Composition And Selected Reading Of Bidding Documents For International Construction Projects

With the growing cooperation between China and other economies in the world over the past years,China's overseas contractors have made bold endeavors in the international construction market and have made fruitful achievements: Contracting is rising on scale annually in terms of the number and type of contracts and turnover.However,the share of the international construction market by Chinese contractors is relatively small,characterized by low competitiveness at the bidding stage,low profit and sometimes even suffering great loss during execution of the works,which for one reason is due to inadequate understanding of the bidding documents.Thus,it is of great necessity to carry out a detailed study of bidding documents for international projects.This thesis focuses on the study of international bidding procedure,composition and analysis of international bidding documents,as is detailed in the following:Firstly,to summarize the causes of failure incurred by Chinese contractors overseas and point out the importance of accurate understanding of bidding documents by two cases: a motorway project in Poland and a railway project in Mecca.Secondly,to introduce the international bidding procedure and understand the purpose of each step involved,including bidding notice or invitation,prequalification,issuing bidding documents,bid submission,bid opening,bid evaluation,bid awarding and signing of contract agreement.Thirdly,to analyze the composition and content of international bidding documents,including bid invitation,instruction to bidders,conditions of contract,specifications,drawings,bill of quantities,form of bid,bid security,supplementary information and contract agreement.Fourthly,to find out the key parts of bidding documents to be studied by bidders,covering the correlation of different parts,prequalification requirements,signing and marking of bid,bid evaluation criteria,types of contract,method of making bill of quantities,quotation on works other than permanent,nominated subcontractor,price adjustment,liquidated damages,defect liability period,securities,insurance,method of payment,taxes,currency,technical requirements and drawings,bill of quantities,other factors influencing tender price,as well as other clauses involving higher risks for bidders.By the above detailed study,this thesis concludes that China's overseas contractors should do well in the following aspects before bidding an international project: adequate understanding of the difference between domestic and foreign bidding,careful study of bidding documents,full investigation of the site of the project and market for materials and equipment,and cultivation of management talent.This research is of some value for bidders to accurately calculate their bid price,raise competitiveness in international bidding,and predict and mitigate potential risks at the bidding stage.