Procurement (Tendering Process)

The procurement work will mainly be responsible of the client, IntES will support the client in some critical items during the procurement process. The procurement function is defined by the following activities and which will be clarified hereafter: Procurement Support Approach

  • Pre-qualification Stage
  • Contractor Selection Stage
  • Tender Stage
  • Tender’s Evaluation Stage
  • Negotiation Stage
  • Recommendation Stage
  • Contract Procurement Support Approach
  • Final Procurement Report

IntES will be responsible for tender packages and technical evaluation for tender packages. IntES’s detailed design documentation will be detailed enough for the contractor to enable to enter in contracts with fixed quantities and unit rates for variations.

The client will prepare a commercial and financial tender procedure according to current Vietnam law and regulations.

The client and IntES will establish a procurement plan/strategy for the project. The first intention of tender packages is to split & separate maximum 3 tender packages including:

  • General Civil work
  • Steel structure work
  • General MEP & Plumbing work

(We assume that the process equipment and utilities (boiler, WWTP) shall be procured by client.)

Depending from the details of the project, IntES might suggest to split the construction works to defined packages (civil, mechanical, electrical and instrumentation, firefighting), which might result in time schedule and quantitative savings in the project construction costs.

1. Procurement procedures Procurement Support Approach

Together with the client, the procedures of procurement will be developed such as acceptance levels, number and type of bids to be received from the market etc.

The client will sign the contracts with the contractors and suppliers directly based on our recommendation or the client evaluation.

Depending on settlements made with the client and the agreed tender strategy, IntES offers:

  • Long and Short-Listing of Main Contractor(s) with Recommendations
  • Preparation of requests for quotation
  • Issue request for quotation to Contractors
  • Technical Clarification
  • Technical evaluation of quotations
  • Preparation Recommendations to Customer
  • Cooperation with the client on preparation and execution of the contract based on FIDIC and/or economic contract.

2. Pre-qualification stage Procurement Support Approach

Before starting proper tender stage, pre-qualification procedure will be taken. This procedure has in its aim to execute an initial note of each vendor/ contractor, which is done by verification of particular elements that are decisive for the level of offered service. That is, in particular: organizational structure, financial situation, actual and planned orders port-folio, experience in realization of this similar investments, applied quality and safety standards as well as other factors, which are suitable to specific conditions of realization and the clients expectations which also can be influential for further realization of investment.

IntES will assist the client with tender procedure for selection of shortlist from a long-list of maximum 05 Contractors, who will be potentially invited to participate in the pre-qualification stage. Formal acceptance of the client will allow the beginning of pre-qualification procedure.

Pre-qualification forms will be sent to all participants in the pre-qualification procedure. The accepted requirements will be adjusted to specific conditions of project realization for the client, which is helpful due to precise analysed and evaluation of submitted tenders, taking into account the clients’ expectations and investment requirements.

A mandatory condition of the invitation to participate in the pre-qualification procedure is confirmation by the invited vendors / contractors of their acceptance of the confidentiality conditions. More specifically each vendor will be required to sign a “Confidentiality Agreement”, which will oblige the vendor not to reveal information concerning the investment to any Third Parties. The “Confidentiality Agreement” wording and format will be agreed with the client in advance.

3. Contractor Selection Stage Procurement Support Approach

In the result of carrying the pre-qualification procedure, IntES will perform to the clients’ recommendation, which describes the process of procedure in detail, as well as results obtained by its participants. The conclusions of pre-qualification procedure will be discussed together with the clients representatives. Their result will be the selection of companies that will be invited to the main tender stage and drawn up the so called ‘short list of vendors’ between 3 to 5 contractors, which will be presented to the client for their final acceptance. Procurement Support Approach

Obtaining written acceptance from the client is a precondition of entering into the formal tender stage.

4. Tender stage

The basis of the tender procedure is the multi-branch tender documentation prepared in a way to help the potential vendors to understand the scope of works, deadlines and other specific conditions of the project realization. IntES will work out the entire tender project documentation together with tables with works specification (within a separate offer for the design works)

Every document package managed by IntES contains at least the following:

  • Submission Letter
  • Instruction to Bidders
  • Conditions of Contract
  • Specifications
  • Particular Requirement
  • Drawings
  • Bill of Quantities (for reference)

During the tender procedure, before deadline for offers submission, the vendors will have the opportunity to ask questions in order to clarify their doubts concerning tender inquiry. These questions will be sent to IntES office in written, while the answers will be delivered to all participants of the tender procedure.

All the correspondence with the vendors will be carried out in written by the Procurement Department. According to IntES internal procedures, no other form of correspondence will be permitted during the tender stage.

Tenders will be submitted either to IntES office or to the clients office according to the clients decision. They will be submitted on the precisely defined date with the procedure of the “sealed envelopes”. The procedure for opening tenders requires preparation of the Tenders’ Opening Protocol covering all the data related to the submitted tenders together with the signatures of IntES and the clients’ representatives, present at the opening session.

Before opening the tenders, IntES together with the client will precise the conditions to be taken into consideration during the tender evaluation

5. Tender’s evaluation stage

After receiving the tenders, IntES will check if there are complete, coherent, and compatible with the tender inquiry as well as with the requirements of the technical documentation.

The provision of the equal chances for all the tenders is the certainty that the vendors were provided with exactly the same information concerning tender requirements and that the submitted tenders can be compared in all the aspects, including price factors, such as: scope and quality of the offered services, terms of realization, technical conditions, formal and legal conditions.

After checking and confirming all the documents according to the tender’s requirements, IntES will do the bid evaluation.

During the clarification meeting some aspects will need to be clarified, and vendors will be requested to correct potential discrepancies and submit revised offers.

6. Negotiations stage

Negotiation stage will commence after all tenders are comparable.

According to our negotiation strategy, the meetings will be held with the Vendors in order to fix the total sum for the works to be performed.

Number of the vendors invited to the stage of final negotiations will be limited up to 2, and selection will be done by the client and a representative of IntES in common according to the previously approved requirements.

The following documents will be prepared during the negotiation stage:

  • Meeting report;
  • Table containing cumulative data of all the tenders.

We are planning to have two meetings with the Vendors:

  • Verification of the submitted offers stage;
  • Final negotiations stage.

7. Recommendation stage

After the tender process and final negotiations with the vendors, IntES will prepare according to its knowledge and experience, the detailed report describing and summarizing the tender procedure process, will select, rank and recommend the preferred vendor for the project in term of technical.

8. Contract signature

Before making a final procurement report the client and IntES will put their signature on the contract. This is done after going over the contract in detail and both parties being satisfied with the final contract.

9. Final procurement report

The final procurement report will gather into one file all of the documents related to the procurement process. Those are: terms of reference, invitation to bids, quotations, explanations, meeting reports, bid tabulations, minutes of bids opening, letter of intent.

Please contact our team for a tailored approach;

from a client centric perspective.