This Report Contains the steps of work before construction. In this report, the task is to prepare a procurement and tendering analysis for a construction company as a consultant of 0.5million Sq. Ft. with land a commercial center. This is the assignment report of MBA Construction project management of RICS School of Built Environment, Amity University, Mumbai.

1. Procurement and Tendering
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MBA in Construction Project
Management
Subject: - Procurement and Tendering
Topic: - Understanding of Different
Procurement Routes and
Tendering Processes
Guided By: - Mr. Vishal Hande
Mr. Kaushik Bhattacharjee
Submitted By: -
Name: - B Binod Kumar Patro
Regd. No.: - A70059019011
Sec A G1

2. Procurement and Tendering
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-: Acknowledgement :-
It gives us immense pleasure to present this section
as a tribute to those who always stood by us a strong and acted as
torch bearer for me.
Hereby, my first and foremost thanking goes to Mr. Vishal
Hande for the knowledge and guidance provided to us on the project
work. We gratefully thank him for extending to us his invaluable time
and resources.
We would also like to thank Mr. Kaushik Bhattacharjee
to whom we own pleasurable debt for his splendid support,
inspiration and thought production.
We would like to thank the entire Faculty and Director
Sir of MBA CPM of RICS SBE, Amity University, Mumbai to
provide us such opportunity to work in this academic project and
bring out our talent.
Date:- 12th
Apr 2020
B Binod Kumar Patro
(A70059019011)

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Contents: -
1. Introduction and Objective: - ........................................................................................ 4
2. Procurement Strategy: -................................................................................................. 5
2.1. Assumptions for Selected Project : -................................................................... 5
2.2. Evaluation Criteria : -............................................................................................... 5
2.4. Recommended Procurement Strategies for packages : -.............................. 6
2.4.1. Suitable Compensation Model: - ................................................................... 6
3. Acquiring Suitable Tendering Method: -.................................................................... 7
3.1. Work Package Grouping and Proposed Tendering Methods: -.................... 7
4. Front-end Tender Document: - ..................................................................................... 8
4.1. Preparation of Tender Documents: - ................................................................... 8
4.2. Inviting of Tender: -.................................................................................................. 8
4.3. Pre- Qualification: - .................................................................................................. 9
4.4. Evaluation of Bid and Award the work: -............................................................ 9
5. Learning Outcomes: - ................................................................................................... 10
6. Conclusion: -................................................................................................................... 10
7. References: - ................................................................................................................... 11
Table of Figures: -
Figure 1: - Public Procurement Reform of Bangladesh ............................................ 4
Figure 2 - Procurement Lifecycle of SFS University................................................... 5
Figure 3 - Mall Photographs ............................................................................................ 10

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1. Introduction and Objective: -
In the Competitive market of Real-Estate, the execution of construction is very difficult
to do without proper planning, documentation, scheduling, and official procurement
process. Bigger projects with huge investment, transparency and Efficiency are more
required for the smooth functioning of work. So, the suitable path which is today’s
generation adopting i.e. proper Procurement and Tendering work. It is describing in
simple words that the process of buying goods, works and services. (Buildings,
2019)
From the recent research of the Government of Bangladesh, Procurement and
Tendering Process is a very efficient process in the online system and this system is a
clear transformation for remarkable success. According to the World Bank’s
Assessment Report,
2002 for that country
on these systems has
resulted that Low-
quality service and
Lack of Public Trust.
In that sense, The
Govt. of Bangladesh
invested USD 18
annually to develop
the Legislative
changes,
New Technology,
Commitment, and
ownership, Citizen
engagement,
behaviour change communication. After 17 years of engagement Today, the country
creates an iconic benchmark in Public Procurement in South Asia and other Regions.
Figure 1 shows the improvement and drastic changes in the country due to adopting
the procurement procedure.
In this journey, the main challenges are Political Economy, Conflicting Interest of
Stakeholders, Corrupt Practices. So, in that case, the major responsibility is taken by
the Govt. agencies like Bidding Community, Civil Society, Political Leaders to make
stable the country’s Public Procurement Transformation. (Newspaper, 2020)
For a project, the initial stage of work is procurement strategy which is also called as
pre-construction phase. So, the entire project will be carried out to the final stage
smoothly. In this procurement strategy, there have some suitable procurement routes
which make the project easier execution on the ground. On the requirement of the
client with some basic and important things are budget, project risks, a timeline that
enables the tendering processes.
Figure 1: - Public Procurement Reform of Bangladesh

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In this case, I am a consultant of XYZ Constructions who must develop a suitable
procurement route for making strategy. Then after selecting the route going forward
with the client for tendering procedure to develop a tender document after analysing
all the procedures of tendering and conflicts to take the perfect decision. This all works
can be finalized after research on the procurement cycle and the advantages.
2. Procurement Strategy: -
It’s a long-term plan to acquire the cost-effective to the necessary list of supplies to
venders to execute the work of delivering the unit of work at a specified time with
maintaining quality. The procurement strategy is depending on the availability of
budget, the total cost of ownership, risk factor.
2.1. Assumptions for Selected Project : -
The Client Grauer & Weil India Ltd. of Growel’s Group prepared a strategic plan for
construction of Shopping Mall at Akurli Road, Kandivali East on their land having
an area of 7.5 Lakh Sq. ft. The area is located at the Suburb of Kandivali in
Maharashtra. As per the client requirement, the shopping mall must have a minimum
of 50 stores and services in 5 Lakh Sq. ft. and the remaining 2.5 Lakh Sq. ft. is for
Park for extra income purpose i.e. events and workshops, small children’s park. In the
area of 5 Lakh Sq. ft. the building planned as for G+3 with Basement and it should be
prepared further extension purpose also. But currently, as per the client’s requirement,
the building will construct G+3 with having base budget of 8.5 Cr. (Permissible
Expansion up to 10 Cr.).The architectural work should be designed based on the
European Village style.
2.2. Evaluation Criteria : -
The project we have chosen because of its location. It’s a very iconic location that is
provided by the client to construct the Shopping Mall called “Growel’s 101” to make
a hub of shopping and gathering
point of the area. The location is
covered by three cities Borivali,
Malad and Kandivali East and
West with all-time connectivity for
public movement with Railway
routes and Roadways. The main
advantages are the Western
Express Highway, which is nearer
to that location. It’s a kind of
beneficial for the contractor also for
proper connectivity to the site and as
well as for the future generation also.
So, the decision of the client for
making a Shopping Mall is correct
for that place as a Revenue
Generation Hub. Figure 2 - Procurement Lifecycle of SFS University

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2.3. Life Cycle of Procurement for the Project : -
Our company XYZ Construction provides a Simple and Regular Procurement Strategy
for the Building. The Lifecycle we are (XYZ Construction) Followed by a well-known
university i.e. San Francisco State University for the efficient management and
procurement process.
The procurement paths help in identifying the correct pathway of service you are
looking for and preparation of the management team as well as to face the current
situations of the site on the working stage. (Services, 2020)
The Lifecycle of the project is of seven Stages,
1. Plan: - Understanding of Clients need and identifying the solutions
2. Collaborate: - Verify and Prepare the budget and explanation of product and
service.
3. Strategize:- Preparation of suitable procurement pathway.
4. Manage:- Conduct a Solicitation
5. Analyse - Selection of products for getting the best value.
6. Negotiate: - Negotiation should be done for preparing the agreement sheets
with CSU terms and conditions
7. Finalize: - Execution of Contracts.
(Services, 2020)
2.4. Recommended Procurement Strategies for packages : -
The strategy to be adopted with suitable procurement packages for the smooth
functioning of work of construction. It’s a kind of Pre-Construction stage work, which
decides how the entire activity functions. For this kind of Shopping Mall Projects, we
are adopting D&B/EPC (Design and Build/ Engineering Procurement
Construction) which is also known as Turnkey Contracts.
In this case, the Risk Factor for the client is very less and for a contractor, the risk
factor is a bit more due to the design and project. Generally, this kind of strategy is
adopting on biggest infrastructure and engineering projects where the Aesthetic
Designs, Architectural and Structural Designs are more important for cost certainty.
2.4.1. Suitable Compensation Model: -
For that Procurement Strategy, the suitable Compensation model is the Lump Sum
model is perfect for the Strategy of the Procurement. This method of compensation
model is handled by the Main Contractor or it should be Nominated as
Subcontractor. By adopting Nominated Subcontractors have the benefit to choose
contractors.
On that basis, there are two things considered one is Time Factor and another one is
Cost Factor.
The Time Factor Describes that the Design, which we are prepared for the project will
be finalized and freeze for considering the time scheduling and completion deadlines.

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In that case, if the work is going on its time without having any delay then the risk factor
for the contractor is very less and if there any changes in the plan from the client-side
in the mid of work or any stage of work, then the time of work will extent.
The Cost Factor Describes that the budget or the cost should be fixed in the initial
stage to avoid various types of arguments. Because in this case the contractor always
Bid a higher cost to recover all types of project risks. For the new client or
inexperienced client, it’s mighty difficult. As in our case, we considered all the rates
with including risk factors on a Lump-sum basis, so that in future there is no kind of
interruption between both sides.
3. Acquiring Suitable Tendering Method: -
For selecting the contractor and fixing the price with all paperwork we are going to use
the traditional method of contracting is call Tendering. However, the procurement
Routes are cleared for this project, so for moving forward to the project next tendering
stage on the above conditions, we are going to adopting the Negotiated Bidding with
the suitable methods of Negotiated Tendering and Serial Tendering for the whole
project. The mode we are choose Serial Tendering, Because the architectural works
is offered to the contractor named “Neoclassical Architecture Company” (Famous
Company in Mall Designing and Construction) for the entire project with all kinds of
Negotiation.
3.1. Work Package Grouping and Proposed Tendering Methods: -
In the case of the project after finalizing the tendering method for the entire project,
there will be another work to split the entire work into different groups e.g. Civil works,
M.E.P. Works, Finishing Work and External Development. And this would be very
easy for the contractor to execute the work with less risk factor.
Following work packages Under the Civil Works some structural works like Excavation,
RCC Work, Column, Beam, Slab, Concreting Work, Cantering and shuttering Works
are there. For those works, the best way is the Design and Build method. In this
method, the terms and conditions are like all the contractor is responsible for all kind
of activity including Material and Labour. The cost is already is fixed for the whole
activity in a certain amount.
In that case of M.E.P. Work the activities like Electrical works, Plumbing, Fire Fighting
and Fire Safety, HVAC work, CCTV and security. The contractor or Client may adopt
a Specialized Subcontractor to execute the work. It depends on the amount of work
that decides that providing the material is by Client-side of it can be both Material and
Labour contract for a subcontractor.
As the selected contracting company is Specialized in Architecture works, So, we are
decided to provide the work package group Finishing and External Development work
under activities like Blockwork, Ceiling Work, Doors & Windows, Plastering and
Pointing, Painting, Flooring, Aluminium Acrylic Sheet works, Glass Works, Boundary
wall Construction, Check Gate offices and Entry Gates, landscaping, Suitable

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pathways, Water and Electricity Supply, Sewage, and Drainage system in Design and
Build/ EPC Model. Because these all small activities take so much time to finish. As
Specialist Contractor team they have all kind of separate units for all activities, so it will
be easier to finish in the decided time. The Risk Factor for both Client and Contractor
is very less in this system due to the cost is already fixed in the Pre-Construction stage.
4. Front-end Tender Document: -
As per the selected route is Negotiated Tendering, the Client decided to initiate the
procedure of Documentation before starting the work. With the tender proposal, the
client approaches the finalization of budget and time. To complete the procedure from
both sides of parties must prepare documents for the following stages like
1. Preparation of Tender Documents
2. Inviting of Tender
3. Pre- Qualification
4. Evaluation of Bid and Award the work
(Commission, 2020)
Those are the main stages to complete the Documentation Procedure. In the detail of
the following stages, there have so many paper works are there to reach the final stage.
4.1. Preparation of Tender Documents: -
Tender Documentation procedure is the initial procedure of tendering for accepting the
tender. In this process, a Legal Document “The Contract” will be created for the
sinning of both parties to avoid poor Contracting Management and Litigation. It’s also
a kind of opportunity for us(Contractor) to make a profit out of the ambiguous
Conditions. Inside freshly prepared tender bid along with the BOQ, schedule of items,
drawings, specifications, general contract terms and conditions with the conformity of
both parties. In this case, the bidder must furnish all the detail requirements for the
mall So, in the Tender Invitation stage there will be a single bid for the complete work.
The compete Tender Bid procedure is under the surveillance of Govt. of India Act 14
of Constitution to make it healthy tendering. So, there are no chances of irregularities,
interference and corrupt practices by the concerned authorities.
4.2. Inviting of Tender: -
This is an important stage for the contractor to sanction all documents and permissions
from a higher level. The stage will make an offer for the supply of goods and service
and it makes the tender easier for preparing to budget and for the client to compare
with other tenders. The following tender documents may include are as follows
1. Invitation Letter of Tender.
The tender proposal letters required for matching and evaluation procedures.
2. The Form of tender.
Required to fill all the fields for an official record.
3. Pre-Construction Information, Safety, Waste Management Details will be
submitted for Demarcation.

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4. The Contract Bid, Legal Terms and Condition, Legal Amendments, Contractual
Documents, Licence Information.
5. Tender Cosine Money
6. Quotations Sheets, Pricing Documents for the case of D & B Model.
7. Appointed Employees for the work along with the salary sheet.
8. After verification of drawings and bid, a Sinning clearance letter from the
contractor side.
9. Specification with Check List
10. All Receipts
(www.designingbuildings.co, 2019)
After submission of documents with all legal procedures, the client must have to
provide the receiving letter with a checklist to the contractor.
4.3. Pre- Qualification: -
In the Pre – Qualification stage the success of the project is largely depends on the
capability of the contractor. Because after the procedure of invitation of tender the all
documents and current finances will be verified by the client to ensure the capability of
complete the project. As per the Pre – Qualification Criteria, the client looks at least
two successful projects like this project to get confidence for awarding the tender to
the contractor. The client verifies three things,
1. Transparency
2. Fairness
3. Maintenance of competition
(Commission, 2020)
4.4. Evaluation of Bid and Award the work: -
This Tender Evaluation procedure is the most sensitive field to award the tender. In
this stage, the judgment, fairness, and transparency are very important. For Evaluating
tender, the client should consider the following points
1. The evaluation process must go on the criteria of legal amendments.
2. The decision Should be in a timely period.
3. Comparing the Bidding cost of Prime and negotiated cost to ensuring the
profits and Risk Factors for both parties.
4. Verifying all Legal Documents along with the Licence.
5. Ensuring all Obligations and Conditions must agree and signed by the
contractor.
6. Verification of all Quotations and Rates for preparing the final budget in Work
Order or Supply Order.
After Verifying all the criteria, the client specifies a date to complete all the official works
for Awarding the Tender. In this day with the complete legal agreement procedures
will be executed. The agreement like, if the contractor fails to finish the work, the
penalty will be applicable in a certain percentage of the amount. Completion Timings,
Detail information of all site Litigations. After awarding the tender along with all
Confidential documents, Payment Conditions, Work Order and Supply Order by the
client and give the permission letter to start the work on site. (Commission, 2020)

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5. Learning Outcomes: -
o From doing the assignment I got to know about various country Procurement and
Tendering Procedures. All countries including India, The Governments take so
much action to action to flow the construction works smoothly and avoidance of
such kind corruption.
o The procurement strategies are not the same for all kinds of construction, but the
feasibility conditions are the same.
o Selection of contractors by various tendering procedure and select the tendering
method for further Decisions and actions.
o I also know about the different grouping of work packages and how to select which
model is fit for which packages.
o The tendering procedure and the activities under that procedure is the major
learning for me.
o The documentation process and elaborated every element of all Govt. and Private
agreements systems to decide to award a contractor and payment systems.
6. Conclusion: -
The Procurement
Management required
a highly trained team
to execute the different
stages, because of its
plays a key role in the
whole project for
making benefits and
reduce the Risk Factor
for both parties.
However, I decided to go
through the lumpsum bid after
many pieces of research on a
different similar project.
Because the pre-qualification
on process ensures that the
resulting of a successful
project.
There are so many advantages
and disadvantages in the whole
procurement and tendering
procedures, I recommend that
before choosing the best options for the project identify all the drawbacks and pay
attention to each activity to avoid undesirable losses and disputes.
Thank You….
Figure 3 - Mall Photographs

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7. References: -
Buildings, D., 2019. Designing Buildings. [Online]
Available at: https://www.designingbuildings.co.uk/wiki/Competitive_tender
Commission, C. V., 2020. Tender Stages. [Online]
Available at: https://cvc.nic.in/sites/default/files/3%20Tender%20Stage.pdf
Newspaper, T. D. S., 2020. Public procurement transformation. [Online]
Available at: https://www.thedailystar.net/business/news/substantial-progress-seen-
challenges-remain-1800232
Services, P. a. S., 2020. Procurement and Support Services. [Online]
Available at: https://procurement.sfsu.edu/
www.designingbuildings.co, 2019. Tender documentation for construction projects.
[Online]
Available at:
https://www.designingbuildings.co.uk/wiki/Tender_documentation_for_construction_p
rojects