The tendering procedure. as described in this document, implies that certain activities have to be carried out in connection with each part of the project for which a separate tender is to be called.
It is important that these activities are carried out in a systematic and timely manner. They should, therefore, be planned carefully and incorporated in the programme for the project.
Establishment of Procurement Method and Form of Tendering
In the context of this document, the word “project” covers all the stages from the initial idea to construct a given physical asset to the final taking-over by the employer of the completed work. Projects may be
Projects may be organized and implemented in accordance with different strategies. A brief description of some of these is given in Appendix L Which strategy is best suited for the purpose depends on, for example, the nature and complexity of the project, the access to finance. life cycle costs of the project, the technical and administrative capability of the employer and the general political and economic environmenl.
The project strategy defines the way in which the project will be implemented, determines the role of each party involved and, where appropriate. specifics the way the project will operate. To a large degree contractual relationships between the parties and their individual rights. duties and risks arc thereby also determined by the project strategy. At the implementation stage of a project, len<.
At the implementation stage of a project, tendering serves as a method to ensure that the work is procured as competitive terms.
The choice of strategy is a major decision which has far-reaching consequences. Once a strategy has been settled it is of great importance that it be followed throughout the implementation of the project. Lack of strict adherence!” to the strategy may lead to flaws in the procurement process, resulting in claims, disputes and extra costs for all concerned.
Any part of a project which can be covered by a separate contract may in principle, he made subject to tendering.
As soon as the project strategy has been decided, the employer, assisted by his engineer, should establish procurement methods and forms of tendering to be used in the project. The procurement method and forms of tendering are established by determining.