Construction Procurement PDF

CONSTRUCTION PROCUREMENT CEM PROFESSIONAL COURSE 2 Prepared by: ENGR. JOHN CARLO B. MAMPUSTI CAUSES OF DELAY CONSTRUCTION PROCUREMENT Construction Procurement is a process used to select the lowest competitive and most quali...

CONSTRUCTION PROCUREMENT CEM PROFESSIONAL COURSE 2 Prepared by: ENGR. JOHN CARLO B. MAMPUSTI CAUSES OF DELAY CONSTRUCTION PROCUREMENT Construction Procurement is a process used to select the lowest competitive and most qualified bidder for procuring services, civil works or goods from potential competitors based on the procurement criteria. Acquisition of goods, consulting services, and the contracting for infrastructure projects by the procuring entity. CONSTRUCTION PROCUREMENT DEFINITION Bid - A proposal submitted by a contractor or supplier to undertake a construction project at a specified price Bidder – refers to the contractor who submits a bid in response to the requirement for the bidding documents Bidding Documents – documents issued by the procuring entity as the basis for bids, furnishing all information necessary for a prospective bidder to prepare a bid. CONSTRUCTION PROCUREMENT DEFINITION Bid and Awards Committee – refers to the committee who post the invitation to bid, conduct pre-procurement and pre-bid conferences, conduct evaluation of bids and post-qualification proceedings, and award the contract to the chosen bidder. Procuring entity – refers to any agency, department or bureau, office, SUC and LGU, and other government or private agencies. Tender - A formal offer to execute work or supply goods at a specific price, often following a competitive bidding process. CONSTRUCTION PROCUREMENT IMPORTANCE OF PROJECT PROCUREMENT MANAGEMENT 1. Allow to obtain goods, services, and work at the best possible prices through competitive bidding 2. Provide equal opportunity to construction companies 3. Through proper vetting of suppliers and contractors, procurement ensures that only high-quality materials and services are acquired, leading to better project outcomes. 4. Procurement processes include evaluating suppliers’ reliability and capacity, reducing the risk of delays or non-performance 5. Procurement ensures that purchasing activities comply with all applicable laws and regulations, avoiding legal penalties and potential project stoppages. 6. Procurement provides a clear, documented trail of all purchasing decisions, helping to ensure transparency and accountability. CONSTRUCTION PROCUREMENT IMPORTANCE OF PRE-QUALIFICATION IN PROCUREMENT EMPLOYER 1. Protect the employer against unqualified bidders 2. Quicker Evaluation for only pre-qualified bidders 3. Ensure award to least evaluated, not lowest bidder 4. Assess level of interest shown by bidders 5. Show competency and methods of implementation CONSTRUCTION PROCUREMENT IMPORTANCE OF PRE-QUALIFICATION IN PROCUREMENT BIDDER 1. Saves bidders from cost of preparing bids 2. Assure prequalifies bidders for their bid consideration 3. Reduce low balling bidders from participation 4. Make bidders to be better planned CONSTRUCTION PROCUREMENT PROCESS 1. PRE-PROCUREMENT CONFERENCE Preparation of the following: 1. Preparation of scope, approved budget, and duration of the project 2. Ensures that procurement are based on the project procurement management plan and annual procurement plan 3. Determine the readiness of the procurement – appropriation for the project and bidding documents. CONSTRUCTION PROCUREMENT PROCESS 1. PRE-PROCUREMENT CONFERENCE For infrastructure projects, it is important to have the following 1. Detailed engineering design 2. right of way acquisition 3. Program of Work 4. Criterial for eligibility screening, evaluation bid, and post- qualification 5. Procurement schedule 6. Equal access for information CONSTRUCTION PROCUREMENT PROCESS 2. INVITATION TO BID - Posted for 7days - Eligibility documents should be submitted on time - Bidders who submitted their documents will be considered for shortlisting (3-7 entities) CONSTRUCTION PROCUREMENT PROCESS 3. PRE-BID CONFERENCE - Gathering of BAC and prospective bidders - Discuss the requirements of the project, terms of the project, condition of the project, and specification of the projects. Pre-bid conference shall be held before the deadline of reciept bids at 12 calendar days before the deadline for submission and receipt of bids. But not earlier than 7 calendar days from the PHILGEPS posting invitation to bid. CONSTRUCTION PROCUREMENT PROCESS 3. SUBMISSION OF BIDS Envelope A (Technical Envelope) 1. Construction Methods 2. Construction schedule with S-curve 3. Equipment and Manpower Utilization Schedule 4. Health and Safety Program Envelope B (Financial Envelope) 1. Proposal and Contract 2. BID (Affidavit) 3. Project Description 4. Summary of BID Prices 5. Bill of Quantities 6. Back up computation (Detailed Estimates) CONSTRUCTION PROCUREMENT PROCESS 4. EVALUATION OF BIDS Ensures the; 1. Completeness of bid 2. Arithmetic corrections BAC evaluates the quality or the technical component and theCost or financial components. CONSTRUCTION PROCUREMENT PROCESS 5. POST QUALIFICATION It is where the lowest calculated bid or highest rating bid will under go evaluation to ensure that the bidder meet the necessary evaluation/criteria/condition of procuring entity of the projects. -Legal, technical, and financial evaluation - The bidder shall submit the post-qualification requirements with in 5 calendar days after receiving a notification that the bidder is the lowest calculated/ highest rating bid. CONSTRUCTION PROCUREMENT PROCESS 6. NOTICE OF AWARD BAC will award the notice of award to the lowest calculated bid or to the highest rated bid. The winning bid will be given 10 calendar days from the Notice of Award to comply with necessary documents -Valid JVA, if applicable - Valid PCAB licensed and Registration for Foreign Bidder, if applicable