1 contractor pre-qualification. 2 what is contractors pq? screening construction contractors...

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Contractor Pre-qualification

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What Is Contractors PQ?

Screening construction contractors according to a pre determined set of criteria in order to determine their competence or ability to participate in the project bid.

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Awarding Authorities Should Verify That the Bidder Has: Adequate financial resources,

experience, personnel resources, and equipment to perform the task.

The ability to comply with the required performance and time schedule.

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Benefits of PQ Avoiding overburdened of the

contractor. Elimination limited financial sources

contractors. Only the qualify will stay. Protecting the contactor. Speeding devaluation & awarding

process. Moving from subjectivity to

objectivity.

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Tenders PQEmployer/ Engineer Contractor

Acknowledge Receipt

Analyze PQ data: Company/ Joint venture structure Experience & Resources. Financial & General stability

Select Company/ Joint venture for inclusion in list of Tenderers.

Notify all Contractors/ Joint venture of the list of selected Tenderers.

Invitation to Contractors to Pre-qualify.

Issue and Submission of PQ Documents.

Respond to Questionnaires on Company/ Joint venture

Acknowledge Receipt

Confirm Intention to Submit Valid Tender

Analysis of PQ Data selection & Notification of List of selection

Place PQ Advertisement In Press, Etc. As Appropriate Stating: Employer & Engineer Outline Of Project (Scope, Location, Etc.) Enquiry Issue & Tender Submission Date. Instruction For Applying PQ. Submission Date For Contractor. PQ Data.

Request PQ Documents

Issue PQ instruction & Questionnaire requesting from each company/ Joint venture: Organization and Structure. Experience in Same Type of work. Resources (Managerial, Technical,

labor, etc). Financial Statement

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Contractor Data Sources:

1. Internal: Reports,documents, ..Etc.

2. External: Questionnaire filled by the contractor. Additional sources (banks, suppliers,..Etc). Site visits to currently projects done by the

contractor.

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Typical Questionnaire Includes:

Introduction: a brief description of the project.

Organization: classification and company’s organizational chart.

Financial resources: financial capability of the contractor.

Physical resources: contractor manpower, equipment, …etc.

Experience: contractor experience on similar projects.

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Gather Contractor Data (PQ Questionnaire)

Check Sufficiency & Correctness of Data

Available Data not Sufficient to make a Decision

Available Data Sufficient to make a Decision

Gather More Data

Apply Contractor Data to criteria (Systematic Model)

Decision

Qualify Contractor Reject Contractor

Contractor Informed to Collect Bidding Documents

Inform Rejected Contractors

Contractor Submits a Proposal

Development of Criteria (Questionnaire)

Contractor PQ Process

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PQ Elements 1)LITTER TO CONTRACTORS (invitation) 2)PRE-QUALIFICATION FORM:

A) Information for the contractor: i)Objective and scope of workii)General information

1)Degree of eligibility2)Formation of partnership or joint venture3)Bonding capacity4)Official language5)Supply materials

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PQ Elements Cont..6)Questionnaire submission

7)Beginning and duration of construction

B) PQ questionnaire:

i)Identification of the contractor

ii)Contractor performance

iii)Contractor’s equipment

iv)Construction ability

v)Completion ability

vi)Client relationship

C)Certification and waves

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Contractor Rating Strategies:

A) dimensional weighting strategy:

Contractor SelectionCriteria

WEIGHT

(%) X

Contractor

A B CY X*Y Y X*Y Y X*

Y

Experience in Completion of Project on Schedule.

60 9 5.4

8 4.8 4 2.4

Present Workload & Capability to Support Project

25 6 1.5

7 1.75

7 1.75

Availability of first-Line Supervisors

15 3 0.45

5 0.75

6 0.9

Total Score 100

6.45 7.3 5.05

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Contractor Rating Strategies Cont.. B)two-step pre-qualification: Allow to eliminate unwanted

contractors. Contractor to satisfy selected

screening dimensions. If passes, use DWS with more

specific criteria.

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Project: -------------------- Determining For Weights Evaluation

CRITERIA RAW SCORE

ASSIGNED SCORE

A Experience 6 10 B Equipment 2 3.3 C Financial Resources 1 1.7 D Reputation 2 3.3

B C D A A-2 A-3 A/ D B B/ C B-1 C D-1 D

3- Major Preference. 2- Medium Preference. 1- Minor Preference. 0- No Preference.

Paired Comparison Criteria Weighting:

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Contractor Name: ---------------------- Grade: --------- Address: ---------------------------------

CRITERIA

Wei

ght

5 E

xce

4

V. G

3 G

ood

2 Fa

ir

1 Poo

r

A Experience 10 x 40 B Equipment 3.3 x 16.5 C Financial Resources 1.7 x 5.3 D Reputation 3.3 x 6.6

TOTAL SCORE 68.4

Evaluation Matrix:

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Model Philosophy:

Uses DWS based on multiple-criterion decision-making.

Approach assumptions: Impact for each criterion ( 1unsatisfactory to

10 excellent). Obtain numerical value from PQ

questionnaires. Addition or deletion of decision parameters

have no dependency of model’s parameters.

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CDF (Experience)

DF (Size of Completed Projects)

DF (Type of Completed Projects)

Example of Decision Parameters

Model Philosophy Cont..

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Model Calculation: a. Calculate the mean impact for each DF included in each CDF. b. Calculate the DF weight to each DF from equation: Where: wij = the weight of the DFj associated with the CDFi . DFMIij = the mean impact of the DFj associated with CDFi, zero (no impact) to four (very high impact).

)1.(

1

EqmDFMI

DFMIwij

i

jij

ij

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c . C a lc u la t e t h e m e a n im p a c t f o r t h e C D F f r o m e q u a t io n :

)2.(1 Eqm i

m iDFMI ij

CDFMI ij

W h e r e : C D F M I i= m e a n v a lu e o f C D F .

m i = t h e n u m b e r o f D F s in t h e C D F .

d . C a lc u la t e t h e w e ig h t o f t h e C D F u s in g t h e e q u a t io n :

)3.(

1

Eqn

iCDFMI i

CDFMI iw i

Model Calculation Cont..

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c . F in d t h e a g g r e g a t e s c o r e o f t h e c a n d id a t e c o n t r a c t o r K

u s in g t h e f o l l o w in g e q u a t io n :

)4.(11

Eqm i

jR ijKw ij

n

iw iAWS K

W h e r e : A W S K : a g g r e g a t e w e ig h t e d r a t in g f o r t h e c o n t r a c t o r K .

n = n u m b e r o f C D F s ; m = n u m b e r o f D F s in t h e C D F .

R i j K : s c o r e o f t h e D F j i n t h e C D F i f o r t h e c o n t r a c t o r K o n s c a le o f 1 ( u n s a t i s f a c t o r y ) t o 1 0 ( e x c e l l e n t f o r s p e c i fi c p r o j e c t ) .

Model Calculation Cont..

Example:Contactor A:

CDF(1) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK1Banking Arrangement 2 0.222 3 0.667Bonding Capacity 4 0.444 4 1.778Financial Statement 3 0.333 8 2.667

CDF(2) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK2Success of Completing Projects 3 0.375 4 1.500Size of Completing Projects 2 0.250 3 0.750No of Similar Comletdd Projects 2 0.250 6 1.500Types of Completing Projects 1 0.125 5 0.625

CDF(3) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK3Current Work load Current Work load 3 1 3 0.375 7 7 2.625

AWSK (A)Total = AWSK1+AWSK2+AWSK3 = 5.635

1.9167

5.111

Financial Stability

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3 0.375

Experience 2 0.25 1.0938

73

8 4.375

m i

jR i j Kw i j

1

m i

jD F M I i j

1

m i

jD F M I i j

1

m i

jD F M I i j

1

m i

jR i j Kw i j

1

m i

jR i j Kw i j

1

Example Cont..Contactor B:

CDF(1) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK1Banking Arrangement 2 0.222 5 1.111Bonding Capacity 4 0.444 3 1.333Financial Statement 3 0.333 7 2.333

CDF(2) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK2Success of Completing Projects 3 0.375 3 1.125Size of Completing Projects 2 0.250 5 1.250No of Similar Comletdd Projects 2 0.250 4 1.000Types of Completing Projects 1 0.125 8 1.000

CDF(3) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK3Current Work load Current Work load 3 1 3 0.375 6 6 2.25

AWSK (B)Total = AWSK1+AWSK2+AWSK3 = 5.135

63

8 4.375

Experience 2 0.25 1.0938

1.7917

4.778

Financial Stability

9

3 0.375

m i

jR i j Kw i j

1

m i

jD F M I i j

1

m i

jD F M I i j

1

m i

jD F M I i j

1

m i

jR i j Kw i j

1

m i

jR i j Kw i j

1

Example Cont..Contactor C:

CDF(1) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK1Banking Arrangement 2 0.222 4 0.889Bonding Capacity 4 0.444 8 3.556Financial Statement 3 0.333 6 2.000

CDF(2) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK2Success of Completing Projects 3 0.375 4 1.500Size of Completing Projects 2 0.250 6 1.500No of Similar Comletdd Projects 2 0.250 3 0.750Types of Completing Projects 1 0.125 7 0.875

CDF(3) DF DFMI Wij CDFMIi Wi Rijk Wij*Rijk AWSK3Current Work load Current Work load 3 1 3 0.375 8 8 3

AWSK (C)Total = AWSK1+AWSK2+AWSK3 = 6.573

83

8 4.625

Experience 2 0.25 1.1563

2.4167

6.444

Financial Stability

9

3 0.375

m i

jR i j Kw i j

1

m i

jD F M I i j

1

m i

jD F M I i j

1

m i

jD F M I i j

1

m i

jR i j Kw i j

1

m i

jR i j Kw i j

1

Result: Contractor A has the highest score followed by Contractor C then contractor B.

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Model Advantages:

Simple and understandable. Provides a systematic approach for

all candidate evaluation. The calculated aggregate weighted

score for each contractor provides a basis for comparison.