OWNER’S TENDERING STRATEGY TO OBTAIN A QUALIFIED CONTRACTOR

By

Nguyen Duc Huan

 Abstract

             

In this report, I am going to present the tendering processes around the world which I have been learning in the Master class of Project Management at the Asian Institute Technology (AIT). These processes were updated in the tendering documents and in the governmental regulations of Vietnam, and have been applied to the projects in Binh Duong province. An example was the tendering strategy of the government to obtain a qualified contractor for the construction project to build the asphalted road from the intersection of Minh Hoa ĐT. 749b to Dau Tieng lake in Binh Duong province. In the end, the consulting company had chosen a suitable contractor to implement the project for the government who was also the project owner.

Executive summary

Rationale of research

This research has been conducted to identify strategies to obtain a qualified contractor.

Objectives of study

To study

Methodology  

The exploratory research method is used to review the literature and study the tendering process at different stages and case of asphalted road from the intersection of Minh Hòa ĐT 749b to Dầu Tiếng lake in Bình Dương province

Findings and conclusion

The problem is the difficulty to get a qualified contractor and help the contractor implement the project effectively which is expected by the owner in order to complete a project on time within the lowest cost budget with the highest quality and avoidance of risks. In order to choose a good contractor  who meets building infrastructure requirement, the owner has to open bidding to choose one who will build some of the main works or overall the works for the owner. The owner must have a good consultant who holds the tendering process to choose a good contractor.

For consultant,

To achieve the objectives that the owner or the representative of the owner needs, they must hold a bidding to choose a good contractor for the project. Holding a bidding process to choose a contractor is very difficult and spends a big amount of money and time for the owner because the owner has to follow a tendering process and procedures issued by the Government. In this project, holding the tendering process to choose a good contractor for the owner is the responsibility of the consultant.

The consultant holds the tendering process carefully in order to choose a good qualified contractor to implement the project. This contractor is the main contractor who will keep the project under control by the consulting supervisor. The consultant creates an equal opportunity in tendering for most of the contractors.

The tendering process is implemented by the consultant, and the consultant finds a good contractor by using the tendering strategy which includes:

·         Prequalification criteria: The consultant considers the technical ability, financial ability and experience of other contractors carefully. The owner considers the standard price and calculates the value of a contribution.

·         Tendering documents: The consultant checks carefully whether the contractors receive all of the tendering documents as well as the instructions in tendering.

·         Evaluation criteria: The consultant considers evaluation criteria which is appropriate with this project. Especially the consultant must consider the technical ability, financial ability and experience of the contractors closely.

·         Experience criteria: the consultant considers experience of the contractors to implement the project.

Recommendation

The owner expects that the project is not only fulfilled or completed with high quality within the estimated budget but also with some level of safety. In this tendering project, the owner hopes that a good contractor will take advantages over other weaknesses to implement the project with high quality and safety, on schedule, and within the estimated bidding budget.

However, technical ability score of the contractor is eighty-two (score decreased -18), therefore the owner should be more interested in some weaknesses of the contractor during the building process in the project, such as:

-          Construction methods (-3),

-          Quality of the types of supplies (-2),

-          Description of qualified technical solutions and reasons for each item (-2),

-          The level of human resources to meet construction requirements (-2),

-          Safety for surrounding buildings (-2), and

-          Critical path = 270 days (-7).

The most important factor is the critical path. If the contractor makes any mistakes which influence the critical part during the period of project implementation, he would have to complete the project later.

These are the very small weaknesses of the contractor, but the owner needs to take notes carefully so that the contractor could complete the project successfully.