Bidding and Bid Evaluation

Bidding and Bid Evaluation Client’s Processes & Procedures

“… for every contract there is the optimum bidder who is not only capable of fullling the Clients’ reuirements in terms of time! uality and ris" but also in respect of cost is also willing and able to submit a bid lower than any competitor# competitor# $ fundamental goal of any competitive bidding system is to reveal the identity of this optimum bidder and determine the bid price#

“… too many clients are undiscriminating and still euate price with cost! selecting designers and constructors almost e%clusively on the basis of tendered price# his tendency is widely seen as one of the greatest barriers to improvement# i mprovement# he public sector! because of its need to interpret accountability in a rather narrow sense! is often viewed as a ma'or culprit in i n this respect#(

“… for every contract there is the optimum bidder who is not only capable of fullling the Clients’ reuirements in terms of time! uality and ris" but also in respect of cost is also willing and able to submit a bid lower than any competitor# competitor# $ fundamental goal of any competitive bidding system is to reveal the identity of this optimum bidder and determine the bid price#

“… too many clients are undiscriminating and still euate price with cost! selecting designers and constructors almost e%clusively on the basis of tendered price# his tendency is widely seen as one of the greatest barriers to improvement# i mprovement# he public sector! because of its need to interpret accountability in a rather narrow sense! is often viewed as a ma'or culprit in i n this respect#(

Procurement )b'ectives

Procurement / ,trategic -mportance 

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 he introduction of leading edge concepts! for e%ample! best practice benchmar"ing! total uality management and supply chain concepts etc#*  echnological comple%ity resulting in specialisation reuiring organi+ation to purchase goods from those with specialist e%pertise*

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Central & ,tate government policies & legislations*

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-ncreasing recognition of the nite nature of resources*

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-ncreasing proportion of revenue spent e%ternally*

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.ewer but larger suppliers* and

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-ncreasing environmental awareness#

Procurement ob'ectives 

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Purpose of procurement 0 meet the user1s reuirement 2euirement 0 specic level of uality or standard of service 3need! cost0e4ectiveness and a4ordability5 E%pressed in terms of output and performance 3to avoid favouritism5 ,pecied by reference to recogni+ed standards! where relevant! ma"ing provision for euivalents

To purchase the right quality of material, at the right time, in the right quantity, from the right source, at the right  price

9uality6Product 

-s defect free on delivery6completion

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7as a reasonably e8cient running cost

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7as satisfactory durability

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-s aesthetically pleasing

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7as undergone value analysis6engineering

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-s innovative / that is! it incorporates original design uality

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-s sub'ect to satisfactory guarantees and after sale service

 ime6programme 

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 imely delivery6completion Certainty of completion date and other time related estimates

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Early commencement of wor"6fabrication6manufacture

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:esign proposals to be submitted e%peditiously

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2apid rectication of defects

Cost 

Certainty of cost estimates

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;alue for money

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Ease of accountability

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Competition / lowest possible tender

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)btaining cost certainty or reduction in ris" of cost overrun 2ealistic maintenance and running costs

=eneral issues 

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 he desire to be actively involved and informed during the life of a pro'ect $ clear allocation of responsibilities6single0point responsibility .le%ibility to change design during production  he need for positive and constructive advice from consultants6 Contractors .ully motivated and co0operative pro'ect team / no con