What to do in negotiations?
- Clarify things
- ALWAYS pretend to think about it first or people will purposefully set high
3 Principles of Tender Evaluation
- Processes should be open & transparent
- No conflict of interest
- Confidentiality, integrity of non-disclosure
What does tendering being open & transparent mean?
When you tell people when tender open and close, you open and close at that time
What is method used in evaluation of tender bid?
Price Quality Method
Formula of Price Quality Method
Quality + Productivity + Price = Final Score (100%)
What does PQM stand for?
Price Quality Method
PQM is set by what?
Public Sector
What is PQM for?
- strives to be objective in assessing tenderers through point-scoring over a number of criteria
- translates qualitative/non-price attributers into quantities scores for tender evaluations
PQM Weightages
Quality = 5% to 30%
Productivity = 10%
Price = 40% to 60%
Evaluation of critical criteria need do what
- registration with local authority
- compliance with specifications
- contractor is not debarred from tendering for any government project
- attending tender site showround
other criteria to evaluate
- firm’s financial standby
- relevant track records
- technical & project management capabilities
- workload of firm
- method statement for risk assessment
steps in evaluation of tender bid
- verify content of Tender proposal
- seek clarification from tenderers
- detailed check on prices & rates in Bill of Quantities/pricing list
- check for compliance with form of Tender, Instruction to Tender & Conditions of Contract
- Forward relevant section of the document to the respective officer for evaluation
- Collate all views & prepare Tender Evaluation Report
All interested parties should be…
equally represented in the evaluation
Evaluation & recommendation should be carried out by how many people
2/more
Considerations of evaluation of tender
- If the critical criterion is not met, the offer should be rejected
- If the general criteria are not totally met, justification on the acceptance of the offer is necessary
- Comparison of the offer should be on an equitable basis, comparing like to like
- If none of the Tender Proposals can meet the stipulated criteria, then recommend with justification to abort
the tender - Partial offer can be considered if this is stated in the tender
who submit what in tendering?
- tender evaluation committee (TEC) submits Tender Evaluation Report (TER)
What TER recomment?
- Award to one tenderer who may not submit the lowest offer
- Award to more than one tenderer, that is partial award
- No award after evaluating all the tenders
- Abort the tender, and recommend re-tender with different specifications or
evaluation criteria
Things to consider in contractor selection
- Reputation
- Financial Stability
- Resources
- Scope of Work
- Availability
- Cooperativeness
Reputation
Proven successful record of type of work done
Financial Stability
- Willingness of suppliers to provide credit facilities & supply materials -> indicator of financial standing of contractor
- Length of time in business
Resources
- Physical
- Human
- Management
Physical Resources
- Business premise
Human resources in pjmca
- operative skills
management resources
- No. of qualifications of managerial & supervisory staff
- Extent of their technical know-how & experience
