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Note

20/2/2023: Revised.

25/3/2020: Collecting Tender Documents, tender deposit and tender bond updated.

24/12/2014: Moved from wiki.

Intro

Quantity Surveyors play a leading role in moving forward the tender invitation, tender analysis and contract award stages to ensure fair competition on a common basis.

(added, 20/2/2023)

Selection of tenderers 投标者的选择

1. Open tendering:
   公开招标
   • Invitation through newspaper advertising
   • Invitation through gazette notice with restrictions to approved list of tenderers
   • Invitation through web portal
   • Expression of interest and pre-qualification of tenderers required if tenderers are not invited from an approved list.
2. Selective tendering:
   选择性邀请:
   • From an approved list
   • Suggested by the Project Team
   • Pre-qualification of tenderers required if tenderers are not familiar to the Project Team or the nature of the Works is special to the criteria for the approved list
   • Expression of interest required to see whether the tenderers are willing and able to tender
   • Invitation by letter.
3. Negotiation with a single tenderer:
   单一议标:
   • Based on past project relationship and prices.
4. Avoidance of collusion.
5. Balance between transparency and confidentiality.

Expression of interest and pre-qualification of tenderers 投标意向及资格预审

1. Purposes:
   • Permit only those qualified to tender
   • Avoid incompetent tenderers submitting lowest tenders.
2. Possible contents of a letter requesting for expression of interest:
   • Information to prospective tenderers:
     • Scope of the Project
     • Scope of the Works to be tendered for
     • Particulars of the Client and Employer for the project
     • Particulars of Architect, Engineers, AP, RSE, Quantity Surveyor
     • Type of contract:
       • Lump sum or remeasurement
       • With or without Bills of Quantities, or with standard schedule of rates
       • With or without fluctuation clause
     • Payment terms
     • Expected date for issuance of tender documents
     • Tendering period
     • Construction programme
   • General company information required to be submitted:
     • Descriptions on past and current experience in similar works, together with a job reference list
     • Current and anticipated work load for the coming 12 months
     • Experience in working on restricted areas similar to the proposed site
     • Business registration certificate
     • Certificate of incorporation, if a company
     • Contractor’s registration certificates
     • Audited accounts for the last <> years (strict confidence to be observed by the Client and the Consultants)
     • Statement of all convictions or no convictions under the Immigration Ordinance (Cap. 115) for last <> years
     • Statement of all convictions or no convictions under the Factories and Industrial Undertakings Ordinance (Cap. 59) for last <> years
     • Statement of all convictions or no convictions under the Employment Ordinance (Cap. 57) for last <> years
     • Statement of involvement in arbitration or litigation in the last <> years or foreseeable in the next <> months.
3. Project specific information required to be submitted:
   • CV of key professional or technical staff which are capable of undertaking the Works and may be assigned to the Works
   • Details of the fabrication yards which may be used for the Works
   • Financial capability to adopt the payment terms mentioned above
   • Estimation of the delivery and installation periods required for the Works
   • If an alternative tender based on Contractor’s design is considered:
     • Descriptions of past experience and capability in undertaking the design work
     • Names of the prospective designers
     • Preferred tendering period
   • Time and mode of submission
   • Client is not bound to invite any contractors who have expressed interest to tender
   • Contact person in case of queries.

Selection criteria 预审准则

1. Technical and financial capability of the company.
   公司的实力及财政状况
2. Technical capability of the proposed project staff.
   拟用项目人员的实力
3. Past experience.
   工程履历
4. Track records.
   往绩
5. Safety records.
   安全纪录
6. Non-compliance records.
   违规纪录
7. Current workload.
   现时工作量
8. Claims history (not apparent from the pre-qualification submissions).
   索赔纪录
9. Off-site manufacture (e.g., MiC):
   • Similar criteria for manufacturers and their designers
   • Factory quality inspection, testing and certificates
   • Delivery and transportation schedule and logistics.
10. Scoring by:
    • Qualitative judgment
    • Marking scheme.
11. Scoring scheme disclosed or not disclosed to tenderers.

(revised, 20/2/2023)

Invitation letter 邀请函

1. Confidential list of tenderers.
2. Invitation letter to be marked "CONFIDENTIAL"
3. Description of the Works.
4. Documents and drawings issued.
5. Place and time for collection of documents and drawings.
6. Arrangement for tender deposit and tender bond.
7. Arrangement for tender briefing and site walk.
8. Time and mode of submission.
9. Tender submissions to be in sealed envelope marked "CONFIDENTIAL".
10. Specified tender label or envelope for submission.
11. Contact person in case of queries.
12. (Terms and conditions intended to form part of the Contract should be given in the Tender Documents rather than in the Invitation Letter.)

Tender Documents issued

1. Tender Booklet.
2. One set of drawings as listed or referred to in the Schedule of Drawings.
3. One duplicate copy of the Tender Booklet for retention by the Tenderer (really essential?).
4. One duplicate copy of the Form of Tender (really essential?).
5. Electronic documents (precedence against hardcopies).

Drawings

1. Tender Drawings comprising:
   • Drawings actually issued to tenderers
   • Drawings available for inspection
   • Standard Drawings referred to in the Specification or other Tender Drawings.
2. Theoretically, BQ (Taking-off) Drawings = Tender Drawings = Contract Drawings.
3. How to manage these drawings to avoid discrepancies.
4. Generally, preliminary design drawings submitted by the tenderers to be for reference only.

Collecting Tender Documents 领取招标文件

• If a tender invitation is issued on Friday, whether the office will be open on Saturday should be stated to avoid encountering office closure.

Tender deposit 投标工本押金

1. Usually required by incorporated owners for renovation of buildings to compensate the printing costs of Tender Documents (including Drawings) collected by tenderers invited through open tendering with a slight effect of deterring tenderers not genuine to tender.
2. Payable upon collection of Tender Documents.
3. Usually refunded to unsuccessful tenderers who have submitted tenderers.
4. Only the successful tenderer's tender deposit will not be refunded.

Tender bond 投标担保书

1. Intended to be submitted with the tender to guarantee that the tenderer will abide by the tender without withdrawal, otherwise the tender bond will be forfeited.
2. Not usually required in Hong Kong.

Inspection of Tender Documents 检查招标文件

1. It may be possible (like in the old days) not to issue the full set of Tender Drawings to the tenderers. They would be required to come to the Architect's or the Quantity Surveyor's office to inspect the Tender Drawings by prior appointment.
2. Tender Drawings nowadays are usually in electronic form and can therefore be given to the tenderers in full.

Inspection of ground investigation reports

1. It is also possible and more likely that ground investigation reports are not given to the tenderers. They would be required to come to the Architect's or the Quantity Surveyor's office to inspect the reports by prior appointment.
2. Although ground investigation reports are usually made available to the tenderers for reference only with no admission of applicability, such reports are important references to the tenderers. It is available to give to the tenderers especially when the tenderers are required to provide foundation design proposals.

Tender briefing and site walk 交底会及现场踏察

1. Joint meeting or separate meeting to be decided.
2. Confidentiality, convenience and trust to be ensured.
3. Introduction to tenderers.
4. Tenderers to raise queries and problems.

Answering tender queries 提问答疑处理

1. When answering individual tenderer's tender queries, re-phrase into common answers to all tenderers so that all are tendering on the same basis.
2. Some tender queries may not be well written. Re-phrasing would be preferred.
3. Issue as Tender Clarification Letters or Tender Addenda.

Issuing Tender Addenda 修改通知

1. Revisions may be required after issuing the Tender Documents because:
   出标后可能需要修改：
   • The Tender Drawings or Specification has been changed
     图纸或规范改动了
   • The Bills of Quantities have not really been completed yet
     清单尚未计完
   • Errors have been discovered.
     发现有错
2. Latest time for issuing Tender Addenda.
3. Revised or additional pages to be marked and labelled as follows: 
   修改或增加页应予以标示：
   • Marking with "*" against the page number to indicate first revision, with "**" to indicate second revision
     页码旁加"*"表示第一次，"**"表示第二次
   • Labelling at the page header or footer with "Tender Addendum No. 1".
     ​在页首或页尾加 "投标修改通知1" 的字样
4. Highlighting of changes.
5. Different dates and filenames on different pages to be avoided for documents.
6. Date stamping required for Tender Drawings which do not usually have a corresponding revision version number.
7. Covering letter:
   • Letter to be marked "CONFIDENTIAL"
   • Amended or additional documents and drawings issued
   • Description of the changes and instructions to make the changes (either in the letter or in an appendix)
     • Pages or sheets to be replaced, added or deleted
     • Clarification statements
   • Place and time for collection of documents and drawings
   • Any change to the tender return deadline
   • Other terms and conditions remain unchanged
   • Contact person in case of queries
   • Acknowledgement of receipt by couriers
   • Confirmation of incorporation of tender addenda by tenderers.

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Note

20/2/2023: Expanded.

Rates and prices

See "Rates and Prices" for basic understanding.

Reading materials

1. Read the chapter on Pricing and Tendering of “Quantity Surveyor’s Pocket Book Second Edition” authored by Duncan Cartlidge, which gives examples of how to build up preliminaries prices and unit rates for measured works for tendering.
2. Preview the “Code of Estimating Practice Seventh Edition” published by the Chartered Institute of Building at  https://books.google.com.hk/books?id=gBJDjH5S61wC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false. This book explains what a tenderer should consider at the time of tendering. Site inspection during tendering to understand all conditions on or around the site which may affect the carrying out of the Works should be carefully and thoroughly done, and the implications allowed for in the tender prices and completion times.

General principles

1. Both describe the practice in the UK contexts. The wage rates, working rules, tax system, materials and productivity mentioned there may not applicable to Hong Kong, but the methodology and principles can be shared.
2. Learn the following concepts:
   • Use all-in hourly rates
   • Include on-costs (not directly paid to the workers, plant hirers, suppliers and sub-contractors) on the direct costs
   • Use labour gang rates
   • Include costs of non-productive time (labour and plant) while payment is still needed
   • Distinguish between quantities measurable for payments from those quantities consumed (waste, breakage, theft, loss, shrinkage, bulking, unmeasured laps, minor items, etc.) but not measurable for payments and include the costs of those not measurable in the rates for the quantities measurable
   • Use representative sample size to calculate the total cost before averaging it to unit cost per quantity so that costs not directly proportional to the quantity can be shared by the unit rates.
3. The volume of ground materials becomes bulkier after excavation and this will require bigger transportation means.
4. Conversely, bigger volume is required to fill up a space because of compaction and packing.
5. Concrete and cement mortar shrink after mixing.
6. The cost impact should be taken into consideration.

Estimating from the first principle

1. Estimating or building up the unit rates from their constituent costs is called “estimating from the first principle”. This is unlike using a unit rate from other projects.
2. Such estimate would need a knowledge of the required constituent quantities of the materials, labour and plant in constructing a work item.

Approximate materials, labour and plant constants (based on Quantity Surveyor’s Pocket Book”)

1. Labour constants are not really constants and do vary depending on the site and weather conditions and work complexity. “Labour contents” is more appropriate.
2. More decimal places have been given below for the sake of consistency only. It does not mean that the figures are as accurate as to the decimal places given.

Item	Description	Qty	Unit
1	Generally
1.1	Labour unloading materials	1.0	Hours/tonne
2	Excavation and filling
	Bulking
2.1	Sand/gravel	10%
2.2	Clay	25%
2.3	Chalk	33%
2.4	Rock	50%
	Hand excavation under normal conditions and in medium clay or heavy soil
2.5	Bulk excavation commencing at reduced levels not exceeding 2m deep [“reduced levels” means the levels after oversite excavation to the undersides of hardcore beds of on-grade concrete slabs]	2.4	Hours/m3
2.6	Ditto over 2m not exceeding 4m deep	2.7	Hours/m3
2.7	Foundation excavation commencing at reduced levels not exceeding 2m deep	4.0	Hours/m3
2.8	Bulk excavation in trenches, commencing at reduced levels not exceeding 2m deep	3.3	Hours/m3
2.9	Filling obtained from excavated materials final thickness exceeding 500mm deep	1.0	Hours/m3
2.10	Retaining excavated material on site in temporary spoil heaps distance not exceeding 50 meters	1.0	Hours/m3
	Multipliers to the above for excavations other than in medium clay
2.11	Loose sand	x 0.75
2.12	Stiff clay or rock	x 1.50
2.13	Soft rock	x 3.00
	Plant productivity
2.14	0.25m3 bucket excavator	0.2	Hours/m3
3	Hardcore filling
	Addition to volume to cover compaction and packing
3.1	Hardcore using brick, stone, etc.	20%
	Alternatively, weight to buy to give compacted volume
3.2	Brick ballast	1,800	kg/m3
3.3	Stone ballast (kg to buy to give compacted volume)	2,400	kg/m3
	Labour
3.4	Imported filling as bed over 50mm but not exceeding 500mm deep, 350mm finished thickness	1.5	Hours/m3
3.5	Ditto exceeding 500mm deep	1.0	Hours/m3
3.6	Surface treatments compacting filling (SMM7 only)	0.2	Hours/m2
3.7	Surface treatments compacting sloping surfaces (SMM7 only)	0.4	Hours/m2
3.8	Blinding bed, not exceeding 50mm thick, level to falls, cross falls or cambers, 40mm finished thickness	0.5	Hours/m3
	Plant productivity
3.9	Medium-sized mechanical shovel spreading and levelling hardcore	15	m3/hour
3.10	Roller consolidating hardcore in 150mm layers	15	m3/hour
4	Concrete
	Weight to buy to give volume before shrinkage
4.1	Cement in bag	1.28	tonnes/m3
4.2	Cement in bulk	1.28-1.44	tonnes/m3
4.3	Sharp sand (fine aggregate)	1.60	tonnes/m3
4.4	Gravel (coarse aggregate)	1.40	tonnes/m3
	Addition to volume to cover shrinkage
4.5	Concrete	40%
	Waste
4.6	Concrete placing	5%
	Labour
4.7	Labourer hand mixing concrete	4.0	Hours/m3
	Mechanical mixing, transporting up to 25 meters, placing and compacting, plain in situ concrete
4.8	Concrete in trench filling	2.0	Hours/m3
4.9	Horizontal work exceeding 300mm thick in structures	1.5	Hours/m3
4.10	Sloping work not exceeding 15 degrees and exceeding 350mm thick in structures	3.0	Hours/m3
	Mechanical mixing, transporting up to 25 meters, placing and compacting, reinforced in situ concrete, packing around reinforcement and into formwork
4.11	Concrete in trench filling	4.0	Hours/m3
4.12	Sloping work not exceeding 15 degrees and exceeding 350mm thick in structures	4.5	Hours/m3
4.13	Vertical work exceeding 300mm thick in structures (walls)	6.0	Hours/m3
4.14	Vertical work exceeding 300mm thick in structures (columns)	8.0	Hours/m3
	Hand loaded concrete mixers, concrete output
4.15	100 litre mixer	1.2	m3/hour
4.16	150 litre mixer	1.8	m3/hour
4.17	175 litre mixer	2.1	m3/hour
4.18	200 litre mixer	2.4	m3/hour
	Mechanical feed concrete mixers, concrete output
4.19	250 litre mixer	4.0	m3/hour
4.20	300 litre mixer	7.2	m3/hour
4.21	400 litre mixer	9.6	m3/hour
4.22	500 litre mixer	12.0	m3/hour
5	Reinforcement
	Waste
5.1	Bar reinforcement – for binding wire and rolling margins	5%
5.2	Fabric reinforcement – for waste and laps	12.5-15%
	---
5.3	Labour unloading reinforcement	4.0	Hours/tonne
	Labour cutting, bending and fixing reinforcement
5.4	10mm diameter bars	4.0	Hours/50kg
5.5	10-16mm bars	3.0	Hours/50kg
5.6	over 16mm bars	2.75	Hours/50kg
5.7	Fabric reinforcement	30	m2/hour
6	Formwork
	Skilled labour fixing metal formwork
6.1	Soffits of horizontal work not exceeding 300mm thick, propping not exceeding 3m high	1.8	Hours/m2
6.2	Soffits of sloping work, sloping one way	2.5	Hours/m2
6.3	Vertical surfaces of walls	2.0	Hours/m2
6.4	Edges of horizontal work not exceeding 500mm	0.2	Hours/m
	Skilled labour fixing stripping formwork
6.5	Soffits of horizontal work not exceeding 300mm thick, propping not exceeding 3m high	1.0	Hours/m2
6.6	Soffits of sloping work, sloping one way	1.2	Hours/m2
6.7	Vertical surfaces of walls	1.0	Hours/m2
6.8	Edges of horizontal work not exceeding 500mm	0.1	Hours/m
7	Precast concrete units
	Waste
7.1	Lintels, sills, copings and plank floors – for damaged or broken units	2.5%
	1 Bricklayer + 1 labourer
7.2	Hoisting and fixing a 225 x 150mm lintel up to 3 metres above ground	0.3	Hours/m
8	Cement mortar
	Weight to buy to give volume before shrinkage
8.1	Cement	1.40	tonnes/m3
8.2	Sand	1.60	tonnes/m3
8.3	Hydrated lime	0.60	tonnes/m3
	Addition to volume to cover shrinkage
8.4	Cement mortar	25%
	Waste
8.5	Cement mortar	5%
	Labour
8.6	Labourer mixing mortar	4.0	Hours/m3
	Mortar mixers, mortar output
8.7	100 litre mixer	0.25	Hours/m3
9	Brickwork
	Number of 215 x 102.5 x 65 mm bricks with 10 mm mortar joints per m2 wall one brick thick
9.1	Stretcher bond	60	No./m2
9.2	Header bond	120	No./m2
9.3	English bond	90	No./m2
9.4	Flemish bond	80	No./m2
	Volume of mortar
9.5	Half-brick walls	0.03	m3/m2
	Waste
9.6	Bricks – cutting and waste	7.5-12.5%
9.7	Damp-proof courses not exceeding 300mm wide – waste and laps	5%
	1 Bricklayer + 0.5 labourer
9.8	Laying bricks	60	No./hour
9.9	Forming cavity 50mm wide including building in wall ties at 5/m2	0.10	Hours/m2
9.10	Laying 1 layer pitch polymer damp-proof course not exceeding 300mm wide	0.10	Hours/m
9.11	Extra over walls for closing cavities with brickwork at opening perimeters	0.35	Hours/m
9.12	Bonding half-brick walls to existing	1.10	Hours/m
9.13	Bedding and pointing frames	0.05	Hours/m
9.14	Holes for pipes 50mm diameter in existing half-brick wall	0.25	Hours/No.
9.15	Ditto over 110mm diameter in existing half-brick wall	0.30	Hours/No.
9.16	Ditto over 150mm diameter in existing half-brick wall	0.55	Hours/No.
10	Blockwork
	Waste
10.1	440 x 215 x 100 mm concrete blocks – cutting and waste	5-10%
	Labour
10.2	Gang laying lightweight concrete blockwalls	0.50	Hours/m2
11	Asphalt work
	25 kg/block asphalt roofing covering capacity
11.1	First 12mm thickness	35	m2/1000kg
11.2	Additional 3mm thickness	150	m2/1000kg
	Waste
11.3	Asphalt roofing	2.5%
	1 Craftsman + 1 labourer laying
11.4	19mm two-coat asphalt roofing	0.15	Hours/m2
11.5	Skirtings, fascias and aprons 150-225mm girth (including internal angle fillet and labours	0.60	Hours/m2
12	Felt roofing
	Waste
12.1	Felt roofing – waste and laps	15%
13	Tile roofing
	Waste
13.1	Nails	5%
13.2	Tile roofing	10%
	1 Tiler + 1 labourer laying tile roofing
13.3	60mm lap, 63No., 0.09kg tile nails, 10.08m battens, 0.11kg batten nails	0.67	Hours/m2
13.4	75mm lap, 68No., 0.10kg tile nails, 10.88m battens, 0.12kg batten nails	0.73	Hours/m2
13.5	90mm lap, 74No., 0.11kg tile nails, 11.84m battens, 0.13kg batten nails	0.79	Hours/m2
13.6	100mm lap, 78No., 0.12kg tile nails, 12.48m battens, 0.14kg batten nails	0.83	Hours/m2
	1 Tiler + 0.5 labourer
13.7	Fixing tile battens, including unloading	2.50	Hours/100m
14	Carpentry/carcassing
	Waste
14.1	Carpentry/carcassing	7%
	Carpenter/joiner fixing
14.2	Plates, sleepers	0.10	Hours/m
14.3	Partitions	0.15	Hours/m
14.4	Floor joists	0.18	Hours/m
14.5	Upper floor joists	0.20	Hours/m
14.6	Strutting between 200mm joists	0.35	Hours/m
15	General joinery: first fixing
	Waste
15.1	General joinery: first fixing	7%
15.2	Chipboard flooring	10%
	Carpenter fixing
15.3	Gutter boarding	1.0	Hours/m
15.4	19mm fascias	1.0	Hours/m
15.5	Barge boards	0.4	Hours/m
15.6	Chipboard flooring	0.5	Hours/m2
16	Unframed joinery: second fixing
	Waste
16.1	Unframed joinery: second fixings	7%
	Joiner fixing
16.2	Architraves (19 x 50mm)	0.10	Hours/m
16.3	Skirtings (19 x 75mm)	0.15	Hours/m
16.4	Window boards	0.30	Hours/m
16.5	Allow 0.05kg nails per m
17	Doors, shutters and hatches and associated ironmongery
	Joiner fixing and hanging on standard hinges
17.1	Standard doors	1.4	Hours/No.
17.2	Solid core doors	2.0	Hours/No.
17.3	Door lining sets 1050 x 1200mm	3.0	Hours/No.
17.4	Standard casements	1.1	Hours/No.
17.5	Staircases – straight flight	5.0	Hours/No.
18	Finishes
	Covering capacity
18.1	11mm browning plaster (undercoat)	135-155	m2/tonne
18.2	11mm tough coat plaster (undercoat)	135-150	m2/tonne
18.3	11mm hardwall plaster (undercoat)	115-130	m2/tonne
18.4	2mm board finishing plaster	410-430	m2/tonne
18.5	2mm finishing plaster	410-430	m2/tonne
18.6	13mm universal one coat plaster	85-95	m2/tonne
	Consumption
18.7	1mm thick tile adhesive including grout	2	litre/m2
	Waste
18.8	Plaster	10%
18.9	Tiles	10%
18.10	Tile adhesive and grout	5%
	1 Plasterer + 1 labourer
18.11	1 base coat	0.20	Hours/m2
18.12	1 finishing coat	0.25	Hours/m2
18.13	Ceilings – add	25%
18.14	Floor screeds	0.30	Hours/m2
18.15	Wall tiles	0.60	Hours/m2
19	Glazing
	Consumption
19.1	Glazing compound per metre of bedding	0.2	kg/m
	Waste
19.2	Glass cutting	10%
19.3	Glass fixing	10%
19.4	Glazing compound and glazing beads	5%
	Labour
19.5	Glazing	15	m2/hour
20	Plumbing
	Craftsman installing rainwater installations
20.1	110mm plastic rainwater pipes	0.50	Hours/3m
20.2	65mm plastic rainwater pipes	0.50	Hours/3m
20.3	Fittings	0.10	Hours each
	Craftsman installing waster installations
20.4	32mm plastic wastes	0.30	Hours/3m
20.5	110mm plastic soil pipes	0.35	Hours/3m
20.6	Fittings	0.15	Hours each
	Craftsman installing hot and cold water installations
20.7	15mm light gauge copper tube with capillary joints fixed with pipe clips @ 1m centres	0.20	Hours/m
20.8	28mm ditto	0.25	Hours/m
20.9	Fittings	0.40	Hours each
20.10	Pipe ancillaries	0.80	Hours each
	Craftsman installing sanitary fittings
20.11	Lavatory basins including wastes and pair taps	2.50	Hours/unit
20.12	Baths including wastes and pair taps	2.80	Hours/unit
20.13	Close-coupled WCs	2.25	Hours/unit
20.14	Show trays with wastes, traps, mixers and shower fittings	6.00	Hours/unit
21	Painting
	Coverage
21.1	1st coat emulsion paint	15	m2/litre
21.2	2nd coat emulsion paint	8	m2/litre
	Skilled labour
21.3	Knotting and stopping	4.5	Hours/100m2
21.4	Priming	11.0	Hours/100m2
21.5	Painting undercoat	14.0	Hours/100m2
21.6	Painting gloss coat	18.0	Hours/100m2
21.7	Painting emulsion paint	8.0	Hours/100m2
21.8	Preparation of surfaces (rubbing down between coats, etc.)	4.0	Hours/100m2
22	Wallpaper
	Skilled labour
22.1	Stripping off old paper to walls	1.0	Hours/10m2
22.2	Applying size on walls	0.5	Hours/10m2
22.3	Hanging lightweight paper on walls	2.0	Hours/10m2
22.4	Hanging heavyweight paper on walls	2.5	Hours/10m2
22.5	Hanging on ceiling – add	50%
23	Manholes and inspection chambers
	Labour
23.1	Based on other trades – add for working in confined spaces	25%

Mainland, China

1. National standard price books:
   • China has published national standard price books giving unit rates for all common items for all kinds of construction works.
   • It has also published materials, labour and plant contents (“quotas”) for building up the unit rates.
   • As they are national standards, provinces and cities use them as the base to publish local price books and quotas to cater for local conditions.
   • The unit rates are direct costs.
   • Further additions are required to cover indirect costs, overheads, profits, taxes and charges, which usually use part or whole of the direct costs as the base for percentage mark-ups.
2. Old practice:
   • In the old days, the price books and quotas were rigidly applied.
   • The mark-up factors were regulated by the central or local governments.
   • As the unit costs of materials, labour and plant might vary, local supervisory authorities published as and when necessary cost adjustment factors to be applied on the relevant general materials, labour and plant costs.
   • Uncommon materials’ costs might be adjusted individually.
   • The central or local governments or local supervisory authorities also adjusted the mark-up factors as and when necessary.
   • Instead of adjusting the unit rates individually, the relevant costs were extracted and summed up to serve as the bases for adjustments.
   • This was a tedious process if done manually when software was not available.
   • The same system and method were applied to tender pricing.
   • This means that the unit rates were not all-in rates. In order to calculate the cost effect of changing 1 unit quantity of work item, one would need to make many adjustments to the unit rate to get the total cost.
   • Using the same fixed sets of unit rates, quotas, mark-up factors and adjustment factors mean that all tenderers’ unit rates should be the same, and this would mean no competition.
   • The unit rates would not truly reflect the productivity of individual contractor.
   • This was more like an accounting system when the contractors were all state-owned and appointed by the local supervisory authorities to individual projects without the need for competitive tendering.
3. Later practice:
   • Later, China promoted competition, and allowed the tenderers to compete the price levels, but still required them to follow the quotas per unit quantity, i.e., separating the constituent quantities and costs making up the unit rates.
   • However, if a tenderer genuinely estimates the unit cost but is bound to use the same constituent quantities, he has to adjust the constituted unit costs to compensate.
   • This would mean both the constituent quantities and unit costs would not be genuine.
   • Nowadays, to ensure competition based on the tenderers’ own productivity, China has given greater flexibility for the tenderers to estimate their unit rates without strictly following the price books and quotas.
   • However, the standard price books, quotas and pricing system still have great influence and guiding effects.

Example constants for building up unit rates in mainland, China

Source: National Standard Basic Constants (Quotas) for Builder’s Works (GJD-101-95).

 

Hong Kong

1. Hong Kong does not have a publicly published set of materials, labour and plant contents, while contractors may have their in-house data.
2. However, whether most of them have such data is doubtful, because contractors would usually rely on and require their sub-contractors to quote unit rates per work or supply quantity, even for labour-only sub-contracting.
3. Only the lowest tier of sub-contractors (usually labour-only sub-contractors) may need to estimate the labour contents.
4. They may as well quote based on past project unit rates with adjustments.
5. In case of labour-only sub-contracting, the contractors would need to estimate the materials and plant contents.
6. In this connection, correct estimate of the materials’ waste factors is very important, and should not rely simply on the published waste factors applicable outside Hong Kong.
7. When preparing the final accounts, it may be required to find out the labour contents allowed for in the unit rates.
8. The way to do it is to subtract the more certain material costs from the all-in unit rates first and dividing the remainder by the daily wage rate to obtain the mandays required.
9. The mark-ups for profit and overheads and the plant costs should also be dealt with in the calculation.

Direct costs

1. The costs of materials, labour and plant directly incurred due to the carrying out of a specific work item is called “direct costs”.
2. “Direct” means that if the quantity of the work item is changed, the costs will also change sensitively.

Indirect or overhead costs

1. There are indirect costs which are costs of supporting work or services which are not directly related to or do not sensitively change relative to the quantities of a specific type of work items but are commonly required and shared by more than one type of work items. They are called “overheads”.
2. There are two kinds of overheads. One is called “head office overheads”. The other is called “site overheads” or "project overheads”.

Head office overheads and profit

1. Head office overheads are the costs of running the contractor’s company whether a particular project is undertaken or not.
2. However, all projects on hand must contribute to support the head office overheads. Since head office overheads are continually incurred, timely contribution is important. If the contribution from a particular project has become low or slow, the company will suffer. If the cause of the loss is something for which the Employer is responsible under the construction contract, this will be a matter for claims.
3. A contractor’s annual profit and loss account statement may show the following:
   • Turnover (prices received from projects)
   • Less Cost of sales
   • Gross profit
   • Add Other income
   • Less Administrative expenses
   • Profit before tax
   • Less Profits tax
   • Profit after tax.
4. The administrative expenses may include:
5. Head office staff salary
   • Director's remuneration
   • Mandatory Provident Fund
   • Audit fee
   • Bad debt
   • Bank charges
   • Cleaning
   • Computers, accessories and software
   • Currency revaluation difference
   • Depreciation
   • Entertainment
   • Insurances
   • Loss on disposal of fixed assets
   • Postage and courier
   • Printing and stationery
   • Professional fees and charges
   • Rents and rates
   • Repair & maintenance
   • Staff welfare
   • Sundry expenses
   • Telephone and fax
   • Travelling expenses
   • Water and electricity.
6. The profit is whatever left over after subtracting the costs and expenses from the prices.
7. The profit and overheads allowed for in tenders are usually calculated as percentage mark-ups on the direct costs (i.e., cost of sales).
8. If the account is healthy, to maintain the same level of contribution to profit and overheads:
   • The percentage mark-up for gross profit (i.e., including overheads) would be
     • = Gross profit / Cost of Sales
   • The percentage mark-up for head office overheads would be
     • = Administrative expenses / Cost of sales x 100%
   • The percentage mark-up for net profit (i.e., excluding overheads) would be
     • = Gross profit percentage – head office overheads percentage.

Site or project overheads

1. Site overheads or project overheads are the costs which are incurred on top of the regularly incurred head office overheads when a project is undertaken, and are those costs of commonly shared work or services not priced as part of the direct costs of the permanent work items.
2. Project staff do not necessarily station on the site all the time.
3. Site/project overheads may be priced as a percentage mark-up on the direct costs, but major costs would usually be priced in the Preliminaries Bill or Specification Preliminaries Section.
4. See headings of preliminaries items.
5. Preliminaries items should also be priced based on direct costs plus profit and head office overheads.

工程承包造价的组成

1. 按资源划分:
   • 人工费
   • + 材料费
   • + 机械使用费
   • = 直接费
   • + 管理费
   • = 成本
   • + 利润
   • = 税前造价
   • + 按造价计取的税金
   • = 税后造价(综合单价)
2. 按计价文件划分:
   • 开办经营费(措施费)
   • + 工程量x综合单价
   • + 指定项目(分包及供货)暂定价
   • + 分包管理配合费
   • + 暂定款
   • + 施工不可预见费
   • + 点工单价表
   • = 承包总价

管理费分为

1. 企业(公司)管理费:
   • 香港一般是按其他的工程成本计取费率，并摊在所有单价内
2. 项目管理费:
   • 可以专项的计在开办经营费内，或按其他工程的成本计取费率摊在单价内

利润

• 香港一般是按其他的工程成本计取费率，并摊在所有单价内

税金

• 香港工程未有营业税、销售税等增值税种，只有利得税

分判制度

询价

暂定供应单价

管理费及利润的取费方法

开办经营要求 / 措施费的估算

暂定款及指定项目暂定价

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主要措施

1. 减少投标价过低不足成本的可能
2. 了解工程及合同的要求
3. 分析影响价格的因素及风险
4. 转移风险是节流的一个重大措施
5. 分包是转移风险的体现

要充分了解合同及工程的要求

1. 了解招标文件
2. 检查招标文件有没有遗留
3. 检查招标文件的规定有没有矛盾不清不实际的地方
4. 叁加交底会
5. 书面提出疑问
6. 了解相关的法例规定
7. 现场踏察
8. 寻找现场及邻近的地质、市政及建筑物的资料

分析影响价格的因素

1. 设计
2. 选址
3. 施工
4. 合同要求
5. 经济环境
6. 发包方及其顾问

设计因素

1. 功能
2. 用料
3. 档次
4. 设计深化及施工图制配图的责任

选址因素

1. 交通
2. 进出囗
3. 限制(环保、噪音、工时)

施工因素

1. 工程大小
2. 机械化
3. 标准程度
4. 重复程度
5. 预制程度
6. 采购量
7. 工艺
8. 天气

合同要求因素

1. 土质的风险承担程度
2. 地下障碍物的风险承担程度
3. 市政接驳的风险承担程度
4. 物价波动的风险承担程度
5. 工期
6. 分阶段交付工地及竣工
7. 误期赔偿金额
8. 工期延长的许可原因
9. 索赔的许可原因
10. 保险及履约担保
11. 保修期
12. 付款办法、支付期限
13. 管理班子的大小及资历
14. 安保要求

经济环境因素

1. 市场竞争程度
2. 汇率

发包方及其顾问因素

1. 发包方的财政状况、实力、付款能力
2. 发包方及顾问的主观要求程度
3. 发包方及顾问的负责任程度

自我评估

1. 财政状况、垫支能力
2. 实力
3. 往绩
4. 现时工作量
5. 安全纪录
6. 违规纪录
7. 索赔纪录

询价原因

1. 市场价格波动
2. 设计及用料变化多
3. 不能套用以往的工程成本或造价
4. 每次都要通过询价手段来估计自己的成本
5. 然后定自己的造价
6. 以往价格资讯作为控制性的叁考
7. 分包是转移风险的体现

询价手法

1. 要决定那些是自己工、包清工、连工包料
2. 要考虑分包单位的信守承诺的能力
3. 要说明供料责任
4. 提供材料给分包的要规定损耗率
5. 把收到的招标文件分拆
6. 再加上自己的条件
7. 发给被询价单位

自己的报价

1. 收到分包的报价后，加以分析组合
2. 择优作为自己成本的依据
3. 加上适当的风险预留
4. 及管理费、利润、税金后
5. 作为自己的报价

管理费及利润的取费方法

 

开办经营/措施费的估算

 

递交标书的准备

1. 齐备所要求的文件
2. 确定已考虑了招标文件的修改通知
3. 复核所有数字
4. 签齐所要求的地方
5. 按要求密封标签
6. 按时递交至指定的地点

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Note

26/3/2023: Rules for submission deleted. Already given in Evaluating Tenders.

23/3/2020: Minor adjustment made. Punctuation standardised.

24/12/2014: Moved from wiki.

Tender
回标文件的组成

1. The bound Tender Booklet with: 
   填妥的招标文件:
   • The Form of Tender completed, signed, witnessed and dated
   • Selected appendices to the Form of Tender completed, signed, witnessed and dated (some to be completed after contract award)
   • The Bills of Quantities priced, extended and totalled (the sum shown on the Form of Tender must agree with the total of the Summary)
   • In case of no Bills of Quantities and pre-2005 Standard Form of Building Contract: The Summary of Tender priced and totalled (the sum shown on the Form of Tender must agree with the total of the Summary)
   • In case of no Bills of Quantities: Schedule of Quantities and Rates showing the build-up of the respective items in the Summary of Tender
     • Schedule of Quantities and Rates all prepared by the tenderers
     • Pro-forma Schedule of Quantities and Rates without quantities provided to tenderers
     • Schedule of Quantities and Rates with quantities pre-inserted for the tenderers’ reference and verification (implication of discrepancies with Tender Drawings and Specification)
   • Technical and Delivery Schedule completed.
2. List of the names of the specialist contractors that the Tenderer intends to choose for sub-letting part of the Works.
3. Preliminary design drawings and specification for tenderers’ specialist design.
4. Material catalogues and sample boards.
5. Proposed method statement.
   施工组织设计
6. Proposed programme of the Works.
   施工进度初步计划表
7. Site layout plan showing the proposed locations of plant, scaffolding, catch fans, stores, site office and access routes.
8. Project organization chart with the names and qualification of key management and site personnel for the Works .
   工地人员组织表
9. Maintenance contract proposal (for M&E works).
10. General company information (if not already fully submitted when expressing interests to tender).
11. For Mainland China projects:
    • 企业法人营业执照
    • 建筑业企业资质证书
    • 当地施工资质证明文件
    • 已建或在建工程的履历
12. Number of copies of submissions required.
13. Duplicate copy of the Form of Tender (required for Government Contract, not really necessary for private projects).

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Note

26/3/2023: Tender scoring expanded. Others generally revised.

20/2/2023: Opening tenders and rules for submission added.

20/3/2020: Punctuation standardised.

3/10/2018: Added more details about arithmetical check and corrections.  Added error or discount calculations.

24/12/2014: Moved from wiki.

Opening tenders

1. Opening of tenders is to be attended and witnessed by representatives of the Client and the Consultant Team.
2. Tenders must be checked to have been properly sealed and returned before the deadline.
3. Non-conformity should lead to rejection of the tenders.
4. A tender opening form should be prepared to record:
   • Names of the project and contract
   • Date and time for tender return
   • Date, time and place of tender opening
   • Pre-tender estimate and/or Prime Cost Sum allowed (as appropriate)
   • Names of tenderers, their tender sums, completion times, and priority based on tender sums
   • Names of attendees, their organisations, positions and signatures.
5. The Client’s representative(s) may sign on the Form of Tender for the record of genuine original submissions.
6. The duplicate copies of the Form of Tender (if used) are to be kept by the Employer.
7. Other duplicate copies of the submitted documents may be distributed to the parties required to analyse the tenders at the meeting, or the full sets of submitted documents will be taken away by the Quantity Surveyor for re-production as necessary and re-distribution of the relevant parts to other relevant parties for use.

(section added, 20/2/2023)

Rules for submission

1. Conditions of Tendering to be observed.
2. Sealed envelope to be labelled in the manner and deposited at the time and place set out in the invitation to tender.
3. Tender Drawings to be returned (to be used for Contract binding in the old days, not usually required now when the Tender Drawings are issued in soft copies).
4. Unauthorised alteration or erasure to the text of the Tender Documents not accepted.
5. Alternative tenders rather than non-conforming tenders to be distinguished.
6. Unpriced items deemed included in case lump sum tenders expected.

(section moved from Submitting Tenders, 20/2/2023)

Tender analysis

1. Check the completeness of tender submissions.
2. Request for immediate submission of outstanding information (except when the outstanding information leads to disqualification).
3. Check the correctness in completing the Form of Tender.
4. Check the completeness of pages.
5. Check the inclusion of amended pages and exclusion of deleted pages.
6. Check no unauthorised alteration or erasure to the text of the Tender Documents.
7. Check arithmetic: (revised 3 Oct 2018)
   • Evidence by ticking or correction in red
   • Tag any doubtful errors and verify with the senior before making any correction
   • Cross out the wrong text with the aid of a ruler, and write the corrected text in the space above so far as possible
   • Check corrections, evidenced by ticking in green
   • Tag doubtful corrections and verify with the first checker
   • Cross out incorrect corrections and correct tidily by the first checker in red, and tick by the second checker in green
   • Do not use correction ink or eraser.
8. Consider when deciding whether to correct the rate or the extension in case of mismatch:
   • Rate derived by dividing quantities into extension reasonable as a round figure or as compared to similar rates?
   • Total of extension matching page total?
9. Rates in Remeasurement Contract not to be changed and Tender Sum can be adjusted (some Conditions of Tendering specify as such).
10. Check the reasonableness of quantities and sufficiency of items in the Schedule of Quantities and Rates prepared by tenderers.
11. Treat omission of prime cost and provisional sums as an error to be absorbed by the Tenderer or to be corrected and added back (depending on the provisions of the Conditions of Tendering).
12. Compile multiple rate bills (for easy comparison of rates and to serve as future data bank).
13. Check rates:
    • Consistencies of rates for similar items (with differences for different locations and times of construction)
    • Reasonable differences and pattern for dissimilar items
    • High and low rates:
      • Comparison amongst tenders and pre-tender estimate
      • Comparison with known supply costs
      • Picking out those unreasonably high or low or incorrect rates for adjustments
    • Reasonable on-costs above prime cost rates
    • Inappropriate pricing of preliminaries items which should not normally be priced
    • Unreasonable dayworks rates and mark-ups.
14. Check for front loading.
15. Carry out discounted cash flow analysis for projects of long duration based on tenderers’ programme.
16. Equate tenders with different completion times (normally using the rate of liquidated damages).
17. Check qualifications.
18. Check whether overall time of preliminary programme matches the committed completion times.
19. Check obvious errors and omissions on the programme (though the detailed checking should be the duty of the Architect and Engineers).
20. Check the materials and equipment proposal in so far as the make and type may affect the comments on the reasonableness of the prices (the technical suitability should be left to the Architect and Engineers).

Calculate error or discount percentage

(added 3 Oct 2018)

Errors

1. Meaning:

   • Error = Priced figure less Corrected figure, not the other way around
     Error = Tender Sum less Corrected Total

2. Error can be positive (+ve) or negative (-ve): 

   • Corrected Total plus (+ve/-ve) Error = Tender Sum

3. In case of negative error:
   • Read as: Correct Total plus (-ve) Error = Tender Sum
   • Do not read as: Corrected Total minus Error = Tender Sum, which would cause confusion.
4. Error% should be the one which when applied to the Corrected Total gives the Tender Sum, i.e.:

   • Corrected Total + Corrected Total x Error% = Tender Sum

5. Always use the above to test the correctness of Error%.
6. Therefore:

   • Error%
     = (Tender Sum - Corrected Total) / Corrected Total
     = Error / Corrected Total x 100%

7. Example:

   • Priced figure = 100
     Corrected figure = 120
     Error = 100 - 120 = (-)20
     Error% = -20/120 x 100% = (-)16.66%
     Verification: 120 + 120 x (-)16.66% = 120 - 19.99 = 100.01, rounding error accepted

8. Non-adjustable parts:
   • Prime Cost and Provisional Sums (including those for dayworks) are not to be adjusted by the error%
   • Depending on specific provisions in the Conditions of Tendering, the Preliminaries prices may or may not be adjusted by the error%
   • For unit rates containing Prime Cost Rates, the Prime Cost Rates are to remain unchanged, but either the unit rates or the portion of the unit rates excluding the Prime Cost Rates can be adjusted, depending on specific provisions in the Conditions of Tendering. In the latter case, the value of the Prime Cost Rates become a non-adjustable part
9. Therefore, the error should be applied to (or spread over) the (Corrected Total – non-adjustable parts), and the Error% formula should be revised to:

   • = Error / (Corrected Total – non-adjustable parts) x 100%
     = (Tender Sum - Corrected Total) / (Corrected Total – non-adjustable parts)

10. The Error% should be applied to all rates and prices making up (Corrected Total – non-adjustable parts)
11. Verification:
    • Let:

      • CT = Corrected Total
        NA = non-adjustable parts
        TS = Tender Sum

    • In principle:

      • (CT - NA) x (1 + Error%) + NA = TS

    • Therefore:

      • CT - NA + (CT - NA) x Error% + NA = TS
        CT + (CT - NA) x Error% = TS
        Error% = (TS - CT) / (CT - NA)
        = (Tender Sum - Corrected Total) / (Corrected Total – non-adjustable parts)
        = Error / (Corrected Total – non-adjustable parts) x 100%

    • Easier to remember: the error should be spread over the (Corrected Total – non-adjustable parts) as a percentage.

(items 8 to 11 added, 26/3/2023)

Adjustments

1. A final adjustment may be made by the Tenderer in the General Summary or Summary of Tender or at the end of any priced bill or schedule
2. The adjustment may be entered / treated as a lump sum or as a percentage adjustment to the relevant rates and prices, depending on mutual agreement to be clarified
3. "Error" above can be read as "Adjustment", where:

   • Adjustment = Final figure less Original figure, and the above calculations would apply

4. Adjustment can be positive (+ve) or negative (-ve) :

   • Original figure plus (+ve/-ve) Adjustment = Final figure
     Adjustment% = Adjustment / Original figure x 100%

5. If part of the Original figure is not subject to adjustment, then the Adjustment% would be:

   • Adjustment% = Adjustment / (Original figure - non-adjustable parts) x 100%

6. Verification:

   • Original figure + (Original figure - non-adjustable parts) x Adjustment%
     = Original figure + (Original figure - non-adjustable parts) x Adjustment / (Original figure - non-adjustable parts) x 100%
     = Original figure + Adjustment x 100%
     = Final figure 

(items 1 and 2 added, 26/3/2023)

Discounts

1. Discounts may be offered during tender negotiation
2. The discounts may be offered / treated as a lump sum or as a percentage adjustment to the relevant rates and prices, depending on mutual agreement to be clarified
3. The following are common understanding:

   • Discount = Discounted Price less Original Price (Discount is actually a negative number but read as "less ...")
     Original Price less Discount = Discounted Price ("less" is a short form for "plus (-ve)")
     Discount% = Discount / Original Price x 100%
     Or
     Discount% = Discount / (Original Price – non-adjustable parts) x 100%

4. Discount is actually an example of (-ve) adjustment, but usually read as a positive number to be subtracted.
5. Example:

   • Original Price = 120
     Discounted Price = 100
     Discount = 100 - 120 = (-)20, usually read as "less 20"
     Discount% = (-)20/120 x 100% = (-)16.66%, usually read as "16.66% discount"
     Verification = 120 + 120 x (-)16.66% = 120 - 19.99 = 100.01, rounding error accepted

(items 1 and 2 added, 3 revised, 26/3/2023)

Issuing Tender Questionnaires
询标问卷

1. Request for outstanding submissions.
2. Confirm correction of major arithmetic errors.
3. Request for agreeing more reasonable rates for variations, with details as to how they will be applied – omissions and additions or additions only? implication on provisional quantities?
4. Request for rationalization of both the quantities and rates in Schedule of Quantities and Rates prepared by the tenderers.
5. Clarify uncertain terms.
6. Request for withdrawal of unacceptable qualifications.
7. Do not change Tender Sums if the tendering basis has not been changed, otherwise disqualify.
8. Mark confidential queries and replies.

Issuing Post Tender Addenda

1. Issue if changes to the original tendering basis are required. Accept changes to the Tender Sums.
2. Consider and stipulate the mode of submission and opening of the revised Tender Sums, if changes expected.
3. Observe and respect individual tenderers’ competitive ideas.
4. Keep confidential.

Caution against changes to scanned images

1. There is software which can recognise the text on a scanned image of a document.
2. Tenderers may use this kind of software and convert Tender Questionnaires or Post Tender Addenda to editable text files and input their answers.
3. The format of the document may be changed making it difficult to trace whether the original text has been changed.
4. To avoid this practice, the following statement should be inserted in Tender Questionnaires or Post Tender Addenda:

   • You may use an image copy of the questionnaire and superimpose your answers on it, but should not change the text or format of the questionnaire.by converting the image into editable file or by other means.

Typical contents of Tender Report
评标分析报告主要内容

1. Date tenders received.
2. Tenders received:
   回标价一览:
   • Tenderers’ names
   • Tender Sums
   • Ratios
   • Completion Times
   • Alternative Tenders
3. Scope of tenders:
   投标范围、分包、另包情况:
   • Works tendered for
   • Provisional sums
   • Prime cost sums
   • Provisional quantities and dayworks schedule
   • Works by others
4. Type of tenders
5. Tender addenda
6. Post tender addenda and revised tenders
7. Tender submissions
8. Time for completion
   工期要求
9. Arithmetic errors
   算术复核结果
10. Comparison of tenders in the form of appendices:
    分析附表:
    • By Trades and by Sections
      各清单总价比较表
    • List of major rates
      主要单价比较表
    • Multiple Rate Bills of Quantities (bound separately)
    • Technical particulars (delivery periods, origins, makes, types, models, etc. in so far as they are required for the appreciation of the reasonableness of the prices)
      支持分析意见的比较表
11. Examination of tenders with comments on individual tenders:
    分析意见:
    • Tender Sum
    • Priority
    • Contract periods
      工期
    • Arithmetic error
    • Technical submissions
    • Qualifications
      投标单位的反建议
    • Alternative proposal
      投标单位的另选建议
    • General price levels
      价格
    • Items with unreasonably low rates
      单价过低的处理
    • Items with unreasonably high rates
      单价过高的处理
    • Items incorrectly priced
    • Unpriced items or items without specific prices quoted
    • Technical merits
      技术
    • Capabilities
      实力
    • Past performance
      往绩
    • Items requiring further clarification
      还需澄清的问题
    • Conclusion.
12. Reconciliation with Estimate.
    与项目概算有关部份或标底的比较
13. Conclusion and recommendation.
    结论
14. Total building or project cost based on the recommended tender.
    项目概算按意向选定标价调整后的项目总费
15. Tender validity period.
    定标限期

Tender interviews
询标会议

1. Better conducted after submission of the tender report when all the questions have been identified.
2. Strategy in priority of interview.
3. Questions and answers.
4. Subsequent confirmation of questions by issuing Tender Queries.
5. After receipt of the replies, a final recommendation can be made as to the selection of the successful tenderer. A supplementary or a final tender report should be issued.

(item 1 revised, 26/3/2023)

Tender scoring
评分

1. Tender selection may be based on prices alone (if all tenderers are considered equally acceptable before being invited to tender) or based on a combination of price and technical scores.
2. Example of technical scoring sheet for a building renovation project when the assessors’ averaged and weighted scores are entered against tenderers A, B, C and D:
   技術分评分表的例子:
   • ​
3. The technical scoring criteria are:
   • Company capability (size, finance, qualifications)
   • Competence of the project management team (qualifications, experience, organisation)
   • Adequacy of the understanding of this project (scope, characteristics)
   • Reasonableness of the working sequence and overall period
   • Suitability of the method statement
   • Suitability of the manpower and sub-contractors (current workload, uniforms, access control, name-borrowing contracting, assignment of actual performance, illegal immigrants, daily management)
   • Suitability of site facilities (site layout plan, site storage plan, vertical transportation, transportation of materials and rubbish on or off site)
   • Suitability of on-site management:
     • safety, protection, security (workers, occupiers, third parties, Employer’s properties)
     • sanitation and cleanliness (wastes, mosquitos, dusts, noises)
     • suspension of water and electricity supplies
     • liaison and complaint management with neighbours and occupiers
   • Suitability of quality management:
     • samples and shop drawing submission procedures
     • quality warranties
     • quality inspections during the course and upon completion (spalling concrete, pull out tests, waterproofing layers).
4. The scoring procedures are as follows:
   • Devise the criteria
   • Assign maximum score or different weighting for each criterion
   • Score all selected tenderers by all assessors independently
   • Add to get the total score of each criterion obtained by each tenderer, average it and apply the weighting (if applicable) to give the score of each criterion
   • Add the scores of all criterion to give the total score.
5. Scoring table for each tender without weighting:

Item	Criterion	Max score	Assessor P’s score	Assessor Q’s score	Assessor R’s score	Assessor S’s score	Average score
		10	5	6	5	8	6

1. Scoring table for each tender with weighting (scoring by Assessors P, Q, R and S based on a 10-point scale, and weighting based on 5%):                       

Item	Criterion	Weighting	Assessor P’s score	Assessor Q’s score	Assessor R’s score	Assessor S’s score	Average score	Weighted score
		5%	5	6	5	8	6	3%

1. Example of calculating the combined tender scores based on 30% price and 70% technical:
   計算综合评分的例子:
   
2. Formulae used:
   
3. In short:
   • The lowest tender sum will be treated as having the max 100 price score
   • Other higher tender sums will get proportionally lower scores by means of: 

     • converted price score = lowest tender sum / tender price

   • The highest technical score will be treated as having the max 100 technical score
   • Other lower technical scores will get proportionally lower scores by means of:

     • converted technical score = technical score / highest technical score

   • The combined % score will be equal to:

     • converted price score x 30% + converted technical score x 70%.

(expanded, 26/3/2023)

Tender Evaluation Criteria of Housing Authority

1. The Housing Authority may take into account the following when evaluating tenders (Notes to Tenderers, February 2013 Edition):
   • tenderer's qualification
   • compliance with tender restrictions
   • suspension from tendering
   • workload capping limits and restrictions
   • contract award restrictions
   • technical, commercial and financial capability
   • past performance
   • compliance with tender conditions, specifications and other requirements as set out in the Tender Documents
   • designs/methods/materials proposed in compliance with the terms of the Conditions of Tender
   • tender price and/or rates
   • effect of exceptionally high or low priced items
   • effect of incident of payments by discounting future payments to obtain the present values if the tendered prices are very close
   • bankruptcy
   • false declaration
   • lack of integrity
   • acts of dishonesty
   • the latest available information and reports relating to serious misconduct or criminal offences
   • wages in arrears
   • serious quality, safety or environmental incidents
   • HA's quarantine system under the tender evaluation mechanism for occurrence of serious incidents during tender assessment for capital works contracts.
2. Calculation of combined score by the Housing Authority for complex contracts evaluated using 2-envelope tendering arrangement with marking scheme (Special Conditions of Tender, February 2013 Edition):
   • Summation of:
     • 8% max. x Corporate score
     • 17% max. x PASS score
     • 10% x Technical Score of the tender (before normalization) / highest Technical Score among considered tenders
     • 65% x lowest tendered sum among considered tenders / tendered sum of the tender​
   • where "considered tenders" being those tenders with Technical Scores (before normalization) above the threshold Technical Score.

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Note

• 5 Apr 2022: Contract documentation moved to Post Contract.
• 22 Mar 2022: Amending Form of Contract revised.
• 20 Mar 2020: Punctuation standardised.
• 7 Apr 2019: "Originals of Tender Correspondence" added. 

Awarding the Contract 定標

1. Letter of Acceptance / Letter of Award.
   中標通知書
2. Letter of Intent (to nominate) followed by Letter of Acceptance by the Main Contractor.
   意向書
3. Is letter of intent binding? If binding, how?

Contents of the Letter 函件內容

1. Issuing on behalf of the Client.
2. Brief description of the Works.
3. The Contract Sum.
4. Build-up of the Contract Sum from the original Tender Sum, if different.
5. Discounts (lump sum, percentage, how to apply, how are prime cost rate items treated).
6. The Contract Periods.
7. Pricing clarifications.
8. Technical clarifications.
9. Defining Contract Documents and order of precedence (Tender Documents, tender, tender correspondence).
10. Any programme, method statement, site layout plan, and organization chart for reference only and to be formally proposed after contract award but subsequent deviations to be properly justified (information contained in these reference documents but intended to form part of the contract should be specifically stated).
11. Counter-signing and returning the letter.
12. Binding contract upon counter-signing.
13. Immediate formal submissions:
    • Surety Bond
    • Employees’ Compensation Insurance Policy
    • Contractors’ All Risks and Third Party Liability Insurance Policy
    • Method statement of the Works
    • Programme of the Works
    • Site layout plan
    • Organization chart with the names and qualification of key management and site personnel for the Works.

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Note

15/5/2015: Created.

Long title
詳題

• An Ordinance to prohibit conduct that prevents, restricts or distorts competition in Hong Kong; to prohibit mergers that substantially lessen competition in Hong Kong; to establish a Competition Commission and a Competition Tribunal; and to provide for incidental and connected matters
  本條例旨在禁止妨礙、限制或扭曲在香港的競爭的行為；禁止大幅減弱在香港的競爭的合併；設立競爭事務委員會及競爭事務審裁處；以及就附帶和相關的事宜訂定條文

competition rule
競爭守則

• means 指
  • the first conduct rule 第一行為守則 (Not in operation yet. Intention: An undertaking must not make use of agreement, concerted practice, or decision with the object or effect to prevent, restrict or distort competition in Hong Kong. The rule will particularly apply to horizontal agreement among competitors rather than vertical agreement with suppliers.)
  • the second conduct rule; or 第二行為守則；或 (Not in operation yet. Intention: An undertaking with substantial degree of market power in a market must not abuse its power by engaging in conduct to prevent, restrict or distort competition in Hong Kong. Factors including market share, market entry barrier and the ability of its potential competitors to enter the market shall be considered in assessment of market power.)
  • the merger rule 合併守則 (Not in operation yet. Intention: Regulating mergers or acquisitions of carrier licensees under the Telecommunications Ordinance only.)

serious anti-competitive conduct
嚴重反競爭行為

• means any conduct that consists of any of the following or any combination of the following:
  • fixing, maintaining, increasing or controlling the price for the supply of goods or services
  • allocating sales, territories, customers or markets for the production or supply of goods or services
  • fixing, maintaining, controlling, preventing, limiting or eliminating the production or supply of goods or services
  • bid-rigging

bid-rigging
圍標

• means:
  • an agreement—
    • that is made between or among 2 or more undertakings whereby one or more of those undertakings
      • agrees or undertakes not to submit a bid or tender in response to a call or request for bids or tenders, or
      • agrees or undertakes to withdraw a bid or tender submitted in response to such a call or request; and
    • that is not made known to the person calling for or requesting bids or tenders at or before the time when a bid or tender is submitted or withdrawn by a party to the agreement or by an entity controlled by any one or more of the parties to the agreement; or
  • a submission, in response to a call or request for bids or tenders, of bids or tenders that are arrived at by an agreement—
    • that is made between or among 2 or more undertakings; and
    • that is not made known to the person calling for or requesting bids or tenders at or before the time when a bid or tender is submitted or withdrawn by a party to the agreement or by an entity controlled by any one or more of the parties to the agreement.
• examples:
  • cover pricing - one or more bidders in a tender process submit artificially high prices, purporting to be genuine bids, which are not intended to win the contract
  • bid rotation - bidders agree to submit the lowest bid on a rotating basis
  • bid suppression - bidders agree to either refrain from bidding or withdraw their bids
  • market/customer division - bidders agree not to compete in a designated geographic region or for a specific contract

The Four Don'ts for SME as advised by the Competition Commission

• Dont' fix prices 不要合謀定價:
  • including an agreement on a formula to calculate prices or elements of prices such as discounts, rebates, promotions or credit terms
  • verbally or in writing including 'a wink and a nod'; or at an association's meeting
• Don't restrict output 不要限制產量:
  • including restricting the volume or type of particular goods or services
• Don't share (divide) market 不要瓜分市場:
  • including allocating customers by geographic area, agreeing not to compete for each other's customers and agreeing not to enter or expand into a competitor's market
• Don't rig bids 不要圍標:
  • agreeing who should 'win' a bid
  • supporting the designated winner by refraining from bidding, withdrawing bids or submitting bids with higher prices / unacceptable terms
• Compete. Don't cheat

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