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Can we advertise at the start of the five year agreement for all the projects in the 5YA, or do we need to go out to tender for each project?

You can do this as long as the correct procurement process is followed which would be a multi-staged tendering process. There are two alternatives with such a process. Select a range of contractors at the Registration of Interest stage with these contractors then being invited to tender for each project according to the sequencing of the school’s5YA. Complete a full tendering process to select one contractor for all projects. The latter option would be more suitable for a school with a small number of projects for the same type of work spread over relatively few years. For schools with a large5YA budget and a number of projects over the full five years it may restrict price competitiveness. For example the contractor may incorporate into their tender an inflated price premium for future building cost increases compared with the school paying the market cost at the time of tendering for each project. There is also the risk of dealing with one contractor over a long period if there are performance issues. We would recommend you take the advice of a project manager first.

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Question added by Tariq Al Farah , Commercial Manager , Zeus International Management Consulting & Trade LLC
Date Posted: 2013/08/27
Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

Each of the two options have their own prons and cons. However, business always love to take calculated risks. In case of a five year contract, how much flexible terms are, there would still be left some areas, which are not predictable at the time of award of contract, and thus the possiblility of conflicting versions depending on each ones interests. So it is not generally advisalble to go for a5-year contract in one go for all the projects. However, the procuring agency should give an indicative list of project requirements, which may be required from time to time. This would enable the sellers to get geared up, widen competition and make the best possible offers.

elfatih mohamed ali Ali
by elfatih mohamed ali Ali , Procurement and Logistic Officer , Sudanese Microfinance Development Facility SMDF

according to the Project Documents and the Agency executing the project the Procurement of Goods or consultancy were well stipulated

based on this it is procurement principle to design procurement Olan

which include all the activities intended to be excited

from experience advertise gradually   each15 days recommended to be abide by the validity i

Tariq Al Farah
by Tariq Al Farah , Commercial Manager , Zeus International Management Consulting & Trade LLC

You can do this as long as the correct procurement process is followed which would be a multi-staged tendering process. There are two alternatives with such a process.Select a range of contractors at the Registration of Interest stage with these contractors then being invited to tender for each project according to the sequencing of the school’s5YA.Complete a full tendering process to select one contractor for all projects.The latter option would be more suitable for a school with a small number of projects for the same type of work spread over relatively few years. For schools with a large5YA budget and a number of projects over the full five years it may restrict price competitiveness. For example the contractor may incorporate into their tender an inflated price premium for future building cost increases compared with the school paying the market cost at the time of tendering for each project. There is also the risk of dealing with one contractor over a long period if there are performance issues. We would recommend you take the advice of a project manager first.

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