AiTenderBid
Glossary

The Tender Terms, in Plain English

45 terms Malaysian contractors meet in every tender, from BQ to HIRARC.

BQ (Bill of Quantities)
The priced list of every item of work in a tender, with description, unit and quantity. The contractor fills in the rates, and the amounts add up to the tender sum.
Rate Build-Up
How a BQ rate is made: material, labour and plant costs per unit, plus wastage, plus overheads and profit.
OH&P
Overheads and profit, the percentage added to direct cost. AiTenderBid uses 8% as the company default unless you choose otherwise.
Take-Off
Measuring quantities from the drawings. AiTenderBid does an independent take-off and flags BQ quantities that differ by more than 5%.
SMM2
The Malaysian Standard Method of Measurement of Building Works, second edition (2000), sections A to W.
SMM3
The third edition published by RISM in July 2025 with CIDB and the Ministry of Works. 29 sections, adds IBS and MEP, and works with BIM.
CESMM2 and MyCESMM
Civil engineering methods of measurement: CESMM2 from ICE (1985, classes A to Y), and MyCESMM from CIDB.
NRM2
The RICS New Rules of Measurement for detailed measurement of building works.
Provisional Sum and PC Sum
Amounts in the BQ for work not yet defined (provisional) or for named suppliers and subcontractors (prime cost). Priced at the BQ figure or qualified.
CIDB Grade
The Construction Industry Development Board registration grade, G1 to G7, which sets the tender value a contractor may bid for, along with category codes such as CE (civil) and B (building).
Bumiputera Sahaja
A tender restricted to Bumiputera contractors only.
ePerolehan and MyProcurement
The Malaysian government's electronic procurement system and procurement information portal.
JKR / PWD
Jabatan Kerja Raya, the Public Works Department, a major public employer at federal and state level.
PWD 203A
The standard JKR form of contract for building works with quantities, used for many public projects.
PAM 2018
The Pertubuhan Akitek Malaysia standard form of building contract, 2018 edition, common in private projects.
CIDB 2022
The CIDB standard form of contract for building works, 2022 edition.
FIDIC
International standard forms of contract published by the International Federation of Consulting Engineers.
LAD / LD
Liquidated and ascertained damages: a pre-agreed sum per day (or week) of delay that the contractor pays for finishing late, as stated in the contract.
Bid Bond and Performance Bond
Guarantees from a bank or insurer that the contractor will sign if awarded (bid bond) and will perform the contract (performance bond).
Retention
A percentage held back from each payment and released on completion and after the defects period.
DLP
Defects liability period: the time after completion during which the contractor must repair defects.
EOT
Extension of time to the completion date, granted for qualifying delays.
Fluctuation
A clause that adjusts the contract price when material prices such as steel move.
Time Bar
A deadline in the contract after which a claim can no longer be made.
CAR Insurance
Contractor's all risks insurance covering the works during construction.
RFQ
Request for quotation, sent to suppliers and subcontractors to price part of the works.
RFI / Tender Query
A written question to the employer or consultant during the tender period, answered for all tenderers.
Addendum
A change to the tender documents issued before closing.
CPM (Critical Path Method)
The scheduling method that finds the longest chain of linked activities, which sets the finish date.
Float
How much an activity can slip without delaying the finish (total float) or the next activity (free float).
FS, SS, FF, SF
Programme link types: finish-to-start, start-to-start, finish-to-finish and start-to-finish.
Histogram
A chart of manpower or plant numbers over time, showing peaks.
ITP
Inspection and Test Plan: what is inspected or tested, when, against which standard, and whether it is a hold, witness, surveillance or review point.
Hold Point and Witness Point
A hold point stops work until released by the inspector. A witness point invites the client to attend.
HIRARC
Hazard Identification, Risk Assessment and Risk Control, scored on the DOSH likelihood times severity matrix.
DOSH
The Department of Occupational Safety and Health, Malaysia.
OSHA 1994
The Occupational Safety and Health Act 1994, amended by the OSH (Amendment) Act 2022, in force from 1 June 2024.
BOWEC 1986
The Factories and Machinery (Building Operations and Works of Engineering Construction) (Safety) Regulations 1986.
PQP
Project Quality Plan, the document that sets out how quality is managed on the project.
Method Statement
A step-by-step description of how a piece of work will be done safely and to specification.
Aluminium Formwork (Mivan)
A system formwork for walls and slabs that allows fast floor cycles on high-rise buildings, typically 4 to 7 days per floor.
IBS
Industrialised Building System: prefabricated and precast components assembled on site.
GFA
Gross floor area, used to benchmark cost and quantities per square metre.
SST
Sales and Service Tax in Malaysia. RFQ prices default to excluding SST.
Confidence Score
In AiTenderBid, a 0 to 100 score for each BQ item showing how its figures were obtained: green 75 and above, amber 50 to 74, red below 50.

Price Your Next Tender with an AI Bid Team

Start a free trial and run one live tender through it, or book a demo and we will walk through one of yours.