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single package vs multiple contracts

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single package vs multiple contracts

Post by shobe on Thu May 14, 2009 3:15 pm

In an infrastructure as big and as expensive and as complicated as NAIA Terminal 3, which scheme do you think would be better? Procuring the project under one package or dividing the same into lots with different winning contractors, with the following factors taken into consideration: efficiency, accountability, time (completion), procurement process, and cost among others.


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Re: single package vs multiple contracts

Post by riddler on Thu May 14, 2009 5:35 pm

In my opinion it would be better to Bid the Project into a one whole package. One Experienced Consultant vis-a-vis One Experienced Contractor, One Procuring Entity, One Contigous Project, and One Accountable Entity. THe winning Contractor naman can subject the other parts (not more than 50%) of the Contract to Sub-contractors or Specialty contractors.

If we break the project into several components, a mountain of paperwork shall be prepared, tapos baka ma delay ni contractor number 1 ang isang component project, at baka hindi maka proceed si contractor number 2 para sa kanya ring project, and so on.. It may create a domino effect that may delay the project.

Sa whole package, kailangan natin ang isang magaling na Consultant at magaling na Contractor.

At saka careful planning then sa part ng procuring entity like, preparation of the Terms of Reference (TOR) of the project, selection of Consultants and Contractor, at saka the preparation of the Contract itself, sana flawless para smooth ang takbo ng project. Smile

PS. Kailangan di ang magaling na Contract Engineers sa part na Procuring Entity to watch the Consultants and Contractors. Sa kontrata kasi ang common na pagttalo sa implementation ng project.
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Re: single package vs multiple contracts

Post by shobe on Thu May 14, 2009 6:08 pm

Thanks Sir Ruel. Wink

Actually we share the same view, yun lang, some are thinking na mas mabilis matapos yun project if different contractors are simultaneously doing the project. Thanks again. Hope others can also share their views on the matter.
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Re: single package vs multiple contracts

Post by RDV @ GP3i on Fri May 15, 2009 1:39 pm

shobe wrote:
In an infrastructure as big and as expensive and as complicated as NAIA Terminal 3, which scheme do you think would be better? Procuring the project under one package or dividing the same into lots with different winning contractors, with the following factors taken into consideration: efficiency, accountability, time (completion), procurement process, and cost among others.
Question

It is where the importance of Procurement Planning comes in. The decision of how to 'package' a certain project should be part of the procuremeng planning process. Of course it should be based on a number of factors, such as the complexity of the project, which would affect the facility of its implemenation, economy, organization efficiency and effectiveness, timing, practicability, among others.

For a project as big as NAIA Terminal 3 (although for purposes of RA 9184 it would not apply as it is a BOT project exempted from the GPRA), weighing the advantages and disadvantages, the advantages of packaging the project as one would weigh more over breaking it down into several packages.

For one, as pointed out by engr ruel, there could be inter-related activities that if, for example, package 1 is delayed package 2 cannot commence, or if there were variations order in package 2 it would have an effect on the costing and timing of package 3, and so on.

Another, it could be an organizational nightmare for the procuring entity to just try to coordinate between different contractors, instead of just one main contractor who in turns is responsible to his sub-contractors.

Another, during the preparation of bidding documents, there could be so many assumptions as there are projects which would be dependent on other projects being completed as scheduled. If contractors would be factoring in delays in their costing, schedules (PERT-CPMs), it may result to higher bids.

I think, the practical thing to do is to bid the project as one package, but specifically mention in the bidding documents that sub-contracting will be allowed and which portions of the project could be sub-contracted. The sub-contractors should be identified by the main contractor which it includes in its bid proposal and these sub-contractors will still have to pass eligibility check by the procuring entity.
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Re: single package vs multiple contracts

Post by shobe on Fri May 15, 2009 2:26 pm

Many thanks Sir RDV.

I hope someone favors the other option though so i can a make a more rationale decision for a purported proposal. Thanks again po sir.
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