Question

1. Assignment/Research:

a. Preparation of bids for a project

b. Contracts of projects or other works

Answer 1

1.

a. Preparation of bids for a project

Bid is the price quotation or offer set by the individual or organisation for something like resources, assets, securities etc.

The bid is prepared by following steps:

1. Research and planning- This is the beginning of the bid preparation process in which the data and information is collected for the bid preparation. For example, what is the vision, mission, and objectives of the organisation need to be fulfil the bid. Research for the Qualification of company to prepare a bid and also its critical resources as well as experience for viability of the project after bidding.

2. Preparing the bid- A kind of feasibility analysis is done while preparing a bid as how organisation is able to fulfil the bid request. For example, cost of material, time frame, and labour feasibility with the availability of these with the company.

3. Bid submission- Now the bid documentation process has been done so company needs to apply for the bid. In case of government as well as private firms, online portals are available to submit a bid. Adhere with the rules of the organisation professionalism should be followed.

4. Present the bid- If all the bidding documentation process goes fine then the company representative may have opportunity to meet with the reviewing team. Due to digitalisation the meeting opportunities are also going online. Here the questions can be asked by the reviewing team so the company representative should be prepared for it.

5. Getting the contract- The contract award dates are decided by the agency and the company representatives should be in touch with the agency to know the dates and time of award a contract.

b. Contracts of projects or other works

Contract of projects or other works is a legal agreement between two or more parties in order to accomplish the desired goals of company.

These contracts can be of different types –

1. Fixed Price Contract- Agreement between two parties is on fixed price. So here the risk associated with both the parties i.e. buyer and seller is divided or less.

2. Cost reimbursement contract- These kind of contracts works when the scope of project is not clear. So, after finishing the units or sub-processes of projects one party claims with the bill or cost expend on it during fixed time duration. Hence, these contracts are agreed on completion of partial work by one party. So, here risk is more with one party and other party enjoyed with guaranteed benefits.

3. Unit price Contract- These type of contracts are based on the unit price in case of material or labor price in case of work. So the risk is more associated with one party only.