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Guide letters provide advice about matters architects should consider when composing letters to the parties involved in architectural projects.
Where the architect’s scope of services includes tendering services, the assessment of tenders received should generally be provided in a written report to the client.
Architects may consider developing a standard tender report template as a way of applying a consistent and thorough process. The guidance below outlines considerations for composing the tender report. Refer Acumen note Tenders – receiving and selecting for further guidance on opening received tenders, re-calling of tenders and recommending acceptance.
2. When and how?
2.1 Your client will consider your expertise in identifying a preferred tender.
2.2 In many cases, the identification of a preferred tender may seem obvious from the tender result (eg if price is the only criterion). Nonetheless, you should undertake the task of reviewing tenders with the greatest care, as you are responsible for the advice you give.
2.3 You cannot assess tenders on a competitive basis unless all the information called for at tender time is submitted. Assessments should clearly state where required information is missing.
2.4 If time is also a criterion of comparison (and tenderers were advised of this) a recommendation cannot be made until your client has assessed the cost benefits, but you should advise whether you consider certain time frames are realistic, relative to project type, expected weather conditions etc.
2.5 You should write this report as soon as possible after tender opening, bearing in mind the tender validity period.
2.6 Tenders should be assessed against the assessment criteria set out in the tender invitation including any conditions of tendering.
3. Content
Structure:
A good report should be concise and well-structured and would generally include:
- a short introduction (background to the project and the tender process)
- a summary of tenders (name, price and time for completion)
- conformance review (check validity and identify any missing information)
- assessment (of the tenders against any assessment criteria eg price and timing)
- tender qualifications and inconsistencies
- summary and identification of a preferred tender or tenders(s).
Assess:
- individual tenders on price and/or time in accordance with tender conditions. Give full and precise reasons for assessment. With selected tenders, generally the lowest price is accepted, if time is not of the essence (refer also 5.1 below)
- make your assessment as simple and unambiguous as possible.
Request:
- instructions from the client within the tender validity period once the report has been issued.
Attach:
- tenders as received.
4. Action
4.1 Issue the report within a reasonable time for the client to review and request an instruction from the client within the tender validity period.
5. What happens next?
5.1 It may be necessary to seek approval from your client to question tenderers before you can identify a preferred tender, for instance, if there is a wide variation in price and/or time. Seek written confirmation of specific items of suspect pricing in tenders. Note: tenderers cannot change their tender, only stand by it or withdraw it.
5.2 It may be necessary to enter into negotiations on behalf of your client if all tenders are higher than anticipated. The accepted method is to select and then negotiate with a preferred tenderer with a view to modifying the scope of work to arrive at an alternative and acceptable price. It may be prudent to invite the client to such negotiations as decisions on quality, quantity or time will need to be made. In the interests of good communications, establish with your client the acceptable limits of your authority to negotiate.
Similarly, take reasonable steps to verify that the representative of the preferred tenderer has the required authority to negotiate. Only if negotiations break down and the preferred tenderer loses that status should the next preferred tenderer be approached for negotiation.
5.3 When your client formally approves the preferred tender, write the letters outlined in Guide letter 23 and Guide letter 24 as appropriate and as agreed.
6. Are there other possibilities?
6.1 On conclusion of negotiations, if no acceptable tender is identified you have the option to advise your client that the:
- project be abandoned
- scope of works and documents be amended, and re-tender
- client can re-tender after a delay in accordance with the applicable code of tendering (such as AS4120-1994 Code of Tendering).
7. Copies
7.1 Architect's file
7.2 Relevant specialist consultants
Disclaimer
This content is provided by the Australian Institute of Architects for reference purposes and as general guidance. It does not take into account specific circumstances and should not be relied on in that way. It is not legal, financial, insurance, or other advice and you should seek independent verification or advice before relying on this content in circumstances where loss or damage may result. The Institute endeavours to publish content that is accurate at the time it is published, but does not accept responsibility for content that may or has become inaccurate over time. Using this website and content is subject to the Acumen User Licence.