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TENDERING, BIDDING AND CONTRACTING PRACTICE

CONTRACTOR PRE-QUALIFICATION/BIDDER SELECTION

ACTIVITY
Given below is a list of contractors who have submitted bids for your project. The contractors
have submitted their details in the following categories: experience, financial stability, quality
performance, manpower resources, equipment resources and current workload. The
complete details are shown in Table below.
Your job is shortlist one contractor for the project and justify your decision through qualitative
and/or quantitative means

Note: The methods used for contractor selection are as below:


1. Aggregated weighing
2. Knowledge-intensive model
3. Capability evaluation
4. Multi attribute analysis
5. Performance assessment scoring system
6. Multi attribute utility theory
7. Multiple regression method
8. Multivariate discriminant analysis
9. Prequalification formula
10. Cluster analysis
11. Bespoke approach
12. Needs based approach
13. AHP
Factor Contractor A Contractor B Contractor C Contractor D Contractor E
7 years experience
8 years experience
5 years experience One similar project 10 years experience 15 years experience
Experience No similar project
Two similar projects Special procurement Two similar projects No similar project
1 international project
experience
100 crore assets 110 crore assets
70 crore assets
Financial 55 crore liabilities 140 crore assets 40 crore liabilities 60 crore assets
High growth rate
Stability Part of a group of 60 crore liabilities Good relation with 15 crore liabilities
No liability
companies banks
Good organisation Good organisation Bad organization
Good organization Average organisation
Quality Government award Many certificates Unethical techniques
Many certificates Two delayed projects
performance Good reputation Cost raised in some One project terminated
Safety program Safety program
QA/QC program projects Average quality
150 labourers 100 labourers 120 labourers
Manpower 90 labourers 40 labourers
10 special skilled 200 by subcontract 25 special skilled
resources 130 by subcontract 260 by subcontract
labourers Availability in peaks labourers
1 batching plant
6 mixer machines 2 concrete trucks 2 mixer machines
1 excavator 2 mixer machines 10 others
4 mixer machines 4 mixer machine
Equipment 1 bulldozer 1 excavator 2000 sqft steel
1 excavator 1 excavator
resources 20 others 1 bulldozer formwork
15 others 9 others
15000 sqft steel 16 other 6000 sqft wooden
formwork 17000 sqft steel formwork
formwork
1 medium project
1 big project ending 2 big projects ending 2 small projects started
Current 2 projects ending ( 1 started
2 projects in mid (1 1 medium project in 3 projects ending (2
workload big + 1 medium) 2 projects ending ( 1
medium + 1 small) mid small + 1 medium)
big+1 medium)
For AHP
Pairwise comparison matrix for Experience Pairwise comparison matrix for Financial stability
A B C D E A B C D E
A 1 A 1
B 3 1 B 1/6 1
C 2 1 C 1/3 4 1
D 6 2 3 1 D 2 3 1
E 1/2 1/4 1/3 1/7 1 E 1/7 1/3 1/5 1/7 1

Pairwise comparison matrix for Quality performance Pairwise comparison matrix for Manpower resources
A B C D E A B C D E
A 1 A 1
B 1/7 1 B 2 1
C 3 5 1 C 4 3 1
D 4 1 D 1/5 1
E 1/8 1/4 1/9 1/6 1 E 1/5 1/7 1/6 1/2 1

Pairwise comparison matrix for Equipment resources Pairwise comparison matrix for Current work load
A B C D E A B C D E
A 1 A 1
B 6 1 B 5 1
C 8 4 1 C 3 1/5 1
D 1/5 1/9 1 D 1/3 1/6 1
E 1/3 1/7 1/9 1/2 1 E 1/3 1/6 1/2 1/2 1

Pairwise comparison matrix for Factors


Financial Quality Manpower Equipment Current
Experience
stability performance resources resources work load
Experience 1 2 3 6 6 5
Financial
1 3 6 6 5
stability
Quality
1 4 4 3
performance
Manpower
1 2 1/2
resources
Equipment
1 1/4
resources
Current work
1
load

Average random consistency (RI)


Size of Matrix 1 2 3 4 5 6 7 8 9 10
Random consistency 0 0 0.58 0.9 1.12 1.24 1.32 1.41 1.45 1.49
Bid Capacity

The available bid capacity will be calculated as under:

Assessed Availability Bid Capacity = (A* N*2-B),

where A = Maximum value of works executed in any one year during the last five years (updated to
the current price level) which will take into account the completed as well as works in progress;

B = Value at current price level of the existing commitments and ongoing works to be completed
during the next ____ years (period of completion of works for which bids are invited).

N = Number of years prescribed for completion of the works for which the bids are invited. Note: In
case of a Joint Venture, the available bid capacity will be applied for each partner to the extent of his
proposed participation in the execution of the Works and combined.

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