You are on page 1of 18

[Client]

[Project name]
Example Tender report
[Date]

CONTENTS
1.00

EXECUTIVE SUMMARY

2.00

INTRODUCTION

3.00

TENDER DATA

4.00

EXAMINATION OF TENDERS

5.00

RECONCILIATION WITH PRE-TENDER ESTIMATE

6.00

CONCLUSION AND RECOMMENDATIONS

7.00

APPENDICES
A) Tender opening form
B) Summary of programme analysis
C) Summary of contractor staffing
D) Elemental reconciliation with pre-tender estimate
E) Design team report on CDP elements
F) Design team recommendations
G) Other appropriate referenced documents

-i\\COVENTRY\Books_Cov\Publishing\isurv\isurv construction\isurv cost management\Received sections\to upload\Forms - Tender Report AL Final.docx

[Client]
[Project name]
Example Tender report
[Date]

1.00

EXECUTIVE SUMMARY

Summarise the complete tender report in brief detail.


1.1

[Quantity surveyor] were instructed by [client] to prepare tender documentation for the main
contract works at the above site.

1.2

Tenders were sought from [nr] main contractors. [All] were received at the offices of [company
name] on [date] within the specified time and were opened at [12 noon] in the presence of
[names].

1.3

Summary of evaluation, for example:


The lowest tender offer of [xxxx] was submitted by [name] with the second lowest tender of
[xxxx] being submitted by [name]. Both tenders were extremely competitive and financially
very close and therefore it was decided to analyse both tenders.

1.4

Summary of analysis, for example:


The extent and findings of the analysis are set out in the report and resulted in revised tender
offers of [state each contractors revised tender].

1.5

Summary of conclusion, for example:


In conclusion the report recommends that the [client] enter into contract with [contractor] for the
construction of the works, subject to the clients financial strength checks of the contractor and
the resolution of the outstanding issues in section [xxx] of this report.

1.06

In accordance with the form of tender, the offer remains open for acceptance for [12] weeks
from the date of tender submission.

-1-

[Client]
[Project name]
Example Tender report
[Date]

2.00

INTRODUCTION

Explain who the client is and give a summary of the project. List tendering contractors and the criteria
for their selection, for example, if they were recommended, had been used before or if a prequalification process was implemented. Outline the contract for the project, and the date the tender
documentation was issued and if any extensions were awarded for the tender period.
2.1

[Quantity Surveyor] have been appointed by [client] to prepare tender documentation for the
Main Contract Works at the above site comprising the construction of [project details].

2.2

Statement on any contractor pre-qualification for example:


Following a pre-qualification process it was agreed that tenders would be sought from:

2.3

Contractor A
Contractor B
Contractor C
Contractor D
Etc.

State types of contracts and amendments that the procurement was based on, for example:
The Works were procured on the basis of the JCT Standard Building Contract with Quantities,
revision [x] 2007, incorporating Contractors Design Portions (and amendments as prepared by
[solicitors] on behalf of [client].

-2-

[Client]
[Project name]
Example Tender report
[Date]

3.1

TENDER DATA

Give the client an insight into the tender process and demonstrate the evaluation of the tenders
received.
Include:
the date of issue for the tender documentation;
any tender amendments issued during the tender period;
the date the tenders were returned;
what address the tenders were submitted to; and
which individuals opened the tenders.
Record the price of each tender to show the figures before appraisal and negotiation. A calculation
providing an indication of the overall percentage spread of the tenders should be included.

3.1

Tender documentation was issued to the [nr] tendering contractors on [date].

3.2

During the tender period the following addenda and additional information was issued:
Tender amendment 1

[Date and details]


Tender amendment 2

[Date and details]


Tender amendment 3 etc

3.3

Tenders were received and opened at [12 noon] on [date] at the offices of [company name] the
following witnesses were present:

3.4

[name and company]


[name and company]
Etc

The following figures were recorded at the tender opening (see Appendix A).
Contractor

3.5

Tender figure

Tender
A [Nr]
weeks

Alternative
contract
period

1.

Contractor A

[Tender amount]

[Nr]
weeks

[Nr] weeks

2.

Contractor B

[Tender amount]

[Nr]
weeks

No offer

3.

Contractor C

[Tender amount]

[Nr]
weeks

[Nr] weeks

4.

Contractor D

[Tender amount]

[Nr]
weeks

No offer

Statement regarding compliance for example,


All contractors have submitted a fully compliant tender.

-3-

[Client]
[Project name]
Example Tender report
[Date]

3.6

Include statement regarding the percentage spread of tenders, for example,


The spread of tenders before examination was [xx%], which was far higher than expected,
bearing in mind the traditional nature of the project with a fully specified set of bills of quantities.
Due to the two lowest tenders being so competitive and so close it was agreed that priced bills
of quantities should be requested from both tendering contractors to allow a thorough
examination and to identify any pricing or specification anomalies.

-4-

[Client]
[Project name]
Example Tender report
[Date]

4.00

EXAMINATION OF TENDERS

The bulk of the appraisal happens here. Tenders may often be scored not only on cost, but other factors
including quality, programme and performance in interview.
Concentrating purely on the cost aspect of the project, prepare a table for inclusion at the start of the
section detailing a BCIS elemental cost summary (if applicable) side by side for each contractor. This
will provide a direct comparison and enable clients to see an overview comparing the lowest tender with
the other tender submissions. This highlights issues for investigation in the tender submission (for
example a large elemental cost variance).
Make a detailed examination and commentary of each element, commenting on any unique features to
the job and if these have also been priced in accordance with the specification.
Further examinations can include reviewing the potential cost impact of increases in the contract sum
due to client or contract variations.
4.1

Elemental summary of all tenders submitted:


Element

Contractor A

Contractor B

Facilitating works
Substructure
Frame
Upper floors
Roof
Stairs and ramps
External walls
Windows and
external doors
Internal walls and
partitions
Internal doors
Wall finishes
Floor finishes
Ceiling finishes
Fittings, furnishings
and equipment
Sanitary fittings
Mechanical and
electrical
Lifts and conveyors
BWIC
Site works
-5-

Contractor C

Contractor D

[Client]
[Project name]
Example Tender report
[Date]
Drainage
External services
Prefabricated
buildings & building
units
Provisional sums
Addendum
Preliminaries
Dayworks
Overheads and
profit
Total

4.2

State which of the tenders will be examined in more detail, for example:
The above figures represent a summary of all of the submitted figures following the tender
opening, and only the lowest two tenders are initially to be subjected to detailed review and
analysis.

4.3

Elemental commentary
Provide a commentary of how each element has been priced by the two lowest tendering
contractors. Example below:

4.03.1 Preliminaries
The table below summaries the submitted preliminaries in terms of lump sum figure and
percentage of their respective tender.
Preliminaries

Percentage of tender sum

Contractor A

[value]

[percentage] %

Contractor B

[value]

[percentage] %

A review of the main component parts of the Preliminaries build ups are included below:
Staffing/supervision/security
This is the largest single component of the submitted Preliminaries costs for both tenderers. The
following section comments on the provision of staff and has been drawn from the summary
included within Appendix C of this report.
Senior management
Contractor A and Contractor B both have an overseeing director who will work on the project
when required. Contractor B has 2nr full time job managers. Contractor A have 1nr but
additional foreman.
Planning / coordination
-6-

[Client]
[Project name]
Example Tender report
[Date]
Each contractor has a part-time planner throughout the project. Contractor A has an M&E
coordinator full time for the full length of the contract. Contractor B M&E coordinator starts fulltime at week 20 providing some concerns over adequate coordination of the design prior to
installations commencing on site.

-7-

[Client]
[Project name]
Example Tender report
[Date]

Contractor A has a D&B coordinators working full-time from week 1. Contractor B D&B
coordinator starts on the project at week 40, as the CDP elements commence onsite.
Commercial
Full-time commercial staff are allowed as follows; Contractor A (210 weeks, a managing and
project surveyor for the full duration and an assistant for the first 30 weeks), Contractor B (90
weeks).
Site management
Contractor A have the highest number of full-time working weeks for site management (250
weeks ranging from 65-30 weeks across 5 members of staff) with 2 senior managers assigned
to controlling the structure and internal works (65 and 57 weeks respectively) and the remaining
3 site managers onsite during the fit out works. Contractor B has less detail but overall they
have included a total of 226 weeks.

Site engineers
Contractor B has the highest number of full-time working weeks for site engineers (241 weeks, 2
for the full duration, 1 from week 17 to completion). This is more than double that provided by
Contractor A (118 weeks). Based on the complexity of the works this is potentially of concern
however Contractor A has confirmed that together with their supervision allowance they believe
that sufficient resource has been included and should further engineers be required these will be
provided.
Attendant labour
Both contractors have included an attendant labour gang for the duration of the Contract, for
example, two labourers to distribute materials and assist sub-contractors.
Security
An out of hours security guard has been included by both Contractors,
Temporary services
This pricing of temporary electrics and water significantly varied between the 2 tenderers, with
the Contractor B costs being 50,000 and Contractor A costs 100,000. In our experience of
projects of this nature the figure included by Contractor A is more reflective of the figure
expected.
We have queried the value included for these items with Contractor B, and they have confirmed
that they are happy with their tendered figure.
Scaffolding and site hoardings
The pricing of the scaffolding and hoarding again varies, with Contractor A including 200,000
and Contractor B 250,000. The scaffolding costs are however linked to the construction
sequence and method adopted by each contractor.
Cranes / hoists / small plant and material distribution
The prices varied for this item with Contractor A including 300,000 and Contractor B
200,000. Again as with scaffold the cost of this element is partially dictated by the construction
sequence and method as well as the hire periods included by each contractor. Additionally,

-8-

[Client]
[Project name]
Example Tender report
[Date]

each contractor will have differing approach to what is included in a sub-contract package cost
in respect of cranage and material distribution.
Insurances / bonds / PCG
Both contractors have included within their tenders a performance bond equivalent to 10% of
the contract sum.
4.03.2 A review of each element should be made with appropriate comments made for each element.
Examples are provided below:
Substructure
Contractor B was the most competitive for this element. Rate generally from both contractors
were competitive for earthworks, concrete formwork and piling. However, Contractor B
reinforcement costs were significantly lower being priced at [xxx]/tonne. Contractor B were also
the lowest with respect to waterproofing the GF slab, but we have queried the specification
priced by them as there is a large cost difference on this item.
4.3.3

Frame
Contractor A has the lowest price for this element. Contractor B were approximately [xxxx]
more expensive however Contractor A have included shear studs as part of their metal decking
price and not in the frame element.
The respective overall costs of the steel frame per tonne are as follows Contractor A [xxxx] /
tonne and Contractor B [xxxx] / tonne.

4.3.4

Upper floors
Contractor B are the lowest for the upper floors, as noted above. Contractor A metal decking
2
cost includes for the shear studs which accounts for the higher cost/m . In addition, Contractor
B tender stated that they had priced a 0.9 gauge deck, when 1.2 gauge was specified. This
correction results in a [xxxx] increase to their tender.

4.3.5

Provisional sums
As part of the tender analysis, the overheads and profit percentage advised by the tendering
contractors should be considered in relation to the total provisional sums and to ensure the
contractors have priced this section correctly.

4.4

Review of CDP submissions


Include commentary on any contractor designed portion of the tenders. This will require input
from the rest of the design team for example,
The following section is a summary of the design teams review, lead by the architect, of the
Contractor Design Portions, to ensure that the contractors proposals meet the employers
requirements for each of the elements noted below.

4.5

Arithmetic check
Include commentary on any errors found following an arithmetic of the bills of quantities and the
confirmation received from the contractors confirming the effect upon their tender in accordance
with the tender documentation rules for dealing with tender errors.

-9-

[Client]
[Project name]
Example Tender report
[Date]

4.6

Overhead and profit margin


Include commentary on contractor overhead and profit margins and potential implications on
project variations.

4.7

Dayworks
If dayworks are included in the tender submission provide comment on their competitiveness.

4.8

Review of submitted programmes


Include appropriate comments for example,
We have reviewed both of the contractors submitted programmes and have included a
graphical comparison of the programmes elementally, refer to Appendix B. The contractors
were given two options at tender stage, a fixed period of (xx) nr weeks or an alternative
programme based on the contractors own assessment of the optimum construction period.
The quality and content of the programmes varied between each contractors tender submission
and we will briefly comment on the individual content. The design team have separately
reviewed each of the contractors programmes to check the logic of the programme and the
likely impact this will have upon information release during the course of the project.

4.8.1

Contractor B [xx] nr weeks


This was the simplest of the programmes submitted with respect to content and items included
in the programme. The three main concerns relate to the roof, CAT A fit out and testing and
commissioning which were not specifically identified. A revised programme has been submitted
providing greater detail incorporating the above and linked to a procurement programme.

4.8.2

Contractor B [xx] nr weeks


This was the most detailed programme consisting of over [xxx] separate activities (this is
compared to Contractor As [xx] activities) and it demonstrates that a detailed review of the
construction methodology and sequence has been carried out.

4.8.3

Summary
Include summary of key points raised above.

- 10 -

[Client]
[Project name]
Example Tender report
[Date]

4.9

Revised elemental analysis

Include a revised elemental analysis picking up any adjustments resulting from the tender analysis
confirmed by the contractor adjusted in accordance with tender documentation for example,
The table below is an elemental summary of the tenders following our tender analysis and
confirmation of tender query responses. The figures contained below are rounded to the nearest
pound.
Element

Contractor A

Contractor B

Facilitating works
Substructure
Frame
Upper floors
Roof
Stairs and ramps
External walls
Windows and
external doors
Internal walls and
partitions
Internal doors
Wall finishes
Floor finishes
Ceiling finishes
Fittings, furnishings
and equipment
Sanitary fittings
M & E installations
Lifts and conveyors
BWIC
Site works
Drainage
External services
Prefabricated
buildings & building
units
Provisional sums
Addendum
- 11 -

Differences

[Client]
[Project name]
Example Tender report
[Date]
Preliminaries
Dayworks
Overheads and profit
Total

- 12 -

[Client]
[Project name]
Example Tender report
[Date]

Contractor A

[Original tender]

Adjustments to tender as result of tender appraisal:


[Schedule amendments]

[Amendment 1]

[xxxxx]

[Amendment 2]

[xxxxx]

etc

Addition/Omission to tendered figure

[xxxx]

Revised tender figure ([xx] nr week programme)

[xxxxxxxxx]

- 13 -

[Client]
[Project name]
Example Tender report
[Date]

Contractor B

[Original tender]

Adjustments to tender as result of tender appraisal:


[Schedule amendments]

[Amendment 1]

[xxxxx]

[Amendment 2]

[xxxxx]

etc

Addition/omission to tendered figure

[xxxx]

Revised tender figure ([xx] nr week programme)

[xxxxxxxxx]

- 14 -

[Client]
[Project name]
Example Tender report
[Date]

5.00

RECONCILIATION WITH PRE-TENDER ESTIMATE

Outline how the tenders, following appraisal, compare to the pre-tender estimate. Detail the percentage
difference between the revised tenders and pre-tender estimate and explain any cost differences
between the two documents.

- 15 -

[Client]
[Project name]
Example Tender report
[Date]

6.00

CONCLUSION AND RECOMMENDATIONS

Summarise the tender process and briefly detail the initial tender figures and the revised tender figures
for each contractor. Make recommendations based on the report and outline any outstanding issues
that need to be agreed with the contractor to make the client fully aware of the situation at the time the
tender report is submitted. For example,
6.1

Following review and adjustments of the two lowest contractors tenders the table below
summarises the final position:
Contractor A

Contractor B

Contractor C

Contractor D

weeks

weeks

weeks

weeks

Original tender
Tender
adjustments
REVISED TOTAL
PROGRAMME
POSITION

st

nd

rd

th

6.2

Following analysis of the two lowest tenders Contractor A have submitted the most competitive
tender and has shown an excellent understanding of the scope of works required of them.

6.3

[Quantity surveyor] in conjunction with the design team recommend that [client] enter into
contract with Contractor A for the construction of the works subject to [any checks] and
resolution of [outstanding issues].

6.4

In accordance with the form of tender, the offer remains open for acceptance for [nr] weeks
from the date of tender submission.

6.5

At the time of writing the following issues still require resolution:

List as appropriate.

14

[Client]
[Project name]
Example Tender report
[Date]

7.1

APPENDICES

Supporting documentation, such as form of tender, programmes and any other supporting
information/analysis will be notified here.

A.

Tender opening form

B.

Summary of programme analysis

C.

Summary of contractor staffing

D.

Reconciliation with pre-tender estimate

E.

Design team report on CDP elements

F.

Design team recommendations

15