Contractor Pre-qualification

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.

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.

Benefits of PQAvoiding 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.

Tenders PQ

Employer/ Engineer

Contractor

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.

Invitation to Contractors to Pre-qualify.

Issue and Submission of 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

Request PQ Documents

Respond to Questionnaires on Company/Joint venture

Acknowledge Receipt

Analysis of PQ Data selection & Notification of List of selection

Analyze PQ data:

Company/Joint venture structure

Experience & Resources.

Financial & General stability

Acknowledge Receipt

Select Company/Joint venture for inclusion in list of Tenderers.

Confirm Intention to Submit Valid Tender

Notify all Contractors/Joint venture of the list of selected Tenderers.

Contractor Data Sources:Internal:Reports,documents, ..Etc.External:Questionnaire filled by the contractor. Additional sources (banks, suppliers,..Etc).Site visits to currently projects done by the contractor.

Typical Questionnaire Includes: Introduction: a brief description of the project.Organization: classification and companys organizational chart.Financial resources: financial capability of the contractor.Physical resources: contractor manpower, equipment, etc.Experience: contractor experience on similar projects.

Contractor PQ Process

Development of Criteria (Questionnaire)

Contractor Submits a Proposal

Contractor Informed to Collect Bidding Documents

Inform Rejected Contractors

Qualify Contractor

Reject Contractor

Decision

Apply Contractor Data to criteria (Systematic Model)

Gather More Data

Available Data not Sufficient to make a Decision

Available Data Sufficient to make a Decision

Check Sufficiency & Correctness of Data

Gather Contractor Data (PQ Questionnaire)

PQ Elements 1)LITTER TO CONTRACTORS (invitation) 2)PRE-QUALIFICATION FORM:A) Information for the contractor: i)Objective and scope of workii)General information1)Degree of eligibility2)Formation of partnership or joint venture3)Bonding capacity4)Official language5)Supply materials

PQ Elements Cont..6)Questionnaire submission7)Beginning and duration of construction B) PQ questionnaire:i)Identification of the contractor ii)Contractor performanceiii)Contractors equipmentiv)Construction ability v)Completion ability vi)Client relationship C)Certification and waves

Contractor Rating Strategies: A) dimensional weighting strategy:

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.

Paired Comparison Criteria Weighting:

Evaluation Matrix:

Contractor Name: ---------------------- Grade: ---------

Address: ---------------------------------

CRITERIA

Weight

5 Exce

4 V. G

3 Good

2 Fair

1 Poor

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

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 models parameters.

Model Philosophy Cont..

CDF (Experience)

DF (Size of Completed Projects)

DF (Type of Completed Projects)

Example of Decision Parameters

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).

Model Calculation Cont..

c. Calculate the mean impact for the CDF from equation:

Where: CDFMIi= mean value of CDF.

mi = the number of DFs in the CDF.

d. Calculate the weight of the CDF using the equation:

_1065530322.unknown

_1065685545.unknown

Model Calculation Cont..

c. Find the aggregate score of the candidate contractor K

using the following equation:

Where: AWSK: aggregate weighted rating for the contractor K.

n = number of CDFs ; m = number of DFs in the CDF.

RijK: score of the DFj in the CDFi for the contractor K on scale

of 1(unsatisfactory) to 10(excellent for specific project).

_1065695819.unknown

Example:

Sheet1

Contactor A:

CDF(1)DFDFMIWijCDFMIiWiRijkWij*RijkAWSK1

Financial StabilityBanking Arrangement20.22230.37530.6671.9166666667

Bonding Capacity40.44441.778

Financial Statement30.33382.667

95.111


ExperienceSuccess of Completing Projects30.37520.2541.5001.09375

Size of Completing Projects20.25030.750

No of Similar Comletdd Projects20.25061.500

Types of Completing Projects10.12550.625

84.375


Current Work loadCurrent Work load3130.375772.625

37

AWSK (A)Total = AWSK1+AWSK2+AWSK3 =5.635

MBD00590FD7.unknown

MBD005E65B2.unknown

MBD005FFCC2.unknown

MBD00603E5E.unknown

MBD00604023.unknown

MBD00604075.unknown

MBD00603EB6.unknown

MBD006007C2.unknown

MBD0060082A.unknown

MBD005FFD27.unknown

MBD005E682C.unknown

MBD005E6897.unknown

MBD005E6612.unknown

MBD005DB1E6.unknown

MBD005DC2EC.unknown

MBD005DCCDE.unknown

MBD005DBCBF.unknown

MBD005A54DE.unknown

MBD005A5844.unknown

MBD00590FD8.unknown

MBD0013D417.unknown

MBD00163BF3.unknown

Example Cont..

Sheet1

Contactor B:





94.778






84.375


Current Work loadCurrent Work load3130.375662.25

36

AWSK (B)Total = AWSK1+AWSK2+AWSK3 =5.135

MBD00603E5E.unknown

MBD00604023.unknown

MBD00604075.unknown

MBD00603EB6.unknown

MBD00163BF3.unknown

MBD005DB1E6.unknown

Example Cont..Result: Contractor A has the highest score followed by Contractor C then contractor B.

Sheet1

Contactor C:





96.444






84.625


Current Work loadCurrent Work load3130.375883

38

AWSK (C)Total = AWSK1+AWSK2+AWSK3 =6.573

MBD00603E5E.unknown

MBD00604023.unknown

MBD00604075.unknown

MBD00603EB6.unknown

MBD00163BF3.unknown

MBD005DB1E6.unknown

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.

Contractor Pre-qualification

Documents

Transcript of Contractor Pre-qualification