BID OR NO BID ANALYSIS

PRESENTED BY
(GROUP 4)
 CLIENT
The Maharashtra State Road Development
Corporation Limited,Mumbai.
TENDER NOTICE NO: MSRDC/PRR/JOB NO- 01/2015-16
 PROJECT :
Construction of pune ring road.

 LOCATION:
Road connecting Theur pata-Chimbli (40 km) i.e,Theur Phata (On NH 9)-Chimbli (On
NH 50)
Why to do bid/no bid analysis?

Two major decisions are required in any systematic bidding.

 To decide whether the contractor should bid for a particular

project.

 If the contractor decides to bid,then to calculate the optimal bid

price so that contractor can increase his chances of getting
business
 RATING
CONDITIONS
OF THE
CONTRACT

HOW TO
OPPORTUNITY
DO BID/NO RISK
MATRIX BID MATRIX

ANALYSIS?

BID/NO
BID
MATRIX
0PP0RTUNITY MATRIX
 Opportunity matrix helps the department to evaluate the
opportunity based on the weighted score.

 Weighted score is calculated by giving rating to qualitative

parameters i.e,1 (favourable opportunity) to 4 (worst possible
opportunity).

 Based on the ratings the weighted score represents

28 to 45 Favorable
46 to 79 Considerable
80 to 112 Unfavorable
Sr. Element Ranking Score Weighted
no score
1 2 3 4

1 Corporate Direction 6 Fully aligned Partially Neutral Counter to 6

aligned direction
2 Competitive 5 Company rules Company is Compititor is Compititor 10
environment market more more favored rules market
favored
3 Revenue value 1 Very High More Less Very Less 1
4 Potential profitability 2 Very High More Less Very Less 2
5 In house content 7 >90% 75-90% 50-75% <50% 14
6 Future business 4 Assured Likely Possible Little 12
7 Collateral benefits 3 High More Reasonable Little 9
∑WEIGHTED SCORE 54
 SCORE ANALYSIS
From the analysis the opportunity matrix is coming to be “54”.
This shows that the score is “CONSIDERABLE”.
Rating the Conditions of contract

“Rating the conditions of contract provides guidelines to analyze the

conditions of contract and protect the interest of the party to the
[Link] analysis will help the contractor to decide whether to pursue
the project or decline.”
 Completely
Condition of contract one sided Slightly risk More risk
Well
towards the towards the
Balanced
contractor client side


The intending tenders / contractors should apply in writing for issue of tender documents. The application
would invariably be signed by the contractor himself / herself. The tender document will not be issued to any
person other than the INTENDING TENDERER. The application shall be submitted for the work listed
above with all required documents as indicated under. The applicants should enclose attested copies of the
following along with the application: · Latest Value Added Tax Clearance Certificate. · Latest Income Tax
Clearance Certificate as per the Indian Income Tax Act. · Validated/Updated Contractor Enlistment
Certificate and Professional Tax Clearance Certificate. · Original validated / updated enlistment certificate.


The prescribed Non-Transferable Tender Documents (excluding the Tender Form) can be obtained during
the period specified as above from the office of the consultant, on production of requisite Bank Receipt of
the Nationalize bank towards the cost of Tender Document (non-refundable) in favour of the client.


The Tender Documents including the Tender Form with quoted offer should be placed in a sealed cover with
the name of the Tenderers and the name of the work subscripted on it.


Sealed tenders may be deposited in the Tender Box in the Conference Hall of Buildings & Housing
Department of consultant on the date and within the time indicated above.


Tenders will be opened by a Tender Opening Committee constituted as prescribed by the Government in
presence of the tenderers , who wish to be present on the date and time indicated above.


The Tenderer should sign on every page of the Tender Documents as acceptance of the general direction and
conditions of contract and other laid down norms. The rate quoted should be both in figures and words and
should be inclusive of Value Added Tax and all other Taxes and Levies. Over writing and correction should
be avoided and if made should be authenticated. In the incidence of discrepancy in figures, the rates given in
words shall prevail. Incomplete/conditional tenders shall be rejected forthwith.
 Completely Slightly risk More risk
Well
Condition of contract one sided towards the towards the
Balanced
contractor client side


In case of any discrepancy in rate(s) printed in the Schedule of Rates and Quantities issued with the Tender
Document, rates as per approved Schedule of Rates will be taken as correct. For items outside the S.O.R , the
rates shall be as per the technically checked estimate/ analysis. Decision of the Head of the Client will be
final in this regard.


The Work value, scope and quantum of work are subject to change. The contractor shall execute the work as
per the directives of the client. No claim on this account shall be entertained whatsoever. If any extra claim is
made, it shall be as per the agreement rates.


The contractor shall establish a field laboratory at the construction site. It shall be mandatory to test material
by the contractor at site or any other laboratory fixed by the consultant for Quality Control purpose. The
Client reserves the rights to with hold payments to the contractor unless test certificates are produced by the
contractor when called upon to do so.


The contractor shall engage a Graduate / Diploma Civil Engineer (s) at the project site during the execution of
work as per the norms prescribed in the Enlistment Rules and grade of contractors as well as requirement at
site determined by the engineer in charge.


Avoidable damages due to negligence of the contractor shall be at his own risk and cost. The Client shall not
be liable for payment of such damages (if any), including accidents to laborer at site.


In case of approval, contractor shall be required to execute the works in test patches to ensure quality of
materials and for determination of correct methodology. The test patches shall be got approved by the
engineer in charge.


The tender offer shall remain valid for a period of 90 days. The work should commence within 15 days from
the date of issue of Work order.


All the conditions as mentioned in the N.I.T shall be deemed to be a part of the agreement to be entered with
the contractor. Security deposit shall be collected by deductions from the running bills of the contractor @ 5%
of the value of work done.
 Completely Slightly risk More risk
Well
Condition of contract one sided towards the towards the
Balanced
contractor client side


The contractor shall ensure the safety of vegetation in the project area and beyond. He shall also plant
additional flora as directed by the engineer in charge at his own cost, in due fulfillment of the stipulation
under the State Green Mission. Security deposit for the work shall be refunded only after verification of the
survival of such plants in addition to the other norms laid down for the release of security deposit.


The Client reserves the right to accept/reject any or all tenders without assigning any reason there


The contractors are required to register themselves under Rule 39 or 40 ( as the case may be) of the
Maharashtra Value Added Tax Rules 2005 with the Income and Commercial Tax Division of Finance ,
Revenue and Expenditure Client . The contractors should obtain the TIN Number before the settlement of bill
or they must be registered Companies/Firms registered under the Companies Act-1956. The contractors
should also have valid PAN card and TAN. The contractors are also required to submit PAN number as per the
provision of Indian Income Tax Act, wherever applicable.


The recoveries of Income Tax , Value Added Tax and royalties on forest produces shall be as per rates notified
by the Government from time to time and applicable on the date of payment. In no case, claim of any
contractor for deduction as per rates incorporated in the Analysis of Rates or Schedule of Rates or Rates on
the date of tender shall be acceptable.


In case of carriage of Non-stock materials, if these are available at site or are actually transported from a
lesser distance than indicated in the schedules, the client shall pay the carriage as per the proof of carriage
supported by permits issued by client, indicating the quarries which are required to be submitted by the
contractor with bill and not exceeding the rates incorporated in these schedules. The contractors are required
to submit necessary documents to fulfill the claim of payment for carriage of Non-Stock materials.


Mobilization advance shall be given as per paragraph 24.6 of the Maharashtra Public Work Client Manual and
General conditions of Contract subject to availability of resources.


Subletting of contract work is against the norms and if it comes to the notice , the original contract shall be
cancelled and appropriate action shall be initiated as per the rules.
 Completely Slightly risk More risk
Well
Condition of contract one sided towards the towards the
Balanced
contractor client side


In case the man power employed by the contractor is from outside the state or neighbouring countries, it shall be
the responsibility of the contractor to get them registered with the Labour Department, Government of India, as
per the relevant labour laws.


The client also reserves the right to increase, decrease, alter or modify the items of work as indicated in the
N.I.T within assigning any reason thereof.


Use of explosives shall be regulated as under:- • Transportation, handling, storage and use of explosive (if any)
shall be in accordance with the provision of India Explosive Act and General Guideline, Circulars issued by the
government department and other competent authorities on the subject from time to time. • The rules and
regulations issued by the Public Works Client or any other competent authority shall strictly be adhered to with
regard to transportation, storages, handling and use of explosives at all times. Proper daily record of receipt and
issue of explosives shall be maintained by the contractor.


The contractor shall also make arrangements to have photographs of the works taken at least three stages of the
construction period i.e beginning, middle and completion stage and the same should be submitted to the
engineer-in-charge.


Damages to properties in and around the work site must be avoided at all cost. The contractor shall be held
responsible for any acts of negligence and shall be made to make good the damages occurred.


Expenditure involved for material testing at site or in laboratories shall be borne by the contractor.


It is expected of the tenderer to have inspected the site before submitting his bid and have their own correct
assessment of the site before submitting the bid.


The contractor will have to pay all taxes and duties applicable and notified by the State/ Central Government
and no claim shall be entertained in this regard whatsoever.


The cost of stock materials supplied from the client will be deducted from the contractor’s bills as per the rates
in the agreement.
 Completely Slightly risk More risk
Well
General Conditions one sided towards the towards the
Balanced
contractor client side


Cheques, Bonds, guarantee bonds and Govt Securities (Stock Certificates, bearer bonds, promissory
notes, and cash certificates) will not be accepted towards the earnest money. No interest will be paid
on EMD.


Tender without prescribed earnest money shall be rejected.


Earnest money shall be refunded to the unsuccessful bidders after the finalisation of the tender.


SECURITY DEPOSIT (SD): 10% of total contract price as prorate to be deducted from every
progressive bill towards security deposit. The security deposit will be returned on demand after 12
months from completion of the job in all respect and successful handover of the said work and
production of clearance certificate and submission of no claim certificate. The earnest money of
successful bidders shall be converted into security deposit and the security deposit shall not bear any
interest.


SUBMISSION OF TENDER: The Tender shall be submitted in parts i.e Part-I i.e Techno-
Commercial Bid and Part-II i.e Price Bid in separate covers super scribing for which the tender is
submitted, name and address of the tenderer. Both the above covers shall be put in another covers
super scribing the job for which the tender is submitted along with address of the tenderer.


OPENING OF TENDER: The Technical bid part-I shall be opened on 10/11/2015 at 3.30 P.M in
the office of the Business Head , The Maharashtra State Road Develoment Corporation Limited,
At/P.O- Mumbai, in the presence of the tenderers or their accredited representatives. The date of
opening of financial bid shall be intimated to the tenderer whose technocommercial bids found
acceptable.
 Completely Slightly risk More risk
Well
General Conditions one sided towards the towards the
Balanced
contractor client side


PENALTY, WAIVAL & TERMINATION: If the tenderer has not commenced the work from the date as
mentioned in the agreement/work order the EMD/security deposit deposited for the work shall be forfeited. If
the work is commenced but not completed then penalty shall be imposed @ Rs 1,000 per day of delay. If the
delay is found to be for reasons which are beyond the control of the tenderer the penalty can be waived by the
competent authority of MSRDC on receipt of request from tenderer and recommendation of mines office. The
competent authority if convinced can extend the period of contract for such period as found reasonable and
thereafter may terminate the contract. In case of termination of the contract EMD/security deposit shall be
forfeited. However, the payment of the bill for the work already completed shall be made to the tenderer by
MSRDC after due examination and recommendation of Business Head.


Expectation from the tenderer: Tenderers, along with tender, shall submit the following documents duly
attested by a Gazetted Officer/Notary Public. Details and documents regarding financial status of the firm like
latest Profit and Loss account, Balance Sheet, Auditor’s Report etc. for last three completed years along with
Banker’s Certificate regarding financial stability to undertake the tendered work. Banker’s Certificate should
be specific and clearly outlining the limits of overdrafts. Bank Guarantees etc. being enjoyed by the
Tenderers.


The company reserves the right to accept or reject any or all tenders or distributes the work amongst different
tenderers without assigning any reason thereof.


Award of contract shall be made at the absolute discretion of MSRDC. The company reserves the right to
reject any part or whole of the tender without assigning any reason whatsoever. For such cancellation the
tenderer shall not be entitled to claim any cost, charges, expenses incidental to or incurred by him through or
in connection with the preparation and submission without assigning any reason whatsoever.


MSRDC also reserves the right not to accept the lowest offer and to divide the work to more than one
party/parties.


MSRDC shall not be liable for any delay in receipt of the tender document by the Tenderers due to postal
delay and no extension of time to the date of tender opening shall be given for this reason.
 Completely
General Conditions one sided Slightly risk More risk
Well
towards the towards the
Balanced
contractor client side


The successful bidder is expected to appear in the office of Business Head to sign the contract agreement
within 5 days and start the work within 10 days from the date of issuance of LOI. In case the tenderer is
decline to sign the agreement or to take up the work within stipulated time, in such eventuality will have any
such claim.


In case the tenderer declines to take up the work, MSRDC reserves the right to terminate the contract and
forfeit the earnest money/security deposit of the contractors in such eventually, the tenderer have no claim for
the cost he/they might have incurred for taking the work and the cost of the work he/they have done by that
time and the work may be rescinded.


Obligation of contractor:The contractor shall be solely responsible for deductions and maintenance of
record regarding Provident Fund, Pension Scheme, Deposit Link Insurance Fund in respect of
contractors/employees employed by him in connection with the work mentioned in the description of work of
this contract documents as required under Employees Provident Fund and Miscellaneous Provisions Act,
1952 and Rules and Regulations made there under. The contributions to Provident Fund at the prescribed rate
alongwith other contributions and charges have to be duly made as provided for in the said Act. The said
contributions (both employer’s and employees) along with other charges shall be deposited within the
prescribed time to the Regional Provident Fund Commissioner. In case the contractor fails to comply with the
above, the company reserves the right to arrange for the same and the entire amount shall be recovered from
the bills/security deposit of the contractor(s) or otherwise.


The contractor shall get their establishment registered with the appropriate Regional Provident Fund
Commissioner and produce a valid document to Mines Office within one month from the date of award of
this work. In the event of their failure to comply with the above, necessary deductions will be made from their
running bills to cover the liabilities under the Provident Fund and Miscellaneous Provisions act,1952.
 Completely Slightly risk More risk
Well
General Conditions one sided towards the towards the
Balanced
contractor client side


The work order is to be accepted by the tenderer within 3 days of communication of the same.


The tenderer will commence and complete the work as stipulated in the tender document.


The tenderer is to ask for necessary documents/records from MSRDC within 5(five) days of acceptance of
the work order for carrying out the work.


The agency shall have to make his own arrangements for travelling, boarding, lodging etc to the site.


All the corrections/ compliances on deficiency pointed out by the MSRDC during the preparation of the
project should be duly complied by the contractor within the stipulated time.


The liaison required for the purpose should be exclusively done by the contractor/agency.


All other Expenditure incidental to such processing to be born by the agency including statutory
payments.


The job cannot be sublet in part or in whole without the written consent of the Business Head of MSRDC,
Mumbai.


Tenderer will comply the direction of Business Head/Manager (Project) or his authorised representative
from time to time.


All security arrangement for the materials to be utilised in the project shall be done by the contractor up to
commissioning and handing over the Road.


Contractor has to submit the work programme and test reports of different items during the construction.
 Completely Slightly risk More risk
Well
General Conditions one sided towards the towards the
Balanced
contractor client side


SPECIAL CONDITIONS: The Tenderer shall get fully informed/apprised himself of all local
conditions and factors which may have any effect on execution of work covered under the tender
document and specification, MSRDC shall not entertain any request for clarification from the
tenderer regarding such local conditions after award of the contract. It must be understood and
agreed that such factors have been properly investigated and considered while submitting the tender.
No claim for financial adjustment to the contract or may be entertained by MSRDC on this account.
Neither any change in the time schedule of the contract nor any financial adjustment shall be
permitted by MSRDC which are based on the lack of clear information.


PERIOD OF CONTRACT: For six Months from the date of awarding the job. No extension of time
period shall be entertained without sufficient justification to the satisfaction of the management
(MSRDC) that the delay is beyond the control of the contractor/agency.


The quantities set out in the Scheduled of items are the estimated quantities of the works but they are
not to be taken as the actual & correct quantities of the works to be executed by the contractors in
fulfilment of his obligation under the contract.


The Engineer shall expect as otherwise stated ascertain & determine by measurement the value of
work done in accordance with the contract. He shall when he required any part or parts of the works
to be measured give notice to the contractor who shall forthwith attend or send a qualified agent to
assist the Engineer or the Engineer’s representative in seeking such measurement & shall furnish all
particulars required by either of them. Should the contractor not attend or neglect or omit to send
such agent then the measurement made by the Engineer or approved by him shall be taken to be
correct measurement of the works.
 General Conditions Completely
one sided
Slightly risk More risk
Well
towards the towards the
Balanced
contractor client side


The tenderer will submit 3(three) running bills in the tenure of contract as follows:
a) 1st running bill: After completion of item no-1, 2 & 3 of scope of work.
b) 2nd running bill after completion of item no-5& 4.
c) 3rd running & final bill after completion of item no-7, 8 , 9,6 & 10.
The bill will be submitted in the office of Manager (Project) in triplicate. The work done shall be verified
and certified by Manager (Project).The bill shall be approved by Business Head and sent to Sr. Manager
(F). Deductions as per terms of work order or statutory requirements shall be made. Payment shall be
made as per payment schedule within 30 days of submission of bills. Any variation in Royalty, imposition
of new taxes, levies, duties, etc after the date of awarding the work order shall be to the account of
MSRDC.


PAYMENT CONDITIONS: Running bills as per clause no-15 of Chapter- III depending on the progress
of the work will be submitted. Bills/bill will be verified by the Manager (Project) through the quality and
volume of the work executed and recorded in the measurement book/sheet. 90% of work done value will
be paid of each bill as running account bill. The final payment of “3rd and final bill” will be made on
completion of all the work and fulfilment of contractor liabilities.


TAX DEDUCTED AT SOURCES: Income Tax and other taxes including surcharge and cess as applicable
shall be deducted at source at the rate prescribed in the Income Tax act and/or other Act from the gross
value of each bill.


ESCALATION: No escalation in any from will be entertained during the tenure of the contract.
 Completely
General Conditions one sided Slightly risk More risk
Well
towards the towards the
Balanced
contractor client side


The rate quoted in the tender should be in word and figure and unit in words for price.


The contractor will supply all the materials, labours, tools and implements required for above
construction.


Income Tax & Sales Tax will be deducted as per respective Acts.


All legal liabilities/ statutory payments connected with the above work should be borne by the contractor.


All statutory requirements to be maintained by contractor as applicable for the working in the mines.


The contractor strictly in accordance with the specifications and work order should execute the work.


In case the material or work is not up to the specification, the management reserves the right to terminate
the contract or deduct the cost thereof.


The payment will be made after measurement of the work on its completion/part of completion by the
civil department of MSRDC.


The material to be supplied by the contractor shall be as per IS specification. All the Materials needed for
the work must be approved by the Engineer and brought to the site in bulk.


If any work either in temporary or permanent nature or necessary to complete the work in all respect but
not mentioned in the tender shall have to be done without extra cost.


The contractor will comply the provision of Mines Act 1952, payment of Wages Act, payment of Bonus
Act & Rule & regulations made there under.
 Completely
General Conditions one sided
Slightly risk More risk
Well
towards the towards the
Balanced
contractor client side


The contractor shall take licence under the contract labour (Regulation & Abolition) Act 1970, if
required under said Act.


The successful tenderer shall depute an authorized technical representative to supervise and guide the
construction work on day to day basis and report to Manager (Project).


EXIT CLAUSE: Both the parties have right to exit from this contract /agreement by serving notice in
writing of at least 15 days. However they will continue to be liable for such delay during the contract
period.


RISK PURCHASE: In the event of failure to fulfil the contract terms for execution of work as per letter
of intent/contract, the company reserves the right to make the contractual obligations carried out by
alternative arrangement and the company shall recover from the tenderer any additional cost involved
therein. The EMD of the agency shall be liable to be forfeited in case of failure to complete the job
within stipulated period or within such extended period approved by the management.


ARBITRATION: Any dispute of difference under or arising out of or in respect of the agreement/work
order shall be referred to the chairman-cum-Managing Director of the MSRDC Ltd., Nepean Sea Road,
Near Priyadarshani Park, Mumbai-400 [Link] his authorized representative as sole arbitrator and the
decision of the sole arbitrator on the matter in dispute shall be final and binding on the contractor and
the company.
 Completely
General Conditions one sided
Slightly risk More risk
Well
towards the towards the
Balanced
contractor client side


MODIFICATION CONTRACT: No modification and alteration of the contract/agreement is allowed
during the currency of the contract. However difficulties, if any, experienced while implementing /
execution of the contract, the same can be addressed with the approval of the CMD, MSRDC.


FORCE MAJEUR CLAUSE: Time being the most important feature of the contract if either party is
prevented from the performance of its obligations in whole or in part for reasons of force majeur viz acts
of God, acts of Government, acts of public enemy, war,hostility, civil commotion, sabotages,fire floods,
explosions, epidemics, lawful strikes, lockouts or statutory action or any cause of whatever nature or
description beyond the control then provide notice of happenings of any such eventuality is given by the
affected party to the other party within 15 days from the date ofoccurrence and cessation of the force
majeur the period of force majeur shall be excluded from the time specified for fulfilment of obligations of
the party prevented by force majeur. If any of the events specified in this clause lasts for a continuous
period of less than 7 days, such events shall not be construed to be force majeur events. Neither part can
claim any compensation from the other party because of force majeur events.


COUNTER OFFER: Any offer of the contractor which stipulates deviations from the terms & conditions
stipulated in Chapter-II(Terms and conditions) and ChapterIII(General conditions) of the tender will be
treated as counter offer and may be liable for rejection.
The Conditions of Contract in these tender
document are
CNTRACT CONDITIONS

 COMPLETELY ONE SIDED – 6.02 %

 SLIGHTELY RISK TOWARDS THE CONTRACTOR – 19.27
%
 WELL BALANCED – 74.69 %
 MORE RISK TOWARDS CLIENT – 0%

COMPLETELY ONE SIDED

SLIGHTLY RISK TOWARDS THE CONTRACTOR
WELL BALANCED
MORE RISK TOWARDS CLIENT
 RISK MATRIX

“Risk matrix is perspective of top

management towards a project which
covers broader aspects. this also needs to
be done in early stage on broad scale as
this will help in taking decision
accurately.”
 Score
Sr. No. Element Ranking Weighted Score
1 2 3 4

Questionable
Project feasible risk Project feasible but Less feasible and
1 Overall feasibility 5 feasibility and high 10
manageable risk need mitigation certain risks
risk

2 External obstacles 8 No obstacles Less obstacles Moderate obstacles High obstacles 24

3 Internal factors 7 Highly favorable Favorable Less favorable Unfavorable 14

Need to coordinate Need to coordinate

Need to coordinate up Need to coordinate
4 Resource co-ordination 4 upto 5 groups in up to 3 groups in 8
to 2-3 groups outside upto 5 groups outside.
company company

Fixed penalty with Fixed penalty with no

5 Penalty cost 1 No penalty Manageable penalty 2
upper limit upper limit.

6 Project life 2 < 12 months 12-24 months 24-42 months > 42 months 4

High experience and High experience but Less experience but Little experience and
7 Novelty 3 6
resource independent resource dependant resource independent high dependency

Active participation Acceptable

8 Client commitment 6 Low cooperation Non cooperative 12
and cooperation cooperation

∑ weighted score= 80
 RESULT
36 to 59 Favorable

60 to 99 Considerable “According to the analysis the risk

matrix weighted score is coming
100 to 144 Unfavorable to be 80 which comes under
considerable condition.”
 BID / NO BID DECISION  

A bid/no-bid decision process is a formal, rational process a contractor

should undertake in order to determine whether to submit a bid/proposal
or a no-bid letter in response to a invitation for bids ( IFB ) or a request
for proposal ( RFP ) sent by a soliciting organization.
 Alternatives
Sr. no. Criteria Ranking
YES NO

1 Project budget realistic 1   NO

2 Project timeframe realistic 3           NO
3 Resource for proposal/bid  6 YES  
4 Investment needed 2 YES  
5 Technical expertise 4 YES  
6 Management expertise 7 YES  
7 Differentiators from competitors 11 YES  
8 Information gathering vs real project 5 YES  
9 Political considerations 9   NO
10 Previous relationship 8 YES  
11 Project already funded  10           NO
 Result

 ∑ Yes Scores - ∑ No Scores  = ( 7-4 ) 

= 3 
As it is positive value than the organization should go for
BID 
 Bid Rating

“Bid rating is necessary to find practical cost for the project. This may be done
with bid rating matrix. This matrix is outcome of past experience of contractors
during bidding stage and execution stage of the project. Some parameters are not
foreseeable at bidding stage but they have substantial cost impact during
execution.”
 Rating
Parameter
1 2 3 4

Site Investigation data Data Poorly provided by client or The data is given by client with Separate items in BOQ for site Site Investigation data available in
Not available moderate sufficiency. investigation or Separate contract contract in detail. The data is sufficient
Interpretation and investigation for site investigation on unit rate as needed by contractor for bidding.
of data remains with contractor. basis  

Validity of client data during actual Difficult to investigate and Substantial mismatch in data Data is sufficiently matching but Data is easy to confirm during
confirm data given by client provided by client and difficult or expensive to investigation and matching with
investigation during investigation. investigation by contractor investigate. client’s data.

Performance Security 7-10 % of contract value 5-7 % of contract value 2-5 % of contract value 0-2 % of contract value

Retention Money Upto 7-10 % of R.A. Bill Upto 5-7 % of R.A. Bill Upto 3-5 % of R.A. Bill Upto 0-3% of R.A. Bill

Release of retention money Retention money will be released Retention money to be released Retention money partially Partial release of retention money after
after the expiry of 3 months from et the end of defect liability released on request of contractor achievement of certain financial
the date of payment of the final period. after furnishing Bank guarantee progress as specified by client.
bill or F.D. Receipt

Insurance clauses --- No Insurance clauses mentioned Insurance clauses with some Comprehensive insurance clauses
in contract or clauses with high ambiguity. provided against various risks and
ambiguity. force majeure.

Subcontractor Nomination Hi degree of involvement of Client wants to nominate only Contractor is free to nominate -----
client in selecting subcontractor major sub contractors. and deploy subcontractor.
 Rating
Parameter I.I

.
Detailed Drawing
1
Very few detailed drawings and
specification available with tender
2
Drawings and specification available
but client demands working drawing
3
Both Drawings and Specifications
are sufficiently available atleast for
4
Comprehensive Drawings and
Specification are available for
and Specification. document from contractor and many initial substantial portion of work substantial part of project or complete
specifications to be decided by project.
contractor subjected to client’s
approval.
1

Health Safety and High risk involved in the work High risk involved in work. Client is Low risk involved in the work. No Low risk. Regular incentive to
demanding high degree of safety. No ready to give some incentive towards incentive or less incentive offered contractor towards HSE. Co-operation
Environment incentive by client HSE. by client. from client safety staff.
3

Land Acquisition Very small portion of project site is Land is sufficiently acquired but Land sufficiently acquired. Few Land is fully acquired. No resistance
acquired. Resistance by local people. resistance from local people and compensation issues. Land is from locals and no compensation
Many compensation issues. compensation issues. Land available available with less continuity or as issues. Land is continuous or as
in bits and parcels. required by contractor. required.
3

Access to site No proper access available to site. No proper access to site. However, Access available. It may need slight Proper access available. Immediate
High anticipated cost and time for access can be created without modification or improvement. transport of heavy vehicles, plants &
access preparation. spending much time and money. equipment is possible.

3
other contractors main contractor to cooperate project. is providing schedule for their from client side.
deployed by without protection of his work. work. Client ready to protect
client. work. 4

Material supply All the material procurement, Few items will be supplied by client but Major items like cement, steel, Contract is only labour contract. Client will
shipping and logistics is in scope of shipping and logistic remains with bitumen etc are supplied by deliver material to contractor at his store
by client main contractor. contractor. client. Shipping and logistic is place.
with contractor.
1

Statutory Required clearances are not clearly Some of the major clearances required are Clearances required are clearly Clearances required are clearly mentioned.
mentioned. Contractor is needed to mentioned. However, little co- operation mentioned. But little co- High degree of co-operation by client.
Clearances coordinate with concerned public by client. operation by client.
bodies.
3

Presence of Large presence of adjoining Small presence of adjoining property. Small presence of adjoining Project site is free from adjoining property.
property restricting contractor to Contractor need to spend some money to property. Less potential hazard Contractor can carry out activities with full
adjoining carry activities efficiently. Potential protect it. to it. efficiency.
property risk of damage. 3

Quality No clarity about tests to be carried Clarity about tests. Project involves high Clarity about tests. Quality tests, number of tests and frequency
out. Client is not clear about number of differentiated tests. Costly Project involves slightly are well defined. Client has defined proper
requirement implementation of quality system laboratory requirement. differentiated tests. Moderate organisation structure for quality system.
expenses on lab set up. 4

Plant, Machinery ---- Contractor is solely responsible to decide Client has given list of major Client has specified list of equipment with
suitable equipment, capacity and equipment. Client has provided capacity, no. of units, brand and other
and Equipment specifications. Extensive equipment specification for atleast major specification
requirement planning required. equipments.
3
 Rating
Parameter I.I
1 2 3 4
Manpower ---- Contractor is to decide on suitable Client has specified organisation Client has given well defined
organisation structure with number of structure and key personnel. But organisation structure with key
requirement staff with suitable qualification to be contractors view mismatching with personnel. Contractor agrees with
deployed client in this regard. client’s view.
2

Material availability No sources of material Material sources are listed down. Major items are available in proximity Material is supplied by client or most of
mentioned by client. However inadequate capacity of vendors of project site. Few suppliers are ready items are available in abundance nearby.
Remoteness of site. Material and high price fluctuation. to enter into long term agreements. Many vendors are ready to enter long
survey involves high cost and term agreement.
time needed.
3

Climatic condition Adverse climatic condition. Moderately good climatic conditions. Excellent climatic conditions. ----
Past record of frequent flood, But record of occasional natural Contractor can carry out activities
cyclones, earthquakes or other calamities. efficiently
natural calamities No past record of natural calamities.
2

Adjoining projects No Adjoining projects under Adjoining projects under progress. Can Few adjoining projects under progress. Adjoining projects under progress. No
progress. No suitable data hinder contractor’s activities. No co- No data furnished by them. But possible hindrance from them. Ready to
available. operation for furnishing data or other occasional co-operation for equipment, furnish required data needed for
things. material , logistics etc. bidding. Readiness for Co-operation
from them for emergency.
3
 Rating
Parameter I.I
1 2 3 4
Mobilization No provision of advance Advance upto 5 % of contract price. Advance upto 10 % of contract price Advance payment upto 10 % either
payment or little initial Interest rate @ 12 % payable in two stages. Interest rate payable in two stages. Interest rate <
advance advance payment. 12 % 12 % 3

Equipment No provision of equipment Equipment advance upto 75 % of Equipment advance upto 85 % of Equipment advance upto 90 % of
advance payment price price but not exceeding 5% of price exceeding 5 % of contract price
advance contract price at suitable interest with suitable interest rate.
rate. ( Especially large equipment's ) 1

Material Advance No Provision for material Material advance payable for major Material advance payable upto 75 % Material advance payable upto or
advance. items like cement, steel bitumen etc. of material price. Suitable interest more than 75 % of material price.
upto 50 % rate Suitable rate of interest 1

Working hours Restricted working hours. Flexibility of working hours at Flexibility of working hours with Flexibility of working hours.
Contractor cannot speed up discretion of client. compensation to be paid to Contractor can carry out activities in
work during emergency time. Engineer’s representative. absence of client’s or Engineer’s 4
representative.

Political stability Highly unstable. History of Moderately unstable with few records Stable area with less local -----
terrorism, crimes, strikes etc. of such cases. interference.
of areas
3

Liquidated Upto 10 % of contract price Upto 10 % of contract price @ 0.2- Upto 5 % of contract price No Liquidated damages clause or
@ 0.5 % of contract price per 0.4 % of contract price per week of Less than 5 % of contract price
Damages week of delay. delay 1

Bonus for early No Bonus but heavy penalty No Bonus but very less penalty Bonus rate < Penalty rate Bonus @ rate almost equal to penalty
rate
completion
2

Arbitration No Provision for arbitration Very brief arbitration clause. No Well structured arbitration ----
clause proper details provided. mechanism defined by client.
mechanism 3
 Parameter Rating I.I

1 2 3 4

Defect liability period High Moderate Low _ 1

 Result
Importance Index
37 to 60 Unfavorable
“According to our analysis the
importance index is coming to be 76
61 to 100 Considerable which comes under CONSIDERABLE
of the tender.”

101 to 148 Favorable

Final Observation

 The opportunity matrix is coming to be 54 which comes under

CONSIDERABLE.
 After rating the condition of contract, 19.27 % of the total condition is slightly
risk towards the contractor.
 In case of risk matrix the weighted score comes out to be 80. So we can say that
the project is CONSIDERABLE.
 In case of bid/no bid matrix its comes out to be positive value then the
organization should go for BID.
 According to our analysis the importance index is coming to be 74 which comes
under CONSIDERABLE.
 CONCLUSION

By doing the bid/ no bid analysis using the five matrix ,We the contractor came to the conclusion that
the tender floated by MSRDC for the ring road of pune comes under considerable index for the
contractor and we should go for the bidding process.