Page 120 - BASIC PRINCIPLES OF QUANTITY SURVEYING PROFESSIONAL PRACTICES

Politeknik Kota Bharu

3. Third Stage Assessment - The Most Profitable Tender to Be

Certified

• The evaluation procedure involves adjusting the tender price

to reflect for the period of the work being offered, as well as
the impact of lowering the price and shortening the duration on

the tenderer's capacity to select the most profitable tender to
be accepted.

• The factors to be considered are as follows: -

a) A Tender Price Adjustment factor must be applied to

all tenders that have passed the second stage but
have a longer completion period. The tenderer's

tender price that offers a longer completion period

than a reasonable completion period shall be

adjusted by adding the amount of loss projected to
be sustained by the Government because of project

completion delay to the tenderer's tender price.

b) Effect of Lowering Tender Price Factor – The factor,

namely the price reduction factor (FRH), is multiplied
by the Cost Capability score obtained in the 2nd

stage on all tenders that have passed in the 2nd

stage but offer the original tender price less than 13

percent lower than the Department's Estimate.

c) Effect of Shortening of Completion Period Factor

shall be made on tenders where the overall score
(after considering the Price Reduction Effect where

applicable) and technical capability score are

marginal, and the tender completion period is shorter
than the Average Desired Completion Period.

104