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ESTATES OFFICE – OPERATIONS

DEPARTMENTAL PROCEDURE No.6

Tendering Procedures

ISSUE RECORD

Revision Description Updated Date

Compiled by

Review Date

6. TENDERING PROCEDURE

of 25 University of Bristol Issue Date Estates Operations October 2010

6. TENDERING PROCEDURE The University needs to demonstrate openly that competition is brought to bear upon

procurement processes so that value for money is obtained. The University of Bristol issues guidance in this respect and Estates Operations Department aims, by following the procedures below, to operate within those requirements.

Tendering processes must be considered in relation to the size of the contract to be

placed. The following Section details the methods which must be followed for tendering works and sets down limits above which full competition must always be achieved.

It is important to plan sufficient time for the following processes to be carried out fully.

Even on accelerated work a period for tender must be allowed if true value for money is to be secured. This must be borne in mind when agreeing timescales with client representatives and when closing off design requirements and changes, except in circumstances of partnering which requires authority of the Director of Estates Operations.

6.1 Guiding Principles Competitive tenders are sought in order to ensure that a fair and reasonable

price is secured for contract works that provides value for money. Tendering, therefore, is executed under a confidential and ‘”sealed” process whereby tenderers are, as far as practicable, unaware of whom they are competing against. Collusion between tenderers in the tendering process is not unknown and therefore it is important to maintain a position of complete integrity and impartiality whilst waiting for tenders to be submitted. Tenderers should be required to complete a non‐collusion declaration, see form UB/3, Appendix 6/1, when returning their tender proposal.

Tender proposals must always be checked for correctness before acceptance.

Any significant errors, which are discovered, which have the effect of reducing the overall proposal must be checked with the tenderer, see qualifications below. The Department does not seek to take commercial advantage in situations since this, in the long run, can affect performance on individual contracts and on the pricing structures used by tenderers.

6.2 Contract Values and Tendering Methods Tendering procedures vary according to the estimated value of work to be

carried out. The value limits described below are not absolute; it may be that best value for money can be achieved by adopting methods other than standard procedures.



If a varied procedure is to be followed this must be approved by the Director of Operations in advance. A description of the process to be used in this eventuality must be recorded and placed on file.

For works projects greater than £3.9 million or goods/ services in excess of

£156,000 cumulative over a four year period tendering processes must include advertisement throughout Europe. Refer to the Senior Surveyor ‐ Head of Capital Maintenance and Infrastructure and/or Director of Operations and/or Procurement Office for guidance in these cases.

Where the estimated value of works exceeds £40,000 competitive tenders shall

always be sought unless single tender procedures are approved. See 6.3.10. For works where estimated value exceeds £1,000,000 special insurance requirements apply, see Procedure 7. For work where estimated value is expected to exceed £500,000 a tender board shall be convened to carry out the tender opening and review process.

6.3 Standard Tender Procedure Unless specifically agreed otherwise the following requirements must be

fulfilled when adopting standard tender procedure. Where consultants are engaged to secure competitive tenders it is permissible to vary the format of paperwork so that the consultants own documentation is utilised, the process however must match fully with the underlying requirements laid down herein.

6.3.1 Tender List Prospective tenders must be selected from the University’s Approved

List of Contractors. These contractors have already undergone a financial audit and have registered a copy of their company safety policy with the Director of Estates Operations and belong to an approved HPS Standards & Audit organisation, currently CHAS.

If new contactors are to be considered for eligibility to carry out work

then pre‐approval should be sought before finalising the tender list of a project.

There may be special requirements, which limit the choice of

contractors for work. The use of new contractors is to be encouraged once pre‐approval has been completed.

The names of companies included within a tender list must not be

divulged outside the Department except to consultants working on the project and to the nominated client representative. The identity of any company attempting to determine names of other tenderers should be passed to the Director of Estates Operations or the University Senior



Surveyor for action. The Senior Surveyor ‐ Head of Capital Maintenance and Infrastructure must approve all tender lists.

6.3.2 Contractor Selection – Matching to Contract Value Contractors shall only be invited to perform works equivalent in overall

value to no more than 25% of their annual turnover. This ensures that contractors do not run into exceptional cash‐flow problems either with their own bankers or suppliers. (This information is stored on the ‘Approved Contractors’ list.)

Contractors wishing to have special payment provisions outside of

standard contract payment practice should not be used as this may indicate cash flow sensitivity.

In the same way it is required that contractor selection is based upon

minimum turnover it is important to consider size‐matching of the whole tender list in order to ensure value for money. Wherever possible therefore tender lists should comprise companies of similar financial size. This is especially important when inviting new contractors to tender.

Having formulated the tender list this must be recorded and places

upon the project file along with the necessary approvals. See fig 6.1 It must always be presumed that if a tenderer provides the best value

for money (see 6.3.5) at the tender review stage then the Project Manager must be happy to proceed to contract with that Company. It is not appropriate to reconsider the suitability of a contractor after the tender list has been closed unless specific new information has come to light.

6.3.3 Tender List Approval All contractors who have been accepted onto the Approved List should

receive an equal opportunity to tender for work. Therefore, when formulating a tender list consideration must be given to rotating companies and avoiding the inclusion of selected companies on all tender lists. The Senior Surveyor ‐ Head of Capital Maintenance and Infrastructure is responsible for ensuring this occurs.

Managing tender lists in this way prevents particular contractors from

becoming too dependant on the University and also allows a greater breadth of experience in working on projects with us.



In approving a tender list therefore the Senior Surveyor – Head of Capital Maintenance and Infrastructure will consider overall factors relating to chosen companies and may wish to check, through cost records, how much total business a particular company has performed or is performing for the Department.

Management of the Approved Contract List is detailed in Procedure 9. 6.3.4 Invitation to Tender Tenders will be invited in response to a package of work fully described

by a specification and drawings where required. All tenderers shall receive identical information despatched at the

same time by 1st class post or made available for collection at the Department General Office. The tender will be distinguished by its project/job number, which will be referenced on all tender documentation.

Accompanying the tender package will be the following documents. UB/1 Invitation to Tender UB/2 Instructions to tenderers for return of tenders UB/3 Selective Tendering – Non Collusion Declaration UB/4 Form of Tender UB/5 Summary of Prices UB/6 Alternatives UB/7 Schedule of Work Sub‐Let UB/8 Income Tax Liability UB/9 VAT Estimate Form UB/10 Dayworks and Extra Works UB/11 Contribution, levy and tax fluxations (JCT Standard Contracts

only) UB/12 Added Value Submission & additional documents for

consideration. Information which will be used/ scored to provide a ‘value’

judgement on tenders where VFM is evaluated rather than just price.

Omission of any document must be agreed/ approved by the Senior

Surveyor – Head of Capital Maintenance and Infrastructure. A tender return date, time and place must be specified on the form of tender, UB/4, and the tender invitation UB/1.



6.3.5 Information Sought during the Tender Period All tenderers will be allowed the opportunity to visit site accompanied

by a member of the Project Team wherever possible. It is not unusual for questions to bring attention to problems or qualification with the design intention, which may affect the price submitted by the tenderer. The Project Manager must ensure that all such information is provided to all tenderers in writing so that all have equal chance of properly assessing the scope of the work. Project team members must offer no opinions concerning ideas that the tenderer may have about the method of doing the work.

Any proposals the tenderer may have must be evaluated at the tender

review stage and opinions as to merit withheld until then. General queries relating to work content that do not alter the design intent in any way need not be communicated to other tenderers. It must be assumed that tenderers have all understood the information provided in the same way.

6.3.6 Tender Returns Tenders must be received by the stipulated return date in order to be

considered for inclusion in the review process. Any tenders received after this time will not be considered. The tender may or may not be opened depending on the circumstances applying at the time, but wherever possible the tender will be returned to the contractor unopened.

Tenders must be returned in the envelopes provided at invitation.

Tenders received by post must be sent within a covering package which will be removed prior to tender opening. Any tender delivered by hand will be acknowledged by receipt if required.

Normally tenders should be returned at 10.00am on a normal working

day. This may be changed if circumstances dictate, but the return time and date must be when the office is open and staff present to receive tenders.

6.3.7 Tender Opening and Review All valid tenders will be opened at one sitting, in the presence of an

independent party (see Figure 6.1) and the information contained checked for completeness. The tender offer price will be recorded manually on a review form (Figure 6.2) and a note made of any



qualifications or omissions by the tenderer or any omissions in tender paperwork.

Very often information within a valid tender offer is incomplete or

unclear and in order to be sure that best value for money is obtained some checking and analysis is required. In these circumstances a choice may exist between 2 or more tenderers depending upon the outcome of the further analysis.

Once all valid tender offers have been recorded the project manager or

tender board will decide/discuss which of the tenders is appropriate to accept. If the decision is clear‐cut at this stage, i.e. there are no qualifications to consider, a recommendation for acceptance will be made at that point on the review form based solely on the best value for money for the University.

Should a price other than the lowest be recommended for acceptance

this must be approved both by the Director of Estates Operations and the client representative (if this is a rechargeable project) or senior user/ project board if University funded. The budget holder is to approve any Estates funded projects.

Further information may be required to clarify tender offers in order to

check validity of price, the tender review process is not complete until this information has been analysed.

It is permissible to seek clarification of tenders in terms of content, i.e.

to check what is specifically included in case tenderers prices are too low. Tenderers may not reduce their price at this stage to gain commercial advantage unless items have been included in error.

Once the tender review is complete any other invalid tenders may be

opened if desired. The completed tender review document will then be placed on project file.

After completion of the analysis process the tender review can then

normally be successfully completed, if necessary re‐convening the tender board for this purpose. If difficulties still remain then the Director of Estates Operations should be consulted.

6.3.8 Confirmation of Acceptance Upon successful completion of the tender review process the Project

Manager will then report to the “project corporate board” (where



existing) or Budget holder or Senior Surveyor ‐ Head of Capital Maintenance and Infrastructure, as appropriate. In the event that none of these people are available the matter should be referred to the Director of Estates Operations.

All contractors should be informed as quickly as possible, in writing, as

to the result of the tender review. If requested a list of offer prices can be released, without company names, to assist tenderers in future tendering exercises.

6.3.10 Single Tender Action In exceptional circumstances, for work valued at more than £40,000, it

can be acceptable to secure only a single tender for work. Approval must be sought, in writing, from the Director of Estates Operations in all such circumstances before giving a commitment to clients that this will be the case.

Among possible reasons for this course of action are: a. Timescales imposed by The University are such that the required

design and tender period is not possible. b. The work is of a very specialist nature such that only one known

company can perform the work, time available precluding further research.

c. The work is not capable of full specification and therefore pricing

develops as the work proceeds, e.g. a job comprising of significant exploratory work prior to confirmation of scope.

There may be other circumstances also which could lead to the

acceptance of a single tender being sought. These must be fully described and discussed with the Director of Estates Operations or in his absence Senior Surveyor ‐ Head of Capital Maintenance and Infrastructure prior to taking this action, all reasons and approvals must be recorded in the project file. Single Tender action for works on excess of £250,000 must be approved by the Bursar.

Even in single tender situations it is usually possible to demonstrate

some element of competitiveness and options for providing this must be included in he case for approval.

6.3.11 Competitive Quotations – Works Value less than £40,000 For work of value less than £40,000 it is still necessary to ensure that



keen pricing is secured to obtain good value for money before entering into any contract commitment.

This will mean requesting at least three written quotations for a

particular work item and comparing these in the same spirit as the full tender process. In this situation it is important to record all quotations in the project file along with any relevant analysis to indicate why a particular contractor was chosen.

The Project Manager responsible will need to determine the amount of

time worth spending on this exercise compared to the possible commercial gain. Obviously the lower the price is below the £40,000 upper limit then the lower is the nett gain to the University when taking into account the cost if our own staff time.

For emergency work of a value less than £5,000 it is permissible to

proceed on the basis of a single price only. However, whenever time allows a minimum of two quotes should be sought and recorded.



Figure 6.1 ‐ TENDER FORMULATION GUIDELINES

Estimated Value of Work

Standard Procedure

Minimum Size of

Tender List

Approval of Tender

List

Minimum Tender Period Allowed (Weeks)

Tender Opening Works Insurance Requirements

(See Procedure 7, Section 7.6)

Notes

Up to £5,000

Preferred 1 ‐2 Project Manager Less than 1 Project Manager

Less than £40,000

Preferred

3

Project Manager & Senior Surveyor ‐ Head of Capital Maintenance and Infrastructure

2

Project Manager &

witness *

Covered by block policy

*Another member of UoB Estates Office staff. See also requirements under single tender procedures

£40,000 to £500,000

Obligatory

3 ‐ 5

Project Manager & Senior Surveyor ‐ Head of Capital Maintenance and Infrastructure

3

Project Manager & Senior Surveyor ‐ Head of Capital Maintenance or

Director of Operations

Covered by block policy

EU tendering requirements may apply (services). Check with Procurement Office

£500,000 +

Obligatory

5

Max 6

Tender Board Chairman

Or Director of Operations

Plus Senior Surveyor – Head of Capital Maintenance and Infrastructure

4

Tender Board` (To include

representation from budget holder and stake holders as appropriate)

Covered by block policy up to £1m. Individual policy above

£1m

The Tender Board should meet on the day that tenders are received. Representative(s) of the budget holder should attend. + EU tendering requirements may also apply, check with Procurement Office.



Figure 6.2

TENDER REVIEW ‐ REPORT FORM

JOB/PROJECT NO: TITLE:

PROJECT MANAGER:

DATE: TIME:

Company Name Valid Tender Rec'd

Tender Forms

Completed

Tender Offer Witnessed By

Comments/Qualification Qualified Offer

Recommended for Acceptance

Y/N Date

1

2

3

4

5

*Approval of Recommendation

Approved by:

Date:

* Budget holder or Senior Surveyor ‐Head of Capital Maintenance & Infrastructure or Director of Operations or Project Corporate Board



APPENDIX 1

Page No UB/1 Invitation to Tender 2 UB/2 Instructions to tenderers for return of tenders 3 UB/3 Selective Tendering – Non Collusion Declaration 4 UB/4 Form of Tender 5 UB/5 Summary of Prices 6 UB/6 Alternatives 7 UB/7 Schedule of Work Sub‐Let 8 UB/8 Income Tax Liability 9 UB/9 VAT Estimate Form 10 UB/10 Dayworks and Extra Works 11 UB/11 Contribution, levy and tax fluctuations

(JCT Standard Contracts Only) 12



Dear Sirs SPECIFICATION NO: I enclose herewith the above Specification and associated documents and drawings and you are invited to submit your Tender for these works which should be received by this office not later than:‐ 10.00AM, on THURSDAY xxTH 2010 Please note that any further details in connection with these works should be obtained from Mr xxx xxx, Project Manager (or xxx) Tel Bristol 9289000 ext xxx, and that all documents and drawings must be returned under separate cover. Drawing No’s: Yours Faithfully Xxxx Xxx xxx Encs UB/1



UNIVERSITY OF BRISTOL

Instructions to tenderers for return of tenders:‐

1. Complete all forms enclosed for Tender and place in the envelope provided.

2. The tender must be returned in the endorsed tender envelope to the appointed Contract Administrator.

3. The tender envelope must not bear any mark or indication of the identity of the sender.

4. Late tenders will not be accepted and any such tender will be returned in due course.

5. No tenders or tender figures will be considered other than on the prescribed forms delivered in accordance with the foregoing instructions.

6. If any other documents are to be returned, e.g. drawings, specifications etc, they must be sent under separate cover and must not be enclosed with the tender.

7. The acceptance of the lowest or any tender or the nomination in the case of suppliers or subcontractors cannot be assumed and no payment will be made for tendering.

8. Please note that the Principles of “Code for Procedure for Single Stage Selective Tendering 1989” will be observed and that if examination of the priced Bills reveals any errors or discrepancies between these prices and the tender sum, then section 6.3, Alternative 1 of the Code shall normally apply.

9. The Contractor’s attention is drawn to the requirements stated in the preliminaries where there is a requirement to submit evidence of the existence of insurance for themselves or any sub‐contractor for the duration of the contract.

10. Tenders submitted by facsimile will not be accepted.

11. The VAT Estimate Form must be completed to be returned with the tender.

UB/2




SELECTIVE TENDERING – NON COLLUSION DECLARATION

TENDER FOR: RETURNABLE: 12 NOON The essence of selective tendering is that the client shall receive bona fide competitive tenders from all firms tendering. In recognition of this principle, we certify that this is a bona fide tender, intended to be competitive, and that we have not fixed or adjusted the amount of the tender by or in accordance with any agreement with any other person. We also certify that we have not done and we undertake that we will not at any time before the returnable date for this tender any of the following acts:‐

a. Communicate to a person other than the person calling for those tenders the amount or approximate amount of the proposed tender.

b. Enter into any agreement or arrangement with any other person that he shall refrain from tendering or as to the amount of any tender to be submitted.

c. Offer to pay or agree to pay or give any sum of money or valuable consideration directly or indirectly to any person for doing or having done or causing or having caused to be done in relation to any other tender or proposed tender for the said work any act or thing of the sort described above.

In the certificate the word ‘person’ includes any persons and any body or association, corporate or unincorporate; and ‘any agreement or arrangement’ includes any such transaction, formal or informal, and whether legally binding or not. Signed…………………………………………………. on behalf of…………………………………………. Date ……………………………………………………. UB/3

ALL PARTS OF THIS FORM MUST BE COMPLETED SPECIFICATION NO:




FORM OF TENDER RE: Sirs I/Wee have read the conditions of contract, specification and schedules deliver to me/us and having examined the drawings referred to therein and visited site, do hereby offer to execute and complete the whole of the works described for the sum of:‐ £ Works as Specified ………………………………………………………………………………………………………………………….. Specified PC Sums …………………………………………………………………………………………………………………………… Specified Provisional Sum ……………………………………………………………………………………………………………….. Specified Contingency …………………………………………………………………………………………………………………….. TOTAL OF TENDER £ (EXC VAT) We agree that the sum is a firm price Tender which shall not be affected by or adjusted in respect of any fluctuations in the price of Labour, Materials, Transport, Plant and the like and within the programme given in the conditions of contract and I/We undertake in the event of your acceptance to execute with you a form of contract embodying all the conditions and terms contained in this offer. We further agree that, where subdivided in specific section, this Tender may be accepted in whole or in part at the discretion of the University Surveyor. This tender shall be returned to the appointed Contract Administrator – University of Bristol on xxx 10.00am and shall be open for consideration for a period of not less than 12 weeks.

Dated this …………………………………day of …………………………………………………20……… Name of firm …………………………………………………………………………………………………….. Address ……………………………………………………………………………………………………………... Signature of Director ………………………………………………………………………………………….

THE EMPLOYERS DO NOT BIND THEMSELVES TO ACCEPT THE LOWEST OR ANY TENDER ALL PARTS OF THIS FORM MUST BE COMPLETED

UB/4




SUMMARY OF PRICES

ITEM DESCRIPTION £ P

Total cost carried to Form of Tender (Excluding VAT)

Signature ……………………………………………………………………………………… Status in Company ……………………………………………………………………….. For and on Behalf of ……………………………………………………………………… Address …………………………………………………………………………………………. Date ………………………………………………………………………………………………. UB/5




ALTERNATIVES

The Employer is prepared to consider Alternatives to the Materials and Manufacturers named in the Specification and to any Specialist named in the Specification. The Tenderer should state below the additional cost or saving to the Contract Sum that would result by the incorporation of such proposals.

Item Manufacturer of Alternative

Increase to Tender Price

Decrease to Tender Price

£ p £ p UB/6




SCHEDULE OF WORK SUB‐LET

The Tenderer shall complete below the name and address of the actual Sub Contractor to be employed for works sub‐let. ……………………………………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………….. NOTE: The above information must be completed at the time of tendering. Signature of Tenderer ……………………………………………………………………………….. Date ……………………………………………………………………………………………………………

ALL PARTS OF THIS FORM MUST BE COMPLETED

UB/7




Notice to Tenderers Finance (No 2) Act 1975 Income Tax: Subcontractors in the Construction Industry Regulation 1975 SI No 1960

1. Although the University of Bristol is not a ‘contractor’ under the Above Act, the University will observe the spirit of the Act.

2. Before the tender is accepted the tenderer will be required to provide the Employer with the evidence that the contractor is entitled to be paid without the statutory deduction unless it has already been produced in connection with another current contract with the University.

3. The University keeps a record of all the payments to contractors in similar form to that required under the Act for the information of the Inland Revenue.

4. Tenderers are reminded that contractors are required to check the Tax Certificates or certifying documents of sub‐contractors they employ (including any nominated sub‐contractors) and to deduct tax as necessary and to comply in all respects with the Act.

UB/8




VAT Estimate Form To: The University of Bristol We, the undersigned hereby give our provisional assessment of Value Added Tax payable on positively rated taxable supplies of goods and/or services chargeable to the University of Bristol.

Description of good and/or services

Value (tax exclusive)

£

Positively rated at

%

Tax £

Total carried forward to Form of Tender £

Signed ………………………………………………………………….. Date ………………………………………………………………….. on behalf of ……………………………………………………………………………………………………………………………………….. UB/9




DAYWORKS AND EXTRA WORKS

(a) The Contractor shall complete the following schedule and return it, together with the whole specification and his tender. Failure to do so may exclude the Contractor’s tender from consideration. i. Total percentage additions to costs of extra works and dayworks executed whilst the contract proceeds.

Labour ……………………………………………………………………… Materials …………………………………………………………………. Plant Haulage …………………………………………………………… Sub‐Contractors ………………………………………………………...

ii. Total percentage additions to cost of extra works and dayworks executed during the maintenance period of six months following practical completion. Labour ……………………………………………………………………… Materials …………………………………………………………………. Plant & Haulage ………………………………………………………. Sub‐Contractors ……………………………………………………….

iii. Total percentages added to PC sums. Profit …………………………………………………………………………. Attendance ……………………………………………………………….. Special Attendance where specified ………………………….

b. Charges and accounts for dayworks and extra work shall be made in accordance with the above mentioned percentages, added to the Contractor’s prime cost only, calculated in accordance with the “Definition of Prime Cost of Daywork carried out under a Building Contract” published by the Royal Institute of Chartered Surveyors and the National Federation of Building Trades Employers.

c. The Contractor shall submit to the Employer, or his authorised representative, vouchers specifying the time and materials expended on dayworks or extra works and be submitted not later than seven days after the expiry of the week in which the work was done. Signed …………………………………………………………………………..

For and on behalf of ……………………………………………………… ALL PARTS OF THIS FORM MUST BE COMPLETED Date ……………………………………………………………………

UB/10




Contribution, levy and tax fluctuations List of types and rates of duty and tax, referred to in Clause 38.2.1 of the Main Contract or Clause 35.2.1 of NSC/4, to be completed by the tenderer.

Materials, Goods, Electricity

Type and rate of And/or tax

Signed …………………………………………………………………… Date ………………………………………… on behalf of ………………………………………………………………………………………………………………… UB/11




ADDED VALUE SUBMISSION

PROJECT NO: ……………………………………….. TENDER DATE: ……………………… List below Papers submitted in response to Value assessment questions included in the tender documents plus any additional supporting evidence or material included for consideration in the tender evaluation process. LIST: CONTRACTOR: …………………………………………………………………………………………………………………………………. SIGNATURE: …………………………………… NAME: ………………………………………….. DATE: ………………………. UB/12

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