Essays on Tendering and Contracting: Case of Ango-American Coal-Mining Company Case Study

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The paper "Tendering and Contracting: Case of Ango-American Coal-Mining Company" is a brilliant example of a case study on management. The demand for coal has grown steadily and Anglo-American coal mining company has seen the need to move quickly and come up with efficient and effective methods that would increase coal production and quality compared to the current trends. From January 2013, the company has opened up the construction and installation project at the Moranbah mining site. The project team that is assigned to see things done has taken time to release and request for tender.

The documentation is based on standard documents reviewed by in-house counsel (Zitron 2006). The bid team assumes a lot of flexibility in the evaluation process and has settled for a selective tender approach. Generally, underground packages have been issued throughout 2013/14. The tenders have included the installation of conveyor systems, gas drainage, and underground electrical. This discussion revolves around tendering and contracting to encompass the whole process for procuring goods and services. It begins with needs identification and decision on procurement requirements. It will also look at risk assessment, sought out, and evaluated alternative solutions before awarding the contract, delivery, and payment of a contract.

It will also deal with ongoing management of a contract and considerations in the process of the project. 2.0 Background Information To achieve the value for money, it requires a comparative analysis of the costs and benefits for each bid throughout the procurement cycle. Anglo-Americans have taken consideration of many more factors than cost. However, the value for money has been a principal consideration and it has been enhanced by selecting Industry Capability Network that encourages competition having dealt with major contractors for long.

In turn, Anglo-American rely on ICN services to ensure non-discrimination in the tendering process and promote the use of resources in an efficient, effective, and ethical manner. It has its procurement manager attached to ICN to ensure that the decisions made are transparent. 3.0 Рrоjесt Теndеring and Соntrасting From January 2013, available tender processes have been conducted through open tenders. The tenders are publically advertised without restriction on who to tender. Request for tenders, expression of interests, and application for inclusion has been used to reach many contractors and suppliers (Russell, Hancher & Skibniewski 1992).

Anglo-American relied on open tenders since it has never dealt with a quite extensive project in the past the case of the current project in progress. In addition, the project had many facets that have to include a tender at its own time according to the stage and installation requirement. A group of suppliers have been selected throughout 2013 and are still continuing through 2014. The challenges with direct sourcing have been noted.

Mainly, they limit the number of suppliers and limit the evaluation process. Consequently, few suppliers may not offer the best packages and thus there had been a need to have more suppliers and compare them based on standards and set criteria. 3.1 Selection Criteria As Banaitiene & Banaitis (2006) argue, higher expenses and time-consuming trends are involved with formal tender. ICN has been chosen as a reference organization to make sure that the process is undertaken with minimum cost and at the same time offers maximum benefits to prospective companies (Bakker, Walker, Schotanus & Harland 2008).

ICN provides the most structured and competitive process that is effective as they understand what the market has to offer. Its involvement with tendering and contracting offers Anglo-American reach suppliers and present a formal mechanism to have a complete plan, change, and inclusion of other services that are necessary to be arranged between the project owners and suppliers (Watt, Kayis & Willey 2010). In the procurement processes, decisions have been made after consultation with the procurement manager (Rashid, et al 2006).

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