Question

the key objective of risk management is to increase the probability of a project achieving its goals and objectives. discuss how the nature of competitive tendering influences effective risk management in construction? your answer should include at least 2 suggestions of what clients can do to improve the outcomes of the competitive tendering process?

Answer 1

Competitive tendering influencing risk management

Competitive tendering is a common method of procurement in the construction industries. Tender is a submission which is being submitted by the respective contractors or the suppliers to be approved by the government. It makes offers about providing the benefits regarding the goods and services regarding the respective industry. There should be an proper and effective approach towards the risk management during competitive tendering and stages where contracts are being negotiated. The competitiveness helps in understanding the contract's capability to deliver the projects and services which are being mentioned in the submission forms. Effective approach are being made to deal with the risk management in the construction industry. The tender process is being split into two stages that are the technical and commercial evaluation of tender. In the first phase of the tender, a risk management team is being set up by the client in the tender process. What the clients have to do for the acceptance of the tender by government is to improve the outcomes and maintain a standard and put a strong opinion from the client side. Below are few suggestion that a client or contractor have to go through to obtain better outcomes in competitive tendering in the construction area :

• Proper opportunities should be targeted and all the points are to be straight forward.
• The proposal of the tender should be about the benefits of the buyers. Because they are the one who are to be affected by the quality of project provided or completed.
• Use all the available resources, experts and tools to manage the project so that the outlook of the project seems of good quality.
• The tender submission sheet should be short and sweet. Just assume the tender evaluator knows nothing about your company and explain every detail in short.

Above are the methods that would help in obtaining better Outcomes in competitive tendering. And the risk management is also improved in these types of tendering in construction field.