Tender Evaluation Process

Once received the tenders,

Check tender is in the format stated in the tender documentation.
Check for arithmetical and pricing errors (e.g., items price missed out, different prices for a same item). For genuine errors, standby (still wins) or withdraw / standby or amend (may lose).
Compare activity schedules side-by-side against benchmarks (e.g., in-house cost information, BCIS). When a cost is suspiciously high or low, clarify with the contractor.
Ensure that the pricing of the activity schedule is not unduly front-loaded and fairly reflects normal cash-flow curves. If front-loaded, inform the client about the concerns (financial difficulties), compare with the second lowest, client then decide on which one.
Check to make sure the mandatory requirements set out in the invitation to tender have been met, using a simple Pass / Fail test. If the tender fails on any mandatory elements, then do not evaluate the tender further. Notify the tenderers immediately, informing them that their tender will not be evaluated and the reasons why.

The lowest price method: accept the lowest priced tender that is technically and commercially compliant. The evaluation does not take into account any criteria other than price.

Tender Report

It is important that a full audit trail of the entire tender process is maintained. Following the evaluation of the submitted tenders, a tender report (refer also to tender price appraisal form) should be prepared by the quantity surveyor for the client, setting out the tender appraisal process and recommendation of the most suitable contractor for award of the contract.

The tender report provides an audit trail for how the appraisal process has developed from the opening of the submissions to recommending the most suitable contractor. It should include:

date that tenders were issued;
to whom the tenders were issued;
how many tenders were received;
which contractor submitted the lowest price;
any observations made on the returns, e.g., clarifications, omissions;
information on the extent and level of detailed appraisal carried out on each contractor's tender;
following the appraisal, which contractor is recommended for award of contract;
the revised tender figure following any adjustments made;
the programme length;
any matters or issues that need to be resolved prior to entering into contract.

A sample of tender report is as shown below.