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Contract administration

3 replies [Last post]
Mon, 2003-11-03 02:19
Usman Bakundi
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Bid evaluation

Are there specific decision factors that would guide an evaluator to arrive to an acceptable contractor in commercial terms other than the bottom line.

I wonder if a standard decision factors such as insurance, tax etc are not equally important.

Please discuss

Usman Bakundi
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Replies

Fri, 2006-12-22 10:07
#1
Mel Daniels
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I think it would also depend on the type of work/contractor as well.

I have experienced in the utilities that their decisions at times were based on:
1. Past Performance *not sure if it does anymore, but this used to relate to a "credit" if you completed a project so many shifts/days early they gave it a dollar value and that value was "deducted" from your total when it when to consideration phase.*

2. Self insured or not

3. Profit Markup

4. Safety Record

5. Tooling inventory *anyone can say they can do the work, but if you dont have the tools, its pointless to offer*

6. Staffing *who will be running the project*

7. How much time you are willing to shave from your overall schedule.

Not many of them will admit it, but it is amazing just what truly influences IN THE REAL WORLD whether a contractor gets a project or not.
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Wed, 2006-12-20 07:30
#2
Peter Holroyd
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Joined: 6 Jun 2005
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Groups: Petro-Chem / Oil & Gas
Go for the 2 stage approach
If the contractor doesn’t pass the Quality and HSE threshold don’t even open the financial package.
Its also a good idea to have a contractor comparison rating based on previous jobs
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Tue, 2006-12-19 13:40
#3
Devamalya De
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Joined: 20 Oct 2005
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There are a lot of criteria - infact you can assign points to each of the criteria as follows:

1)General Suitability of Proposal/Presentation - POINTS ’5’
2)Provided Organization and Work Plan - POINTS ’10’
3A)Total Lump-sum Fee - POINTS ’15’
i)Tabulate Lump sum Fee
ii) Tabulate % to lowest on a scale of 0 to 15 (giving 15 to lowest and progressively less to others by as much % as they are higer above lowest)
3B)Average Man-month rate - ’15’
i) H.O. Support - % to lowest as above on a scale of 5
ii) Site assigned staff - % to lowest as above on a scale of 10
4) Extra Monthly Fee - ’5’
% to lowest on a scale of 0 - 5
5)Past experience - ’30’
i) In construction supervision - 10
ii) In relevant project - 20
6) Personnel experience - ’20’
i) Experience in similar projects on a scale of 0 - 10
ii) Experience with international companies on a scale of 0 to 10

TOTAL POINTS - 100

Compute TOTAL POINTS for each contractor and rank them as per points - maximum POINTS rank 1, 2nd maximum POINTS rank 2 and so on.

Hope, this helps. You can safely rely on whatever I have given as the same is being used by a frontranking PMC in the world.

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