W9_Afra_Contractor Selection
1. Problem
Recognition
A contractor is
an individual or in many cases a business that signs a contract to perform part
or all of the obligations of another's contract. Selecting the right contractor
fundamentally contributes to the project’s success.
The Company
adopt a multi criteria for contractor selection process. Technical aspect and
experience is one of the most important selection criterion, followed by
another defined criterion based on the price and other aspects.
Let’s assume
that the Company in the bid process for evaluation the best alternative contractor.
We have four quotations from four contractors with various terms and conditions
to their proposed price (lump sum) and bid documents and technical aspects.
In this week
blog, I will work out on the contractor selecting analysis and the output is deciding
the contractor winner for this project.
2.
Feasible alternatives
Multi attribute
decision making techniques (methodology) will be used for evaluating and analysis
the contractor for the project. From the contractor bids (proposal), Company have
prepared Technical Bid Evaluation (TBE) and Commercial Bid Evaluation (CBE) as
a comparison sheets against Company requirements.
We have four proposals
in this case study A, B, C and D.
3. Development of the
outcome of Alternative
The outcomes of
the four proposals are described in the table below (the technical aspects
along with the commercial aspects).
Table 1: Proposals Output
4.
Selection Criteria
Table
2 below shows the selection criteria list that will be used in developing the
bid result and awarding the best alternative.
Table 2: Set of Criteria
5.
Analysis and
comparison of the Alternative
No, the outputs in table 1 will be converted
into three categories: good, fair and poor according to the complying with the requirement
in the RfP. Table 2 below shows the categories.
Table 3: Evaluation of Proposals Output
Next step is to
evaluate the best alternative according to the importance of the criteria (Rank
a shows the ranking of 14’s criteria according to the importance of each one), and
use the normalized weight to give score for each alternative.
The alternative
ranking in the table below (alterative ranking b) shows the ranking according to
three categorizes in the table above for each contractor.
Table 4: Evaluation for the best Alternative
6.
Selection of the
preferred Alternative
From the above contractor
comparison vs selection of criteria, Company will choose contractor D as a
winner for the Project. From the total
score, subcontractor “D” have higher score (0.61) than others subcontractor.
7.
Performance Monitoring
and the Post Evaluation of result
In order to monitor the contractor performance,
contractor need to:
- Keep monitor subcontractor performance during project execution, especially
on contractor selection criteria items as mentioned above.
- Conduct subcontract assessment for next project consideration and
recommendation.
References:
1. What is a contractor? definition and meaning. (2018). BusinessDictionary.com. Retrieved 2 January 2018, from http://www.businessdictionary.com/definition/contractor.html
2. Construction Contractor Selection Criteria -.
(2018). Mccormickpcs.com. Retrieved 2 January 2018, from http://www.mccormickpcs.com/images/Construction_Contractor_Selection_Criteria.pdf
3. How to Normalize in Excel. (2018). Smallbusiness.chron.com. Retrieved 2 January 2018, from http://smallbusiness.chron.com/normalize-excel-36009.html
EXCELLENT case study Afra, but to challenge your thinking a little bit, your winning bidder only scored 0.61 or 61% out of a possible 100%. Or if this were school, it would be a D-.
ReplyDeleteWhat or how do you think you could improve upon this score? Are you sure that you are scoring what is really IMPORTANT to you? Did you miss any important attributes?
What about your contractor selection or pre-qualification process? Do you think if you attracted more bidders that you may find contractors who would score higher?
Bottom line- while your PROCESS and ANALYSIS was excellent, you really need to think long and hard about how you can create a scoring process that measures what is REALLY important to you and/or how you can attract the kinds of bidders who meet whatever criteria you have established.
BR,
Dr. PDG, Jakarta
Thank you Dr. for your comments and feedback.
ReplyDeleteI'm totally agree with you that 0.61 score is not a very good score to choose the best bidder.
and to answer your questions:
What or how do you think you could improve upon this score? Are you sure that you are scoring what is really IMPORTANT to you? Did you miss any important attributes?
the attributes that has been used in this case study is just assumption data, and the score I gave is also assumption (along with the ranking of the attribute, I may gave one attribute high priority while its actually not)
What about your contractor selection or pre-qualification process? Do you think if you attracted more bidders that you may find contractors who would score higher?
the pre-qualification stage is very important to choose who is qualified to submit the bid from early stage, which is not mentioned here in this blog.
so, as you say, I need to think more about the attributes and scores if I apply this blog to real project.
Thank you!