Evaluating Tenders 评标

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Note

    24/12/2014: First posted.

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

    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 Engineer)

    Calculate error or discount percentage

    (added 3 Oct 2018)

    Errors

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

    Error can be positive (+ve) or negative (-ve) 

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

    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

    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

    Always use the above to test the correctness of Error%

    Therefore

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

    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

    Adjustments

    "Error" above can be read as "Adjustment", where

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

    Adjustment can be positive (+ve) or negative (-ve) 

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

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

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

    Verification:

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

    Discounts

    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%

    Discount is actually an example of (-ve)adjustment, but usually read as a positive number to be substracted.

    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 "16.66% discount"
    Verification = 120 + 120 x (-)16.66% = 120 - 19.99 = 100.01, rounding error accepted

    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

    • There are software which can recognise the text on a scanned image of a document. Tenderers may use this kind of software and convert Tender Questionnaires or Post Tender Addenda to editable text files and input their answers. The format of the document may be changed making it difficult to trace whether the original text has been changed. 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
    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

    Tender Scoring
    评分

    1. Example of technical scoring sheet 技術分评分表的例子:
    2. Example of calculating the combined tender score 計算综合评分的例子:
    3. Formulae used:

    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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