Tender Request for Large Assets - Desklib

This essay outlines a formal tender request for the operators of large asset project. It covers the definition of project, project justification, financing, project conditions, team, processes, estimation for project labour, plant, materials and sub-contractors, project change, quality assurance and control.

Running head: TENDER REQUEST
Tender Request for Large Assets
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction................................................................................................................................2
1. Definition of Project in context to a Large Asset...................................................................3
2. Explanation of Project Justification and Contract Process....................................................4
3. Explanation of Financing of the Project.................................................................................6
4. Identification of Project Conditions, Project Team and Project Processes............................7
5. Expected Estimation to be Tendered for Project Labour, Plant, Materials and Sub
Contractors.................................................................................................................................8
6. Providing Requirements for Project Change..........................................................................9
7. Providing Requirements for Quality Assurance and Quality Control.................................10
8. Providing Requirements for Management of Document, Reporting and Governance........10
9. Providing Requirements for Disputes, Arbitration and Mediation......................................11
10. Providing Requirements for Safety....................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................14

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Introduction
A tender can be defined as the significant process, where any government as well as
financial institutions subsequently invites bids for the larger projects, which are to be
submitted within provided time or deadline (MacWhinney, 2014). Tender even refers to the
procedure, where all the shareholders of a particular project submit their respective shares or
securities for taking over an offer. For the project of larger assets, tenders are given for the
sole purpose of governing the opening, evaluation and finally selecting the vendors. This type
of tender ensures the fact that the entire process of selection is absolutely transparent as well
as fair. As per the various tender offers that are related to the takeover attempts, there are
purchase price or expense, deadline for response and finally several requested shares. This
tender is the attempt by any business to the land any typical contract, which is requesting
various responses (Burke, 2013). It is same as the formal bids. Any specific tender requests
the various conditions about how any organization would be meeting the several
requirements in the particular company and the information about the operation or
capabilities of the tendering organization.
The following essay demonstrates a formal tender request for the operators of large
asset project. The Australian Standard Code of Tendering or AS 4120-1994 will be utilized
for making this tender request. This essay would be outlining the various critical factors
related to the tender request of any contract. The proper definition of a project in context to a
large asset, proper explanation of project justification and process of contract, project
financing explanation, recognition of project processes, project team and project conditions
and estimation of project labour, plants, and machineries will be properly explained here. The
second part of the tender request will be providing the various requirements for project
change, quality assurance, quality control, management documents, reporting and
governance, disputes, arbitration and mediation and safety.

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1. Definition of Project in context to a Large Asset
A project can be eventually defined as the collaborative enterprise or a specific
individual, who is possibly involving any particular research or design, properly planned by a
typical project team and achieving a particular objective (Kerzner & Kerzner, 2017). This
project is the set of various inter related tasks that are to be executed within any fixed period
of time and also within fixed or previously estimated costs or any other limitations. The
project of a large asset eventually refers to the fact that huge capital or assets are involved
within the project. It is the temporary social system, which is eventually constituted by
various project teams within as well as across the organizations in the purpose of
accomplishing various tasks within provided time (Bell, 2014). The project of the large assets
is the specific part of a broader programme management.
As per Australian Standard Code of Tendering or AS 4120-1994, section 6.1, p. 13,
the starting of any tender process is the proper development of the definition of project or
scope that would subsequently set the entire scene for the proper success of the complete
process. The project brief is eventually prepared for properly defining the project scope and
for this purpose of the various tender documents is prepared (Schwalbe, 2015). This
particular tender document should define each and every requirement of the stakeholders.
These requirements mainly include performance, envisaged functional goals or objectives,
completion dates, performance, requirements of the date. All the known constraints that are
linked with the delivery of the contract must be recognized upfront, such as requirements of
public access, land availability, work limit and many more (Williams, 2014). If these scoping
requirements are failed to be met, it eventually results in the expectations of stakeholders’
failure and hence lead to the dispute cases.

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Since, this project is the planned collection of various interrelated tasks that are
properly executed in the fixed period of time and budget, it comprises of various constraints
as well. All of these constraints should be overcome properly, so that there exists no issue in
the later phase.
2. Explanation of Project Justification and Contract Process
A specific project comprises of various significant factors. Project justification is one
of the major factors in the project that is to be explained within the tender request (Fleming &
Koppelman, 2016). The project justification is the specific attempt for explaining the reason,
why any company requires to implement the specific solution to the problem and the
procedure this particular solution should be implementing the problem. This project
justification is the procedure, which starts at the stage of project initiation for confirming the
requirement to launch the project, which is addressing the problem by the successful
implementation of the solution. Justification of any project of large assets eventually refers to
provide the stakeholders with the comprehensive investigation or analysis about the
environment that is to be changed or altered by this project (Walker, 2015). Another
important definition of the project justification is that when the analysis of the project is done,
it provides the proper interpretation as well as evaluation of each and every result that is to be
delivered by the specific project. There are nine distinct steps in the project justification.
They are as follows:
i) Analysis of Environment: The first and the foremost step is to analyze the project
environment. The project initiator or the specific person responsible for justifying the project
plans for the project justification (Harrison & Lock, 2017). The proper analysis of the
environmental factors is mandatory in the process and without this analysis; it is not possible
to make the project.

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ii) Proposal to Solution: The next step in the project justification is the solution
proposal. The specific project initiator utilizes the results of the environmental analysis for
determining the areas that are requiring improvement (Flyvbjerg, 2013). It actually means
generating a solution that can resolve the current issues and address future possible
difficulties. Solution proposal is an attempt to propose a change to the current environment.
iii) Analysis of Alternatives: The third step is the analysis of various alternatives.
There are other solutions, which offer alternative methods to solve the problem (Heagney,
2016). The initiator should review all possible alternative options to the proposed solution
and provide a substantiation of the appropriateness of the selected solution.
iv) Impact Analysis: The fourth step is the analysis of impact. The various significant
and relevant impacts are identified in the process.
v) Cost Benefit Analysis: The next important step in the project justification is the
cost benefit analysis or CBA (Leach, 2014). There is a ratio between the cost or benefit and
thus reviewed properly.
vi) Financial Analysis: The next important step in the project justification is the
analysis of finances within the project. This is extremely vital for the project.
vii) Risk Analysis: The analysis of risk is yet another significant step in the project
justification (Mir & Pinnington, 2014). The clear assessments of the uncertainties and threats
are checked in this process.
viii) Reporting: The project initiator eventually creates a management summary
report of every analysis for interpreting the project as the most successful and effective
endeavour.

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ix) Validation: The final step is the validation or project approval. Necessary funds
are needed in completing the project successfully (Verzuh, 2015). Several activities are
performed in the process.
Contract process comprises of five specific steps. They are as follows:
i) Selection of a contract: The contract is selected in the step.
ii) Collection of Vital Information: Vital information is collected in the second step
of the contract process (Turner, 2016).
iii) Selecting a Negotiator: The project negotiator is selected in this step.
iv) Contract Review Process: The fourth important step of contract process is the
contract review process. Here the contract is reviewed.
v) Signing of Contract: This is the final step of contract process. Here, the contract is
signed subsequently (Hwang & Ng, 2013).
3. Explanation of Financing of the Project
The third significant factor in the tender request of project of large assets is project
finance. It is the long term financing of the industrial projects and infrastructure that is based
on the projected cash flows of any project and not on the balance sheets of the sponsors
(Kerzner, 2018). A project financing structure includes several numbers of equity investors.
These investors are known as sponsors. The project finance is the proper financing of the
long term infrastructures, public services and industrial projects that is eventually based on
the non recourse or limited recourse finance structure, where the project equity and debt that
are utilized for financing the project are properly paid back from the project cash flow. The
project financing is the loan structure, which relies over the cash flow of project for

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repayment with the various large assets of the project (Pemsel & Wiewiora, 2013). Moreover,
the interests and rights of the project are also checked in the process. This project finance is
attractive to the large assets project as huge capital is invested in this. The project financing is
utilized by various organizations for the purpose of clearing every doubt regarding the
finances of the project.
4. Identification of Project Conditions, Project Team and Project Processes
The success of any project eventually depends on various factors like project
conditions, project team and project processes. The large assets project should have a clear
identification of the project conditions, project team and finally the project processes
(Martinsuo, 2013). The various conditions of a large asset project are given below:
i) Effective Governance: The first condition is the effective governance.
ii) Goals and Objectives: Identification of goals and objectives is the second
condition.
iii) Commitment to Project Success: The proper commitment to the project success
I(Beringer, Jonas & Kock, 2013).
iv) Capable Sponsors: The capability of the sponsors is the next important condition.
v) Secure Funding: Secure funding is the other significant condition.
vi) Project Planning and Review: The proper project planning and review is another
important condition.
vii) End Users and Operators: The proper identification of operators and end users is
another important project condition.

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viii) Competent Teams of Project: The competent project team is yet another
important and significant condition (Martinelli & Milosevic, 2016).
ix) Alignment of Supply Chains: The supply chains should be aligned in the project.
x) Appropriate Standards: The appropriate standards should also be identified and
this is another important project condition.
The project team is the group of members who are associated with the project. The
stakeholders, shareholders, labours, project manager, project initiator, clients and many more
are the people of project team (Too & Weaver, 2014).
The five distinct processes are given below:
i) Conception and Initiation: The first process is the project conception and initiation.
ii) Definition and Planning: The second process is the project definition and
planning.
iii) Launching or Execution: The third process is the project launching and execution
(Reiss, 2013).
iv) Performance and Control: The project performance and control is the next
significant process in project.
v) Closing: The final process is the project closing.
5. Expected Estimation to be Tendered for Project Labour, Plant, Materials and Sub
Contractors
The next factor in the tender request is the evaluated estimation to the tender for
project labour, plant, materials and sub contractors.

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i) Project Labour: The cost of human effort expended towards project objectives.
ii) Plants: The cost of buying and maintaining plants used in project work (Nicholas
& Steyn, 2017).
iii) Materials: The cost of the resources required for creating the products.
iv) Sub Contractors: The cost of the resources or external work, which the project
company seeks for the provided project.
All of these are extremely important for the large assets and these should be registered
properly in the tender request.
6. Providing Requirements for Project Change
The project change is one of the most significant requirements that are given by
various clients. There are some of the major requirements or project change (MacWhinney,
2014). The requirements are given below:
i) The first requirement is to determine the scope of the change. This means it should
be checked that whether change is possible or not. The functional as well as non functional
requirements are checked in the process.
ii) The second requirement is to determine the scope of incorporation of the change.
This means if the project is changed now, will it be able to overcome the shortcomings of the
project and deliver best quality of work.
iii) The third requirement is to gain approval or rejection of this project change
(Burke, 2013).
iv) The fourth requirement is to communicate as well implement a specific approved
change request.

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7. Providing Requirements for Quality Assurance and Quality Control
The various requirements for quality assurance and quality control of a large asset
project are given below:
i) Accurateness: The project should be accurate and correct.
ii) Unambiguity: The lack of unambiguity is the next requirement of QA (Kerzner &
Kerzner, 2017).
iii) Completeness: The project should have the ability to be completed in time.
iv) Consistency: This project should be consistent enough.
v) Modifiable: The next requirement for quality assurance and quality control is that it
should have the ability to accept changes and thus could be modifiable (Bell, 2014).
vi) Feasibility: Feasibility is another important requirement for quality assurance and
quality control in any large assets project.
8. Providing Requirements for Management of Document, Reporting and Governance
The various requirements for management of documents, reporting and governance of
a large asset project are given below:
i) Minimizing Documentation Errors: The first and the foremost requirement for
management of documents, reporting and governance within a project are minimizing the
errors of documents (Schwalbe, 2015). All the errors or problems should be minimized.
ii) Ensuring of Timely Document Submission: The documents should be submitted
and distributed on time and this would ensure document management, reporting as well as
governance.

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iii) Facilitation of Document Retrieval: The proper document retrieval is another
important requirement. This is the facilitation of document management and governance.
iv) Applying Rules and Regulations: Proper rules and regulations should be applied
and this is yet another important requirement for document management, reporting as well as
governance (Fleming & Koppelman, 2016).
9. Providing Requirements for Disputes, Arbitration and Mediation
The various requirements for disputes, arbitration and mediation of a large asset
project are given below:
i) Not Meeting Project Deadline: The first and the foremost requirement for disputes,
arbitration and mediation in a project is not meeting the project deadline or provided time.
ii) Not Fulfilling Requirements: The next requirement for disputes, arbitration and
mediation in a project is not fulfilling the requirements of the project (Walker, 2015).
iii) Not Maintaining Rules: The not following of rules and regulations is anot7her
important requirement of project dispute.
10. Providing Requirements for Safety
The various requirements for safety of a large asset project are given below:
i) Fire Extinguishers: The first and the foremost requirement for safety in a large
asset based project is the presence of fire extinguishers (Harrison & Lock, 2017). The fire
extinguishers are responsible for stopping the fire even on an urgency.
ii) Utilization of Face Shields: The next requirement for safety is the utilization of
face shield for the workers of the project.

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iii) Knowledge of Location of Hospitals: The third requirement for safety is the
proper knowledge of hospital location near the site of the project.
iv) Permit for Hot Work: There should be a legal permit for hot work within the
ongoing project (Heagney, 2016). This would ensure safety for the workers.
v) Task Hazard Analysis: The proper analysis of task hazard or THA should be
eventually performed by the particular team member for mitigating the safety threats within
the project.
Conclusion
From the above discussion, it can be concluded that a tender can be defined as the
particular attempt by any organization to the land, which is eventually requesting responses.
Similar like the formal bids, a basic formal tender subsequently lists every condition about
the procedure of an organization would be meeting the various requirements to the requested
company and also the information about the usual operation or abilities of the tendering
organization. There are various issues that are related to the expenses of the project materials
or labour, project goals or milestones and finally timelines for completing the particular
portions of the work. The various portions that are to be included within this response,
provides a specific overview to the requested company about the intention of the
organization. This tender is much more complicated than a formal bid. The tender is then
requested in proper response linked to the large scale projects or the longer term
commitments. There is always an extra complexity to these additional expenses on either side
of this business that is submitting a tender. This tender offer is not at all accepted by the
requested company. The tender offer is the basic solicitation by any particular outside party,
which is solely attempting in acquiring the controlling portion of the shares of this particular
organization and thus resulting into the form of taking over for the purpose of considering it

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to be hostile. The payment that is offered over the shares is always over the original or
present market value and hence enticing the shareholders in releasing the specific share
numbers to that outside party within the provided time or deadline. The above report has
clearly outlined a detailed formal tender request for the operators of a larger asset project.
The Australian Standard Code of Tendering or AS 4120-1994 has been utilized for
developing this tender request as the principal for a project of large assets. The various details
such as project definition, project justification, contract process, project financing,
identification of project conditions, project processes and project team has been identified in
the tender request,. Moreover, the estimation of project labour, plant and many more are
provided here. The various requirements related to safety, disputes, arbitration, quality
assurance and control and many others are also explained in this tender request.

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References
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Beringer, C., Jonas, D., & Kock, A. (2013). Behavior of internal stakeholders in project
portfolio management and its impact on success. International Journal of Project
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Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
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