Evaluating Tenders 评标

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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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