Uwe Putlitz, CEO of JBCC, provides important points to consider before tendering for work.
Uwe Putlitz, CEO of the Joint Building Contracts Council (JBCC), says there are important points to consider before tendering for work. Two of these points are the opportunity involved with the work and the competition you will encounter when tendering.
“Consider your current work load before you tender for new work. Ask yourself how long you will be kept busy with your current projects before you run out of work and whether you have the needed human and other resources to take on new work,” says Uwe.
He goes on to explain that considering your competition is also important. “Who else is tendering? How desperate are you to secure the work ‘as the lowest tenderer’ as opposed to being ‘the best tenderer’? If you are the lowest tenderer, could you lose money and consequently deliver a job of poor quality leading to early termination and a dispute?” asks Uwe.
Companies in the construction industry should also pay attention to the tender documents that they submit for new work. These documents must to be correctly compiled to quote for the project and need to include all the necessary construction information.
Deviations from the standard JBCC building contract need to be listed in the contract data or the Preliminary Bill of Quantities. “Besides deviations from the standard contract, any unusual payment conditions, or unusual guarantees or insurances need to be called for. If you have to work with direct or nominated contractors that aren’t specified yet, then this information must also be included in the tender documents,” says Uwe.
Possible restrictions could impact on the method and programming of your role in the project. These restrictions include limited working hours, noise and dust limitations. Consider the weather conditions during the proposed construction period, because having to complete the excavations and foundations during the rainy season, for example, could impact your schedule.
Lastly, there are many questions related to the site that companies should ask themselves before tendering for work.
“Have you inspected the site?” asks Uwe. “If so, do the drawings and the description provided make sense to you? Is there access to the site, place for site huts, equipment and material storage? Do you have to employ local staff and labour with unique payment conditions and whose skills may be suspect?”
Tendering for new work comes with risks and opportunities. The most important point to consider, however, is whether you will be able to complete the project on time to the specified standard – and make a fair profit to remain in business.
JBCC is a non-profit South African company that represents building owners, developers, professional consultants and building contractors. JBCC collates input for the compilation of a comprehensive suite of JBCC building contracts.
For more information visit www.jbcc.co.za or call +27 (86) 100 5222.