What should you consider during the procurement process?
Procurement processes play an essential role within any industrial company. These procedures may vary between organizations, and include key factors such as time frames, quality, service, or direct negotiation. Professional advice should be sought to help the asset owner in the selec- tion of a demolition contractor to undertake the work.
Procurement management ensures that the asset owner identifies and selects the appropriate demolition contractor to reach the objectives of the demolition project. This process requires the customer to carefully select a multidisciplinary contractor considering:
- Qualification of the contractor to perform the work
- Terms of project implementation
- Cost of work and recoverable materials
Asset owner is responsible for preparing the following in order to invite bids and gather infor- mation and input from demolition contractors:
- Compilation of bid package: The set of documents with the scope of the project, specifications, and general conditions that the demolition contractor will use to develop its offer.
- Considerations for procurement: Relevant internal policies and contract conditions for demolition contractors.
- Identification of candidates: Selections of qualified suppliers and pre- qualification to rank contractors.
- Request for information (RFI): Ensure that you have enough information by collating information from different suppliers.
- Selection of candidates: Bidders that meet the minimum requirements progress further in the procurement process.
- Bidding package submission: Tender submission of an invitation to bid to preselected candidates including all relevant information.
- Site visit with all bidders: Physical inspection of the facility with all bidders to gain in- depth information.
- Update the bidding package: Considering all suggestions from different bidders.
- Bidding package version 2 submission: Submissions of an updated version of the bidding package considering outputs of project preparatory activities.
- Receipt of proposals: Reception of all bidders’ offers in the format, date, time, and place stated in the bidding package.
- Proposal evaluations: Technical evaluation scoring the proposals considering the strengths and weaknesses of the bidders, identified risks, and cost analysis.
- BID clarifications: contact bidders to clarify aspects of the offer that are unusual or ambiguous.
- Negotiation: With suppliers to get better deals by determining the fairest price with a quality service.
- Proposal award: Selection of the most preferable demolition contractor among the proposed.
It is important to point out that there must be a formal written contract with all the demoli- tion service providers. Subcontracting any part of the work should be only permitted with the written consent of the asset owner.
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