Study Guide: Principle of Tendering and Estimating
Chapter 1: Definition of Tendering and Estimating
1. Tendering:
- The act of submitting a quotation (tender) in response to a client's request.
- Clients include individuals, companies, or government bodies.
- Used for supplying goods or executing construction projects.
- Tenderers can range from individuals to large contractors.
2. Estimating:
- The process of calculating the cost of a construction project.
- Can be for the full project, alternative designs, or tender checking.
- Performed by quantity surveyors or estimators in firms.
3. Measuring Variations:
- During construction, any changes are measured and costed to control the budget.
4. Project Teams:
- Two key teams: Design Team and Building Team.
Design Team includes:
- Client, Architect, Structural Engineer, Services Engineers (Electrical & Mechanical), Quantity Surveyor.
Building Team includes:
- All from the design team plus the Main Contractor.
Study Guide: Principle of Tendering and Estimating
- In special contracts (e.g., turnkey), the contractor may also be part of the design team.
Client-Initiated Design and Estimating Process
1. Client's Role:
- Knows project purpose and appoints consultants (architect, QS, engineers).
- May appoint one consultant who recommends others with client approval.
2. Workflow:
- Client gives a brief to architect.
- Architect prepares a line diagram (outline proposal) and shares with all consultants.
- Engineers prepare preliminary drawings.
- Quantity Surveyor prepares first estimate, incorporating all inputs.
3. Estimate Approval:
- The first estimate becomes the cost limit upon client approval.
- Architect and engineers prepare sketch designs.
- QS prepares a second estimate.
4. Cost Check:
- If second estimate is within budget, documents go to the client.
- If over budget, QS and architect adjust designs to save cost.
Chapter 2: Types of Tender and Prequalification
1. Types of Tendering Methods:
Study Guide: Principle of Tendering and Estimating
- Open Tendering
- Selective Tendering
- Negotiated Tendering
- Two-tier Tendering
- Cost-plus Tendering
- Package Deal
- Turnkey Project
2. Standard Tendering Process Involves:
A. Tender Documents:
- Working drawings from all consultants.
- Bill of Quantities with specifications.
- Form of Tender (including sum, completion time, liquidated damages).
- Basic price schedule.
- Contractor questionnaire (past projects, equipment, finances).
- Special envelopes for submission.
B. Prequalification of Contractors (Nigeria):
- Must be registered with federal/state government.
Federal Registration Categories:
A: <= 20,000 | B: <= 200,000 | C: <= 2 million | D: > 2 million
State Registration Categories:
A: 5k-25k | B: 25k-50k | C: 50k-100k | D: 100k-200k | E: 200k-500k | F: > 500k
Study Guide: Principle of Tendering and Estimating
- Only contractors in proper categories can collect tender documents.
- Registration must be renewed annually.
Other Requirements:
- Pay non-refundable document fee.
- Submit tax clearance certificate (last 3 years).
- Declare no business ties with South Africa (anti-apartheid policy).