TENDERING: Evaluate your financial Capacity

Hi there, below is guideline on how to evaluate your financial capability for tendering purpose.

Available CASH IN HAND
Average 3 months bank statement = RM A
Remaining of banking Facilities = RM B
Credit Facilities (Construction Material) = RM C

Total Cash Available = RM A + RM B + RMC,  eg. $2,000,000.00

Liability
Current Project In Hand ( Value of Remaining works)
Project 1 = RMa , eg: $5,000,000.00
Project 2 = RMb, eg. $ 8,000,000.00

Liability recorded in the audited account = RM E eg, $300,000.00

Tender value = RM D , eg.; $ 30,000,000.00

Total liability = RMa + RMb +RM D + RM E , eg. $43,300,000.00


usually under instruction to tenderer do stated minimum available financial required to ensure that contractor have the capacity to carry out the work.


hence,
I assume that the requirement is 3% of the tender value.


therefore ; Available cash percentage (%) = Total cash / Total Liability 
                                                               = ($2,000,000.00 / $43,300,000.00)%
                                                               = 4.619% > 3% ( marginal pass only)


to be secure make sure that you have at least 6% financial capacity.


This is just a guideline. The positive result of your tender also depend on your track record, machine, equipment, plants, labour and your work experience.


Good luck all Contractors.

METHOD STATEMENT FOR SITE CLEARING.

           1.      Site perimeter survey shall be partially started and approved by
            S.O / S.O.R / S.O.R Rep.

     2.      Contractor shall obtain early commencement letter from NREB.


     3.      Prior to site clearing, contractor shall inform/Submit  and obtain 
             approval from the S.O / S.O.R / S.O.R Rep.    pertaining to the followings;

a)      Mitigation measure for the surface run off.

b)     Location of the Dumping Site for disposal purpose.

c)      Location of the stock pile yard for top soil for later use.

d)     Possible obstruction on site clearing activities such as existing crops,

 structure and etc.

           4.       Upon receiving approval from S.O/S.O.R/S.O.R Rep. site clearing activities
              shall proceed from the center of the roads towards the construction limit.


     5.      There shall be no vegetation, trees, debris and spoils be deposited into 
             streams, rivers or water courses or use as fill material.


     6.       All trees and vegetation identified by relevant authorities for conservation 
             shall be protected.


     7.       During the course of site clearing, all necessary temporary diversion for 
             water way shall be constructed and maintained throughout the construction
             period to keep the site free from stagnant water.


     8.      If due to unforeseen circumstances turfing works could not be carried out,
             those expose area shall be properly protected against erosion by ways of 
            covering it with   plastic sheets or any practical and equivalent method.

ROAD CONSTRUCTION

CLICK IMAGE FOR MORE REFERENCE


Component of Road Construction.

1. Survey Works
   1a. Right of way or Boundary Survey
   1b. Road centreline (CL) Survey.
   1c. Road levelling survey ( Subgrade Level, Subbase Level, Roadbase Level,Finishing road level survey.
   1d. As built Survey.
   1e. Invert level for drain, Culvert
   1f. Slope formation survey.
2. Site clearing.
3. Stripping of top soil.
4. Cutting and filling to form the subgrade level.
5. Cutting to form the slope formation level.
6. Laying of the Subbase with the approved material.
7. Laying of the roadbase with approved aggregate.
8. Spreading filler to top of roadbase.
9. Sparying the prime coat on top of the roadbase.
10. Laying of the Asphaltic Binder course.
11. Laying of the Asphaltic Wearing Coarse.
12. Construction of the drainage system, (Bench or berm drain,Toe Drain, Roadside drain)
13. Piling works to drain, Culvert or bridge.
    
     

Testing required in road construction.

1. Selection of material
2. Compaction test.
3. CBR test
4. Makintosh probe testing
5. Marshall test
6. Cube test for concrete.
   
   
   
   
    

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How to Bid and Win Any Tender

Tendering process is a very crucial to every contractor. Here are the top rules that contractor must adhere to.

1. Follow exactly whatever that are written in the " Instruction to Tenderer " Section.
2. Never use "blanco" or " liquid Paper" if you make any mistake in filling in the Form. Only Strike of the mistake, initial and stamp with company stamp.
3. Write in Capital Letter.
4. Make sure that you have at least 1/3 of financial capacity against your tender value.
5. Never try to be in the rank of lowest tenderer in term of the value of the tender you offer.
6. Try to include only the related construction experience.( The same or almost the same nature of scope of work and value of work.

With this set of rules, I wish all of you the best wishes in you tender bidding.

COMMON TENDER ESTIMATION MISTAKE

Common Tender Estimation Mistake by Contractor.
Tender estimation is a very important area for a contractor in order to secure a contract. Their estimation must be very competitive to ensure that they will win in their bidding. However the common scenarios that repetitively happen among the tenderer are always as the following.

1. The cheaper the construction cost, the higher their chances to secure a contract.
2. Assumption always being done without visiting the actual site, thus they will not be able to provide a cost that is as accurate as needed to suite the site condition.
3. Most of the time the contractor always by pass the standard condition of contract and also the special condition of contract which normally being include inside the tender document. Thus, as the result, they will only estimate base on what is inside the bill of quantity and the tender drawing. Usually inside the bill of quantity, there is an item listed as "other necessary work that deem to be necessary to complete the work ". This is where the special condition of contract, standard condition of contract, standard specification and special specification requirement should not being assume.

There are cases that there are some work deem to be necessary to complete the work that being shown in the tender drawing but it was not specifically being spell out in the bill of quantity that had cause the awarded contractor fail to price the cost to the particular work. As the result during construction this contractor have raised their concern over this issue of the particular work by mentioning that it was not included in the contract as it has not being listed out inside the bill of quantity. After a thorough study of the contract document, it was found out that there is a clause in the special condition of contract mentioning that if there is any necessary work that deem to be necessary to complete the project and had being shown in the tender drawing, contractor should price it under the item "necessary work to complete the job". Because of this clause, the contractor have to do the work out of his own expenses which the cost cannot be claim from the client as the variation or addition work. Therefore it is very important for contractor to properly study the tender document and the drawing in order to give a competitive tender price that will not become a deadly trap to their construction work.
All the illustration and scenarios above are not the only common mistake done in preparing the cost estimation for a tender but there are many other such as fail to know the market price, calculation error or even for the sake to penetrate the market. Hence in preparing the tender pricing, contractors need to look into all area that will affect the construction work.
Contractors, Good luck and best wishes for you.

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Tender Notice

HI,

Good Day..

All Contractor, If you want to check the tender notice under Jabatan Kerja Raya Negeri Sarawak, You can Click the link below.

http://www.jkr.sarawak.gov.my/