The Selection and Management of Contractors

Organization: The Australasian Institute of Mining and Metallurgy
Pages: 6
Publication Date: Jan 1, 1990
The mining industry in Australia frequently uses the services of specialist engineering and managing contractors and consultants for a majority of the work required for project development, from feasibility studies to project commissioning. The project owner's prime objectives are to achieve predictability and competitive advantage for their project. As the majority of this work will be carried out by contractors, the effective evaluation, selection and management of these contractors in the most appropriate forms of contracts is an essential ingredient to project success. The first stage to project development should be for the owner to examine its own resources to establish the role that it will fill and thereby identify the role and scope of contractors' involvement. Once the owner has developed this work plan, the selection of contractors and consultants should be structured to ensure that the owner acquires the appropriate expertise and experience to achieve its project objectives. The sequence of selection procedures is: 1. Pre-qualification of prospective contractors according to the owner's adopted criteria, through the use of a pre-qualification questionnaire. 2. Evaluation by the owner tender board according to predetermined mandatory criteria. 3. Preparation of tender documents for submission to qualified contractors. 4. Evaluation of tender submissions by the owner tender board using a pre-determined, weighted matrix of technical and commercial criteria. 5. Final selection and contract negotiation.
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