Gig City Harbor - Essay Example

Project Budgeting and Vendor Selection Category Item Estimated Cost MATERIALS Cement 250,000 sand 100,000 Gravel 150,000Pipes 90,000LABORProject manager55,000Engineers80,000security30,000surveyors12,000SUPPLIESBottled water7,000food95,000CONTINGENCYMedical services40,000Accommodation90,000TOTAL COST 904,000RequirementsContract and Procurement MethodsThe main contract and procurement method that shall apply in this project is the Competitive method, including RFI and RFP. Based on the complexity and the value of the materials needed to construct a modern swimming pool, the Best Value Procurement Method that shall be employed by the contractor is Tendering.

It is also in the public interest to use Tendering since it is quite competitive and allows public solicitation through advertisement. Tenders shall therefore be invited for the supply of the aforementioned goods. The tendering shall be open to any potential supplier. The selection of the potential suppliers shall be undertaken through the RFP. The selection committee shall list all the bidders and qualify them on a transparent criterion. All the eligible bidders shall be shortlisted. The selected bidders shall be the ones that have shown the ability to execute their duties in ways that meet the requirements of the project and are also financially stable.

Vendor SelectionThe project team shall only use the RFP in selecting vendors. The RFP method allows the contractor to receive a variety of customized strategies in developing the project, thus, has a large pool from which to select a suitable vendor. Under the RFP method of vendor selection, the following procedure shall be strictly followed: BiddingThe potential bidders shall be selected through a variety of sources. These include: Gig Harbor Approved Supplier, Vendor, Contractor ListsContractor supplier information systemThe Blue Book for Construction supplier Initiated ContactsGlobal Agreement ListContractor ExperienceEvaluationThe selection committee shall list all the bidders and qualify them on a transparent criterion.

Evaluation of the shortlisted vendors shall follow the below criterion: The ability of the vendor to bid competitively presence of the bidder in the Gig Harbor areaThe technical capability of the vendor to supply the specific goods and services availability of the code certificatesSatisfactory financial stabilityPast and current performance of the vendor, including audits and inspectionsSafety records Compatibility of the services with the project at Gig HarborThe Commercial Terms and Conditions of the vendor/supplierAwardThe purchase orders and the relevant subcontracts shall only be awarded to the vendors and suppliers whose proposals have shown technical and commercial responsiveness to the bid documents following the criteria above.

Budget Planning and Risk ManagementThe budget planning for this project has been closely linked with Risk Management. Some of the risks, foreseen in the project include sign-off delays by the Gig Harbor City Council and the Tax Committee, a situation which may also delay the project take-off. This risk has been covered by the provision of extra working days. Other risks involve injury to the workers. The contingency budgetary allowances have been covered for this by providing medical services fees.