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CORRECTING ARITHMETICAL
ERRORS IN TENDERS
Practice Note # 2
Content
August 2006
(Version 1 - August 2006)
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Synopsis:
Bills of quantities are commonly used in engineering and
construction works where the contractor undertakes construction
on the basis of full designs issued by the employer.
The CIDB Standard Conditions of Tender requires that the
competitive position of tenders be based on the total of prices
that is tendered. This practice note sets out the manner in which
arithmetical corrections are to be made in the evaluation of
tenders in accordance with these standard conditions of tender.
cancel
1.
2.
A uniform approach
F.3.9
Arithmetical errors
c)
3.
2)
demonstrate his or her ability to complete the contract for the sum
tendered in terms of clause F2.18 (1).
Unduly high rates may expose the employer to disproportionate
increases in construction costs should quantities increase or
should the rates contained in the bills of quantities serve as the
basis for determination of variation orders. On the other hand,
unduly low rates may cause the contractor to fail to complete the
works. This exposes the employer to considerable risk and
increased project costs should the contractor fail to complete the
contract.
4.
3)
of
5.
Process flows
yes
no
no
yes
Is tenderer prepared to
reduce the tendered amount
to an acceptable amount?
no
Recommend award
of contract
Recommend calling
for fresh tenders
subject to clause
F.1.5.2 of the Standard
Conditions of Tender
no
yes
yes
Is the tendered sum unduly low?
no
Is the tenderer:
under restrictions for any
reason to do business with
the public sector;
capable of, and has the
capacity to, execute the
contract; and
has no conflicts of interest
that might compromise the
outcomes of the contract.
no
Will the
amendment
of all the
arithmetic
corrections
result in a
change in the
competitive
position of the
tenderer?
no
no
yes
Is tenderer prepared to reduce the
tendered amount to an acceptable
amount?
no
yes
Are there any unduly low
or unduly high rates?
no
yes
no
yes
Correct tendered
sum taking
account of all
arithmetical
corrections
yes
Both parties agree to the
changes in rates
inform
practice note
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CIDB Post:
yes
Is the tendered sum unduly low?
no
Is the tenderer:
under restrictions for any
reason to do business with
the public sector;
capable of, and has the
capacity to, execute the
contract; and
has no conflicts of interest
that might compromise the
outcomes of the contract.
yes
no
no
yes
Is tenderer prepared to reduce
the tendered amount to an
acceptable amount?
no
no
yes
Request tenderer to
submit priced bills of
quantities within a
specified time period
yes
Note: It is preferable to
finalise the bills of
quantities before the
award of the contract.
no
Are there any unduly low
or unduly high rates?
yes