Professional Documents
Culture Documents
Code of Procedurefor
Single Stage
Selective Tendering
CODESOFPROCEDURE
GUIDANCE NOTES
PROCEDURENOTES
TENDERINGQUESTIONNAIRES
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Surveyors Publications
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CONTENTS Page clear to all potential tenderers at the outset; the
principles set out hereafter should still be
1.0 Foreword 1 observed.
A Preliminary Enquiry for Invitation to Tender This Code assumes that a planning supervisor
for use with: has been appointed under CDM.
.1 Standard Form of Building Contract 7 1.3 Consequent upon entry into the European
Intermediate Form of Building Contract Union tenders for public sector construction
Agreement for Minor Building Works contracts above a specified value must be
invited and contracts awarded in accordance
.2(S) Scottish Minor Works Contract 8 with Directive 71/305/EEC (as amended by
Directive 89/440/EEC), implemented in the UK
B Formal Invitation to Tender 9 by The Public Works Contracts Regulations
1991 (SI) 1991/2680. In these instances, the
C Form of Tender 10 provisions of the Code will be qualified by the
supplementary tendering procedures specified
in the Regulations. Public contracting
authorities within the meaning of the
Regulations are responsible for ensuring that
their tender and award procedures for works
Note: The Code applies in the whole of the contracts comply with the provisions of the
United Kingdom, but where Scottish practice Regulations or subsequent legislation. (See
differs, suitable recommendations are printed NJCC Procedure Note 19.)
in italics.
1.4 This Code is complementary to other NJCC
publications (listed opposite).
On contracts where it is desired to secure the 2.1 The general principles of the Code are fully
early involvement of the contractor before the supported by the Department of the
development of the design is completed two Environment and take into account the relevant
stage tendering procedures may be adopted. recommendations of the National Economic
These procedures are detailed in a companion Development Office (NEDO) report 'The Public
NJCC Code of Procedure for Two Stage Client and the Construction Industries', the
Selective Tendering. report 'The Placing and Management of
Contracts for Building and Civil Engineering
Nothing in this Code should be taken to suggest
that the employer is obliged to accept the [1] See also the Approved Code of Practice issued in
lowest or any tender, although if the procedure February 1995 by the Health and Safety Commission
advocated in the Code is followed, the 'Managing construction for health and safety'.
successful tenderer will normally be the one
[2] The term 'architect' applies only to any person
offering the lowest price, on a lump sum basis. entitled to use the name 'architect' under and in
If it is the employer's intention to allow bids accordance with the Architects Registration Acts 1931
based on alternative criteria, this must be made to 1969.
The choice must be made before contractors .7 whether the firm will have adequate capacity
are invited to tender. at the relevant time.
2.5 It should be a condition of tender that obvious 3.3 Approved lists should be reviewed periodically
errors in pricing or significant errors in to exclude firms whose performance has been
arithmetic discovered before the acceptance of unsatisfactory, and to allow the introduction of
the contractor's tender should be dealt with in suitable additional firms.
accordance with one of the alternatives in
Section 6 of this Code. 3.4 The object of selection is to make a list of firms,
any one of which could be entrusted with the
job [3]. If this is achieved, then the final choice
3.0 THE LIST OF TENDERERS of contractor will be simple - the firm offering
the lowest tender. Only the most exceptional
3.1 Once it has been decided that a contractor is to cases justify departure from this general
be selected under a competitive tendering recommendation.
procedure, a short list of suitable tenderers
should be drawn up either from the employer's
approved list of contractors or from an ad hoc 4.0 TENDERING PROCEDURE
list of contractors.
4.1 Preliminary Enquiry
It should be appreciated that, because of the
cost of preparing tenders, the larger the tender .1 In order that contractors may be able to
lists become the greater will be the cost of decide whether they will tender, and to
abortive tendering, and this will be reflected in anticipate demands on their tendering staff,
higher building prices. each firm should be sent, and should reply
promptly to, a preliminary invitation to
This list, irrespective of the size of the contract, tender as illustrated in Appendix A -
should contain not more than six names. 'Preliminary Enquiry for Invitation to Tender'.
Regard should also be paid to the amount of It is essential that all the details itemised in
work demanded of tenderers in order to Appendix A are stated in the preliminary
formulate their bids and where this involves
extensive quantification,specification, [3] Arrangements for pre-tender interviews may
specialisation and/or calculation the maximum facilitate this objective. (See NJCC Procedure Note 4-
Pre-Tender Meetings.)
6.4 Alternative 2
Applicable where the JCT Standard Form of Building Contract, Intermediate Form of
Building Contract or Agreement for Minor Building Works is to be used
Dear Sirs,
Heading
I am/We are authorised to prepare a preliminary list of tenderers for construction of the
works described below.
Please indicate whether or not you wish to be invited to submit a tender for these works.
Your acceptance will imply your agreement to submit: a wholly bona fide tender in
accordance with the principles laid down in the NJCC 'Code of Procedure for Single
Stage Selective Tendering' 1996, and not to divulge your tender price to any person or
body before the time for submission of tenders. Once the contract has been let, I/we
undertake to supply all tenderers with a list of the tender prices.
You are requested to reply by. . . Your inability to accept will in no way prejudice your
opportunities for tendering for further work under my/our direction; neither will your
inclusion in the preliminary list at this stage guarantee that you will subsequently receive
a formal invitation to tender for these works.
Yours faithfully. . .
a Project.. .
b Type and function of the building, e.g. commercial, industrial, housing, etc., with any
other details.. .
c General description of the project. . .
d Employer.. .
e Employer's professional team . . .
f Planning Supervisor.. .
g Location of site. . . (Site plan enclosed)
h Approximate cost range of project £ . . . to £ . . .
i Number of tenderers it is proposed to invite.. .
j Nominated sub-contractors for major items. . . [1]
k Form of Contract:
List here Form of Contract, e.g. JCT 80/IFC 84/MW 80,* together with
(i) Appendix items to the appropriate form completed †
(not applicable to MW 80)
(ii) The JCT Amendments proposed to the standard form ‡
[Note: Attention is drawn to the advice given in clause 4.2.3.1
I Examination and correction of priced bill(s) [Section 6 of Code1 121;
Alternative 1/Alternative 2 [3] will apply
m The contract is to be executed as a deed/a simple contract §
n Anticipated date for possession . . .
o Period for completion of works. . .
p Approximate date for despatch of all tender documents . . .
q Tender period.. . weeks
r Tender to remain open for. . . weeks [4]
s Details of guarantee requirements. . . (if any) [5]
t Particular conditions applying to the contract are. . .
Dear Sirs,
Heading
I am/We are authorised to prepare a preliminary list of tenderers for construction of the
works described below.
Your attention is drawn to the fact that apart from the alternative clauses to the Scottish
Minor Works Contract as detailed below under item i, further amendments to the
Scottish Minor Works Contract, if any are annexed hereto, will be incorporated in the
tender documents.
Will you please indicate whether you wish to be invited to submit a tender for these
works on this basis. Your acceptance will imply your agreement to submit a wholly bona
fide tender in accordance with the principles laid down in the NJCC 'Code of Procedure
for Single Stage Selective Tendering' 1996, and not to divulge your tender price to any
person or body before the time for submission of tenders. Once the contract has been
let, I/we undertake to supply all tenderers with a list of the tender prices.
Please state whether you would require any additional unbound copies of the bill(s) in
addition to the two copies you would receive; a charge may be made for extra copies. [I]
You are requested to reply by. . . Your inability to accept will in no way prejudice your
opportunities for tendering for further work under my/our direction; neither will your
inclusion in the preliminary list at this stage guarantee that you will subsequently receive
a formal invitation to tender for these works.
Yours faithfully. ..
a Job ...
b Employer.. .
c Architect/Contract Administrator . . .
d Quantity Surveyor. . .
e Consultants.. .
f Location of site.. , (Site plan enclosed)
g General description of work. . .
h Approximate cost range £ . . . to £.. . .
i Form of Contract: Scottish Minor Works Contract
Alternative A/Alternative B [1] will apply: the Planning Supervisor shall be . . .
Clause 2.0 will/will not [1] apply
Clause 6.5 will/will not [1] apply
Clause 7.2: Clause B1.1 of said Memorandum, Section B will/will not [I] apply
Clause 7.4 from 'or shall have given' to the end of clause 7.4 will/will not [1] apply
Clause 8.3A/8.3B will/will not [1] apply: the percentage to cover professional fees
is ... %
j Examination and correction of priced bill(s) [Section 6 of Code];
Alternative 1/Alternative 2 [1] will apply
k The contract is to be formally/informally [1] executed
I Anticipated date for commencement of works. . .
m Anticipated date for completion of works. . .
n Tender period.. .weeks
o Tender to remain open for.. . weeks [2]
p Liquidate damages (if any), anticipated value £ . . . per. . .
q Defects liability period under clause 3.5. . .
r Retention under clause 6.2. . . %
s Period specified in clause 6.4 shall be . . .
t Percentage specified in clause 6.5 (if applicable) is. . .
U Particular conditions applying to the contract are. . .
Dear Sirs,
Heading
Following your acceptance of the invitation to tender for the above, I/we now have
pleasure in enclosing the following:
The completed form of tender is to be sealed in the endorsed envelope provided and
delivered or sent by post to reach ...
not later than.. . hours on ..
.the.. . day of.. 19.. . .
* The completed form of tender and the priced bill(s) of quantities sealed in separate
endorsed envelopes provided are to be lodged not later than. . . hours on, . . the . . .
day of. . . 19. . . The envelope containing the render should be endorsed with the
job title; that containing the bill(s) of quantities should be endorsed with the job title
and tenderer’s name.
Will you please acknowledge receipt of this letter and enclosures and confirm that you
are able to submit a tender in accordance with these instructions.
Yours faithfully.
Architect/Quantity Surveyor [1]
This form of tender is suitable for use only when a formal contract is entered into
Sir(s),
* //We undertake in the event of your acceptance to execute with you a formal contract
embodying all the conditions and terms contained in this offer.
I/We agree that should obvious errors in pricing or errors in arithmetic be discovered
before acceptance of this offer in the priced bill(s) of quantities submitted by me/us these
errors will be dealt with in accordance with Alternative 1/Alternative 2 [1] contained in
Section 6 of the NJCC 'Code of Procedure for Single Stage Selective Tendering' 1996.
This tender remains open for consideration for. .. days [3] from the date fixed for the
submission or lodgement of tenders,[4].
Name.. .............................................................................................................................
Address ........................................................................................................................................
* The completed form of tender and the priced bill(s) of quantities sealed in separate
endorsed envelopes provided are to be lodged not later than. .. hours on ... the. ..
day of. .. 19. .. The envelope containing the tender should be endorsed with the
job title: that containing the bill(s) of quantities should be endorsed with the job title
and tenderer's name.
The National Joint Consultative The original constituent bodies during the The NJCC keeps all its publications under
committee for Building was set up in first two decades of the NJCC were the review and up to date and ensures that
1954, after publicattention had been RIBA, RlCS and BEC (then NFBTE) but they reflect the principles of the Latham
focused on the importance of selective, as following the publication of the Banwell Report Constructing the Team.
opposed to indiscriminate, tendering. Report The Placing and Management of
Contracts for Building and Civil The Good Practice Panel is often
Engineering Work the Association of described as the 'powerhouse' of the
Consulting Engineers, the Federation of NJCC and 'the custodian of good practice'
Building Specialist Contractors and the in the industry. lts two main functions are:
Confederation of Associations of
Specialist Engineering Contractors joined 1. To review and revise existing Codes
in the early 1970s. and formulate new ones where
required.
Throughout its existence the principal 2. To receive reports on practice
pre-occupation of the NJCC has been best difficulties encountered throughout
described as the encouragement of 'good the industry and to advise on
practice'. By this is meant the appropriate courses of action.
identification of what is the good way of
doing things in the-often complex- The Panel's underlying function, which is
operation of building processes. In effect fundamental and which applies to all its
the NJCC sets out standards and it is the work, is to decide on what is, and what is
only fully representative body to do so, or not, good practice. It formulatesopinions
capableofdoing so, with the authority of on the information it is able to obtain and
its constituent bodies. offers informal advice, mostly in relation
totendering proceduresand contract
The NJCC's mostwidely known management. Although a voluntary body
publication is its Code of Procedure for which cannot enforce itsviewthe Panel
Single Stage SelectiveTendering, first nevertheless enjoys considerable
published in 1959. Tens of thousands of influence and authority. Its prestige is
copies have been sold in several editions such that its opinions are widely
and it isgenerally accepted thatthisone respected and usually accepted.
document transformed tendering
practices in the years following its The NJCC, through its Good Practice
publication. Panel, maintains continuous liaison as
required with such bodies as the DoE, the
For the first time recommended Local Authorities Associations, the
procedures which were easily Chartered lnstitute of Public Financeand
comprehensible, obviously ethical and Accountancy as well as the
clearly designed to prevent undesirable representatives of the private sector. The
practices were spelt out and positive function of the NJCC in actively
recommended by an authoritative body influencing ethical and procedural
representing the building industry. In the standards in the industry proves that it is
years since publication the code has not just a talking shop. In addition it
contributed greatly to the proper makes an important contribution to the
regulation of tendering procedures and improvement of building practice and,
has markedly improved the climate in indirectly, to increased productivity.
which the industry operates.
One of the NJCC's strengths is that its
The Code, like other NJCC documents, opinions and recommendations are
was endorsed by the Department of the reached after consultation and discussion
Environment and is widely used in the between practitioners in the building
public sector. Indeed, at one time 85% of industry-those who are actively
local authorities were believed to base involved at senior level with the day to
theirtendering procedureson it. In recent day problems of building. This
years the Code has also become consultation - involving all significant
increasingly used in the private sector. interests in the industry (professions,
main contractors and specialist sub-
The Single Stage Code was followed by a contractors)- leads to recommendations
Code of Procedure for Two Stage which are authoritative and, as
Selective Tendering, the Code of experience shows, continue to be
Procedure for Tendering for Design and effective for many years.
Build, the Code of Procedure for the
Letting and Management of Domestic
Sub-contract Works and the Code of
Procedure for the Selection of a
Management Contractor and Works
Contractors. From time to time the NJCC
has also published a series of Procedure
Notes. More recently the NJCC has
introduced a series of Guidance Notes,
which are listed inside the front cover
hereof.
NJCC
National Joint Consultative Committee for Building
Constituent bodies:
Royal Institute of British Architects
Royal Institution of Chartered Surveyors
Association of Consulting Engineers
Building Employers Confederation
Federation of Building Specialist Contractors
Specialist Engineering Contractors’ Group
© 1996 NJCC
1.96 C B A