More so the researcher opted for the Ahanta West District Assembly because they would be able to provide the requisite answers to the research questions in order to meet the objectives of this study. It is often limited to a fixed time scale, although the needs of the client may often require this to be extended. They will include some or all of the following;. Request for quotation is by far the least complex procurement method available. Hence value for money cannot be achieved but rather causes financial lost to the state if it is a state financed project. Lysons and Farrington 2006 On the date arranged for the opening of tenders, appointed officers from the procurement department and an external department such as the treasures departments will attend. Neither method of tendering nor any other means of procuring works can therefore guarantee avoidance of troubles.
Thus mistakes in pricing can be reduced, so that both the engineer advising the employer and the contractor are confident that the job should be completed to budget if no unforeseen troubles arise. · There is risk of price escalation, and negotiations becoming adversarial in the second stage. There is a best practice trend to break large contracts into lots to ensure that there is greater competition, a better appreciation of relative strengths i. How to Optimise Costs and Add Value ,1 Edition, Cambridge; Cambridge Academic. Additionally it will serve as a guide for further studies for students who are pursuing the same program.
According to the Oxford English Minidictionary 1999 , value is the amount of money etc considered equivalent to something or the extent to which something is considered useful, important etc. Filed Under: This procurement method is used under conditions stipulated in the procurement legal and regulatory framework and, accordingly, can be requested in writing: email, fax, courier, but not telephonically. A checklist should preferably be developed for requesting entities to complete in sufficient detail to justify the need for fulfilling a procurement requirement from a single source. Thus tender documents are processed manually. It also aligns with the principles of sustainable development which require the fair, ethical and transparent treatment of suppliers and the supply chain. In the end, the Quantity Surveyor will recommend which tenderer, who in his opinion, is the most suitable to undertake to execute the project. A procurement entity shall may for reasons of economy and efficiency and subject to the approval of the Board engage in procurement by means of restricted tendering.
Short listing as in the restricted procedure. A … deposit is usually required to ensure that only serious offers are made; Presumably it is needed to cover the cost of copying the documents. Faced with competing financial pressures, most contractors will carry out their own assessment of the jobs they wish to tender for, and will be less inclined to bid for those where the procedures involved are perceived as overly complicated or onerous. Scrutinizing the terms and conditions of contracts for the supply of goods and services to ensure that these are as favorable as possible to the purchaser. Installation and training may also be included. The rules for direct procurement can be found in Sec 103 and 104 the and — for cases before Jan 7, 2016 — in the.
Make sure that there is good competition not obliged to accept any offers. These were information tapped from textbooks, library books, magazines and the website which helped to provide extra information pertinent to the study. Advantages of Open Tender The main advantage of such tendering is as follow:. The technical proposals submitted are evaluated for responsiveness to the solicitation documents. The Contracting Authority is entitled to restrict the issuing of the public tender to the suppliers it wants to receive a bid from. Production of the documents also means they are available for open or selective tendering should a negotiated tender fail, or should the chosen contractor be unable to undertake the work. This question was meant to ascertain how often the organization makes use of competitive tendering as analyzed below in table 4.
It empowers any concerned contractor to submit tender. In the case of any changes in materials flows which are inevitable procurement unit has a role in announcing the changes as soon as possible with its related cost to the appropriate function and work effectively with them to reduce the impact as well as the number of occurrences. K 1993 Purchasing, 3rdEdition, London; Pitman Publications. The most qualified and appropriate proposal, regardless of price, should be selected. Two of the most common are illustrated below: 1. Tenders are normally based on a specification of requirements prepared by the purchaser but then an alternative is to invite suppliers to submit a solution and a price to a problem stated by the purchaser. The non-tender process includes using a purchase order for … m or asking for quotes from a number of suppliers.
The benefit for the employer is that he can choose only those contractors, who are well experienced and have strong financial background, and contain the resources and expertise to execute the work. The best way to tender a resignation is in writing with adequatetime given. They discussed the following as some of the roles of the procurement unit in ensuring value for money in public sector organizations. An advertisement may produce several interested contractors and suitable Firms are selected to tender. Give high level of competition and contractors tend to give best prices as compare to other tendering method. The report includes the main procurement performance and operational benchmarks that procurement leaders use to gauge the success of their organizations.
Dobler and Burt 1996 also echoed that to public sector organizations, procurement is a process or concept which encompasses a wider range of supply activities than involved in purchasing functions and typically includes broadened view of traditional buying role with more buyer participation in related material activities. The client publishes the tender offer in the local newspaper as an advertisement. Restricted open tender With this method prospective suppliers are also invited to compete for a contract, the advertising of which is restricted to appropriate technical journals or local newspapers. The most suitable type of tendering for the project is selective tendering. The advantage to the employer is that he can select only those contractors, who have adequate experience, are financially sound, and have the resources and skills to do the work.
Filed Under: Acquiring goods, services and construction works from only one source is referred to as: sole-source procurement, single-source procurement, sole-source selection, direct procurement, among others. Breaking larger contracts into lots is a requirement under the 2014 directives. From a purchasing perspective competitive tendering is a purchasing procedure whereby potential suppliers are invited to make a firm and unequivocal offer of the price and terms on which they will supply specified goods and services, which on acceptance, shall be the basis of a subsequent contract Lysons and Frrington 2006. Again it was to ascertain if the type of tendering procedures used in the procurement of goods, works and services at the assembly has helped to achieve value for money for the organization and the state as a whole since it involves the use of state funds of which it was identified that the assembly uses the competitive tendering methods. The principle of tendering is to ensure that true competition is achieved, as it is evaluated by applying certain criteria.
They include a Open Tender This method is prioritized by law. The interrogation can be made for public accountability may be questioned if the lowest offer is not accepted. Once more the researcher recommends that the Assembly should get computers especially for the procurement units so that tender documents can be prepared or processed electronically to reduce the tendencies of committing human errors, work faster to enhance progress and to become technologically inclined. This process is usually manage by procurement board where its staff are trained for such exercises and board ensure that all the procedures involved in tender are followed. The issue of public advertisement inviting tenders. They stated categorically that since price is affected by cost in the long run, an important function of the procurement is to work with colleagues and suppliers to eradicate unnecessary cost such as over specification, unnecessary packaging etc. It follows that only firms of sufficient standing and experience in that particular type of work will be approached.