PROCUREMENT PROCESS AND

TENDERS PROCEDURE
 POINTS TO DISCUSS
• Procurement Management
• Power of bid analysis
• Selection of suppliers
• Outsourced functions
• Suppliers’ management
• Maintaining standard without
compromising standard/quality
 Introduction:
Contract process and Tenders
Procedure can be regarded as policy if
signed and put into use. It serves as
indispensable tool to managers to
operate efficiently when it comes to
selection of contractor.
It helps managers to negotiate best
prices for their organisation in a view
to reducing cost without compromising
quality and standard
• WORKSHOP OBJECTIVE:
The objective of the workshop is to
widen the knowledge of the
participants- key officers of the
organisation-Facility Manager, Estate
Manager, Maintenance Manager or
Engineer to effectively and efficiently
award and supervise contracts,
reduce cost and wastes and get value
for the money spent by their
organisations
BASIC DUE PROCESS FOR SENDING BIDS TO
CONTRACTORS:-
• Bid committee to fix commencement & closing
dates
• All envelopes must be sealed
• The bid box key should be in the custody of
chairman of the bid committee or Chief security
officer
• The box must be opened in the presence of all
members of bid committee
• Quantity surveyor’s report giving specifications
of the proposed contract must be available to
ensure contractors are quoting for same job
 Contract process/procedure

It gives details of awarding contract in

accordance with laid down policy
which aim at cost reduction and get
value for the money spent.
Maintain international quality standard
and meeting all requirements.
 CONTRACTOR MANAGEMENT
GUIDELINEES
The following serve as checklist to guide contract
award process and procedures:
 Outline contract specification
 Assess contractors competence
 Select contractor without sentiment
 Prepare terms and conditions
 Place the contract
 Monitor contractor’s performance
 Evaluate contractor’s performance
Outline contract specification
• Give details of the contract-specifications
• relevant costing method
• Cost per system i.e m3 for concreting
• Bid estimate
• Lump sum
• Per square meter
• N0 of beds in the hospital
• Thickness of material and make
Assess contractors’ competence
• Assessment from professional point of
view- relevant qualifications
• Electrical contract must not be awarded to
a civil contractor
• Trace record through company profile
• Trace record from previous experience-
jobs successfully executed
• Quality & safety awareness/compliance
USE OF BID ANALYSIS AS TOOL
TO SELECTING BEST BIDDER
CONTRACTOR. QUOTE NEGOTIATED REMKS

1 ABC LTD N2.3M N2.1M good but not civil

2 KAYA VENT N2.9M N2.7 good
3 YAKOYO N1.6M N1.3M no prev.record
4 XYZ LTD N2.5M N2.4 good.

From the above, N0-3 seems to be the least but has no previous
record therefore in best practices N0 4 is the most competent and
likely to win the contract.
 Selection of contractor
• Refer to slide 8 above coupled with
professional/technical knowledge the
selection will be done effectively
• Do not compromise quality
• Do not compromise safety
• There should be no sentiment
• Comply strictly with the laid down
procedure and policy
 Prepare terms & conditions
• All the contractor must visit site and
acquaint with scope before quoting
• Specific period of work assured
• Condition of payment/progress payment or
full/final payment
• Safety statement must be adhered to
• Site clearing a must
• Retention fee deducted (optional)
• Job completion certificate be signed
 Place the contract
• At this stage, the lowest bidder is not
always the winner
• The previous record may be used to
measure/determine contractor’s
performance/competence
• Place the order stating all the conditions
required in accordance with the company’s
procedure/policy
 Monitor the contractor’s
performance
• Effective supervision by the use of work
order and checklist
• Make use of safety statement to prevent
safety of life and property
• Ensure necessary permits are issued and
adhered to
• Do not compromise quality
 Evaluate contractor
 Use checklist to evaluate quantity/scope of
work
 Also the quality of work performed
 The quality of work and safety compliance
 Through this progress payment may be
approved if stated in the work order
(condition of contract)
 CONCLUSION
In conclusion, the participant of
this workshop will be exposed to
the best practices used in
procurement of any material or
equipment in global world.
supervise contract/projects
efficiently without compromising
quality and standard.
 CONCLUSION
Also prevent accident, safe life and
property for the organization
the company will get value for
the money spent by reducing
unnecessary wastes
 QUESTIONS
DISCUSSIONS
CONTRIBUSIONS

THANK YOU
GOD BLESS.