Approved Vendors List.
Bill of Material Prepration.
Vendor Review and Technical Bid Evaluation
Most of the EPC clients have a approved list of bidders who are considered suitable to supply required material to the project. Such a list is developed based on vendor’s previous track record with the company and reliable references.
Deadline is given to prospective vendors to provide price bid for the materials specified in tender document. varying number of vendors are usually invited to tender a bid based on complexity and size of the project. To ensure an environment of competition, a shortlist of four to six suitable vendors is selected. Even if only one vendor found appropriate, that vendor should not know about this fact and he should always be made to think that he has to compete with other vendors.
After all vendors submit their bid, a piping material engineer should tabulate their offers for each type of material, compare each offer with that specified in piping material specifications. If any vendor’s offer is found to be not equal to or better than the specification, its offer is technically rejected. Technical evaluation is done on the basis of materials of construction, design codes and standards, testing, certification, painting, marking and packing.
After the offers are found to be technically suitable, the technical report is sent to procurement department, which further evaluates the offers based on price, delivery dates etc. On time delivery is extremely important along with technical and commercial aspects.
Procurement department negotiates with vendor on commercial and logistical aspects, and final vendor is selected who best serves the purpose on all three matters of technical, commercial and logistical.