psc-an #1 tender process brief
TRANSCRIPT
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The Project Procurement Plan
Advice Note #1
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Definition
Project Procurement Plan (PPP)
represents the procurement and management
strategies of the Phase 2, Langkawi project team
in fulfilling the project and business objectives in
the most cost effective manner.
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Procurement System
The chosen procurement system determines
the roles,
relationships,
shapes the values and
style of the project management,
allocation of risk,
the design strategy, employment of consultants and contractors, and
legal implications.
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Intent of PPP
The intent of the Project Procurement Plan, and theproject team is to:
Engage the appropriate resources at the right time
Evaluate options to maximise schedule and minimise cost
Execute the pre-project planning process for a No-ChangeOrder Philosophy Project
Leverage off project team relationships with thecontracting and supplier community
And assist in conducting an on-going value engineeringprocess
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Basic Strategy
Develop a Procurement Plan Identify team members
Define Roles & Responsibilities
Develop project strategy
Target resources to meet project requirements
Consider and evaluate Owner/Supplier Agreements andEquipment Supplier Agreements and benefits.
Distinguish goods and services that are mandated to bewithin standing Owner/Supplier Agreements.
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Basic Strategy
Establish Change process and procedures
Identify Owner manufactured products which are mandated,and which are to be encouraged.
Qualify / Pre-Qualify works, materials and services asrequired.
Implement procurement process:
Sole Source Negotiations Price Agreement Purchases
Competitive Bids
Alternate Sourcing Techniques
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Basic Strategy
Evaluate Procurement Process
Compare expenditure to project budget and
estimated allotment.
Perform Financial Qualifications, if required.
Award contract for works, materials and services
Develop Quality Assurance procedures and maintainQuality Control documentation.
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Procurement Strategy
PSC will be responsible for project controls, procurement, and delivery ofworks, materials and services.
PSC will be responsible for:
project oversight
obtaining project authorization
corporate accounting
Coordinating Project into Site Plans
PSC will be responsible for providing corporate guidance for procurementstrategies to meet project objectives.
Consultants will be responsible for providing design documents to meetproject objectives through the prescribed procurement strategies.
TMC will be responsible for participating in the conceptual planningprocess to define and maintain project objectives and scope through theproject life cycle.
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TENDER PROCESS
Selection of most appropriate procurementmethod
Development of tender lists
Preparation of tender documentation Invitation of tenders
Submission of tenders
Opening of tenders
Evaluation of tenders Acceptance of tender
Award of contract
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PROCUREMENT SYSTEM
The main generic types of procurement
system used in Malaysia are :
Traditional path
Management paths
- Management Contracting
- Construction Management
Design & Build/Turnkey
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Conventional Approach
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Advantages
Understood by most clients and enables contractors togive their most competitive price as the risk on thecontractor is well understood and defined.
Architect has considerable freedom to conceive anddevelop the design without excessive time or economicpressures, provided the cost ceiling is not exceededand the clients requirements are generally satisfied.
The system makes it possible for the architect tointroduce consultants and other experts to advise ordesign sub-system of the project
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Advantages
Easy comparison of tender received. Gave a goodbasis for measurement and calculation of interimvaluation payment to contractor. Allows easycalculation of variation orders.
Works can be phased out in packages so thatconstruction could commence early on site.
Provided that the design has been fullydeveloped at time of tender, the financialcommitment is reasonably established
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Conventional Approach
Conventional Approach
Construction
Design
Time
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Tendering Stages
Suitable listof
Contractors
InterviewPotential
Contractors
IssueTender
DocumentsReturn
DocumentsOpen
TenderEvaluateTender
Negotiate AWARD
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Management Contracting
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Construction Management
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PRE-QUALIFICATION OF TENDERERS (Part I)
START
Necessary to Pre-
qualify suitablecontractors ?
Prepare Pre-Q advertisemnent
Issue Pre-Q document
Yes
Yes
No
Yes
No
Is there a
Consultnts
recommended
list?
Is there an
Employersrecomended list?
Compile and approve listInitiate advertisemnent
No
Prepare & submit Pre-Q document
Receive & open Pre-Q document
Less than
minimum
number?
BA
Advertise again? Yes
No
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PRE-QUALIFICATION OF TENDERERS (Part II)
Undertake interview/ clarifications & re-
evaluate
Yes
Yes
No
Hold interview/
clarificatin
Prepare recommended list of
contractors
A
Yes
Yes
B
Undertake evaluation of
submissions
Less than
minimumnumber
meeting
criteria?
Can criteria be
modified?
Less than
minimum
numbermeeting
criteria?
No
Submit final list to employerNo
Need to re-
advertise?No
Employer approves list
STOP
Yes
No
Yes
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TENDERING PROCEDURE
START
Tender
adverti-
sement
Prepare and approve
advertisement
Initiate advertisemnent
Issue tender document
Hold site visit
Compile list of short-listed
tenderers
Is site visit a
pre-requisite
Approve list
RFIs/ RFCs Issue clarifications
Hold mid-bid
meetingHold meeting
Extend period
Issue addendaIssue tender
addenda
Extend
tendering
period
STOP
Yes
Yes
Yes
No
No
Yes
No
No
No
No
PSC
PSSC
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TENDER PROCESS
TENDER
DOCUMENTATION
ISSUED
PRE-TENDER ESTIMATEPERMISSION TO
GO TO TENDERMID-TENDER
INTERVIEW
CLARIFICATIONS
TENDER RETURNED
& OPENED
SUBMIT TENDER
EVALUATION
REPORT
ISSUE LETTER OF
ACCEPTANCE
PREPARE TENDEREVALUATION REPORT
TENDER PROCESSPREPARATION OF
TENDER DOCUMENTSEMPLOYER
APPROVAL
TENDERCLARIFICATIONS
PREPARATION OFTENDER SUBMISSIONS
QUALITY CONTROL
UPDATE COST PLANS
AGREE LIST OF
TENDERERSESTABLISH
EVALUATION
CRITERIA
APPOINT
CONTRACTOR
COMPLETE
CONTRACT
DOCUMENTATION
4 - 6 WEEKS 3 - 4 WEEKS 3 - 4 WEEKS