UNIVERSITI MALAYSIA SABAH

KA 21102
ATURCARAAN KONTRAK DAN TAKSIRAN
Part 4:
BID AND AWARD PROCESS
ANIDAH HARTINI AG. SAID

BID AND AWARD PROCESS

CONTENTS
1.Introduction
2.Categories of Bidding
3.Bid And Award Process
-

Invitation to Bid
Distribution of Bid Document
Submission of Bid Document
Opening and Accepting Bid Document
Evaluation of Bid Document
Award of Contract
Contract Documentation

BID AND AWARD PROCESS

Bid Bidaan, Tawaran, Percubaan
Categories of Project:
1. Supply stationaries, rubbish bin, cartridge, books
2. Services cleaning, grass cutting, maintenance
3. Works construction: building, civil, M&E,
landscaping
Construction bidding is the process of submitting a
proposal (tender) to undertake, or manage the
undertaking of a construction project.
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BID AND AWARD PROCESS

The bid process for both Government and Private
projects are similar. But for government project, the
procedure are more details compare to private.
Jabatan Kerja Raya and
Kementerian Kewangan Malaysia
are the agency in charge on
creating and updating the
procedure from time to time.

BID AND AWARD PROCESS

Figure 1 Bid and Award Process

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BID AND AWARD PROCESS

Categories of Bidding
1.Tender - Tawaran
for project limit above RM500,000.00
Invitation/call tender not less than 21 days
Advertise in notice board and/or news paper/website
2.Quotation Sebut Harga
for project limit above RM20,000.00 and below
RM500,000.00
Invitation/call tender not less than 7 days
Advertise in notice board and/or news paper/website
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BID AND AWARD PROCESS

Invitation to Bid
When a company or organization provides detailed
project specifications and allows contractors to send in
their proposals indicating how much the project will cost to
complete.
Categories of Invitation:
1.Put up in Notice Board
2.Advertise at least 2 local news paper (malay & english)
3.Letter of Invitation for negotiated tender
4.Website e.g. http://www.tenderdirect.com.my
https://www.eperolehan.com.my
http://www.kkr.gov.my/tender/notice
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BID AND AWARD PROCESS

Notice of Bid
Clients Name and Address
Project Title
Period of Invitation
Registration of Contractor (Class, Head, Sub Head)
Project Briefing and Site Visit
Closing Date/Time 12.00 noon (10.00am for sabah
state)
Submission

Invitation to Bid Tender Notice Board

BID AND AWARD PROCESS

Invitation to Bid

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BID AND AWARD PROCESS

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BID AND AWARD PROCESS

Invitation to Bid - web site

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BID AND AWARD PROCESS

Kelas

Nilai Projek (RM)

Melebihi 10,000,000

5,000,001 hingga 10,000,000

2,000,001 hingga 5,000,000

500,001 hingga 2,000,000

200,001 hingga 500,000

Sehingga 200,000

Table 1 Class of Contractor (General) - PKK

Surat Pekeliling Perbendaharaan Bil. 14 Tahun 2002
Buku Panduan Awam PKK.doc
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BID AND AWARD PROCESS

Kelas

Nilai Projek (RM)

Melebihi 200,000

II

5,000,001 hingga 10,000,000

III

Sehingga 500,000

IV

Sehingga 200,000

Table 2 Class of Contractor (Electric) - PKK

Surat Pekeliling Perbendaharaan Bil. 6 Tahun 2007
Panduan Elektrik.pdf

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BID AND AWARD PROCESS

Kelas

Nilai Projek (RM)

Melebihi 5,000,000

2,000,001 hingga 5,000,000

750,001 hingga 2,000,000

350,001 hingga 750,000

150,001 hingga 350,000

Sehingga 150,000

Table 3 Class of Contractor (General) - PUKONSA

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BID AND AWARD PROCESS

Kelas

Nilai Projek (RM)

G7

Tiada had

G6

Tidak melebihi RM10,000,000

G5

Tidak melebihi RM5,000,000

G4

Tidak melebihi RM3,000,000

G3

Tidak melebihi RM1,000,000

G2

Tidak melebihi RM500,000

G1

Tidak melebihi 100,000

Table 4 Class of Contractor (General) - CIDB

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BID AND AWARD PROCESS

Distribution of Bid Document
Selling of Bid (Tender/Quotation) Document
Tender Documentation fee is a non-refundable. Normally
the price will be based on the document pages.
Tender Table Document copy of document for contractor
viewing similar to tender document.
The contractor must ensure the completeness of the
tender document upon receipt.
Tenderers must bear all the costs associated with the
preparation and submission of their bid and any further
costs incurred prior to award of contract.
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BID AND AWARD PROCESS

Distribution of Bid Document
Contractor must present their original documents when
purchasing the bid document:
Registration Certificate with PKK/PUKONSA and CIDB
Project Briefing and Site Visit attendance form
Letter of Authorise to collect tender document if the person
not the licence owner
Letter of Special Exemption (Surat Kebenaran Khas) from
PKK/PUKONSA for contractor who their licence did not suite the
class/head/sub head offered.
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BID AND AWARD PROCESS

Submission of Bid Document
The original tender, together with any copies as specified
in the Tender Document, must be securely sealed in an
envelope and sent to the person named in the notice of
tender.
It is the tenderers responsibility to ensure that their
tender is delivered by the date and time of the deadline for
the receipt of tenders. Client does not undertake to
consider tenders received after the deadline unless clear
evidence of despatch is available.
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Submission of Bid Document

Bidding Documents - Tender

Part A: Information of Tender & Contract
1. Notice of Tender
2. Instructions To Tenderer
3. Form of Tender
4. Condition of Tendering
5. Form of Contract - including Articles of Agreement, Appendix to
Conditions of Contract, Addendum to Conditions of Contract

6. Letter of Acceptance of Tender - Specimen

7. Form of Bank Guarantee - Specimen

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Submission of Bid Document

Bidding Documents - Tender

Part B: Project Specification

1. Specification
2. Summary of Tender
3. Bill of Quantities

Part C: Appendices

1. Schedule of Rates
2. Contractors Background
3. Tender Drawings
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Submission of Bid Document

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BID AND AWARD PROCESS

Opening & Accepting Bid Document
Tender processes must be undertaken in an open and
transparent way.
No tender received after the time and date specified for
its opening shall be accepted or considered by the Council
unless the relevant Officer/Manager is satisfied that there
is sufficient evidence of the tender having been dispatched
in time for it to have arrived before the closing date and
time, or other exceptional circumstances apply, and the
other tenders have not been opened.
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BID AND AWARD PROCESS

Opening & Accepting Bid Document
Tender will be opened by the Tender Opening Committee
appoint by the head of an organisation or company.
For government project, a tender opening committee
comprising senior government officials opens and records
the bids in a register.
Project committee signed all the documents concerning
the tenders.
Jadual Pembukaan Tender.pdf

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Opening & Accepting Bid Document

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Opening & Accepting Bid Document

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BID AND AWARD PROCESS

Evaluation of Bid Document
Normally tender evaluation report done by the Q.S.
For M&E project, the tender evaluation report done by the
engineer itself.
Tender validity period: 90/120 days
Evaluation Criteria based on JKR & MOF guidelines:
Stage 1- Completeness of Tender Document
Stage 2 - Bidding Price, Tenderers Background (Technical Staff,
Financial, Experience, Plant & Machineries)

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BID AND AWARD PROCESS

Evaluation of Bid Document
List and record tenders ensuring confidentially of tender
submissions and manage documentation security
Assess tenders for conformance with tender requirements
and reject late or non-conforming tenders
Apply key selection criteria and agreed weightings to
conforming tenders and identify the best value tender as
the preferred tender
Clarify any uncertain aspects of the preferred tender

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BID AND AWARD PROCESS

Evaluation of Bid Document
If successful negotiations can not be reached with the
preferred tenderer, consider the next best value tender.
Re-confirm budget is available to proceed.
Prepare and sign off the tender evaluation and
recommendation report, note All Tender Board members
are to sign-off on the preferred tenderer as the
Recommended Tenderer .
Panduan Penilaian Tender.pdf
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BID AND AWARD PROCESS

Evaluation of Bid Document

Figure 2 Evaluation of Bid Document

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BID AND AWARD PROCESS

Award of Contract
Client/Employer notice to a bidding contractor of the
acceptance of the submitted bid.
Tender board is the authority that have power to decide
and select the successful tenderer.
Tender board member involves at least 5/7 person of
senior officers in the organisation and head of agency as
the chairman.
Award of contract shall be made using the submitted, not
the calculated, price for the contract under bidding.
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BID AND AWARD PROCESS

Award of Contract
Notice of Award (Letter of Acceptance of Tender) should
be approved by the Head of Agency or his duly authorized
representative and issued within seven (7)/ fourteen (14)
calendar days from the date the decision to award is
made.
If the tender board finds that the bidder with the lowest
calculated price passes the qualification criteria, his bid
shall be considered as the "lowest calculated responsive
bid", and the office/agency/corporation shall award the
contract to him, at his submitted bid price, subject to the
other provisions of this section.
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BID AND AWARD PROCESS

Award of Contract
Contract award shall be made within the bid validity
period. Should it become necessary to extend the validity
of bids, the agency concerned shall request in writing all
those who submitted bids for such extension before the
bid expiration date. Bidders, however, shall have the right
to refuse to grant such an extension without forfeiting their
bid security.
Sample letter of Acceptance of Tender
LA maincon.pdf
LA subcon.pdf
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BID AND AWARD PROCESS

Award of Contract
The successful bidder shall execute the contract with the
concerned agency within fourteen (14) calendar days after
receipt of the notice of award. All unsuccessful bidders
shall also be notified of the award through official
notices/communications.
Notice of award shall immediately be posted in a
conspicuous place within the premises of the concerned
office/agency/corporation and in the website of the
office/agency/corporation and/or the procurement service.
A copy thereof may be requested in writing.
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BID AND AWARD PROCESS

Contract Documentation
Contents similar to tender document.
Within Thirty (30) days from the day of the Employer
notifying the successful Tenderer that his Tender has been
accepted, the Employer will send the successful Tenderer
the Contract Documents for execution.
Within Fourteen (14) days from the day of the successful
Tenderers receipt of the Contract Documents he shall
have them signed, witnessed and dated and return them
to the Employer.

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Thank you

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Assignment 1
Instructions;
Form a group of 5 - 6 students each. (each group will get
different topic)
Create the process flow chart and describe the process in
details.
1.
2.
3.
4.
5.
6.
7.

Invitation to Bid
Distribution of Bid Document
Submission of Bid Document
Opening and Accepting Bid Document
Evaluation of Bid Document
Award of Contract
Contract Documentation

Date of Submission: 24th April 2012

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Thank you

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