Today, one of the key aides for addressing the incoming business to any organization is 'Bidding,' through which process the organization pitches in for the project/business proposal. There is a need for a structured approach right from the receipt of the RFP. The correct strategy for bidding is key since this decides the success in converting the lead into a contract and post-award.
There is a need for a well-documented bid strategy SOP.
Optimized pre-qualification process for going along with prospective project partners helps in ensuring timely delivery with quality.
Process definition for precise and cost estimates supported by audit checks and controls in the bid submission process will help the intent. The take-away of this due diligence process is a seamless integration between the bidding, contract award, post-award phases in the project cycle.
A structured procurement process needs to be in place with the desired levels of checks and controls in rate finalization with a suitable audit trail, procurement terms, conditions, etc., as per the project's requirements.
Key pointers:
Pre-Award:
• Vendor / Project Partner selection – a robust model.
• RFP standard terms & conditions.
• Technical and commercial comparatives at every stage of evaluation.
• Cost estimates before contract finalization.
Post-Award:
• Precise costing and updating online project costing at every transaction.
• Vendor performance evaluation process.
• Risk register to be maintained as suggested.
• Change management process with necessary checks and controls.
Laterally compliance with ISO process/definitions/requirements, etc., is necessary to make the process more robust and sustainable in the business domain.
Project Financial Health Check:
The project is signed, stakeholders/project partners are on board, resources are staffed, and the project is underway. The senior management will need an update on the project progress. The progress is measured in terms of expenditure, billing, and realization.
Certain questions hover at the management circles:
• Will the project be completed on time?
• Will the project be completed within the approved budget?
• Any costs which need to be expended – billable or non – billable?
• What is the extent of cost over-run which needs to be absorbed into the system?
A generally used technique is cost-benefit analysis/Return on Investment, which analyzes the project from the perspective of financials at the beginning and end of the project.
Tracking the project's financial health at a more granular level will enable anticipation of project outcome/results at any point in the project cycle. An analysis of the project's prelims and direct costs will be indicators for the financial health of a project.
Indicators for project health are:
• Cost variance
• Schedule variance
• Cost Performance Index
• Schedule Performance Index
Indicators for project costing are:
• Budget for completion
• Estimate for completion
• Variance at completion
• Cost optimization avenues
These audits help organizations of any domain reconcile their investments in the right areas and get the maximum returns for time and money spent.
Any such due diligence initiatives need a clear plan for post-audit implementation, and structured follow-ups with periodic updates to the management for sustained results.
Colliers have extended their work portfolio into the niche service lines addressing all the above domains with a dedicated and accomplished team capable enough to scale up to the project and client's requirements. As part of Colliers' deliverables, hand–holding support to the concerned groups will guide the user teams through the phases of audit checks and implementation as per observations documented in the said reports.
Colliers' Technical Due Diligence (TDD) Team has provided the necessary support in collaborative working with the team.
Thank my colleague Rahul Arangannal for being part of the assignment with his valuable contributions to analysis, which our Colliers Team appreciates.
There is a need for a well-documented bid strategy SOP.
Optimized pre-qualification process for going along with prospective project partners helps in ensuring timely delivery with quality.
Process definition for precise and cost estimates supported by audit checks and controls in the bid submission process will help the intent. The take-away of this due diligence process is a seamless integration between the bidding, contract award, post-award phases in the project cycle.
A structured procurement process needs to be in place with the desired levels of checks and controls in rate finalization with a suitable audit trail, procurement terms, conditions, etc., as per the project's requirements.
Key pointers:
Pre-Award:
• Vendor / Project Partner selection – a robust model.
• RFP standard terms & conditions.
• Technical and commercial comparatives at every stage of evaluation.
• Cost estimates before contract finalization.
Post-Award:
• Precise costing and updating online project costing at every transaction.
• Vendor performance evaluation process.
• Risk register to be maintained as suggested.
• Change management process with necessary checks and controls.
Laterally compliance with ISO process/definitions/requirements, etc., is necessary to make the process more robust and sustainable in the business domain.
Project Financial Health Check:
The project is signed, stakeholders/project partners are on board, resources are staffed, and the project is underway. The senior management will need an update on the project progress. The progress is measured in terms of expenditure, billing, and realization.
Certain questions hover at the management circles:
• Will the project be completed on time?
• Will the project be completed within the approved budget?
• Any costs which need to be expended – billable or non – billable?
• What is the extent of cost over-run which needs to be absorbed into the system?
A generally used technique is cost-benefit analysis/Return on Investment, which analyzes the project from the perspective of financials at the beginning and end of the project.
Tracking the project's financial health at a more granular level will enable anticipation of project outcome/results at any point in the project cycle. An analysis of the project's prelims and direct costs will be indicators for the financial health of a project.
Indicators for project health are:
• Cost variance
• Schedule variance
• Cost Performance Index
• Schedule Performance Index
Indicators for project costing are:
• Budget for completion
• Estimate for completion
• Variance at completion
• Cost optimization avenues
These audits help organizations of any domain reconcile their investments in the right areas and get the maximum returns for time and money spent.
Any such due diligence initiatives need a clear plan for post-audit implementation, and structured follow-ups with periodic updates to the management for sustained results.
Colliers have extended their work portfolio into the niche service lines addressing all the above domains with a dedicated and accomplished team capable enough to scale up to the project and client's requirements. As part of Colliers' deliverables, hand–holding support to the concerned groups will guide the user teams through the phases of audit checks and implementation as per observations documented in the said reports.
Colliers' Technical Due Diligence (TDD) Team has provided the necessary support in collaborative working with the team.
Thank my colleague Rahul Arangannal for being part of the assignment with his valuable contributions to analysis, which our Colliers Team appreciates.