1.0 PREFACE
As a final year’s student of Civil Engineering’s faculty,
we were given a task or an assignment to have an interview with any
professional engineer in order to get information regarding one of the
procedures of building construction. From all the topics given, I have chose
topic of “Types of Tender” that is usually used in construction industry.
In order to finish this assignment, we have to interview
a professional engineer or General Manager in gathering all the information
regarding this topic. So, I have decided to interview a Group Station Manager /
Special Projects of a company named Global E-Teaching Sdn.Bhd., which is Encik
Nik Ahmad Kamal bin Nik Mustapha. I would like to thank to him for spending his
time with me and my friends for the interview. From the interview, I have
gathered many information regarding this topic.
I would also like to give special thanks to my lecturer
of Construction Project (ECM317), Encik Abdul Halim for giving me and the other
friends the guideline in finishing this assignment. Encik Abdul Halim has also
helped us by giving us advices and information regarding this assignment and
always monitors our progression.
Besides that, I would also like to thank to all my
friends for helping me and also guide me a little bit in finishing this assignment.
With the helps from all of them, I have successfully finished this assignment.
2.0 DETAIL INFO OF ENGINEER
NAME : Nik Ahmad Kamal bin Nik Mustapha
AGE : 47
GENDER : Male
MARITAL STATUS : Married
PROFESSION : Group Station Manager / Special
Projects
COMPANY ADRESS : Perlis Power Plant,
persisiran pantai sungai baru,
02700 simpang Empat,
perlis indera kayangan.
EDUCATION BACKGROUND : - Sek. Men. Besut, Terengganu.
- Sek. Men. Sains Dungun, Terengganu.
- Universiti Kebangsaan Malaysia.
- Universiti Teknologi Malaysia.
- University in United Kingdom.
JOB EXPERIENCE : - Felda (Kota Tinggi / Seroja /
Jengka 18 /Gua Musang).
-
Felda Head Quarters.
-
Second Power Power in Pahlawan.
-
Power Plant in Melaka.
-
Perlis Power Plant
3.0 TYPES OF TENDER
In a construction industry,
there are many processes involved in building construction. One of the
processes is tendering process, but before we proceed with the tendering
process, we have to know more details about the types of tender involved. Tender
is a formal written offer to provide goods or services for a particular price,
while tendering is a management and commercial function of determining the
tender based upon the estimate and other details prepared by contractor’s
estimator or other personnel. There are three types of tenders that are
normally involved in construction industry. These three types of tender are
Open Tender, Close Tender and Negotiated Tender.
3.1 Open Tender
Open tender is an
arrangement where an advertisement in local newspapers or trade journals
invites contractors to apply for tender documents. This type of tender is open
to all qualified contractors registered under the same class. A deposit is
usually required to ensure that only serious offers are made, presumably it is
needed to cover the cost of copying the documents. Local authorities have been
advised against open tendering because it often leads to excessive tender lists
where the cost of abortive tendering is considerable. There are instances of
selection criteria being applied after the tender has been submitted, so a bid
could be rejected if a contractor does not belong to an approved trade
association.
3.1.1
Advantages of Open Tender
The advantages of Open
Tender are:
Ø
Give high level of competition and
contractors tend to give best prices as compare to other tendering method.
Ø There is no list of restrictive tenderer, which does not
allow favoritism.
Ø It is very transparent process which ensures that only the
contractor with the best price and meeting all the technical requirements will
win the tender.
Ø This process is usually manage by procurement board where
its staff are trained for such exercises and board ensure that all the
procedures involved in tender are followed.
Ø Lesser possibility of
contractors “ganging up” to quote higher price for the project.
Ø It offers chances to new
and inexperience contractors to bid for the tender.
3.1.2
Disadvantages of Open Tender
The advantages of Open
Tender are:
Ø Tenders may be received
from firms who neither have the necessary financial resource nor technical
knowledge and experience of the class of work involved.
Ø There is a risk that the
contract may be awarded to an unscrupulous contractor.
Ø A lot of wastage as unknown
copies of tender documents has to be prepared.
Ø Increase time and financial
expenses, as a lot of tender needs to be evaluated.
3.2 Close Tender / Selected Tender
Selected tendering consists of drawing up a list of chosen
firms and asking them to tender. It is by far the most common arrangement
because it allows price to be the deciding criterion; all other selection
factors will have been dealt with at the pre-qualification stage. There are
three ways in which selected tendering lists are drawn up:
Ø An advertisement may produce several interested contractors
and suitable firms are selected to tender.
Ø The consultants may contact those they would wish to put on
an ad-hoc list.
Ø Many local authorities and national bodies keep approved
lists of contractors in certain categories, such as work type and cost range.
Contractors who ask to be included on select lists of tenderer are usually
asked to provide information about their financial and technical performance,
particularly about the type of work under consideration. The National Joint
Consultative Committee for Building (NJCC) has written the 'Standard form of
tendering questionnaire - private edition' so contractors can prepare answers
to relevant questions in advance. The questions mainly deal with projects
carried out during the previous three years. Once the form has been completed,
it can be used for specific projects or for those compiling lists of selected
contractors.
3.2.1
Types of Close tender / Selected Tender
3.2.1.1
Close Tender Offer Only To Bumiputra
This type of tender is
offer only to bumiputra, who fulfill the condition such as classification of
contractor, such as paid up capital and expertise.
3.2.1.2
Close tender Offer Through Selection
This type of tender is
usually offered to contractor who is reliable of accomplishing the job
satisfactory. Tender offered involves specialist field such as piling work.
3.2.1.3
Close Tender Offer Through Pre-Qualification
Normally this type of
tender is applied in huge and complex project, which require contractor
specialization in their field. An invitation to tender is offer to selected
list of contractors, who has reliable reputation in his class of work, or who
has previously carried out their job satisfactory, particularly to the owner.
3.2.2
Advantages of Close Tender
The advantages of Close Tender
are:
Ø The exact number of tender
is known, hence reduce wastage and expenses as for extra tender documents and
tender evaluation.
Ø The contractor record of
previous performance provides a great magnitude of reliability in term of
financial, technical and experience aspects.
Ø Normally the quality of
work from the contractor is satisfactory.
Ø It is suitable for project
require certain level of efficiency, skill and experience from the contractor.
3.2.3
Disadvantages of Close Tender
The disadvantages of Close
Tender are:
Ø Officers involve in the
tendering process may be biased to a particular contractor.
Ø Tender sum may be not the
lowest, as not all qualified tenderers are invited.
Ø There is possibility of
contractors “ganging up” or existence of “cost syndicate” to quote at higher
tender sum.
Ø Normally new and
inexperience contractors are no invited.
3.3 Negotiated Tender
Negotiated Tender is an
alternative to Open Tender and Close Tender. Under this method normally one
contractor is approached and such tender mainly used for specialist work such
as lift system or airport project at big level, in such case there are limited
number of contractor who do such work in the market. It is based on one-to-one
discussion with contractors to negotiate the terms of contract. It is usually
advisable in special circumstances, such as :
Ø Project to be carried out
urgently, where construction drawings and list of materials are still in the
process.
Ø Projects for armed forces,
where the work site is of restricted area.
Ø Projects where preferred
contractor has performed successfully for the employer previously.
Ø Projects where contractor
already engaged on the same site.
Ø Projects where space is
very restricted and contractor is executing another contract there.
Ø Projects where contractor
has special has special knowledge and experience about the particular site,
type of work and type of contract.
3.3.1
Advantages of Negotiated Tender
The advantages of
Negotiated Tender are:
Ø Since only one contractor
is invited, negotiation can be easily dealt with, and it saves a lot of time
and money compares with other type of tenders.
Ø The contractor record of
previous performance provides a great magnitude of reliability in term of
financial, technical and experience aspects.
Ø Normally the quality of
work from the contractor is satisfactory.
Ø It is suitable for project
require certain level of efficiency, skill and experience from the contractor.
3.3.2
Disadvantages of Negotiated Tender
The disadvantages of Negotiated
Tender are:
Ø Officers involve in the
tendering process may be biased to a particular contractor.
Ø Tender sum may be not the
lowest, as all qualified tenderizers may not be invited.
Ø Normally new and
inexperience contractors are not invited.
4.0 CONCLUSION
From the interview that has been done and also some
related research, I have successfully finished this assignment on time. From
the topic that I have chosen, it can be said that tender that has been used in
construction industry can be divided into three types, which are Open Tender,
Close Tender and Negotiated Tender. All these tenders have their own advantages
and also disadvantages and all of these have been discussed in this assignment
or report.
Actually, there are some advantages of doing this
interview. From the interview, I can get more knowledge regarding the topic
that I have chosen. All the knowledge can help me in finishing this assignment
and also help me in getting more additional information that me and my friends
never know before.
Besides that, I am also getting more information about
the responsibilities and duties of an engineer. From the interview, I can get
to know the engineer that I have been interviewed and thus getting more
information about his experience and challenges of being an engineer. He has
also gives us many advices and spiritual support for us to achieve our
ambition. That was a very great experience for me and my friends.
This interview gives us a lot of advantages thus helped
us in finishing this assignment. All the peoples involved in finishing this
assignment have give a lot of cooperation and also has helped me in many ways,
so that I can finish this assignment successfully.
REFERENCE
~IzZy~