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MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY

ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

AWARDING OF THE CONTRACTS


It is the method used during a procurement in order to evaluate the proposals
(tender offers) taking part and award the relevant contract.
(10) SEVEN STAGES TENDER AWARD PROCESS

1. CONSULTATION, CONTRACT DESIGN AND PACKAGING


The consultation process is the first stage in setting up or renewing a
contract. It will normally occur sometime before the contract start date. For new
contracts, leading service providers are invited to share good practice and views on
our outline proposals. This allows the contract to be practically designed to the
required standard, enabling the provider to fully understand what is to be delivered
and to make it as easy as possible to achieve the requested standards in
performance. The process also informs how the contract is packaged in terms of
length, size, standards, development opportunities and financial structure.

2. CONTRACT DOCUMENTATION
The contract documentation generally includes three parts. The specification,
the terms and conditions of the contract, The pricing document
The specification
The specification describes the work and the standards that are
required. Procurement officers normally prepare it jointly with the relevant
council service to ensure that the proper process and technical input are
included in the specification. The consultation process will have determined
much of the content of the specification.

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

The terms and conditions of the contract

This sets out the contract that will be entered into between us and the
appointed contractor.
The pricing document
This enables the tenderer to set out and provide a price for the work.
Other documents you may be provided with include site plans, drawings and
other supplementary information as appropriate to aid the bidder to submit
an informed tender.
3. INVITATION TO TENDER/BID
When the Architect has completed all the required documents and the Owner
is ready to start the project. There is a need to select the right contractor to do the
job. One procedure is to invite selected Contractors to a minimum number by
means of letters sent to them or to invite contractors to prequalify by means of an
Advertisement or Invitation to Bid.
4. ADVERTISING THE CONTRACT
Once all the contract documentation has been agreed, contracts offered for
tender may be advertised locally and/or in appropriate trade journals and on our
website. Depending upon the contract value, some contracts will also be advertised
Newspaper or Online
The notice published by the Owner (usually 3 times in the newspaper/online)
or the invitations (through letters) issued to prospective bidders giving information
as to the nature of the proposed project, conditions for the issuance of contract
documents. Date of bidding, and estimated cost or information that would give the
Contractor a general idea of the magnitude and extent of the project.
ISSUANCE OF PLANS, SPECIFICATIONS & PROPOSAL FORMS
For a project costing

up to 1 million
up to 5 million
up to 10 million

- 15 days before the date of bidding


- 30 days before the date of bidding
- 45 days before the date of bidding

up to 100 million - 60 days before the date of bidding


above 100 million - 90 days before the date of bidding

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

BID BULLETIN - Additional information on Contract Documents issued to bidders


before the date of bidding. This is because there might be changes in the plans and
specifications, usually the Bid Bulletin is numbered and the date clearly marked.
Example of BID ADVERTISEMENT

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

SAMPLE FORM
PROJECT
OWNER
MANAGER
LOCATION

:
:
:
:

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Sir:
In accordance with your proposal Invitation for the Construction of your proposed _____________________
__________________________________, subject to all the requirements thereof and of your plans,
specifications, and conditions, we propose to furnish, deliver and complete any and all necessary
works as called for by the said plans and specifications. We shall furnish all necessary materials,
plants, equipment, Labor, and complete the work at our own expense at the following price.
I BID PRICE:
For the complete construction of the proposed____________________________________________, in
accordance with the plans and specifications, general conditions, pre-bid bulletins and other related
documents:
____________________
____________________
____________________ (P

) PESOS

We make this proposal with full knowledge of the kind quantity and quality of the articles and services
required and if the proposal is accepted, the undersigned agree to furnish and deliver to OWNER within
two weeks after the signing of the contract of the Contract Price as called for in the General Conditions
and Bidder's instruction.
We propose to complete the work contemplated within __________________________ { } days as called
for in the Instruction to bidders as attached in the specifications.
We agree that the Owner may retain the sum of ______________________ (P) pesos from the amount of
compensation to be paid to the undersigned for each day of delay. After the aforementioned
completion day, Sundays and holidays included. Undersigned also agrees that the bonds may be
forfeited by the OWNER if we fail to perform the work as required by our contract, plans and
specifications.
The undersigned agrees that the above proposal amount includes the Building Permit, Licenses.
and the three percent (3%) Contractor's tax.

__________________________
REGISTERED FIRM NAME
__________________________
SIGNATURE OF MANAGER
__________________________

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5
ADDRESS

5. RESPONDING TO ADVERTISEMENTS
A business interested in bidding or tendering for work should, in the first
instance, formally apply to the named contact person and address quoted in the
advertisement.
This can be done in writing, fax, email or telephone (followed up by a written
application). The advert will usually state whether the tender will be let under the
open, restricted or negotiated procedure.
- Pre-qualifying questionnaire
- Evaluation against criteria
6. PREPARATION OF BIDDING
Bids shall be prepared on the proposal book form in accordance with the
INSTRUCTIONS TO BIDDERS (The list of instructions stipulating the manner on how
bids are to be prepared and conditions for the award of contract.) The original copy,
of the bid shall be accompanied by a BID BOND (proposal bond) in the amount of
two and one half percent (2 ) of the total bid price in the form of cash, certified
check, managers check, or bank draft/guarantee confirmed by a local bank,
payable to the
Office/agency/corporation AS GUARANTEE that the successful bidder shall within
thirty (30) calendar days or less from receipt of notice of award, enter into contract
with the Owner and furnish the PERFORMANCE BOND (The approved form of
Security furnished by the Contractor and his surety as a guarantee of good faith on
the part of the contractor to execute the work in accordance with the terms of the
contract).
His bonds of all except the three lowest bidders may be returned af1er the opening
of
Bids.
A bid bond is important to show proof of guarantee to the project owner that you can comply with the
bid contract and also that you can accomplish the job as laid out in the contract. A bid bond is a
guarantee that you provide to the project owner stating that you have the capability to take on and
implement the project once you are selected during the bidding process. Normally, project owners do
not know if a contractor is financially stable or has the necessary resources to take on a project.
However, because of a bid bond, they will be more comfortable to award a project to a contractor
knowing that if the project fails, they can collect compensation from the surety bond.

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

7. SUBMISSION, OPENING AND ABSTRACTING OF BIDS


A. Bids shall be submitted in a sealed envelope with the name of the project
to be bid and the name of the bidder in capital letters addressed to the
Corporation or Owners concerned.
B. Bids shall be received on or before the designated time and date to be
eligible for consideration. Bids may be withdrawn only in writing before
the time set for opening of bids.
C. The APPROVED AGENCY ESTIMATE (AAE) shall be announced publicly by
the chairman of the Bid and award committee before a\1 bids are opened,
read and recorded.
D. A bid which is not accompanied by the required bid bond on Postqualification statement (Post C-2) shall be rejected outright.
E. Bids shall be opened at the place, date and time specified in the
Advertisement by the PBAC. The bidder or their representative shall
attend the opening of bids received and read with initials of all members
of the Awards Committee.
F. After all bids have been received and opened, the corresponding abstract
of bids shall be prepared. The abstract of bids shall be signed by all
members of the Committee. attaching thereto all bids with their
corresponding bid bonds. and the minutes or proceedings of the bidding.
The abstract of bids shall contain and its location.
1) Name of the project and its location.
2) Time, date and place of bidding
3) Names of bidders and their corresponding bids arranged from the
lowest to highest showing their respective variances in percent
from the Approved Agency Estimate (AAE) the amount of bond and
name of the Surety Company.
8. EVALUATION OF BIDS
A bid which does not comply with the conditions or requirements of the bid
documents shall be rejected by the Committee on Awards. At the time of opening of
bids there shall be at least two (2) competing bidders. In case there is only one
bidder, the bid shall be returned unopened and the project shall be advertised anew

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

for bidding. Should after rebidding, there shall be still only one bidder; the project
may be undertaken by administration or thru negotiated contract.

9. AWARDING OF CONTRACT
A. BY BID CONTRACT
1. The lowest evaluated bid should be accepted if it is found to comply with
all conditions in the call for bids and tender documents, however, no award of
contract shall be made to a bidder whose bid price is more than fifteen
percent (15%) higher or thirty percent (30%1 lower than AAE.
2. The lowest complying bidder shall not be allowed to withdraw his bid.
3. In the event of refusal, inability or failure of the lowest complying bidder to
make good his bid by entering into contract and post his performance bond,
the second lowest complying bidder shall be considered provided that his bid
is lower than the sum of the price of lowest complying bidder plus the
amount of the forfeited bid bond or he reduces his bid to this sum.
4. within thirty (30) days from receipt of the notice of Award, the successful
Bidder shall execute the contract with the Owner. To guarantee the faithful
performance of the Contractor under the Contract, he shall post a bond
(PERFORMANCE BONO) equivalent to ten percent (10%1of the Contract price
In the form of cash, manager's check, Cashier's check, bank draft, guarantee
confirmed by a local bank, letter of credit issued by a reputable bank, surety
bond issued by the GSIS, etc. The performance bond shall be posted in favor
of the Corporation (owner) concerned. This bond is returned after the final
acceptance of the project.
*

"NOTICE TO PROCEED" is given to the winning contractor after the


''NOTICE OF AWARD" when the agency is ready to start the project.

10. NEGOTIATED CONTRACT


1. Negotiated contract may be entered into only where only any of the
following conditions exists and the implementing offrce is not capable of
undertaking the project by administration:
a) In times of emergencies arising from natural calamities where
immediate action is necessary to prevent imminent loss of life and/or
property
b) Failure to award the contract after competitive public bidding for
valid cause, such as where the prices obtained through public bidding
are all above one hundred fifteen percent ( 11 5%) of the AA E and the
bidders
refuse to reduce their prices within such limit.
c) Where the subject project is adjacent or contiguous to an on-going
project and it could be economically prosecuted by the same
contractor provided that he has no negative slippage and has
demonstrated a satisfactory performance.

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

SUBMITTED TO:
AR. MARCELINO DUMPA
INSTRUCTOR
SUBMITTED BY:
BELICAN, RUDESSA MAE
CANSANCIO, CIARA MARY
DELOS REYES, CHARLENE
MALINIS, KAIZER

MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY


ARCH 73 PROFESSIONAL PRACTICE 4: Project Management

AWARDING OF THE CONTRACTS


Architectural Practice and Construction Management by George S. Salvan
http://www.royalgreenwich.gov.uk/info/830/procurement__policy/438/the_tendering_process/5

B.S. ARCH 4A