HND in Quantity Surveying

Unit / Module Tendering and Estimating QS Unit: QCF level: Credits

37 value:

17 04 15

Assessment Procurement process, Produce tender document, Estimating process and

Techniques, Tendering procedures and contractual arrangements.

Lecturer Mrs. Malini De Silva.

Student Name K.M.N.K.Wickramasinghe ID KD/HNDQS/37/38

Date Handed Over 08/09/2015 Date Due 23\10\2015

Initial Submission Date Re-Submission

Date

Plagiarism:

While research and discussion are an essential part of an assignment, the deliberate copying of someone elses
work or unacknowledged copying from printed or electronic sources is NOT permitted. You may be subject to
disciplinary procedure if you do this. You should sign this sheet to show that you comply with these regulations.

Students Signature: navindu.. Date: .2015/09/18

Students Comments:

....

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t to Grading Criteria Met? Assessor Feedback
Tic if Opportunity
k Att
em
Stu Initially On
pte Resubmission
de
d
n
P 1.1

P 1.2

P 1.3

P 2.1

P 2.2

P 2.3

P 3.1

P 3.2

P 3.3

P 3.4

P 4.1

P 4.2

P 4.3

M1

M2

M3

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D1

D2

D3

Assessed By (Name):

Signature: Date: 18/09/15

Student Signature & Comments:

navindu

Further comments from lecturer:

Further comments from lecturer on resubmission:

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Internal Verification

Successfully verified.

Internal Verifier Name: W.M.U.Wickramasinghe

Signature : Uthpala Date Verified : 07/09/2015

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Important Information for Students

The criteria each task relates to are shown against that task where possible.

Please note that plagiarism is treated as a serious offence and therefore the work you
produce must be individual and original although may work in groups in some
instances (Please refer to Student Handbook on Plagiarism & Cheating).

All sources of information must be referenced using Harvard referencing where a

reference list/Bibliography should be included at the end of the assignment.

Please note that the submission date given for this assignment is the final date that you
can hand over the assignment. A one week grace period maybe extended with prior
approval from the Program Manager Undergraduate. However, note that
submissions handed in one week late will be graded lower (Please refer to the
Student Handbook on Assessments - Late Submissions & Penalties).

Assignments returned to students for re-working must be re-submitted within 10

days (Please refer to Student Handbook on Assignments Re-submission).

Failure to re-submit the previously marked assignment with the re-submitted

assignment will mean that results cannot be released for the respective unit.

Please read, follow and reference both the contents of the unit outline and the
grading criteria of the assignment before completing this assignment.

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Assignment- Tendering & Estimating

The Ministry of Health is planning to build a General Hospital with modern facilities at
the Eastern Province in Sri Lanka. The Ministry of health reached the State Engineering
Corporation (SEC) for their project consultancy.

This is a public sector investment for the eastern province for its big population.

The eastern Provincial council is the Procurement Committee against the Ministry of
Health.

Task 01

Demonstrate your knowledge in producing a tender.

1.1 This is a large scale construction project and selection of contractors is very critical. Specify
the typical clients in the construction industry and for which, tenders are required. The
Procuring entity is the Ministry of Health. Explain the other governmental organizations
involved in this procurement process. (P 1.1)

1.2 Determine the constraints which may apply to the tender process in the above project.
Explain eligibility of the bidders & Ethics of procurement. (P1.2)

1.3 Describe the scope of contractual documentation required for tendering assuming the Open
Tendering procedure is used for building construction of this project.

Assume that you are the quantity surveyor appointed by S.E.C. to provide tender
documents. Produce the following documents using standard formats for each.

Invitation for bid

Form of bid

Qualification information
Schedule

Your own assumptions can be made for all details required to produce above documents.

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(P1.3)

Task 02

Apply the principles and techniques of estimating for the same project, assuming
that you are the project quantity surveyor.

2.1 The work site situated at Ampara within the city limits. Explain how you can collect the
data to find the current market prices of inputs to build up unit costs. (P 2.1)

2.2 The ready-mix concrete is used for suspended floor slabs and beams at upper levels of the
buildings in this hospital. The ready-mix supplier is 10Km away from the site. Assuming
that you are the site manager, produce a method statement for supply of grade 25 concrete,
handling, laying, spreading, compacting and curing. (P2.3)

2.3 Some common civil work items mostly used in the hospital buildings are listed out below.
Calculate the unit rates using standard document data and assuming the current prices for
all inputs. (P 2.2 & P 2.4)

i. Mass concrete grade 15 (1:3:6 1) manual mix in foundation. Rate per m3

ii. R.C.C. grade 20 (1:2:4 3/4) machine mix in columns. Rate per m3.

iii. Grade 25 ready-mix concrete supply & pumped in to a slab and beams at 1st floor
level. Rate per m3.

iv. 6-9 random rubble masonry in foundation. Rate per m3.

v. 225mm thick brick work in ground floor walls. Rate per m2

vi. 300x300mm ceramic homogeneous tiling on & including cement sand screed
bedding Rate per m2

vii. 16mm thick 1:1:5 cement, lime plaster to walls. Rate per m2

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Task 03

Estimates are formulated for construction operations in Pre-tender and post

contract stages.

3.1 Demonstrate how the Bill of Quantities format may be used to build up estimates
assuming the quantities for items given in question 2.4. Determine the sections of Bill of
Quantities for building construction for above project. (P 3.1)

3.2 The management of contractors organization has decided the profit margin as 10% for this
project. Determine the critical factors effect on this profit margin. (P 3.2)

3.3 Evaluate how the health, safety and welfare plan affects on this tender and demonstrate
your knowledge producing a B.O.Q. for above project. (P 3.3)

3.4 Calculate the head office overhead and site overhead separately by considering the given
information. (P 3.4)

Item Cost in Rs.

Site access roads & maintenance.

800,000.00

Accommodation of site labour.

450,000.00

Furniture for head office.

5,550,450.00

Head office utilities such as lights, telephone, stationery supplies etc. 250,750.00
Salaries of Workshop & Yard store keepers, Drivers, Foreman,
Mechanics & Workmen. 9,000,000.00

Fencing & protection.

350,000.00

Cleaning Contractor & Consultant Site Offices. 400,000.00

Setting out & measurements.

425,000.00

Preparing samples for testing.

500,000.00

Insurance, Interest and taxes on business.

2,350,000.00

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Insurance of work & workmen's compensation. 750,000.00

Task 04 (M 1)
4.1 The proposed hospital project includes number of buildings and landscaping work. An open
tendering procedure is used for building construction and selective tendering procedure is
used for landscaping work. Describe the stages of tendering process for both open and
selective tendering. (P 4.1)

4.2 Specify the procedures used in receiving and opening tenders and the factors which are used
to formulate select lists considering the bid evaluation report. (P 4.2)

4.3 Determine the different forms of contracts used in construction industry and evaluate their
uses in different types of construction and select the suitable forms of contracts for the above
project. (P 4.3)

Summary of Activities to Achieve Learning outcomes To

achieve the relevant Learning Outcome the student is able to:

Learning Summary of Activities Task Achieved?

Outcome (Y/N)

1 List out the clients who require the tenders. 1.1

Discuss at least three constraints required for the 1.2

tender process.

Prepare the requested documents and fill them based 1.3

on your assumptions.

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2 Collect quotations to take prices of material, plant 2.1
etc.

Prepare method statement for grade 25 readymix 2.2

concrete.

Prepare rate analysis for given items using standard 2.3

data documents.

3 Produce a priced B.O.Q. for items in 2.4. Determine 3.1

the grouping system of work items & explain
provisional sums, prime costs etc.

Explain the factors that affect to the profit margin. 3.2

Evaluate how you can allocate money for health, 3.3

safety and welfare issues of the construction

Calculate head office overhead and site overhead 3.4

separately.

4 Describe the stages of open and selective tendering. 4.1

Highlight the importance of the factors that are used 4.2

for select lists.

Select a contract type for this construction. 4.3

Summary of Evidences required to Achieve Learning outcomes To

achieve the criteria the evidence must show that the student is able to;

Learning Summary of Evidences Task Achieved?

Outcome (Y/N)

1 Develop your answer by relating to the given 1.2

construction.

Clearly mention the assumptions you have made. 1.3

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2 Show your evidences as annexures. 2.1

Show your rate breakdowns for each item. 2.4

3 Give examples provisional costs and prime costs etc. 3.1

with related to the given construction.

Relate your answer to the given construction and 3.2

analyze the effect of these factors to the profit
margin.

Provide a draft preliminary bill mentioning the 3.3

health, safety welfare provisions for the construction.

List out the site office overhead and head office 3.4
overhead items.

Show your calculations separately.

4 Create your own select list for this construction. 4.2

Give reasons for your selection 4.3

Passing Criteria:

Outcomes
Assessment criteria for pass

To achieve each outcome a

learner must demonstratethe ability to:

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1. Demonstrate knowledge of the

information required to produce a
tender 1.1Specify typical clients for which tenders are required

1.2Determine the constraints which may apply to the tender

process

1.3Describe the scope of contractual documentation

required for tendering

2. Apply the principles and techniques

of estimating.
2.1 Collect data required to build up unit costs

2.2 Use standard data document and measurement systems

2.3 Produce a method statement suitable for building a unit

cost

2.4 Calculate a unit cost for identified items

3. Analyze and apply methods of pricing

to determine and formulate an estimate
3.1 Demonstrate how the bill of quantities format may be
for construction operations
used to build up estimates

3.2 Determine critical factors which might affect the profit

margin

3.3 Evaluate the effect of health, safety and welfare plans on

the tender

3.4 Calculate on-costs and overheads using data supplied

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4. Evaluate different tendering

procedures and contractual
4.1 Describe the stages in both open and selective tendering
arrangements in common use
4.2 Specify the factors which are used to formulate select
lists

4.3 Select forms of contract for a variety of

construction applications and evaluate their use

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Merit Grade:

Indicative characteristics
Merit descriptors Contextualised Evidence
In order to achieve a merit The learners evidence shows: To achieve the grade you
the learner must: will need to:

M1 identify and apply Effective judgments have been made An effective approach to
strategies to find Complex problems with more than one variable have beenstudy and research has
appropriate been applied against the
solutions explored
current Procurement
An effective approach to study and research has been Procedure in Sri Lanka
applied

M2 select/design and Relevant theories and techniques have been applied Apply a range of methods
apply , relevant theories &
A range of methods and techniques have been applied
appropriate techniques on tendering
methods/techniques A range of sources of information has been used activities.
The selection of methods and techniques/sources has been Demonstrate the
knowledge &
justified the design of methods/techniques has been justified understanding of Pre-
contract methodologies &
Complex information/data has been synthesized and
Estimating .
processed appropriate learning methods/techniques have been
applied

M3 present and The appropriate structure and approach has been used Discuss the
communicate Coherent, logical development of principles/concepts for relevant concepts
appropriate findings using technical language
the intended audience accurately to support the
answer.
A range of methods of presentation have been used and
technical language has been accurately used The overall document
should be presented in a
Communication has taken place in familiar and unfamiliar professional report
structure.
contexts

The communication is appropriate for familiar and unfamiliar

audiences and appropriate media have been

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Contextualized Evidence
Distinction descriptors Indicative characteristics
In order to achieve a
The learners evidence shows: To achieve the grade you will
distinction the need to:
learner must:

D1 use critical reflection to Conclusions have been arrived at through synthesis of Self-criticism of approach has
evaluate own work and taken to finding new &
ideas and have been justified
justify valid conclusions additional information
The validity of results has been evaluated using
defined criteria

Self-criticism of approach has taken place

Realistic improvements have been proposed
against defined characteristics for success

D2 take responsibility for Autonomy/independence has been Demonstration your

managing and knowledge independently
demonstrated
organizing activities in pre-tender activities on
Substantial activities, projects or investigations have estimating and tender
been planned, managed and organized documentation.

Activities have been managed The overall assignment

submits on time.
The unforeseen has been accommodated
The importance of interdependence has been
recognized and achieved

Ideas have been generated and decisions taken Self evaluation has taken to
Self-evaluation has taken place answers using evidence to
D3 Demonstrate support well planned
convergent/lateral/creat Convergent and lateral thinking have been applied
ive thinking documentation such as
ICTAD clauses. Establish the
Problems have been solved
completeness of descriptions
Innovation and creative thought have been applied in logical and professional
manner.
Receptiveness to new ideas is evident
Effective thinking has taken place in unfamiliar
contexts

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Grading Matrix

Assignment code Assignment

P 1.1

P 1.2

P 1.3

P 2.1

P 2.2

P 2.3

P 2.4

P 3.1

P 3.2

P 3.3

P 3.4

P 4.1

P 4.2

P 4.3

M1

M2

M3

D1

D2

D3

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Tendering and Estimating

K.M.N.K.Wickramasinghe

KD/HNDQS/37/38

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Acknowledgement
I would like to thanks Mrs. Malini De Silva for giving me valuable advices and guidance to
achieve the task in this assignment successfully.

I would also wish to acknowledge the support given to me by my parents. And Im really
grateful to all of them who helped me to complete this assignment.

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Table of Contents
Acknowledgement .......................................................................................................................... 18
Introduction .................................................................................................................................... 20
Question 1.1 .................................................................................................................................... 21
Question 1.2 .................................................................................................................................... 26
Question 1.3 .................................................................................................................................... 32
Question 2.1 .................................................................................................................................... 42
Question 2.2 .................................................................................................................................... 43
Question 3.2 .................................................................................................................................... 44
Question 3.3 .................................................................................................................................... 46
Question 4.1 .................................................................................................................................... 47
Question 4.2 .................................................................................................................................... 48
Question 4.3 .................................................................................................................................... 50

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Introduction
In this I compete given tasks in Tendering and Estimating. Also I tried to complete all the tasks
in simply way to understand anyone.

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Task 01

Question 1.1
There are different types of clients have come across in the construction industry,

1) Private

Private clients are comprised of either local or sole traders who need assistance with the
construction alteration and maintenance their private properties.

2) Commercial

This type clients considered to be a company, factory or business that need to undertake
construction to aid their business processes or the made of productions.

3) Public limited company

Public limited company consist of any company listed on the stock. Also type of company the
client would have to apply for either tender or rigid contract before starting the works.

4) Government

Government based projects can get as three different type of levels,

Level 1- Local council

Level 2- state government

Level 3- central government

The proposed hospital situated to eastern province in Sri Lanka in Ampara. This is a large scale
construction project then the selecting a contractor is very critical. In this project, project costs
will approximately 200 million and also this project carried out in GOSL funded (Local)
contracts.

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There are several procurement committees to handle various levels of procurements,

1. CAPC- Cabinet Appointed Procurement Committee

2. MPC- Ministry Procurement Committee
3. DPC- Department Procurement Committee
4. PPC- Project Procurement Committee
5. RPC- Regional Procurement Committee

01). Cabinet Appointed Procurement Committee

This type procurement committees are using for high value contract. The funded more
than or equal to Rs.100 million
Also this procurement committee is appointed by National Procurement Agency (NPA)
authority by cabinet ministers.
Numbers of members in this procurement committee should be not less than three people.
Appointed members are,
Chairperson
Non-member secretary
Non-members from TEC for make clarification
The liaison officer (Lawyer) of the procurement as a non-member
secretary of CAPC

Where a liaison officer not available, a senior officer from the line ministry will be appointed. An
officer not less than the rank of an additional secretary of the line ministry

02). Ministry Procurement Committee

This type of procurement committees are also using for high value contract. The funded
less than or equal to Rs. 100 million for a major contracts works and less than Rs. 10
million for a minor contracts works.
Also the procurement committee appointed by secretary to the line ministry.
Numbers of members in this procurement committee is shall be three people.
Appointed members are,

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Chairperson
One member- where the ministry is not the PE
Third member shall be from the outside the ministry
The liaison officer of the PE shall be the non-member
Secretary of the MPC

Chief accounting officer or an officer not less than the rank of an additional secretary to the line
ministry

Where a liaison officer not available, a senior officer not less than the rank of an assistant
director or equivalent may serve as non-member.

03). Department Procurement Committee

This type of procurement committees are using for low value contracts. The funded less
than Rs. 25 million for major contract works and less than Rs. 3 million for minor
contract works.
Committee appointed by the secretary to the line ministry.
Numbers of members in the procurement committee shall be three people.
Appointed members are,
Chairperson
A senior officer from the PE
One member shall be in the rank of a senior assistant secretary or a director from
the line ministry
Non-member from TEC for make clarification
A non-member secretary of the DPC
A senior officer from the PE

The head of the department who is knowledgeable in the subject matter of the procurement

The chairperson of the TEC/ his nominee from the TEC

( Malini de silva, n.d.)

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04). Regional Procurement Committee

This procurement committee is use depend to the case. This also use for a low value
contracts. The funded less than Rs. 5 million.
Procurement committee appointed by the secretary to the line ministry
Number of members in this committee shall be three people
Appointed members are,
Chairperson
Secretary for RPC
Third member shall be external to the PE

Who is knowledgeable in government procurement procedure

Head of the regional or divisional office

Technical Evaluation Committee (TEC)

TEC should consist of subject specialist and at least one member who is sufficient
knowledgeable on procurement procedure.

There shall be TECs for all procurement and also TEC is solely responsible for the Technical
evaluation.

Composition of Technical Evaluation Committee (TEC)

01). Technical Evaluation Committee for Cabinet Appointed Procurement Committee

Appointed by the National Procurement Agency giving the consideration to the

recommendation made by the secretary to the line ministry
Number of members in this committee should be minimum five people
Appointed members are,
Chairperson for Technical Evaluation Committee
Representative from the treasury
Representative from the ministry

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Head of department or chief executive officer
The officer in charge of the project shall be the non-member secretary for TEC

02). Technical Evaluation Committee for Ministry procurement Committee

Appointed by secretary to the line ministry giving the consideration to the

recommendation made by the head of department or project director
Number of member in the committee should be minimum five people
Appointed members are,
Chairperson for the TEC
Representative from the treasury
The liaison officer of the procurement shall be the non-member secretary for the
TEC
At least one member shall be external
Subject specialist
One member nominated by head of department

03). Technical Evaluation Committee for Department Procurement Committee and Project
Procurement committee

Appointed by the head of department or project director appoint the TEC

Number of member in committee should be minimum three to five people
Appointed members are,
Chairperson for the TEC
Subject specialist
One member shall be from the line ministry
One member shall be the secretary for TEC

In these above procurement committees, a suitable committee is Cabinet Appointed Procurement

Committee and Technical Evaluation Committee. Because the GOSL funded is very high in this
two committees

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Question 1.2
What is the tender?

Tender is an invitation for select a most suitable contractor/organization or person to obtain

works or services.

Tenders are required for,

01) Works

To any kind of construction work such as buildings, highways, bridges, harbors etc.

02) Goods

Supply of materials, machinery, vehicles etc.

03) Services

Expert advices and trainings, technical assistance, consultancy services, computer programming

The clients objective is obtaining the services by well qualified contractors, suppliers or
consultants. Important parameters which determines the success of this public investments,

1. Quality
2. Timelines
3. Appropriateness
4. Affordability of procured inputs

Ethics of procurement

Confidentially
Corruption
Conflict of interest
No gift or inducement to be accepted
Laws applicable to procurement action

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.

Confidentially

Parties associated with procurement action suppliers, contractors and officials shall ensure that
they maintain confidentially through the process.

Corruption

The officials involved in procurement action shall not abuse their powers.

Conflict of interest

Officials shall declare that they shall remain without a conflict of interest throughout the process.

No gift or inducement to be accepted

Officials shall refrain from receiving any personnel gain from any procurement action. No gift or
inducement to be accepted.

Laws applicable to procurement action

It shall be the laws of the democratic socialist of Sri Lanka.

This is a government sector project. In this project above ethics can be affect easily, usually in
government sector construction this may see any time. In that case this constraint is very
important to apply the above hospital construction project.

(Malini de silva, 2011.01.12)

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Contractors are registered in Institute for Construction Training And Development (ICTAD) for
construction contracts in Sri Lanka. (Before June 1st 2015)

specialty Financial limits M grade C grade

Up to 0.5m - C(11)

Building construction Up to 0.5m M(10) C(10)

Up to 0.1m M(9) C(10)

Highway construction 1.0m-2.0m M(8) C(9)

2.0m-5.0m M(7) C(8)

Bridge construction 5.0m-10.0m M(6) C(7)

10.0m-20.0m M(5) C(6)

Water supply and drainage 20.0m-25.0m M(5) C(6)

25.0m-50.0m M(4) C(5)

Irrigation and land drainage 50.0m-100.0m M(3) C(4)

100.0m-150.0m M(3) C(3)

Dredging and reclamation 150.0m-300.0m M(2) C(3)

300.0m-600.0m M(1) C(2)

Storm water drainage Above 600.0m M(1) C(1)

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After June 1st 2015 ICTAD name and all the grades changed to Construction Industry
Development Authority (CIDA)

Specialty Financial limits Grades

Building construction Up to 2.0m C(9)

Highway construction 2.0m-5.0m C(8)

Bridge construction 5.0m-10.0m C(7)

10.0m-25.0m C(6)

Water supply and drainage 25.0m-50.0m C(5)

50.0m-150.0m C(4)

Irrigation and land drainage 150.0m-300.0m C(3)

300.0m-600.0m C(2)

Dredging and reclamation 600.0m-1500.0m C(1)

1500.0m-3000.0m CS(1)

Storm water drainage Above 3000.0m CS(2)

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Eligibility of the bidder

Certified copies of original documents defining the constitution or legal status, place of
registration and principle place of business written power of attorney authorizing the
signatory of the bid to commit the bidder.
In the event that pre-qualification of bidder is a requirement. Only bids from those who
satisfy the pre-qualification criteria will be considered for award of contract.

Bidders shall update the following information,

o Evidence of access to lines of credit and availability of other financial resources.

o A statement of financial predictions of the bidder for the 12 months, commencing
from the closing date of bids including the effect of known commitments.
o Work commitments of the other projects under taken since pre-qualification.
o Availability of equipment that may be required for the project.

In next stage all the bidders shall include the following information and documents with schedule,

o Report of the bidders financial, profit and loss statements and auditors report for
the past three years.
o Qualifications and experience of key site management and technical personnel
proposed for the contract.
o Total monetary value of construction work performed for last five years.
o Major items of construction equipment proposed to carry out the contract.

Bidders qualifications

Bidders shall have been registered and hold valid registration with Construction Industry
Development Authority (CIDA) under the grade and specialty giving in bidding data.
Average annual volume of construction work performed I the last five years shall be not
less than the amount specified in bidding data.
Experience as prime contractor in the construction of at least one works of nature and
complexity similar to the works over the last ten years.

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Shall not be a blacklisted contractor at the time of bidding and at the time of award
contract.

In open tendering the main feature is publishing the requirement by the advertising and collecting
bids from the supplier.

Open tendering procedure means invitation published in newspaper and any bidder having the
required qualification are allowed to bid. The open bid value should be more than or equal to 3.5
million.

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Question 1.3
In tendering stage below documents are used,

Invitation for bid

Biding data
Contract data
Specification
Form of bid
Bills of quantity
Schedule
Drawings
Standard forms (Bid)

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FORM OF BID

Note: Prior to issue of the bidding documents, the Employer should insert relevant data for all
items marked with an asterisk (*).

Name of Contract:* Construction of hospital building

To:*

The ministry of health [Insert name of Employer]

Gentleman,

1. Having examined the Standard Bidding Document - Procurement of Works - Minor

Contracts [ICTAD/ SBD/ 03 - Second Edition, January 2007], Schedule, Specifications, Drawings
and Bills of Quantities and addenda for the execution of the above-named Works, we/I the
undersigned, offer to execute and complete such Works and remedy any defect therein in
conformity with the aforesaid Conditions of Contract, Schedule, Specifications, Drawings, Bill of
Quantities and Addenda for the sum of Sri Lankan Rupees ..............................
.........................................................................................................

(LKR ..................) or such other sums as may be ascertained in accordance with the said
Conditions.

2. We/I acknowledge that the Schedule forms part of our Bid.

3. We/I undertake, if our Bid is accepted, to commence the Works as stipulated in the
Schedule, and to complete the whole of the Works comprised in the Contract within the time
stated in the Schedule.

4. We/I agree to abide by this bid for the period stated in the Sub-Clause 15 of Instructions to
Bidders or any extended period and it shall remain binding upon us and may be accepted at any
time before the expiration of that period.

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5. Unless and until a formal agreement is prepared and executed this Bid, together with your
written acceptance thereof, shall constitute a binding contract between us/me.

6. We/I understand that you are not bound to accept the lowest or any Bid you may receive.
Dated this.............. Day of ......... .20............ In the capacity of .................................... duly
authorized to sign tender for and on behalf
of............................................................................................................

(IN BLOCK CAPITALS)

Signature: ....................................................

Address: ..............................................................................................................

Witness: ....................................................

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Schedule

Item Data

Employer is: Name: Ministry of health

Address:

Engineer is: Name

Address: .

Summary of Works

The Works consists of: three storied ward building

Toilets

Two ICU wards, two x-ray rooms

Located at: Ampara city

Contract Name: Hospital construction in Eastern province Sri Lanka

Contract Number: ...

Intended Completion date:

Intended Completion Date is 550 days from the starting date

Source of funds:

The source of funds is: CAPC local committee

Eligibility The requirement is:

Registration with the Institute for Construction Training and

Development (ICTAD) under specialty of Building construction &

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Grade: CS (1)

Price Adjustment:

The contract is subject to price adjustment in accordance with sub clause 10.9 of the
conditions of contract

The price adjustment shall be computed in accordance with Option (specify A or

B) under sub-clause 10.9

Nonadjustable element shall be: BOQ Item numbers

.., .., ., .

OPTION A

Weightings of inputs:

Indices No Input Name Input percentage

Total 90%

OPTION B

OPTION B

Type of Construction .

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Bid Security / Bid Security Declaration

[Select one of the following options]

Bid shall include a Bid Security:

For an amount .

(Should be same as provided in the invitation to bid)

Issued by an agency acceptable to Employer using the form for Bid Security
(unconditional guarantee) included in Section 9 Standard forms

Remain valid till [insert the date 28 days beyond the validity period of
the bid]

OR

Bid shall include a Bid-Securing Declaration using the form in Section 9

Performance security:

Amount of performance security required is 5 % of the initial contract price)

The form acceptable is Unconditional Guarantee appended in

Section 2 standard forms (contracts)

Late Completion:

The amount to be paid is 0.05 % of Initial Contract Price per day, subjected to maximum of 10%
of Initial Contract Price.

Notification of Defects:

The period for Defect Notification is . Days from taking over.

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Retention:

The amount of retention is 10% of Initial Contract Price. The maximum amount of
retention is 5% of Initial Contract Price.

Insurance third party:

Minimum amount for third party insurance is Rs

Minimum amount for Insurance for Employer and contractor personnel is Rupees
.

Adjudicator /Resolutions of disputes:

Fees and reimbursable expenses to be paid to the Adjudicator shall be on a case to case
basis and shall be shared by the contractor and the employer.

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MINISTRY OF HEALTH AND SAFETY

BID NOTICE

General hospital construction project

The government of the democratic socialist republic of Sri Lanka has received financing from the
CAPC towards the cost of general hospital construction project.

On behalf of the chairman Department Procurement Committee of CAPC sealed bids will be
received by the Director General, CACP, No. 430, T.B. Jayah Mawatha, Colombo 10, up to 3.30
p.m. on 16.11.2015 for the above project.

Contract number Name of work Bid security Period of CIDA

completion minimum
grade

CS(3) or
above for
DSWRPP- Construction of hospital Rs. 560,000.00 550 days
building
1/WORKS/NBS/70 and landscaping with
construction
modern facilities

Bidders who have the grade of registration under the CIDA scheme of registration mentioned
above will be eligible for building.

Prospective bidders may apply for the bidding document by a written request on a company/firm
letter head addressed to the executive director, State Engineering Corporation 1st floor, no. 14,
T.B. Jayah mawatha Colombo 10 from the 12.10.2015 up to 15.11.2015 from 09.00 hrs. 17.00 on
working days, on payment of a non-refundable tender fee of Rs. 6000.00 per set of each bidding
document.

Director General

State Engineering Corporation

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Qualification Information

(SPECIMEN)

Note: Prior to issue of the bidding documents, the Employer should insert relevant data for all
items marked with an asterisk (*).

Bidders
Eligibility Requirement
Qualification

ICTAD Registration

Registration number

Grade CS(5) or above

Should be a building construction

Speciality
company

Expiry Date

Blacklisted
Contractors

Have you been declared as a defaulted contractor by NPA or

any other Agency? Yes/No

IF yes provide details

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VAT Registration
Number

Construction Program6 (attach as annex)

Legal status7 Public company/Private Company/Partnership/Sole proprietor

Eligibility Requirement Bidders Qualification

Category, Experience Requir Proposed by bidder

and Qualifications9 ed
Qualification and (Name, experience and
Nos.*
experience of key staff8 (Insert requirement)* Qualifications)

1 Engineers 3

2 Quantity surveyor 1

3 Workers 17

List Other information

required

Signature of the Bidder.

Seal

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Task 02

Question 2.1
In Sri Lanka every District has a District price fixing committee. This committee produce three
intervals of their prices and update the current market prices of the materials, labors and plant
some prices are increased or reduced by the government during above period, it is announced in
local news. These prices are used for rate calculation accordingly.

In some material, prices will be changed time to time,

EX: - local timber is supplied by local market in this case, quotations are obtained from timber
deports (local market)

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Question 2.2
Method statement for concrete slabs and beams of the multistoried hospital building

1. Form work and reinforcements should be completed on the day before concreting
2. All the approval should checked of consulting engineer for the concrete works
3. The ready-mix concrete to be ordered at least three weeks earlier to the concrete works
4. Labors and machineries required for concreting is arranged earlier. If there is a sub-
contractor, his responsibility is inform to all the labors came to site on time
5. The staff are informed to report to their duty at the same time
6. Expenses for the welfare to provide for all staff and workers to be obtained from the
contractors head office by the site manager earlier. There are to be arranged to supply at
the time to the site
7. If the pump car is required for a concrete, it is to be arranged to bring and install at a
required position on the previous day.
8. Additional cement required for ready-mix pumping is to be supplied by the contractors
stores.
9. Inform to the consulting engineer, when the concrete is starting and time taken for
completing
10. When the concrete is completed, it is to be protected from rain if it is
11. If the time taken for concreting more than normal working hours, additional payment to
be arranged to pay all labors and staff

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Question 3.2
Profit margin is included as a percentage of basic cost to the unit rates. Also the mark-up for
overheads and profit in included together.

Contractors organization has decided the profit margin as 10% for this project. If the profit
margin 10% the overhead cost will be 15%.

If overhead cost increased profit margin will decrease.in that case overhead cost planning is very
important to the contractor side.

The factors that affects to the profit margin:-

1. Time
2. Supply cost
3. Financing
4. Unexpected expenses

01). Time

Time is the crucial element in the any type of organizations specially the construction
organization when trying to maximizing their profit margin. In construction company money is
charges a price for the whole project. When the time to complete the project far exceeds the
estimated time, the profit margin is get decrease because of the contractor work additionally for
some days. That expenses goes to the contractors profit margin. Also the time management is
very important in above hospital project.

02). Supply cost

Supplies is need to complete the project on given time. Contractors responsibility of the
selecting the good materials for the construction project. Contractor need to think about the price
of the materials and the quality of the materials. In that case contractor will lost profit when the
selecting of the materials.

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03). Unexpected expenses

There are has many un-necessary expenses in construction industry such as transport, stationary,
use of power, water, telephone, fax etc. these expenses directly affects to the profit margin. In
that case these un-necessary expenses are to be cut down by the contractor to maximize the profit
margin of the contractor.

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Question 3.3
In any type construction there have many risk and dangerous commencing the project works. In
this case client responsibility for the providing the HSW for the workers. Also the tendering
stage client and contractors responsibility to ensure the ad sufficient budget for HSW for the site
workers.

Employer and also contractor should add sufficient money to the BOQ to carry out the work
safety.

1. Allocate sufficient budget for safety provision in the BOQ

I. Temporary fencing
II. Safety net
III. Welfare facilities such as drinking water, sanitary facilities etc.
IV. Budget for personal protection equipment such as safety helmet, gloves, shoes,
eye protector
V. Budget for safety signs and hording
VI. Budget for temporary barriers and barricades
2. Allow sufficient time for site mobilization
3. Provide safety plan for the contractor and nominated contractor

These safety plans need to allow to the tender document to ensure the workers HSW.

(Anon., 2000)

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Task 04

Question 4.1
Open tendering

Open tender allows any peoples to submit the tender to supply goods or services. This type of
tender published in newspapers or web sites to submit anyone to have the qualification.

Design and drawings

Engineer estimate
Tender document
Invitation for bid
Bid opening
Bid evaluation
Pre bid meeting
Selecting bidder
Hand over the contract
Selective tender

Selective tendering only allows suppliers to submit tenders by invitation. Consultant or employer
may maintain approved lists of prospective supplier and then regularly review performance to
assess the supplier should remain on the list.

(Johnston, 2002)

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Question 4.2
Bid receiving

Bids must be received by the employer at the address specified in later than the time and date
stipulated in the bidding date.

Any bids received by the employer after the deadline for submission of bids will returned even
not opened to the bidder.

The bidder may modify or withdraw its bid submission, the modification and withdraw must
done before the deadline of the bid submission and thats provided that written notice.

Above modifications and withdrawal notice shall prepared, sealed and delivered in accordance
with the provision.

After dead line of the submission any bid modifications or withdraw not be accepted by the
employer.

Bid opening and Evaluation

The employer will open the bids presence of bidders authorized representatives who choose to
attend in the bidding date.

The envelope marked as original will be opened first by the employer and if the envelope hasnt
the all documents employer will opened the other envelop and search that missing document.

The bidders names, the bid price, including any alternative bid price or deviation, any discount,
bid modification and withdrawals and amount of bid security and other details announced by the
employer in bid opening.

Any receiving bids not rejected in the bid opening except the late submit bids.

Bids not opened and read out at bid opening shall not be considered further for evaluation,
irrespective of the circumstance.

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Prior to the detailed evaluation of bids, the employer will whether each bid,

a. Meets the eligibility

b. Has been properly singed
c. Required security
d. Provide any clarification

If a bid not substantially responsive, it will be rejected by the employer.

Bids determined to be substantially responsive will be checked by the employer for any
arithmetic errors. Employer will corrected as follows,

a. Where there is a discrepancy between the amounts in figures and in words.

b. Where there is a discrepancy between the unit rate and the line item total resulting from
multiplying the unit rate by the quantity.

The employer will evaluate and compare only the bids determined to be substantially responsive.

The employer reserves the right to accept or reject any variation, deviation, or alternative offer.

The estimate effect of the price adjustment provisions of the conditions of contract, applied over
the period of execution of the contract, shall not be taken into account in bid evaluation.

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Question 4.3
There are some common types of contracts are using in construction industry,

1. Lump sum contract

2. Unit price contract
3. Cost plus contract
4. Negotiated contract
5. Measure and pay contract

01). Lump sum contract

This contract type also called as fixed price contract. This type of contract is suitable if the scope
and schedule of the project are sufficiently defined to allow the consultant to estimate project
cost.

02). Unit price contract

This kind of contract is based on estimate quantities of items included in the project and their unit
price. This contract is suitable for construction and supplier project where the different types of
items.

04). Negotiated contract

A negotiated contract is a written arrangement between a contractor and the client. This contract
target the specific firm for a variety of reasons to perform the contract, even though there is more
than one firm that can perform the contract.

(fonds, 2009)

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Malini de silva, n.d. guideline reference, s.l.: s.n.

Anon., 2000. HSW guid for dendering, Wellington: s.n.

fonds, k., 2009. Tender, s.l.: s.n.

Johnston, J., 2002. Tender process, s.l.: s.n.

Malini de silva, 2011.01.12. lecture ote, s.l.: s.n.

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