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Outline

Definition Characteristics Bidding methods Pros and cons Bidding procedure


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Definition
A commercial activity involving 2 parties
Bidder A

Bid Solicitors
(Offer to buy G & S)
Win nin gb idd er

Bidder B

Bidder C

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Definition
The bid solicitor is the project owner, investor or legal representatives of project owners and investors to organize bidding Bidders: Contractor, supplier, or vendor who responds to an invitation to bid

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Definition
Bids are documents prepared by bidders based on the requirements of the bidding documents. Content of bids is a basis for solicitors and contractors to complete the contracts negotiated after the winning contractor announced ICB means the procurement opportunity is open to any interested local or foreign contractor

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Characteristics

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Characteristics
Equality:

All contractors are treated in a fair way Contractors are provided with all the relevant information, subjected to an evaluation emchanism and an uniform scale

Security:

All proposals about finance and engineering of contractors are kept secret No one in the bidding counsil take or copy bidding documents of contractor after handing over to the investor

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Characteristics
Consistency:

All decisions can not be changed after the deadline for submission of bids The bidder's proposal will be sealed to until opening of the bid

Objectivity: To chose contractors, in addition to price, the bid solicitor should consider other factors such as technical features, payment, the warranty.

Accessibility: The bid solicitor create conditions for contractors easily access to information
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BIDDING METHODS
Click to edit Master subtitle style focus on Procurement Mostly

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Prequalification of Bidders (Optional)

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Prequalification of Bidders

No limits of prequalified bidders Based entirely upon the capability and resources of prospective bidders to perform the particular contract satisfactorily All found capable of performing the work satisfactorily in accordance with the approved prequalification criteria shall be prequalified and invited to 5/5/12 submit bids

INTERNATIONAL COMPETITVE BIDDING

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Single-stage bidding
1. .

One-envelope bidding main bidding procedure used for most of the procurement financed One envelope contains both Price Proposals and Technical Proposals

2. Two-envelope bidding
.

allows bids to be evaluated on 5/5/12 purely technical, and administrative

Two-stage bidding

Two stage: Two-envelope bidding procedure, used in case of Turnkey contract and Alternative contract Turnkey contract: the borrower may remain responsible for the design and engineering, and invite bids for a single responsibility contract for the supply and installation of all goods and works required for the project component
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OTHER METHODS OF PROCUREMENT

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OTHER METHODS OF CONSTRUCTION

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Pros and cons

Pros

Cons

Buyers:

Increase likelihood of finding the most suitable partner Reduce cost and avoid price monopoly of bidders due to high competitiveness Limit collusion through open & transparent procedures

Bribery & corruption one off bids, less intention of strengthening long-term ties => cut corners to increase profitability & ensure that the bid remains cost-effective

Bidders:

Guarantee fair and chance for all potential bidders Create incentive & pressure on 5/5/12 bidders to improve capacity &

Bidding procedure

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1. Preparation

Notify about the bid Publish documents summarizing the bid Invite individuals, organizations to apply for pre-qualification Examine applications and select qualified entities for the bid
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2. Invitation to bid

Invitation for bids Interpretation to bidders Technical requirements Selection method (Selection of bidders) Other indications

* Clarification of bid invitation if 5/5/12

Important note!!!
Methods to guarantee bidders will not withdraw
-

Deposit (less than 3% of the bid) Bid securities

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3. Bid opening

Open with the presence of bidders or their representatives Read out loud bidders along with their prices and any modifications

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4. Examination and evaluation of bids

Eligibility requirements (technical, financial,) Responsiveness to the bidding document Security requirements Clarifications or alternatives of bids if allowed or necessary
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5. Award of contract

Award to the lowest evaluated and substantially responsive bid Prepare contract and sign contract Notify and return

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Rejection of all bids


Lack of effective competition Bids are not substantially responsive review the causes, making revisions to the conditions of contract, design and specifications.. before inviting new bids
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Solely for the purpose of obtaining lower prices BUT If the lowest evaluated responsive bid exceeds the bid solicitors pre-bid cost estimates by a substantial margin Investigate the causes and new bids OR Negotiate with the lowest evaluated bidder

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Thank you for listening!


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