1. English for Construction Engineering Management ，建筑工 程专业英语 赖小东 授课教师：赖小东 email: tylerlai@126.com. Cell#13627005955 tylerlai@126.com 江西财经大学旅游与城市管理学院工程管理系

2. Construction Project Management

3. Lecture 4 Bidding/Tendering Process 2 1.Introduction 2.Prequalification 3.Building/tendering process 4.Reading:contractor selection.

4. 1.Introduction 3 A bid is a final price or “offer” which is submitted to the client by the contractors. It is a sum of money for which he prepared for the work. The bidding is the process by which the client procures a building project.

5. 2.Prequalification 4 Prequalification is a method of determining bidder responsibility to before soliciting bids.

6. 5 3.INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles 1. BIDDING Procedures Advance notification General procurement notice (required) Announces ICB procurement opportunities Published in UN Development Business Publish minimum 8 weeks before release of bidding or pre-qualification documents Annual updates Notification before bidding –Specific procurement notice Request for bids for specific contracts Published in: –One national newspaper (required) –Official gazette (if any) –Direct notice to firms responding to GPN (required)

7. 6 3.INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles –Specific UN Development Business (Optional - Yes) –Specific Procurement Notice UNDB (required for contracts more than $10 million) –International Press/Journals (optional) –For large specialized or important contracts notice to be advertised in UNDB, and/or well known technical magazines, newspapers and trade publications –Inform embassies of Bank members (encouraged)

8. 7 3.INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles A.Equal opportunity Time for bid submission – generally 8 to12 weeks for large contracts but not less than 6 weeks Fair conditions of contract – use of Bank’s standard bidding documents mandatory Broad specification (identify mandatory and desirable) B.Equal treatment of bidders Disclose evaluation criteria Apply without discrimination C.Award to lowest evaluated bid

9. 8 3.INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles ICB STEPS ① Notification /Advertising ② (Prequalification) where specified in LN/CR ③ Issue Bidding Documents ④ Submission of Bids ⑤ Public Bid Opening ⑥ Send minutes of Bid Opening to Bank

10. 9 3.INTERNATIONAL COMPETITIVE BIDDING (ICB) – Main Principles ICB STEPS (contd.) ⑦ Evaluate and prepare report ⑦ Selection of the lowest evaluated bid ⑧ Post-qualification (when no-prequalification) ⑨ Post bid verification (when prequalification) ⑧ Contract award ⑨ Contract performance ⑩ Bank clearance required before taking actions on 1, 2, 3 and 8

11. 10 PROCUREMENT CYCLE GENERAL PROCUREMENT NOTICE CONTRACT PERFORMANCE AD FOR PRE- QUALIFICATION OR BIDDING CONTRACT AWARD POST- QUALIFICATION PREQUALIFICATION BID OPENING ISSUE OF BIDDING DOCUMENTS BID EVAL. SELECTION PRE-BID CONFERENCE

12. 11 4. OTHER PROCUREMENT METHODS a)Only when ICB is not appropriate or practical b)Must satisfy economy and efficiency requirements c)Provides competition to the extent possible d)Gets the best value for money (reasonableness of price) e)Provides transparency

13. 12 4. OTHER PROCUREMENT METHODS f)Adopt only that method which is specified in LN/CR agreement g)Maintain records of all non-ICB methods h)Aggregate amounts specified for reach non-ICB method as per loan/credit agreement should not be exceeded

14. 13 4.OTHER PROCUREMENT METHODS 2. Limited International Bidding National Competitive Bidding – Yes Shopping (International – Yes) Force Account Direct Contracting

15. 14 4. OTHER PROCUREMENT METHODS 3. INTERNATIONAL COMPETITIVE BIDDING Bid evaluation criteria must be specified – total cost will be compared including import duty, taxes, etc. No domestic preference clause is allowed Foreign bidders if interested should be allowed to bid on same terms and conditions as in ICB document Award should be made to the lowest evaluated bid Bank’s prior review required if specified as per LN/CR

16. 15 5. OTHER PROCUREMENT METHODS 5. SHOPPING International –Appropriate when Off the shelf goods Values are small –No formal bidding document required –No public bid opening required International shopping: –Obtain quotations (proforma invoice) in writing from at least 3 suppliers from 2 different countries

17. 16 OTHER PROCUREMENT METHODS 4. SHOPPING (Cont’d) International shopping: –Obtain quotations (proforma invoice) from at least 3 countries International –Request for quote to indicate Description of goods Standard specifications Desired time & place of delivery – allow adequate time but not less than 3 weeks. No public bid opening required Quotations may be submitted by telex/fax

18. 17 OTHER PROCUREMENT METHODS 4. SHOPPING (Cont’d) –Award should be made to the lowest evaluated offer (retain evaluation report for Post Review) –Purchase order will indicate terms of accepted offer

19. 18 4.OTHER PROCUREMENT METHODS 5. MINOR WORKS Small contracts Works may be dispersed Obtain at least 3 quotations on lump- sum fixed price basis or fixed unit rates Award to the lowest evaluated bid Retain evaluation report for Post Review Use sample document

20. 5.Contracts Used for Construction Projects 1). Contract Types Traditional vs. alternative Classification by method of award and method of pricing Model contracts have been developed by FIDIC, ICE, JCT, AIA, AGC etc.

21. 6.Contracts Used for Construction Projects 2). Method of Award 1. Competitive bidding –formally advertised public work –selective invitation for private work –awarding of contracts by: Lowest responsible bid or Best value i.e.: technical score  price or price + time(f t ), and other variations

22. 6.Contracts Used for Construction Projects 2 Negotiated contracts –Generally private work –Benefits include flexibility of pricing arrangement –Often used on projects of large size and great complexity –Owner may value expertise and integrity of a particular contractor and can award contract without competition that may otherwise exclude that contractor from the work

23. Any Questions?