What Other Factors Should Marvin and His Team Consider?
Marvin is the CEO of the agency and he has the duty or responsible for any bids on the contracts. The decision is most important as the firm may have a ten-year long contract and will most probably get different long-term contracts. Marvin and his staff need to consider few things earlier than planning to bid or no bid.
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- Marvin and his group have to calculate the whole expense of the project and must do a price estimate for expertise/resources before bidding.
- Calculate the revenue margin and see if its viable for the given finances (bid amount). And historical past of the client’s outsourcing projects must be thought of for profit-cost evaluation and risk assessments.
- Since Marvin’s firm has some contracts with consumer it would be easy to estimate the price of the project and place a competitive bid.
- A well-defined scope is required as a result of it’s simple to win a project with current group than bidding for a project in a brand new firm.
- Marvin’s firm need to have a long-term strategy that’s consistent with polices and objectives of the firm.
- Marvin’s agency need to have a danger evaluation to identify threat earlier than bidding to the project.
- The agency should contemplate the phrases and conditions/polices and procedures of shopper earlier than bidding. Failing to satisfy these necessities will lead to lack of contract and sometimes even end up in loosing consumer as properly. So, Marvin’s firm need be more cautious while accepting these insurance policies.
- Before bidding agency need to contemplate the time frame, location and measurement of the project and see if it fits in firm’s policies.
- Firm have to verify the fee policies as well because if the agency must fund the project it’d have an effect on firm’s business, capital and assets.
Should They Bid on the Job?
Marvin’s firm should bid on the project because it will assist this company to grow financially and improve their annual turnover. By bidding this project the agency can get recognition and get more projects upon successful completion and get new clients. This will assist to build a robust relationship with the shopper and this may even help the firm to develop in construction and agency could have alternative to rent extra proficient and succesful sources to perform the duties. Firm can avoid conflicts/disagreements with middle vendor company’s by working immediately with client.
- Dixie, J. M. (1974). Competitive bidding — The probability of successful. Omega, 2(3), 415-419.
- Egemen, M., & Mohamed, A. N. (2007). A framework for contractors to reach strategically appropriate bid/no bid and mark-up size choices. Building and Environment, 42(3), 1373-1385