Finance – Examples of tender submissions

Tender documents for construction

Tender documents for construction

About tender documents for construction

Tender documents for construction are some of the most important documents which construction companies and project and asset owners deal with because they dictate who is going to be delivering what projects - which has a direct impact on all of the companies working on a project as well as the project of course.

Construction tender documents include the documents which project and asset owners use to invite vendors to bid on their projects, and the documents which vendors (contractors, subcontractors, suppliers) use to submit their tenders or put their hand up to work on the project.

In general, tendering refers to the suppliers required to complete construction works - but tender documents have become synonymous with the process of inviting, bidding and selecting services.

In the construction industry, where everything is project based, tenders are the main mechanism by which companies choose who to work with, and these documents span across most of the types of vendors including general contractors, equipment suppliers and enabling works.

So for all companies operating in construction, tendering documents serve a vital role in the success of their business.

How to prepare tender documents for construction

Preparing tender documents can be a project in itself for construction companies, and reconciling and making procurement decisions can be quite the effort for asset owners and operators as well.

The best way to prepare and handle tender documents is to break them down into packages. Each package should be for a specific area, phase of piece of work or product, so that the parties submitting tender documents can prepare accurate bids.

Breaking down your tender documents effectively also enables the party receiving the package and selecting the vendors to more easily sort the vendors into groups, assess them properly, and make better and more informed decisions.

The time and level of sophistication required in preparing tender documents will vary greatly based on the size of the project and companies involved. Some of the typical tender documents for construction include:

  • An invitation to tender letter like this  or request for tender
  • The form of tender or 'tender submission'
  • Preliminary documents and information around pre-construction and site management
  • Contracts and contract conditions
  • A tender pricing and specs document
  • Employer's information requirements for BIM
  • Design drawings and project specs
  • Tender return slip

As you can see, the tendering process is pretty comprehensive in construction, and can start to eat into the project preparation and specification stage. This is great for clarity around the project, but means that construction companies can spend a lot of time on tenders which they may not win (but you do have to be in it to win it).

Out of these tender documents, the most comprehensive is usually the form of tender or tender submission and the part that the construction companies are most concerned with getting right and formatting correctly.

Construction tender document example

As is the case with most documents in the construction industry, tender submissions can vary quite dramatically from company to company and project to project.

But there is some better frameworks than others, and some general inclusions which most companies are going to want to include.

The construction tender document example below obviously isn't in its PDF or document form, but it gives you a good idea of the contents which will be included in tender documents for construction.

Some of these items are established and completed by the project or asset owners, while others are completed by the contractor, subcontractor, supplier or other bidding party.

A tender submission will also frequently include a tender document cover letter, but that is usually quite simple, with some company identification pieces and some info regarding the project name and number.

TABLE OF CONTENTS

 

SECTION  I - Notice of Tender

SECTION II - Instructions to bidders

  1. Instructions
  2. Receipt of bids
  3. Amendments to bids
  4. Business incentive policy
  5. Manufactured products policy
  6. Schedule of unit prices
  7. Plant and equipment list
  8. Options and substitutions specified by the owner
  9. Options proposed by the bidder
  10. Tender schedule form
  11. Addenda
  12. Bidding documents
  13. Bid security
  14. Insurance requirements
  15. Signatures
  16. Goods and services tax
  17. Workers compensation act and business corporations act
  18. Commercial accomodations
  19. Acceptance
  20. Tender/contract inconsistency
  21. Harassment free and respectful workplace policy
  22. Safety certification
  23. Enquiries during the solicitation period
  24. Bid validity period

SECTION III - Bid form

  1. Project information
  2. Offer
  3. General agreement
  4. Contract price
  5. Declarations
  6. Signatures

APPENDIX

  1. List of bid documents
  2. Business incentive policy
  3. List of unit prices
  4. Contractor's certificate of insurance
  5. Construction contract

Tender documents for construction PDF

So now that you have seen that example of a tender document, how are these tender documents usually presented and shared between parties?

The most common format for tender documents in construction is unsurprisingly the PDF.

The tender document below is a good example of what one of these PDF forms may look like. The document includes some nice formatting, a clear structure, and provides a platform from which the parties can collaborate on tender documents.

How are these tender documents sent and shared? Mostly via email, with some companies still sending supplemental letters.

The truth about tender document for construction is that they could be better. They could be created better, managed better and shared in a more collaborative and professional manner.

There are thousands of tender documents floating around construction companies and sites which are being manually completed and sent between parties.

The process by which companies conduct the tendering the process can be drastically improved through more collaborative tender documents and tools - which you can look at below.

Tender documents for construction

Is there a better way of managing tender documents in the construction industry?

The final format for most tender documents is PDF, but the main way in which they are created is through word and number processors like word and excel - which can cause a lot of headaches during the bidding and tendering process including:

  • Tender documents getting lost and misplaced
  • Vendors or project being delayed in the tendering process and struggling to communicate with other parties
  • Companies struggling to maintain high standards and standardised tender documents across their portfolio of work
  • Tender documents not being stored in an organised or secure manner

Word and excel documents have been the go-to and easiest options for construction tender documents for many years, but today, there are digital options which enable you to manage tender documents more efficiently and professionally.

tender submission system

These systems, like the example of Dashpivot above, enable you to digitise and standardise your tender documents for construction.

You can manage all of your tender documents from a single place, and access them, edit them, modify them, complete them, and share them as proper tender documents in PDF format.

You can also take advantage of smart document fields and features like digital signoffs, which make the whole process so much friendlier for all parties involved and can set you apart from other vendors.

Tender documents for construction are really important to your business, and they are also important for all project parties.

The tendering process is one which happens thousands of times every day and dictates who works on what the ultimately the success of the project - and tender documents are at the heart of this process, enabling parties to effectively communicate and agree on who will deliver a project and what that delivery will look like and cost.

People in 80+ countries use this financial software to better capture, organise and track project finances.

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Sitemate software makes it easier for companies to win, deliver and manage projects - the smart way.

About Lance Hodgson

Lance is the Head of Marketing & Growth at Sitemate. His aim is to bring awareness to a brighter future for the industries where people spend their time doing better work and companies deliver on time and on budget.

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