This practice guide provides guidance on the evaluation of tenders in accordance with the provisions of the cidb Standard for Uniformity in Construction Procurement respect of the seven steps identified in Practice Guide A1 associated with this activity. It also contains proforma forms to evaluate tender offers and an example of a tender evaluation report.
This practice guide defines quality within the procurement context and reviews the requirements for evaluating quality in the accordance with regulatory requirements and the provisions of the cidb Standard for Uniformity in Construction Procurement for the evaluation of quality. It furthermore provides practical guidelines on the awarding of preferences for quality, pre-qualification on the basis of quality and the scoring of tender submissions in terms of quality and price or quality, price and preference.
This Practice Note sets out the manner in which tender offers are to be evaluated in accordance with Standard Conditions of Tender when using a competitive selection procedure.
Tender submissions may be evaluated in terms of price alone, price and preference, price and quality or price, quality and preference. The introduction of quality into the evaluation of tenders, although introducing a number of complexities into the evaluation of tender submissions, enables the most favourable offer to be established, where objective criteria other than price and preference need to be evaluated. This practice note provides an overview of the manner in which quality may be evaluated in tender submissions, identifies the circumstances under which quality should be evaluated and provides a practical procedure to do so.
Tendering is a multi-step procedure to select a suitable contractor or service provider for a project. By law, all public entities globally must follow open tendering to avoid fraud, unethical practices, waste or nepotism. The construction industry is regulated by the Construction Industry Development Board (cidb) and its guidelines. These standards provide guidance on the correct procedures for inviting tenders, evaluating submissions and managing infrastructure projects.
For contractors, responding to tenders is expensive in both time and resources. Unfortunately, public sector clients often cancel tenders at different stages of the project cycle without considering the impact on small contractors.
This practice has negative consequences for contractors and can impact service delivery where providers fail to respond to tenders by clients who are prone to cancellations. It may also fuel corruption, and undermines industry confidence when communities fail to receive their planned infrastructure on time, leading to community unrest and destruction of infrastructure.
The nature, causes and impacts on the South African Construction Industry study investigates tender cancellations to unearth their causes and impact on different stakeholders of public projects.