( ASSIGNMENT 1 ANSWERS)

1. (d) A stakeholder is anyone who can impact/be impacted positively or negatively by the project.

2. (c) A derrick crane is a specific style of lifting machine. It is usually a fixed crane, meaning it is
assembled and disassembled in the location where it is used, although there are some very small
mobile styles. Generally, the crane is characterized by its long, fixed length tower. These cranes are
typically used in locations where items need to be moved from a common initial point to single
nearby location, like on shipping platforms and construction sites.

3. (d) None of the above

4. (b) There are 2 items in class-C, item g and item e.

item Contribution to Cumulative

total annual sales contribution
c 31 31 Class A
f 25 56 Class A
a 14 70 Class A
b 11 81 Class B
d 8 89 Class B
g 6 95 Class C
e 5 100 Class C

5. (b) Earnest money deposit = 1.25% of estimated project cost = 50 Lakhs * 0.0125 = INR 62500

Performance guarantee = 2% of awarded project cost = 45 Lakhs * 0.02 = INR 90000

Answers for questions 6 to 10 are explained below.

The table below shows the calculated financial scores and composite scores for each bidder.

Financial
Technical Safety Financial Composite
Bidder bid
score* score* score Scores
(lakhs)
A 52 49 49 91.1 61.03
B 56 65 53 82.2 64.81
C 66 57 55 77.8 66.69
D 70 64 59 68.9 68.22
E 52 60 45 100.0 66.00
F 49 64 61 64.4 56.61

6. (a) The financial score of Bidder A is 91.1 (as calculated from the formula given in the question)

7. (b) Bidder D wins the project (Highest composite Score)

8. (c) Bidder C is ranked second (Second highest composite score)

9. (c) Difference between the Financial scores of Bidder D and Bidder E = 100 – 68.9 = 31.1

10. (d) The difference between composite scores of bidder C and bidder F = 66.69 – 56.61 = 10.08