Sales in engineering through tenders and competitions, Comparative...

Sales in engineering through tenders and competitions

Comparative analysis of tender and competitive procedures

Sales in the implementation of engineering projects is a key. The specificity of marketing engineering projects is sales only through a tender or tender. Based on the regulatory requirements established by the customer, all other elements will be formed.

If we are talking about the purchase of an engineering project by a firm, the term "tender", which is an analogue of the United States concept "contest", is most often used.

From Art. 447 of the US Civil Code, we can conclude that the competition - a way to conclude a contract by choosing the person who offered the best conditions.

Currently, tenders are the main form of regulated purchases in the United States, but they are legally binding only for state, municipal structures and budget organizations.

If we talk about the implementation of procurement activities between legal entities, commercial organizations, then use the concept of "tender."

The tender provides more advantages and opportunities for effective business processes. If the competition is regulated art. 447-449 of the US Civil Code and Federal Law No. 44-FZ of April 5, 2013, then the tender does not have any administrative binding to the law, but firms that organize tenders, build contracts on the basis of the same articles as the tenders.

In today's business, there is practically no difference between the tender and the competition, since in the latter, despite the strict regulation, the participants actively learn from the customer of his requirements and wishes using the method of personal sales, thus by the time of the competition all participants set the price for its engineering projects, already agreed with the customer, which by definition of the competition is prohibited.

Tender is a competitive purchase, which is a way of concluding a contract for the supply of goods (engineering project, provision of services), in which the customer (the tender organizer) determines in advance:

• the main characteristics and requirements for the delivered goods;

• the main characteristics and requirements for the work performed, the service provided;

• the main terms of the future contract;

• order of organization and holding of the tender;

• the procedure for filing and requirements for tender proposals;

• procedure for reviewing, comparing and evaluating supplier proposals;

• criteria for comparison and selection of suppliers;

• the order of choosing the winner.

The main purpose of the tender is to conclude an engineering contract for the project with the person who offered the best conditions for the temporary, financial and other criteria. The goal is achieved by attracting a large number of possible competitors, resulting in a sharp increase in competition among them.

Tender is the most effective way of purchasing, which, besides the main one, achieves other goals:

• protects the customer from irresponsible and unreasonable offers;

• Improves the transparency of the procurement conducted;

• gives you the opportunity to refine the terms of use with the supplier;

• In contrast to the competition, theoretically should reduce corruption.

A comparative analysis of the tender and tender is presented in Table. 9.7.

Table 9.7

Comparative analysis of tender and competition

Tender

Competition

The concept of tender in the United States legislation there, so the procedure for its conduct is not regulated by any legal acts. The tender is regulated by an internal set of rules fixed in procurement practice

The competition is regulated by Art. 447-449 of the US Civil Code and Federal Law No. 44-FZ of April 5, 2013

The tender is accompanied by additional competitive procedures that occur after the opening of envelopes with commercial offers. This procedure gives the maximum economic effect for the organizer of the tender

When holding a contest, the decision on the winner is made on the basis of a comparison of bids. No significant changes in the application are allowed, even if the participant is interested in changing the terms of the application

The choice of the winner is at the discretion of the tender committee, with no obligation to choose the winner

Determination of the winner is mandatory

The tender is declared less formally, as there are no regulatory procedures, in any media, often on the corporate site, maybe even a simple announcement by phone

The competition is officially announced, in a special notice in the media. The procedure is defined in legislative acts

There is no strict time schedule for the tender

The timing of the contest is clearly indicated in the notice of the tender, so the date of opening the envelope, the choice of the winner and the conclusion of a contract with him are known in advance. At least 30 days from the date of publication of the notice

Advantages of the supplier for winning the tender

In a situation of tender organization, the criteria for selecting a supplier can be conditionally divided into basic and additional. Among the basic selection criteria are those indicators on the basis of which companies will be considered as the main contenders for the victory. To win the competition, compliance with the basic criteria is a necessary, but insufficient condition. Additional criteria for selection include the range of services offered by the provider, which, with other things being equal to the basic criteria of the main pool company, will receive additional benefits.

Example

Basic and additional criteria of competitiveness for the supplier when implementing an engineering project for laying cable lines are given in Table. 9.8.

Table 9.8

Example of basic and additional criteria for winning a tender

Basic criteria for participation in the tender

1. Quality of cable products (cable and fittings).

1.1. Conformity of cable products with the technical requirements of the energy company.

1.2. Reliability of cable products in operation.

2. Price.

3. The lead time for orders (can go to the first place).

4. Warranty, warranty duration

Additional criteria for winning a tender

1. Service supervision.

2. Valve supply service.

3. The installation of a cable line.

4. Cable line design service.

5. Training in laying and operating the manufacturer's cable.

6. Availability of innovative non-standardized engineering services

Engineering firms are closely competing with each other, so determining the winner of a tender is sometimes a very difficult task, because in modern conditions, customers look at the quality of the whole project and the complex of engineering services provided by the firm. Non-standardized engineering services can become a competitive advantage.

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