1.1

Obtain a record of all agreements and discussions held with the client prior to receipt of the enquiry.

1.2

List the business objectives for the proposed tender or proposal in terms of what your company wants to get out of the project.

1.3

Develop the strategy for the performance of the work, highlighting any unusual aspects:

1. Description of facilities, location, and preliminary capital cost estimate.
2. Scope of services and preliminary estimate of their costs.
3. Anticipated project programme and man hour estimate. Suggest improvements.
4. Tender/proposal submission date.
5. Client background, contact details, and any previous tenders.
6. Competitive position and probability of award.
7. Type of contract.
8. What is the contracting position, and what are your responsibilities? Are you the main contractor, the sole contractor, or a subcontractor? Will you need to form a joint venture?
9. What are the technical or commercial risks, liabilities, or guarantees?
10. Are there any exceptions or deviations from the enquiry document?
11. Suggest innovations, alternatives, and improvements in general.

1.4

List the client objectives, that is, what they want to hear from you.

1.5

Identify the proposal theme and selling strategy for winning the work. Identify any special emphasis, innovative ideas, alternatives, deviations, or exceptions.

1.6

Write the executive summary and use it as a briefing document for the various groups contributing to the proposal. (See Part VI, Section L Report Writing, paragraph 5.1).

1.7

Arrange and conduct the proposal or tender kick‐off meeting:

1. Invitees
2. Agenda
3. Work location
4. Assign team tasks
5. Priority input required
6. Get buy‐in to the budget and schedule
7. Get commitment to winning the work
8. Target date for management review

2.1

Decide on the contents of the tender or proposal, and start a dummy book in which to insert completed sections.

2.2

Order covers with the client's name and logo together with project name and your company's name (depending on the style of the manual, this is often on the critical path). Order file dividers.

2.3

Prepare a comprehensive product and work breakdown structure for both:

1. The tender or proposal
2. The project

2.4

From the results of 2.5, compile a thorough and accurate list of deliverables required for both 2.3 a and b.

2.5

Ensure that an accurate and realistic scope of work and services is produced, including all the technical services required.

2.6

Perform a thorough risk analysis with the proposal team. Use the product breakdown structure to carry out the risk analysis and create a risk breakdown structure (see Part V, Section M Risk and Risk List). Clearly list and evaluate all risks (be realistic and do not let people delude themselves that it will be all right when the time comes). Evaluate the risks that can be avoided and controlled. Develop mechanisms and plans for handling the risks. Consider how to address some of the issues in the tender document.

2.7

Prepare the proposed project execution plan, with an emphasis on selling your ideas, bearing in mind that you will have to live with your plan(s) (see Part IV Section C, Getting Organized, Subsection 5), including:

1. A programme – schedule.
2. A mobilisation plan.
3. An organization structure.
4. Identify the skills required for the project team.
5. Description of the project scope supported by the product breakdown structure (paragraph 2.3 b).
6. Execution plans for engineering design and procurement supported by the work breakdown structure. Identify risks, problems, or areas of difficulty and the proposed solutions.
7. Decide on the use of consultants or partners.
8. Identify the fabrication strategy – piece small, pre‐assembly, or modularisation.
9. Identify the construction strategy – direct hire or subcontract.
10. Works testing and vendor commissioning.
11. Full load performance testing. Resources and sequence for setting to work/commissioning.
12. Acceptance criteria and handover.
13. Spares policy.

2.8

Prepare a quality assurance plan.

2.9

Prepare safety and environment procedures and plans.

2.10

Prepare a medical plan for remote locations.

2.11

Delegate the tasks and deadlines for each discipline to provide input for the tender/proposal. Be strict so as to avoid last‐minute panics.

2.12

List all necessary permits, regulations, and local and national laws that could affect the project.

2.13

Ensure the design team passes accurate data to procurement for pricing and delivery information (if it is only a guess, make them say so).

2.14

Obtain an assessment of the industrial relations situation and potential labour problems.

2.15

Survey the local labour availability for manual, technical, and clerical personnel.

2.16

Check whether any special labour agreements or restrictions are in operation.

2.17

Identify those risks that must be covered by insurance and how much they will cost.

2.18

Determine the overall project liabilities.

2.19

Develop a costing/pricing system for:

1. Data processing
2. Reproduction
3. Communications
4. Records management
5. Computer‐Aided Design
6. Control systems

(These items could be a useful source of extra revenue.)

2.20

Develop a project staffing plan.

2.21

Review CVs of proposed key personnel (remember you will only be as good as your team). See Part V, Section Q, subsection 1, for selecting the team.

2.22

Ensure that design, procurement, and fabrication/construction data are provided to the estimating and cost and scheduling departments.

2.23

Review and approve construction scope, organization, schedules, budgets, manpower, equipment, and labour conditions.

2.24

Include testing tolerances and get them agreed by the commissioning people.

2.25

Review and approve project estimates, schedules, and planning data.

2.26

List all technical and commercial exceptions to the enquiry.

2.27

Look for areas of probable/possible future work associated with the project and evaluate the potential extra margin – but be realistic.

2.28

Review and coordinate the input from each group.

2.29

Establish and monitor for the tender/proposal: man hours, cost and schedule, reporting and control systems. Do not overspend to such an extent that it invalidates the decision to submit a tender (see paragraph 1.2.1 above). It is, nevertheless, very difficult to control proposal costs due to time pressure and the focus on being successful.

2.30

Ensure that the tender or proposal is completed on time for the due date. Do not forget to allow time for delivering the tender!

3.1

Establish the degree of involvement of other organizations:

1. Partners
2. Joint venture companies
3. Consultants
4. Specialist contractors
5. Specialist vendors
6. Proprietary process owners

3.2

Determine and define the exact split of work between each entity.

3.3

Ensure that all parties are aware of the input they must provide for the tender or proposal and when their input is due.

3.4

Ensure, by involving their top management if necessary, that you have their total commitment to the job.

3.5

Negotiate and agree the split of liabilities, ensuring that the other party accept their equitable share.

4.1

Obtain a list of all client personnel involved with the project. Make contact and establish a good working relationship with each of them.

4.2

Arrange and schedule tender or proposal clarification meeting(s) and invite participants.

4.3

Arrange and schedule visits to the project location and invite participants. This is an opportunity for the team to build relationships with their opposite numbers.

4.4

Develop a public‐relations strategy in conjunction with the client.

5.1

Arrange tender (bid) bonds, lines of credit, and bank guarantees. The enquiry might say: “The tenderers shall enclose a bank guarantee/participation bond, which must not amount to less than 3 per cent of the total value of the tender.”⁷

5.2

Review the proposed payment terms, advance payments, fee retention, payment currencies, letters of credit, and cash flow. Make sure that you are not going to be financing the client. The cost of money can make a significant difference to the profit/margin.

5.3

Identify any specific requirements from project loans or financing conditions.

5.4

Check whether the client requires financing.

5.5

If finance is required, develop a financing plan in conjunction with banks and funding agencies.

5.6

Identify the main contract liabilities. Can they be mitigated in subcontract and purchase order contract clauses?

5.7

List all possible costs, such as taxes, duties, insurances, royalties, and licensing.

5.8

Develop a tax strategy and currency plan.

5.9

Develop a pay and benefits plan for the project location and review:

1. Hourly rates
2. Additives
3. Other payroll related costs
4. Fee/margin

5.10

Develop a project cash flow requirement.

5.11

Identify any local content requirements.

5.12

Consider qualifying your tender. Then during negotiations eliminate the qualifications and consequently, reduce the price in order to get the job. However, too many qualifications may not get you to the negotiating table.

6.1

Compare this tender or proposal with previous similar projects in order to highlight any unusual or restrictive conditions.

6.2

Review the text of the whole document(s) to ensure that the style is uniform. Does it sound as though the client project team had written it themselves?

6.3

Make sure that illustrations support the text and vice versa and that they can be easily compared with each other.

6.4

A consistent complaint of all project personnel is that the front‐end people, trying to win a contract, make promises that certain things are possible and objectives realized, when in reality they may not be achievable.

6.5

Schedule, invite participants, and conduct tender and proposal review meetings:

1. Technical
2. Legal
3. Commercial

Conduct fully detailed reviews and ensure all departments are in full agreement and have them commit to their agreement in writing.

6.6

Schedule review(s) with management. Make sure that they receive all the appropriate documents in adequate time before the meeting is scheduled.

6.7

Carry out a detailed review with management and ensure that they are fully aware of:

1. The scope of services
2. The contract terms (and conditions)
3. The risks
4. The potential profit/margin

Remember, management will not have had time to look at the documents in detail, so it is up to you to point out all potential problems.

6.8

If management cut the costs or schedule in order to win the work, ensure you have it in writing, but it might still be your fault!

7.1

Have an expert, knowledgeable proof reader read the tender or proposal.

7.2

Develop a negotiating strategy, including how much you are willing to concede to get the job (but remember you should never give something away without getting something in return).

8.1

Continue working on the tender/proposal in order to find any mistakes and risks. These can then be resolved or eliminated during the negotiations.

8.2

Assist the sales or business development department in presenting the tender/proposal to the client.

8.3

Ensure that accurate records are kept of all aspects of the negotiations. However, you may not be present during the negotiation. You need to be available in a back room to give advice and be kept up to date with what the sales people are doing. This prevents you, the project manager, being tarnished with any ill will that may be generated during this process.

8.4

The closer you get to winning the contract, the more you will want it. Thus if, during the negotiations, concessions are made (that is, to cut the cost or schedule) ensure that management is informed and that they agree. Get their agreement in writing.

9.1

Presenting a tender or proposal to a client is likely to involve at least five people covering the main disciplines. For any technological project, there will be project management, project controls, design engineering, procurement, and construction. There may also be other experts involved such as safety, industrial relations, commissioning, specialist designers, or shipping co‐ordinators. How many of these will depend on the nature of the client's enquiry. Fortunately, the client is most likely to identify who they want to see and what topics they would like included in the presentation. Nonetheless, brief the others just in case the client decides to test you.

9.2

Firm up a running order. Nevertheless, be prepared to change it. A sophisticated client is most likely to ask for changes to the agenda that they sent to you, in order to see how well you can cope with changes.

9.3

The project manager has two roles: to define and manage the strategic plan or agenda for the whole group and to prepare and deliver their own presentation as part of the overall event.

9.4

Your objective is to convince the client that you can provide the client with the greatest confidence that they have chosen the lowest risk combination of technical and project execution proposals and contractual and commercial terms.

9.5

Everyone involved is not just demonstrating how good they are at making presentations, but selling themselves as an excellent manager in their proposed role. In addition, and most important, the team needs to come over as a team and support each other when a member is in difficulty (see 9.18 below).

9.6

The team presentation will require all formats (outlined in Part VI, Section G). You will need to explain how you propose to manage the project (subsection 2). You will need to persuade the client that you have the best possible execution plan (subsection 3) and you will need to express your point of view concerning details of the design (subsection 4).

9.7

Identify an overall theme for the presentation.

9.8

Demonstrate that the company wants the work right from the start, by arranging for the chief executive to introduce the whole process. After the brief introduction, they should leave the room. Do not let them be cornered into answering questions.

9.9

In a presentation of this nature, it is essential to have name badges and name place cards. It helps the client to remember who you are.

9.10

One of the first logistic issues to be addressed is how to hand over from one speaker to the next. Does the first speaker say “I will now hand over to Fred (or Fred Smith?), the procurement manager”, and/or does the next speaker say, “Good morning, I am Fred Smith, the procurement manager?”

Perhaps the following works: “I will now hand over to Fred Smith” and the next person says, “Good morning, I am Fred. I will be the procurement manager.”

9.11

Brief senior management to be available during the lunch break. Arrange for someone to update them with what has transpired during the presentation and highlight any issues that need massaging.

9.12

Insist on rigorous time keeping from all presenters.

9.13

With so many individual presentations and a client that will interrupt or ask questions, you are almost bound to have timing problems. Therefore, it is essential to have identified one or two portions that can be omitted.

9.14

If you are using an experienced senior executive from another part of your company, they will need very firm control by the project manager. Despite this, their ego will probably make them seriously overrun their allocated time. In which case, you will be using your entire drop‐out contingency plan.

9.15

There are specific points that you want to make with your presentation; therefore, if you leave something out, you will need to quickly summarise them. Write them up on a flip chart. This also applies to any area where the client challenges you by saying “I don't think we need to go into that.” You will need to respond with: “I just wanted to make the point that a, b and c …”

9.16

Eliminate areas of overlapping content.

9.17

Emphasize that team members must look interested in the speaker – no matter how many times they have heard it in rehearsals.

9.18

The project manager should take the responsibility of accepting all questions and then allocating them to a particular member of the team to answer. If a team member is in difficulty, and someone else knows the answer, they should look at the project manager and say, “Perhaps I can help with my experience of …”

9.19

This type of presentation needs additional team rehearsals in addition to the individual preparation. Use a red team review process. Find two, or preferably three, experienced colleagues who know little about the project to act as the client. Provide them with the enquiry and proposal documents one or two days beforehand, and then do a full scale dress rehearsal. Get the red team to behave like a client. Get them to ask every awkward question that they can think of. Get them to be difficult and act bored/silent as well as hostile. Be prepared for the client questions below; see subsection 10.

9.20

With a proposal/tender presentation, the client is almost certain to want to interview people other than the presenters. Make sure that you have briefed these key team members (who may not have been involved in preparing the proposal) with the main aspects of the project. Just in case, brief more than one person from each discipline in order to demonstrate experience in depth.

9.21

Make sure that car parking has been organized for your visiting client. Brief the doorman to let you know immediately the client arrives.

10.1

General: “Is your tender fully compliant with the enquiry document?”

10.2

Chief Executive/MD: “Are you willing to accept the XYZ risk under discussion?”

10.3

Project Manager:

1. “What are your best/most valuable attributes as a project manager?”
2. “What makes you think that you are a good project manager?”
3. “What is your project management philosophy?”
4. “What methodology do you use?”

10.4

Procurement:

1. “Engineering defines the scope, construction determines the delivery, the enquiry cycle is fixed, the client and team define the tender list, so what does procurement bring to the party?”
2. “Do you subscribe to First Point Assessment (or other relevant industry body)?”
3. “Procurement produces many reports; which is the most useful?”

10.5

Engineering/Design:

1. “Don't you think that it is most sensible for engineering to do the purchasing of materials and equipment and then go to the site to supervise the installation of equipment?”
2. “As a designer, designing to a budget, what are the dilemmas in choosing the right materials?”
3. “How do you reconcile the conflict between the functional parameters (the manufacturer's interest), schedule and cost requirements (the contractor's interest), and the operating costs (the user's prime interest)”?

10.6

Construction:

1. “If you are working on another project, how do you provide the necessary constructability input to engineering?”
2. “As a U.S. company, it is our view that there is no such animal as a British construction manager. What are your views?”
3. “What is the role of the project manager during construction?”
4. “Should the project manager be on site during construction, and if so, when should they move to site?”