Q2

XLRI is coming up with a new campus in Karnataka in Hubli. You have been appointed a Project
Procurement consultant for the Project. You have to advise XLRI management on the steps they can
follow right from Bid Planning to Bid Award.

Mention three top clauses you would want to be incorporated in the project

(Assume land is acquired and the scope is the construction of the facilities only)

A) General

1) Scope of the Bid

XLRI will invite bids for the construction of work, the successful Bidder will be expected to complete the
work on time, and XLRI will bear the expenditure.

2) Eligible bidders

The invitation for Bid will be open for all bidders. All bidders shall provide forms of Bid and Qualification
Information to the Project manager.

Some of the Qualification criteria can be-

 Bidder should be experienced, such as successfully completing at least two big projects relating
to college construction.
 Bidder should indicate actual cost and amount of work done by them during regular intervals.
 Bidder must have assured ownership to some key equipment's like tipper trucks, front end
loader etc.
 Bidder financial position should be good enough, and his bidding capacity must be more than
the total estimated cost of work

3) Others

 The Bidder should be responsible for all costs connected with preparing and submitting his Bid.
 At Bidder's responsibility and risk, he is encouraged to visit and examine the Site of Works and
its surroundings and obtain all information necessary for preparing the Bid and entering into a
contract for construction of the works.

B) Bidding documents

1. Instructions to Bidders
2. Qualification Information
3. Conditions of Contract
4. Contract Data
5. Technical Specifications
6. Bill of Quantities
7. Security forms
8. Drawings
9. Documents to be furnished by Bidder
C) Preparation of Bid

1) Language of the Bid will be in the English Language.

2) Bid Prices

 Along with the total bid price, the Bidder must fill in rates, prices, and line item totals for all
items of the Works stated in the Bill of Quantities. Items for which the Bidder does not include a
rate or price will not be paid for by the XLRI when they are completed and will be deemed
covered by the other prices and rates in the Bill of Quantities.
 The rates, prices, and total Bid Prices supplied by the Bidder must include all duties, taxes, and
other levies due by the contractor under the contract or for any other reason.
 The currency for Bid and Payment should be Indian Rupee
 As part of his Bid, the Bidder must provide a Bid security amount.

3) Bid Validity

XLRI needs to provide Validity of Bid; since this is a big project, we can make bids remain valid for a
period not less than 120 days after the deadline for bid submission.

D) Submission of Bids

1) Sealing and marking of Bid

The Bidder must submit both Financial and Technical proposals to the evaluation committee of XLRI

Technical Bid: They will be opened first in the presence of the Evaluation committee

Financial Bid: They will be opened after the technical Bid with the approval of the Evaluation committee

2) Deadline of Bid submission

XLRI must specify a specific date for the submission of Bids, and after that, no bids will be allowed. No
modification of the Bid will be entertained.

E) Bid Opening and Evaluation

1) XLRI will open all the Bids received in the presence of the Bidders. The envelope containing "Technical
Bid" shall be opened. The amount, form and Validity of the bid security furnished with each Bid will be
announced. XLRI evaluation committee will finalize responsive bidders and give them the date and
venue for the opening of the financial Bid.

2) During the detailed evaluation of "Technical Bids", the XLRI evaluation committee will determine
whether each Bid (a) meets the eligibility criteria, (b) has been properly signed; (c) is accompanied by
the required securities and (d) is substantially responsive to the requirements of the Bidding Documents.
The responsiveness of the bids will be determined further during the full review of the "Financial Bid,"
which includes the priced bill of quantities, technical specifications, and drawings.

F)Award of Contract
1) XLRI evaluation committee will evaluate all the bids. It will award the contract to one who has been
most responsive to the bidding documents and who had the lowest bid price after meeting all technical
criteria.

2) The Bidder whose Bid has been accepted will be notified, and other procedures related to payments,
practices that need to be followed will be discussed.

Clauses:

Changed Condition: Nobody likes surprises when it comes to construction projects since they nearly
always result in higher prices. The phrasing of this crucial provision typically determines who pays for
unanticipated job-site conditions. XLRI must ensure this so that, there is no unexpected cost increase.

Time: Since completion date is important, time-is of-the-essence clause must be added to the contract.
Any delays can cost XLRI money, consider adding a penalty clause that makes the contractor responsible
for costs incurred during any delays

Guarantees: Guaranties are important since defects in construction often don’t show up until well after
the last check has cleared. So, we need to have such clauses because the contractor will have more idea
on fixing the issues and expenditure might be reduced.

Q3

Why use PERT?

Issues with deterministic time method:

• Tasks are typically highly dependent on one another and are interconnected. CPM network
becomes more sophisticated for larger projects with more dependencies.

• The resource allocation is set to 100% by default, and there is no way to change it in project
planning.

• Unpredictable activities are not considered.

• Non-repetitive behaviour are not taken into account. Cost crashing is impossible.

Risks in using Pert and the cases where it is used

• Risks are stochastic processes with probability outcomes in a probabilistic timetable. The project
duration is not a set number, but rather a number derived from a probability distribution and
connected with a confidence level. When there is more uncertainty in the project, this style of
scheduling is used.

• The project manager must consider a number of variables that are inherently unknown when
establishing the project plan.

• Probabilistic scheduling delivers a realistic view of the project plan, allowing project managers
estimate the uncertainty and its effect on the plan
 Activity Description Predecessors Optimistic
Duration

P Visit site 0 8

Q Buy equipment P 5

r Prepare design p 9

s Hire Staff r 12

t Develop IT q 9

u Train staff s 3

Q4

Sl no Normal Crash
No of
No. of days cost days cost
2 Starting the meeting 1 day 0 1 day 0
3 Budget preparation 5 days 0 5 days 0
4 Venue Booking for the ceremony 7 days 100000 3 days 150000
5 Guest list Preparation 5 days 0 5 days 0
6 Food Catering 10 days 5 days
7 Menu deciding 5 days 0 2 days
8 Testing food 2 days 0 2 days
9 Confirming Menu 3 days 200000 2 days 250000
10 Wedding Invitation 18 days 10 days
11 Designing Wedding Invitation 5 days 0 4 days 0
12 Proof reading 1 day 0 1 day 0
13 Finalizing the invitation 2 days 0 1 day 0
14 Printing Invitation and delivery 10 days 80000 4 days 100000
15 Planning of Wedding Ceremony 15 days 15 days
16 Wedding Rituals 10 days 0 10 days 0
17 Arranging Wedding Officates 5 days 50000 5 days 50000
21 Wedding Sourviners and Invitation 17 days 17 days
22 Deciding wedding theme and colour 5 days 0 5 days 0
23 Deciding Wedding decorations 5 days 0 5 days 0
 24 Deciding Wedding Sourviners 2 days 0 2 days 0
25 Fresh Flowers ordering 2 days 0 2 days 0
26 Finalizing Wedding Decorations and Sourviners 3 days 220000 3 days 220000
Finalizing wedding photography and
27 Videography 2 days 100000 2 days 100000
28 Finalizing Logistics 5 days 50000 5 days 50000
29 Execution of the Wedding Ceremony 1 days 0 1 days 0
30 Final payment 2 days 0 2 days 0
31 Honeymoon Planning 7 days 7 days
32 Planning honeymoon 6 days 0.00 6 days 0
33 Booking the package 1 days 100000 1 days 100000

Critical activities

 Venue Booking
 Food catering
 Wedding Invitation

These will increase in cost while reducing no. of days