Tender procedure
Purpose
The purpose of this procedure is to provide guidance on how to tender for (and hopefully win) future projects.
All work must be carried out in accordance with legislative requirements including, Work Health and Safety Act 2012 (SA), Work Health and Safety Regulations 2012 (SA), Codes of Practice, Plumbers, Gasfitters and Electricians Act 1995, Development Act 1993. Development Regulations 2008, National Construction Code, and Building Code of Australia.
Process
The decision to submit a tender for a project should be a carefully considered process that balances the opportunity against a realistic evaluation of the likelihood of success and PEER Construction’s ability of being able to perform the required works.
Communication is an extremely important element of the tendering process, and it is crucial that you inform the client as early as possible of your intention to submit a tender. If you decide not to submit a tender, then it is courteous to send an ‘unable to tender’ letter explaining the reasons of your decision.
Plan the tender submission
You must clearly address each element of the tender request and if you have any additional information useful to the submission then it should be presented as an addition within the tender letter.
Offer cost saving, and energy and water efficiency alternatives to the client.
The design and layout of the tender letter should include a header with PEER Construction details and logo. The footer should contain the page number and project name title. The submission should be divided into clear sections, either as specified by the buyer or created to provide a clear and logical presentation of the proposal content.
Prepare the tender submission
A tender submission should include:
- Scope of works – this is a brief description of the required works as shown within the tender documents.
- Tender price (break-up) – the tender documents will usually specify the requirements for how the pricing should be presented. Normally this will be a ‘total amount including GST’, but sometimes a client may request a detailed breakdown of the cost elements is provided (such as per service or zone).
- Cost saving options – there may be areas within the tender documents that you identify where a more cost effective solution can be applied. Use this opportunity to present a cost reduction to the client by offering cost saving, and energy and water efficiency alternatives to the client.
- Tender documents – include a list of all the plans, specifications, reports, and addendums that were used to price the project. Indicate the revision number and/or dates.
- Tender inclusions – list (bullet point) the project specific elements to show you have made allowances for each of the required works.
- Project assumptions – there may be existing site conditions that are deemed to be operational and any elements of a project that are expected to be provided by the principal contractor.
- Tender exclusions – you must list the elements that are not included within your submission price.
Price validity – all PEER Construction tender submissions will have a 30 day expiry date.
Complete the tender documentation
All documentation relating to a tender must be retained and sent to PEER Construction for record keeping. This includes tender documentation, specifications, site plans, drawings, estimates, instructions issued by client, email correspondence.
Tender letter
The tender letter template must be used when tendering for a client on behalf of PEER Construction.
The following must be detailed in the tender letter when tendering for a client (if applicable):
- scope of work
- demolition work
- framing
- plumbing installation
- electrical
- plaster
- finish carpentry
- tiling
- painting
- final clean up
Costing of tender is to be broken down. using the tender costing form.
Work Health and Safety Act 2012 (SA)
Work Health and Safety Regulations 2012 (SA)
Codes of Practice
Plumbers, Gasfitters and Electricians Act 1995
Development Act 1993
Development Regulations 2008
National Construction Code
Building Code of Australia
Tender letter
Tender costing form.
Version 1.0 – Last updated 6/2/2022