaire (Cont’d)PitfallsPitfallsPitfalls

Manipulation of Supplementary InformationManipulation of Supplementary InformationManipulation of Supplementary InformationIntroduction of New QualificationsIntroduction of New QualificationsIntroduction of New QualificationsUnfairness to Conforming TenderersUnfairness to Conforming TenderersUnfairness to Conforming TenderersCounter-OfferCounter-OfferCounter-Offer


Tender InterviewTender InterviewTender Interview

Tender InterviewTender InterviewTender InterviewWhen? Why? How?When? Why? How?When? Why? How?

When?When?When?Why?Why?Why?

PTQ vs. tender interviewPTQ vs. tender interviewUnderstand tenderer’s proposalUnderstand tenderer’s proposalRaise in-depth queriesRaise in-depth queriesMeet tenderer’s proposed teamMeet tenderer’s proposed teamMeet tenderer’s proposed teamAllow tenderers to raise questionsAllow tenderers to raise questionsAllow tenderers to raise questions


Tender InterviewTender InterviewTender InterviewWhen? Why? How? (Cont’d)When? Why? How? (Cont’d)When? Why? How? (Cont’d)

How?How?How?ParticipantsParticipantsOrderOrderOrderAgendaAgendaAgendaConfirmationConfirmationConfirmation


Tender Interview (Cont’d)Tender Interview (Cont’d)Tender Interview (Cont’d)AgendaAgendaAgenda

Introduction of AttendeesIntroduction of AttendeesIntroduction of AttendeesTenderer’s PresentationTenderer’s PresentationTenderer’s Presentation

Company profileCompany profileSite organization and layoutSite organization and layoutProposed programmeProposed programmeMethod statement, etc.Method statement, etc.Method statement, etc.


Tender Interview (Cont’d)Tender Interview (Cont’d)Tender Interview (Cont’d)Agenda (Cont’d)Agenda (Cont’d)Agenda (Cont’d)

Confirmation of Tender PriceConfirmation of Tender PriceConfirmation of Tender PriceEmployer’s ClarificationEmployer’s ClarificationEmployer’s Clarification

Project expectation or objectivesProject expectation or objectivesSpecial terms or specification requirementsSpecial terms or specification requirements

Tenderer’s ClarificationTenderer’s ClarificationTenderer’s ClarificationTender qualificationsTender qualificationsArithmetical errorsArithmetical errorsUnreasonable rates and prices, etc.Unreasonable rates and prices, etc.


Tender Interview (Cont’d)Tender Interview (Cont’d)Tender Interview (Cont’d)Agenda (Cont’d)Agenda (Cont’d)Agenda (Cont’d)

Additional or Varied Requirements (if any)Additional or Varied Requirements (if any)Additional or Varied Requirements (if any)Tenderer’s QuestionsTenderer’s QuestionsTenderer’s QuestionsAny Other BusinessAny Other BusinessAny Other BusinessTime for ReplyTime for ReplyTime for Reply


Tender EvaluationTender EvaluationTender Evaluation

Tender EvaluationTender EvaluationTender EvaluationEvaluation CriteriaEvaluation CriteriaEvaluation Criteria

Price OnlyPrice OnlyPrice OnlyLowest-price compliant bidLowest-price compliant bid

MEAT ApproachMEAT ApproachMEAT ApproachMost Economically Advantageous TenderMost Economically Advantageous TenderCombined scoring mechanism (price and Combined scoring mechanism (price and technical)technical)Two-enveloped systemTwo-enveloped system

Establish Criteria before Invitation!Establish Criteria before Invitation!Establish Criteria before Invitation!


Tender Evaluation (Cont’d)Tender Evaluation (Cont’d)Tender Evaluation (Cont’d)Calculation of Combined ScoreCalculation of Combined ScoreCalculation of Combined Score

Lowest Tender Price Lowest Tender Price Price Score = x A %*

Tender Price of TendererPrice Score = x A %*

Tender Price of Tenderer

Tenderer’s ScoreTechnical Score = x B %*

Tenderer’s ScoreTechnical Score = x B %*

Highest ScoreTechnical Score = x B %*

Highest Score* A% + B% = 100%* A% + B% = 100%* A% + B% = 100%

Simple Example Only – Many Other MethodsSimple Example Only – Many Other MethodsSimple Example Only – Many Other Methods


Tender Evaluation (Cont’d)Tender Evaluation (Cont’d)Tender Evaluation (Cont’d)Common Criteria for Technical ScoreCommon Criteria for Technical ScoreCommon Criteria for Technical Score

Track RecordTrack RecordTrack RecordRecords of Safety, Convictions, etc.Records of Safety, Convictions, etc.Records of Safety, Convictions, etc.Resources (Staffing, Plant & Equipment)Resources (Staffing, Plant & Equipment)Resources (Staffing, Plant & Equipment)Technical ProposalTechnical ProposalTechnical ProposalCompliance of RequirementsCompliance of RequirementsCompliance of Requirements


Tender ReportTender ReportTender Report

Tender ReportTender ReportTender Report

Brief History of Tendering ProcessBrief History of Tendering ProcessBrief History of Tendering ProcessAnalysis of Tenders and NegotiationsAnalysis of Tenders and NegotiationsAnalysis of Tenders and NegotiationsConclusion with RecommendationConclusion with RecommendationConclusion with RecommendationAudit Trail for Selection ProcessAudit Trail for Selection ProcessAudit Trail for Selection Process


Tender Report (Cont’d)Tender Report (Cont’d)Tender Report (Cont’d)Typical SectionsTypical SectionsTypical Sections

Project Title and Reference NumberProject Title and Reference NumberProject Title and Reference NumberDate and “Confidential” MarkDate and “Confidential” MarkDate and “Confidential” MarkSummary of Tender SumsSummary of Tender SumsSummary of Tender SumsDeclining TendersDeclining TendersDeclining TendersValidity PeriodValidity PeriodValidity PeriodBasis of ReportBasis of ReportBasis of Report


Tender Report (Cont’d)Tender Report (Cont’d)Tender Report (Cont’d)Typical Sections (Cont’d)Typical Sections (Cont’d)Typical Sections (Cont’d)

Examination of Individual TendersExamination of Individual TendersExamination of Individual TendersReport on Priced BoQ/SoRReport on Priced BoQ/SoRSubmission compliance or outstandingSubmission compliance or outstandingSubmission compliance or outstandingComparison of unit rates and/or quantitiesComparison of unit rates and/or quantitiesComparison of unit rates and/or quantitiesAny alternative tender and/or time proposedAny alternative tender and/or time proposedAny alternative tender and/or time proposedQualificationQualificationQualification

Reference to Others’ InputReference to Others’ InputReference to Others’ InputConclusion and RecommendationConclusion and RecommendationConclusion and Recommendation


Tender Report (Cont’d)Tender Report (Cont’d)Tender Report (Cont’d)Other MattersOther MattersOther Matters

Contract Background / ScopeContract Background / ScopeContract Background / ScopeTender Evaluation CriteriaTender Evaluation CriteriaTender Evaluation CriteriaReconciliationReconciliationReconciliationPotential for Saving (if needed)Potential for Saving (if needed)Potential for Saving (if needed)Impact on PC SumImpact on PC SumImpact on PC Sum


Tender Report (Cont’d)Tender Report (Cont’d)Tender Report (Cont’d)Other Matters (Cont’d)Other Matters (Cont’d)Other Matters (Cont’d)

Refusal to Agree Reasonable RatesRefusal to Agree Reasonable RatesRefusal to Agree Reasonable RatesSensitivity analysisSensitivity analysis

Front LoadingFront LoadingFront LoadingDiscounted cash flow based on programmeDiscounted cash flow based on programmeCompare present values of tender pricesCompare present values of tender prices

Refusal to Abide by TenderRefusal to Abide by TenderRefusal to Abide by TenderLegal advice on possible remediesLegal advice on possible remedies


Q&AQ&AQ&A

Thank YouThank YouThank You

[email protected]@davislangdon.com

June 24, 2015

June 24, 2015

Documents

HKIS QSD PQSL Series 2015 Report on Tenders · HKIS QSD PQSL Series 2015 Report on Tenders Staw Wong BSc(Hons) LLB(Hons) MHKIS RPS ... in FoT & Summary of BoQ/SoR Qualifications