Top Banner
BTEC HND CIVIL ENGINEERING Assignment 01 Tender Procedure & Estimating Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88 [Student name : K.D.G.Malinga Damith] 1 Task 01 I. Description of the stages in Open and Selective Tendering Introduction A tender is a submission made by a prospective supplier in response to an invitation to tender. It makes an offer for the supply of goods or services. In construction, the main tender process is generally for the selection of the contractor that will construct the works. However, as procurement routes have become more complex, so tenders may be sought for a wide range of goods and services (for example on a construction management contract the works are constructed by a number of different trade contractors each contracted to the client) and contractors may take on additional functions such as design and management. There is also an increasing tendency for suppliers to be aggregated into single contracts, for example, 'integrated supply teams' on public projects may include; the main contractor, designers, sub-contractors, suppliers, facilities mangers and so on.
24
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

1

Task 01

I. Description of the stages in Open and Selective Tendering

Introduction

A tender is a submission made by a prospective supplier in response to

an invitation to tender. It makes an offer for the supply of goods or services.

In construction, the main tender process is generally for the selection of the

contractor that will construct the works. However, as procurement routes have

become more complex, so tenders may be sought for a wide range of goods and

services (for example on a construction management contract the works are

constructed by a number of different trade contractors each contracted to the client)

and contractors may take on additional functions such as design and management.

There is also an increasing tendency for suppliers to be aggregated into single

contracts, for example, 'integrated supply teams' on public projects may include; the

main contractor, designers, sub-contractors, suppliers, facilities mangers and so on.

Page 2: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

2

Type of tenders

There are four main types of tender opportunities.

1. Open tendering

2. Selective tender

3. Nomination tendering

4. Serial tendering

Open Tendering

Open tender is an arrangement where an advertisement in local newspapers

or trade journals invites contractors to apply for tender documents. Open Tender is a

transparent process which ensures that only the contractor with the best price and meeting all

the technical requirements will win the tender.

Advantages of the open tendering process are:

Be open to all qualified and interested bidders

Give high level of competition and contractors tend to give best prices as compare to

other tendering method.

New firms can enter into the market

Contractors can enlarge their market and find new clients

Disadvantages of the open tendering process are

Lengthy timeframe for completion of the procurement action,

Requires strict adherence to procedures,

Assumes existing internal capacity for the completion of clear and precise

specifications,

Restricts suppliers‟ participation in determining the technical specifications,

Limits the possibility of building long-term relationship with suppliers,

Focuses only on a least-cost solution,

Suppresses innovation,

Excessive formalism may limit supplier participation in the tendering process.

Page 3: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

3

Selective tendering

Selective tendering only allows suppliers to submit tenders by invitation. A

pre-selected list of possible suppliers is prepared that are known by their track record to be

suitable for a contract of the size, nature and complexity required. Consultants or experienced

clients may maintain „approved‟ lists of prospective suppliers and then regularly review

performance to assess whether suppliers should remain on the list.

Selective tendering can give clients greater confidence that their

requirements will be satisfied and should reduce the wasted effort that can be involved in

open tendering. It may be particularly appropriate for specialist or complex contracts, or

contracts where there are only a few suitable firms. However, it can exclude smaller suppliers

or those trying to establish themselves in a new market.

This type of tendering short listing can be done by,

ICTAD Category

Invitation

Prequalification

Post qualification

Negotiation

Advantages of Selective tender

Well known contractor

Good quality

Less aggregate cost for tender

Less evaluation time

Disadvantages of Selective tender

Favourism

Less price competition

Cartel tendering

New firms cannot enter in to the market

Regular updating is necessary

Page 4: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

4

II. If going for a selective tender, prior to call for tender estimation, the contractors

need to be short listed. Analyse the factors which are used by clients to formulate

the selected lists.

Tendering is the process by which bids are invited from interested

contractors to carry out specific packages of construction work. It should adopt and observe

the key values of fairness, clarity, simplicity and accountability, as well as reinforce the idea

that the apportionment of risk to the party best placed to assess and manage it is fundamental

to the success of a project. So the client has to consider lot of factors when the doing the

tendering process.

1. Details of the company

2. Technical resources

3. Financial information

4. Sub-contracting

5. Equipment capabilities

6. Health and safety

7. Successfully complete projects with time, quality and cost

8. ICTAD grading

9. Experience

10. Financial stability

Details of the company :- Client has to know about the company and its working history

really well to hand over his project. And as well as he should check whether that company

can finish the project within time quality and cost. Other than that it‟s better to know about

what are the achievements that company has achieved in its level.

Technical resources :- Client should know about the technical resources which company can

use for his construction project to finish his work within the client‟s requirements.

Sub-contracting :- Its better know about the people who are doing the sub contracts for the

construction. From that client can check whether they are supply the equipment and the

material in good quality.

Page 5: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

5

Equipment capabilities :- When considering the plants and the equipment which are going

to be used for the construction, it‟s better to have a good idea about the machines and their

qualities to avoid the hazards which can be happen during the construction.

Successfully complete projects with time, quality and cost :- Before the handed over the

project to the particular contractor, client must checked out what are the successful projects

which completed by them. By visiting and search through the internet client can get clear idea

about their company and the work whether they have finish their job within the time quality

and cost.

ICTAD grading :- In construction industry ICTAD grading is more important than the other

qualifications to get a contract or a tender. ICTAD grading is awarded which the company is

good in construction work and that company has evidence to prove that, their company is

good in work and completing projects with time, quality, cost and managing available

resources as well. ICTAD grading also cause for give tender to a contractor.

Experience :- Past experience is very important factor of the pre-qualification. The

contractor‟s direct or relevant previous experience in completing similar work should be

considered by client before inviting the tenders. The client consider about whether

contractors past construction project are similar or big .

Financial stability :- Financial side of a company is very useful for client whether give

tender or not to the company. Some companies entered to the industry and sometimes they

don‟t have sufficient money. Their finance side is not stronger than other older companies.

Page 6: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

6

III. Discussion of contractual documentation required for tendering

Contractual documents which are mostly need to be have for the tendering

1. Instruction to bidders

2. Conditions of contract

3. Securities and guarantees

4. Bills of quantities

5. Specifications

6. Drawing

7. Form of bid and qualification information

8. Bidding data and contract data

9. Schedule of work

10. Form of tender

Instruction to bidders :- A document included as part of the bidding requirements that sets

forth specific instructions to candidate constructors on procedures, expectations and

disclaimers of the owner, and other necessary information for the preparation of proposals for

consideration by the owner for a competitive bid.

Conditions of contract :- Terms and conditions that set the rights and obligations of the

contracting parties, when a contract is awarded or entered into. These include 'general

conditions' which are common to all types of contracts, as well as 'special conditions' which

are peculiar to a specific contract (such as, contract change conditions, payment conditions,

price variation clauses, penalties).

Bills of quantities :- Bill of quantity is also very important part of the construction process.

BOQ helps to client and Consultant Company to select the suitable contactor for their

construction project. This also provides an impartial and accurate system for tendering. Each

invited tenderer bids against the bill of quantities, making their price for each work item.

Their priced bill of quantities creates their offer. Tenders sent two copies of bill of quantity

and one for the architect or surveyor with the tender and the other for the contractor to keep

as a copy of his submitted prices. If the tenders are not required to submit priced bills with

Page 7: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

7

their tenders, only one copy need sent to them initially a second copy will then be sent at the

time requesting submission of the priced bills.

Specifications :- Specifications are written documents that describe the materials

and workmanship required for a development. They do not include cost, quantity or drawn

information, and so need to be read alongside other contract documentation such as

quantities, schedules and drawings. Likewise, written information about materials

and workmanship should not appear on drawings or in bill of quantities, instead they should

refer to the appropriate clauses in the specification.

Drawings :- All set of drawings that form part of the job to be performed. These drawings are

usually the latest drawings and must be received by the contractor prior to the date of

commencement. It must include all drawings from consultants, and will constitute the entire

project being contracted.

Schedule of work :- The construction schedule is an important piece of the document. In this

part, the contracting office will know how and when the project will be completed.

Sometimes, construction contracts will require updated schedules throughout the construction

progress, and might form part of the monthly, or agreed term, application for payments.

Form of tender :- The Form of Tender is a form where the tenderer can fill in details relating

to their offer, including the lump sum for which they are offering to complete the works. The

Schedule is the part of the Contract that specifies the particular details relating to a particular

project.

Page 8: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

8

IV. Explanation of client’s involvement in tender process

Tender Process

Tender procedures must be clearly set out and recorded to ensure evidence of full compliance

with the Code. Care should be taken regarding the receipt, recording, assessment,

confidentiality etc. of all communications including verbal, written and electronic methods.

Audits may be undertaken at any stage of the tender process by internal or external auditors

such as the Victorian Auditor General's Office or the Ombudsman.

Stages

The standard tender process consists of 4 main stages

Pre-Tender,

Tender,

Evaluation and

Award

Client

The Client has multiple responsibilities, and it is normal to divide these

amongst several individuals so that the appropriate management structure can be

implemented and conflicts of interest avoided.

Page 9: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

9

The overarching Client responsibilities and roles are

Responsibility for making the decision to invest in the Project.

Responsibility for the approval of the project and thereafter providing a

sustained commitment to the project (may be the Director of Finance, Vice

Principal or such)

.

There are four types of tender are used in construction industry. They are:

Open tendering

Selective tendering

Nomination tendering

Serial tendering

Then client issued tender documents in certain time period and give certain time period for

fill and make the tender documents and submit to client.

After tender submission period then it comes to tender opening process. In tender

opening, contractor or represented should attend to the moment. In tender opening

Client‟s Quantity surveyor announce the each tender sum and contractors rates. Also

Client‟s Quantity surveyor needs to check is the tender documents in order. If it is not

in order that tenders will be rejected.

After tender opening then come to tender evaluation period. In this period Client‟s

Quantity surveyor select most suitable contractor for their project and after tender

evaluation period construction project is hand over to selected contractor.

Page 10: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

10

V. Analysis of the constraints which may apply to the tender process.

There are four main tendering systems as, Open tendering, Selective Tendering, Nomination

Tendering and Serial Tendering.

Open tendering – the process of offering the construction project to any one in

construction field and any one need to enter the field.

Selective Tendering – the process of offering the construction project to few

contractors in construction field.

Nomination Tendering – the process of offering the construction project to only

one well known contractor.

Serial Tendering– the process of offering the construction project to contractors

according a particular order, if they registered before.

Page 11: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

11

Our selected project is selective tendering systems. It‟s easy to us and this not big

project but we must think about quality and cost. They have experience and the can build to

fine cottages. Within this time period, sometimes some tenders can be rejected because there

are several constraints which may apply to the tender process.

Incomplete bids

Lack of supporting documents

No time to review tender process

Tender are difficult to understand

Poorly presented which make them look unprofessional

Tenders take longer to complete them competition

Tenders are not competitively priced

The estimator should be prepared to respond to any request for further information or a

notification that the submitted tender contains error in computation. For errors, two

alternative courses of action are possible:

The tender will be given details of such errors and afforded the opportunity of

confirming or withdrawing the offer. The estimator will need to refer to management

when the extents of the computation errors have been determined for a decision as to

whether to confirm the original tender figure or withdraw the tender.

The second option is that the tenderer is given an opportunity of confirming his offer

or amending it to correct genuine errors. If the contractor elects to amend his offer and

the revised tender is no longer the lowest, the second lowest tender will be examined

in more details.

The estimator must consult with management to establish whether to amend the tender figure

or to confirm the original offer, once the extent of the computation errors has been

determined. In the both situations the estimator or signatory to the original tender must be

prepared to endorse the appropriate tender documents to note the acceptance or change to the

tender. Such amendments must also be endorsed by the employer in the event that a contra t

is subsequently awarded.

Page 12: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

12

VI. Evaluation of the different forms of contracts used in the construction process.

What is a contract

Contracts are "legally binding" agreements, which, in a legal context are valid and must be

fulfilled, with certain exceptions. For an agreement to be regarded as a contract, it must

contain four essential ingredients. The absence of any of the following four parts will make

the agreement not legally binding:

1. Offer

2. Acceptance

3. Intention of legal consequences

4. Consideration

Contract used to say what is expected of client, Says what client expect

of the other contractor or organization, protect each other‟s needs and rights, make each party

more responsible for what that party promises to do and it says what happens if a party does

not keep its promise. The contract type is the key relationship between the parties engaged in

the business and the contract type controls the project risk. There are two main contract

methods are used in the construction industry. They are lump sum method and measure and

pay method.

Lump sum method

Where the contract sum is determined before construction starts, and the

contractor undertakes the work for an agreed sum. Lump-sum contract can be with quantities.

The price will be based on the drawings and a firm bill of quantities. Items which cannot be

accurately quantified can be recovered by an approximate Quantity or a provisional sum, but

these should be kept to a minimum the other method is without quantities. Its price based on

the drawings. Tenders can be prepared on the basis of notional quantities.

Advantages

Lower financial risk to Employer.

Higher financial risk to Contractor.

Minimum Owner supervision related to quality and schedule.

Page 13: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

13

Contractor has higher incentive to achieve earlier completion and better

performance.

Contractor selection is relatively easy.

Disadvantages

Sometime Higher risk not good for contractor

Design should be finalized before the bidding

Changes are difficulty and costly

Contractor will select its own means and methods

Bidding is expensive and lengthy

Measure and pay

This method also called re-measurement or Measurement contracts. The

simple definition of this method is where the price to be paid for the whole work is decided

by measurement and valuation related to a schedule of prices included in the contract.

Measure and pay Contract contains a Bill of provided by the employer or its consultants. A

Measure and pay contract might also be suitable on projects where the design has not been

completed in sufficient detail for bills of quantities to be produced. Normally tenderers rates

will be based on drawings and approximate quantities. if some client use this method as his

contract type these requirements should be need. They are Good quantity surveying and

reporting system, Experience in developing bills of quantities, sufficient design definition to

estimate quantities of units and Payment terms properly tied to measured work completion.

Advantages

Complete design definition not required at tender

“Typical” drawings can be used for bidding

Suitable for competitive bidding

Easy for contractor selection

Early project start possible

Changes in contract documents can be made easily by the owner.

Lower risk for contractor in comparing with lump-sum contract

Page 14: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

14

Disadvantages

Final cost can be changed from the contract sum

Better supervision needed to quality control

Can lead for disagreements The suitable contract method for this project is measure

and pay contract method.

According to the “Happy Stay” project

I select the lump-sum contract for the “Happy Stay” project

because this is not a big project. This type of contract is suitable for the small projects. This

project has only 10 cottages. The contract sum can be determined before the construction. So

there is no risk for the client. The time period for this project is not long because of that the

material cost is not varying so much. There for the lump sum contract is the most suitable

contract type for this 10 cottages project.

Page 15: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

15

Task 02

I. Method statement for Mixing and Placing of Grade 30 reinforced concrete

for 300 x 300 mm columns in ground floor.

Blinding concrete: Surveyor should mark the size and location with elevation of blinding

after formation level achieved by earth works and released for concrete works. Erect form

work for blinding at 75mm thickness as per approved drawings for each specific foundation.

Cast the concrete blinding with approve mix design class C30 grade. Allow the concrete

blinding to be hardened and cured as per relevant specification. this should be read in

conjunction with method statement.

Form work: Forms shall be of wood and plywood is used for exposed surfaces and is of type

18mm thick plastic coated plywood to achieve the specified finish. The forms shall be faced

to give the specified class of finish for the structures. The form surfaces for exposed concrete

shall be smooth, true and free from all irregularities. All exposed finished edges of concrete

shall be chamfered by chamfers cut from nominal 25mm x 25mm timber unless special

architectural finishes are specified.

Reinforcement: The reinforcing bars, ties, links, stirrups and all other reinforcing shall be

positioned and rigidly fixed exactly as shown on the drawings such that the minimum cover

requirements are achieved and the true alignment of the reinforcement is the maintained.

Splices in reinforcements shall be made at design locations shown on the drawing. All

reinforcing bars shall be stored on the site on supports suitably spaced and at sufficient height

to keep the steel clear of the ground. Long term storage shall be minimized on site.

Scaffolding: All the above ground constructions for buildings superstructure walls, columns,

elevated slab and roof slabs shall be executed on scaffold platforms. These platforms will

support form work, safe access as well as platform for concreting work. All the scaffold

platform shall be inspected and released for use prior to go for intended work. Scaffold for

slab shall be prepared as per approved drawings. No scaffold platform shall be used without

inspection and certified approval.

Page 16: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

16

Structural concrete: Transport of concrete shall be in a truck mixer to site discharge point

within 1 hour after the time of loading. On completion of delivery of the concrete the truck

mixer may be washed down on site only at designated location. The wash down from the

internal of the truck mixer shall not be discharged on site but shall be returned to the batching

plant for disposal. A concrete and inspection test plan including all actions to be dealt with

relevant execution. Concrete shall not be placed unless the positioning, fixing and condition

of the reinforcement and any other embedded items; the cleanliness, alignment and suitability

of the containing surfaces have all been inspected and approved. Forms shall be well soaked

with water prior to concreting. Concrete shall not be freely dropped from more then 1.5m

height. Concrete pump/crane with bucket shall be used when mixer can not reach the

location.

Removal of form work: All form work shall be removed as per the times. After removal the

form work, all fins and projecting edges shall be cleaned from the concrete faces which are to

be exposed in the permanent works and if the surfaces require dressing it shall be as

described in the relevant standard. Curing procedures shall be initiated immediately after

removal of form work.

Repair: Touching up of concrete surfaces after the removal of form work is not permitted

until they have been inspected and released in accordance with the quality procedures. The

repair method including materials and the extent of the repair works to remedy the

imperfections of the concrete shall be specified and approved for each repair case and comply

with the design requirements of the structure concerned. This is the good way for the building

concrete work.

Page 17: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

17

II. List of market rates in Colombo, for Material, Plant & Labour which is

used for this calculation.

According to the Building Schedule of Rates (BSR) values,

List of market rates in Colombo

Cement bag 1 = Rs 950 /bag

Sand = Rs 5400 / cube

Metal

) = Rs 4800/ cube

Skilled labors = 1200/ day

Unskilled = 900/ day

Mixer = Rs 2700/ hour

Vibrator = Rs 250 /day

Mixing concrete 1:1:2(3/4’’)

Materials which are used for a cube

31 cwt cement (50kg bags)

0.44 cube sand

0.96

metal

day hire for mixture

Water (200 gal)

Labour

6 days unskilled labours

1 day skilled labour

Page 18: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

18

III. Calculation of profit and overhead margin, with the following details.

Mixing grade 30 concrete

Material cost per cubic meter

31 cement bags = 31 × rs950 = Rs 29450

0.44cube sand = 0.44 cube × Rs 5400 /cube = Rs 2376

0.96 metals = 0.96 cube × Rs 4800 = Rs 4608

Total material cost = Rs 36434

Labor cost per cube

Skilled labor per day = 1 day × Rs.1200 = Rs.1200

Skilled labors for 6 days = 6 days × Rs.900 = Rs.5400

Total labor cost per cube = Rs.6600

Machine cost per day

× hire for concrete mixture =

×8h × Rs.2700 = Rs.7200

Total cost (3% of labor)

Tools cost = Rs.6600 × 3%

= Rs.198

Basic cost = 36434 + 6600 + 7200 + 198

= Rs.50432

Cost per cube = Rs.

= Rs.17820. 49

Placing of concrete

Assume details of columns,

Cross section = 300 300 mm2

Height = 10‟ (3.0 m)

Placing overall area (Ground area) = 10 5 m2

5m

5m

Page 19: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

19

Assumed labor requirement,

Skilled labor

Mason 1 day

Carpenter 1 day

Unskilled labor 4 days

Skilled labor for vibrator 1 day

Unskilled labor for curing 2 days

Tools

Vibrator 1 day

Material

G 30 concrete = (0.3×0.3× 3 m3) @ Rs.17820 . 44/m

3

= Rs.28869.19

Labor

Skilled

Mason 1 day

Carpenter 1 day

Vibrator 1 day = 3 day @ Rs.1200/ day

= Rs.3600

Unskilled labor

Placing 4 day

Curing 1.5 day = 5.5 @ 900 day / day

= Rs.4950

Tools

(Including the 3% )

= [3600 + 4950] 3%

= Rs.256.50

Page 20: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

20

Vibrator = 8 hrs @ Rs.250

= Rs.2000

Therefore the cost for 1.62 m3

(6 columns) = (28869.19+3600+4950+256.50+2000)

= Rs.39675 .69

IV. Calculation of the rate per m3 including overhead and profit.

Basic cost per m3 =

= Rs.24491. 16

Rate including OH profit = Rs.24491.16 × 1.2

= Rs.29389 .39

V. Calculation of the rate per m including overhead and profit.

Basics cost per m =

= Rs.2204.20

Rate including OH profit = Rs.2204.20 × 1.2

= Rs.2645.04

VI. Determine the critical factors which might have used to decide the profit margin as 9%

Profit.

Tender sum with over head profit = 41.5203M

Site over head = 1.8923M

Head office over head profit = 1.1032M

Profit margin = 9%

Page 21: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

21

Over head (

) × 100%

= 7.21%

Over head profit margin = (7.21 + 9) = 16.21%

Therefore tender sum = 41.5203 × 116.21 %

= 48.25M

Page 22: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

22

Task 03

i. In this tender, BOQ plays a vital role in contractor’s estimating. Demonstrate how

the bill of quantities format can be prepared by the consultant and how the

contractor can use it to build up estimates.

Bill of Quantities Preparation

Preparing bills of quantities for contractors and sub-contractors requires a

great deal of thought and time. From the cost of materials, to parts and labour, every single

item must be accounted for. The bills should also detail the terms and conditions of the

construction or repair contract and itemize all work enabling the contractor to accurately

price the job they are bidding for.

The process of preparing bills is understandably even more time consuming.

Where appropriate, the Quantity Surveyor will prepare Bills of Quantities based on the

Architects Drawings and Engineers drawings. The Quantity Surveyor will also consult the

Project Manager regarding any operational restrictions. The Quantity Surveyor and the

Mechanical and Electrical Consultant will prepare a pre-tender estimate to confirm that the

scheme is within budget. If reductions are required the Quantity Surveyor will, in

conjunction with Design Team, submit a schedule of reductions which can be priced during

the tender stage.

The Bill of Quantities has been developed to provide all possible items that

could be required in a project. However, project specific BOQ shall consist of items

necessary for the execution of the particular project. The Consultants must customize BOQ to

be project specific by deleting the unused items and adding new items relevant to the

particular project

Advantages

It saves considerable time and cost of several contractors measuring the same design

in order to calculate their bids for competition;

It provides a consistent basis for obtaining competitive tenders from contractors;

It provides an extensive and clear statement of the work to be executed;

Page 23: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

23

It provides a very strong basis for budgetary control and accurate cost reporting of the

contract including:

- the preparation of cash flow forecasts,

- a basis for valuing variations, and

- a basis for the preparation of progress payments

It allows, when BQ items are codified, reconciliation and any necessary transfers and

adjustments to be made to the cost plan;

When priced it provides data to support claims for grants;

It provides one of the best sources of real-time cost data, which can be used for

estimating the cost of future building projects

ii. Health, safety & welfare are important issues in the construction. Preplanning of

these, will avoid unwanted big expenditures. Evaluate how the health, safety and

welfare plan affects this tender .

Health and Safety

The Planning Supervisor should finalise the Pre-Tender Health and Safety plan which will

then be passed to the Quantity Surveyor for inclusion in the contract documentation. The

Project Manager will comment on the plans adequacy.

The importance of health and safety in construction

Health and safety in construction is not a matter to be taken lightly. In fact,

health and safety needs to be front of mind in every aspect of construction at all times. The

construction industry is prone to many hazards and accident potential. Construction materials,

tools, machinery and handling techniques all come with their own dangers. The main types of

accidents which cause death or serious injury on construction sites include falls, incidents

with site vehicles, collapsing materials and contact with overhead power lines.

Most accidents can be avoided by implementing stringent health and safety

protocols and ensuring those protocols are constantly maintained. H&S methods will ensure

the construction site has good design, good planning and uses tried and tested safety

techniques.

Page 24: Malinga

BTEC HND CIVIL ENGINEERING

Assignment 01 – Tender Procedure & Estimating

Lecturer : Ms.K.Kavitha | Student ID : MT/HND CIVIL/05/88

[Student name : K.D.G.Malinga Damith]

24

There is simply no excuse for slacking or cutting corners when it comes to

health and safety in construction. Poorly implemented health and safety techniques, design

and management can result in accidents, illness and even death.

Pre-Tender Stage Health and Safety Plan

• Essentially the plan is a collection of information about the significant health and

safety risks of the construction project which the Principal Contractor will have to

manage during the construction phase.

• The degree of detail and the time and effort involved in preparing it should be in

proportion to the nature, size and level of risks involved in the project.

Contents of the Pre-Tender Stage Health and Safety Plan

• Nature of the project

• The existing environment

• Existing drawings

• The design

• Construction materials

• Site-wide elements

• Overlap with the client‟s undertaking

• Site rules

• Continuing liaison

The Planning Supervisor hands the health and safety plan. It is then their responsibility to

develop it into a working document that will assist in the health and safety management of

the project.