Department of Finance and Services
Tendering Manual Chapter 4 – Preparing the Request for Tender Documents
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Chapter 4
PREPARING THE REQUEST FOR TENDER DOCUMENTS
OBJECTIVES..................................................................................................................
PRINCIPLES ..................................................................................................................
PROCESS .....................................................................................................................
RFT Documents .......................................................................................................
RFT Number............................................................................................................
Standard Forms of Contract ......................................................................................
Conditions of Tendering ............................................................................................
Basis of the Tender Price ..........................................................................................
Schedules of Information / Tender Schedules ..............................................................
Conditions of Contract ..............................................................................................
Specifications ..........................................................................................................
Drawings ..............................................................................................................
Special Formats.....................................................................................................
Consultation with Industry ......................................................................................
Third Party Input ...................................................................................................
Preparing the RFT documents for eTendering ............................................................
Document Control..................................................................................................
Review of RFT Documents.......................................................................................
Approvals .............................................................................................................
Pre-Tender Estimate ..............................................................................................
REFERENCE AND GUIDANCE DOCUMENTS..............................................................................
ACRONYMS .................................................................................................................
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Objectives
The purpose of this Chapter is to provide officers with guidelines and access to resources
for preparing Request for Tender (RFT) documents.
Principles
When preparing RFT documents officers must ensure:
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a clear description of the proposed procurement process is given; 
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the tender process will elicit all the information necessary to properly evaluate the
tenders received, decide on the contractor and define the contract; 
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what is specified for delivery through the contract satisfies the identified need; 

full compliance with the NSW Government Code of Practice for Procurement, and 
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risk allocation is consistent with NSW Government Procurement Policy. 
Process
RFT Documents
The RFT documents define the tender process to be followed and the form of contract to be
used.
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RFT documents must include:
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requirements for lodging a tender (such as the information to be lodged, the closing
time and date and the place[s] at which tenders are to be lodged); 
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the criteria that will be used for evaluating tenders (evaluation criteria); and 

expected outcomes of the tender process (such as a short-list of tenderers for a further
RFT, the award of a contract, or the basis for a negotiated agreement). 
RFT documents typically include the following components:
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standard conditions of tendering (applicable to all contracts of the particular type); 
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special conditions of tendering (specific to the RFT); 
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the tender form and basis for the tender price or prices (which may include pricing
schedules specific to the RFT); 
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schedules identifying information to be submitted by the tenderers to assist in the
tender evaluation; 
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standard or general conditions of contract (applicable to all contracts of the particular
type); 
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special conditions of contract (specific to the contract); 
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specification of goods, services or the work to be undertaken (specific to the contract,
but using common components for similar procurements); and 

drawings (specific to the contract, if required to describe the required work). 
RFT Number
All RFTs should have a unique identifier. This is called the Request for Tender Number (RFT
Number or RFT ID).
The RFT Number should be obtained as early as practicable when commencing
documentation for the RFT and should be identified in all RFT documents.
The process for obtaining an RFT Number is described in Chapter 5
Standard Forms of Contract
The Department maintains a number of standard RFT documents and forms of contract,
including:
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various standard conditions of tendering and other conditions of contract, used by the
State Contracts Control Board (SCCB) for procurements approved by the SCCB; 

the Procure IT form of contract for government information, communications and
technology procurement contracts; 

a suite of contracts for construction work and construction-related services, found in the
Procurement System for Construction. 
The appropriate standard form depends on factors such as:
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what is to be procured; 
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the size and complexity of what is to be procured; and 
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the methodology to be used for the procurement. 
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Conditions of Tendering
The conditions of tendering define the requirements that tenderers need to address in
submitting a tender. They also describe the tender process and the responsibilities of the
parties participating. Special conditions contain information or instructions that are specific
to the particular tender process.
Standard Conditions of Tendering
The standard conditions of tendering generally require tenders to conform with all the
requirements of the RFT documents, but the Principal is not compelled to reject all nonconforming tenders because they include the following conditions:

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The Principal may consider and accept tenders which do not strictly conform with all the
requirements of the RFT documents; and 
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The Principal is not bound to accept the lowest priced or any tender. 
They do, however, provide that no tender or qualification or departure from a requirement
is accepted unless notice of acceptance or a formal agreement is given in writing.
Standard conditions of tendering should include clauses relating to:
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a requirement to comply with the NSW Government Code of Practice for Procurement; 
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a prohibition on collusive arrangements by tenderers; 
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acceptable legal entities; 
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the circumstances under which late tenders may be considered; and 
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how tenders with qualifications or departures will be treated. 
Special Conditions of Tendering
The special conditions of tendering typically include:
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details of the Contact Officer, for questions arising during the tender period; 
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instructions about lodging a tender, including the method of lodgement, the documents
required and whether price and non-price elements are to be separated; 
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the purpose of the RFT and, when appropriate, proposed timetable for the procurement; 
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how alternative tenders will be treated; 
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key requirements that apply to the procurement, such as environmental considerations,
safety management, and the like; 
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evaluation criteria and the relative weightings of price and non-price criteria 
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information to be provided in the tender (linked to the evaluation criteria); and 
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confidentiality and security requirements. 
Basis of the Tender Price
The form and basis of the tender price(s) and price schedules must suit the proposed form
of contract. The option selected will depend on the nature of the contract, the associated
risks, the definition of scope, the nature of the market and other factors.
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Standard contract forms include tender forms and pricing schedules suitable for various
pricing structures. Advice may be needed from procurement experts on the most
appropriate pricing break up for the contract.
Commonly used pricing structures include:
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fixed lump sum price, not subject to rise and fall; 
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lump sum price, subject to rise and fall (using labour and material price indices) to
adjust for inflation; 
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fixed lump sum price for labour, plus material at cost; 
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fixed lump sum prices for separate parts of the contract work, where accepting the price
for one part does not guarantee acceptance of other parts; 
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cost-plus, based on actual material costs and hourly rates for labour, with a margin
applied for overheads and profit; 
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fixed lump sum price, with hourly and other rates and prices used for valuing
variations; 
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fixed lump sum prices applicable to the parts of the contract work that can be
reasonably well defined and quantified, and hourly and other rates and prices for the
parts of the contract work that cannot be reasonably measured until after the parts
have been completed; 
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schedule of rates and lump sum prices applicable to different volumes of products,
work, goods or levels of service; and 
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manufacturers’ published list prices, less specified discounts. 
Standard tender forms and tender price schedules are included in the standard form
documents and templates.
The conditions of tendering may specify a minimum validity period for the tender prices,
after the tender closing date. If stated, the period must allow sufficient time for tenders to
be evaluated, approval of the award of a contract to be given, and the award to be
communicated to the tenderer.
Schedules of Information / Tender Schedules
Respondable (or Returnable) Schedules of information are sought from, and lodged by, the
tenderer to assist the tender evaluation process. They are generally submitted at the time
of tendering, but the RFT documents may also require the tenderer to submit them when
needed after the RFT has closed, on request (for example, to allow financial information to
be sought from only one tenderer).
Schedules of Information (Tender Schedules) may take the form of:
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additional pricing information, such as a schedule of prices that breaks down a lump
sum tender price, to assist in a more detailed comparison of the prices received and in
the future valuation of work completed under the contract for progress payment
purposes; 
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information in relation to the tenderer’s capability to undertake the specified work, such
as the company’s management systems, previous experience, management structure,
proposed personnel and subcontractors; 
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technical schedules that detail the proposed products, plant or equipment that form the
basis of the tender; and 
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deeds of confidentiality for sensitive procurements 
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It is important that the information requested in the schedules and otherwise provides
all that is necessary for the proper evaluation of the tenders and matches the
evaluation criteria to be used. The schedules must be consistent with the conditions of
tendering and allowed for in the Tender Evaluation Plan. 
Standard schedules are included in the standard form documents.
Conditions of Contract
The conditions of contract form the basis for the proposed contract. Standard conditions of
contract are provided in the standard form documents and templates.
Standard Conditions of Contract
Standard conditions of contract depend on the form of contract used and may include
provisions for:
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insurance; 
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indemnity and liability; 
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defects or non-conformances; 
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variations; 
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extensions of time and timing; 
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payment; 
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dispute/issue resolution; and 
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deed of agreement (where applicable). 
Annexure to Standard Conditions of Contract (Contract Information)
The annexure to the standard conditions of contract are specific to the contract and may
include information such as:
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the name, address and full details of the persons that are to act for the parties under
the contract; 
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the purpose and required outcome of the contract; and 
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contract deliverables and required timing. 
Special Conditions of Contract
The special conditions of contract are specific to the contract and may include information
such as:
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progress reporting requirements; 
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management system and plan requirements; 
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amendments to standard conditions; 
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confidentiality requirements; and 
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ownership of designs, inventions, intellectual property and copyright. 
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Specifications
General Requirements
Specifications can apply to products, works or services. They should:
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state clearly and concisely what product, works or service is required; 
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contain sufficient information for tenderers to accurately price their tenders; 
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define the criteria to be used to evaluate the procurement solutions offered; 
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not over-specify requirements; and 
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provide an equal opportunity for all potential contractors to offer products or
deliverables that satisfy user needs, including alternative products incorporating
conforming technical outcomes. 
Types of Specifications
There are three main types of specifications, which may be used separately or in
combination.

Functional specifications define the proposed function to be fulfilled (for example,
provision of a sewage treatment plant that treats the specified input or service to be
provided) Performance specifications define the performance standards to be met by
the product or deliverable, for example the strength and durability of concrete to be
supplied, service quality or other performance attributes.

Detailed specifications describe the detailed technical and physical characteristics of the
product required, such as its physical dimensions, types of materials etc.
Choosing a Specification Type
Generally, functional or performance specifications that focus on results and outputs
instead of inputs or technical characteristics are preferable because they:
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encourage alternative or innovative solutions that may provide better value or
outcomes;
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discourage bias in favour of particular products;
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minimise the impact on product selection of marketing by suppliers.
The potential disadvantages of functional and performance specifications are:

more knowledge and effort may be required to write a sound functional or performance
specification than might be the case with a detailed technical specification, and there
are greater risks that the product may not meet expectations or needs;
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tenderers may need to carry out more design and investigation work in order to
properly prepare their tenders, thus incurring additional costs; and
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delivery times may be greater because of the extra design involved under the contract.
Detailed specifications provide a clear indication, both to the tenderer and the client of what
is to be delivered, but they restrict the opportunity for alternative or innovative solutions.
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Specifications may, and generally do, include various combinations of all three approaches,
allowing freedom for alternatives and innovation where appropriate.
Preparing the Specification
The specification should be prepared using a logical structure that may include the following
elements where they are not covered in the conditions of contract:
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background information; 
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definitions and abbreviations; 
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scope of work; 
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list of applicable documents; 
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standards; 
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external approvals; 
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physical environment; 
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detailed requirements; and 
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compliance or conformance verification requirements. 
Background Information
Complex requirements may be better understood if the background is explained. Giving
tenderers and contractors an appreciation of why a requirement is specified may help them
determine the best solution for client needs. Background information can include:
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the basis or rationale for the requirement; 
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the need to be met by the product or solution or service; 
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an outline of the research undertaken in defining the requirement; 
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a description of the current system, equipment or methods to be replaced or
augmented; 
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the options (if any) considered; and 
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the options that have been dismissed and why. 
Definitions and Abbreviations
Use of jargon should be avoided. If abbreviations, acronyms, technical terms or symbols
are used, they should be defined in a glossary or definition list. Only terms appearing in the
specification should be defined. Definitions included in the conditions of contract and
applying to the whole contract should not be repeated.
For some abbreviations, it may be appropriate to refer to other documents or standards for
definitions, for example, units of metric measure need not be defined, provided the
International System of units is nominated as applicable to the specification.
Scope of Work
The scope description is a summary of the performance requirements, functions and
deliverables required under the contract. It should be written as a concise, stand-alone,
statement that allows potential tenderers and others to quickly understand the nature and
extent of the requirements.
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Scope may include:
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a brief description of the product or service required; 
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the application, purpose or function; 
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any requirements for supply, delivery, installation and commissioning; 
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training requirements; 
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documentation requirements, such as management plans, operation and maintenance
manuals and work-as-executed drawings; 
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the location of the site of the proposed work or service, or the place for delivery and
installation (if applicable); and 
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descriptions of any work or service that is part of a total product, or affects the
satisfactory delivery of the product, which is not the responsibility of the contractor. 
List of Applicable Documents
List the documents that define the requirements with which the contractor must comply in
order to satisfactorily perform the contract (this could be covered in part in the conditions
of contract). Documents that are most commonly referred to are:
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other specifications, including standard specifications; 
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standards; 
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reports, such as geotechnical reports and existing site condition surveys; 
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Government directions and regulations (where specific to the product specification and
not catered for in the conditions of contract); and 
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drawings. 
Only relevant documents should be listed. Subject to the conditions of contract, a listed
document may become part of the specification. Copies of listed documents should be
provided as part of the RFT documents or made available for inspection, unless they are
commercially or publicly available (eg. International and Australian Standards, codes of
practice and the like).
Standards
Standards are the most frequently referenced documents. They can be produced by:
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Standards Australia (InfoSource manages and monitors the corporate subscription for
all Australian Standards - access through DSTA Intranet "Library" tab) 
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the International Standards Organisation (ISO) (international Standards can be
obtained through DSTA Intranet "Library" tab); 
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individual companies; 
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industry organisations, such as for motor vehicle, electronics or biomedical; and 
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Commonwealth and State governments. 
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Under the ANZ Government Procurement Agreement, and through the Australian Industry
and Technology Council, the Commonwealth, State and Northern Territory Governments
have agreed to use Australian Standards in regulation and purchasing, where possible.
Preference should be given to applicable International Standards where they are better
than Australian Standards, where no suitable Australian Standard exists or where the
procurement is influenced by a free trade agreement.
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Reference only those standards that are relevant and applicable. Ensure mandatory standards are
listed. Always use the latest version, unless there are good reasons for using an earlier version.
Standards that are inappropriate or too stringent do not guarantee the appropriateness of the
solution obtained, and may contribute to unnecessary costs.
External Approvals
Where external approvals from other authorities are required and are not covered in the
conditions of contract or under the law, the specification should describe:
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the tasks needing approval; 
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the approving authority for each task; 
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any timing requirements; and 
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the required certification and/or approval. 
Physical Environment
The specification should include a description of the product’s operating environment, or
the site on which the contract work is to be completed, to enable tenderers to properly
assess all the constraints potentially impacting on the satisfactory performance of the
contract. Relevant information includes:
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location; 
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space available to the contractor to perform the contract; 
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access; 
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operating conditions; 
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availability of services (both temporary and permanent); 
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materials to be supplied by the Principal; and 
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any other limitations or requirements relevant to the contractor’s operation on, or use
of, the site. 
Detailed Requirements
The description of the scope of work gives an overview of the requirements. The RFT
Documents need to fully describe the service, product or work to be provided.
The detailed requirements should not exclude the opportunity for alternative or innovative
solutions to be provided where appropriate. The characteristics of already-known product
components or services could be referenced to help in defining the user needs.
The specification should only include requirements that are essential to providing a viable
and practical solution. Optional extras, or aspects that are desirable, should be excluded
where they add a cost that is not consistent with the benefits involved.
The level of detail provided should suit the complexity of the requirement.
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Compliance Verification Requirements
If not documented elsewhere in the contract documents (eg. under the quality
management provisions), the specification should state how the contractor is to verify that
the final product conforms with the detailed requirements. Testing requirements and
acceptance criteria should be specified for individual parts and for the final product, with a
requirement for the contractor to provide a plan showing how all the testing requirements
will be met.
Allowance should be made for some testing to be carried out by authorised, independent,
qualified organisations with the results being fully documented and submitted by the
contractor as verification/validation of compliance.
Acceptance of the product would be subject to the product meeting inspection or
performance test requirements.
Drawings
The type of specification will influence the type and number of drawings (if any) used to
accompany the specification.
Detailed specifications are generally accompanied by detailed drawings, leaving little scope
for tenderers to offer alternative solutions. Provided contractors complete the work in
accordance with the specification and the drawings, they are largely absolved from
responsibility if the product does not work because of flaws in the specification. The
Principal bears this risk.
If detailed specifications and drawings are provided to the contractor, then care must be
taken to avoid potential conflict or ambiguity between the specification and the drawings.
Information should be shown in one location only and cross-references must be clear,
unambiguous and correct.
Where the specification defines performance or functions, drawings can be useful in
showing technical characteristics or providing guidance. Obvious examples include site
drawings, system drawings, concepts and schematics.
When a drawing is part of the RFT documents, ensure that the Principal has either
copyright or the right to use the intellectual property within the drawing. Otherwise, the
Principal may infringe on the rights of the copyright owner. If this right is in doubt, seek
expert advice.
When drawings are produced or revised during a staged procurement, their quality may
vary depending on the stage of procurement or their intended use (for example schematics
for guidance or detailed drawings for manufacture).
Australian Standards for drawings should be consulted and used in specifications for
preparing and revising drawings.
Electronic drawings must be complete and accurate. If produced by CAD, they must be
faithful to the original (eg. layering, colour coding, scaling etc.) if not issued in native
format.
Special Formats
In addition to documents in standard formats and drawings, RFT documents may include
other materials such as samples, models, prototypes, and databases. Approval to issue
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non-electronic formats will need to be sought and obtained, and special arrangements need to
be made with the Tender Issuing Office.
Clear instructions for the use of any electronic databases and/or tender evaluation tool
software involved must be provided to tenderers, in the RFT documents or elsewhere. Ready
access to the software must be available to prospective tenderers for tender preparation and
response, and advice must be readily available on how any problems arising from its use will
be resolved.
Before the RFT documents are issued, any necessary instructions must be given to the Tender
Opening Committee to enable it to open the tenders and fulfil the RFT obligations.
Consultation with Industry
There are sometimes situations where it is advantageous to the proposed RFT process to
release information about the forthcoming tender opportunities prior to the issue of RFT
documents, even at a very early stage in the planning.
Care should be taken to ensure that this information is not prejudicial to the forthcoming RFT,
and cannot be mistaken by the public for the actual RFT. Such information may be issued
directly to industry associations or their representatives, or advertised in a printed publication
or as a notice on the eTendering System web site. It must be made clear when such
information is released that it is not the RFT, and that tenders are not sought at that stage.
The objectives of releasing this information may be to contact or consult with prospective
tenderers or particular industry parties to ensure they have a good understanding of the
forthcoming RFT requirements, or to improve the definition of the requirements or the
specification.
The benefits with such an approach could include:

clarifying and resolving any early questions and concerns that the industry and prospective
tenderers may have;

introducing personnel involved in the development of the RFT process, and raising the
profile of the upcoming RFT to the market place;

providing a forum to promote an understanding of the requirements, to improve the RFT
documents;

assisting industry planning by providing timely information; and

better serving the public interest by providing early access to specific project details.
Public meetings such as industry forums or information sessions usually take the form of one
or more presentations by selected personnel, followed by questions and discussion.
Prospective tenderers may prefer to ask questions, put positions or voice concerns privately.
For this reason, questions may also be sought in advance of the meeting, but care should
always be taken to ensure that no prospective tenderer gains an advantage by doing so.
Third Party Input
Sometimes input is sought from third parties such as industry experts, to help define the RFT
requirements. Parties that are clearly potential tenderers for the RFT, and could be unfairly
advantaged by this early involvement, should not be used. Engaging a party may make it
necessary to preclude them from the subsequent tendering opportunity. Where the
involvement gives no advantage to the party or the advantage can be redressed, the RFT
documents should clearly describe the extent of their involvement and how their input has
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been addressed to avoid an unfair advantage over other tenderers. As far as possible,
relevant information available to the party should be made available to the other tenderers.
Preparing the RFT documents for eTendering RFT documents (including drawings) are
prepared in electronic formats and can be loaded into the eTendering System.
The eTendering system has a high practical limit on size of files and formats may be tailored
to suit each RFT as long as the capability of potential tenderers is considered. Any file formats
that are used and specified in the RFT documents should not provide an unfair advantage to
one tenderer over another.
Some handy hints in regard to file size and formats:
•
•
•
•
Files uploaded to the system should be no more than 10MB
Respondable/returnable schedules of information must be issued in formats such as MS
Word or MS Excel.
File names should be easily correlated to any contents list published in the RFT documents.
There are some limitations in terms of invalid characters.
Packaging of files into zip files for loading should be done in a logical way, eg. Zip sets of
related drawings
More information on electronic tendering, on preparing electronic tender documents, and the
use of the eTendering System is available in Chapter 10.
Document Control
The originals of the issued RFT documents, including any addenda, should form the ‘exhibited
copy’ of the RFT documents, whether in hard copy or soft (electronic form). They may
subsequently form part of an ‘original’ copy of the contract.
Such documents or other material must be controlled from time of approval and issue of the
RFT so that any changes are recorded and kept secure. It is essential to ensure that changes
made to any electronic document are also made to any hard copies and to the exhibited copy.
Review of RFT Documents
After the RFT documents are drafted, a peer review should be carried out to ensure:
• compliance with procurement policy, procedures and processes;
• consistency;
• correctness;
• clarity;
• relevance and completeness of the information; and
• compatibility with the Tender Evaluation Plan.
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Department of Finance and Services
Tendering Manual Chapter 4 – Preparing the Request for Tender Documents
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Approvals
Appropriate approvals should have been sought and obtained from those with the relevant
delegated authority as part of the tendering documentation process. Depending on the
business unit involved, these many include:
• approval of the Procurement Strategy, including the proposed contract form;
• approval of the tendering method;
•approval of the RFT documents;
• approval of the tenderers (where applicable);
•confirmation of the tender evaluation plan by the evaluation team;
• approval to consult with industry, if applicable.
Pre-Tender Estimate for Construction
Before tenders are called, when the RFT documents are essentially complete or the scope
of the work is clear, a pre-tender estimate (PTE) must be prepared. The PTE should be
prepared in a format that is compatible with the tender price schedules and based on current
or projected market prices. Care should be taken to ensure that all aspects of the proposed
contract are included and fully costed.
The Department maintains records of current and past tenders and contracts that can be
used as a basis for establishing current market prices for works of a similar nature.
For technical, complex or unusual procurements it may be necessary to engage expert
assistance.
If the PTE is significantly affected by any addendato the RFT documents, it must be
adjusted.
Reference and Guidance Documents
NSW Government Code of Practice for Procurement
NSW Government Tendering Guidelines
Standard form documents in the NSW Government
Procurement System for Construction.
Acronyms
PTE
RFT
Pre-Tender Estimate
Request for Tender includes tenders,
RFP, RFQ, quotes, EOI, and the like.
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