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MERIT POINTS AND WEIGHTED RANKING

An analytical approach in the tender assessment is by merit point system applied to all factorsconsidered important to the performance of the project

The tenders are weighted in order of their relative importance. The factors are rated on a predetermined scale and total rated scores are calculated. The submitted tenders are then examined critically against these set of values.

MERIT POINT SYSTEM

Max points

A. Tender figure 50B. Completion time 10C. Presentation of tender documents 5D. Personnel and staff holding 10E. Background, experience and workload 10F. Plant and equipment 10G. List of basic prices (labour & materials) 5

Total 100

RATES AND WEIGHTED RANKING

Tender A Tender B

Technical evaluation

Head office support 5 8

Programming 8 6

Innovation in construction 7 6

Materials handling approach 5 6

Quality of management system 5 8

Quality of site supervision 7 8

Sub total 37 42

Commercial evaluation

Tender price 9 6

Financial status 8 6

Availability of resources 7 7

Market Share 7 8

Staff training 8 6

Professional reputation 8 6Risk management plan 4 6

Sub total 51 45

Total rating 88 87

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Then, the technical and commercial scores are totaled for each tenderer and a ranking order

established. Set the weights between technical and commercial evaluation to a 40:60 ration.

Technical evaluation (40%) 14.8 16.8

Commercial evaluation (60%) 30.6 27

The final rating 45.4 43.8

RECOMMENDATIONS TO THE EMPLOYER

The purpose of tender report is to enable the client to decide whether to accept any of thetenders.

The scope and detail of the report will vary according to the circumstances. The report on tenders must be careful to present a balanced view, and not over or understate

the case for any tenderer. It is important not to mix fact and opinion. The facts and evidence should form one statement; any comment should form a separate

statement.

Features of the statement:

All the tenders received; the name of the tenderer, the tender sum, whether valid (duecompliance) and qualifying conditions

A summary of the examination and analysis of each tender, or say, of the three or four lowesttenders.

Proposed programme and construction techniques and reasons for considering any of theseunsatisfactory.

Comments on any rates that appear exceptionally high or low, and forecasts of the possibleeffects on the contract price in cases where there are large differences.

Comparison of the recommended tender sum with the consultants estimate. Recommendation of the most acceptable tender. Recommendations for dealing with any qualifications in the recommended tender prior to

acceptance.

PROCEDURE FOR ACCEPTING TENDER / NOTIFICATION OF RESULTS

A tender needs to be accepted within a reasonable time of its submission, otherwise acontractor may have grounds for withdrawing it.

Sometimes the employer stipulates for how long tenders are remain open for acceptance, or atenderer may state this in his offer.

Delaying in accepting the offer may put a contractor in a difficult position such as rising the costsof the project.

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