The document discusses different approximate estimating methods used to prepare preliminary cost estimates for civil engineering projects. These include the service unit method, plinth area rate method, cubical content method, typical bay method, and approximate quantity method. Approximate estimates are prepared early in the project planning process to get a rough idea of probable costs and assess project feasibility before committing resources to detailed design and planning.
The document discusses specifications in engineering projects. It defines specifications as a detailed description of materials, workmanship, and other requirements to complete a project according to its drawings. Specifications are necessary to define quality standards, guide construction, and resolve disputes. They form an essential part of contract documents along with drawings, bills of quantities, and schedules of rates. The document outlines how to write specifications by describing materials, workmanship, tools, testing, and protection of works. It also differentiates between general and detailed specifications.
1) The document discusses various aspects of a construction contract such as tender documents, tender process, acceptance of tenders, contract documents, conditions of contract, and termination of contract.
2) Key elements of tender documents are the notice inviting tenders, tender forms, schedules, specifications, drawings, conditions of contract, and other required information. The tender process involves opening and scrutinizing tenders, preparing a comparative statement, and accepting the tender.
3) The contract documents formalize the agreement between the owner and contractor and include details of the work, estimated cost, security deposit, completion period, specifications, drawings, conditions of contract and signatures of both parties. The contract lays out terms for execution,
Contracts provide a legally-enforceable framework for guiding any and every type of business relationship, from employment agreements to orders for parts and supplies. While these agreements are key to guiding business relationships and ventures across all sectors, getting contracts right is especially important within construction, where the ability to complete a build on time, on budget and to code hinges upon all vendor arrangements going as expected. From the builder’s perspective, contracts are also important for preventing scope creep and to reducing the risk of cost overruns they may unexpectedly have to absorb.
Construction management contracts encompass the work and/or materials required for a building project. Typically, they will address:
1)Project/deliverable specifications
2)Labor and material requirements
3)Timelines for completion/delivery
4)Compensation formula and amounts
While construction management agreements will typically include the above, they can be structured differently, with numerous types of contracts that are designed to best meet the needs of all parties under all sorts of different scenarios. Familiarizing yourself with the types of contracts that are typically in play within building projects is an important first step to optimizing all contract-related processes within construction management.
This presentation covers introduction to Estimating and costing and its importance. Also, types of estimation, different terms and provisions used in estimating, are explained in it. Format of measurement sheet and abstract sheet and the rate analysis has been covered in this presentation. It can be helpful to study basics of estimating and costing.
This document provides an introduction to the role of a Quantity Surveyor (QS). It discusses that a QS calculates materials needed, manages construction costs, and works in private practice, for local authorities or contractors. A QS applies building economics at the planning stage, prepares bills of quantities from plans, analyzes tenders, and provides cost consulting. They are involved at various construction stages from estimating budgets to valuations. The document also discusses tenders, tender drawings, bills of quantities, construction drawings, and common building materials.
This document contains information about specifications for civil engineering projects, including:
1. It defines a specification as a detailed description of workmanship and materials required to complete an engineering project. Specifications are necessary to specify quality, quantity of materials, work methods, and are essential contract documents.
2. There are two main types of specifications - general specifications which provide a brief overview of materials and construction, and detailed specifications which provide complete information about materials, workmanship, testing, and measurement of work.
3. Examples of general specifications for first and second class buildings are given, outlining foundation, flooring, roofing, finishing, doors/windows, and other requirements at a high level.
The document discusses various concepts related to property valuation, including:
- The role of a valuer is to assess the present fair value of a property using their expertise in areas like construction, planning, and relevant laws.
- Valuation considers factors like supply/demand, purpose of valuation, and methods differ for open plots, existing structures, and leasehold properties.
- Key terms are defined, like capitalized value, years purchase, sinking fund, depreciation, and different types of values.
- Depreciation accounts for loss in a property's value over time from various factors like wear and tear, obsolescence, and contingencies.
The document discusses different approximate estimating methods used to prepare preliminary cost estimates for civil engineering projects. These include the service unit method, plinth area rate method, cubical content method, typical bay method, and approximate quantity method. Approximate estimates are prepared early in the project planning process to get a rough idea of probable costs and assess project feasibility before committing resources to detailed design and planning.
The document discusses specifications in engineering projects. It defines specifications as a detailed description of materials, workmanship, and other requirements to complete a project according to its drawings. Specifications are necessary to define quality standards, guide construction, and resolve disputes. They form an essential part of contract documents along with drawings, bills of quantities, and schedules of rates. The document outlines how to write specifications by describing materials, workmanship, tools, testing, and protection of works. It also differentiates between general and detailed specifications.
1) The document discusses various aspects of a construction contract such as tender documents, tender process, acceptance of tenders, contract documents, conditions of contract, and termination of contract.
2) Key elements of tender documents are the notice inviting tenders, tender forms, schedules, specifications, drawings, conditions of contract, and other required information. The tender process involves opening and scrutinizing tenders, preparing a comparative statement, and accepting the tender.
3) The contract documents formalize the agreement between the owner and contractor and include details of the work, estimated cost, security deposit, completion period, specifications, drawings, conditions of contract and signatures of both parties. The contract lays out terms for execution,
Contracts provide a legally-enforceable framework for guiding any and every type of business relationship, from employment agreements to orders for parts and supplies. While these agreements are key to guiding business relationships and ventures across all sectors, getting contracts right is especially important within construction, where the ability to complete a build on time, on budget and to code hinges upon all vendor arrangements going as expected. From the builder’s perspective, contracts are also important for preventing scope creep and to reducing the risk of cost overruns they may unexpectedly have to absorb.
Construction management contracts encompass the work and/or materials required for a building project. Typically, they will address:
1)Project/deliverable specifications
2)Labor and material requirements
3)Timelines for completion/delivery
4)Compensation formula and amounts
While construction management agreements will typically include the above, they can be structured differently, with numerous types of contracts that are designed to best meet the needs of all parties under all sorts of different scenarios. Familiarizing yourself with the types of contracts that are typically in play within building projects is an important first step to optimizing all contract-related processes within construction management.
This presentation covers introduction to Estimating and costing and its importance. Also, types of estimation, different terms and provisions used in estimating, are explained in it. Format of measurement sheet and abstract sheet and the rate analysis has been covered in this presentation. It can be helpful to study basics of estimating and costing.
This document provides an introduction to the role of a Quantity Surveyor (QS). It discusses that a QS calculates materials needed, manages construction costs, and works in private practice, for local authorities or contractors. A QS applies building economics at the planning stage, prepares bills of quantities from plans, analyzes tenders, and provides cost consulting. They are involved at various construction stages from estimating budgets to valuations. The document also discusses tenders, tender drawings, bills of quantities, construction drawings, and common building materials.
This document contains information about specifications for civil engineering projects, including:
1. It defines a specification as a detailed description of workmanship and materials required to complete an engineering project. Specifications are necessary to specify quality, quantity of materials, work methods, and are essential contract documents.
2. There are two main types of specifications - general specifications which provide a brief overview of materials and construction, and detailed specifications which provide complete information about materials, workmanship, testing, and measurement of work.
3. Examples of general specifications for first and second class buildings are given, outlining foundation, flooring, roofing, finishing, doors/windows, and other requirements at a high level.
The document discusses various concepts related to property valuation, including:
- The role of a valuer is to assess the present fair value of a property using their expertise in areas like construction, planning, and relevant laws.
- Valuation considers factors like supply/demand, purpose of valuation, and methods differ for open plots, existing structures, and leasehold properties.
- Key terms are defined, like capitalized value, years purchase, sinking fund, depreciation, and different types of values.
- Depreciation accounts for loss in a property's value over time from various factors like wear and tear, obsolescence, and contingencies.
The document provides an introduction to the role of quantity surveyors in construction projects. It discusses that quantity surveyors are responsible for financial aspects of construction and provide various services throughout a project, including preparing initial budgets and cost estimates, tender documents, valuations of work, and final accounts. It also describes the different stages of a project where quantity surveyors are involved, such as pre-tender, tender, and post-tender stages, and the tasks performed during each stage.
This document provides an introduction to construction estimation and measurement. It defines estimation as calculating quantities and costs for construction work items. Estimates require drawings, specifications, and site data. They are prepared by measuring quantities from drawings and multiplying by unit costs. Estimates are needed to determine project costs, materials, schedules, and more. The document discusses types of estimates like preliminary, detailed, quantity, and revised estimates. It also defines estimation terms and outlines the process for preparing a detailed estimate using measurement and cost forms.
Specifications are the written requirements for materials, equipment, systems, standards and workmanship for a construction project. They are part of the contract documents and define what is to be constructed. Specifications are produced through various stages of design, from preliminary descriptions to outline specifications to final construction specifications. They are coordinated with drawings and other contract documents and use standard industry formats and styles for organization, numbering, writing and coordination.
This document provides an introduction to the subject of quantity surveying and valuation. It discusses why this subject is important given constraints like limited funds, resources and time for construction projects. Knowing quantities of materials beforehand through estimates can help with planning, procurement and achieving economy and standards in construction. The objectives covered include estimating quantities for various construction works, rate analysis, valuation and preparing tender documents. It also outlines the different types of estimates like preliminary, rough cost, detailed and repair estimates.
The document discusses various types of tenders used in construction projects. It describes open tenders, sealed tenders, limited tenders, single tenders, and rate contracts. It also discusses the tendering process, including preparing tender documents, issuing notices, submitting and evaluating tenders, and awarding contracts. Various contract types are outlined, such as lump-sum, cost-plus, item rate, percentage rate, and turn-key contracts. Key tendering concepts like earnest money deposits, security deposits, and liquidated damages are also summarized.
The document discusses different types of construction cost estimates. It describes preliminary estimates which provide approximate costs using methods like per unit, plinth area, or cubic content. Detailed estimates involve accurately calculating quantities for each work item. Other estimates include revised estimates for costs exceeding 5% of original estimates, supplementary estimates for additional works, and annual repair estimates for maintenance. Terminology related to construction projects is also defined.
Types of Contract in Construction ManagementShahin MB
This document describes several types of construction contracts: lump-sum, cost plus fixed fee, cost plus bid fee, guaranteed maximum, negotiated, unit-price, design-build, and turn-key. Lump-sum contracts establish a fixed total price upfront, while cost plus contracts reimburse the contractor's costs plus a fixed or percentage-based fee. Guaranteed maximum contracts set a ceiling on costs. Negotiated, unit-price, design-build, and turn-key contracts vary in responsibilities and payment structures.
This document provides an overview of tendering processes and contract documents for construction projects. It defines key terms like tender, tender notice, tender document, opening and acceptance of tenders. It describes the classification of tenders, necessity of tenders, earnest money deposit, security deposit, liquidated damages, awarding and termination of contracts. The document also explains contract documents, conditions of contracts and their importance in avoiding disputes between parties.
THUMB RULE FOR CIVIL WORKS LABOUR PRODUCTIVITYSSudhaVelan
The document provides thumb rules for estimating the daily productivity of labor for various civil construction works. It lists estimates for number of laborers and their daily outputs for activities like bar bending, formwork fixing and making, concreting, block work, plastering, excavation, MS works, waterproofing, plumbing, electrical works, tiling, granite and marble works. For each activity, it specifies the typical number of laborers, tradespeople, and their estimated daily production quantities based on experience in civil construction projects.
The document discusses different procurement routes for construction projects, including traditional design-bid-build, design and build, and management contracting. Under the traditional approach, the developer hires a professional team including an architect, quantity surveyor, and engineer. The architect designs the building, the quantity surveyor prepares cost estimates and payment valuations, and engineers provide structural and mechanical support. Contractors then bid to build the design. Design and build contracts assign design and construction responsibility to a single contractor for a fixed price. Management contracts engage a contractor to manage the project in exchange for a fee, while the developer directly pays all construction costs.
Quantity surveyors provide cost management services throughout construction projects. They estimate costs, prepare bills of quantities, and advise clients on procurement and contractual methods. The Quantity Surveyor Certified Board regulates the profession and consists of a president, registrar, secretary, and 16 members appointed by the Ministry of Works. Quantity surveyors' responsibilities include cost planning, estimating, tendering, and certifying payments during construction stages. They help control costs, resolve disputes, and ensure projects are delivered within budget.
This document provides an overview of construction contracting methods and contract types. It discusses the traditional Design-Bid-Build approach, as well as Design-Build, Turnkey, and Construction Management delivery methods. The major contract types covered are Lump Sum, Unit Price, Cost Plus, and variations like Cost Plus Fixed Fee and Cost Plus with a Guaranteed Maximum Price. For each, the document outlines the key characteristics, advantages, and disadvantages. The course appears to cover construction documents, contracting, bidding processes, and contract conditions over multiple lectures.
This document discusses different types of construction contracts:
- Lump sum contracts specify a single price for completing a project. They provide incentives for efficiency but carry high risks for contractors.
- Unit price contracts base payment on quantities of work completed. They allow for changes but the final cost is unknown.
- Cost plus contracts reimburse contractors for all costs plus a fee. They provide flexibility but lack incentives for cost control.
This document discusses measure and pay contracts, also known as re-measurement contracts. With this type of contract, the contractor quotes unit prices for items in the bill of quantities (BOQ) provided by the employer. During construction, the actual quantities of work are measured and valued at the quoted rates for interim payments. After completion, the exact quantities are re-measured and valued at the quoted rates for the final payment. While the total cost is not known until completion, this contract allows for adjustments to scope and quantities and requires less design definition upfront than a lump sum contract. It is suitable for competitive bidding but requires accurate measurement and reporting of completed work units.
CONTRACTS, CONTAINING INFORMATION REGARDING NEGOTIATED CONTRACTS WITH ITS TYPES AND INCLUDING PICTURES RELATED WITH TOPICS, COST PLUS PERCENTAGE RATE CONTRACT, MERITS OF THE CONTRACT, DEMERITS OF CONTRACTS, DESCRIPTION ABOUT TTYPES OF NEGOTIATED CONTRACTS, TOPIC IS LINKED WITH CONSTRUCTION AND PLANNING MANAGAGMENT
Read and Interpret Construction Drawings & specificationsLisaThompsonSmeddle
This document provides an overview of construction drawings and specifications. It discusses:
1. The role of drawings is to graphically depict a building design through lines, symbols, and dimensions to communicate the design to construction teams. Specifications describe elements that cannot be shown in drawings, like material quality.
2. Contract documentation includes drawings, specifications, bill of quantities, contract conditions, tender, and legal deed and defines responsibilities of parties.
3. Specifications describe material types, quantities, and quality of work to ensure builders understand job requirements and can estimate costs. They complement the drawings.
The document discusses various types of construction contracts and tendering processes. It defines a tender as an invitation from an owner to contractors to execute work at a specified cost and time. There are different types of tenders including open, sealed, limited, and single tenders. Key aspects of the tendering process include tender forms, documents, notices, evaluation criteria, acceptance procedures, contract documents, deposits, and measurements. Different types of construction contracts are also summarized such as lump-sum, item rate, percentage rate, cost plus, and turn-key contracts.
The document discusses procurement of goods and provides guidance on developing specifications for procured goods. It notes that specifications should be clear, concise, and allow for fair competition. Key points include that specifications (1) define the required quality standards and technical requirements, (2) impact the procurement process and outcomes, and (3) should be written by experienced professionals in an active voice style using clear language, measurements, and descriptive elements like figures and tables.
Goods mean:
Objects of every kind.
Commodities, raw materials, manufactured products and equipment, industrial plants.
Objects in solid, liquid or gaseous form and electricity.
Services incidental to the supply of goods (less than the value of goods).
The document provides an introduction to the role of quantity surveyors in construction projects. It discusses that quantity surveyors are responsible for financial aspects of construction and provide various services throughout a project, including preparing initial budgets and cost estimates, tender documents, valuations of work, and final accounts. It also describes the different stages of a project where quantity surveyors are involved, such as pre-tender, tender, and post-tender stages, and the tasks performed during each stage.
This document provides an introduction to construction estimation and measurement. It defines estimation as calculating quantities and costs for construction work items. Estimates require drawings, specifications, and site data. They are prepared by measuring quantities from drawings and multiplying by unit costs. Estimates are needed to determine project costs, materials, schedules, and more. The document discusses types of estimates like preliminary, detailed, quantity, and revised estimates. It also defines estimation terms and outlines the process for preparing a detailed estimate using measurement and cost forms.
Specifications are the written requirements for materials, equipment, systems, standards and workmanship for a construction project. They are part of the contract documents and define what is to be constructed. Specifications are produced through various stages of design, from preliminary descriptions to outline specifications to final construction specifications. They are coordinated with drawings and other contract documents and use standard industry formats and styles for organization, numbering, writing and coordination.
This document provides an introduction to the subject of quantity surveying and valuation. It discusses why this subject is important given constraints like limited funds, resources and time for construction projects. Knowing quantities of materials beforehand through estimates can help with planning, procurement and achieving economy and standards in construction. The objectives covered include estimating quantities for various construction works, rate analysis, valuation and preparing tender documents. It also outlines the different types of estimates like preliminary, rough cost, detailed and repair estimates.
The document discusses various types of tenders used in construction projects. It describes open tenders, sealed tenders, limited tenders, single tenders, and rate contracts. It also discusses the tendering process, including preparing tender documents, issuing notices, submitting and evaluating tenders, and awarding contracts. Various contract types are outlined, such as lump-sum, cost-plus, item rate, percentage rate, and turn-key contracts. Key tendering concepts like earnest money deposits, security deposits, and liquidated damages are also summarized.
The document discusses different types of construction cost estimates. It describes preliminary estimates which provide approximate costs using methods like per unit, plinth area, or cubic content. Detailed estimates involve accurately calculating quantities for each work item. Other estimates include revised estimates for costs exceeding 5% of original estimates, supplementary estimates for additional works, and annual repair estimates for maintenance. Terminology related to construction projects is also defined.
Types of Contract in Construction ManagementShahin MB
This document describes several types of construction contracts: lump-sum, cost plus fixed fee, cost plus bid fee, guaranteed maximum, negotiated, unit-price, design-build, and turn-key. Lump-sum contracts establish a fixed total price upfront, while cost plus contracts reimburse the contractor's costs plus a fixed or percentage-based fee. Guaranteed maximum contracts set a ceiling on costs. Negotiated, unit-price, design-build, and turn-key contracts vary in responsibilities and payment structures.
This document provides an overview of tendering processes and contract documents for construction projects. It defines key terms like tender, tender notice, tender document, opening and acceptance of tenders. It describes the classification of tenders, necessity of tenders, earnest money deposit, security deposit, liquidated damages, awarding and termination of contracts. The document also explains contract documents, conditions of contracts and their importance in avoiding disputes between parties.
THUMB RULE FOR CIVIL WORKS LABOUR PRODUCTIVITYSSudhaVelan
The document provides thumb rules for estimating the daily productivity of labor for various civil construction works. It lists estimates for number of laborers and their daily outputs for activities like bar bending, formwork fixing and making, concreting, block work, plastering, excavation, MS works, waterproofing, plumbing, electrical works, tiling, granite and marble works. For each activity, it specifies the typical number of laborers, tradespeople, and their estimated daily production quantities based on experience in civil construction projects.
The document discusses different procurement routes for construction projects, including traditional design-bid-build, design and build, and management contracting. Under the traditional approach, the developer hires a professional team including an architect, quantity surveyor, and engineer. The architect designs the building, the quantity surveyor prepares cost estimates and payment valuations, and engineers provide structural and mechanical support. Contractors then bid to build the design. Design and build contracts assign design and construction responsibility to a single contractor for a fixed price. Management contracts engage a contractor to manage the project in exchange for a fee, while the developer directly pays all construction costs.
Quantity surveyors provide cost management services throughout construction projects. They estimate costs, prepare bills of quantities, and advise clients on procurement and contractual methods. The Quantity Surveyor Certified Board regulates the profession and consists of a president, registrar, secretary, and 16 members appointed by the Ministry of Works. Quantity surveyors' responsibilities include cost planning, estimating, tendering, and certifying payments during construction stages. They help control costs, resolve disputes, and ensure projects are delivered within budget.
This document provides an overview of construction contracting methods and contract types. It discusses the traditional Design-Bid-Build approach, as well as Design-Build, Turnkey, and Construction Management delivery methods. The major contract types covered are Lump Sum, Unit Price, Cost Plus, and variations like Cost Plus Fixed Fee and Cost Plus with a Guaranteed Maximum Price. For each, the document outlines the key characteristics, advantages, and disadvantages. The course appears to cover construction documents, contracting, bidding processes, and contract conditions over multiple lectures.
This document discusses different types of construction contracts:
- Lump sum contracts specify a single price for completing a project. They provide incentives for efficiency but carry high risks for contractors.
- Unit price contracts base payment on quantities of work completed. They allow for changes but the final cost is unknown.
- Cost plus contracts reimburse contractors for all costs plus a fee. They provide flexibility but lack incentives for cost control.
This document discusses measure and pay contracts, also known as re-measurement contracts. With this type of contract, the contractor quotes unit prices for items in the bill of quantities (BOQ) provided by the employer. During construction, the actual quantities of work are measured and valued at the quoted rates for interim payments. After completion, the exact quantities are re-measured and valued at the quoted rates for the final payment. While the total cost is not known until completion, this contract allows for adjustments to scope and quantities and requires less design definition upfront than a lump sum contract. It is suitable for competitive bidding but requires accurate measurement and reporting of completed work units.
CONTRACTS, CONTAINING INFORMATION REGARDING NEGOTIATED CONTRACTS WITH ITS TYPES AND INCLUDING PICTURES RELATED WITH TOPICS, COST PLUS PERCENTAGE RATE CONTRACT, MERITS OF THE CONTRACT, DEMERITS OF CONTRACTS, DESCRIPTION ABOUT TTYPES OF NEGOTIATED CONTRACTS, TOPIC IS LINKED WITH CONSTRUCTION AND PLANNING MANAGAGMENT
Read and Interpret Construction Drawings & specificationsLisaThompsonSmeddle
This document provides an overview of construction drawings and specifications. It discusses:
1. The role of drawings is to graphically depict a building design through lines, symbols, and dimensions to communicate the design to construction teams. Specifications describe elements that cannot be shown in drawings, like material quality.
2. Contract documentation includes drawings, specifications, bill of quantities, contract conditions, tender, and legal deed and defines responsibilities of parties.
3. Specifications describe material types, quantities, and quality of work to ensure builders understand job requirements and can estimate costs. They complement the drawings.
The document discusses various types of construction contracts and tendering processes. It defines a tender as an invitation from an owner to contractors to execute work at a specified cost and time. There are different types of tenders including open, sealed, limited, and single tenders. Key aspects of the tendering process include tender forms, documents, notices, evaluation criteria, acceptance procedures, contract documents, deposits, and measurements. Different types of construction contracts are also summarized such as lump-sum, item rate, percentage rate, cost plus, and turn-key contracts.
The document discusses procurement of goods and provides guidance on developing specifications for procured goods. It notes that specifications should be clear, concise, and allow for fair competition. Key points include that specifications (1) define the required quality standards and technical requirements, (2) impact the procurement process and outcomes, and (3) should be written by experienced professionals in an active voice style using clear language, measurements, and descriptive elements like figures and tables.
Goods mean:
Objects of every kind.
Commodities, raw materials, manufactured products and equipment, industrial plants.
Objects in solid, liquid or gaseous form and electricity.
Services incidental to the supply of goods (less than the value of goods).
This document discusses the importance of developing clear specifications in the procurement process. It outlines several key points:
1. Specifications form the basis for communicating requirements to both internal departments and external suppliers. They establish quality and performance standards.
2. Developing specifications requires input from multiple functions to balance goals around performance, cost, and supply availability.
3. Specifications can take many forms from simple to complex, and often use a combination of methods. Care must be taken to ensure specifications allow for competition and are not overly limiting.
4. Both internal departments and external suppliers should be involved early in the specification development process to help ensure requirements are clearly defined and procurable.
This document provides information on an organization's vendor quality improvement process from 2013-2014. It discusses upgrading existing vendors like HSG Machinings and Catcher & Co. castings. It also covers quality improvement efforts for existing and new castings, as well as bearing and housing machining. The document outlines the vendor selection process and provides examples of evaluation criteria and formats for selecting and developing vendors. It discusses strategies for negotiating contracts and common negotiation mistakes to avoid.
This document discusses the concepts of total quality management and the dimensions of quality. It defines quality as fitness for use at the most economical level. Quality is the most important thing for any organization. High quality reduces the need for additional services like verification and warranty work. The definition of quality has evolved over time from fitness to standard, to fitness of use, to fitness of cost, and finally fitness to latent requirements. Quality has nine dimensions including performance, features, conformance, reliability, durability, service, response, aesthetics, and reputation. There are also dimensions specific to manufacturing quality and service quality. The costs associated with quality are known as quality costs, which include costs of prevention, appraisal, internal failures, and
The document summarizes the key steps in a typical purchase cycle for projects:
1) Project engineers specify requirements and identify potential vendors.
2) Buyers send tender requests to shortlisted vendors detailing requirements.
3) Vendors submit bids in response to the tender which are evaluated.
4) The preferred vendor is selected based on both technical and commercial evaluations and a purchase order is placed.
5) The purchasing process is then monitored to ensure timely delivery of goods that meet specifications.
This document discusses specifications for construction projects. It begins by outlining the purpose of specifications, which is to provide written descriptions of technical and legal requirements to accompany drawings. It then describes different types of specifications, including proprietary, performance, reference, and descriptive specifications. The document emphasizes that specifications should be clear, concise, unbiased, and avoid unnecessary repetition. Overall guidelines are provided for writing specifications, including using proper language, formatting, and referencing applicable codes and standards.
This document provides an overview of quality concepts and definitions. It discusses definitions of quality as fitness for use and conforming to specifications. It describes key quality characteristics like technological, psychological, time-oriented, contractual, and ethical characteristics. It also discusses the quality function and costs of quality, categorizing quality costs into costs of prevention, appraisal, internal failures, and external failures. The document aims to define quality and its important dimensions from different perspectives.
The Art of Planning and Writing Specs and Requirements--ISM 2010 TanelThomas Tanel
One of the most difficult tasks that purchasers face is converting user or internal
customer needs to new specifications and requirements. For most, it’s easier said than done,
while others simply dread the thought of constructing a Statement of Work. Failure to develop
a properly defined scope of work, specification, or requirement may mean the solicitation will
need to be abandoned and repeated with corrections. Purchasers who are involved in putting
together specifications, requirements, or SOWs need to be aware that it is worth the
investment, time, and effort to create a high quality outcome. Thus, it is important that
purchasers understand the importance of good specifications and requirements, as well as
their contractual and practical significance. This proceeding will offer you practical techniques,
tools, and process methods for constructing effective specifications, requirements, and SOWs.
The document provides information on specifications and their importance in construction projects. It defines specifications as documents that control quality of materials and works. Specifications are necessary to describe matters not explained clearly in drawings, guide contractors during execution, and help resolve disputes. The types of specifications are general, detailed, and standard specifications. Detailed specifications describe technical requirements of each construction type and include provisions for materials, workmanship, and performance [END SUMMARY]
DuroAir is updating its sales strategy to target higher value customers by positioning itself as offering "flexible end to end air quality solutions that maximizes productivity". The sales strategy outlines communicating the value proposition to potential, current and referral customers. It involves segmenting the market and focusing on segments with high barriers to entry like wind energy and engineering consulting. Tactics include building intelligence on these industries, attending conferences, and engaging contacts on LinkedIn to set up meetings and grow account lists. The goal is to improve DuroAir's sales process by having distinct marketing, sales, and customer support teams that work together to move leads through the pipeline.
TE is looking to reduce costs for connectors. They will evaluate alternative suppliers through benchmarking and assessing key performance indicators. A make vs. buy analysis will determine whether to outsource assembly. Negotiations will focus on pricing arrangements, contractual agreements, and establishing specifications and service level agreements. TE will also explore streamlining operations through a lean approach.
The document provides an overview of Quality Function Deployment (QFD), a structured methodology for incorporating customer needs into product design and development. It discusses the key aspects of QFD, including identifying customer requirements, design attributes, and their relationships. It describes the "House of Quality" diagram which maps these relationships. It also discusses how additional houses can be used to flow customer needs through different stages of development and production to ensure the customer voice is maintained.
The document discusses the House of Quality tool used in Quality Function Deployment. The House of Quality matrix translates customer requirements into engineering targets for new product design. It has six major components: customer requirements, technical requirements, a planning matrix, an interrelationship matrix, a technical correlation matrix, and a technical priorities/benchmarks section. The matrix helps identify what must be done to the product design to fulfill requirements and meet customer needs.
The document discusses implementing Six Sigma methodologies and statistical process control (SPC) to improve overall equipment effectiveness (OEE). It advocates determining clear product specifications and production requirements before setting reliability and SPC metrics. An effective quality system monitors that manufacturing meets specifications by controlling design limits, rather than just reacting to quality issues. Quality systems mainly support deploying and enforcing correct product and process designs developed elsewhere in the organization.
The document describes the process for establishing target product specifications and setting final specifications. It involves:
1. Establishing target specifications after identifying customer needs by preparing metrics, collecting benchmarks, and setting ideal and acceptable values.
2. Setting final specifications after selecting a product concept by developing technical and cost models, refining specifications through trade-offs, flowing specifications down to subsystems, and reflecting on results.
Day 1 Review Industrial Codes and Standards.pptxmusaabdalla3
This document discusses standards and their importance for engineers. It defines a standard as a document developed through consensus that describes how a product is obtained or used. Standards benefit commerce by reducing costs, improving products, and expanding markets. Practicing engineers need standards to efficiently design and build deliverable products. Engineering managers need new standards to capture knowledge as experienced engineers retire, addressing an expected shortage. An ideal standard is relevant, unambiguous, consistent, and measurable. Standards include best practices and lessons learned but not every situation. Observance of standards reduces liability risks and ensures compatibility.
Manish Singh has over 10 years of experience in quality assurance, vendor management, audits, and inspections. He is seeking a role in corporate quality assurance and has a strong background in conducting supplier audits and analyses, implementing quality control processes, and ensuring compliance with technical specifications. His experience includes roles at Samsung India Electronics and Armstrong Engineering Services focusing on tasks like supplier corrective action requests, design engineering, and heat load calculations.
How to Perfectly Construct an RFP in 8 StepsThe RFP (request for.docxpooleavelina
How to Perfectly Construct an RFP in 8 Steps
The RFP (request for proposal) is a document that describes project specific requirements and expectations to suppliers with the aim of getting proposed solutions from qualified companies or vendors. The document is helpful for suppliers to establish joint understanding of requirements for a project. The details of RFP depend on scope of the project (Wilkinson & Thorson, 1998). It might involve specific services, products, or outline the expected use of technology and the requirements for project implementation. This means that RFP should be well-conceived, concise, and well-written to attract good vendors. A poorly written RFP attract unsuitable vendors for the project. Ambiguous requirements prevent the qualified candidates from bidding properly. The RFP detail aspects of proposed requirement and what is expected of vendor in meeting the requirement. The final proposal and RFP when agreed become statement of work for contract (Wilkinson & Thorson, 1998). Let’s begin exploring how an RFP is constructed.
Calonico. S (2018) Kumulos.
1. Define company overview
This section of RFP helps managers contextualize decisions made in the project by considering whether they will be able to provide your company’s specific field with the appropriate material and/or services. It captures information about the organization, what it does and what it is currently doing. Further, the section should culture the uniqueness of the company. The company overview should tell reader about the company values. By describing the value, you are likely to get an organization which has value fit for processes and goals. It defines the reason for writing the RFP. When writing the RFP you are required to introduce the product, the requirements for the product, and the summary of the main points of your request. When defining the company overview, you must also consider including important details to support your request such as customers, clients, and revenue which will be used to raise capital, understand the competitors, and customers’ segments.
Mypcot. Company Overview
2. Define the project scope
The introduction section includes explanation of response evaluated. The section tells vendors what is expected, what the company wants, giving timetable for implementation, showing where the company wants to improve, changes predicated in the project, and specify deliverables.
Pmlinks. Project Management 101 – Project Scope
This section reminds the reader of the reason behind your company writing out the RFP. For instance, reason for introduction of new product or brand re-design. The scope shows what the project will solve and how the problem will be solved and the goals o ...
Similar to Preperation of Technical Specification & Estimate (20)
United Nations World Oceans Day 2024; June 8th " Awaken new dephts".Christina Parmionova
The program will expand our perspectives and appreciation for our blue planet, build new foundations for our relationship to the ocean, and ignite a wave of action toward necessary change.
Preliminary findings _OECD field visits to ten regions in the TSI EU mining r...OECDregions
Preliminary findings from OECD field visits for the project: Enhancing EU Mining Regional Ecosystems to Support the Green Transition and Secure Mineral Raw Materials Supply.
The Antyodaya Saral Haryana Portal is a pioneering initiative by the Government of Haryana aimed at providing citizens with seamless access to a wide range of government services
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Combined Illegal, Unregulated and Unreported (IUU) Vessel List.Christina Parmionova
The best available, up-to-date information on all fishing and related vessels that appear on the illegal, unregulated, and unreported (IUU) fishing vessel lists published by Regional Fisheries Management Organisations (RFMOs) and related organisations. The aim of the site is to improve the effectiveness of the original IUU lists as a tool for a wide variety of stakeholders to better understand and combat illegal fishing and broader fisheries crime.
To date, the following regional organisations maintain or share lists of vessels that have been found to carry out or support IUU fishing within their own or adjacent convention areas and/or species of competence:
Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR)
Commission for the Conservation of Southern Bluefin Tuna (CCSBT)
General Fisheries Commission for the Mediterranean (GFCM)
Inter-American Tropical Tuna Commission (IATTC)
International Commission for the Conservation of Atlantic Tunas (ICCAT)
Indian Ocean Tuna Commission (IOTC)
Northwest Atlantic Fisheries Organisation (NAFO)
North East Atlantic Fisheries Commission (NEAFC)
North Pacific Fisheries Commission (NPFC)
South East Atlantic Fisheries Organisation (SEAFO)
South Pacific Regional Fisheries Management Organisation (SPRFMO)
Southern Indian Ocean Fisheries Agreement (SIOFA)
Western and Central Pacific Fisheries Commission (WCPFC)
The Combined IUU Fishing Vessel List merges all these sources into one list that provides a single reference point to identify whether a vessel is currently IUU listed. Vessels that have been IUU listed in the past and subsequently delisted (for example because of a change in ownership, or because the vessel is no longer in service) are also retained on the site, so that the site contains a full historic record of IUU listed fishing vessels.
Unlike the IUU lists published on individual RFMO websites, which may update vessel details infrequently or not at all, the Combined IUU Fishing Vessel List is kept up to date with the best available information regarding changes to vessel identity, flag state, ownership, location, and operations.
AHMR is an interdisciplinary peer-reviewed online journal created to encourage and facilitate the study of all aspects (socio-economic, political, legislative and developmental) of Human Mobility in Africa. Through the publication of original research, policy discussions and evidence research papers AHMR provides a comprehensive forum devoted exclusively to the analysis of contemporaneous trends, migration patterns and some of the most important migration-related issues.
Food safety, prepare for the unexpected - So what can be done in order to be ready to address food safety, food Consumers, food producers and manufacturers, food transporters, food businesses, food retailers can ...
RFP for Reno's Community Assistance CenterThis Is Reno
Property appraisals completed in May for downtown Reno’s Community Assistance and Triage Centers (CAC) reveal that repairing the buildings to bring them back into service would cost an estimated $10.1 million—nearly four times the amount previously reported by city staff.
Contributi dei parlamentari del PD - Contributi L. 3/2019Partito democratico
DI SEGUITO SONO PUBBLICATI, AI SENSI DELL'ART. 11 DELLA LEGGE N. 3/2019, GLI IMPORTI RICEVUTI DALL'ENTRATA IN VIGORE DELLA SUDDETTA NORMA (31/01/2019) E FINO AL MESE SOLARE ANTECEDENTE QUELLO DELLA PUBBLICAZIONE SUL PRESENTE SITO
Contributi dei parlamentari del PD - Contributi L. 3/2019
Preperation of Technical Specification & Estimate
1. 1
SPECIFICATION
&
ESTIMATE PREPARATION
1
Er. Satya Narayan Shah
B.Sc. In Mechanical Engineering (India)
MS in Manufacturing Engineering & Management (UK)
Email: er.snshah@gmail.com
Cell: 9851004366
February, 2016
A proverb…
“If you always do what you’ve
always done, you’ll always get
what you always got”
Challenge and question repeat
in purchases
Each procurement is unique
INTRODUCTION
The goal of Purchasing is to provide
the end user with the professional
service necessary to meet the end
user’s requirements, based on the
historical, budgetary, and legal
requirements of the organization.
The most important tool to achieve
this is the SPECIFICATIONS.
Preparation of Specification
The act of specifying, a detailed,
exact statement of particularsexact statement of particulars,
especially a statement prescribing
materials, dimensions, and quality
of work for something to be built,
installed, or manufactured.
Scope vs. Specifications
Scope of Services:
Means the parameters of services needed by the Department
or the expertise of the respondent needed to perform
services required by the Department.
Specifications:
The act of specifying, a detailed, exact statement of
particulars, especially a statement prescribing materials,
dimensions, and quality of work for something to be built,
installed, or manufactured.
Scope/Specification
IT’S NOT ABOUT
WHAT
YOU WANT BUT…
WHAT YOU NEED
2. 2
End users /
requisitioners
HR managers
knowledge of the market
knowledge of potential
environmental/social impacts
and relevant regulations and
legislation
knowledge of
d t / i i fl
Those who might be
involved in identifying
needs include
products/services; influence
on the development of new
products/markets
information on alternative
products/services,
alternative means of
delivering functionality
Procurement managers
Procurement officers
Suppliers
Specification
Purposes
Specifications help to avoid lengthy description in the Bill of
Quantities.
They guide Bidders about the clients intended quality
requirements.
Formation of contractual obligations as to what exactly the
li t tclients want.
Help the supervisors and commissioning and testing team.
It guides to achieve the required total quality and
performance of the end product.
It helps the Contractor/ Supplier to workout the rates and
prices for bidding the contract.
It helps the Engineer/ Employer to monitor and control the
quality of end product. 8
Specification
Purposes
It provides as basis for the quality assurance and
quality management.
It provides as basis for establishment of necessary
laboratory for quality check.
It provides basis for dialogue between the
Contractor and the Engineer to agree or disagree forContractor and the Engineer to agree or disagree for
quality of materials and works.
It may also become a basis for disputes between the
Contractor and the Engineer.
It is basis for the Engineer to approve or reject
materials or works
Clear specifications will result in less Claims,
Disputes and Litigation problems 9
TYPES OF SPECIFICATIONS
Design: The intension here for the word “design” means that
the specification is so detailed that it describes how the
product is to be manufactured.(buildings, highways etc.)
Performance: As the name indicates, these specifications
set out the performance requirements that a product is to
meet. Using this concept, the end result is the priority
consideration and, in contrast to the design approach, theconsideration and, in contrast to the design approach, the
manufacturer is given great latitude in how can accomplish
it. This encourages ingenuity, innovation, and cost
reduction.
Combination: Specifications can, and often do, include
both design and performance features. Characteristics of
both are used as prerequisites and as limiting factors in
developing the specifications
OTHER SPECIFICATIONS
Brand Name: Cite a brand name, a model number, or some
other designation that identifies a specific product of a
manufacturer as an example of the quality level desired. Items
equaling or surpassing this quality level are understood to be
acceptable. Although brand name specifications are not
considered good specifications, they have a legitimate though
limited place in public purchasing.
Qualified Products List: This is to determine, in advance,Qualified Products List: This is to determine, in advance,
those products which are acceptable. The evaluation of these
bids is greatly simplified, and the price and the performance
capability of the bidder become the determinants.
Samples: Samples can also be of great value in assuring
compliance and satisfaction after award, but before
production. In this way, many problems can be solved before
the units are manufactured and delivered.
BASIC CONTENT OF A GOOD SPECIFICATION
A specification should:
1. Allow for competition at the manufacturing level
2. Provide information on those measurable physical, functional
and quality characteristics common to manufacturers.
3. Complete in the stipulation of all requirements, either directly,
or reference to other specifications publications or drawingsor reference to other specifications, publications, or drawings.
These requirements should include:
1.Basic design.
2. Physical dimensions.
3. Weights
4. Percent and type of ingredients.
5. Types/grades of materials, if applicable
3. 3
Specifications should not be too restrictive:
1. A restrictive specification usually limits competition and eliminates
items that can satisfactorily meet actual needs.
2. Specification writers should be careful not to use “in house” jargon
and acronyms that may be misunderstood by the bidder.
3. Specs must be well written and communicative.
4. A well-written specification is precise in its descriptions and
directions. It should be clear, simple language, free of vague terms of
those subject to variation in interpretation.j p
5. Abbreviations should be restricted to those in common usage and not
subject to possible misunderstanding.
A good specification writer seeks the advice, assistance and
cooperation of all intended users concerning their precise
requirements regarding the standards of quality, type, size,
etc. for any item(s). Always seek the assistance of
individuals, who have specialized technical competence in
the field for which you are developing the specifications.
Specification
That’s why, the
specifications are to be
written by anwritten by an
experienced
professional.
14
A GOOD SPECIFICATION SHOULD BE
1. Simple, consistent and exact, but not so specific that a
loophole will allow a bidder to evade any of the provisions and
thereby take advantage of his competitors or the buyer.
2. Identified, when possible, with some brand specification
already on the market. (Custom goods are expensive).
3. Capable of being checked. It should describe the method of
checking which will govern acceptance or rejection. A
ifi ti hi h t b h k d i f littl l dspecification which cannot be checked is of little value and
only confusion will result.
4. Reasonable in its tolerance. Unnecessary precision is
expensive.
5. As fair to the seller as possible.
6. Capable of being met by several bidders for the sake of
competition.
7. Clear and Up-to-Date. Misunderstanding can be expensive.
8. Flexible, inflexible specifications defeat progress. Invite
vendors to suggest cost saving alternatives or substitutes.
KEY WORDS
The inappropriate use of key words in your
specification could have disastrous results if the
supplier is not sure what you are requiring and
what you would like to have. Remember,
suppliers, in order to be competitive, will almost
always provide the least expensive product to youalways provide the least expensive product to you.
If you say “may” rather than “will” in the text of
your specification, it could mean one thing to one
supplier and another to the end user.
Use “shall” or “will” where ever a
specification expresses a requirement.
Use “should” or “may” to express non-
mandatory provisions.
MEASUREMENTS
Dimensions, gauges, capacities, size designations,
volume or temperatures should be specified in
accordance with established precedent and trade
practice for the particular commodity or service you
are attempting to purchase. Review the document
after completed and:after completed and:
1. Make every effort to replace words with numbers.
Whenever you go from words to numbers,
communication relating to quantity or quality is
enhanced.
2. Tolerances should be specified where applicable.
3. The use of “minimum” and “maximum” should be
used wherever practical.
FIGURES AND TABLES, GRADES, CLASSES,
TYPES, COMPOSITIONS, ETC.
The use of figures, illustrations, tables and graphs, etc. should be maximized. It
describes the item(s) more clearly and accurately than you can in text. Tables show
relationships more clearly than text. Figures and tables should have titles and parts
clearly identified and should be numbered consecutively throughout the
specifications.
The use of grades, classes and types should be in accordance with established
precedence and trade practices for the type of equipment, materials or supplies you
are bidding. For the purpose of preparing specifications, type grade, class and
iti d fi d f llcompositions are defined as follows:
Type: This term applies differences in design, model, shape, etc. of the items.
Class: This term implies differences in mechanical or other characteristics of items
which do not constitute a difference in quality or grade.
Grade: This term implies differences in quality of a commodity. When practicable, the
first grade of a commodity should be the highest or best grade.
Composition: This term is used to classify commodities which are differentiated
strictly by their respective chemical compositions.
Other Classifications: Other classifications, such as form, weight, size, power
supply, temperature rating, condition, insulation, etc. suitable for reference for the
applicable equipment or commodity item may be used.
4. 4
WRITING HINTS
Writing Style: Exposition is concerned primarily with the communication
of ideas in a form that the reader can understand. It aims to: Save the
readers time, eliminate confusion, and help the reader gain ideas quickly
and easily.
Active Voice is Preferred: Active voice is the most simple and direct way
to make statements. Action is expressed directly, more vigorously, and
makes the sentence more concise. Readers prefer the active voice becausep
it is more: Direct, interesting and descriptive.
Choosing the Right Word: You can make your meaning more clear by
using shorter words. Shorter, more direct words get to the point, are
clear-cut, and distinctive. For example: activate, expedite, initiate,
nevertheless, prioritize and erroneous.
Write Clear Using Shorter Phrases: Do not use long phrases when it is
not necessary. For example: a great number of times (many), at regular
intervals(every), make contact with(call).
Preparation of Specification
Before writing the specification the requirements
should be clearly worked out.
Requirements are often classified as;
• 'Mandatory' - essential requirements that suppliersy q pp
must meet
• 'Desirable' - requirements that whilst bringing
benefits are not essential
• 'Information' - requirements that request
information from the supplier typically for evaluation
purposes
Er. Satya Narayan Shah 20
Specifications
Use of standard specifications reduces the
chances of ambiguity and also makes easier for
preparation of contract documents.
Reference to standards and codes e.g. IS, BS,
21
NS etc. reduce extra efforts in detailing the
specification etc.
Standard Specification- Prepared and
published by the organization.
Standard Specification needs to be approved by the
Cabinet level. Er. Satya Narayan Shah
Preparation of Specification
• Language: Simple and clear, same tense
• Brief: as brief as possible. Standard articles code
books specified by references, no need of
explanation.
• Fairness: fair to all parties.
• Clear Requirement: Express requirement clearly
• No repetition: Repetition of information should be
avoided.
• Unnecessary text: Inapplicable text should not be
included.
22
Preparation of Specification (contd…)
• Inclusions: Inclusion of proper paragraphs for specification
of materials, Major Components, Installations, Tests and
Commissioning, After sales service, Guarantee/Warranty.
• Standard Size: Commercial sizes should be specified as far
as possible.
• Brand/Model: Any particular brand or model should not be
ifi d f ibl If it i t d ti dspecified as far as possible. If it is quoted, options and
choice should be given.
• Use of standard specifications reduces the chances of
ambiguity and also makes easier for preparation of
specification.
• If the standard specification does not cover the requirement,
in such cases specific specifications has to be prepared.
23
Specifications and Drawings
• Specifications and Drawings are the 2 integral
parts of contract, which shows the requirements
(needs and expectations) of the Employer.
• Specifications are referred more in cases of
conflict and disputes whereas the drawings areconflict and disputes whereas the drawings are
dealt in day-to-day work execution.
• Notes mentioned in the drawings are also treated
as specifications and are effective.
24Er. Satya Narayan Shah
5. 5
Specifications and Drawings
• That’s why the Notes written in the drawings are
also to be clear, specific, complete, and carefully
worded as in the Specification.
• To minimize the discrepancy, it is important to take
care in finalizing the drawings and specificationscare in finalizing the drawings and specifications.
• It is advised to include clauses stating “in case of
discrepancy in Drawings and Specifications, the
Engineer will decide ”.
• Such authority to the Engineer may avoid disputes
and litigations arising from some small mistakes.
25Er. Satya Narayan Shah
EVERY SPECIFICATION WRITER SHOULD ASK
QUESTIONS OF ONESELF SUCH AS:
Who will receive the document?
What do I want people to know or do?
What should be my approach?
How detailed and exact should myHow detailed and exact should my
information be?
What can I assume about my audience’s
knowledge of the subject?
What might their questions be?
Specification to be
required to describe the
desired performance,
d t t dand not to reduce
competition.
27
A PRE-WRITING CHECKLIST IS ESSENTIAL
1. Revision or new spec necessary.
2. Determine what information is needed.
3. Determine information sources.
4. Review existing related specs and standards(internal and other
sources).
5. Brainstorm the proposed content with your peers.
6. Develop a conceptual specification in your mind.6. Develop a conceptual specification in your mind.
7. Interview personnel in other affected departments.
8. Other revisions necessary.
9. Within statutory and policy limits.
10. Conflict information.
11. Detailed flow chart necessary.
12. Who is your audience?.
13. Do you have the data to inform them?.
Participants of Specification Process
•User Department
•Contract Administrator
•Contract Compliance and VendorContract Compliance and Vendor
Services
•Consultants
•Legal Department
•Risk and Benefits Management
HOW SPECIFICATIONS AFFECT PROCUREMENT PROCESS
EFFECT ON: POORLY WRITTEN: WELL WRITTEN:
NUMBER OF BIDDERS Overly broad or restrictive Complete, clear concise
specifications. specifications.
Deter potential bidders. Attract MANY AND
Increase costs. QUALIFIED bidders.
Decrease chance of
desired results.
EVALUATION Easily misinterpreted. SHARP SPECIFIC
PROCESS/PROTESTS Open to challenge and CRITERIA
protest by unsuccessful Easier to evaluate.
bidders. Minimizes possibility ofp y
protests.
BIDDER RISK Unreasonable requirements Reasonable requirements
higher risk and higher costs. lower assumption of risk
by bidders.
TYPE OF CONTRACT Uncertain amount of effort Well defined effort leads
leads to cost reimbursement to a firm fixed price
contract. contract.
ADMINISTRATION OF Unclear inaccurate specifications Well defined specifications
CONTRACT lead to management problems. lead to more control and
easier administration. 30
6. 6
Examples of Specification
• Example – Vehicle
•Type – Sedan, Hatchback,
•General - Seating capacity, Engine Power,
C.C etc.
T i i 4 d d•Transmission – 4 speed, 5 speed
•Steering – Manual, power
•Options – AC, Non AC,
•Warranty - Period to be covered
Spec
Car
31
Spec
BIVMicrosoft Office
d 97 - 2003 Docum
Conclusion
▫ Everyone participating is important and
has a role in the specification process.
▫ Plan ahead, good players are ready to help.
▫ Teamwork and team responsiveness is the
KEY to the successKEY to the success.
▫ What your mind can think, your hands can
write.
▫ Well written specifications, is a smooth
sailing to the Procurement Process.
Questions are
welcome
PRACTICUMS
• Prepare Specifications for simple items and
discuss.
▫ Pen
34
▫ Pen
▫ Pencil
▫ Water Bottle
▫ Table
▫ Office Bag
▫ Spectacles
▫ Handkerchief, etc
Cost Estimating
Cost Estimate to be Prepared -
(PPA-5)
(1) A Public Entity shall have to prepare a
cost estimate as prescribed for any
procurement whatsoever.
Provided that a cost estimate shall notProvided that a cost estimate shall not
be required for any procurement valuing up
to twenty five thousand rupees (Rs. 25000).
(2) A Public Entity shall update as
prescribed the cost estimate prepared
pursuant to Sub-section (1).
36
7. 7
ESTIMATION
Estimation is the technical way of working out the
approximate cost of goods before execution of the
procurement process.
An estimate is the probable cost of the job as
computed based on plans and specifications.
Estimation requires Knowledge of the
construction/manufacturing procedures and cost ofconstruction/manufacturing procedures and cost of
materials & labour in addition to the skill , experience,
foresight and good judgment.
For a good estimate, the actual cost of the proposed
work after completion should not differ by more than
5 to 10 % from its cost estimate, provided there are no
unusual, unforeseen circumstances.
NEED
1. It helps to work out the approximate cost of the
project in order to decide its feasibility with respect
to the cost and to ensure the financial resources, if
the proposal is approved.
2 It is used for framing the tenders and helps in the
tender evaluation process.
3. From quantities of different items calculated in
detailed estimation, resources are allocated to
different activities of the project and ultimately
their durations and whole planning and scheduling
of the project is carried out.
4. It is mandatory by the regulation. (PPA‐5)
Estimating Method
Actual Cost Approach
This approach requires the estimator to have a
good working knowledge of manufacturing/
construction methods. (based on Standard Norms)
Historic Data Approach
The use of historic data from recently awardedy
contracts is a cost-effective method to develop
the estimate, however, solely relying on historic
data may not be appropriate when the data is
based on a noncompetitive bidding environment.
Combination Approach
This approach combines the use historic bid data
with actual cost data and other source(Market
Survey). 39
ESSENTIAL QUALITIES OF A GOOD ESTIMATOR
• In preparing an estimate, the Estimator must
have good knowledge of the surveying.
• He must thoroughly understand the drawings of
the item, for which he is going to prepare an
estimate.
He must also be clearly informed about the• He must also be clearly informed about the
specifications.
• Ability to collect, classify and evaluate data
relating to estimation.
• Ability to be careful, thorough, hard working
and accurate.
Matters to be Taken into Account in Preparing Cost Estimate:
PPR-9
1. A Public Entity shall have to take the following matters
into account in preparing cost estimate of any
procurement:-
Procurement for Single Package or Multiple Package
contract.
Whether the procurement contract requires to be renewed or
not,
41
not,
Other options to procurement, if any,
Maximum time and cost that may require to complete the
work under the procurement contract, and
Any directive issued by PPMO
2. Cost estimate for mobilization and demobilization cost,
insurance, facilities to be provided to the consultant,
quality testing, profession related health and safety as
built drawing, commission cost for performance security
etc including the bid or performance security.
lgdf{0f sfo{sf] nfut cg'dfgM–lgodM!)
lgdf{0f sfo{sf] nfut cg'dfg tof/ ubf{ lgdf{0f ;DaGwL, k"/ftflTjs pTvgg
;DaGwL / ;'?ª vGg], l8k 6o'jj]n, k]6«f]lnod cg';Gwfg cflb h:tf hldgd'lg
ul/g] sfo{sf] gD;{ eP To:tf] gD;{ adf]lhd / To:tf] gD;{ gePsf] cj:yfdf
cfjZos gD;{ tof/ u/L To:tf] gD;{ g]kfn ;/sf/, dlGqkl/ifbaf6 :jLs[t
u/fO{ :jLs[t gD;{ adf]lhd nfut cg'dfg cg';"rL ! sf] 9fFrfdf tof/ ug'{ kg]{
t/ To:tf] gD;{ adf]lhd sfd ub}{ hfFbf vf; sfdsf] nflu vf; ksf/sf] gD;{
424242
t/ To:tf gD; adflhd sfd ub hfbf vf; sfdsf nflu vf; k|sf/sf gD;
cfjZos k/]df ;DalGwt ;fj{hlgs lgsfosf] k|d'vn] To:tf]
lgsfosf] k|fljlwsaf6 / To:tf] k|fljlws geP cGo ;fj{hlgs
lgsfosf ;DalGwt k|fljlwsaf6 cfjZos gD;{ tof/ ug{ nufO{ To:tf] gD;{
ljefuLo k|d'vaf6 :jLs[t u/fpg ;Sg]5 . o;/L :jLs[t ePsf] gD;{ lgdf{0f
Joj;fo ljsf; kl/ifbdf Ps jif{leq k7fpg' kg]{5 .
nfut cg'dfg tof/ ubf{ dfn;fdfg :ynut ?kdf pknAw x'g] jf gx'g]
cWoog u/L lgdf{0f sfo{ ;DkGg ug{ nfUg] ;dofjlw ls6fg ug'{ kg]{5 .