Project Management for Operators of Large Assets

This paper discusses the tendering procedures and contractual terms for project management for operators of large assets. It covers the definition, ethics, tendering procedure, financial justification, and contractual terms.

Running Head: PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 1
Paper Title Capitalized and Centered
Name of Student
Institution Affiliation

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 2
1. Definition
Principal- the ministry of mining makes an invite to all locals who meet the eligibility criteria for
availing the equipment for mining that can be used in the mining quarries required during the
construction of roads.
Tenderer- is any individual or company that makes estimates of the cost of the proposed project
and provides assurance that will be able to provide all the required services put forward by the
ministry of mining (Atkinson, 2009).
Ethics
The principles that form the basis if this tender include the following
a) The tender conditions have to be same for all the individuals who make the bid
b) The tender will be carried in an honest and free environment
c) The tendering process should only involve the tenderers who are able to carry out the task
at hand (Cascia et al, 2009).
Tendering procedure
The following are the tendering procedures that are carried out for this tender
1.3.1. OBLIGATION OF THE PRINCIPAL
1.3.1.1. Project definition
General- the contractor should abide by the requirements of the SC when carrying out their
duties.
Prohibition of conflicting activities- it is also necessary that the contractor does not have any
involvement in activities that in any way conflicts with the duties they are required to perform.
Confidentiality- all the parties that are involved in the tender should at no point reveal any vital
information or detail throughout the contract term or a period of two years after the expiry of the
contract (Cubbin et al, 2009).
1.3.1.2. Pre-tender
An invite is made to the tenders to submit their financial and technical proposals that they have
made on the services that are required to be offered for the given tender. In situations where the
project owner or client intends to apply standard engagement conditions and scales of fees for
professional services, the tenderers will be required to submit a technical report (Domberger &
Rimmer, 2015).
A constant price that does not exceed 5000/= is to be levied on the tender document

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 3
A fee will be levied on the tenderer in case they require making a review of the tender document.
Any request made by the tenderers in relation to the RFP documents should be carried out within
a period of seven days earlier than the set submission date. The appeal for clarification can be
directed in the form of electronic mail, a written paper mail, telex or facsimile.
It should also be noted that the cost involved in the proposal preparation, as well as negotiation,
is never considered as a direct cost of the project (Domberger et al, 2016).
1.3.1.3. Tender documents
All the proposals made by the tenderers must be written in English
During the preparation of the technical proposal, some of the considerations that have to be put
in place by the tenderers include the following;
 A consideration by the firm that it does not meet all the expertise requirements to carry
out the task at hand.
 No proposal of alternative professional staff and instead just one curriculum vitae is to be
handed over for each and every position.
A detailed examination of the documents that form part of this RFP should also be carried out
during this stage of technical proposal preparation (Drew & Skitmore, 2011).
The following information should be contained within the technical proposal and should be in
the attached standard form.
 Estimates by the total inputs of the staff
 A list of the proposed team of staff
 A clear description of the organization as well as a brief summary of the latest experience
with a task of the same kind
 Curriculum vitae that are currently signed by authorizes personnel and a professional
staff that has been put forward by the client
 A clear elaboration of the work plan and methodology that will be used to carry out the
duty.
During the preparation process, the tenderers should be able to quantify their services,
commissions and even gratuities that will require payments in terms of their exact or close
estimate prices (Favek, 2014).
The technical proposal should remain valid for a period of up to 60 days after the date of
submission.
The technical proposal should not include any financial related information.

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 4
1.3.1.4. Call for tenders
The ministry of mining hereby invites all interested and eligible bidders/ contractors for the
tender illustrated hereafter. The tender is on the provision of facilities and equipment necessary
for the mining of quarries required for the construction of government buildings that are meant to
settle the overwhelming population of refugees in the country. The tenderers are advised to
mention the prices that are also inclusive of the taxes. The prices will remain legal for a period of
120 days from the date that the proposal closes. All the prospective bidders are advised that they
should ensure that they enclose their filled tender documents in a plain sealed envelope. The
envelope should be marked with the tender number and then deposited in the tender box that is
available at
The permanent secretary
The ministry of mining
Twin towers opposite central bank
2nd-floor tender box
Note that the tenders will be opened immediately after the closure date in the presence of all the
tenderers representatives who will be allowed in the boardroom.
All prospective tenderers are informed that the selection and award will strictly be on the basis of
quality cost-based selection and in accordance with the policies put forward by the public
procurement and asset disposal act (Favek et al, 2008).
1.3.1.5. Amendment of the document
No amendment of the documents shall be allowed 1 week after acquiring the documents thereby
the tenderers are requested to go through the document before filling it to ensure everything is in
order.
1.3.1.6. Receipts and submission of tenders
All the prospective bidders should prepare the required number of copies of their proposal as will
be indicated.
They are required to place the original and all other copies of the technical proposal in a sealed
envelope which should be labeled ‘TECHNICAL PROPOSAL’
1.3.1.7. Closure of tenders

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 5
The tenderers are required to deliver the entire completed financial and technical proposal to the
mentioned address on or before the submission date. The tender will be closed on 2nd November
2018
Note that NO LATE SUBMISSION WILL BE ACCEPTED
1.3.1.8. Evaluation of the tenders
All the evaluators will have no access to the financial proposal or the tenderers until the technical
evaluation process is completed.
The appointed committee in charge of evaluation will follow the below criteria all through the
evaluation process (Boyne, 2012).
POINTS
Precise experience of the bidder in relation to the current task 20
The ability of the projected methodology and work plan to respond to the
required reference terms.
30
Experiences and proficiency of the main staff for the current task 30
Ability to sustain the transfer of technology program 20
Total Points 100
In any case that the proposal does not achieve the required marks after the technical evaluation,
then the clients that have been picked by the tenderer should inform the tenderer. The financial
processes of the given tenderer will also be handed back to them once the selection process has
been completed. All the remaining bidders will be invited to attend the opening of the financial
proposals (Gomez-Lobo & Szymansk, 2013).
The financial proposals will be opened in front of all the tenderers representatives. Both the
names of the tenderers and their respective prices will be read out loud during the opening of the
financial proposal.
1.3.1.9. Negotiations and selection
The negotiations will involve making discussions on the technical proposal, the proposed work
plan or methodology as well any arising suggestion (Gray et al, 2008).

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 6
Negotiations involving the contract draft form will also be carried out.
The procuring entity will appoint a team that will be in charge of the negotiations
The outcomes of the negotiations will determine which tenderer is awarded the contract. The
bidder that wins the contract is shortlisted while those that fail are handed back their financial
proposal.
The shortlisted tenderer should begin the task on the date and location that was specified in the
tender document.
All the parties that are involved in the contract will have the contract signed within 30 days the
date that the contract was awarded.
1.3.2. OBLIGATION OF THE TENDERERS
The client is required to make the best possible effort in ensuring that the necessary assistance to
the contractor is rendered by him whenever anything is required
All the necessary services and facilities will be availed by the contractor.
1.3.2.1. Return of the documents
After filling the documents, the shall be dropped to the location mentioned above before the
submission date.
1.3.2.2. Evaluation of tender document
The committee of finance will help in making determinations on whether the financial proposals
are complete or not (Halaris et al, 2011).
The client should put into consideration the correct of determining the financial score which is
always given as
Sf= 100XFM/f
Where Sf –financial score
f- Proposal price

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 7
the tender evaluation will be carried out within 21 days from the date that the tender was opened.
For any contract that does not exceed 12 months or one year, any variation in the price of the
contract will not be accepted.
Procuring entity that is carried within 30 days should enable the processing of the variations in
price (Kerridge et al, 2010).
. 1.3.2.3. Formulation of tender and estimates
Not tender shall be allowed to participate in unlawful activities not highlighted in the contract
such as failing to pay tender fees or bribing the company to be awarded the tender. All the
relevant statutory and other legal requirements shall be observed and the tenderers shall not
collide with other tenderers, provide or accept the secret commission, present inflated
tenderers and influence of contract decision by improper means.
The following estimates are made concerning the contract;
1.3.2.3.1. Project labor
The number of workers needed in this assignment is estimated to be 8 and they should be
ready to deliver to enhance the performance of the task.
1.3.2.3.2. Project plant
A number of vehicles required in handling the task specified is estimated to be 4 and they shall
assist in carrying the mined materials to numerous places they are needed.
1.3.2.3.3. Project material
The above specified task requires numerous materials needed to carry out the project.
1.3.2.3.4. Project subcontractors
This task is estimated to require only 2 subcontractors who got knowledge concerning mining.

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 8
1.4. Confidentiality-Both the parties will not reveal at all identifications evidence trendy the
duration of the contract also afterwards the expiration of the agreement for 24 months
2. Financial justification and arrangement
2.1. Source of funds
The chosen tenderer shall be responsible to all the expenses required during the provision of the
services since the contractor shall only be paid after completing the task and give the completion
certificate.
2.2. Financial proposal
A financial proposal includes the financial proposal submission form and the summary of cost.
Financial proposal submission form
…………………………………...
(DATE)
To………………………………………………………
………………………………………………………….
(Client name and address)
Ladies/ Gentlemen
We, the undersigned, offer to provide the transportation services for the firm in
accordance with your Request for Proposal dated……………………. Our attached
Financial Proposal is for the sum of
………………………………………………………………………………… (amount to
be included in words and figures) inclusive of taxes.
We remain
Yours sincerely
………………………………. (Authorized signature)
…………………………………… (Name and title of
signatory)

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 9
………………………………… (Firms name)
…………………………………………. (address)
2.3. Summary of cost
Cost Currency Amount
Subtotal
Taxes
Total Amount of Financial
Proposal
…………………………..
……………………………
…………………………..
3. Contractual terms
The following are the contractual terms that are involved in tendering
3.1. Laws governing the contract- this involves the meaning, relationship, and
interpretation that exists between all the parties involved in the contract. These
contracts are normally governed by the laws that are pre-set and well laid out by the
relevant bodies and laws of Australia (Kerzner & Kerzner, 2007).
3.2. Language- the contract execution has been carried out using the English
language. This language is considered the main binding language for all the issues
that are related to the tender. The language helps in easy explanation as well as the
interp0ratation of the contract.
3.3. Authorizes representatives- any involvement and action that should be carried
out during the tendering processes should be performed by all the officials that are
clearly laid out in the document.
3.4. Services- all the required services that are to be performed during the tendering
process shall be carried out at the exact locations that are already specified at the
beginning of the document.

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 10
3.5. Taxes and duties- all the contractors and the subcontractors are required to make
payments of the fees, duties, and taxes as specified under the existing laws of
Australia (Kim, 2008).
3.6. Commencement of services- the contractor that was offered the tender is
required to start performing the services that were assigned to him within a period of
30 days once the contract has been deemed effective.
3.7. Expiration of the contract- a contract gets to its expiry once the end of the time
period as stipulated in the contract documents. Once that date is reached, the project
is terminated and will be expected to have achieved its objectives. This is as specified
in the SC.
3.8. No breach- a breach will occur when one party fails to achieve or fulfill any of
the duties that were stipulated in the contract. The breach may occur on any side of
the participants (Kuang & Xiao, 2010).
3.9. Payment- during all the period that the contractor will be carrying out the duties
stipulated in the contract, the contractor will remain entitled to payment at relevant
periods. This has to be enforced by the parties that are involved in the contract.
3.10. Interest on delayed payment- all the payments are required to be made within a
period of 30 days from when the invoice and other relevant documents are received.
In any case, there occurs any delay, the contractor should be paid a simple interest for
each and every day that there is a delay. The rate for the simple interest should be
calculated at three percent (Liao et al, 2012).
3.11. Lamp sum remuneration- it is recommended that the total remuneration should
never go past the set price of the contract.
3.12. Contract price- the price of the contract that is payable to local or foreign
currency should be clearly set in the SC
3.13. Terms and conditions of payment- The terms and conditions for making a
payment state that the payments should be done directly to the account of the
contractor. Any remaining or outstanding payment will be made only after all the
conditions that are listed in the SC have been attained (Shosh, 2014).

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 11
3.14. Termination of the contract- the client is only able to terminate the contract by a
period that is not less than 30 days. This can be done by issuing a written notice to the
contractor that indicates termination of the contract.
3.15. Settlement of Disputes-Amicable settlement; all the parties that are involved in
the project are required to put forward their best efforts in settling the disputes that
may be arising amicably or in relation to the contractor and its interpretation.
4. Quality assurance and control requirements
4.1 Customer focus- the principle of customer focus will help in improving the systematic
management of the customer relationship, the measurement of customer satisfaction as well
as how to act on them. It will also focus on carrying out research that will enhance an
understanding of the experiences and wants of all the customers (Shosh, 2014).
4.2 Involvement of people- making an involvement with all individuals involved in the project
and the activities that are ongoing will enable those individuals in understanding their individual
roles as well as the contribution that they can make to the organization in regard to their
creativity, innovation and also in enhancing the prime objectives of the organization.
4.3 Continuous improvement- the prime and permanent objective of an organization should be
the overall performance of that organization. This is because it will enhance the recognition of
improvements as well as the provision of relevant training to the people (Tiong, 2010).
5. Safety requirements
5.1 Safety management review- Tenderers shall ensure that they understand the safety
measures involved in taking large projects.
5.2. Safety implementation- The tenderer shall abide by all the safety procedures and the
process of the tendering company
5.3. OHS policy- The principal shall allocate the budget for OHS professional, ratio safety
officers to workers and appointment of OHS professional.

PROJECT MANAGEMENT FOR OPERATORS OF LARGE ASSETS 12
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