1 contractor pre-qualification. 2 what is contractors pq? screening construction contractors...
TRANSCRIPT
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Contractor Pre-qualification
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What Is Contractors PQ?
Screening construction contractors according to a pre determined set of criteria in order to determine their competence or ability to participate in the project bid.
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Awarding Authorities Should Verify That the Bidder Has: Adequate financial resources,
experience, personnel resources, and equipment to perform the task.
The ability to comply with the required performance and time schedule.
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Benefits of PQ Avoiding overburdened of the
contractor. Elimination limited financial sources
contractors. Only the qualify will stay. Protecting the contactor. Speeding devaluation & awarding
process. Moving from subjectivity to
objectivity.
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Tenders PQEmployer/ Engineer Contractor
Acknowledge Receipt
Analyze PQ data: Company/ Joint venture structure Experience & Resources. Financial & General stability
Select Company/ Joint venture for inclusion in list of Tenderers.
Notify all Contractors/ Joint venture of the list of selected Tenderers.
Invitation to Contractors to Pre-qualify.
Issue and Submission of PQ Documents.
Respond to Questionnaires on Company/ Joint venture
Acknowledge Receipt
Confirm Intention to Submit Valid Tender
Analysis of PQ Data selection & Notification of List of selection
Place PQ Advertisement In Press, Etc. As Appropriate Stating: Employer & Engineer Outline Of Project (Scope, Location, Etc.) Enquiry Issue & Tender Submission Date. Instruction For Applying PQ. Submission Date For Contractor. PQ Data.
Request PQ Documents
Issue PQ instruction & Questionnaire requesting from each company/ Joint venture: Organization and Structure. Experience in Same Type of work. Resources (Managerial, Technical,
labor, etc). Financial Statement
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Contractor Data Sources:
1. Internal: Reports,documents, ..Etc.
2. External: Questionnaire filled by the contractor. Additional sources (banks, suppliers,..Etc). Site visits to currently projects done by the
contractor.
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Typical Questionnaire Includes:
Introduction: a brief description of the project.
Organization: classification and company’s organizational chart.
Financial resources: financial capability of the contractor.
Physical resources: contractor manpower, equipment, …etc.
Experience: contractor experience on similar projects.
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Gather Contractor Data (PQ Questionnaire)
Check Sufficiency & Correctness of Data
Available Data not Sufficient to make a Decision
Available Data Sufficient to make a Decision
Gather More Data
Apply Contractor Data to criteria (Systematic Model)
Decision
Qualify Contractor Reject Contractor
Contractor Informed to Collect Bidding Documents
Inform Rejected Contractors
Contractor Submits a Proposal
Development of Criteria (Questionnaire)
Contractor PQ Process
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PQ Elements 1)LITTER TO CONTRACTORS (invitation) 2)PRE-QUALIFICATION FORM:
A) Information for the contractor: i)Objective and scope of workii)General information
1)Degree of eligibility2)Formation of partnership or joint venture3)Bonding capacity4)Official language5)Supply materials
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PQ Elements Cont..6)Questionnaire submission
7)Beginning and duration of construction
B) PQ questionnaire:
i)Identification of the contractor
ii)Contractor performance
iii)Contractor’s equipment
iv)Construction ability
v)Completion ability
vi)Client relationship
C)Certification and waves
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Contractor Rating Strategies:
A) dimensional weighting strategy:
Contractor SelectionCriteria
WEIGHT
(%) X
Contractor
A B CY X*Y Y X*Y Y X*
Y
Experience in Completion of Project on Schedule.
60 9 5.4
8 4.8 4 2.4
Present Workload & Capability to Support Project
25 6 1.5
7 1.75
7 1.75
Availability of first-Line Supervisors
15 3 0.45
5 0.75
6 0.9
Total Score 100
6.45 7.3 5.05
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Contractor Rating Strategies Cont.. B)two-step pre-qualification: Allow to eliminate unwanted
contractors. Contractor to satisfy selected
screening dimensions. If passes, use DWS with more
specific criteria.
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Project: -------------------- Determining For Weights Evaluation
CRITERIA RAW SCORE
ASSIGNED SCORE
A Experience 6 10 B Equipment 2 3.3 C Financial Resources 1 1.7 D Reputation 2 3.3
B C D A A-2 A-3 A/ D B B/ C B-1 C D-1 D
3- Major Preference. 2- Medium Preference. 1- Minor Preference. 0- No Preference.
Paired Comparison Criteria Weighting:
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Contractor Name: ---------------------- Grade: --------- Address: ---------------------------------
CRITERIA
Wei
ght
5 E
xce
4
V. G
3 G
ood
2 Fa
ir
1 Poo
r
A Experience 10 x 40 B Equipment 3.3 x 16.5 C Financial Resources 1.7 x 5.3 D Reputation 3.3 x 6.6
TOTAL SCORE 68.4
Evaluation Matrix:
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Model Philosophy:
Uses DWS based on multiple-criterion decision-making.
Approach assumptions: Impact for each criterion ( 1unsatisfactory to
10 excellent). Obtain numerical value from PQ
questionnaires. Addition or deletion of decision parameters
have no dependency of model’s parameters.
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CDF (Experience)
DF (Size of Completed Projects)
DF (Type of Completed Projects)
Example of Decision Parameters
Model Philosophy Cont..
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Model Calculation: a. Calculate the mean impact for each DF included in each CDF. b. Calculate the DF weight to each DF from equation: Where: wij = the weight of the DFj associated with the CDFi . DFMIij = the mean impact of the DFj associated with CDFi, zero (no impact) to four (very high impact).
)1.(
1
EqmDFMI
DFMIwij
i
jij
ij
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c . C a lc u la t e t h e m e a n im p a c t f o r t h e C D F f r o m e q u a t io n :
)2.(1 Eqm i
m iDFMI ij
CDFMI ij
W h e r e : C D F M I i= m e a n v a lu e o f C D F .
m i = t h e n u m b e r o f D F s in t h e C D F .
d . C a lc u la t e t h e w e ig h t o f t h e C D F u s in g t h e e q u a t io n :
)3.(
1
Eqn
iCDFMI i
CDFMI iw i
Model Calculation Cont..
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c . F in d t h e a g g r e g a t e s c o r e o f t h e c a n d id a t e c o n t r a c t o r K
u s in g t h e f o l l o w in g e q u a t io n :
)4.(11
Eqm i
jR ijKw ij
n
iw iAWS K
W h e r e : A W S K : a g g r e g a t e w e ig h t e d r a t in g f o r t h e c o n t r a c t o r K .
n = n u m b e r o f C D F s ; m = n u m b e r o f D F s in t h e C D F .
R i j K : s c o r e o f t h e D F j i n t h e C D F i f o r t h e c o n t r a c t o r K o n s c a le o f 1 ( u n s a t i s f a c t o r y ) t o 1 0 ( e x c e l l e n t f o r s p e c i fi c p r o j e c t ) .
Model Calculation Cont..
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Example:Contactor A:
CDF(1) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK1Banking Arrangement 2 0.222 3 0.667Bonding Capacity 4 0.444 4 1.778Financial Statement 3 0.333 8 2.667
CDF(2) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK2Success of Completing Projects 3 0.375 4 1.500Size of Completing Projects 2 0.250 3 0.750No of Similar Comletdd Projects 2 0.250 6 1.500Types of Completing Projects 1 0.125 5 0.625
CDF(3) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK3Current Work load Current Work load 3 1 3 0.375 7 7 2.625
AWSK (A)Total = AWSK1+AWSK2+AWSK3 = 5.635
1.9167
5.111
Financial Stability
9
3 0.375
Experience 2 0.25 1.0938
73
8 4.375
m i
jR i j Kw i j
1
m i
jD F M I i j
1
m i
jD F M I i j
1
m i
jD F M I i j
1
m i
jR i j Kw i j
1
m i
jR i j Kw i j
1
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Example Cont..Contactor B:
CDF(1) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK1Banking Arrangement 2 0.222 5 1.111Bonding Capacity 4 0.444 3 1.333Financial Statement 3 0.333 7 2.333
CDF(2) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK2Success of Completing Projects 3 0.375 3 1.125Size of Completing Projects 2 0.250 5 1.250No of Similar Comletdd Projects 2 0.250 4 1.000Types of Completing Projects 1 0.125 8 1.000
CDF(3) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK3Current Work load Current Work load 3 1 3 0.375 6 6 2.25
AWSK (B)Total = AWSK1+AWSK2+AWSK3 = 5.135
63
8 4.375
Experience 2 0.25 1.0938
1.7917
4.778
Financial Stability
9
3 0.375
m i
jR i j Kw i j
1
m i
jD F M I i j
1
m i
jD F M I i j
1
m i
jD F M I i j
1
m i
jR i j Kw i j
1
m i
jR i j Kw i j
1
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Example Cont..Contactor C:
CDF(1) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK1Banking Arrangement 2 0.222 4 0.889Bonding Capacity 4 0.444 8 3.556Financial Statement 3 0.333 6 2.000
CDF(2) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK2Success of Completing Projects 3 0.375 4 1.500Size of Completing Projects 2 0.250 6 1.500No of Similar Comletdd Projects 2 0.250 3 0.750Types of Completing Projects 1 0.125 7 0.875
CDF(3) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK3Current Work load Current Work load 3 1 3 0.375 8 8 3
AWSK (C)Total = AWSK1+AWSK2+AWSK3 = 6.573
83
8 4.625
Experience 2 0.25 1.1563
2.4167
6.444
Financial Stability
9
3 0.375
m i
jR i j Kw i j
1
m i
jD F M I i j
1
m i
jD F M I i j
1
m i
jD F M I i j
1
m i
jR i j Kw i j
1
m i
jR i j Kw i j
1
Result: Contractor A has the highest score followed by Contractor C then contractor B.
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Model Advantages:
Simple and understandable. Provides a systematic approach for
all candidate evaluation. The calculated aggregate weighted
score for each contractor provides a basis for comparison.