Services Project Management Essay Example | Topics and Well Written Essays - 2250 words

Services Project Management - Essay Example This can also be recognized as a total lack of transparency between the bidders, and that suits the client perfectly. The disadvantage in public projects is the often insufficient perception of potential pitfalls and showstoppers during the procurement process, as interaction and discussion prior to bidding is discouraged. As a result, some public projects fall prey to extensive and numerous design and specification changes, ruining their original time and cost estimates. Such projects are allowed to meander along as all involved tend to keep within the strict purview of their job description within the overall governmental framework, not willing to say or do anything to either rock the boat or to steady it. Such projects are orphaned very quickly, with a chronological propensity towards non-accountability. On the other hand, private sector procurement is made with a firm eye on deliverables, and technical vetting of bidders and a bidding process is less important than the need to get a contractor who will deliver in time to spec. Transparency is variable, especially if the contract is negotiated, as the ability and competence of the contractor is beyond dispute, and educating him about the project adds value. Private sector procurement also goes the open tender route, depending on the most suitable procurement mechanism for the particular project. The strongest case for open tenders is made by case for equal opportunity and enhanced transparency in such procurement, whereas a deeper understanding of the project and a stronger tendency to adapt to change characterizes the negotiated tender, making it popular with the private sector. A solution that offers is a hybrid of both styles of procurement, and works across the board for projects of any scale, complexity and ownership, is the process of procurement that consists of competitive tendering in one or two stage, followed by negotiations with the chosen / lowest bidder. However, such a technique is effective only if the chosen bidder is not aware of his status as the lowest, so as to keep him willing to negotiate. This technique is followed in public as well as private sector projects. Stage 1 is known as technical bid (open tender stage), followed by Commercial bid (negotiation stage). 2.2 The process of procurement is a series of exchanges between the client and the contractor, with an increasingly high level of exactness and clarity on conditions of contract, culminating with the actual execution of the contract. A contract consists of three parts, Offer, acceptance and consideration. Although Estimate, Quote and Tender are terms commonly used, there are distinct differences between the three. An estimate is the contractor's perception of the cost or a particular amount of work, and is approximate. It is prepared after taking a preliminary look at the work that is required to be done. An estimate may be prepared by a contractor or by the client on the basis of the bill of Quantities, to arrive at a rough cost of the project. It is not technical in nature, and is based on