TENDERING PROCESS AND PRESENTING REPORTS

 

 

 

 

 

TENDERING PROCESS AND PRESENTING REPORTS

 

 

 

 

MODULE NAME

SESSION

STUDENTS NAME

STUDENTS ID

NAME OF FACULTY

DATE

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

INTRODUCTION………………………………………………..3

PROCEDURE FOR CHOOSING BEST CONTRACTOR……………………..3-4

AWARDING BEST TENDER PROSPECTED CONTRACTORS…………………5

OMAN TENDER PROCESS………………………………………………………….7

PROS OF OMAN TENDERING PROCESS……………………………..…………7

CONS OF OMAN TENDERING PROCESS……………………………………….7

 

 

 

 

 

Introduction

Contract and tendering are essential when it comes to construction. Contract management is vital in the assistance of managing obligations in a very efficient way. The contract acts as a time-saving contract in that the two parties involved will have agreed to come to a consensus concerning the period to complete the construction. Furthermore, the procedures and strategies to be availed are carefully planned because of the same document and management.  The contract usually states how the parties involved are the contractor, and the tenderers are to relate. The party under the contract usually has resources to facilitate the activity to their liking.

There are times when the contracts agreed, and the tenderers’ resources may fail to get implemented. One party may fail to accomplish what was agreed in the contract, so the law takes its course. For this reason, then a tender is not given to any party. Still, certain aspects are considered that the tender award is given to a party that can implement the contract within the stated period agreed by both parties.

In this report, then the insight of the contract, documentation will be greatly be discussed. The necessity of choosing the best contractor under well-enabled procedures should be followed. Several documents should be submitted to the tenderers alongside the tender document (Wimalasena 2020, pg. 241). This case enables the resource party to get the finest contractors’ failure to which the value of resources will be eroded.

For the construction of the four-story building by the Bryan Consultant Company will have to put in place the methods of choosing the best contractor to implement their project. The client who is the Bryan Consultant must put in the regard that for the success of their projects, then a full capacity contractor must be selected.

Principle of choosing the best contractor

In project management, coming up with the best contractor is usually a nut-cracking process. It usually has to see most companies and organizations go deeper into the proposed contractors and trying to find out exactly what they entail and their history at large (Adi et al. 2019, Vol. 258, p. 02013). It is usually a risk-taking process. There are various methods of choosing the best contractor with the best monetary value that fits one’s pocket. The principle methods include the Least cost method, Qualifications only method, Quality and cost-based method, Sole source, and the static budget method.

1. The principle of the least cost method

This method of choosing a contractor is engulfed in terms of price. After reviewing the costs of various contractors fit for the project, the client is usually subjected to one among them who offers the lowest cost in terms of the completion of the project. The award-winning criteria of the tender go for the contractor that sets is the cost of completing the project low than the others. The method, however, is not suitable when it comes to the long-run implementation of the project. It is because the low price caused by the contractor may not include the completion of the project. So it the risk of any project change will not be addressed in the contract documents.

2. The principle of Qualifications only method

This method requires that the contractor is chosen in the aspects of only the qualifications he has and not any other thing. The aspects that may be made to decide on the qualifications may include the following, the project’s methodology. The client may ask the contractors to come up with the method in which they will use to accomplish the project, and the method will include what they will need in terms of the resources their working hours daily, and the period they will take to complete the project (Kusaka, 2020 pg. 67). This methodology given by the contractor is evaluated based on Quality by the client on the other side, even if it means more days of the same.

Another aspect that the client considers is the referees and their past experiences of the work underway. Contractors will have to avail of their curriculum vitae to win the tender; their experience in terms of their works can be used to evaluate their performance.

3. Principle of quality cost and Based method

This method requires that the client choose a contractor in terms of the quality assessment regarding work experience, previous works, project methodology, and the referees. The salutation of that will then go hand to hand with the cost of implanting the project to completion. The client here then, when choosing a contractor, will choose the one with the best quality experience and the cost that is offered, usually the one with the lowest win the tender award. The client basing on each method’s aspect will award the tender to the contractor with 100% value when assessing the contractors (Smith, 2017, pg.45). This case is one of the best criteria I will advise any client to adapt to when selecting a contractor as it does not only give Quality but also it saves costs.

Procedure for awarding the best tender

The tender procurement process will follow the following process from the inception stage to the final awarding tender stage.

Form a procurement team- formation of the procurement, which will develop the tender and the evaluation criteria to use. The team will then invite the various able contractors interested in the team to moderately consist of human resource assistants and the financial department officers (Fani et al. 2018, 1-28.). A senior management officer of the company will also be involved.

Develop a tender process and criteria- The team will then agree on what the procurement process should involve. Those are the mandatory requirements and the other ones.

Setting up the Pre-qualification questionnaires– This questionnaire will be purposefully be made to invite the potential contractors interested in the project.

Issue Tender- The contractors are interested in being put down with few questions asked.

Briefing meeting- the meeting will be held to clarify the requirements of the project.

Initial evaluation- The panel team will start marking the proposed bid to their agreed matrix of evaluation.

Short-listing –The panel will use its criteria to come up with comparatively suitable contractors.

Interviews- The shortlisted contractors will be visited to ascertain their capacity and interviewed.

Selection- The team with its capacity will get its contractor after the above criteria.

Negotiations and tender award– The team may negotiate with the contractor if possible and finally award them the tender to seal up the deal.

The other document to be submitted alongside the tender document is the contract document and the tender instruction document. The contract document will lawfully show that client and contractor have agreed to a relationship that will bind the contractor to complete the project. If he does not, then legal actions may be subjected to him (Stein et al. 2018, Vol. 170, p. 01068). The tender instruction will give guidance while on the site.

Oman tender process.

1984 saw Oman law reinforcing certain laws to do with the tendering process adapted for specific projects (Antoniou et al. 2017, pp.492-508.). The procedure is as below,

• Tenders posted are required with a tender bond this is. If a successful tenderer is got, then a bank registered specifically in Oman will issue a performance bond for indemnity in insurance.
• Tenders involving international tenders will require pre-application since they are limited tenders in the category.
• When the tender is from an international state, then the company concerned must be given an email address where communication will be done based in Oman.
• For tenders’ opening in the bidder’s presence, the regulation allows for the details before a tender is delivered and the exchange rates did in Oman in terms of Rials.

Pros of the Oman tender process

• It is selective, thus saves time as no interviews and many other unnecessary trolls are made.
• Since there are pre-qualifications, then only able and known contractors are invited for the project.
• Assured Quality is guaranteed as the prospected contractors are selected.
• It is necessary, especially with complex projects.

Cons of the Oman tendering process

• The process of tender awarding can be excluded as only the known companies are chosen; thus, the starting companies may not be known (Farsi, 2017 pg. 23).
• Monopoly characteristics like higher prices can be present as there are limited options for contractors that are known.
• The process can be biased because a certain contractor did not get the project award tender may be disclosed.
• The potential for innovative skills may be reduced.

Instruction to tenderers

• Tenderers must complete the project awarded to them by the dossier; no incomplete offers will be accepted (Engineer, 2017, 2, p.7.)
• The meeting clarification should be adhered to, and the tenderer must visit the site for inspection.
• The tenderer must give out explanations concerning the tender documents.
• The works to be executed or financing
• Only one tenderer will be suited for a tender at a go.

Conclusion

Construction projects require serious contractors to gauge in the projects. Suppose the tender dossier makes a mistake to award a tender without the crucial implementation of the process. In that case, it means that the project may go uncompleted, and the resources that were put into it may go to waste. The tender dossiers then should be very ken when it comes to issuing out of tenders. In my opinion, the best aspect to look out for is both Quality and cost. The Quality and the cost is what the tender dossier should consider in that the money given out should be worth what the dosser needs in terms of service.

Bibliography

Kusumarukmi, E.I., and Adi, T.J.W., 2019. The public tendering process for construction projects: problem identifications, analysis, and proposed solutions. In M.A.T.E.C. Web of Conferences (Vol. 258, p. 02013). EDP Sciences.

Wimalasena, N.N., and Gunatilake, S., 2018. The readiness of construction contractors and consultants to adopt e-tendering. Construction Innovation.

Kusák, J., 2020. Optimalizace procesu výběrového řízení subdodavatelů stavební zakázky: Optimization of the Tendering Process of Construction Order Subsupplier (Doctoral dissertation, Brno University of Technology).

Smith, A.J., 2017. Estimating, Tendering, and Bidding for Construction Work. Macmillan International Higher Education.

Antoniou, Fani, and Georgios N. Aretoulis. “Comparative analysis of multi-criteria decision-making methods in choosing contract type for highway construction in Greece.” International Journal of Management and Decision Making 17, no. 1 (2018): 1-28.

Valitova, I., Trofimova, T., Simankina, T., and Stein, E., 2018. Risk assessment related to the choice of contractors performing the job. In M.A.T.E.C. Web of Conferences (Vol. 170, p. 01068). EDP Sciences.

Antoniou, F., and Aretoulis, G., 2019. A multi-criteria decision-making support system for the choice of method of compensation for highway construction contractors in Greece. International Journal of Construction Management, 19(6), pp.492-508.

Thomas, D., 2017. Construction Contract Dispute Resolution in the Sultanate of Oman. Const. L. Int’l, 12, p.26.

Farsi, F.S.A.A., 2017. An Open Source Social App for Events Management in Oman. Journal of Student Research.

Supply, I. and Authority, S., 2017. Invitation to Tender. Engineer, 2, p.7.