The
Mobilization Advance payment
is a monetary payment made by the
client to the contractor for initial expenditure in respect of site
mobilization, and a fair proportion of job overheads or preliminaries.
Mobilization Advance Payment (MAP) reduces contractors' need for working
capital. A mobilization draw is a payment you require from the customer at the
time you begin the project. ... Mobilization is defined at
businessdirectory.com as “activation of a contractor's physical and manpower
resources for transfer to a construction site until the completion of the
contract.
Approximate
estimate-estimate is an approximate or
rough estimate prepared to obtain an approximate cost in a short time. For
certain purposes the use of such methods is justified. ... For example, while
estimating the cost of a building work, the quantity of brickwork in the
building would be measured in cubic meters.
principles
of public procurement-
Transparency, integrity, economy,
openness, fairness, competition and accountability are some of the fundamental
principles of public procurement.
what
is public procurement-Government
procurement or public procurement is the procurement of goods, services and
construction on behalf of a public authority, such as a government agency. With
10 to 20% of GDP, government procurement accounts for a substantial part of the
global economy;
problems
in public procurement-problems in the
public procurement system: (1) weak and outdated procurement policies and
processes, (2) public sector procurement remaining an operational activity and
not a strategic activity, (3) a lack of accountability and transparency; a lack
of procurement knowledge ...
mean
by the pricing preambles-These Pricing
Preambles set out the basis on which the Bills of quantities have been
prepared. Notwithstanding the provisions of these pricing preambles, the
Contractor is reminded that the Bid Drawings and the Specifications form part
of the Bid Documents and as such mutually refer to the intent of the Bid
Documents
.purpose
of the Bill of Quantities-main purposes of the bill of
quantitiesmedium.com The prime purpose of the Bill of Quantities (BQ) is to
enable all contractors tendering for a contract to price on exactly the same
information. Subsequent to this, it is widely used for post-tender work such
as: 1material scheduling;2 construction planning;3 cost analysis;4 and cost
planning.5,tendaring6,valuation of variation;
main
process of the bill of quantities-
The Bill of Quantities is a document
which is used for the tendering process in a construction project, in which
materials, parts, and labour are itemized. ... The essay will look into the
Taking Off process represented in a Bill of Quantities and also look into where
the Taking Off process can be used
proces
off bill of quantities-
The Bill of Quantities is a document
which is used for the tendering process in a construction project, in which
materials, parts, and labour are itemized. It also details the terms and
conditions of the construction contract and itemises all the work for a
sub-contractor to price.
bill
of quantities-A bill of quantities
is a document used in tendering in the construction industry in which
materials, parts, and labor are itemized.
what
is maning of contract-a written or spoken
legal agreement, especially one concerning employment, sales, or tenancy, that
is intended to be enforceable by law.
Retention
money-Retention money is an amount held back
from a payment made under a construction contract. ... It is generally held to
ensure that a contractor performs all of its obligations under the contract,
and is then released either on practical completion or after the end of a
defects notification period
What
is a pre bid meeting and pre contract conferance
Pre-bid meetings are gatherings scheduled
after an invitation for bids or request for proposals is advertised. They are
called pre-bid meetings because they are pertinent to procurement of goods,
non-consultant services and works. When they are scheduled for consulting
services, they are called pre-proposal meetings.The pre-contract meeting is an important meeting that takes
place after the contractor has been appointed but before work commences on
site.Thepurpose of a pre-bid meeting is to clarify any concerns bidders may
have with the solicitation documents, scope of work and other details. When
they are scheduled for consulting services, they are called pre-proposal
meetings. These meetings are scheduled during the preparation of the
solicitation documents.
Measure
and Pay-Measure and Pay Contract Measure and
Pay contracts are also known as; schedule of rates contracts, bills of
quantities contracts, ad-measure contracts. ... This contract format is
generally used for construction works contracts rather than services contracts.
Lump sum payment-A lump sum
is a single payment of money, as opposed to a series of payments made over
time. The United States Department of Housing and Urban Development
distinguishes between "price analysis" and "cost##contractor and employee-A
business may pay an independent contractor and an employee for the same or
similar work, but there are important legal differences between the two. For
the employee, the company withholds income tax, Social Security, and Medicare
from wages paid. For the independent contractor, the company does not withhold
taxes.
key
stage of bid evaluation-Bid evaluation is
the process that takes place after the tender submission deadline. It involves
the opening and examining of the bids to identify the preferred supplier(s) for
the project. ... A more detailed evaluation of compliant bids may then be
undertaken against a number of pass/fail criteria
evaluate
step
procurement procedures?
Step 1: Plan the Procurement Based on
an Identified Need. 2: Scope the Procurement3: Determine the Procurement
Method. 4: Prepare to Approach the Market5: Approach the Market6: Evaluate
Submissions and Conclude the Tender Process.7: Manage the Contract.
define
the prime cost-- Prime costs are a
firm's expenses directly related to the materials and labor used in production.
... The prime cost calculates the direct costs of raw materials and labor, but
does not factor in indirect expenses, such as advertising and administrative
costs.
what
is the provisional sum-A provisional sum is an
allowance (or best guess), usually estimated by a cost consultant, that is
inserted into tender documents for a specific element of the works that is not
yet defined in enough detail for tenderers to accurately price.
define
construction of a contract-. A construction
contract is a mutual or legally binding agreement between two parties based on
policies and conditions recorded in document form. The two parties involved are
one or more owners, and one or more contractors.
What
is 'Tender-To tender is to invite bids for a
project or accept a formal offer such as a takeover bid. Tender usually refers
to the process whereby governments and financial institutions invite bids for
large projects that must be submitted within a finite deadline. The term also
refers to the process whereby shareholders submit their shares or securities in
response to a takeover offer.
structure
of basic rate estimate-The basic rates are
calculated by adding transportation cost, national and loacal taxes on the base
rate inwhich the material is purchased from the original source. Since the
question is similar to another one asked about power plant construction.uses-Cost estimators rely on a
number of estimation techniques, which vary in speed and potential accuracy.
The major approaches to cost estimating include: Production Function: A
production function relates the amount built (the output) to factors such as
materials and labor.
what
are the preliminaries in construction-The
costs attached to preliminaries may also be referred to as 'preliminaries' or
'prelims', or as 'site overheads', or general cost items or expenses. ...
Pre-construction information. A description of any planning conditions or other
conditions that may affect the work to be carried out by the contractor*importance of preliminarie-The
client's satisfaction is crucial in the construction industry. ... Their
understanding on the importance of preliminaries will result in accuracy of
price and contributes value to the construction. This indirectly reduces the
chance of construction to fail and ensures value for money of the construction
pro
jWhat
is general contractor's overhead and profit?
General Contractors charge for
Overhead and Profit (“O & P“) as line items on repair or rebuild estimates.
... Overhead costs are operating expenses for necessary equipment and
facilities. Profit is what allows the GC to earn their living. O & P are
stated as a percentage of a total job.
what
is procurement path-Procurement is the
process of purchasing goods or services. There are many different routes by
which the design and construction of a building can be procured. The selected
route should follow a strategy which fits the long-term objectives of the client's
business pla
procurement
methods in construction?1General contracting2;
Design and build;3 Construction management; and Management contracting.-
What
are the types of procurement?
1Single procurement. Single
procurement is triggered by a specific customer order and initiates the
suppliers process of production. 12Stock procurement. ... 3Vendor Managed
Inventory (VMI) ... 4Just in time procurement. .. 5Just in sequence
procurement..The types of procurement contracts and are typically either
fixed-price, cost-reimbursable, or time and materials. Some agreements can
include more than one of these payment structures on a single procurement
contract
explain
shipping process-The shipping process
involves the flow of goods and documents from the place of origin to the place
of destination. For the process to be completed successfully, the transfer of
goods and the documents from one party to another must take place in
synchronization.
What
is a bid security bond?-A bid security is an
amount of money that may be calculated as a percentage of the budget estimate
of a procurement requirement or a percentage of a bidder's bid price. ... It
gives the client some assurance that the selected bidder will sign the contract
or otherwise forfeit their bid security.
Purpose. ... The bid security is intended to deter bidders from
withdrawing their bids because they would otherwise forfeit the bid security
amount to the client. A bid security may be required of firms that submit
offers in response to an invitation for bids. It is commonly used when
procuring goods, works and non-consultant services Guarantee
performance
bond-A performance bond is commonly used in the construction industry
as a means of insuring a client against the risk of a contractor failing to
fulfil contractual obligations to the client. Performance bonds can also be
required from other parties to a construction contract…construction performance bond cost-The cost of a performance
bond usually is less than 1% of the contract price; however, if the contract is
under $1 million, the premium may run between 1% and 2%. Bonds may be more
costly, depending upon the credit-worthiness of the contractor. Labor and
material payment bonds are companions to the performance bon****Performance
bond for construction. A performance bond is commonly used in the construction
industry as a means of insuring a client against the risk of a contractor
failing to fulfil contractual obligations to the client. ... Bonds are
typically set at 10% of the contract value.
arbitration
in construction-Arbitration in the
construction industry. Arbitration is a private, contractual form of dispute
resolution. It provides for the determination of disputes by a third party
arbitrator or arbitration panel, selected by the parties to the dispute.
Is
arbitration legally binding-An arbitration
award is legally binding on both sides and enforceable in the courts. ...
Arbitration is a proceeding in which a dispute is resolved by an impartial
adjudicator whose decision the parties to the dispute have agreed, or
legislation has decreed, will be final and binding;
Adjudication-Adjudication
is a form of alternate dispute resolution method used widely in the
construction industry. This process is carried out by an independent person selected
by the parties in a contract.Adjudication is the legal process by which
an arbiter or judge reviews evidence and argumentation, including legal
reasoning set forth by opposing parties or litigants to come to a decision
which determines rights and obligations between the parties involved
Variationa
(sometimes referred to as a variation
instruction, variation order (VO) or change order), is an alteration to the
scope of works in a construction contract in the form of an addition,
substitution or omission from the original scope of works.Tracking Changes With
Variance Purchase Orders. ... A "variance" is anything that varies
from what you had originally planned. A time variance occurs when a task takes
longer or shorter than you had scheduled, and a cost variance happens when
something costs more than you had estimated in your project budget.
variation
payment meaning-It is often said
that a contractor is claiming a variation, but this actually means that they
are making an application for variation. ... Another example of variation is
where the contractor is required to change the timing, order or sequence of the
work.Advance paymentbond for
construction contracts. ... Typically on a construction project an advanced
payment bond will be required by the client if the contractor requests advance
payment to help them meet significant start up or procurement costs that may
have to be incurred before construction begins.is the part of a contractually
due sum that is paid or received in advance for goods or services, while the
balance included in the invoice will only follow the delivery.
Preliminary
Estimate-preliminary estimate at the
concept stage of your construction project, during the initial design phase.
The purpose is to provide you
with an introductory cost of your project. preliminary estimate will give you
insight into the cost of your project before detailed plans are drawn up.purpose
of estimating costs is to provide a size reference for cost control, to verify
that the resources consumed during the execution of the project are kept in the
costs assessed in feasibility phase of the project.1typeThere are four basic cleanup estimates: 1planning
estimates,2 feasibility estimates,3 preliminary estimates, and detailed
estimates
what
is procurement planning- Procurement
planning is the process of identifying and consolidating requirements and
determining the timeframes for their procurement with the aim of having them as
and when they are required. A good procurement plan will describe the process
in the identification and selection of suppliers/contractors/consultants
.advantages
of procurementplanning-Effective
Procurement Planning is essential for all procuring entities in the
implementation of the purchasing objectives for the following reasons: An
effective1 plan saves time and money. An effective2 plan serves as a conduit to
achieving entity's objectives. An effective 3plan ensures compliance with
regulatory 4better planning and risk managmant 5 Increaseconsumption of merit
goods 6better value for maney outcomes.
steps
in Preparing a Procurement Plan-1Assess/list
the needs or requirements2 Determine the quantities and estimated costs.
3Determine when the requirements shall be needed for use.4 Identify the
inter-relationships between and among the requirements.5 Consolidate similar
requirements
bideStages
of the Bid Evaluation Process
I will classify the bid evaluation
process into four basic stages including (1) preliminary examination forresponsiveness
to formal qualification requirements, (2) evaluation for compliance with
technical requirements, (3) price/financial evaluation and (4) post
qualificationvaluationfactors-1.bid
price.2.delivary period 3 cost of spare parts and affer 4 sales services 5cost
of maintanennce 5operating cost
Post
Qualification/Due Diligence: This activity
applies to the lowest responsive evaluated bid. For some organizations, where
prequalification of bidders was done, verification is done on the lowest
responsive evaluated bidder to ascertain that such bidder still complies with
the prequalification requirements. Where prequalification was not done, post qualification is done
based on criteria specified in the bidding documents
inputs
of procurement planning
Inputs-1.Requirements
documentation.2. Teaming agreements.3. Risk register.4. Risk-related contract
decisions** Outputs
-1.Procurement statements of work.2. Make-or-buy decisions.3 Procurement
documents.4 Source selection criteria
Responsibilities
of a Technical Evaluation Committees-And
a Procurement Time Schedule (PTS) will
be prepared by the Procurement Entity (PE) before starting the procurement
procedure. Another responsibility of the TEC is to do the evaluation within the
duration set up according to the PTS..1.complete an evaluation form for each
offeror 2.attend initial meeting to receive proposal and discuss theton
evaluation process 3 attend all oral presentation by offeror 4 read and sing
conflict of interest – non disclosure form 5 read each proposal to evaluate against the technical criteria.**Procumant committee-1.mamuall on standard
operating procedures for foreign assisted project 2.MEF
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