Quantity surveyors are very important in the tendering process. They have professional knowledge on contract and tax knowledge involved in the project to be conducted. They play a wide range of roles, one of them being tender analysis and agreement before the project begins. The analysis process must be driven towards obtaining value of the project being erected, the tax implications of tendering shares, and cutting down on costs involved. The process of tender analysis involves a series of factors. Learn some of the factors involved to guide you on future projects.
Submission of Tenders
The first stage involves submission of tenders for evaluation to take place. Evaluation of all submissions will eventually lead to selecting the preferred bidder. Assessments of bids is generally based on a series of pass or fail criterion before settling for a single bidder. For instance;
- A decision must be made regardless of whether the evaluation score is entirely based on technical basis. Proposals made by bidders must be deliverable, feasible, and robust, based on reliable technologies. It must meet all the set technical requirements and ensure that the financial and cost structures are consistent with technical solutions applied.
- Reflecting at the proposed project management is an important factor of the process. The bidding body must come out as a cohesive entity rather than a series of companies coming together for the purpose of bidding.
Invitation to Tenders
There are cases where one bidder might submit their tender even after authority offering invitation to tender by shortlisting potential candidates. In this case, a good procurement practice proceeds with the following actions;
- If the interest of the bidder was too low because of certain deficiencies within the tender documents including the project specifications, it can be remedied and appropriate solutions like repeating the tender procedure on a better footing initiated.
- If the bid is made to make bidders believe there would be stiff competition, an appropriate solution would be to proceed with the procurement process to the point where you consider the sole bidder as the winner. In this case, the tender should fully comply and meet the entire pass or fail criterion of evaluation.
Tax Implications on Tendering you Shares
A major factor to be considered in this case is the actual price or value you will get when you give out your shares in a certain area. As an investor, you may be eligible for concessional or lower tax rates by the sales of your shares in open market on existing stock exchange.