Procurement and Tendering Process for Industrial Unit

Additionally, there is no underestimation of the economic and social value of buildings. In particular, in cases where there is a specific design (as in the case), the building must improve the social wellbeing, liveability and steer the standards of living among the surrounding communities. Therefore, adoption of comprehensive tendering and procurement strategy which offers an all-around consideration and exploration of the possible option will be important for identification of proper delivery model. Moreover, effective acquisition and tendering process will ensure that the outcomes will have managed any potential risks as well as the contractual disputes incidences, time as well as the cost of construction. This paper will thus offer precise analysis of the effective procurement and tendering process for the industrial unit with a specific focus on Australia.

The process begins with identification and ends with acceptance of the assets or products or disposal where applicable. As a result, ten procurement processes have been identified by the NSW Government Procurement Policy. According to Greenhalgh (2012), the building industry is made up of several features of procurement which might not be available in other industries. Before embarking on the procurement process, Walker and Rowlinson (2007) outline the understanding of the project type as an essential success factor. The construction in this instance falls under the engineering project or commonly the earth project. Also, the procurement process will also facilitate the determination of whether to use an open selective tender process and the structuring process evaluation. Therefore, the most suitable process of procurement for this project would be one which complements both the contract form and the delivery model.

Moreover, a process that would help in the identification of an ideal tenderer which has the technical capability, financial capacity as well as any other attributes that which are essential for the delivery of services or works. The essential procurement processes that the client should follow The client needs to establish a new building upon realising the dynamicity of the market and based on the fact that the operations changed to consultancy services. Therefore, the proper procurement processes from inception, development, and implementation ought to be followed. Hence, for the vendors to be selected, they must be known to uphold a good reputation in that particular field. Also, the client should consider whether he would want to keep a lasting relationship with the vendor or not since the former saves time and costs of looking for new tenderers to supply the same goods in future (Peace and Bennett).

The vendor that the client select should be aware of the legal provisions of Newcastle and the rest of the country since the client is seeking to uphold them while serving his customers and building his reputation as well. The client is then required to request for the purchase of the materials as the first development stage of the procurement process. This stage involves seeking the internal approval from the company’s relevant departments including the finance offices. Once the client receives the invoice, he will be supposed to notify the vendor of any changes made and when he expects the delivery. Three documents; the purchase order, order receipts, and the invoices are involved up to this far, and they are all scrutinized to ensure consistency before taking the last step; payment upon delivery.

The client through the relevant departments then undertakes bookkeeping and auditing. Tender process and the relevant documentation The tendering process follows specific steps to ensure that no possible error can affect the project execution. Firstly, the advertisement is done to provide awareness to the prospective clients. Evaluation involves checking the applicant’s compliance and disclosure requirements, qualitative requirements, and the value of the project in money. ` The fourth process is awarding the identified contractor upon a critical evaluation. Here, the selected contractor can be notified through a written document. This step then finalises the contract process. Also, all the applicants are given a chance to give out their views regarding the entire process regardless of whether or not they won the tender before establishing a committee to attend to any complains that may arise from the unsuccessful applicants.

The technique is not suitable for complex acquisition of goods. The second method is the restricted tendering that which limits the number of requests that the supplier can make regarding the tender. This method is the most competitive methods of procurement regardless of the fact the competition is only limited to the number that the procurement team invites (Knight et al. The procurement team limits the number of potential tenderer by prescribing strict guidelines that the potential lenders must adhere to apply for that given tender. Request for Proposal (RFP) is the third method of procurement of procurement that the company can use to request bids for tenders from a particular company that a contractor has faith. The function of the management consultant is to supervise the construction activities until they are completed.

The form has some advantages which include allowing the design and construction to overlap maximally (Kunzlik, 2003). The second merit of the structure is that the maximum level of quality supervision can be achieved since one supervisor used. Thirdly, the fact that the top management has expertise on the whole project ensure quality building. Lastly, the plan costs variation can be easily controlled. The success of a building project is dependent on the effectiveness of the procurement stage. Hence, the entire process should be appropriate, and every step should be fully finalised before proceeding to the next step. This case will also ensure that costs involved in repeating the steps are avoided and that there is an adherence to the established deadlines.

Report recommendation The report dealt with the procurement process that is highly suitable and met the requirements of the ever dynamic construction industry. The company in function involve giving consultancy services on the various building designs, budget, and other technical advice. For this case, the open tendering would be appropriate since it is lengthy and its needs to be validated before another one starts. Therefore, the company can bid on goods using methods such as free competition and an open solicitation. These methods call for though completion among the best clients as the company tries to obtain products with the value of money. References Casey, E. , & Bamford, P. Routledge. Knight, L. , Harland, C. , Telgen, J. , Thai, K. Retrieved from: https://www.