How Government Tenders Are Evaluated in Malaysia (Simplified Guide)

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🛠️ How Government Tenders Are Evaluated in Malaysia (Simplified Guide)

When we talk about tender kerja kerajaan, most people ( may) only know “lowest price wins.”
But actually — nope. It has to go more than that.
There’s a whole process behind the scenes, and not everyone passes the early stages.
Here’s a simple explanation based on the standard Kementerian Kesihatan Awam, Perumahan dan Kerajaan Tempatan (KPKT) format that most councils use across Malaysia.
(This is a general reference only — not referring to any specific council or project.)


🔹 Part 1: Mandatory Requirements (Saringan Wajib)

This is the pintu masuk.
If fail here — terus GAGAL, tak perlu pergi technical or financial stage.

Usually, the tender committee checks:

  1. Tender form & summary – properly filled, signed, sealed, no arithmetic errors.

  2. Contractor documents – UPKJ/PKK license, CIDB certificate, Bumiputera status, business address, etc.

  3. Financial documents – latest 3 months’ bank statement (certified by bank).

  4. Minimum capital requirement – at least 5% of tender value available or allocated.

  5. Tender price range – not too high (>35% of estimate) or too low (<75% of estimate).

If all is okay → LULUS to the next stage.
If even one missing, → automatically disqualified.


⚙️ Part 2: Technical Evaluation (Penilaian Teknikal)

Here’s where your real company strength gets tested.
No more tick-box game — this is about capability, manpower, record, and experience.

Typical items checked:

No Criteria Weight (%)
1 Company Profile 10
2 Resource & Management Capability 10
3 JKR-Registered Sub Contractors (if any)
4 Machinery, Equipment, Transportation 10
5 Performance Record (CORRIS) 15
6 Work Experience 55

Passing mark: 35% or above → Lulus Teknikal.
Below that → Gagal Teknikal, no need to open your financial envelope.

So basically, even if your price is cheap, but you have a poor record or weak resources — habis lah.


💰 Part 3: Financial Evaluation (Penilaian Kewangan)

Once you pass the technical, then only your duit story gets checked.

No Criteria Weight (%)
1 Financial Standing (Bank Statements) 9
2 Bank Report / Financial Institution Letter 2
3 Financial Capability (% Minimum Modal) 9

Passing mark: 30% or above → Lulus Kewangan.

If you pass both Technical and Financial — only then your tender price gets compared.
The committee may then decide based on value for money, work history, or capacity to deliver.


🧮 Final Scoring Formula

Final Marks = (Technical Marks × 70%) + (Financial Marks × 30%)

Example:
If you score 60% Technical and 50% Financial →
= (60×0.7) + (50×0.3) = 57% Final Score

Depending on council rules, top-ranked bidder may still be cross-checked for reasonableness and past performance before award.


🧾 Part 4: What Contractors Should Learn

Most small contractors fail not because of price, but because of missing documents or weak technical file.

Tips:

  • Keep your UPKJ, CIDB, and bank statements up to date.

  • Always prepare a neat company profile with project photos and manpower list.

  • Keep your CORRIS record clean — a single bad report can drag you down.

  • Don’t undercut price too much; evaluators will see it as unrealistic.


🪶 Final Note

This guide is shared for educational reference only.
It’s based on standard Malaysian tender evaluation formats used by ministries and local councils — not specific to any particular district or project.

If you’re new to tendering, use this as a checklist before submitting your bid.
At least, when your price is rejected, you’ll understand why. 😄

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