CE4833-

Construction
Management
Fall Semester
Credit Hours : 3

DR. MARIA GHUFRAN

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 Scope Management

Defining project scope

Contents
Covered
Pre-Qualification process

Bidding process

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Scope Management
Project Scope Management includes the processes required to ensure that the project includes all
– and only the – work needed for its successful completion. In other words, scope management
asks what is included in the project.

Completion of the project scope is measured against the project management plan where the
requirements and specifications of the project output are given.

Processes covered under Project Scope Management are Collect Requirements, Define Scope,
Create WBS, Verify Scope & Control Scope.

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Project Scope
◦ It is the part of project planning which involves the determining and
documenting of a list of project specific
◦ goals
◦ deliverables
◦ features
◦ functions
◦ Tasks
◦ deadlines
◦ ultimately costs

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 Project Scope
In other words, it details what works needs to be done/ performed to achieve and deliver a project.

This process involves the preparation of a detailed description of the project and its major

deliverables.

The scope clearly states what the project is supposed to achieve and what it cannot accomplish.

The supporting documents are reviewed to ensure that the project will deliver work in line with the

stated goals.

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 Project Scope Statement
A project scope statement is a written document that includes all the

required information for producing the project deliverables.

The project scope statement helps the project team remain focused and

on task.

The scope statement also provides the project team leader or facilitator

with guidelines for making decisions about change requests during the

project.

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 Project Scope Statement
The project scope statement also establishes what is not included in

initiatives, either implicitly or explicitly.

Objectives and tasks not listed in the project scope statement should

be considered out of scope.

It is natural for parts of a large project to change along the way, so the

better the project has been scoped at the beginning, the better the

project team will be able to manage change.

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How to define Project Scope
This process involves the preparation of
a detailed description of the project
its major deliverables.
The scope clearly states what
the project is supposed to achieve
what it cannot accomplish.
The supporting documents are reviewed to ensure that
the project will deliver work in line with the stated goals.
The requirement statements
the stakeholders’ needs
communicates expectations for project performance.

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How to define Project Scope
◦ Defining project scope requires

◦ input from the project stakeholders who together with

project managers establish the key elements of

◦ budget
◦ objectives
◦ quality
◦ timeline.

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How to define Project Scope
◦ To define a project scope, you must first identify the
following:
◦ Project objectives
◦ Goals
◦ Phases and Sub-phases
◦ Tasks
◦ Resources
◦ Budget
◦ Schedule

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Key processes to follow to define scope correctly

◦ Define the Project Requirements

◦ Define the Process Requirements
◦ Conduct Stake holder analysis
◦ Identify the limitations
◦ Identify Change Management Process

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Key processes to follow to define scope correctly
◦ Scope Management
◦ Refers to the set of processes that ensure a project’s scope is accurately defined and mapped.
◦ Purpose of Scope Management
◦ Scope Management techniques enable project managers and supervisors to allocate just the
right amount of work necessary to successfully complete a project

◦ It is concerned primarily with controlling what is and what is not part of the project’s scope.

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Key processes to follow to define scope correctly
◦ The purpose of Scope Management is to ensure the project includes all the work required,
and only the work required, for completing the project successfully.

◦ In scope management the emphasis is on identifying and controlling what is or is not

included in the project.

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Key processes to follow to define scope correctly
Processes involved in Project Scope Management
◦ There are three processes of Project Scope Management: planning, controlling, and closing.
◦ Planning
◦ The planning process is when an attempt is made to capture and define the work that needs
to be done.

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Key processes to follow to define scope correctly
Processes involved in Project Scope Management
◦ Controlling
◦ The controlling and monitoring processes focus on documenting tracking, scope creep,
tracking, and disapproving/approving project changes.

◦ Closing
◦ The final process, closing includes an audit of the project deliverables and an assessment of
the outcomes against the original plan.

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Key processes to follow to define scope correctly

◦ It is the process by which contractors are screened and evaluated for inclusion in bid requests for a project.
◦ It is an assessment process that determines a contractor’s
◦ capability
◦ capacity
◦ resources
◦ management processes
◦ performance.
◦ Pre-qualification is an assessment made by the Employer, of the appropriate level of experience and capacity
of firms expressing interest in undertaking a particular contract, before inviting them to bid.

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Key processes to follow to define scope correctly
◦ Typical areas of concern may include
◦ financial capacity
◦ work history
◦ licensing and qualifications
◦ management
◦ Quality record
◦ Safety record
◦ environmental performance
◦ Prequalification laws are set at the state level

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Implementation in Pakistan
According to PEC ,

◦ Pre-qualification is an assessment made by the Employer, of the appropriate level of

experience and capacity of firms expressing interest in undertaking a particular contract,
before inviting them to bid.

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Pre-Qualification Process

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Pre-qualification process
The pre-qualification process is a procedure used by organizations to assess the capability,

reliability, and suitability of potential suppliers, contractors, or vendors before inviting them to

participate in a formal tender or bidding process. It ensures that only qualified entities are

considered, reducing the risk of selecting unqualified parties that may fail to deliver on a project.

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Pre-qualification Process
1. Invitation to Prequalification
2. Instructions to Applicants
i. Submission of Application
ii. Qualification Criteria
 General
 General experience
 Personal capabilities
 Equipment capabilities
 Financial position
iii. Joint Venture (JV
iv. Conflict of Interest
v. Updating Prequalification Information
vi. Other Factors .
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Pre-qualification Process
3. Evaluation Criteria
4. Forms
i. General Information
ii. General Experience Record
iii. Joint Venture Summary
iv. Particular Experience Record
v. Details of Contracts of Similar Nature and Complexity
vi. Summary Sheet: Current Contract Commitments /Works in Progress .
vii. Personnel Capabilities
viii. Equipment Capabilities
ix. Financial Capability
x. Litigation History

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Pre-qualification Process

Qualification Criteria
 General

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Pre-qualification Process
Qualification Criteria
 General Experience

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 Pre-qualification Process

2. Qualification Criteria
 Personal Capabilities

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 Pre-qualification Process
Qualification Criteria
 Equipment Capabilities

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 Pre-qualification Process
Qualification Criteria
 Financial Position

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Pre-qualification Process
Qualification Criteria
 Conflict of Interest

The Applicant (including all members of a JV) must not be associated, nor
have been associated in the past, with the consultant or any other entity that has prepared the
design, specifications, and other prequalification and bidding
documents for the project, or was proposed as Engineer for the contract, over
the last five years. Any such association may result in disqualification of the
Applicant.

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Pre-qualification Process
Qualification Criteria
 Other factors
 Only firms and JVs that have been prequalified under this procedure shall be invited to
bid.
 The Employer reserves the right to:
 Amend the scope and value of any contract(s) to be bid
 Reject or accept any application
 Cancel the prequalification process and reject all applications.
 Applicants will be informed in writing by fax or mail within _________________ [
Number of days to vary between 42-84 days i.e. the time required to complete
prequalification process ] days of the date for submission of applications

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 Pre-qualification Process
◦ Pre-qualification has the following advantages

◦ It helps to eliminate and avoid

◦ Constructors that are not suitably qualified to perform the Contract at very early
stage of procurement proceedings
◦ Unrealistic tenders submitted by unqualified or disreputable Constructors
◦ Encourage realistic bids by the Bidders because of competition
◦ Helps to make any adjustments/modifications in the bidding documents from the lack of
interest by the prospective bidders applying for prequalification

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 Pre-qualification Process
◦ Pre-qualification has the following advantages

◦ Reduce the effort and so the time in evaluation of bids from un-qualified bidders

◦ Help the bidders to evaluate their capability and form joint ventures with other firms

◦ Reduce the problems associated with low priced bids from bidders of doubtful capability

◦ Help the bidders who are insufficiently qualified to avoid the expense of bidding

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 Advantages of Pre-qualification
Improved Quality of Bidders
Reduced Risk
Efficiency in the Selection Process
Cost Control
Enhances Transparency and Fairness
Mitigation of Liability
Strengthened Long-term Relationships
Better Project Outcomes

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Bidding Process

Pre-requisite of Invitation to tenders

Formulation of Tender documents
Tendering/ Evaluation/ Award
Contract Administration

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A. Pre-requisite of Invitation to tenders
1. Completion of feasibility study
i. Economic
ii. Technical
iii. Environmental ( Environmental impact assessment)
2. Engineering Design
4. Administrative Arrangements
i. Detailed Engineering Design
Financial arrangements (local and foreign
ii. Technical Reports exchange)
iii. Specifications Project land acquisition
iv. Quantity Surveying and estimations 5. Pre – qualification of Contractors
v. Controlled Estimate / Engineer’s Estimate
3. Administrative Approval
i. Standard project document
ii. Review
iii. Sanction by Competent Authority
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B. Formulation of Tender documents
1. Instruction to Bidders

2. Specifications

3. Tender Drawings

4. Bill of Quantities (B.O.Q)

5. Special Provisions

6. Conditions of Contracts

i. General conditions

ii. Particular conditions

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C. Tendering, Evaluation and Award
1. Tendering
i. Tendering Process
ii. Packaging
iii. Types of Tender
iv. Call of Tenders
2. Evaluation
i. Tender Opening
ii. Preliminary Evaluation
iii. Detailed Evaluation
iv. Procedure for Preference
v. Ranking of responsive Tenders
vi. Results
3. Award
i. Letter of Acceptance
ii. Contract Agreement signing
iii. Letter of Commencement

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Bidding Process

A. Pre-requisite of Invitation to tenders

B. Formulation of Tender documents
C. Tendering/ Evaluation/ Award
D. Contract Administration

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Tender

A formal written offer from one

party (owner) to the other party
(contractor)to execute some work at
specified cost in specified time.

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 Tender Notice

 Information to be given in a tender notice

 Name of the department inviting tender

 Name of work and location

 Designation of officer inviting tender

 Period of availability of tender document

 Cost of tender document

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Procedure for inviting tender
1.Formation of a typical Bidding/ Tender document
2.Tender Submission
3.Tender Evaluation
4. Acceptance of Tender and Award of Contract

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1. Formation of a typical Bidding/ Tender document
 Instructions to Bidders.
 Bidding Data.
 General Conditions of Contract, Part-I (GCC).
 Particular Conditions of Contract, Part-II (PCC).
 Special Provisions.
 Specifications - Technical Provisions.
 Form of Bid & Appendices to Bid.
 Bill of Quantities.
 Form of Bid Security.
 Form of Agreement.
 Form of Performance Security/Bond & Mobilization Advance Guarantee/Bond.
 Drawings.

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2.Tender Submission
 Things to considered at the time of opening
 Reception of Bids
 Change in deadline shall be communicated to each participating bidder
 Received bids shall be noted in a properly maintained diary and signed by receiving
person
 Date and time of bid receiving shall be noted
 Ensure tender/ bid security is provided with the tender
 Ensure that each of the bid received is sealed as per requirements mentioned in NIT,
unsealed bids shall be rejected, security be forfeited and bidder shall not be allowed to
rebid.
 Received bids shall be kept in a secure and inaccessible location till the time of tender
opening.

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2.Tender Submission
 Things to considered at the time of opening
 Opening of Bids
 Date and time of bid opening shall be strictly followed.
 The bidders shall be briefed about the procedure that will be followed for bid opening.
 Attendance of all the bidders shall be properly recorded along with their capacity of
participation.
 All the bids shall be opened in presence of bidders or their representatives
 The name of bidder shall be mentioned by the opening staff while opening the
respective bid.

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2. Tender Submission
 Things to considered at the time of opening
 General Documents Review
 Ensure each bid is signed and stamped
 Conforms the advertised conditions
 All the required documents are provided
 Each bid is accompanied by
 Power of attorney
 Joint venture agreement (if any)
 Any other relevant document ( discount etc)

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3. Tender Evaluation
 Tender evaluation includes a preliminary/ general and detailed evaluation of bid
documents
 Preliminary / general evaluation
 Eligibility
 Qualification
 Calculation check
 Adjust of local and foreign account if any
 General conformity of
 Legal & Contractual Evaluation
 Cost & Financial Evaluation
 Technical Evaluation
 Deviations:
 Major
 Minor

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3.Tender Evaluation
Detailed evaluation
Detailed Scrutiny Of Minor Deviations
Legal and Contractual aspects
Technical Aspects
Financial Aspects
Clarifications
Incorporation of minor deviations

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3. Tender Evaluation
Legal and Contractual
Evaluation for Responsiveness
Comparative assessment with Pre-qualification
Evaluation of
Legal capacity
Contractual capacity

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3. Tender Evaluation
Technical
Company Profile
Number of similar assignments (size & complexity)
Value of similar assignments (No. of assignments to be mentioned)
Annual turnover of previous years ( years to be mentioned)
Quality Management System/Organizational Structure

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3. Tender Evaluation
 Technical
 Project Team
 Team Leader
 Support Staff
 Architect
 Structural Engineer
 Quantity Surveyor/ Site Engineer
 Public Health Engineer etc.

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3. Tender Evaluation
 Technical
 Project Team Qualifications
 Education and qualification
 Relevant background/Experience
 Time with firm
 Approach & Methodology
 Understanding & Innovativeness
 Methodology & Work Plan
 Technical Score

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3. Tender Evaluation
 Financial
 Method of evaluation
 Quality Based System (QBS)
 Correction of Errors
 Adjustment of Foreign Currency Components
 Interest Rate
 Price Adjustments
 Tender Price

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4. Acceptance of Tender and Award of Contract

 Evaluation
 Comparative assessment
 Ranking of Responsive tenders
 Letter of Acceptance
 Performance Security
 Contract Agreement
 Letter to commence works

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