It has been explained in Chap. 14 (Sect. 14.5) that the decision maker’s one page
report will most probably be prepared from the executive summary. A properly
prepared executive summary can give an appropriate nudge in the right direction.
22.7.9 Decision to Proceed With the Project
If, having considered the Consultant’s report, the Promoter decides to proceed, he
will then, with the Consultant’s assistance, take steps to obtain the necessary
authority. Having obtained this, he will instruct the Consultant to proceed with the
design of the project, at the same time initiating the raising of finance and acquisition
of land where necessary.
22.8 Project Implementation
22.8.1 Appointment of Contractor
If the Promoter decides to have the work executed by contract, three methods of
selecting a contractor are open to him:
(a) open tendering (newspaper advertisements for competitive tenders)
(b) invited tendering (limited competition by inviting selected contractors to
participate)
(c) contract negotiation with a selected contractor.
In every case, tenderers are informed, through a clause in the Tender document,
that the Promoter does not undertake to accept any tender nor the lowest.
The full advantage of free competition in regard to price is obtained by open
tendering. It may, however, result in the submission of a large number of tenders,
including some from contractors without enough or suitable experience or unsatisfactory financial standing. Useless tendering is not in the interests of either promoters or contractors since, by increasing contractors’ overheads, it must in the long
run tend to inflate prices for future work.
The practice of inviting tenders only from selected contractors has the benefit
of removing the undesirable factors referred to in connexion with open tendering.
However, contractors of good standing who wish to tender in a new field will be
unable to secure the opportunity. The periodic compilation and revision of contractors’ lists for invitation to tender for specific types of work requires a wide knowledge of their respective achievements, capabilities and reputations. Inadequately
experienced contractors may be screened off through an advertisement inviting them
to be pre-qualified for tendering, on the basis of information they supply, concerning
(1) their previous experience of the class of work involved, (2) the availability of
plant and personnel and (3) information related to their financial standing. The
22.8 Project Implementation
641
report will most probably be prepared from the executive summary. A properly
prepared executive summary can give an appropriate nudge in the right direction.
22.7.9 Decision to Proceed With the Project
If, having considered the Consultant’s report, the Promoter decides to proceed, he
will then, with the Consultant’s assistance, take steps to obtain the necessary
authority. Having obtained this, he will instruct the Consultant to proceed with the
design of the project, at the same time initiating the raising of finance and acquisition
of land where necessary.
22.8 Project Implementation
22.8.1 Appointment of Contractor
If the Promoter decides to have the work executed by contract, three methods of
selecting a contractor are open to him:
(a) open tendering (newspaper advertisements for competitive tenders)
(b) invited tendering (limited competition by inviting selected contractors to
participate)
(c) contract negotiation with a selected contractor.
In every case, tenderers are informed, through a clause in the Tender document,
that the Promoter does not undertake to accept any tender nor the lowest.
The full advantage of free competition in regard to price is obtained by open
tendering. It may, however, result in the submission of a large number of tenders,
including some from contractors without enough or suitable experience or unsatisfactory financial standing. Useless tendering is not in the interests of either promoters or contractors since, by increasing contractors’ overheads, it must in the long
run tend to inflate prices for future work.
The practice of inviting tenders only from selected contractors has the benefit
of removing the undesirable factors referred to in connexion with open tendering.
However, contractors of good standing who wish to tender in a new field will be
unable to secure the opportunity. The periodic compilation and revision of contractors’ lists for invitation to tender for specific types of work requires a wide knowledge of their respective achievements, capabilities and reputations. Inadequately
experienced contractors may be screened off through an advertisement inviting them
to be pre-qualified for tendering, on the basis of information they supply, concerning
(1) their previous experience of the class of work involved, (2) the availability of
plant and personnel and (3) information related to their financial standing. The
22.8 Project Implementation
641