Construction Planning and Management
Tender Forms Contract Forms
Contents
CONTENTS TENDER FORMS TENDER FORMS IN BUILDING AND CONSTRUCTION ACTS ON TENDERING IN CONSTRUCTION AB92, general conditions of work and supply in building and construction work ABT93, general conditions of turnkey contracts TENDER FORMS TABLE OF TENDER FORMS GENERAL RULES OTHER TENDER FORMS (WHICH WILL NOT BE DEALT WITH HERE) EXCLUSION FROM TENDER CRITERIA OTHER NOTES GENERAL EU REGULATIONS TABLE OF CONTRACT FORMS ORGANISATION DIAGRAMS FOR CONTRACTS SPECIALIST CONTRACT: CONSTRUCTION CONTRACT: PRINCIPAL CONTRACT: TURNKEY CONTRACT: 1 2 2 2 2 2 2 3 5 5 5 5 5 6 7 8 8 8 8 8
Construction Planning and Management
Rev. 19.01.2011 / dmjJLV
Tender Forms
Tender Forms in Building and Construction When choosing tender form and contract form, the counsellors and the building owner determine how the construction project in broad outline shall be managed and the structure and detail of the tender documents. Private construction projects are not bound to follow the open procedures as they may choose either to go directly to a certain counsellor or construction contractor of their own choice or to comply with public rules. It is therefore important to differentiate between private and public construction projects. The EU basically determines that public authorities must use standardised and open procedures and treat tenderers equally when public contracts are allocated. This applies irrespective of the EU directives.
Acts on tendering in construction The Danish Act on Tender Procedures for Public Works Contracts No. 338 of 18 May Circular on price and time as regards building and construction work etc. No. 174 of 10 October 1991. AB92, general conditions of work and supply in building and construction work ABT93, general conditions of turnkey contracts Important links concerning tendering rules: [Link] [Link] [Link] On the following pages you will find some user-friendly checklists which may help you through the general regulations of the different tender forms. Note that some regulations only apply to EU tender documents.
Below you will find a simplified schematic outline of the different tender forms. The table may be used to form an idea of which tender form you may choose for your project. The regulations must be controlled at every tender.
Tender Forms Public Tendering Restricted Tendering Confidential tender Negotiated procedure Design contests
C:\Documents and Settings\Administrator\Desktop\Dokumenter\7. semester\The Company\Tender_Forms_Contract_Forms.doc
Side 2 af 8
Construction Planning and Management
Rev. 19.01.2011 / dmjJLV
Table of Tender Forms
Public Tendering Contracting parties Restricted Tendering with prequalification Restricted Tendering without prequalification. Invited tendering Building owner/ consultans and turnkey contractors The number of invited tenderers is usually between 5-20. (5-7) There must be at least one non-local tenderer. Confidential tender
Building owner/ Consultans
Building owner/ local councillors and principal/ turnkey contractors
Number of tenderers, applicants
Unlimited
Unlimited number of applicants Number of selected applicants 5-20 (5-7) who fulfilled the award criteria must be announced
Contact to tenderers Award criteria: The economically most advantageous tender Award criteria: The lowest tender
Notice of Tender To be announced in the local and national press It must be stated how the criteria will be weighted. If that is not possible a prioritized order must be stated. Negotiations are not permitted Contractor with the lowest price gets the job
Maximum 3 tenders. However it is possible to invite a fourth confidential tender if the awarding authority has reserved this right in the invitation to submit tenders and the fourth tender is invited from outside the local area. Direct invitation to the tenderers
Negotiation is permitted
C:\Documents and Settings\Administrator\Desktop\Dokumenter\7. semester\The Company\Tender_Forms_Contract_Forms.doc
Side 3 af 8
Construction Planning and Management
Rev. 19.01.2011 / dmjJLV
Public Tendering Form of bid Rejection of bid Annulment (cancellation) of the Tendering Attendance of tenderer Notifying the tenderer
Restricted Tendering with prequalification In writing only
Restricted Tendering without prequalification. Invited tendering
Confidential tender
By word of mouth / written
Yes, it is possible - a reason must be given. Yes The tenderer is permitted to be present when the bids are opened. They must also have access to the amounts bid and their reservations. As fast as possible, and with the decision of whom won the Tendering and why? 15 days to respond to the advert A tender must be submitted 15 days from the tender day National tendering below DKK 44 million / DKK 7,4 million partial work Public opening of tenders is not a requirement As soon as possible and with the decision of the placement of the contract Only below DKK 3 million / DKK 500,000 partial work
Deadlines in DK. Main project Eu directives state that Before a project can be put out to tender the `Threshold limit must be announced EU directives define minimum deadlines
52 days to submit a tender
37 days to respond to the advert. 40 days to submit a tender
40 days to submit a tender
C:\Documents and Settings\Administrator\Desktop\Dokumenter\7. semester\The Company\Tender_Forms_Contract_Forms.doc
Side 4 af 8
Construction Planning and Management
Rev. 19.01.2011 / dmjJLV
General rules In Denmark the tenderer is entitled to attend the opening of tenders. There must be at least 40 days from the acceptance of the tender to the project commencement. Projects below DKK 400,000 are exempted from the above deadlines. Replies will be sent as quickly as possible after the tender.
Other tender forms (which will not be dealt with here) Design contests: In connection with large construction projects, architect assignments, or IT projects. The tenderer takes part in the formulation of the tender. A selection board will be appointed. There is no obligation to enter into a contract. The local authority is entitled to negotiate the tender. Is only permitted if no qualified tenders appear after public or private tender. In the case of monopolistic conditions
Negotiated procedure:
Exclusion from tender Reasons for exclusion: The The The The tenderer tenderer tenderer tenderer is legally incapable is in suspension of payments is convicted of a criminal offence guilty of negligence
Criteria Lowest tender The lowest price is given the highest priority according to the tender documents. The tender cannot be negotiated subsequently. The tenderer is entitled to review his tender before the acceptance if there is a substantial price difference between the lowest and the second lowest tender.
Economically most advantageous tender
When the contract is awarded in consideration of price, quality, construction time, revenue expenditure, profitability, technical value, environment, architecture and function. The way of prioritising the criteria must be announced. Concrete choices of tenders must be announced and the reason for choosing them must be stated. The procedure for the negotiations must be announced before the negotiations start. The task and criteria cannot be changed in the course of the project.
Other notes Keeping the tender open: According to AB92 the contractor must keep the tender open for 20 days. According to the Act on Tender Procedure for Public Works Contract the tender must be open for at least 40 days Bid rigging The tenderers are introduced to each other in order to give them the opportunity of making agreements in relation to tenders.
C:\Documents and Settings\Administrator\Desktop\Dokumenter\7. semester\The Company\Tender_Forms_Contract_Forms.doc
Side 5 af 8
Construction Planning and Management
Rev. 19.01.2011 / dmjJLV
General EU regulations Corrective statements will be sent at least six days before submitting a tender according to EU procedure. Restricted procedure according to accelerated procedure: An accelerated procedure may be used if it has been published in the Official Journal of the European Communities that submission of a tender in the form of a periodical indicative tender notice at the beginning of each year will be expected in the course of the coming year.
C:\Documents and Settings\Administrator\Desktop\Dokumenter\7. semester\The Company\Tender_Forms_Contract_Forms.doc
Side 6 af 8
Construction Planning and Management
Rev. 19.01.2011 / dmjJLV
Table of Contract Forms
A contract form for each project must be determined. Which contract form is most suitable for the project in question? Procedure for building and construction works according to the Danish Act on Invitation of Tenders in Construction and Civil Works.
The building owner has entered into a contract with
Individual Trade contract Each Individual Trade contractor and the consultant of the project.
Trade contract Each Trade contractor and the consultant of the project The Trade contractor has made a contract with several of the Individual Trade contractors. Each Trade contractor reports to the building management who reports to the building owner.
Main contract The Main contractor and the consultant of the project. The Main contractor has made a contract with all individual trade contractors. The Main contractor reports to the building management who reports to the building owner. The Main contractor is responsible for the building management and the building management is therefore included in the tender price. The Main contractor and the expert supervision
Turnkey contract The turnkey contractor. The turnkey contractor has made a contract with all specialist contractors and the project planners.
Organisation
The building management
Participants at building meetings Tender form Implementation/ tender documents
Each Individual Trade contractor reports to the building management who reports to the building owner. The building The building management, who comanagement, who coordinates the ordinates the Individual Trade construction contracts, is contracts, is not not included in the included in the tender tender price. price. All contractors and the expert supervision
The turnkey contractor has the building management and reports to the building owner. Project planners and individual trade contractors report to the turnkey contractor. The turnkey contractor is responsible for the building management and the building management is therefore included in the tender price.
Public or restricted procedure Made by the consultant and paid as a separate fee
The turnkey contractor and counsellors of the building owner if required Restricted procedure Made by counsellors in cooperation with project implementers. Included in the total tender amount and contract. Side
C:\Documents and Settings\Administrator\Desktop\Dokumenter\7. semester\The Company\Tender_Forms_Contract_Forms.doc
7 af 8
Construction Planning and Management
Rev. 19.01.2011 / dmjJLV
Organisation Diagrams for Contracts
Individual Trade contract: Building owner / Consultant Individual Trade cont Individual Trade cont Individual Trade cont Trade contract: Turnkey contract: Building owner/Co unsellor
Consultant
Main contract: Building owner/Co unsellor Individual Trade cont Individual Trade cont
Individual Trade cont contractor
Main contractor
Individual Trade cont
Individual Trade cont
Individual Trade cont
Building owner
Turnkey contractor
Trade contractor
Trade contractor Individual Trade cont Individual Trade cont Individual Trade cont
Trade contractor
Trade contractor
Supplier
C:\Documents and Settings\Administrator\Desktop\Dokumenter\7. semester\The Company\Tender_Forms_Contract_Forms.doc
Side
8 af 8
