1. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria TERM PAPER THE BUILDING CONSTRUCTION TENDERING PROCESS IN NIGERIA BY ASAWE ABIODUN EBENEZER ARC/07/0942 SUBMITTED TO PROF. OLU OLA OGUNSOTE JUNE, 2013

2. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA Building construction process begins with documentation. Drawings and specifications have to be produced, bills of quantities prepared, invitations sent out for tenders, tenders appraised are recommendations made to the employer for award of the contract. This events described above in one paragraph may take weeks or months or even years to accomplish, and may require several volumes of documentations, depending on the scope and complexity of the project. The documents required for tendering include:  Drawings and specifications  Bills of Quantities  Schedule of Rates  Invitation to Tender  Instruction to persons Tendering  Information about persons Tendering  Conditions of Contract  Form of tender

3. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA Drawings and Specifications Working drawings and specifications are the most important construction documents. Drawings contain information regarding the design, dimensions, materials and method of construction. The specifications describe the quality of the materials and workmanship required. For minor works the specification may be written on the drawings. Otherwise it will be issued as a separate document often attached to the bills of quantities. It is advisable to have the complete drawings before going to tender. Bills of Quantities While drawings and specifications alone may be adequate for some building contracts, for others, bills of quantities may be required. Bills describe the works to be done and provide quantities of the works trade by trade. A typical page of a bill of quantities is shown in Fig 1.1. It contains six columns, the last two of which are usually left blank to be filled in by the contractor tendering for the job or by the quantity surveyor preparing an estimate for the employer or for comparison with the tenders. Bills are essential for competitive tendering. They provide equal basis for all tenders, as against each contractor’s tender which will be based on his (the contractor) own perception of the drawings. A complete set of working drawings include: Site plan, Foundation plan, Floor plan, Roof plan, Elevations, Sections, Details, Schedules, Structural Drawings, Electrical/Mechanical Drawings

4. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA Schedule of Rates A schedule of rates is an integral part of a lump-sum contract without quantities. Although it looks like a bill of quantities, it is not a bill of quantities. As can be seen in Fig 1.2 below, it contains no quantities and has no column for pricing. Its only purpose is to furnish rates for valuation of variations which may occur in the course of the contract. Invitation to Tender There are two ways of inviting tenders. One is by advertising, referred to as open tendering, the other by selection, referred to as selective tendering. In open tendering the invitation may be advertising in newspapers or notice boards in public places. Advertising brings a lot of responses from all and sundry, qualified and unqualified. In selective tendering invitations are sent out only to selected contractors, known for their competence and integrity. The choice between open and selective tendering would depend on a number of factors, one of which is the time available for processing of the tenders. If the time id tight the fewer the number of contractors tendering, the better, since processing of tenders usually takes a lot of time and paper work. Another factor is the nature and scope of the works to be carried out. For simple buildings, especially where several of the same type and price are to be erected, e.g. in a housing estate, open tendering may be preferred. Engaging several contractors at the same time and place will promote healthy competition and hasten completion of the project. For complex or specialised structures, only known contractors of proven integrity and skill may be invited to tender.

5. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA Invitation to tender should state among other things;  The tender fee  The office to which the tenders are to be returned, and  The closing date and time for return of tenders. For sample of invitation, see Fig 1.3 The closing date for the return of tenders usually comes two to four weeks from the date of invitation to tender, depending on the scope and urgency of the project. Sufficient time should, however be allowed to enable the contractors scout for information that would enable them submit reasonable tenders e.g. current prices of materials, equipment and services. It would be normal to return the tender to the architect. But in government establishments and other public institutions having tender Boards, the Tenders are usually returned to the secretaries of the Tender Boards. Instruction to Person tendering This document explains the tender procedure and provides information that will enable the contractors quote intelligently for the job. Such information includes:  Where the drawing can be inspected  Location of the site  A short description of the work to be carried out  List of drawings and other tender documents  Directions on how to price the bills and complete the form of tender and other tender documents. Sample instructions are indicated in Fig. 1.4

6. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA Information about Persons Tendering This is a standard form which if sincerely completed will enable the employer assess the contractor’s experience and capacity to take on the advertised job. As indicated in Fig 1.5, the form requires the contractor to furnish the employer with certain information regarding:  Jobs completed  Jobs in hand It also calls for information about equipment, staff and funds available to finance the contract. If the contractor is seen to be inexperienced or overloaded or financially incapable, there will be no wisdom in entrusting him with the advertised job. Conditions of Contract Before tendering for a job, the contractor ought to know the terms of the contract which he will enter into if he wins the contract. The document, known as conditions of contract, spells out those terms including the responsibilities of the employer, the contractor and the supervising officers as well as employer, the contractor and the supervising officers as well as penalties for non-compliance with the terms of the contract. Form of Tender The Form of Tender is a standard letter (form) addressed to the employer. It contains blank spaces to be filled in by the contractor. By completing and signing this form, the contractor is offering to undertake the work specified by the employer, under the terms stated in the Condition of Contract.

7. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA The contractor is expected to state the price for which he is prepared to carry out the work and the period he will take to complete it. Also he is to make a declaration to the effect that he has read the conditions of contract and he taken it into consideration in pricing the bills of quantities, and the employer is not bound to accept his or the lowest tender. See sample form in fig. 1.6

8. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA

9. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA

10. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA OPENING OF TENDERS After the closing date stated in the invitation to tender, the secretary of the Tenders Board will arrange for opening of the tenders. The chairman of the Board must be present. The architect, the quantity surveyor and the contractors may also attend to witness the opening. The process entails opening of the tenders’ box by the chairman and the secretary both of whom hold the keys of the box. This is followed by stamping and authentication of the tenders by the chairman and board members present. A list of the tenders is then prepared, indicating contractor’s name, address, tender sum, completion time and any other relevant information. The completed list is then stamped, dated and signed by the chairman and members of the Tenders board present. After the opening, the tenders will be sent to the architect/quantity surveyor for appraisal. APPRAISAL OF TENDERS The aim of appraisal is to analyze the tenders and bring out facts that will enable the employer make a decision on the tenders. In doing this, the appraiser should not consider the tenders alone but also the persons or firm tendering. Both the tenders and the persons or firms tendering have to be assessed.

11. ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria ARC 807: Professional Practice and Procedure Department of Architecture, Federal University of Technology, Akure, Nigeria THE BUILDING CONSTRUCTION TENDER PROCESS IN NIGERIA RECOMMENDATION The architect’s recommendation should come as a result of a careful consideration of all the points and issues discussed above. The lowest tender may not be the best. If, for example, the employer needs the building urgently, the completion time may be the deciding factor. The completion time must, of course, be realistic. If time is not of the essence. All other things being equal the lowest tender should be recommended.