Organizational Structure: Tendering In Top Construction Companies Continued

This article looks at the activities of the tendering department in some of the top construction companies.

In our last article we discussed about important roles in the organizational structure of a construction company. We discussed the roles of the chairman, how he sits at the top and is the guiding force of the company and the mentor. Then we elaborated on the role of the managing director, hoe he is the driving force of the organization and how he controls the daily and overall functioning of the organization. We then went on to discuss the roles of the accounting and sales departments and how they are two very important pillars of the organization, also how important it is for these two areas to function right.

In todays article we will look at another other area of the organization namely tendering.

A lot of us read newspapers every day. We browse through our favorite sections read on and when were done we simply put aside the newspaper and move on with our daily tasks. There is a section which most of us hardly focus on. This section advertises many tenders from government and private sectors for jobs they are inviting bids for. Many of these tenders are construction work related.

This is where the job of the tendering department comes in. in many companies the tendering department goes through such tenders and shortlists those which the company is eligible to apply for and then filters them on the basis of the ones the company wishes to bid for. The tenders which the company wishes to participate for are then carefully scrutinized by estimation and planning engineers.

Even quantity surveyors are roped in to study the tender documents. At first glance the estimated value of work is looked into. If the value falls in the range the company is comfortable with then they move on to the next stage, which is earnest money. Usually the earnest money deposit is 2% of the value of the contract and it is a refundable fee. Then the technical bid is studied carefully. The detailed drawings and bill of quantities are looked into. The quantity surveyors reconfirm if the quantities in the BOQ are as per plan. The estimation and planning engineers forecast the schedule of activities and prepare an estimate based on prevailing market conditions.

Many civil engineers in Delhi take help from the Delhi schedule of rates or from the Delhi analysis of rates. The first book shows rates as per prevailing cost index for various items. It is very easy to find out rates, which may be hard to arrive at on your own in a short time span. Therefore engineers from CPWD have compiled a comprehensive rate list for Delhi known as the Delhi schedule of rates. The Delhi schedule of rate contains rates of many items such as ready mix concrete, cement plaster, roadwork, earthwork, steel work, labor rates etc.

The second book the Delhi analysis of rates is amazing as it shows the break up cost of many activities. For example for concreting it will show the amount of cement, sand, and stone aggregate required as per mix in exact quantities. It will in detail show the man-hours required by skilled and semi-skilled workers to prepare the mix and pour it. It will give a detailed analysis in transportation of the same, it also shows wastage and contractors profits. All in all its a great book to quickly analyze the cost of almost any construction related item.

We will take you through he process and role of the tendering department in more detail in our next article.

by: Kaliska Davis

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