Single Stage Selective Tendering
A Single Stage Selective Tendering is recommended as the tendering procedure to the Kelham Island Development (Client). This tendering process allows the client to appoint a main contractor for the whole work with design responsibility on a fixed price.
The tendering process under design & build in a Single stage selective is done at RIBA Stage 4 so that the tendering contractors receive the most detailed information to base their bid on. The bidding contractors are given a predetermined amount of time to submit their tenders. These are then analyzed, in terms of cost and quality, before a single contractor is declared the preferred contractor and they enter into a contract with the client to deliver the tendered works under NEC4 option C Target Cost with Activity schedule.
Figure 1: RIBA Plan of work 2020 (RIBA Architecture.com, 2021)
FIGURE 2: Design & Build Tendering process
Design & build procurement process main contractor is responsible for the design & construction phase. Clients will have a single point of contact for design & construction, which transfers significant risk to the main contractor
Figure 3: Contractual relationship between client & other parties in D&B
The single stage D&B provides clients with cost certainty and early commitment on price. Complete Design & construction risk is allocation. Will provide a competitive price to the client compared to others. Contractor will collaborate with the complete and well documented design and construction responsibilities. The experience of a contractor in a similar project will influence the selection of specialists as required for the project. The contractor will contribute to alternative construction methods and value engineering processes.
SELECTION OF CONTRACTOR
The Single stage tendering in a Design & Build (D&B) procurement route will provide the client a most competitive price. The Single stage selective tendering gives the opportunity to the client shortlist or preselect contractor to participate in the tendering process on the basis of previous experience, communication and recommendation.
Pre-qualification questionnaires (PQQ) will be issued to the shortlisted contractors to ensure that they have the experience, the financial standing and the HSE record. Shortlist 4-5 preferred contractors with the PQQ and issue the invitation to tender (ITT)
Duration of tendering is 12 weeks from the invitation to tender (ITT).
The contractor has to submit the technical proposal and proposal before the deadline to the client to assess it. Client agent will assess the technical proposal to check the compliance with client requirements. Commercial evaluation only needs to be done for the proposal which is complying to client technical requirements.
Rules of Tender
An ITT will be supplied to the list of Contractors. It will include but not limited to the following information;
A letter of invitation to tender,
The form of contract, contract conditions and amendments,
Project brief which includes the employers’ requirements,
Design Outline Drawings and Programme for the works
A tender pricing documents
Below we have provided a draft copy of a standard documentation required to be send to the Preferred tenderers. The documents are to comply and filled by each tenderer along bid. Any changes to these standard forms can be done by us after the client meeting.
Invitation to tender Letter: A formal procurement document sent by the client to the preferred contractors to bid for the proposed work. It provides the contractors with instructions and documents needed for them to part take in the bidding process.
Instructions and information on the tendering procedures: This covers all the instruction and information in the tendering process. Length of contract, management of tender documents including incomplete and late submissions, key dates, validity of tender and tendering rules. Also provide information on the documents and details needed to be include in a tender submission
Specification of the Requirement: Helps the client to identify key risk and issues of the contractor. Able to set out contractor objectives and purpose of the project. Contractor have completed to the requirement and submit details mentioned to be consider for the tender.
List of attachments: Includes all the documents released by the client to the contractor to make a successful bid. Typically consist of a Standard form of contract considered for the project, Design drawing, specification, Project outline plan,
Declaration and information to be provided by tenderer: The Declaration and Undertaking ask for the contractor’s acknowledgment of the given information submitted in the tender documents. They are important in the tender process. It is used to make a statement that the details given in the undertaking are true to the knowledge of the declarer
DRAFT - INVITATION TO TENDER LETTER
Kelham Island Development (KID)
[Insert address of tenderer]
Dear ….
INVITATION TO TENDER (ITT) for the Development of Mixed used building at Cornish Street, Sheffield
1 Your organisation along with others is invited to offer a tender for provision of the above, to the specification outlined in the attached documents. Enclosed are:
Document 1 Instructions and information on the tendering procedures.
Document 2 Specification of the Requirement.
Document 3 List of attachments.
Document 4 Declaration and information to be provided by tenderer.
2 Please read the instructions on the tendering procedures carefully. Failure to comply with them may invalidate your tender which must be returned by the date and time given below.
3 Two copies of your tender must be received by [insert client contact name and address of the person to whom the tender should be sent] no later than [insert time and date]. Late tenders will not be considered.
4 If having read the enclosed specification you decide not to submit a tender, I would be grateful if could send your reasons (though you are under no obligation to do so) to [insert client contact name], at the above address marked 'No Tender'.
5 Please contact me if you have any questions about the tendering procedure. The enclosed Document 1 also contains details for providing you with further information or clarification of the KID’s (Client) requirement.
I look forward to your response.
Yours sincerely
DOCUMENT 1
INSTRUCTIONS AND INFORMATION ON TENDERING PROCEDURES
1 These instructions are designed to ensure that all tenders are given equal and fair consideration. It is important therefore that you provide all the information asked for in the format and order specified. Please contact [insert contact name, address, e-mail address, telephone and fax numbers] if you have any doubts as to what is required, or you have difficulty in providing the information requested. Pre-tender negotiations are not allowed.
Contract Period
2 The contract is to be for a period of 2.5 years.
Incomplete Tender
3 If the information were submitted for in the ITT and non-submission of Specification is leads to rejection of Tenders.
Returning Tenders
4 All bid documents must be submitted as a hardcopy. The KID will send a confirmation of receipt of bid email.
Manuscript bids including envelopes and packages must bear no reference to the tenderer by name; franking machines which automatically print the company’s name should not be used. Tenders must be delivered by [insert time and date]
Receipt of Tenders
5 Tenders will be received up to the time and date stated. Those received before the due date will be retained unopened until then. It is the responsibility of the tenderer to ensure that their tender is delivered not later than the appointed time.
Acceptance of Tenders
6 By issuing this invitation the KID is not bound in any way and does not have to accept the lowest or any tender and reserves the right to accept a portion of any tender, unless the tenderer expressly stipulates otherwise in their tender.
Bribe
7 Offering a bribe of any kind in relation to obtaining this or any other contract with the KID will disqualify your tender from being considered.
Confidentiality of Tenders
8 Please note the following requirements, you must not:
Tell anyone else what your tender price is or will be, before the time limit for delivery of tenders.
Try to obtain any information about anyone else's tender or proposed tender before the time limit for delivery of tenders.
Make any arrangements with another organisation about whether or not they should tender, or about their or your tender price.
Failure to comply with these conditions may disqualify your tender.
Costs and Expenses
9 You will not be entitled to claim from the KID any costs or expenses which you may incur in preparing your tender whether or not your tender is successful.
Debriefing
10 Following the award of contract, debriefing will be included in the letter sent to unsuccessful bidders.
Evaluation Criteria
11 The tender process will be conducted in a manner that ensures tenders are evaluated fairly to ascertain the most economically advantageous tender.
12 Your capability to perform the contract will be evaluated using award criteria. The award criteria set out in Annex 1 [KDI to develop a form and table showing evaluation criteria}
Tender Period
14 Due to the intensive evaluation process, the KID requires tenders to remain valid for the period specified in Document 4
Basis of the Contract
15 The specification in Document 2, and the terms and conditions in Document 3, together with any special requirements, will form the basis of the contract between the successful tenderer and the KDI.
16 This timetable is provisional and may be subject to change but will be adhered to by the KDI as far as reasonably possible.
ACTIVITY
TIMESCALE
Advertise (and Voluntary advert (through OJEU):
TBC
Start of clarifications stage / any questions about the specification or procurement process :
TBC
End of clarifications stage :
TBC
Submission deadline for receipt of bids :
TBC
If required: Inform bidders of Selection Stage outcome :
TBC
If required supplier clarification interviews :
TBC
Inform bidders of award :
TBC
10 days stand still period if applicable :
TBC
Award contact :
TBC
Format of Bids
18 Tenderers should present their proposals in the following format:
Section 1 Table of Contents
Section 2 Management Summary
Section 3 Meeting the Specification
Section 4 Cost and Charging Arrangements
Section 5 Declarations, Undertakings and Attachments (see Document 4)
Conclusions
19 Whilst every endeavour has been made to give tenderers an accurate description of the KID’s requirement, tenderers should make their own assessment about the methods and resources needed to meet those requirements.
DOCUMENT 2
SPECIFICATION OF REQUIREMENT
1 Introduction/Background
TBD with client after the approval of development proposal
2 Purpose
TBD with client after the approval of development proposal
3 Management Information
The successful tenderer will be asked to provide management information to meet the needs of the KID. The minimum information needs are:
4 Security of Data
Ask the tenderer to submit a security plan that explains how they will ensure that Client or personal data will be protected.
5 Costs
5.1 Please give a detailed breakdown of costs (excluding VAT).
5.2 The successful tenderer should provide details of discounts for prompt payment.
6 VAT
6.1 Please state clearly when submitting prices whether or not VAT will be charged.
6.2 Where the contract price agreed between the client and contractor is inclusive of any VAT, further amounts will not be paid by the client should a vatable supply claim be made at any later stage.
6.3 Where the overall contract price is exclusive of VAT, the KID will pay any VAT incurred at the prevailing rate. If the VAT rate changes the KID will pay any VAT incurred at the new rate.
6.4 It is the responsibility of tenderers to check the VAT position with HMRC before submitting a bid.
DOCUMENT 3
LIST OF ATTACHMENTS
STANDARD CONTRACT OF CONDITIONS (RECOMMEDED FORM OF CONTRACT - NEC4)
DESIGN DRAWINGS
PROJECT PLAN
SPECIFICATION
KEY REQUIREMENT
DOCUMENT 4
DECLARATIONS AND INFORMATION TO BE PROVIDED BY THE TENDERER
Declarations
1 ...............................................……………………………. (Name of tenderer) declares that we accept the KID’s standard terms and conditions included at Document 3 as the basis of the contract; and
2 declare that we have not communicated to any other party the amount or approximate amount of the tender price other than in confidence and for the express purpose of obtaining insurances or a bond in connection with this tender. The tender price has not been fixed nor adjusted in collusion with any third party, and
3 declare that the tender will remain valid until (insert a date) and that we are not entitled to claim from the KID any costs or expenses incurred in preparing the tender or subsequent negotiations whether or not the tender is successful.
signed on behalf of the Tenderer ..................................................................................
Undertaking
The KID requires all tenderers to make full and frank disclosure to the client in the form of a signed undertaking in respect of any or all of the following:
a) any state of bankruptcy, insolvency, compulsory winding up, administration, receivership composition with creditors or any analogous state of relevant proceedings.
b) any convictions for a criminal offence committed by the tenderer (or being a company, by its officers or any representative of the company);
c) any acts of grave misconduct committed by the tenderer (or being a company, by its officers or any representative of the company) in the course of their business or profession/the company's business.
d) any failure by the tenderer (or being a company, by its officers or any representative of the company) to fulfil their obligations relating to payment of Social Security contributions; and
e) any failure by the tenderer (or being a company, by its officers or any representative of the company) to fulfil their obligations relating to payment of taxes.
Selection of Tender
It is recommended to the Client that not to select the preferred contractor on lowest bid. The selection must be based on compliance to client key requirement and offers best value which will be based on below scoring matrix or similar as client requirement.
Created by Jinu Kuruvilla