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Evaluation of Tenders:
Examination of Lowest Tender:
- Once the lowest tender has been identified, the PQS will proceed to look at it in detail.
- When examining, he will look for errors, anomalies or peculiarities, which make it unwise for the client to
enter into a contractual relationship with the tenderer.
- However, it should be made clear to tenderers, when tendering that the client does not bind himself to
accept the lowest or any tender.
- But contractors naturally expect that there will be sound reasons for rejecting the lowest tender.
- Therefore the PQS must be able to provide those reasons in the event of the lowest tender not being
accepted.
(In Sri Lanka Evaluation of government tenders are done according to Government Procurement
Guidelines - 2006 published by Ministry of Finance & Planning).
- Why examine the tender in detail?
1. It is because any errors in the bills of quantities / schedules of rates should be identified and
satisfactorily dealt with.
2. Otherwise, problems will almost certainly arise during the course of the contract and during the
settlement of the final account.
3. To reveal whether an arithmetical error has occurred of such a magnitude that;
It would not be wise to hold the contractor to the tender sum because he would then be
working at a much-reduced profit.
If such an error were in contractors favor, then it would be unfair to the client to have to pay
more than the job was worth.
- The things PQS will look for when examining tenders will be following kinds.
o Arithmetical errors - occur in item extension
e.g. a) multiplication errors quantity x rate
b) errors in addition
c) when transferring page totals to next page / to summaries.
o Pricing errors these are patent errors not matters of opinion as to whether a rate is high or low.
e.g. a) a patent error occurs where, in the transition from cube to superficial forms or vice versa.
b) By an oversight, an item may not have been priced at all.
c) Identical items in different sections of the bills may have been priced differently.
o Pricing methods
e.g. a) sometimes a tenderer will not price most, or any of the preliminaries, there value being
included in some or all of the measured rates.
b) some contractors may price all the measured items at net rates i.e. exclusive of any profit
and overheads, and showing that as a lump sum on the general summary.
c) a contractor may price those sections, which will largely be completed at early months at
inflated rates, balancing these with low rates in the finishing sections. (Front Loading).
o Basic price list
The contract provisions may require the contractor to submit a list of basic prices of
materials upon which his tender is based. This will be used in order to adjust the contract
sum for any fluctuations in the costs of materials during the contact period / or to price any
variations.
The list should be scrutinized to ensure that the prices quoted are the current market
prices, including delivery to the site.
- Correction of errors
o Errors should be corrected as follows:
Where there is a discrepancy between the amounts in figures and in words, the amount in
words will govern.
Where there is a discrepancy between the unit rate and the line item total resulting from
multiplying the unit rate by the quantity,
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