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International Procurement - Learn International Procurement Online
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International Procurement - Learn International Procurement Online
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Purch-lympics Entry #

 

Yvetta Koleva
Senior Purchaser, Bulgaria

Purch-lympics - Online Competition For Purchasing Professionals "Summertime. Its Hot.
The Deadline is only a few weeks away.
The committee comes to inspect the new plant shop, hardly breathing.
Build on a fire-resistance fence. It has to split the surface of the large flat roof, before the inauguration can be held.

And here they come - with a Short Technical Specification, a Bill of Quantities (BOQ) with only the short description of the positions and a Drawing.

The Main Contractor has made a bid, about twice as much as expected. They have been contracted on a corporate level. Experience about the quality of their works, or rather those of their sub-contractors as they like to point out, not positive. Still, works continued, to go live ASAP, vital for the pay-back. Budget is surpassed.

So our goals - get the best price, get works finished within the time-limit and better an approved Contractor. We ask offers from the local companies, working in the region the plant is in; 3 companies are invited to get the inquiry and the technical documentation from the purchasing department along with a short explanation about the works.

Within a week we get their offers, BOQs prices.

One of the Bids is reasonable- a very good price in fact.
The second one is expensive
The third one doesn't want to do the works - too expensive.

One week left to start works.We hold negotiations with the best offer:

-the timeframe
-the execution
-the safety of the roof - people and materials movement
-we discuss the materials - and the price - the key element being a plate, PVDF coated, 6mm thick and pre-shaped

Price is almost 3 times higher, than the 2nd best offer.

We ask for revision of the offer and spend 2 days checking the materials price, directly and indirectly. We contact suppliers directly and check the supplier of the competitor. It takes us five telephone conversations to get faxed the technical specification and discover the cheap material is PVC coating.

We close the deal, making a further 2% savings as a discount for a Lump Sum Contract. Works begin tomorrow. This Contractor meets the deadlines."
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