Tender Preparation

Tender Preparation:

 

Assume you are the leader of a company’s Tendering Team in ‘Supply and Delivery of Aerators for WTP’, manufacture and supply contract for Melbourne Water. The assignment will be undertaken from two (2) separate perspectives:

  • from the perspective of the Owner
  • from the Providers perspective.

 

Perspective 1: The Owner

 

  • Explain the benefits and risks associated in using the contracting form nominated. Include in your discussion factors such as the context, organizational experience, specifics of the project, risk profile of the project. You should also clearly outline the anticipated time dimensions for the project and the reasons behind the suggested timeframe.
  • Detail and discuss the reasons behind the selection of specific contract terms, be it a based on one of the Australian Standard General Conditions of Contract, (e.g. AS 4300 design and construct) or a bespoke form of agreement. A completed Annexure Part A or tender response document may form an appendix to your assignment.

 

 

Perspective 2: The Provider

  • Prepare a briefing document for the Chief Executive Officer of your organisation detailing the current market conditions associated with bidding for the project and why you think it sensible to have chosen the specific project on which to bid. Your brief is to include details of the general market (as of today 2015), the economic climate, alignment of the project with your company strategy, your likely competitors, resourcing, cash flow and other risks associated with proceeding with a tender for the project. The objective of the briefing note is to have the CEO make a decision as to whether your company should pursue the tender and develop a bid.

 

  • Based on the specifics of your chosen project identify five to ten critical risks and/or opportunities associated with the project. Sufficient detail is to be provided to justify the significance of identifying these risks as priorities. Matters for consideration would include (but not be limited to): the company’s relationship with the Client, the company’s experience and track record in this type of work, the clarity of the documentation provided and specific risks associated with the project.

 

 

  • Detail a strategy for your tender. What is going to make your tender a winner? Where is your commercial advantage? What commitments is your company prepared to offer to improve your chances of success? Consideration should also be given to:
  • Commercial aspects associated with producing a complying tender.
  • Your attitude to seeking later variations and claims.
  • Risk management and risk mitigation considerations.

 

  • Assume your company has decided to pursue this opportunity. Develop a Tender Preparation Plan for the preparation and submission of your company’s tender. This plan is to cover the tender period; it is not a full program for the delivery of the project. Your plan should:
  • Outline the tasks to be completed as a part of preparing the tender and this information should be presented as a schedule (in a bar chart).
  • Identify the specific resources required during the tender phase and prepare an organizational chart for these resources.
  • Indicate how the final tender price would be developed and then signed off by your company. Include a flow chart of the approval process.

 

 

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