How do you increase the price of the contract, assuming the change order varies the price? Suggest it's via a contract amendment. But, however you do it make sure it's legally enforceable!
from the similar situations, we have used change orders, what matters is here what is the object of change - increase in assigned resources, increase in delivery method,increase in delivery schedule, increase in scope of work. When the impact is on Resource/related service and requirements - we use change forms to update/prolong the current Statement of work. For me by nature Project Managers - they have the same work to follow-up on a Project timeline, budget, Scope - so to be assigned to a new project, it still for me sounds like to stay in the same role, only managing another project (with another timeline, resources, budget constrains).
Jack - a vehicle purchase will usually fall under either a category strategy and/or procurement process, leaving the decision to strategy and process rather than preference. If you are purchasing one vehicle, that acquisition might bring the transaction under the threshold of strategy/process guidelines, but that is rare. Please consider the total cost of ownership (TCO) of the acquisition, rather than simply the purchase price, as vehicles represent significant opportunities for overall cost savings.
• Forsythe and Long Engineering, Inc.
Usually evaluations are broken into two separate categories which are technical and commercial. There are usually team members that are specialized in certain areas that will review the Proposal for different requirements. (ie. the contract specialist may review the commercial portion of the proposal such as pricing and breakdowns. The Engineering team may review the technical side to ensure the Contractor has quoted all items within spec and has also included all items.) Are your RFP's for Lump Sum, T&M or Unit prices?
It is hard to share a general answer for this topic. It depends very much of the type of work, country and sector the customer is operating in. In the Netherlands "Best Value Procurement" is growing at Public companies. In many books are the techniques and processes described. For software development the understanding of function point analysis might help to understand the scoring of building software. And further are most evaluation processes described in the RFP.
I agree with your two respondents. My experience, and we consider this to be a best practice, is to do the technical evaluation first, separate from the commercial. This allows an unbiased review without people thinking about price or the price of their favorite vendor. Technical normally involves components like: HSE/Safety, technical capability, capacity, experience, past performance/recommendations, plant load, and possibly the personnel and their individual experience offered up to the project.
If you use the technical to create a weighting then the commercial evaluation can be weighted by the technical to determine the winner. This means a less technically efficient company would need to have a substantially better price than a more technically efficient one.
Examples of this kind of weighting I believe are listed in the IACCM's large Contracts reference manual.
• Forsythe and Long Engineering, Inc.
I also agree with the responses that have been provided in lieu of my initial response. I think it is a good practice to conduct the technical evaluation before the commercial. However, some of the technical evaluation can be conducted during the prequalification process. This may include capacity, safety, insurance, personnel, etc. If the contractor passes this stage and submits a proposal then the award may only be subject to technical requirements such as submitted equipment manufacturers, product types, and very project specific requirements. The commercial evaluation will remain the same.
I think the most likely answer is that it will be based on timing - so subsequent agreements may amend the original. However, that also depends on what the core agreement - eg MSA - says regarding the amendment process - for example, does any amendment require formal acceptance? If so, are subsequent documents signed or unsigned? Is acceptance deemed as a result of supply or acceptance?
The Brexit scenario, coupled with COVID-19 are indeed leading to extended negotiating periods.
Given that Brexit will not be finalised for some time, the only practical way to deal with this would be to include provisions for a process to agree changes to customs duties / tariffs / excises etc. in your contracts.
Phyllis we are delighted to know that you enjoyed Rod and Melissa's webinar. I hope that you are also enjoying the first of IACCM's TASK Topics which is all about Remote Work Environment and Balance. There are lots of resources available, podcasts and talks with people sharing their stories and expertise as well as training programs and coaching opportunities to help our members navigate their way through the coming months as we emerge from the immediate crisis.www.iaccm.com/task/remote-work-environment-balance/
Hi Steve, thank you for your question. Pricing trends for major equipment are not something we specialize in unfortunately and in the current circumstances, the answer would, I believe, vary enormously depending on the nature, type, and location of the acquisition.
• GMR Energy LImited
Believe there is no ready made global data base as of now. Each countries Govt. publishes data on whole sale price index/producer price index/purchasers price index( nomenclature varies) on each and every category of product including machinery, equipment etc. year on year and month on month. These data is generally publicly available and can be accessed and down loaded.
For example - there is Bureau of Labour Statistics in USA which pubishes all such data for the products manufactured in USA. In India its published in a bulletin every month by the central bank i.e Reserve Bank of India
Great question. You have certainly come to the right place for some expert advice. I hope others jump in as well. You can find an array of resources at your fingertips (including case studies).. if you go into the resource library (Resources > Resource Library) and search by category = Negotiation. I would particularly recommend:
IACCM Dubai Member Meeting April 2019 Presentations
Ask The Expert: Negotiating and Contracting in the Middle East
The Power of Intent Workshop - IACCM APAC Conference 2019
Do Procurement practices cause dishonesty?
Negotiating in a time of coronavirus
In Negotiations, Givers Are Smarter Than Takers
In addition, you may wish to consider our new Managing Contracts Virtually training program (which is currently included as a member benefit) .. Training > Managing Contracts Virtually.
If you need help accessing any of these materials, please contact me at firstname.lastname@example.org.
Greetings, thanks for the question. I look forward to the responses from other practitioners in this space too. In the meantime, I suggest you take a look at our contract standards clause library here: www.contractstandards.com/public/contracts/statement-of-work. While this provides a framework, the key is in the level of detail that you apply to the "Supplier Tasks and Responsibilities" section - the detail required is application-specific, so there are no hard and fast rules. I have used detailed project plans and, in some instances, references to operational collateral (handbooks, processes, and procedures, referenced but not included) to get to the level of detail necessary to define what is required. This works fine for transactional engagements but cannot cope with more complex requirements - where there is uncertainty in delivery or deliverable (or both!). Then, you'll need an agile approach to the SOW. Hope that helps.