Module 1: Managing Project complexities in

Tender Processing

Common Queries Before Project

Implementation

Identifying project objective

& framing scope of work
Defining what is needed is the first step toward
establishing a project timeline, setting of project
goals and allocating project resources. These steps
will help you to define the work that needs to be
done - or in other words, define the scope of the
project. Once this is defined, you'll be able to
allocate tasks and give your team the direction they
need to deliver the project on time and on budget.
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Understand the project objectives

In order to define the scope of a project, it is necessary
to first establish the project objectives.
The objective of a project may be to produce a new
product, create a new service to provide within the
organisation, or develop a new bit of software. There
are any number of objectives that could be central to a
given project - and it is the role of the project manager
to see that their team or contractors deliver a result
that meets the specified functions and features.
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Understand the project objectives

Example: Garment Park
Objective: Build garment manufacturing unit?
Ans: Facilitate Garments Manufacture.
It not only includes buildings or roads. It needs to have
facilities such as iron free soft water supply, steam
generators etc. with sustainable mode of operations.
THUS THE SCOPE GETS DIVERSIFIED and Procurement
process complex
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How do you define the project scope?

The work and resources that go into the creation
of the product or service are essentially the
things that frame the scope of the project. The
scope of the project outlines the objectives of the
project and the goals that need to be met to
achieve a satisfactory result. Every project
manager should understand how to define the
project scope and there are some steps that can
be followed when doing this.
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Steps to define the project scope?

Identify
Project objectives: Facilitate Garment Manufacture

Goals: Create sustainable infrastructure

Sub-phases

Assess requirement
Create Facilities
Sale modules created
Establish community to take care of infrastructure created

Steps to define the project scope?

Tasks

Study target market requirement

Design Facilities
Build Infrastructure
Marketing of the modules
Design operations modality post handover

Resources
Fund
Materials
Manpower
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Steps to define the project scope?

Budget : Allocate resources to task heads
Schedule: Plan delivery

Steps to define the project scope?

Once you've established these things, you'll then
need to clarify the limitations or parameters of the
project and clearly identify any aspects that are
not to be included. In specifying what will and will
not be included, the project scope must make
clear to the stakeholders, senior management and
team members involved, what product or service
will be delivered.
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Tendering
The objective of tendering is to select a suitable contractor at an
appropriate time and obtain from him an acceptable offer upon
which a contract can be let.
What is Tender?
Tender is an offer which incorporates the sum of money, time and
other conditions required to carry out the contract obligations in
order to complete a project or a part of it consisting of specified
works.
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Tender Types
Generally there three (3) types of tendering
used:
a. Open Tendering
b. Selective Tendering
c. Negotiated Tender

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Tender Types

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Tender Types

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Tender Types

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Tender Types

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Tender Types

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Tender Types

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Tender Types

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Tender Types

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Tender Types

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Selection of Contractor
Based on degree of competition: Competitive Tendering
i. Open Tender / Open Competition
ii. Selective Tender / Selective Competition

Negotiation

Other Variables: continuity & stage or time of calling tender

i. Serial Contract
ii. Term Contract
iii. Fast-Tracking
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Selection of Contractor
Methods of Selection

Competitive

Open

Selective

Negotiated

Others

Serial

Pre-Qualification
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Selection of Contractor
Factors to be considered when deciding on the method:

The building type & size

Nature & complexity of projects
Method of construction
Extent of completion of design document
Time available before a start on site
Time required to complete the project
Financial resources of the client
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Tender Processing

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Tender Processing

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Setting Qualifying Criteria

CVC Guidelines
The prequalification criteria is a yardstick to allow or disallow
the firms to participate in the bids. A vaguely defined PQ criteria
results in stalling the process of finalizing the contract or award
of the contract in a non-transparent manner. It has been noticed
that organizations, at times pick up the PQ criteria from some
similar work executed in the past, without appropriately
amending the different parameters according to the
requirements of the present work.
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Setting Qualifying Criteria

CVC Guidelines

A.

For Civil/Electrical Works

1.

Average Annual financial turnover during the last 3 years, ending 31st March of the previous financial year, should be at least
30% of the estimated cost.

2.

Experience of having successfully completed similar works during last 7 years ending last day of month previous to the one in
which applications are invited should be either of the following: Three similar completed works costing not less than the amount equal to 40% of the estimated cost.

or
Two similar completed works costing not less than the amount equal to 50% of the estimated cost.

or
One similar completed work costing not less than the amount equal to 80% of the estimated cost.

3.

Definition of similar work should be clearly defined.

In addition to above, the criteria regarding satisfactory performance of works, personnel, establishment, plant,
equipment etc. may be incorporated according to the requirement of the Project.

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Setting Qualifying Criteria

Goal

To select a Contractor for

Building Infrastructure

1st Level Criteria

2nd Level Criteria

Alternatives

Capability

Past
Experience

Past
Performance

Contractor
A

Financial
Capacity

Availability

Resources

Contractor
B

Risk

Current
Workload

Contractor
C

Cost

Lowest
Cost

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Setting Evaluation Criteria

Cost Based
Quality Based
Quality and Cost Based

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Selection Step - Prequalification

This is one of the most commonly used selection systems.
PreQualification

Technical
Evaluation

Interested firms, consortia, or

SPVs submit experience and
financial capacity details
Contracting Authority assesses
these details
Short list with three to six firms
Only short-listed firms can submit
a proposal
Bidders submit proposals

Financial
Evaluation

Selection Step Technical Evaluation

This is one of the most commonly used selection systems.
Pre- Qualification

Technical
Evaluation

Bidders submit Technical Proposals,

showing how they would run the contract
Bidders provide information on Financial
and technical ability
Proposals assessed using technical
evaluation criteria
Bidders have to pass a technical
threshold to be eligible for selection (e.g.
scoring at least 80 percent on technical

Financial
Evaluation

Selection Step Financial Evaluation

This is one of the most commonly used selection systems.
PreQualification

Technical
Evaluation

Financial
Evaluation

Financial proposals only assessed for those

bidders who have been evaluated against
technical criteria and have passed the technical
threshold
Financial Criteria can be very simple, as
following examples:
Bidder asking for lowest tariff (Concession, leaseaffermage, BOT etc)
Bidder asking for Lowest Fee (Management
Contract)

Selection Criteria Summary

This is one of the most commonly used selection systems.
PreQualification

Technical
Evaluation

Financial
Evaluation

The Contracting Authority decides whether to follow this or some other approach. The
right selection procedure is crucial to get the right Operating partner.
It sets the technical and financial mechanisms and scoring procedures.
It decides the relationship between technical and financial evaluation and the weight given
to results of technical and financial bids.
Evaluation processes and scoring principles and weightings have to be developed before the
bidding process starts
The broad principles of the evaluation framework have to be communicated to the bidders
Training should be provided to staff reviewing the bids, to ensure consistency

Managing Bids Process Steps

The Operator Selection Process involves 5 key steps, and a clear Bid
Management Structure needs to be established to implement these

Market
Sounding

Notify &
Pre Qualify

Bidding

Bid
Evaluation

Negotiatio
n

Selection of Bidders - Review

SELECTION METHOD
Procurement Issues
SELECTION CRITERIA

MANAGING BIDS

Choice of Bid
Process
Market
Sounding

Notify &
Pre Qualify

Bidding

OTHER
ISSUES
Bid
Evaluation

Negotiatio
n