PROJECT MANAGEMENT

ASSIGNMENT-1
S.SOLAI SURYA
1. What is the process of tendering ? Explain in detail from the
issue of tender notice to that of signing a contract agreement.
Tendering is a formal process used by organizations, typically government agencies or large corporations,
to invite bids from potential suppliers or contractors for the provision of goods or services.

 Identification of Need: The process begins with the identification of a need within the
organization. This could be anything from construction projects to procurement of goods or
services.
 Preparation of Tender Documents: The organization prepares tender documents, which typically
include:
 Tender notice or advertisement: This announces the organization's intention to procure goods or
services and invites interested parties to submit bids.
 Instructions to bidders: These outline the rules and procedures that bidders must follow when
submitting their proposals.
 Specifications or scope of work: These detail the requirements and expectations for the goods or
services being procured.
 Evaluation criteria: These specify the factors that will be used to evaluate and select the winning
bid.
 Publication of Tender Notice: The tender notice is published in appropriate channels such as
newspapers, online portals, and government procurement websites to attract potential bidders.
 Bidder Registration and Clarifications: Interested bidders may need to register with the
organization to receive tender documents and updates. They may also seek clarifications
regarding the tender requirements through a formal process.
 Submission of Bids: Bidders prepare and submit their bids within the specified deadline. Bids
typically include:
 Technical proposal: Details how the bidder intends to fulfill the requirements outlined in the
tender documents.
 Financial proposal: Specifies the cost of the goods or services being offered, including any
additional charges or fees.
 Supporting documents: Such as company profiles, past experience, qualifications, and any
required certifications.
 Bid Opening: The organization opens the submitted bids publicly and records relevant
information such as bid prices and bidder details. This process ensures transparency and fairness.
 Evaluation of Bids: The organization evaluates the submitted bids based on predetermined
criteria, which may include technical capabilities, price, quality, and compliance with
specifications.
 2. Define a contract.
A contract is a legally binding agreement between two or more parties that creates obligations enforceable
by law. In a contract, each party agrees to perform certain actions or provide certain goods or services in
exchange for consideration, which typically involves payment or other valuable consideration. Contracts
can cover a wide range of transactions and relationships, including business agreements, employment
contracts, sales agreements, leases, and more.

3. Explain the three types of arbitration?

Arbitration is a method of alternative dispute resolution where parties involved in a legal dispute
agree to submit their case to one or more arbitrators, who then make a binding decision on the
matter. There are generally three types of arbitration:

1. Ad Hoc Arbitration:
 In ad hoc arbitration, parties directly negotiate and agree upon the rules and
procedures that will govern the arbitration process.
 There is no involvement of an institution or organization to administer the
arbitration proceedings.
 The parties have flexibility in choosing arbitrators, determining the arbitration
venue, and setting procedural rules.
 Ad hoc arbitration is commonly used in commercial disputes where parties prefer
tailor-made procedures or where no suitable institutional arbitration rules are
available.
2. Institutional Arbitration:
 Institutional arbitration involves arbitration proceedings administered by a
recognized arbitration institution or organization.
 These institutions have established rules and procedures for conducting
arbitrations, often providing a framework that governs the arbitration process
from initiation to award.
 Examples of well-known arbitration institutions include the International
Chamber of Commerce (ICC), the American Arbitration Association (AAA), the
London Court of International Arbitration (LCIA), and the International Centre
for Dispute Resolution (ICDR).
 The institution typically assists with appointing arbitrators, managing
administrative aspects of the arbitration, and ensuring that the process complies
with the agreed-upon rules and applicable laws.
 Institutional arbitration provides parties with a structured and organized
framework for resolving disputes, often offering greater procedural certainty and
efficiency compared to ad hoc arbitration.
3. Statutory Arbitration:
 Statutory arbitration refers to arbitration mandated or regulated by statute or law.
 Some jurisdictions have specific laws or regulations that require certain types of
disputes to be resolved through arbitration rather than litigation.
 These laws may prescribe procedural rules, qualifications for arbitrators, and
other aspects of the arbitration process.
  Statutory arbitration is often used in specialized areas such as labor disputes,
consumer disputes, and international trade.
 Examples of statutory arbitration include the Federal Arbitration Act (FAA) in the
United States and the Arbitration Act in the United Kingdom.

4. Who is clerk of work and What are his duties?

A Clerk of Works sometimes referred to as a Site Inspector or Construction Inspector, plays a
key role in the construction industry, particularly in larger construction projects. Their primary
responsibility is to ensure that construction work is carried out according to the specifications,
standards, and regulations set out in the contract documents. Here are the main duties typically
associated with the role of a Clerk of Works:
1. Quality Assurance: The Clerk of Works monitors the quality of workmanship and
materials used in construction projects. They inspect construction activities regularly to
ensure compliance with the specified standards and requirements.
2. Compliance: They ensure that construction work adheres to relevant building codes,
regulations, and health and safety standards. This includes verifying that construction
methods and materials meet regulatory requirements.
3. Inspections: Conduct regular inspections of the construction site at various stages of the
project to check for compliance with plans, specifications, and schedules. They may
inspect foundations, structural elements, utilities, finishes, and other aspects of the
construction process.
4. Documentation: Maintaining detailed records of construction activities, inspections, and
any deviations from the plans or specifications. This documentation serves as a record of
the project's progress and can be used to resolve disputes or claims that may arise during
or after construction.
5. Coordination: Acting as a liaison between the contractor, subcontractors, architects,
engineers, and other stakeholders involved in the project. They communicate issues,
concerns, and observations to the appropriate parties and facilitate the resolution of any
construction-related issues.
6. Problem-Solving: Identifying and addressing construction-related problems or issues
promptly to prevent delays, cost overruns, or quality deficiencies. This may involve
providing guidance to contractors on proper construction techniques or recommending
corrective actions.
7. Progress Reporting: Providing regular progress reports to project stakeholders,
including updates on construction activities, milestones achieved, and any challenges
encountered. These reports help stakeholders stay informed about the project's status and
address any issues in a timely manner.
 5. The practice of selecting suppliers through tenders may result
in the wrong supplier being selected evaluate the statement
The statement that the practice of selecting suppliers through tenders may result in the wrong
supplier being selected can be evaluated by considering various factors:
1. Incomplete or Inaccurate Tender Specifications: If the tender specifications provided
by the organization are unclear, incomplete, or inaccurate, it can lead to
misunderstandings or misinterpretations by potential suppliers. As a result, the selected
supplier may not fully meet the organization's requirements.
2. Lowest Price Selection: In some cases, organizations may prioritize selecting the
supplier offering the lowest price without considering other factors such as quality,
reliability, or reputation. This can result in the wrong supplier being chosen if the selected
supplier fails to deliver the required quality or service level.
3. Bidder Misrepresentation: Some suppliers may intentionally misrepresent their
capabilities, experience, or resources in their tender submissions to win the contract. If
the organization fails to adequately verify the information provided by bidders, it may
end up selecting a supplier who is not capable of fulfilling the contract requirements.
4. Lack of Due Diligence: Organizations may fail to conduct thorough due diligence on
potential suppliers, including assessing their financial stability, track record, and
references. This oversight can lead to the selection of a supplier who is not financially
viable or who has a history of poor performance.
5. Unforeseen Circumstances: External factors such as changes in market conditions,
supply chain disruptions, or unforeseen events may affect the ability of the selected
supplier to fulfill their obligations under the contract. While these factors may be beyond
the control of both the organization and the supplier, they can still result in the wrong
supplier being chosen in hindsight.
6. Subjectivity in Evaluation: The evaluation of tender submissions may involve
subjective judgments by the evaluation committee or individuals within the organization.
This subjectivity can introduce bias or inconsistency in the selection process, potentially
leading to the wrong supplier being chosen based on personal preferences or relationships
rather than objective criteria.

6. Explain the contents of articles of agreement

The "Articles of Agreement" are a crucial component of any formal contract or agreement. They
outline the terms and conditions agreed upon by the parties involved. While the specific contents
may vary depending on the nature of the agreement and the preferences of the parties.
1. Identification of Parties: The Articles of Agreement should clearly identify the parties
involved in the agreement. This includes the full legal names of the parties, their
addresses, and any other relevant contact information.
2. Description of the Agreement: This section provides a brief overview or summary of
the purpose and scope of the agreement. It outlines the nature of the relationship between
the parties and the objectives they seek to achieve through the agreement.
3. Terms and Conditions: The bulk of the Articles of Agreement consist of the specific
terms and conditions agreed upon by the parties. This may include:
  Responsibilities and obligations of each party
 Duration or term of the agreement
 Payment terms, including pricing, invoicing, and payment schedules
 Delivery schedules or milestones (if applicable)
 Performance standards or quality requirements
 Termination clauses outlining the circumstances under which the agreement can
be terminated and the process for doing so
4. Confidentiality and Non-Disclosure: If the agreement involves the exchange of
sensitive or proprietary information, it may include clauses related to confidentiality and
non-disclosure. These clauses specify the obligations of the parties to protect confidential
information and may outline exceptions or limitations to confidentiality.

7. What are the advantages of a turn key contract?

turnkey contract is a type of agreement where the contractor is responsible for the design,
construction, and commissioning of a project, and upon completion, the client receives a ready-
to-use facility or asset. Here are some advantages of using a turnkey contract:
1. Single Point of Responsibility: With a turnkey contract, the client deals with only one
party—the turnkey contractor. This simplifies communication and coordination as the
client does not have to manage multiple subcontractors or vendors for different aspects of
the project.
2. Time and Cost Efficiency: Turnkey contracts often come with fixed prices and
timelines, providing clients with predictability and certainty regarding project costs and
completion dates. Since the turnkey contractor assumes responsibility for project
delivery, they are incentivized to complete the project on time and within budget.
3. Reduced Risk for the Client: By transferring the responsibility for design, construction,
and commissioning to the turnkey contractor, the client mitigates the risks associated
with project management, construction delays, and cost overruns. The turnkey contractor
is responsible for addressing any issues that may arise during the project's execution.
4. Expertise and Experience: Turnkey contractors typically have specialized knowledge,
expertise, and experience in delivering similar projects. They leverage their skills and
resources to ensure the successful completion of the project, potentially delivering higher
quality results than the client could achieve on their own.
5. Streamlined Process: Since the turnkey contractor manages all aspects of the project
from start to finish, clients can focus on their core business activities without getting
involved in the day-to-day details of project management. This allows for a more
streamlined and efficient process.
6. Single Contractual Relationship: With a turnkey contract, the client enters into a single
contract with the turnkey contractor, simplifying the contractual relationship and
reducing administrative burden. This eliminates the need for multiple contracts with
various subcontractors and suppliers.

8. Explain the conditions for inviting turn-key offer and the

process involved in finalization of the bidder
Inviting turnkey offers involves certain conditions and a specific process to ensure that the
project is successfully executed and meets the requirements of the client. Below are the typical
conditions for inviting turnkey offers and the process involved in finalizing the bidder:

Conditions for Inviting Turnkey Offers:

1. Clear Project Scope: The client must have a well-defined project scope, including
objectives, requirements, and deliverables. This ensures that potential bidders understand
the scope of work and can prepare accurate proposals.
2. Feasibility Study: Conducting a feasibility study to assess the technical, financial, and
operational feasibility of the project. This helps in determining the viability of the project
and identifying any potential challenges or risks.
3. Budget Allocation: Allocating a budget for the project, including costs for design,
construction, commissioning, and other associated expenses. The budget should be
realistic and sufficient to meet the project requirements.
4. Legal and Regulatory Compliance: Ensuring compliance with relevant laws,
regulations, and standards governing the project. This includes obtaining necessary
permits, approvals, and licenses before inviting turnkey offers.
5. Evaluation Criteria: Establishing clear evaluation criteria for assessing turnkey offers.
This may include factors such as technical capability, experience, financial stability,
proposed schedule, pricing, and compliance with project requirements.

Process Involved in Finalizing the Bidder:

1. Prequalification of Bidders: Issuing a prequalification notice or request for expressions

of interest to solicit interest from potential bidders. Bidders are typically required to
submit information about their qualifications, experience, capabilities, and financial
standing.
2. Invitation to Tender: Based on the prequalification process, eligible bidders are invited
to submit formal turnkey offers. The invitation to tender includes detailed project
specifications, requirements, evaluation criteria, and submission deadlines.
3. Submission of Turnkey Offers: Bidders prepare and submit their turnkey offers in
accordance with the requirements outlined in the invitation to tender. This includes
technical proposals, commercial proposals, schedules, and any other relevant documents.
4. Evaluation of Turnkey Offers: An evaluation committee reviews and evaluates the
submitted turnkey offers based on the established criteria. This may involve technical
assessments, financial analysis, and comparison of proposed solutions.
5. Negotiation (if applicable): Depending on the complexity of the project and the specific
requirements, the client may enter into negotiations with one or more bidders to clarify
terms, resolve issues, and finalize the offer.
 9. Explain the BOLT form of project financing with a suitable
case study?
BOLT financing, which stands for Build, Own, Lease, Transfer, is a project financing structure
commonly used in infrastructure projects. In BOLT financing, a private entity (often a Special
Purpose Vehicle or SPV) is responsible for designing, building, financing, and operating the
infrastructure asset over a specified concession period. Once the concession period expires,
ownership of the asset is typically transferred to the public sector or another entity.

Case Study: Revitalization of Greenfield Park

Greenfield Park is a large public park located in an urban area that has seen a decline in visitor
numbers and maintenance over the years. The local government decides to undertake a
comprehensive revitalization project to enhance the park's attractiveness, functionality, and
sustainability.

1. Build:
 A private consortium, consisting of landscape architects, construction firms, and
financing entities, is selected through a competitive bidding process to design and
implement the park revitalization project.
 The consortium develops a detailed plan for the park, which includes new
walking paths, seating areas, playgrounds, sports facilities, landscaping, and
sustainable features such as rain gardens and solar-powered lighting.
 Construction begins in Greenfield Park, with the private consortium overseeing
the implementation of the project according to the agreed-upon design and
schedule.
2. Own:
 Upon completion of the park revitalization, ownership of the upgraded park
infrastructure is transferred to the private consortium, which establishes a Special
Purpose Vehicle (SPV) to manage and maintain the park assets.
 The SPV assumes responsibility for ongoing maintenance, repairs, security, and
operational management of Greenfield Park, ensuring that the park remains in
excellent condition throughout the concession period.
3. Lease:
 The SPV leases the revitalized park to the local government or a designated park
authority under a long-term lease agreement.
 The lease agreement outlines the terms and conditions for the use of Greenfield
Park, including lease payments to the SPV to cover financing costs, maintenance
expenses, and a return on investment for the private consortium.
4. Transfer:
 At the end of the concession period, ownership of the park assets is transferred
back to the local government or another designated entity, as stipulated in the
lease agreement.
 The transfer may be subject to certain conditions, such as meeting performance
standards or fulfilling maintenance obligations, to ensure the continued quality
and sustainability of Greenfield Park.