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CHAPTER ONE

OUESTION ONE
A petrochemical firm may wish to develop a new site. The project involves roads, sewers,
foundations for heavy plants, single storey sheds, water cooling and cleaning plants, storage
tanks and an office block incorporation, a canteen, welfare, etc.
Assuming the value of the whole project is approximately 5 million naira, composed of a mixture
of civil engineering and building works contained with installation of costly processing plants.
What advice should be given to the client on the selection of a contractor?

ANSWER
First of all I would like to clearly define the following engineering terms that would be
used as follows;
Contract
A contract is a word of agreement between two persons, or a documented agreement between
persons.
It can also be defined as an agreement between the promoter/financier/client and the contractor
under which the contractor agrees to carry out a specified work at the rate quoted in is tender and
the promoter agrees to pay at the same rate of work.
The Promoter or the Financier
This could be either a local authority, a government, a businessman or woman, a business
company etc.
The Consulting Engineer
This is a professional qualified engineer recognized by the appropriate institutions (NSE and
COREN) that is employed by the promoter or financier to prepare design and supervise
construction. This may be a consultant on his own or a paid employer by the promoter.
The Contractor
The contractor carries out the job in accordance with the contract document.
Tendering
A tender is a formal offer by a contractor in which he states in adequate detail, what he would do
for, and the consideration he would receive from the employer should he accept the offer.
To cut down on cost on both sides, aid tender analysis and tendering procedures, the
engineering contract would be standardized. This would enable selection of a suitable contractor,
at a time appropriate to the circumstances and obtain at a time appropriate to the circumstances,

and to obtain from him at the proper time an acceptable tender (offer) upon which a contract can
be let.
The tendering procedures involves the following processes, they include;

Preparation of the tender list and tender package


Receipt of tenders
Analysis of tenders
Communication of tender results

CHAPTER TWO
The following advices given to the client on the selection of a contractor would be based on the
advantages and disadvantages of the three methods of tendering. They are as follows;
1) Open Competition Tendering
Advantages
There is allowance for free and extensive competition.
Better bargain in terms of contract price.
Well suited for small type of contracts
Disadvantages
Due to great publicity, many tenders from contractors of different firms maybe financially
and technically unsuitable for the work.
It is a waste of time of the engineers in considering tenders and in addition cost to
contractors who are preparing unsuccessful tenders.

2) Selective Tendering
Advantages
It is normally suited for large contracts with needed larger financial outlay and tricky
work problems.
The engineer can assume that all tenders received are from contractors both financially
and technically suitable.
It offers new entrants, the opportunity to compete.

3) One Selected Contractor To Tender / Negotiated Single Tendering


Advantages
Short response time.
Minimum tendering cost and project duration.
Final decision on the method used would rest with the contractor.
Engineers are only asked to advice on invitation of tender.
Minimized processing of tender resulting in contract execution, commencing without
delay.
Cost associated with sending tender packages to many contractors and tender collection
and analysis are eliminated.
Disadvantage
It may turn out to be more expensive, since competition is absent.

CHAPTER THREE
ADVICE AND CONCLUSION
Based on the advantages and disadvantages of the various methods by which a promoter
can invite tenders, I would advise my client to adopt the method of one selected contractor to
tender or the negotiated single tendering. This is because it is ideal for urgent projects and for a
contractor whose performance records are well known and satisfactory of the employer.
Looking at the construction project, it is a highly specialized construction involving the
construction of various structure and installation of various plants as follows;

Roads and sewers


Foundations for heavy plants
Single storey sheds
Storage, water cooling and cleaning plants
An office block incorporation
Welfare and a canteen
And installation of costly processing plants.

With all these mentioned above, only a credible contractor with a huge financial outlay and
experience, great resources both in equipment and machinery and labour would be able to
execute such a project in a specified time duration without consistent delays.