CONSTRUCTION TECHNOLOGY

& PROJECT MANAGEMENT

UNIT- III
CONTRACT MANAGEMENT

LECTURE I

18-04-2017
 ASSIGNMENT QUESTIONS
1. Using statistical data, brief on fire and
electric hazards in industries in India.
2. Enumerate OSHA and Indian standards
for Safety and Health
3. Occupational Safety in Indian
Construction Industry , express your
view in not less than 300 words.
4. Guidelines to be followed at
construction sites to ensure fire and
electric safety.
TENDER
Offer to do the work for a certain amount
of money (firm price), or a certain amount
of profit (cost reimbursement or cost
plus).
Tendering is the process of making an
offer, bid or proposal, or expressing
interest in response to an invitation or
request for tender.
Bidding is the process of submitting a
proposal (tender) to undertake, or
manage the undertaking of a
construction project.
TENDER
Organizations will seek other
businesses to respond to a particular
need
Select an offer or tender that meets
their needs and provides the best
value for money.
Generally based on a bill of quantities,
a bill of approximate quantities or
other specifications which enable the
tenders attain higher levels of
accuracy, the statement of work
TENDER PROCESS
Seven Major steps
1. Determine the type of tender
Open Tendering
invitation to tender by public advertisement.
no restrictions placed on who can submit a tender,
suppliers are required to submit all required information
evaluated against the stated selection criteria
Select Tendering
open to a select number of suppliers
short list sourced from an open tender
compilation of businesses that the organization has
worked with previously
TENDER PROCESS
1. Determine the type of tender
Multi-stage Tendering
used when there are a large number of respondents
at each stage in the process, the suppliers are culled to
those who are most suited
Invited Tendering
organization contacts a select number of suppliers
directly and requests them to perform the contract
generally used for specialist work, emergency situations
or for low value, low risk and off the shelf options,
TENDER PROCESS
After selection tender may be issued through
Expressions of interest (EOI) - used to shortlist potential
suppliers before seeking detailed offers.
Request for information (RFI) - used in the planning stage
to assist in defining the project, however, not used to
select suppliers.
Request for proposal (RFP) - used where the project
requirements have been defined, but an innovative or
flexible solution is needed.
Request for quotation (RFQ) - invites businesses to
provide a quote for the provision of specific goods or
services.
Request for tender (RFT) - an invitation to tender by
public advertisement open to all suppliers.
 TENDER PROCESS
2. Request for tender is prepared
Outlines what is required, the contractual
requirements and how you should respond.
Description of the goods and services to be
procured
Conditions of tender
Evaluation criteria
Submission content and format
Process rules and information: this may
include things such as the deadline for
submission
Conditions of Contract: Draft contract
conditions
TENDER PROCESS
3. Tenders are invited
identify organizations and
government agencies likely to need
your products and services.
contact organizations regularly to
find out if there are any future
tender opportunities
Government agencies and
departments often provide a list of
future tenders on their websites
Open tenders are published in
newspaper advertisements
 TENDER PROCESS
4. Suppliers respond
After obtaining necessary
documentation, suppliers
Attend any pre tender briefing
sessions being conducted
Clarify any uncertainties
Plan their response
Prepare response
Submit response in the right format,
on time and at the right location
TENDER PROCESS
5. Evaluation and selection
The bid analysis team( Procurement Project
Team), assess all components of all bids.
To ensure the bid is compliant, and that all
parts are complete, then to compare and
assess all parts, to identify the best value
for money bid overall
The evaluation procedure occurs in three
distinct stages; Financial, Technical and
Capacity Assessment