Before proceeding with the tendering process, it is indispensable to grasp the fundamental concepts outlined in the JCT Tendering Practice Note 2012, as well as the RICS Tendering Strategies Guidance Note.
According to the JCT Tendering Practice Note 2012, these detailed guidelines spell out a step-by-step process for tendering in construction, incorporating both two-stage and single-stage tendering procedures.
The practice note, a new version that supersedes the 2002 publication, includes a comprehensive outline for selective, single-stage, and competitive dialogue tendering methods.
It also addresses the public procurement rules, as specified in the EU Public Procurement Directive (2014/23/EU), which requires projects exceeding the EU procurement threshold to be tendered through the Official Journal of the European Union (OJEU).
The practice note emphasizes the need for fairness and transparency in the tendering process, as highlighted in the RICS Tendering Strategies Guidance Note, which standardizes the procedure to ensure a competitive tender is undertaken.
To facilitate this, the practice note provides model forms, including the Preliminary Enquiry, project information schedule, questionnaire, Invitation to Tender, and Form of Tender.
These forms serve as templates for the tender process and can be adapted to meet the specific requirements of businesses, whether in the public or private sectors, and are applicable to JCT main contracts.
Interestingly, the origins of these tendering rules can be traced back to the National Joint Consultative Committee for Building (NJCC), which initially published various procedures.
Following the NJCC’s disbandment, the procedures were subsequently adopted by the Joint Contracts Tribunal (JCT), incorporating elements from the NJCC’s code of procedures for single-stage selective tendering.
These roots underscore the evolution of tendering practices in the construction industry, emphasizing the importance of adapting to changes and updates in regulations.
Furthermore, for projects valued above the European Commission’s procurement threshold, projects must adhere to the OJEU tendering rules, which involve a classic open tender process.
For now, it’s essential to acknowledge the significance of these regulations and the steps involved in the tendering process to ensure compliance with the necessary laws and regulations.
JCT Practice Note 2012JCT Practice Note 2012
In the UK, there is a free Publicly Available Specification (PAS 91:2013) that aims to standardize PQQ (Pre-Qualification Questionnaire) across the industry, allowing for consistency between supply chain databases and enabling easier engagement with suppliers. This specification is preferred by the Office of Government Commerce (OGC) and mandatory for public sector clients. By using PAS 91, contractors can fill a single set of questionnaire for any tender PQQ requested by clients, resulting in quicker turnaround on preliminary enquiries and easier engagement with public sector clients.
The PAS does not provide project-specific questions, however. Contractors must add these to qualify for the work. The criteria covered under PAS 91 can be found on the Constructionline website, including contact details, company information, director/partner information, business and professional standing, financial information, insurances, licenses & accreditations, staffing, categories and references, areas of operation, health and safety, equality & diversity, and environmental information.
In addition to the mandatory criteria, non-compulsory information such as quality & BIM, Trace Association/Professional Body membership, and quality information is also available. Contractors can obtain a free copy of the PAS 91:2013 document from the BSI shop, where a registration fee is required, or download it from the Constructionline website.
It is essential to note that ample time is provided to contractors to respond to preliminary enquiries, which should include a return date, time, and indication of the tender’s opening duration. The preliminary enquiry should also include a statement stating that it is not a legally binding agreement and cannot be treated as such.
Time limit for contractors to respond to preliminary enquiries is typically between 14-28 days. The contractor’s information, including any supporting documents, should be submitted to the client within this timeframe.
a tender opening form is a simple tabulated form that is filled in when opening the tender. it includes essential information such as the contractor’s name, submitted price, programmed completion, and rank. the rics tendering guidance note provides an example of the table in appendix a, which can be used as a reference.
reviewing the tender is a critical step in the process. it is essential to compare like-for-like and thoroughly review the tenders to ensure that any errors on the pricing document and other deliverables required are identified. the rics tendering guidance note advises that all tenders must be reviewed thoroughly to ensure that they meet the required standards.
checks undertaken during the review process include:
- submission of the tender has been completed as requested in the itt
- calculation checks
- programme date errors
- check for conflicts of interest
when dealing with errors found during calculation checks, there are two possible options: accept the error or withdraw. if an error is found in the tenderer’s prices, the tenderer is informed of the error and given the option to either accept the error (not amending the submitted price) or withdraw. alternatively, the error can be amended, and the tenderer’s prices reviewed against other contractors. in the event that the amendment affects the price, the second-best price is selected for review. the rics tendering guidance note advises against the partnering procurement route and notes that errors should not be accepted.
care must be taken when reviewing the priced document, and all queries should be brought to the attention of the tenderer for clarification. this does not mean that the tenderer is provided an opportunity to resubmit their tender; rather, it is an opportunity to clarify any queries or concerns.
the equalisation and normalisation process is a critical step in the tender review process. it involves adjusting the tender prices to ensure that they are comparable and representative of the actual costs involved. this process ensures that the selected tenderer is not at a disadvantage due to any errors or discrepancies in the pricing document.
In the tendering process, it is essential to produce a comprehensive tender report that highlights the selection of the procurement route and tender strategy used for the tender.
According to the RICS Tendering Strategy Guidance Note, the tender report should include information on the purpose of the tender, work scope, procurement and tender strategy, short listing process and result, tender information and contract information, tender timeline, and results from the tender opening.
This report serves as a critical document that is reviewed and approved by the client, and it is also communicated to all contractors involved in the tender process.
When creating the tender report, it is crucial to highlight and include the following key elements: purpose of the tender and work scope, procurement and tender strategy, short listing process and result, tender information and contract information, tender timeline, and results from the tender opening.
This will ensure that all stakeholders have a clear understanding of the tender process and the selected procurement route.
Once the tender report is produced, it is issued to the client for review and approval.
Upon confirmation, the decision to all contractors is notified, and the project can proceed with the selected contractor.
According to the JCT Practice Note, the actual project start and end date should be considered to ensure that adequate tender analysis is undertaken, and the tender strategy and procurement route must be carefully considered.
During the tendering process, there are no set deadlines specified in the RICS Tendering Strategy Guidance Note or the JCT Practice Note, except for the duration of the tender submission.
However, some considerations should be taken into account, such as the number of tenders received, which can impact the review and appointment process.
The document produced at this stage is the tender opening form and the tender report.
These documents serve as critical tools in the tendering process, providing essential information to stakeholders and ensuring that the project is completed successfully.
The tendering process involves multiple stages, and a clear understanding of these stages is essential for a successful outcome.
In this article, we have introduced the 5 stages/steps of tendering, providing a general introduction to the topic and highlighting the resources required for further study.
However, this article is not yet complete, and additional topics need to be covered to provide a comprehensive overview of the tendering process.
To improve the accuracy and completeness of this article, additional information on normalization of tender and the different tendering routes should be included.
Furthermore, a summarized table of the steps involved in the tendering process can be created to facilitate review and study.