A paper to be submitted to the management of
national housing cooperation (nhc) to present the prepared tender documents and
advising them on the procedure which you shall adopt to invite contractors to
submit their tender.
General introduction
Contractors
are appointed by clients (or employers) to carry
out construction works. This role is vital to the success of
a project, and so great care should be taken to ensure an
appropriate contractor is selected. This may involve seeking advice
from consultants if the client is inexperienced in which
tender is submitted to employer or client’s consultancy to make an
offer to carry out the works.
For the case of this project
the consultancy services that need to be provided include;
·
The preparation
of the architectural, structural and other related engineering drawings for the
10 house units to be built.
·
Preparation of
tender documents for the 10 house units to be constructed.
Types of tendering methods in
construction
1.
Open
tendering
Under open
tendering the procuring entity advertises his proposed
project in different platforms example PPRA portal, and permits as many
contractors as are interested to apply for tender documents.
However,
this method can be said to be wasteful of contractors’ resources since many may
spend time preparing tenders to no effect. Also, knowing their chances of
gaining the contract are small, contractors may not study the contract in
detail to work out their minimum price, but simply quote a price that will be
certain to bring them a profit if they win the contract.
Thus
the employer may be offered only ‘a gamble of prices’ and not necessarily the
lowest price for which his project could be constructed. If he chooses the
lowest tender he runs the risk the tenderer has not studied the contract
sufficiently to appraise the risks involved; or the tenderer might not have the
technical or financial resources to undertake the work successfully.
It
is right that the employer can check the resources and experience of the lowest
bidder and reject his tender if the enquiry proves unsatisfactory; but several
bids may be below the estimated cost of the job and, if such tenderers appear
satisfactory and their bids are not far apart in value, it is difficult for the
employer to choose other than the lowest.
The
engineer advising the employer may think there is a risk that all such low bids
could prove unsatisfactory, but he cannot advise the employer what other bid to
accept because he has no certainty of information.
2.
Selective tendering
Under selective
tendering the employer advertises his project and invites
contractors to apply to be placed on a selected list of contractors who will be
invited to bid for the project. Contractors applying are given a list of
information they should supply about themselves in order to pass preliminary
examination
The advantage
to the employer is that he can select only those contractors, who have adequate
experience, are financially stable, and have the resources and skills to do the
work. Also, since only half a dozen or so contractors are selected, each
contractor knows he has a reasonable chance of gaining the contract and
therefore has an incentive to study the tender documents thoroughly and put
forward his competitively low price.
However, since
contractors have all pass preliminary examination it is difficult to reject the
lowest bid, even if it appears suspiciously low – unless that is due to some
observable mistake.
A problem with both
open and selective tendering is that a contractor’s circumstances can change
after he has submitted his tender. He can make losses on other contracts which
affect his financial stability; or may be so successful at tendering that he
does not have enough skilled staff or men to deal with all the work he wins.
3.
Negotiated tenders
Are obtained by the employer inviting a contractor of
his choice to submit prices for a project, usually this is for specialized work
or when particular equipment is needed as an extension of existing works, or
for further work following a previous contract.
Sometimes negotiated tenders can
be used when there is a very tight deadline, or emergency works are necessary.
A negotiated tender has a good chance of being satisfactory because, more often
than not, it is based on previous satisfactory working together by the employer
and the contractor.
When invited
to tender the contractor submits his prices, and if there are any queries these
are discussed and usually settled without difficulty. Thus mistakes in pricing
can be reduced, so that both the engineer advising the employer and the
contractor are confident that the job should be completed to budget if no
unforeseen troubles arise.
Pre-qualification
After The
National Housing Corporation (NHC), a cooperative of the Ministry of Lands,
housing and settlement development have advertised the tender, there are maybe
pre qualification process needed to get the number of eligible and required
bidders to tender example the employer may need a contractor to have certain
plants and equipments which are perquisite hence the contractors which do not
meet this requirement will not bid and if they choose to tender they will be
expelled at first stages of evaluation.
It involves seeking information about the contractor’s
experience, capacity and financial standing. The answers to these questions
enable the PE to produce a short
list of suppliers that are
likely to be most appropriate for their particular project.
Short-listed suppliers may then be invited to tender for
the contract.
Tendering
The National
Housing Corporation (NHC), a cooperative of the Ministry of Lands, housing and
settlement development are supposed to prepare tender documents and issue them
into different platforms such as magazine, NHC website or PPRA Portal, The contractor are now needed
to read the contract thoroughly so as to understand all the requirement of the
employer,
There may be queries from contractors, and in
this case, responses should be sent to all contractors. NHC should organize site visits. This can
be beneficial both to the client and to the tenderer as they allow clarification of matters that
might otherwise lead to an inaccurate tender being
submitted, and they can give the PE insights
into potential problems.
NHC procuring team should not make selection based purely on the
lowest price. It
is generally more effective to identify the best value tender, based on pre-defined selection
criteria that relate to the aspects of the contractor performance the organization most values. This might include consideration of
past performance, relevant experience, technical ability, sustainability, health and safety record,
resource availability, management skills and systems and so on.
A contractor will be selected in accordance with procedures
laid down in the Public Procurement (Amendment) Act, 2016 and Public
Procurement (Amendment) Regulations, 2016
UNITS TO
BE BUILT AT THE NHC PREMISES LOCATED IN KIBAHA TENDER NO:”
The Secretary of the Tender Board,
National Housing Corporation (NHC),
Kambarage House,
Ufukoni Street,
P. O Box 2977,
Dar es Salaam,
Tanzania.
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