Transcript CONSTRUCTION REGISTERS SERVICE - Home

Implementing the CIDB
Standard for Uniformity in
Construction Procurement
3a
Aligning SCM processes to
facilitate implementation
development through partnership
Construction Industry Development Board
STANDARDIZED CONSTRUCTION
PROCUREMENT DOCUMENTS FOR
ENGINEERING AND CONSTRUCTION
WORKS
STANDARDIZED PROCUREMENT DOCUMENTS FOR
ENGINEERING AND CONSTRUCTION WORKS
NB Employers should develop their own
standardised procurement document using this
generic document as a base.
development through partnership
Construction Industry Development Board
A need triggers the
procurement process
Methods
Procedures
Policy
Provision of works,
services, supplies
concludes the
procurement process
Principal activities
associated with the
procurement process
1 Establish what is to be
procured
2 Decide on procurement
strategies
3 Solicit tender offers
4 Evaluate tender offers
5 Award contract
6 Administer contracts and
confirm compliance with
requirements
Components of
a procurement
system
Construction
Industry Development
Board
development through partnership
Outline of procurement process
1. Establish what is to be procured
•
Clarify what is to be procured
2. Decide on procurement strategies
•
Determine how the procurement is to take
place
3. Solicit tender offers
•
Solicit tender offers in terms of a set of
procedures
@cidb
development through partnership
Construction Industry Development Board
4. Evaluate tender offers
•
Evaluate tender offers in terms of
undertakings
and parameters established
in procurement documents.
5. Award contract
•
Enter into contract with the successful
tenderer.
6. Administer contract and confirm compliance
with requirements
•
Act in terms of the contract and confirm
that procurement is in accordance with all
requirements.
Register award and cancellation, if any
on cidb website
Construction Industry Development Board
development through partnership
Registers & Procurement Interactions
1. Determine approximate
contractor grading
requirements e.g 5 GB
1. Establish
what is
to be
procured
2. Determine
Procurement
strategy
2. Advertise using
iTender, indicating
approximate
contractor grading
requirements
3. Validate CIDB Registration
Reg Con
3. Solicit
tender
offers
3.a Tender
Offers by
contractors
4. Validate Contractor Grade
4. Tender
Evaluation
&
Contractor
selection
5. Award
contract
5. Register Award
Reg Proj
6. Manage
contractor
6. Register
Completion
(optional)
development through partnership
Construction Industry Development Board
Activity 1: Establish what is to be
procured
•
Prepare broad scope of work for
procurement
•
Estimate financial value of
proposed procurement
Control point : Obtain permission to start
with the procurement process
development through partnership
Construction Industry Development Board
Activity 2: Decide on procurement strategies
Establish applicable
•preferential procurement policy
What BEE goals are to
be pursued?
How are the risks, liabilities
and obligations of the
•contract and pricing strategy parties to be structured?
How is the contractor to be
paid?
•targeting strategy
•procurement procedure
What are the preferencing
arrangements?
What procedure is required to
solicit tender offers?
Control point: obtain approval for procurement strategies
that are to be adopted
Construction Industry Development Board
development through partnership
Choosing a procurement strategy is similar to
developing a business plan
In cases where procurement is routine and
occurs regularly, standard procedures can be
developed and used.
NB Procurement documents need to be aligned with
chosen procurement strategy
development through partnership
Construction Industry Development Board
Activity 3: Solicit tender offers
Control points
•
Prepare procurement documents
•
Invite contractors to submit
tender offers (or expressions of
interest) advertise on
•obtain
approval for
procurement
documents
•
Receive tender offers
(or expressions of interest)
•
Evaluate expressions of interests
•
Prepare evaluation report on
short listing process
•
Invite tender offers from short
list
Construction Industry Development Board
•confirm that
budget in
place
Procurement
procedure
Control point
: confirm
short-list
development through partnership
A procurement system may be considered to
be transparent if:
• the terms upon which the procurement
process are to be conducted and the
criteria upon which any decisions are to be
made are properly documented and made
widely available;
• the eventual procurement award decision,
and where appropriate, any intermediate
decisions, is made publicly available as are
the reasons given for these decisions; and
• it is possible to verify that the
documented procedures and criteria were
indeed applied.
development through partnership
Construction Industry Development Board
Standardised procurement documents
Example in CIDB
Tendering procedures
T1.1 Tender Notice and Invitation to Tender Standard for
Uniformity
T1.2 Tender Data CIDB Standard
Returnable documents conditions of tender
Examples in
T2.1 List of Returnable Documents
CIDB Standard
T2.2 Returnable Schedules
of Uniformity
Part 1: Agreements and contract data
C1.1 Offer and Acceptance
CIDB Standard of Uniformity
C1.2 Contract Data Standard Industry Form of Contract with
contract specific data
Part 2: Pricing data
C2.1 Pricing Instructions
Project specific
C2.2 Activity Schedule / Bill of Quantities
Part 3: C3 Scope of Work SANS 10403 (SANS 1921, SANS 2001 and
1914)
Part 4: C4 Site information
development through partnership
Project
specific
(SANS
Construction Industry
Development
Board
10403)
T1.1 Tender Notice and Invitation to Tender (sample)
Tenders are invited for the provision of . . . . . . .
The Employer is …………..
The physical address for collection of tender documents is: …………...
Documents may be collected during working hours after 09:00 on …..
A non-refundable tender deposit of R……payable by cheque made out
in favour of the Employer is required on collection of the tender
documents.
Queries relating to the issues of these documents may be
addressed to Mr/Ms . . . . ., Tel No. . . . . . . , Fax No. . . . . . . e mail . .
....
A compulsory pre tender meeting with representatives of the
Employer will take place at . . . . . . on . . . . .. starting at . . . . hrs.
The closing time for receipt of tenders is . . . . . . hrs on . . . . . . .
Requirements for sealing, addressing, delivery, opening and
assessment of tenders are stated in the Tender Data.
@cidb generates this notice
development through partnership
Construction Industry Development Board
T1.2 Tender Data
The conditions of tender are the Standard Conditions of
Tender as contained in Annex F of the CIDB Standard for
Uniformity in Construction Procurement.
The standard conditions of tender for procurements make
several references to the tender data for details that apply
specifically to this tender. The tender data shall have
precedence in the interpretation of any ambiguity or
inconsistency between it and the standard conditions of
tender.
Each item of data given below is cross-referenced to the
clause in the standard conditions of tender to which it mainly
applies.
Clause number
F.1.1
The employer is ………
development through partnership
Construction Industry Development Board
Annex F Standard conditions of tender
CIDB Standard for Uniformity in Construction
Procurement
1 General
•
•
•
•
Tender Documents
Interpretation
Communication and employer’s agent
The employer’s right to accept or reject any tender
offer
2 Tenderer’s obligations
Impacts on SCM
processes
3 Employer’s undertakings
NB Conditions facilitate compliance with several
requirements of MFMA - SCM Regulations
development through partnership
Construction Industry Development Board
Tenderer’s obligations
Eligibility
Check documents
Reference documents
Site visit and clarification meeting
Insurance
Alterations to documents
Submitting a tender offer
Closing time
Clarification of tender offer after
submission
Inspections, tests and analysis
Check final draft
documents
Cost of tendering
Confidentiality and
copyright of documents
Acknowledge addenda
Seek clarification
Pricing the tender offer
Alternative tenders
Information and data to
be completed in all
respects
Tender offer validity
Provide other material
Submit securities,
bonds, policies, etc.
Return of other tender
Certificates
development through partnership
Construction Industry Development Board
The Employer’s undertakings
Respond to clarification
Return late tender offers
Two-envelope system
Grounds for rejection and
Disqualification
Arithmetical errors
Evaluation of tender offers
Acceptance of tender offer
Prepare contract documents
Complete adjudicator's
contract
Issue Addenda
Opening of tender
submissions
Non-disclosure
Test for responsiveness
Clarification of a tender
offer
Insurance provided by
the employer
Notice to unsuccessful
tenderers
Issue final contract
Provide copies of the
contracts
development through partnership
Construction Industry Development Board
List of returnable documents
Returnable Schedules required for tender evaluation
purposes
Other documents required for tender evaluation purposes
Tax Clearance Certificate / Application for a Tax
Clearance Certificate
Returnable Schedules that will be incorporated into the
contract
Preference schedules
Other schedules and affidavits that will be incorporated
into the contract
development through partnership
Construction Industry Development Board
CIDB Standard for Uniformity in Construction
Procurement
Preferencing schedules
BEE
Annex D: Direct Preferencing
Annex E: Participation Goals
development through partnership
Construction Industry Development Board
Standard returnable documents
-Compulsory Enterprise Questionnaire
Requires tenderers to:

Provide name , VAT, Tax, Company and CIDB
registration numbers

Record involvement of principals in the service of
the state (current and within the last 12 months)

Record of spouses, children and parents in the
service of the state
NB Facilitates compliance with SCM Regulation 21 c) re
the compelling of tenderers to declare any conflict of
interest and provide certain particulars
development through partnership
Construction Industry Development Board
CIDB Standard for Uniformity in Construction
Procurement
C1.1 Form of offer and acceptance
1 Offer
Impacts on SCM
processes
2 Acceptance
Schedule of deviations
Note: Tenderer signs offer and employer signs acceptance to
form the contract.
The schedule of deviations records the items that have
changed between offer and acceptance
development through partnership
Construction Industry Development Board
Principles
1. The agreement comes into effect on the
date when the tenderer receives the signed
agreement (offer and acceptance), complete
with schedule of deviations.
2. The tenderer (now contractor) has a
specified number of working days from the
date of receipt of signed agreement to advise
the employer why he cannot accept the
contents of this agreement (eg schedule of
deviations does not reflect what was agreed)
, failing which agreement constitutes a
binding contract between the parties.
development through partnership
Construction Industry Development Board
On what date does the contract come into effect?
Option 1- tenderer
comes in and collects
signed contract
Option 2- employer submits
documentation to a courier-tocounter delivery / counter-tocounter delivery / door-to-counter
delivery /door-to-door delivery
/courier service
When tenderer
receives the
signed agreement
2 working days after the
employer submits the signed
agreement to the service
provider, provided that the
employer notifies the tenderer of
the tracking number within 24
hours of such submission
development through partnership
Construction Industry Development Board
C1.2 Contract Data
Example
The General Conditions of Contract for Construction Works
(2004) published by the South African Institution of Civil
Engineering, is applicable to this contract.
Copies of these conditions of contract may be obtained from
the South African Institution of Civil Engineering (tel 011-805
5947)
Part 1: Contract Data completed by the Employer
(see guidance on essential data and optional data provided in
GCC 2004)
Part 2: Contract Data completed by the Contractor
(see guidance on essential data and optional data provided in
GCC 2004)
development through partnership
Construction Industry Development Board
Part 2 :Pricing Data
Formulate around the pricing strategy that is
adopted, typically Bill of Quantities.
Other strategies include:
Activity schedules
Cost reimbursable
Target cost
Time-based contract
Retainer and / or contingency
contract
Percentage contract
Indefinite Delivery Contract
Note: The terms of payment and the provisions for
price adjustment for inflation, if applicable, are
established in the contract data.
development through partnership
Construction Industry Development Board
C2.1 Pricing Instructions
The method of measurement published by the South African Bureau
of Standards in clause 8 of the Standardised Specifications for
Civil Engineering Construction is applicable, subject to the
variations and amendments contained in the section “Applicable
SABS 1200 standardised specifications”.
Descriptions in the Schedule of Quantities are abbreviated and
comply generally with those in the Standardised Specifications.
Clause 8 of each Standardised Specification, read together with
the relevant clauses of the Scope of Work, set out what ancillary
or associated activities are included in the rates for the
operations specified. Should any requirements of the
measurement and payment clause of the applicable Standardised
Specification, or the Scope of Work, conflict with the terms of
the Schedule, the requirements of the Standardised
Specification or Scope of Work, as applicable, shall prevail.
development through partnership
Construction Industry Development Board
Bill of quantities
Item. Ref
Description
Unit
Quantity Rate
Price
Total for section carried forward to the summary of Bill
development through partnership
Construction Industry Development Board
The Scope of Work specifies and describes the
engineering and construction works which are to be
provided
and any other requirements and
constraints relating to the manner in which the
contract work is to be performed
e.g. 1. building will be occupied
during upgrading
2. Other contractors will be
on site simultaneously
development through partnership
Construction Industry Development Board
The Standard for Uniformity in Construction
Procurement (see clause 4.4.7) requires that
the scope of work shall, wherever possible be:
a)
b)
described in terms of performance
rather than the design or descriptive
characteristics, and
based on national or international
standards, where such exist.
e.g. the building shall maintain
an ambient day time temperature
of 20 to 24 degrees
development through partnership
Construction Industry Development Board
SANS 1921 family of standards for Construction
and Management Requirements
Construction
Works specifications
Plant and materials
Construction Equipment
Existing services
Site establishment
Site usage
Permits and way leaves
Alterations, additions, extensions and
modifications to existing works
Inspection of adjoining properties
Water for construction purposes
Survey control and setting out of the works
Management
Management of the works
Health and safety
Each part of
SANS 1921
standardizes
an aspect of
requirements
separation of
management from
construction
development through partnership
Construction Industry Development Board
SANS 1921 family of standards for Construction and
Management requirements for Works Contracts
Part 1 General engineering and construction works
Part 2 Accommodation of traffic on public roads
Part 3 Structural steelwork
Part 4 Third-party management support in works contracts
Part 5
Part 6
Earthworks activities which are to be performed by
hand
EPWP
HIV/AIDS Awareness
requirement
development through partnership
Construction Industry Development Board
SANS 2001 family of Construction Works Standards
Site clearance
Earthworks
Earthworks (small
Earthworks (pipe trenches)
Earthworks (small dams) works)
Gabions and pitching
Earthworks (roads,
Earthworks (railway
Structural aluminum work
subgrade)
sidings)
Piling
Concrete (small works)) Concrete (structural)
Precast concrete (structural)
Prestressed concrete
Installation of
Masonry walling
Foundations for masonry glazing in window
Cladding and sheeting
walls
and door frames
Fixing of roofs tiles and
Structural steel work
Structural steelwork
Sheeting
Corrosion protection of (sundry items)
Structural timberwork
structural steelwork
Timber flooring
Medium pressure pipelines
Bedding (pipes)
Cable ducts
Sewers
Stormwater drainage
Erf connections
Pipe jacking
Cement –mortar lining
(water)
Roads (general)
of pipes and pipelines
Subbase
Base
Bituminous surface
Asphalt base and
Segmented paving
treatment
surfacing
Kerbing and channeling
Ancillary roadworks
Base-heavy
Base (light pavement structure) Supply of crushed stone base pavement
Railway sidings (trackwork)
Cement plaster
structures
development through partnership
UnderIndustry
development
Construction
Development Board
Part 4 : Site Information
Describe the site and access to the site as at
the time of tender to enable the tenderer to
price his tender offer and to decide upon his
method of working and programming.
examples
1. report on founding conditions
2. Building will be occupied during
upgrading contract
NB Forms basis of claims if situation is
different from what is described.
development through partnership
Construction Industry Development Board
Activity 4: Evaluate tender offers
•
Open and record tender offers received
•
Determine whether or not tenders offers are
complete
•
Determine whether or not tender offers are
responsive
•
Evaluate tender submissions
•
Perform a risk analysis on preferred tenderer.
•
Prepare a tender evaluation report
Control point: Confirm recommendations
contained in the tender evaluation report.
Construction Industry Development Board
development through partnership
Standard Conditions of Tender: employer’s undertakings
Opening of tenders
•
Record particulars
-name of tenderer
-the total of prices
F.3.5.2
-preferences claimed
•
Make information available
to interested parties
Register contract
award
cidb website
development through partnership
Construction Industry Development Board
Standard Conditions of Tender: employer’s undertakings
Disqualify tenderer if corrupt or fraudulent
practices are detected
F.3.7
Links to Code of Conduct
development through partnership
Construction Industry Development Board
Standard Conditions of Tender: employer’s undertakings
Test for responsiveness
F.3.8
A responsive tender submission is one which
a)
satisfies the requirement of the tender data;
b)
has been properly and fully completed and signed; and
c)
conforms to all the terms, conditions, and specifications
of the procurement documents without material
deviation or qualification which, in the organization’s
opinion, would
-detrimentally affect the scope, quality, or
performance of the works, services or supply
identified in the scope of work,
-change the employer's or the tenderer's risks
SCM
and responsibilities under the contract, or
processes
-affect the competitive position of other
tenderers presenting responsive tenders,
if it were to be rectified.
development through partnership
Construction Industry Development Board
Standard Conditions of Tender: employer’s undertakings
F.3.9
Arithmetical errors
Check responsive tender offers for arithmetical errors,
correcting them in the following manner:
•Amount in words govern.
•In a bill of quantities (or schedule of quantities or schedule
of rates) the line total applies and the rate shall be
corrected. Where there is an obviously gross misplacement of
the decimal point in the unit rate, the unit rate will be
corrected.
•The total of the prices applies and the tenderer will be
asked to revise selected item prices (and their rates if a bill
of quantities applies) to achieve the tendered
total of the prices.
SCM
processes
development through partnership
Construction Industry Development Board
SCM
processes
Ranking and scoring of responsive tenderers
Do so in terms of method nominated in Tender
Data
F.3.11
development through partnership
Construction Industry Development Board
Method 1: Financial offer
e.g. emergency
1)
Rank tender offers from the most favourable to
the least favourable comparative offer.
2)
Recommend highest ranked tenderer for the
award of the contract, unless there are compelling and
justifiable reasons not to do so.
development through partnership
Construction Industry Development Board
Method 2:
Financial offer and preferences
1)
Score tender evaluation points for financial
offer.
2)
Confirm that tenderers are eligible for the
preferences claimed and if so, score tender
evaluation points for preferencing
3)
Calculate total tender evaluation points.
4)
Rank tender offers from the highest number
of tender evaluation points to the lowest.
5)
Recommend tenderer with the highest number
of tender evaluation points for the award of the
contract, unless there are compelling and justifiable
reasons not to do so.
development through partnership
Construction Industry Development Board
Method 3:
Financial offer and quality
(when appropriate)
1)
Score quality, reject all tender offers that fail
to score the minimum number of points for quality
stated in the Tender data, if any.
2)
Score tender evaluation points for financial
offer.
3)
Calculate total tender evaluation points.
4)
Rank tender offers from the highest number of
tender evaluation points to the lowest.
5)
Recommend tenderer with the highest number
of tender evaluation points for the award of the
contract, , unless there are compelling and justifiable
reasons not to do so.
development through partnership
Construction Industry Development Board
Method 4: Financial offer, quality
and preferences
1)
Score quality, reject all tender offers that fail to
score the minimum number of points for quality stated in
the Tender data, if any.
2)
Score tender evaluation points for financial offer.
3)
Confirm that tenderers are eligible for the
preferences claimed, and if so, score tender evaluation
points for preferencing.
4)
Calculate total tender evaluation points.
5)
Rank tender offers from the highest number of
tender evaluation points to the lowest.
6)
Recommend tenderer with the highest number of
tender evaluation points for the award of the contract.
development through partnership
Construction Industry Development Board
Pm = comparative
offer of the most
favourable
Highest price (or discount)
(1 
( P  Pm )
Pm
)
P = comparative
offer of the
offer being
scored
Lowest price (or percentage commission/fee)
(1 
( P  Pm )
Pm
)
F.3.11.2
development through partnership
Construction Industry Development Board
Scoring price and preference
Ps
=
Where
Ps
=
Pt
=
Pmin =
80 (1- (Pt – Pmin))
Pmin
or 90
depending upon
the value
Points scored for financial offer of tender under
consideration
Rand value of financial offer under consideration
Rand value of lowest acceptable financial offer
Total points
= Points for financial offer + points for preference
development through partnership
Construction Industry Development Board
Scoring financial offer, quality and preference
Quality score
score for quality (Sq) using the following formula:
Sq = W2 x So/Ms
where
W2 is the percentage score given to quality (remainder
allocated to financial offer eg 60% quality and 40% to
financial offer)
So is the score for quality allocated to the submission under
consideration
Ms is the maximum possible score for quality in respect of a
submission
development through partnership
Construction Industry Development Board
Financial offer
Score financial offer using the following formula:
Ss
Ss
=
=
Pmin =
Pt
=
W3
=
Pmin X W3
Pt
or
(1- (Pt – Pmin)) X W3
Pmin
Where
the percentage scored for price of the tender
submission under consideration;
the lowest acceptable tender submission
the price of the tender submission under
consideration
percentage allocated for price
Note: negative numbers result
if Pt > 2 x P min
development through partnership
Construction Industry Development Board
Preferential Procurement Policy Framework Act
Act does not make reference to functionality. The
regulations, however, do. The Act only provides for
tender price + preference.
•
Total points not equal to price + quality +
preference
•
Total points equals tender price (combination of
points for quality and financial offer) +
preference
development through partnership
Construction Industry Development Board
Combine quality and financial offer
The score for quality and financial offer is to be combined,
before the addition of the score for preference, as
follows:
WC = W3 x (1+(S-Sm))
Sm
Standard method
Where
W3 is the number of tender evaluation points for quality
and financial offer and equals 80 / 90
S is the sum of score for quality and financial offer of the
submission under consideration
Sm is sum of the score for quality and financial offer of
the submission scoring the highest number of points
development through partnership
Construction Industry Development Board
Risk analysis
Does any of the following present an unacceptable
commercial risk?:
a) unduly high or unduly low tendered rates or amounts in
the tender offer;
b) contract data provided by the tenderer; or
c) the content of tender returnables which are to be
included in the contract.
If so overlook tenderer (justifiable reason)
development through partnership
Construction Industry Development Board
Tenderers (reasons for not awarding):
•
•
•
•
•
•
may not be subject to restrictions eg listed on
Register of Tender Defaulters
must have the capability and capacity to
perform the contract.
must have legal capacity to enter into the
contract.
must be solvent
must satisfy all legal requirements, eg no tax
clearance.
may be disqualified due to conflicts of interest.
development through partnership
Construction Industry Development Board
Tender evaluation report
Prepare report as per employer’s requirements
Remember that written reasons must be given
for decisions taken. State reasons for
rejecting a tender so that tender evaluation
committee can confirm / overturn decisions.
development through partnership
Construction Industry Development Board
Activity 5: Award contract
•
Notify successful tenderer
and unsuccessful tenderers of
outcome
•
Compile contract document
•
Capture contract award data
Contract
concluded
Control point:
formally accept
tender offer
Suitable point for capturing
of data pertaining to the
procurement
development through partnership
Construction Industry Development Board
CIDB Standard for Uniformity in Construction
Procurement
Form of offer and acceptance
1 Offer
Employer signs
acceptance
portion
2 Acceptance
Schedule of deviations
Note: Tenderer signs offer and employer signs acceptance to
form the contract.
The schedule of deviations records the items that have
changed between offer and acceptance
development through partnership
Construction Industry Development Board
Register of projects
(deemed to satisfy provisions)
Register contract
Award
cidb website
development through partnership
Construction Industry Development Board
Activity 6: Administer contracts
and confirm compliance with
requirements
•
•
Administer contract in
accordance with the terms and
provisions of
the contract
Register
cancellation
of contract
Ensure compliance with
requirements
cidb website
Control point: capture contract completion /
termination data
development through partnership
Construction Industry Development Board
Contact persons
Please contact the following people at the CIDB
for:
Procurement related issues
 Nomaphoso Mkhonza
 Lerato Molefe
Contractor Registration issues:
 Wisane Maluleke
 Busang Tjale
Tel: 0860 10 33 53
development through partnership
Construction Industry Development Board
Thank You
development through partnership
Construction Industry Development Board