NJCC Code of Procedure for Single Stage Selective Tendering

NJCC

January 1996

Code of Procedure for  Single Stage Selective Tendering

National Joint Consultativ Consultative e Committee for Building Building collaboration with: in collaboration The Scottis Scottish h Joint Consul Consultati tative ve Committee Committee and The Joint Consulta Consultative tiveComm Committee ittee for for Buildin Building, g, Northern Ireland

NJCC Publications

CODESOFPROCEDURE SingleStageSelectiveTendering(1996)

SelectiveTenderingfor Designand Build (1995)

Selectionof a Management Contractor  and Works Contractors (1991)

Two StageSelectiveTendering(1996) Lettingand Managementof Domestic Sub-contractWorks (1989)

GUIDANCENOTES 1

2

Joint VentureTenderingfor Contractsin the United Kingdom (1996)

4

Pre-Tender Meetings(1988)

5

Reproductionof Drawingsfor TenderPurposes (1996)

6

CollateralWarranties (1992)

8

ConstructionManagement: Selection and Appointmentof  ConstructionManager and Trade Contractors(1994)

9

ChargesforA    dmissiont o Approved and SelectLists and for Tender  Documents (1994)

16

'Record' (or'As Fitted') Drawings and Operating and Maintenance Instructions (Underreview)

17

Set-off and Adjudication Procedures under Sub-contract (RevisedJuly 1991)

18

UseandCompletionof NSC/1 (Issued July1991)

Performance Bonds(1995)

(3) (FireOfficersRecommendations) Withdrawn August 1993

7

Alternative Dispute Resolution (1993)

PROCEDURENOTES 1

Variationson Construction Contracts (RevisedJanuary 1996)

2

Alterationsto Standard Forms of Contract (RevisedJanuary 1996)

3

4

Additional Informationfor Tenderers (RevisedJanuary 1996) Placingof Contractswith a Substantial BuildingServices EngineeringContent (RevisedSeptember 1989)

9

( 1 O ) (Adviceto Tenderers: UseofPostal Services) WithdrawnMarch1989

11

FinancialControland Cash Flow (RevisedJanuary 1996)

12

Tenderingfor Building Works without Bills of Quantities (RevisedJune 1992)

13

(5) (SelectiveTendering) WithdrawnMarch1978 (6) (NEDOPriceAdjustment Formula) WithdrawnMarch1978 7

Standard Form of Building Contract 1980Edition-Clauses38.7 and 39.8 (RevisedSeptember 1989)

(8) (NEDOPriceFluctuationFormulaClause31F) WithdrawnMarch 1978

TenderingPeriods (RevisedJanuary 1996)

14

Naming of Officials by Public Authorities in the Articles of Agreement in Standard Forms of BuildingContract (RevisedJanuary1996) Placing of Sub-contractsinvolving design, preparationof drawings and/oroff -site fabricationwork by Sub-Contractors (RevisedJanuary 1996)

19

The PublicWorks Contracts Regulations1991-ContractAward ProceduresoftheEC'Works Directive' (IssuedJune 1994)

20

The construction (Designand Management)Regulations1994 (SI 1994No. 3140) (IssuedFebruary1995)

15 CommissioningandTesting (Underreview)

TENDERINGQUESTIONNAIRES  Applicationfor admissionto  Approved Listsof Contractors

 Available from: RlBAPublications Surveyors Publications CIPLtd

 Applicationfor admissionto SelectListsof Contractorsfor one particularcontract

CONTENTS

clear to all potential tenderers at the outset; the principles set out hereafter should still be observed.

Page

1.0

Foreword

1

2.0

Introduction

1

3.0

The list of Tenderers

2

4.0

Tendering Procedure

2

5.0

Assessing Tenders and Notifying Results

4

6.0

Examination and Adjustment of the Priced Bill(s)

4

Negotiated Reduction of Tender

5

The objective is to achieve value for money for  the employer; good tendering procedures are part of a range of issues an employer must consider to achieve that.

Appendices

The Construction (Design and Management) Regulations 1994 [1] (CDM) place duties upon employers, architects, designers and contractors with regard to health and safety. It must be taken into account, co -ordinated and managed effectively throughout all stages of a construction project, from conception, design and planning through to the execution of works on site and subsequent maintenance and repair.

Preliminary Enquiry for Invitation to Tender  for use with:

This Code assumes that a planning supervisor  has been appointed under CDM.

1.2

7.0

 A

.1

Standard Form of Building Contract Intermediate Form of Building Contract   Agreement for Minor Building Works

7

.2(S) Scottish Minor Works Contract

8

B

Formal Invitation to Tender

9

C

Form of Tender

10

1.3

Consequent upon entry into the European Union tenders for public sector construction contracts above a specified value must be invited and contracts awarded in accordance with Directive 71/305/EEC (as amended by Directive 89/440/EEC), implemented in the UK by The Public Works Contracts Regulations 1991 (SI) 1991/2680. In these instances, the provisions of the Code will be qualified by the supplementary tendering procedures specified in the Regulations. Public contracting authorities within the meaning of the Regulations are responsible for ensuring that their tender and award procedures for works contracts comply with the provisions of the Regulations or subsequent legislation. (See NJCC Procedure Note 19.)

1.4

This Code is complementary to other NJCC publications (listed opposite).

Note: The Code applies in the whole of the United Kingdom, but where Scottish practice differs, suitable recommendations are printed in italics.

1.0

FOREWORD

1.1

This Code has been prepared for use by all who commission construction work, whether in the private or public sectors. It envisages the use of  single stage tendering by a selected list of  tenderers which is currently the most common method of obtaining tenders for the majority of  construction contracts. On contracts where it is desired to secure the early involvement of the contractor before the development of the design is completed two stage tendering procedures may be adopted. These procedures are detailed in a companion NJCC Code of Procedure for Two Stage Selective Tendering. Nothing in this Code should be taken to suggest that the employer is obliged to accept the lowest or any tender, although if the procedure advocated in the Code is followed, the successful tenderer will normally be the one offering the lowest price, on a lump sum basis. If  it is the employer's intention to allow bids based on alternative criteria, this must be made

Code: Single Stage

1.5

2.0

2.1

Throughout the Code the word 'architect' is used to mean architect [2] or contract administrator and the word 'employer', to mean building owner or employing body in the sense that the terms are used in the standard forms of  building contract.

INTRODUCTION The general principles of the Code are fully supported by the Department of the Environment and take into account the relevant recommendations of the National Economic Development Office (NEDO) report 'The Public Client and the Construction Industries', the report 'The Placing and Management of  Contracts for Building and Civil Engineering [1] See also the Approved Code of Practice issued in February 1995 by the Health and Safety Commission 'Managing construction for health and safety'. [2] The term 'architect' applies only to any person entitled to use the name 'architect' under and in accordance with the Architects Registration Acts 1931 to 1969.

1

2.1

number of tenderers should be not more than four.

continued  Work' (The Banwell Report), 'Action on the Banwell Report' and 'Constructing the Team' (The Latham Report 1994).

2.2

In order that its detailed recommendations may be most widely applicable, this Code assumes that a standard form of contract would be entered into following the acceptance of a tender. This assumption in no way precludes the use of the Code where other forms of  contract are employed, though certain details may require modification.

When the list has been settled, one or two further names should be appended in order that they may replace any firms on the list that do not accept the preliminary invitation. The actual number invited should be notified to all tenderers. 3.2

When selecting the short list the following are among the points which should be considered: .1 the firm's financial standing and record;

2.3

2.4

The contractor's tender is the price for which he offers to carry out and complete, in accordance with the conditions of the contract and statutory requirements, the works shown on the drawings and described in the bill(s) of  quantities and/or specifications and schedules.

.2 whether the firm has had recent experience of building at the required rate of completion over a comparable contract period; .3 the firm's general experience, skill and reputation in the area in question;

Good tendering procedure demands that the contractor's tendered price should not be altered without justification. Difficulties have arisen when an examination of the priced bill(s) revealed errors or a discrepancy between these prices and the tender figure. The Code lays down, in Section 6, alternative methods of  dealing with this situation before the contractor's offer is accepted. The first alternative does not permit the correction of  errors in priced bill(s) of quantities, the second does.

.4 whether the technical and management structure of the firm including the management of sub -contractors is adequate for the type of contract envisaged; .5 the firm's competence and resources in respect of statutory health and safety requirements;

.6 the firm's approach to quality assurance systems; and .7 whether the firm will have adequate capacity at the relevant time.

The choice must be made before contractors are invited to tender. 2.5

It should be a condition of tender that obvious errors in pricing or significant errors in arithmetic discovered before the acceptance of  the contractor's tender should be dealt with in accordance with one of the alternatives in Section 6 of this Code.

3.0

THE LIST OF TENDERERS

3.1

Once it has been decided that a contractor is to be selected under a competitive tendering procedure, a short list of suitable tenderers should be drawn up either from the employer's approved list of contractors or from an ad hoc list of contractors. It should be appreciated that, because of the cost of preparing tenders, the larger the tender  lists become the greater will be the cost of  abortive tendering, and this will be reflected in higher building prices.

This list, irrespe ctive of the size of the contract, should contain not more than six names. Regard should also be paid to the amount of  work demanded of tenderers in order to formulate their bids and where this involves extensive quantification, specification, specialisation and/or calculation the maximum

2

3.3   Approved lists should be reviewed periodically to exclude firms whose performance has been unsatisfactory, and to allow the introduction of  suitable additional firms. 3.4

The object of selection is to make a list of firms, any one of which could be entrusted with the   job [3]. If this is achieved, then the final choice of contractor will be simple - the firm offering the lowest tender. Only the most exceptional cases justify departure from this general recommendation.

4.0

TENDERING PROCEDURE

4.1

Preliminary Enquiry .1 In order that contractors may be able to decide whether they will tender, and to anticipate demands on their tendering staff, each firm should be sent, and should reply promptly to, a preliminary invitation to tender as illustrated in Appendix A 'Preliminary Enquiry for Invitation to Tender'.

It is essential that all the details itemised in   Appendix A are stated in the preliminary [3] Arrangements for pre-tender interviews may facilitate this objective. (See NJCC Procedure Note 4 Pre-Tender Meetings.)

-

Code: Single Stage

4.1

.1 continued

prior consideration and should then be drafted by a person competent to ensure that all consequential alterations to other clauses are made (see NJCC Procedure Note 2).

enquiry. The omission of relevant information may seriously impede contractors in deciding whether or not to tender.

The tenderer's attention should be specifically drawn in the Preliminary Invitation to Tender (see Appendix A) to any alterations to be made to the standard form of contract and, where appropriate, reasons should be given, so that the implications of  such amendments may be considered by the tenderers prior to acceptance of the invitation to tender; and so minimise the risk of subsequent queries at tender stage which may result in an extension of  the tender  period (see clause 4.4).

.2 It is suggested that an appropriate period of  time between the preliminary enquiry and the despatch of tender documents is 4 to 6 weeks, although in some instances a period of  3 months would not be unreasonable. In cases beyond 3 months the preliminary invitation should be confirmed a month before tenders are invited. .3 Once a contractor has signified initial agreement to tender  it is in the best interests of all parties that such acceptance should be honoured. If  in exceptional circumstances a contractor has to withdraw his acceptance he should give notice of  this intention before the issue of tender documents. If  for any reason this is not possible, notice should be given not later than two working days after  receipt of the tender documents.

4.3

.1 The time allowed for the preparation of  tenders should be determined in relation to the size and complexity of the job. Inadequate tendering time can lead to mistakes and the client may not obtain the most competitive prices. A minimum of four  working weeks (20 working days) should normally be allowed. Major projects, plan and specification tenders [4], works having a significant non-nominated specialist content or other special circumstances may well require a longer period. The tender period must be sufficient to enable the tenderer to obtain competitive quotations for the supply of materials and for the execution of works to be sub-let. The latest time for submission should be specified as an hour of a day and should be chosen to allow as short a time as possible to elapse before opening the tenders. Tenders received after time should not be admitted to the competition.

.4 After the latest date for the acceptance of the preliminary invitation the final short list of  tenderers will be selected. All firms should be notified promptly whether or not they have been included in the tender list. 4.2

The Tender Documents

.1 On the day stated in the preliminary invitation all tender documents should be available for collection or despatched to the tenderers by first class post. See Appendix B for suggested 'Formal Invitation to Tender' and Appendix C for suggested 'Form of  Tender'.

.2 If bills of quantities are issued to tenderers in sections, or any supporting or relevant documentation issued at a later stage in the tendering period, the date for the return of  tenders should be extended with the full tendering period calculated from the date of  issue of the final information.

.2 The conditions of tendering should be absolutely clear  so that all tenders are submitted on the same basis. The contract period should be specified in the tender  documents and tenderers should be required to make offers based on the same period of  completion in order to limit competition to price only.

Sufficient time must be given to allow tenderers to comply with the requirements of the Construction (Design and Management) Regulations 1994.

.3 The NJCC strongly recommends the use of  the standard forms of building contract in unamended form. 4.4  Although it is recognised that the terms of  the standard forms are not mandatory and that the employer and his professional advisers may alter them at their discretion, the NJCC believes that alterations to the standard forms impede the efforts being made towards achieving greater  standardisation of  building procedures. The NJCC is firmly of the opinion that if  alterations to the standard forms have to be made it is essential in the interests of good practice and of economic building that they be kept to an absolute minimum. They should not be undertaken without serious Code: Single Stage

Time for Tendering

Tender Compliance .1 If a tenderer considers that any of  the tender  documents are deficient in any respect and require clarification, or contain unacceptable alterations to the standard form of building contract not previously set out in the Preliminary Invitation to Tender (see   Appendix A) he should inform the issuing authority or the architect (with a copy to the quantity surveyor) as soon as possible and preferably not less than ten working days [4] See NJCC Procedure Note 12 -Tendering for  Building Works without Bills of Quantities.

3

4.4

.1 continued

before the tenders are due. If  it is decided to amend the documents the issuing authority or architect should inform all tenderers and extend the time for tendering if necessary. .2 For fair competitive tendering it is essential that the tenders submitted by each tenderer  be based on identical tender documents (a compliant tender) and that the tenderers should not attempt to vary the basis by qualifying their tenders.

5.2

sealed, separate envelope, endorsed with the tenderer’s name, should be submitted at the same time as the tender. 5.3

The NJCC does not recommend that all tenderers be required to submit a response to the health and safety plan with their tenders. The lowest tenderer should be required to submit its response as soon as possible.

5.4

It is important that all but the lowest three tenderers should be informed immediately that their tenders have been unsuccessful, as this information is critical in relation to a contractor‘s strategic tender planning. In order  to serve the employer’s interests in the event of  the lowest tenderer withdrawing his offer, the second and third lowest tenderers should be informed that their tenders were not the most favourable received but that they will be approached again if  it is decided to give further  consideration to their offers. They should subsequently be notified at once when a decision to accept a tender has been taken.

5.4

* The envelope containing the bill(s) of the lowest

If, in addition, the employer  is prepared to receive alternative offers varying any aspect of the project specifications including an alternative contract period all tenderers should be notified accordingly. The alternative offer, which the employer may reject, should be supported by a fully specified and priced build -up.

An alternative offer should only be considered if accompanied by a compliant tender. .3  A tenderer who otherwise submits a qualified tender should be given the opportunity to withdraw the qualifications to produce a compliant tender; if he fails to do so his whole tender should be rejected if it is considered that such qualifications afford the tenderer an unfair advantage over other  tenderers. 4.5

tenderer should be opened and the bill(s) examined. Alternatively the lowest three tenderers should be advised that their offers are under consideration and the envelopes containing the bill(s) of the lowest three tenderers should be opened and the bill(sl examined. Tenderers whose offers are being rejected should be informed immediately or as early as possible.

Withdrawal of Tender before Acceptance 5.5

A contract must not be entered into nor works started on site until satisfaction has been obtained on the firm’s competence and resources in respect of statutory health and safety requirements.

5.6

Once the contract has been let every tenderer  should be supplied with a list of the firms who tendered (in alphabetical order) and a list of the tender prices (in ascending order of value).

6.0

EXAMINATION AND ADJUSTMENT OF THE PRICED BILL(S)

6.1

The examination of the priced bill(s) of  quantities supporting the tender under  consideration should be made by the quantity surveyor who should treat the document as confidential; on no account should any details of  the tenderer‘s pricing be disclosed to any person, other than the architect or other  appropriate consultant, except with the express permission of the tenderer.

6.2

The object of examining priced bills is to detect errors in computation of the tender. If the quantity surveyor finds such errors, he should report them to the architect who, in conjunction with the employer, will determine the action to be taken under whichever  is appropriate of the alternatives set out below and referred to in the

.1 Under English law a tender may be withdrawn at any time before its acceptance.

*. 1

Under  Scots law, if the provision for the tender  to be withdrawn at any time before its acceptance is to be available, the words ‘unless previously withdrawn‘ should be inserted  in the tender after the words ‘this tender remains open for consideration . . .’ 

(Note: this clause is nor, however, contained  in tenders issued  in Scotland by the Department of the Environment; see  Appendix  C for suggested ‘Form of Tender‘.)

5.0

ASSESSING TENDERS AND NOTIFYING RESULTS

5.1

Tenders should be opened as soon as possible after the time for receipt of tenders.

5.2

The lowest tenderer should be required to submit priced bill(s) of  quantities as soon as possible and in any case within four working days. Tenderers should be informed that failure to comply with this requirement may render the tender liable to rejection.

* 4

* The priced bill(s) of quantities, contained in a

Applicable in Scotland only.

Code: Single Stage

6.2

NJCC strongly deplores any practice which seeks to reduce any tender arbitrarily where the tender has been submitted in free competition and no modifications to the specification, quantity or conditions under which the work is to be executed are to be made, or to reduce tenders other than the lowest to a figure below the lowest tender.

continued  Formal Invitation to Tender and the Form of  Tender. (See Appendices B and C.)

6.3

Alternative 1 .1 The tenderer should be given details of such errors and afforded an opportunity of  confirming or withdrawing his offer. If the tenderer withdraws, the priced bill(s) of the second lowest should be examined, and if  necessary this tenderer be given a similar  opportunity. .2 An endorsement should be added to the priced bill(s) indicating that all rates or prices (excluding preliminary items, contingencies, prime cost and provisional sums) inserted therein by the tenderer are to be considered as reduced or increased in the same proportion as the corrected total of priced items exceeds or falls short of such items. This endorsement should be signed by both parties to the contract.

6.4

7.2

Should the tender under consideration exceed the employer’s budget the recommended procedure is for a reduced price to be negotiated with the tenderer, based on agreed changes to the specification or the quantity of  work. The basis of negotiations and any agreements made should be fully documented.

7.3

Only when these negotiations fail should negotiations proceed with the next lowest tenderer. If  these negotiations also fail, similar  action may be taken with the third lowest tenderer.

7.4

If  all these negotiations fail, new tenders may be called for.

Alternative 2 .1 The tenderer should be given an opportunity of confirming his offer or of amending it to correct genuine errors. Should he elect to amend his offer and the revised tender is no longer the lowest, the offer of the firm now lowest in the competition should be examined.

*.1 The lowest tenderer or each of the lowest  three renderers should be given an opportunity of confirming his offer or  amending it to correct genuine error. .2 If the tenderer elects not to amend his offer, an endorsement will be required as in clause 6.3.2. If the tenderer does amend his tender  figure, and possibly certain of the rates in his bill(s), he should either be allowed access to his original tender to insert the correct details and to initial them or be required to confirm all the alterations in a letter. If in the latter case his revised tender is eventually accepted, the letter should be conjoined with the acceptance and the amended tender  figure and the rates in it substituted for those in the original tender. 6.5

When a tender is found to be free of error, or  the tenderer is prepared to stand by his tender  in spite of error, or a tender on amendment is still the lowest, this should be recommended to the employer for acceptance.

7.0

NEGOTIATED REDUCTION OF TENDER

7.1

As previously stated in clause 2.4, good tendering procedure demands that a contractor’s tendered price should not be altered without justification. In particular, the

*   Applicable in Scotland only. Code: Single Stage

5 

Appendix A.1

PRELIMINARY ENQUIRY FOR INVITATION TO TENDER Applicable where the JCT Standard Form of Building Contract, Intermediate Form of  Building Contract or Agreement for Minor Building Works is to be used

Dear Sirs, Heading

I am/We are authorised to prepare a preliminary list of tenderers for construction of the works described below. Please indicate whether or not you wish to be invited to submit a tender for these works. Your acceptance will imply your agreement to submit: a wholly bona fide tender in accordance with the principles laid down in the NJCC 'Code of Procedure for Single Stage Selective Tendering' 1996, and not to divulge your tender price to any person or  body before the time for submission of tenders. Once the contract has been let, I/we undertake to supply all tenderers with a list of the tender prices. You are requested to reply by. . . Your inability to accept will in no way prejudice your  opportunities for tendering for further work under my/our direction; neither will your  inclusion in the preliminary list at this stage guarantee that you will subsequently receive a formal invitation to tender for these works. Yours faithfully.

. .

Project.. . Type and function of the building, e.g. commercial, industrial, housing, etc., with any other details.. . General description of the project. . . c Employer.. . d Employer's professional team . . . e Planning Supervisor.. . f  Location of site. . . (Site plan enclosed) g h  Approximate cost range of project £ . . . to £ . . . Number of tenderers it is proposed to invite.. . i Nominated sub-contractors for major items. . . [1]  j Form of  Contract: k List here Form of Contract, e.g. JCT 80/IFC 84/MW 80,* together with (i)   Appendix items to the appropriate form completed † (not applicable to MW 80) (ii) The JCT Amendments proposed to the standard form ‡ [Note: Attention is drawn to the advice given in clause 4.2.3.1 Examination and correction of priced bill(s) [Section 6 of Code1 121; I   Alternative 1/Alternative 2 [3] will apply m The contract is to be executed as a deed/a simple contract § n  Anticipated date for possession . . . Period for completion of works. . . o p   Approximate date for despatch of all tender documents . . . Tender period.. . weeks q r  Tender to remain open for. . . weeks [4] Details of guarantee requirements. . . (if any) [5] s Particular conditions applying to the contract are. . . t a b

References

[1] [2] I3] [4] [5] * † ‡

§

Code: Single Stage

Not appropriate for IFC 84 or MW 80. Only appropriate for JCT 80 With Quantities or IFC 84 if the priced document is to be contract bills. Delete as appropriate before issuing. This period should be as short as possible. See NJCC Guidance Notes 2 and 6. In Scotland the appropriate SBCC Scottish Building Contract (SBC). In Scotland Appendix II. In Scotland the SBCC Amendment Sheet (number and date) to be used with the appropriate SBC. In Scotland as a formal/informal contract.

Previous page is blank

7 

Appendix A.2(S)

PRELIMINARY ENQUIRY FOR INVITATION TO TENDER

Applicable where the Scottish Minor Works Contract is to be used

Dear Sirs, Heading

I am/We are authorised to prepare a preliminary list of tenderers for construction of the works described below. Your attention is drawn to the fact that apart from the alternative clauses to the Scottish Minor Works Contract as detailed below under item i, further amendments to the Scottish Minor Works Contract, if any are annexed hereto, will be incorporated in the tender documents. Will you please indicate whether you wish to be invited to submit a tender for these works on this basis. Your acceptance will imply your agreement to submit a wholly bona fide tender in accordance with the principles laid down in the NJCC 'Code of Procedure for Single Stage Selective Tendering' 1996, and not to divulge your tender price to any person or body before the time for submission of tenders. Once the contract has been let, I/we undertake to supply all tenderers with a list of the tender prices. Please state whether you would require any additional unbound copies of the bill(s) in addition to the two copies you would receive; a charge may be made for extra copies. [I] You are requested to reply by. . . Your inability to accept will in no way prejudice your  opportunities for tendering for further work under my/our direction; neither  will your  inclusion in the preliminary list at this stage guarantee that you will subsequently receive a formal invitation to tender for these works. Yours faithfully.

..

Job ... Employer.. . c  Architect/Contract Administrator  . . . d Quantity Surveyor. . . Consultants.. . e f  Location of site.. , (Site plan enclosed) General description of work. . . g h  Approximate cost range £ . . . to £.. . . Form of Contract: Scottish Minor Works Contract i  Alternative A/Alternative B [1] will apply: the Planning Supervisor shall be . . . Clause 2.0 will/will not [1] apply Clause 6.5 will/will not [1] apply Clause 7.2: Clause B1.1 of said Memorandum, Section B will/will not [I] apply Clause 7.4 from 'or shall have given' to the end of  clause 7.4 will/will not [1] apply Clause 8.3A/8.3B will/will not [1] apply: the percentage to cover professional fees is ... % Examination and correction of priced bill(s) [Section 6 of Code];  j   Alternative 1/Alternative 2 [1] will apply k The contract is to be formally/informally [1] executed I   Anticipated date for commencement of works. . . m   Anticipated date for completion of works. . . Tender period.. .weeks n Tender to remain open for.. . weeks [2] o p Liquidate damages (if any), anticipated value £ . . . per. . . Defects liability period under clause 3.5. . . q r  Retention under clause 6.2. . . % s Period specified in clause 6.4 shall be . . . Percentage specified in clause 6.5 (if applicable) is. . . t Particular conditions applying to the contract are. . . U

a b

References

8

[1] [2]

Delete as appropriate, before issuing. This period should be as short as possible.

Code: Single Stage

Appendix B

FORMAL INVITATION TO TENDER

Dear Sirs, Heading Following your acceptance of the invitation to tender for the above, I/we now have pleasure in enclosing the following: a

b

c d

two copies of  the bill(s) of  quantities/specifications/schedules [1]; (i) two copies of the location drawings, component drawings, dimension drawings and information schedules (e.g. JCT 80 With Quantities ‡ or IFC 84 where Contract Bills are provided) [1]; (ii) two copies of all drawings (for JCT 80 Without Quantities, IFC 84 with Specification and Drawings or MW 80) § [1]; (iii) two copies of  the planning supervisor‘s pre-tender health and safety plan; two copies of  the form of tender; addressed envelope(s) for the return of the tender  (and priced bill(s) †) and instructions relating thereto.

Will you please also note: 1 2 3 4

.

drawings and details may be inspected at. . the site may be inspected by arrangement with the employer/architect [1]; tendering procedure will be in accordance with the principles of the NJCC ‘Code of  Procedure for Single Stage Selective Tendering’ 1996; examination and adjustment of priced bill(s) [Section 6 of Code];   Alternative 1/Alternative 2 [1] will apply.

The completed form of tender is to be sealed in the endorsed envelope provided and delivered or sent by post to reach not later than.. . hours on .the.. . day of.. 19..

. ..

*

..

.

.

The completed form of  tender and the priced bill(s) of  quantities sealed in separate endorsed envelopes provided are to be lodged not later than. . . hours on, . . the . . . day of. . . 19. . . The envelope containing the render should be endorsed with the   job title; that containing the bill(s) of quantities should be endorsed with the job title and tenderer’s name.

Will you please acknowledge receipt of this letter and enclosures and confirm that you are able to submit a tender in accordance with these instructions. Yours faithfully.   Architect/Quantity Surveyor [1]

References

Code: Single Stage

[1] * † ‡ §

Delete as appropriate, before issuing.   Applicable in Scotland only in which case the preceding sentence would not be used. Applicable in Scotland only. In Scotland SBCC With Quantities. In Scotland SBCC Without Quantities or SMWC 86.

9

Appendix C

FORM OF TENDER This form of tender is suitable for use only when a formal contract is entered into

Tender for. To.

..

..

(description of Works)

(Employer)

Sir(s), I/We having read the conditions of contract and bill(s) of quantities/specifications/ schedules [1] delivered to me/us and having examined the drawings and other  documents referred to therein do hereby offer to execute and complete in accordance with the conditions of contract the whole of the works described for the sum of. .. £ ... and within ... weeks [2] from the date of possession.

*

//We undertake in the event of your acceptance to execute with you a formal contract  embodying all the conditions and terms contained in this offer.

I/We agree that should obvious errors in pricing or errors in arithmetic be discovered before acceptance of this offer in the priced bill(s) of quantities submitted by me/us these errors will be dealt with in accordance with Alternative 1/Alternative 2 [1] contained in Section 6 of the NJCC 'Code of Procedure for Single Stage Selective Tendering' 1996. This tender remains open for consideration for. submission or lodgement of tenders,[4]. Dated

this

Name..  Address Signature

*

References

10

...............................................................

.. days [3] from the date fixed for the

day

of 

..............................................

19

...............

............................................................................................................................. ........................................................................................................................................ ..................................................................

Witness* 

................................................................

The completed form of tender and the priced bill(s) of quantities sealed in separate endorsed envelopes provided are to be lodged not later than. .. hours on ... the. .. day of. .. 19. .. The envelope containing the tender should be endorsed with the   job title: that containing the bill(s) of quantities should be endorsed with the job title and tenderer's name.

[1] Delete as appropriate, before issuing. I21] To be completed before Form of Tender is sent out. [3] Any period quoted should not normally exceed 28 days and only in exceptional circumstances should it extend beyond 56 days. [41] Refer to clause 4.5 of this Code. * Applicable in Scotland only.

Code: Single Stage

The National Joint Consultative Committee for Building

The National Joint Consultative committee for Building was set up in 1954, after publicattention had been focused on the importance of selective, as opposed to indiscriminate, tendering.

The original constituent bodies during the first two decades of the NJCC were the RIBA, RlCS and BEC (then NFBTE) but following the publication of the Banwell Report The Placing and Management of  Contracts for Building and Civil Engineering Work the Association of  Consulting Engineers, the Federation of  Building Specialist Contractors and the Confederation of Associations of  Specialist Engineering Contractors joined in the early 1970s. Throughout its existence the principal pre-occupation of the NJCC has been best described as the encouragement of 'good practice'. By this is meant the identification of what is the good way of  doing things in the -often complexoperation of building processes. In effect the NJCC sets out standards and it is the only fully representative body to do so, or  capableofdoing so, with the authority of  its constituent bodies. The NJCC's mostwidely known publication is its Code of Procedure for  Single Stage SelectiveTendering, first published in 1959. Tens of thousands of  copies have been sold in several editions and it isgenerally accepted thatthisone document transformed tendering practices in the years following its publication. For the first time recommended procedures which were easily comprehensible, obviously ethical and clearly designed to prevent undesirable practices were spelt out and recommended by an authoritative body representing the building industry. In the years since publication the code has contributed greatly to the proper  regulation of tendering procedures and has markedly improved the climate in which the industry operates. The Code, like other NJCC documents, was endorsed by the Department of the Environment and is widely used in the public sector. Indeed, at one time 85% of  local authorities were believed to base theirtendering procedureson it. In recent years the Code has also become increasingly used in the private sector. The Single Stage Code was followed by a Code of Procedure for Two Stage Selective Tendering, the Code of  Procedure for Tendering for Design and Build, the Code of Procedure for the Letting and Management of Domestic Sub-contract Works and the Code of  Procedure for the Selection of a Management Contractor and Works Contractors. From time to time the NJCC has also published a series of Procedure Notes. More recently the NJCC has introduced a series of Guidance Notes, which are listed inside the front cover  hereof.

The NJCC keeps all its publications under  review and up to date and ensures that they reflect the principles of the Latham Report Constructing the Team. The Good Practice Panel is often described as the 'powerhouse' of the NJCC and 'the custodian of good practice' in the industry. lts two main functions are: 1. To review and revise existing Codes and formulate new ones where required. 2. To receive reports on practice difficulties encountered throughout the industry and to advise on appropriate courses of action.

The Panel's underlying function, which is fundamental and which applies to all its work, is to decide on what is, and what is not, good practice. It formulatesopinions on the information it is able to obtain and offers informal advice, mostly in relation totendering proceduresand contract management. Although a voluntary body which cannot enforce itsviewthe Panel nevertheless enjoys considerable influence and authority. Its prestige is such that its opinions are widely respected and usually accepted. The NJCC, through its Good Practice Panel, maintains continuous liaison as required with such bodies as the DoE, the Local Authorities Associations, the Chartered lnstitute of Public Financeand  Accountancy as well as the representatives of the private sector. The positive function of the NJCC in actively influencing ethical and procedural standards in the industry proves that it is not just a talking shop. In addition it makes an important contribution to the improvement of building practice and, indirectly, to increased productivity. One of the NJCC's strengths is that its opinions and recommendations are reached after consultation and discussion between practitioners in the building industry-those who are actively involved at senior level with the day to day problems of building. This consultation - involving all significant interests in the industry (professions, main contractors and specialist sub contractors)- leads to recommendations which are authoritative and, as experience shows, continue to be effective for many years.

NJCC National Joint Consultative Committee for  Building Constituent bodies: Royal Institute of British Architects Royal Institution of Chartered Surveyors  Association of Consulting Engineers Building Employers Confederation Federation of Building Specialist Contractors Specialist Engineering Contractors’ Group

Published for the NJCC by RIBA Publications, Finsbury Mission, 39 Moreland Street, London EC1V 8BB RlBA Publications is a division of RlBA Companies Ltd © 1996 NJCC Printed by The Broadwater Press Ltd, Welwyn Garden City, Herts 1.96 C B A