Sample SRQ780 Strategic Construction Procurement Report 2

SRQ780 Strategic Construction Procurement Report 2 Sample

PURPOSE OF ASSIGNMENT

The purpose of this assignment is to enable you to:

- Understand and apply the theory and principles of project procurement strategies to complex projects

- Apply the principles of tender evaluation for built environment projects

ASSIGNMENT TASK

Assume that you are currently working as the in-house Contract Administrator for your employer. You have received three tenders for the Hume GP Super Clinic project. The site plan of the project is provided in the unit site (SRQ780 unit site > Content > Assessment Resources > Site plan - Hume GP Super Clinic project). This project will be delivered using traditional procurement route and an “open single-stage tendering” method will be adopted.

Your task is to analyse the bids submitted by the three tenderers (A, B and C) and prepare a tender evaluation report for your employer. The tender evaluation report should include the evaluation of tenders, ranking of the tenderers, reasoned recommendations for a suitable contractor. The report should also include other important details that are generally included in a tender evaluation report, such as project scope, tendering method, selection criteria and their weights, etc. A summary breakdown of the tender prices submitted by each tenderer is given on the next page. You are required to prepare detailed and reasonable profile* (imaginary) for each tenderer to enable you to extract necessary information needed for the tender evaluation. These details include (but not limited to) tenderer’s technical, financial, and managerial capacity, experience, current commitments, etc. Also, assumptions must be made about the completeness of tender submissions made by tenderers. The information will be required for the cursory review, preliminary and qualitative evaluation stages of your tender evaluation and you should attach them to the tender evaluation report with other essential appendices.

*Tenderer profiles show company specific information required for this evaluation.

Solution

1 Introduction

This tender evaluation report is prepared for the Hume GP Super Clinic project, which will be delivered through traditional procurement route and an “open single-stage tendering” method. Three tenderers (A, B, and C) submitted their tenders for this project. For Assignment Help, This report presents the analysis of the bids submitted by each tenderer, along with the ranking of the tenderers and reasoned recommendations for a suitable contractor.

2 Project Scope

The Hume GP Super Clinic project sets forth to build a brand-new hospital in the neighbourhood. A single-story structure with a total floor space of around 1,200 square metres will be built as part of the project. The structure will include administrative offices, a pharmacy, consulting rooms, treatment rooms, staff amenities, and other related facilities. Installation of the project's required mechanical, electrical, plumbing, and security systems will also be required. The building site is situated on a greenfield site, and the project scope will comprise all essential site preparation and civil works. The project will be completed using the conventional procurement process, and "open single-stage tendering" will be used as the selection process. The project duration is estimated to be 12 months, with construction expected to commence within three months of the contract award.

3 Tenderer Profile: Tenderer A [Stellar Construction Co.]

3.1 Relevant experience

Tenderer A has extensive experience in constructing healthcare facilities, including GP clinics, hospitals, and aged care centres. They have successfully completed several similar projects in the past, including the construction of the Richmond Medical Centre, a 3-story, 6,000 square meter facility with a full range of medical services.

3.2 Past performance

Tenderer A has successfully completed a number of projects in the previous five years that are comparable in size and complexity to the Hume GP Super Clinic project. These include developing a variety of healthcare facilities, such as hospitals and clinics, as well as office and residential structures.

The construction of the City General Hospital, a sizable project that included the construction of a 10-story structure with a total floor space of 50,000 square metres, is one that Tenderer A is particularly proud of having finished. The project was finished on schedule, within budget, and with excellent results. Since then, patients, employees, and visitors have all expressed satisfaction with the facility.

Another project that Tenderer A completed was the construction of a medical clinic in a remote area with limited access to resources. Despite the challenges posed by the location, Tenderer A was able to complete the project on schedule and within budget. The clinic has since been praised by the local community for its high standard of construction and the quality of care that is provided to patients.

Overall, Tenderer A has demonstrated their ability to successfully deliver projects of varying scales and complexity, often within challenging circumstances. Their consistent record of completing projects on time, within budget, and to a high standard of quality is a testament to their experience and expertise in the construction industry.

3.3 Technical skills

Tenderer A has a team of highly skilled and experienced engineers, architects, and construction professionals who have a deep understanding of the technical requirements of healthcare facilities. They are familiar with the latest industry standards and regulations, and have a proven track record of incorporating new technologies and materials into their projects.

3.4 Management skills and system

Strong project management practises used by Tenderer A provide efficient coordination, cooperation, and communication between all parties involved. They monitor project progress and spot possible problems in real-time using cutting-edge project management software. Additionally, Tenderer A places a high priority on safety, quality, and environmental management and has put in place rules and processes to guarantee adherence to pertinent laws.

3.5 Resources

Human resources: Tenderer A has a dedicated team of project managers, engineers, architects, construction professionals, and support staff who are committed to delivering high-quality projects. They have a strong focus on training and development, and regularly invest in their staff to ensure they have the skills and knowledge to meet the evolving needs of the industry.

Equipment and Materials: Tenderer A has a comprehensive range of modern equipment and materials to ensure efficient and effective project delivery. They have established relationships with reputable suppliers and subcontractors, and can quickly source additional resources as needed.

3.6 Methodology

Tenderer A's proposed methodology for the Hume GP Super Clinic project includes a detailed project plan, risk management plan, and quality assurance plan. They will work closely with the client to ensure the project is delivered to the highest standard, and will use the latest technologies and materials to achieve this.
Brief list of works to be done if the project contract is acquired:

• Site preparation and earthworks
• Construction of the building structure and envelope
• Installation of mechanical and electrical systems
• Installation of security and surveillance systems
• Fit-out and finishing works
• Commissioning and testing

3.7 Price

The prices submitted by Tenderer A for each segment are competitive with those of the other tenderers, and the total tender price is within the range of the estimated project budget. It is important to note that the prices provided are subject to change based on the final scope of work and any changes that may occur during the construction process. However, based on the initial tender submission, Tenderer A's pricing is reasonable and competitive.

Price breakdown for Tenderer A is as follows:

1. Site Construction: $80,000

2. Concrete: $52,000

3. Masonry: $29,000

4. Metals: $126,000

5. Wood and Plastics: $174,000

6. Thermal and Moisture Protection: $46,000

7. Doors and Windows: $100,000

8. Finishes: $115,000

9. Furnishings: $68,000

10. Special Construction (Security Access and Surveillance: Commitment): $40,000

11. Mechanical: $145,000

12. Electrical: $84,000

Total: $1,059,000

4 Tenderer Profile: Tenderer B [Apex Builders Ltd.]

4.1 Relevant experience

Tenderer B has significant experience in delivering healthcare projects, including the construction of hospitals, medical centers, and clinics. They have completed multiple projects in the past with similar scopes, budgets, and schedules to the Hume GP Super Clinic project. They have been in the construction industry for over 15 years and have developed a strong reputation for delivering quality projects.

4.2 Past performance

The prior performance of Tenderer B is a crucial component of their tenderer profile. An important consideration in determining someone's capacity to complete the Hume GP Super Clinic project effectively is the appraisal of their prior performance. Tenderer B has a long history of completing several projects on schedule and under budget. In the past, they have built residential homes, business structures, educational facilities, and healthcare facilities. They have successfully finished a range of projects, some of which had values comparable to those of the Hume GP Super Clinic project.

Their clients have given positive feedback on their project management skills, ability to meet deadlines, and the quality of their work. Tenderer B has a reputation for providing excellent customer service and building strong relationships with their clients. They have a proven track record of effectively managing projects from the design stage through to completion, and their clients have consistently reported high levels of satisfaction with their work.

Another important aspect of Tenderer B's past performance is their commitment to safety and environmental sustainability. They have implemented various safety measures and procedures on their construction sites to ensure the safety of their workers and the public. They have also demonstrated their commitment to environmental sustainability by implementing environmentally friendly practices in their projects, such as using sustainable materials and implementing waste reduction strategies.

4.3 Technical skills

Tenderer B has a team of experienced professionals with expertise in various aspects of construction, including civil, structural, mechanical, and electrical engineering. They have experience working with various construction materials and technologies, including concrete, steel, and wood. They have also demonstrated proficiency in using modern construction management software and tools.

4.4 Management skills and system

Tenderer B has a well-established project management system that enables them to effectively manage resources, schedules, budgets, and risks. They have a dedicated team of project managers who are experienced in managing complex projects. They also have a robust quality control and assurance program that ensures that their work meets the required standards.

4.5 Resources

4.5.1 Human resources

Tenderer B has a team of qualified and experienced professionals, including project managers, engineers, architects, and skilled workers. They have demonstrated the ability to attract and retain talent, and to provide their staff with the necessary training and development opportunities.

4.5.2 Equipment and Materials

Tenderer B has access to a wide range of equipment and materials needed for the Hume GP Super Clinic project. They have established relationships with reputable suppliers and manufacturers, which enable them to source high-quality materials and equipment at competitive prices.

4.6 Methodology

Tenderer B has proposed a comprehensive methodology that includes detailed plans for project management, design, construction, and commissioning. Their approach involves close collaboration with the client and other stakeholders to ensure that the project meets their requirements and expectations. They have also proposed innovative solutions for certain aspects of the project, which could potentially result in cost savings and improved efficiency.

4.7 Price

The tender prices submitted by Tenderer B for the Hume GP Super Clinic project are as follows:

1. Site Construction: $90,000

2. Concrete: $50,000

3. Masonry: $30,000

4. Metals: $120,000

5. Wood and Plastics: $170,000

6. Thermal and Moisture Protection: $50,000

7. Doors and Windows: $110,000

8. Finishes: $120,000

9. Furnishings: $65,000

10. Special Construction (Security Access and Surveillance: Commitment): $35,000

11. Mechanical: $140,000

12. Electrical: $98,000

Total: $1,078,000

5 Tenderer Profile: Tenderer C [Vitality Contractors Inc.]

5.1 Tenderer C (Name)

Tenderer C is a reputable construction company with extensive experience in the healthcare sector. They have successfully delivered several similar projects in the past, including medical facilities and hospitals.

5.2 Relevant Experience

Tenderer C has a proven track record of completing healthcare building projects with success, including hospitals, clinics, and medical facilities. Their crew has knowledge on how to handle the intricate nature of healthcare building projects, including making sure that all rules and regulations are followed.

Similar to the Hume GP Super Clinic project, Tenderer C has proven competence in completing projects utilising conventional procurement techniques. They have already performed several building projects utilising conventional procurement techniques, such as open single-stage tendering, with success.
The effective completion of the Hume GP Super Clinic project depends on Tenderer C's expertise dealing with local authorities and regulatory entities. They have demonstrated their ability to navigate complex regulatory requirements and work collaboratively with local authorities to ensure compliance with all relevant regulations and standards.

5.3 Past Performance

Tenderer C has an excellent reputation for delivering high-quality projects that meet or exceed client expectations. They have a proven track record of completing projects on time and within budget. They have also received positive feedback from clients for their professionalism, attention to detail, and commitment to safety.

5.4 Technical Skills

Tenderer C also has a strong understanding of the technical requirements for healthcare facilities, including regulatory compliance, infection control measures, and specialized equipment installation. They have a proven track record of working with healthcare providers to ensure that their facilities meet the highest standards of safety and functionality.

In addition, Tenderer C has experience in sustainable construction practices and can provide recommendations on how to incorporate environmentally friendly materials and systems into the project design. They are also familiar with the latest trends in healthcare facility design, including patient-centred design principles that prioritize comfort, privacy, and accessibility. Overall, Tenderer C's technical skills and knowledge are well-suited to the requirements of the Hume GP Super Clinic project, and they are well-positioned to provide innovative solutions that meet the needs of the project stakeholders.

5.5 Management Skills and System

Tenderer C has a well-established project management system that ensures effective communication, efficient resource allocation, and timely completion of projects. They have a team of experienced project managers who are dedicated to ensuring the success of each project they undertake.

5.6 Resources

5.6.1 Human Resources

Tenderer C has a team of experienced professionals, including engineers, architects, project managers, and skilled tradespeople, who are dedicated to delivering high-quality projects. They also have a robust network of subcontractors and suppliers who they work with regularly.

5.6.2 Equipment and Materials

Tenderer C has access to state-of-the-art construction equipment and materials, which enables them to deliver high-quality projects efficiently and effectively.

5.7 Methodology

Tenderer C proposes to use a collaborative approach that involves close communication and coordination with all stakeholders, including the client, architects, and subcontractors. They will also leverage their extensive experience in healthcare construction to deliver a facility that meets or exceeds the client's expectations.

5.8 Price

The tender prices submitted by Tenderer C for the Hume GP Super Clinic project are as follows:

1. Site Construction: $74,500

2. Concrete: $49,000

3. Masonry: $35,000

4. Metals: $126,000

5. Wood and Plastics: $172,000

6. Thermal and Moisture Protection: $42,000

7. Doors and Windows: $115,000

8. Finishes: $121,000

9. Furnishings: $60,000

10. Special Construction (Security Access and Surveillance: Commitment): $34,000

11. Mechanical: $130,000

12. Electrical: $95,000

Total: $1,053,500

6 Tender Selection Criteria & Weightage

Based on assessment of the project requirement, following selection criteria and weight allocation are proposed:

1. Technical Capabilities (35%): This measure is significant on the grounds that it will survey the bidder's capacity to convey the task to the necessary norms of value, security, and consistence with every single pertinent guideline and industry best practices. Specialized abilities will be assessed in light of the bidder's insight, capabilities, and proposed philosophies. The weight assignment of 35% mirrors the significance of this rule to the general outcome of the task.

2. Project Schedule (30%): This measure is significant on the grounds that it will survey the bidder's proposed course of events for the task, including their capacity to meet basic achievements, oversee project chances, and convey the venture inside the predetermined time span. The weight allotment of 30% mirrors the significance of ideal fulfillment of the task, which is basic to the venture's prosperity.

3. Price Competitiveness (20%): This measure is significant on the grounds that it will survey the bidder's proposed cost for the task comparable to the venture's degree and prerequisites. The weight portion of 20% mirrors the significance of cutthroat estimating, yet in addition perceives that the most reduced cost may not generally be the most ideal choice in the event that the bidder can't convey the necessary quality and meet task achievements.

4. Financial Stability (10%): This criterion is important because it will assess the bidder's financial standing and ability to manage project costs and cash flow effectively. The weight allocation of 10% reflects the importance of financial stability, but recognizes that it is not the only factor that should be considered.

5. Sustainability and Innovation (5%): This criterion is important because it will assess the bidder's proposed sustainability and innovation initiatives, including their plans to reduce the project's environmental impact and improve the project's efficiency and effectiveness. The weight allocation of 5% reflects the importance of sustainability and innovation, but recognizes that it may not be the primary focus of the project.

7 Cursory Review

The tender documents submitted by Tenderer A, Tenderer B, and Tenderer C are complete and easy to understand, demonstrating the bidders' knowledge of the project's requirements and their capacity to complete the project within the set scope and specifications. All three bidders have also proven their familiarity with comparable projects and adherence to the tender's specifications and guidelines. Their planned project timetable, technique, and strategy have been supplied, and they have disclosed any conflicts of interest or other anti-collusive behaviours.

Table 1 Cursory Review

8 Preliminary Investigation

According to the preliminary assessment, each of the three tenderers has appropriate expertise building healthcare buildings, such as GP offices, hospitals, and assisted living facilities. They have routinely delivered high-quality projects on schedule, under budget, and with no defects.

Table 2 Preliminary Investigation

9 Tender Evaluation

According to the established criteria, the scores of three separate tenderers are displayed in the table above, with Tenderer C receiving the highest score (87.65) and Tenderer A receiving the lowest (85.90). The two factors that were given the most weight were technical capabilities and project timeline, accounting for 65% of the overall weight. The remaining 35% of the weight was given to price competitiveness, financial stability, sustainability, and innovation. The technical capabilities and project timetable of Tenderer A received the lowest scores, suggesting that they might not be as skilled in those areas as the other tenderers. Tenderer B, on the other hand, received the highest rating for price competitiveness, suggesting that their proposal may have offered the most value for the money. Overall, Tenderer C had the highest score due to their high scores in technical capabilities and project schedule, as well as a strong score in price competitiveness.

Table 3 Tender Evaluation

The evaluation table demonstrates that the review committee's top priorities—along with price competitiveness, financial stability, sustainability, and innovation—are the project's technical capabilities and timeline. Tenderer A received the highest marks for proposal quality, Tenderer B received the highest marks for experience, and Tenderer A received the greatest marks for technical approach in the technical capabilities category. Feasibility, timeliness, and resource allocation were the three categories for the project timetable criterion, with Tenderer C receiving the best marks in each. Tenderer B received the greatest scores in both of the price competitiveness categories, which were broken down into cost and value for money. The criterion for financial soundness carried the least weight, and all three tenderers received comparable scores. The sustainability criterion was divided into environmental impact, social impact, and innovation, with Tenderer A scoring the highest in environmental impact, Tenderer B in social impact, and Tenderer C in innovation. Overall, the evaluation shows that Tenderer C had the highest total score due to their strong performance in technical capabilities, project schedule, and price competitiveness.

10 Conclusion

In conclusion, the project requirements were used to develop the tender selection criteria and weighting, with technical proficiency and project schedule ranking as the most crucial factors, followed by price competitiveness, financial stability, sustainability, and innovation. All three tenderers were judged to have presented comprehensive and understandable tender documents after a quick assessment and preliminary inquiry, however Tenderer A had the greatest expertise building healthcare facilities. Due to their excellent ratings in technical proficiency, project timeline, and price competitiveness, Tenderer C received the highest score throughout the examination of the tenders. The evaluation table shows that the technical capabilities and project schedule criteria were the most important, with price competitiveness, financial stability, and sustainability and innovation also considered. Overall, the evaluation process ensured that the best tenderer was selected based on objective and transparent criteria.

11 References