A study on Process flow of tendering & contract in corporate.

Synopsis

Submitted by

Harish

4MT20BA015
Under the guidance of

Internal Guide External Guide

Verina D'Souza Narasimha Holla
Assistant Professor Senior Business Support
Executive
Manipal Technologies
Limited

Academic year: 2021-2022

Department of Business Administration

MANGALORE INSTITUTE OF TECHNOLOGY & ENGINEERING

Accredited by NAAC with A+ Grade, an ISO 9001:2015 Certified Institution
Introduction

About the industry:

Indian printing industry has seen a drastic change in the last 15 years. After 1990 India
initiated a process of reform, aimed at shedding protectionism and embracing liberalisation of
the economy. Privatisation was initiated with the aim of integrating the with the world
economy. This gave an opportunity to the Indian printing industry to grow and improve their
Technology and machinery. The average compound annual growth rate of printing and
packaging industry is 12%. And it is now currently growing at the rate of 16% a year. Today
India is one of the leading print producers and manufacture of printed products for the world
printing industry. Currently the annual turnover of the Indian printing industry is 11 billion.
Indian manufactured printed products are being exported to more than 120 countries. India
currently has more than 2,50,000 companies. And India is the only country which have
largest number of printing press in the world. Printing activity is done with the Technology
and advanced machinery and it also uses computers, Lasers and microprocessors which gave
an opportunity for printing industry to expand its potentials.

Currently India has all types of printing press all over the country and more than 10
million family involved in it. The value of the print industry across India was over 225 billion
in 2021. This was expected to exceed 250 billion rupees by 2024, It indicates a compound
annual growth of around 3 percent annually. The major reason for this growth in the sector is
increasing in the literacy level all over the country, that is increasing the usage of paper
material products, and digital format of information and also Banking, financial related usage
of paper products as well security item as well as non security item and cards.

So, printing industry has a vast opportunity for the growth in future so for this growth
organisation rely on Tender and contract alert or notification, From Private and public sector
organisation that may be through website tender notification, Service provider, Email tender
Notice, and sales team. Where potential organisation or the bidder can apply for that Bid
through online mode that is by website registration document submission through soft copy
in specified website. And one more method is that through offline mode where organization
or the bidder need to submit the required document by hard copy. So once the bidding
process complete than client will choose the best bidder with low price and high quality
which is suitable for the Client. So which organisation/bidder win the bid than they need to
submit the required documents and they have to give the services as promised in bidding
process.

Literature review

1.Tendering Process: Improvement of Analysis and Evaluation of Tenders based on

(Diabagate et al., 2014) the Use of Fuzzy Logic and Rule of Proportion: In this paper it gives
the overview of the tendering process that starting from drafting of specification till choice of
provider and contracting with the help of Fuzzy Logic and Rule of proportion, it also stated a
method of analysis & evaluation of tender using weighting of criteria and prioritization of
criteria, and in the same time they have proposed solution for their problem statement.

2. Contractor’s bid pricing strategy: a model with correlation among competitors’ prices:
(Jaśkowski & Czarnigowska, 2019) In

There are no sources in the current document.this paper they mainly focused on the
perspective of the construction industry with the model of corelation, according to this paper
finding out the bidding price is the key strategy against their competitor to win and compete
and maintain sustainability in the industry. It describes how to select the tendering that
choosing whether to participate in bidding or not, and this paper explain what are the
eligibility criteria for bidding process.
3. Workflow from Within and Without: Technology and Cooperative Work on the Print
Industry Shopfloor (Bowers et al., 1995). This paper research is on a particular organization
in the printing industry This gives an overview of work flow system introduced to the shop
floor employee in that organization. This paper also given suggestion that workflow system
can often seen as technologies for organizational ordering and accountability.

4.Critical success factors for e-tendering Implementation in construction collaborative

environments:(Eric & Mustafa, 2009) people and process issues: This paper is also focused
on the tendering and contract process in the construction industry. Because of globalization
the companies have very large competition in the industry, that each firm can get the
information of the tendering notification and they can access the information through
website, it gives brief about how these online/e-tendering process work, what are the phases
include in it and what are the procedure need to follow during e-tendering bidding process.

5. Quality of tender documents:(Laryea, 2011) case studies from the UK: In this case study it
gives brief information about tendering process in perspective of who offer the tendering to
the who are seeking for the tenders. It also gives idea about how tendering process work they
have included the theoretical frame work of construction tendering. It gives standard
documentation required for the tendering process, and what are the effects of poor tender
documents. And this paper tried to give what are the reasons for poor documentation.

6. Tender and Contract Documents:(Complex, 2007) This research paper gives information
about components of tendering, agencies responsible for the tendering process, procurement
method pre-qualification procedure, and documentation need to be prepared based on the
qualification requirement. It involves coast estimation and operation and maintenance
required for the tender product and delivery process and coast od estimation of logistic
department all need to be included and should give a complete estimation and supporting
documentation required for the bidding.

7. Implementing e-tendering to improve the efficiency of public construction contract in

Saudi Arabia: (Al-Yahya & Panuwatwanich, 2018)This paper presents e-tendering model for
the public sector contractor in construction industry in the Saudi Arabia. And it gives a glance
on what is the scope of e-tendering over the traditional method of tendering. According to
this paper e tendering minimize the tendering process and maximize the quality and
transparency in the e-tendering. They have in-depth analysis of traditional and e-tendering all
over the country. It gave an in-depth analysis of tendering process and their merits and
demerits, collecting primary samples from industry player they have used t-test for analysis.

8. Everything you wanted to know about tendering but were afraid to ask: In this paper author
given a broad information about tendering process in Australia(Williams, 2018). Which gives
a detail information about tendering process and the legal status of that process. Types of
documentation issued as part of the tendering process. And issues arising as part of the
tendering process. Tendering for government policies & codes. In this paper they also
mentioned process of commonwealth procurement rule 2014, how bidders can use the
common wealth rule. Tender particulars which are included in tendering process that are
closing time & date information document, tender administrator, maximum number of
industry personal to attend industry personnel, additional condition participation, tender form
and statutory requirement.

9. A Case Study of a Negotiated Tender within a Small-to-Medium Construction Contractor:

Modelling Project Cost Variance: This paper gives an overview detail of procurement and
tendering in the UK construction industry(Ellis et al., 2021). It gives the detailed tendering
process right from 1900 to 2007 in the UK. Barrier to integrated project delivery that are
contractual, Education and technology, Reluctancy to change, collaboration and
communication. Integrated project delivery selection process that are project owner team
project advertised, request for qualification, long list, site visit, technical proposal, shortlist,
IPD workshop, Design concept proposal and final interview. In this paper they used literature
review & pilot study and quantitative analysis of the case study data and quantitative data
collection using a focus group.

10. Comparative study on improvement of tender system in Myanmar: The purpose this
purpose of this paper is to study and improve the different types of only public tender system
and contract system in Myanmar (Myint & Thein, 2018). They split their study in two ways
that are one is comparing tender system and the second one is tender system for each ministry
are studied. Tender system for each ministry is studied, and the most suitable and better
tender system is compared with America institute of architecture, these tenders are utilised by
government departments offices and agencies, private sector companies and business, non-
Government organization, overseas markets and businesses. They used methodology of
different types of tender system for four ministries.

11. Online Bidding System with AI:(Popat, 2018) The three Indian author Dhrumil, Parth,
Brijesh Rtahod. In this research paper, they are stating that broad usage of internet all over
the world has influenced the all field in world and even India. So that has also has impacted
to the tendering and contract field in the public and private sector in the country. They have
given traditional practices of the tendering and contracting and present practice in the same.
That they specifically differentiated proposed system and existing system, they have
conducted literature review on the topic they have used methodology of collaborative
filtering and content-based filtering.

12. Quality of tender documents: case studies from the UK: This study gives in-depth
analysis of documents used in the tendering contracts in the procurement(Laryea, 2011). Aim
of study of this paper is the clarity and standard way of preparation of the tender document.
And practices we need to use while preparing tender document. They have given theoretical
document, industry tendering, tender document, quality of tender document, consequences of
poor document. They have used research questionnaire for the research process about 7
questions. Research method they used are comprehensive, intensive and inductive. They also
used case study for the explanation of the situation case study are Delta, Gamma.
13. Collusions in Public Procurement: This is an insight into cartels, bid rigging, fraud and
corrupt practices, it gives idea of rule covering central public procurement and rule covering
procurement by state government, major guidelines for procurement by central
government(Collusions in Public Procurement “ There Is No Kind of Dishonesty into Which
Otherwise Good, n.d.). And preference policies in public procurement that mainly for the
start-up organization where government give some relaxation for the start-up companies to
encourage make in India. And it gave some point on weakness of public procurement and
systematic problems which are there in public procurement process. Explained about points
of bid rigging bid suppression, complementary biding, bid rotation, sub-contracting, market
allocation. Risk assessment are Industry, Product and Service Characteristics That Help
Support Collusion, Small number of companies, Little or no entry, Market conditions,
Industry associations, Industry associations, Identical or simple products or services, Identical
or simple products or services, Identical or simple products or services.

14. Standard bidding documents-procurement of textbooks and reading materials: The world

bank has released procure document which are required for bidding process for the bidder of
text book and reading material(SBDTextbooksENApr2015 (1), n.d.). Bidding document
should have selection of bidding document, clarification of bidding document, amendment of
bidding document. Process of how to prepare for bids that include cost of bidding, language
of bidding, Document comprising the bid, letter of bid and price schedules, alternative bids,
bid price and discounts, currencies of bid and payment, Documents establishing the eligibility
and conformity of the goods and related services, period of validity of bids, bid security,
format and signing of bids.

15. Study of influencing factors of tender evaluation: an evidential reasoning approach: This
research paper on the perspective of multi criteria in selection of tendering process which has
come from the various bidder, so evaluation has to be done for the selection of best high
quality and best price bidder we need to select for the job to allocate (Sarker et al., 2012). So,
criteria in selection of these bidder, which are the process involved in selection criteria are
mentioned, and the factors influencing, and some of the facts that are considered while
selecting bidder. Main factors considered are relevant experience, past performance, technical
skill, management system, price. Ranking tenders based on these factors and finally selecting
the rankers based on the rank.
16. Study on different types of tenders, tender qualification/ processing, quantitative
techniques for tendering, planning and monitoring a review. Students from engineering
college B. Hemanth Roy & R. Manoj Kumar. Mandatory requirement in tendering process(B
Hemanth Roy & R Manoj Kumar, 2017). Fixed price contract, Percentage rate contract, Pppt
method, Epc method, Ham method, Swiss challenge method. This paper suggest that is a mix
od of both EPC and BOT models.

17. The significance of the tendering contract on the opportunities for clients to encourage
contractor led innovation:(Sidwell et al., 2001) during the tendering process major
construction contracts have opportunity to suggest bidder to make alternative changes in the
innovation these changes will influence and it advantage for both bidder and even for client,
this paper suggest that there may be practise of some alternative changes in the innovation
requirement can be done. This paper also concentrated on the problem with the competitive
tendering. Potential breach of the tendering contact, guidelines on contract selection,
guidelines to avoid breach of the tendering contract in the competitive bidding process.

18. Tendering strategies: In this paper they stated with stating difference between the
tendering and contract(RICS, 2014). It gives information on the main types of tendering that
are single stage tendering, two stage tendering, negotiated tender, setting up tender- opening
tendering, selective tendering, single contractor selection. Compiling the tender document,
practical consideration in the tender scoring technique, advice on tendering strategies,
managing & reporting tendering and negation process and outcome, design-checking periods
between tender return and signing the contact.

19. Critical success factors for e-tendering implementation in construction collaborative

environments people and process issues:(Eric & Mustafa, 2009) In this paper it gives
information on the whole tendering process of construction industry where it gives
information on tendering phase, people and process, brief over view of e tendering process
and key success factor in e tendering process and they also mentioned four case study in
evidence to the situation, and analysis on preparation on tender, tender out, estimating task,
tender requires. This paper concluded with critical success factor of people and process for
successful implementation of e-tendering.

20. Evaluating the Factors Affecting Contractors Tender for Project Construction: (Obodo et
al., 2021) An Empirical Study of Small-Scale Indigenous Contractors in Awka, Nigeria: This
paper also is based on the construction process tendering in the Nigeria. This paper is on the
basis of empherical research that they have done literature review, Varying procurement
strategy that are tradition method design and build system, management method, companies
strength and project risk, and methodology primary data collection method they have used for
the research process.

Objective of study:

 To understand process flow of tendering and contract in corporate.

 To understand the types of tendering and contract practises in present.
 To understand the criteria required for the bidder in bid submission.
 Evaluation criteria used in selection of bidder for operation

Scope of the study:

This study will help me understand the process flow of tendering & contract, different types
of practices present in the process of tendering. It give a overview of criteria or the
qualification required for the bid submission for the bidder, and different types of document
required for the bid submission.

Data collection:

This research is based on the secondary data collection, secondary data will collected from
published text books, journals, reports, and published theories, among other sources.
Secondary data will also be gathered through web sources.

Reference:

Al-Yahya, M., & Panuwatwanich, K. (2018). Implementing e-tendering to

improve the efficiency of public construction contract in Saudi Arabia.
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https://doi.org/10.1504/IJPM.2018.091666

B Hemanth Roy, & R Manoj Kumar. (2017). Study on Different Types of

Tenders, Tender Qualification/ Processing, Quantitative Techniques for
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https://doi.org/10.17577/ijertv6is110209

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Ellis, J., Edwards, D. J., Thwala, W. D., Ejohwomu, O., Ameyaw, E. E., &
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