RFT

A request for tender gives every tenderer the same information so offers can be compared fairly. A typical RFT package contains the following.

• Conditions of tendering. Closing time, how to submit, how questions are handled, and what makes a tender conforming.

• Contract conditions. Usually an Australian Standard form such as AS 4000-1997 or AS 2124-1992, or a subcontract form, with special conditions.

• Scope of works and specification. What is included and excluded, and the standard it must be built to.

• Drawings and reports. Design documents, site investigations and any other information the tenderer can use.

• Returnable schedules. The forms tenderers must complete, such as price breakdowns, schedules of rates, programme, methodology, departures and key personnel.

• Evaluation criteria. How tenders will be assessed, sometimes with weightings.

For a deeper look, read Tendering In Construction. Try the free Tender Comparison tool.

On larger projects the RFT usually follows an expression of interest (EOI) or prequalification step, so only shortlisted parties are invited. Smaller packages may go straight to an RFT, or to a request for quotation (RFQ) where price is the only real question.

During the tender period, tenderers inspect the site, ask questions and receive addenda. Answers to questions are normally issued to all tenderers so nobody gains an advantage. After closing, the client evaluates conforming tenders, levels prices, seeks clarifications, and may negotiate with one or two preferred tenderers.

The process ends with award, either a letter of acceptance or a signed contract. Where work must start before the contract is finalised, the client may issue a letter of intent first.

Head contractors run the same cycle again after award, issuing subcontract RFTs for each trade package. Their programme for procurement, often called a procurement schedule, sets when each package must be tendered, evaluated and let so materials and trades arrive on time.

Most clients use a mix of price and non-price criteria. Non-price criteria often include relevant experience, key personnel, methodology, programme, safety and quality systems, and capacity. Government agencies usually publish the criteria in the RFT, and many weight them.

Tender levelling is the step that makes prices comparable. The evaluator adjusts for exclusions, qualifications, provisional sums and arithmetic errors so each price represents the same scope. A low price with heavy qualifications can turn out to be the most expensive offer once levelled.

• Qualifying the tender heavily. Too many departures can make a tender non-conforming or score poorly.

• Ignoring the returnable schedules. Missing or incomplete schedules are a common reason tenders are set aside.

• Not reading the contract. Special conditions often shift risk on latent conditions, liquidated damages or security, and should be priced.

• Missing addenda. Price the final documents, including every addendum issued during the tender period.

Submitting late. Late tenders are commonly excluded, and electronic portals close on the minute. Allow time for upload problems.