Better value bidding

The process to obtain bids for civil works contracts often goes down the traditional competitive transactional route of “give us your best price as soon as you can”. The winner will most likely be the lowest price or an incumbent favourite provider if they are not too far off the low price.
The process to obtain bids for civil works contracts often goes down the traditional competitive transactional route of “give us your best price as soon as you can”. The winner will most likely be the lowest price or an incumbent favourite provider if they are not too far off the low price.

The process to obtain bids for civil works contracts often goes down the traditional competitive transactional route of “give us your best price as soon as you can”. The winner will most likely be the lowest price or an incumbent favourite provider if they are not too far off the low price.

This approach does not provide better value to the asset owner or principal contractor client. This is particularly so in the more specialised civil works areas such as Horizontal Directional Drilling (HDD).

Maxibor Business Development Manager Peter Loneragan says clients must take the opportunity to discuss with Maxibor’s HDD design and delivery team.

“When we talk about the options around an upcoming HDD project, our clients benefit from Maxibor’s knowledgeable insights into the project. It helps optimise value for all stakeholders. Future issues around constructability can be addressed early, allowing for a smoother transition through delivery”.

“Where the conversations extend beyond the immediate project, real value for both parties can be achieved by building Respect, Relationship and Response across a pipeline of projects,” he said.

What are the key actions for better value bidding?

Some key actions which will add value beyond the traditional bidding route for HDD works include:

  • Have your senior project people meet with the HDD service provider’s knowledge base. It will help all stakeholders become more informed about HDD and other trenchless solutions. This will result in better project and procurement decisions.
  • Work to establish a professional relationship with key people in the HDD provider. Consider every department, including design, estimating, project management, HSEQ and commercial. It will ensure more productive communications.
  • Use the established relationship to work through specific project challenges. Seek out innovative solutions that will help optimise value from delivered projects.
  • Use the HDD provider relationship to strengthen organisational confidence. It is possible to deliver HDD projects while appropriately managing the risks.
  • Enable your organisation to widen the use of innovative longer distance, larger-diameter HDD solutions by having closer relationships with your HDD provider. Asset owners and Tier 1’s can be comfortable with such solutions by knowing you have the trusted support of an experienced and innovative HDD design and delivery provider on your team.
  • Work cooperatively to seek additional information to help reduce the project’s HDD-related risks, especially regarding ground conditions and time to complete.
  • Share your project pipeline in the immediate, medium, and long term. It will determine how a more cooperative approach will lead to better outcomes for all stakeholders.
  • Be flexible on the commercials, especially around security levels and releases. Use this flexibility by weighing cash flow to risk.
  • Be open to alternative design and delivery methodologies. Locking in one approach stifles innovation and limits better value being achieved.
  • Be proactive about raising social procurement and environmental opportunities. Utilise networks and resources to achieve better outcomes for the broader community.

“Maxibor is increasingly finding that asset owners and principal contractors are looking for the more cooperative and collaborative approach,” said Loneragan. “They are delighted with the immediate and longer benefits of sharing Maxibor’s immense HDD design and delivery knowledge base. Our customers understand how this relationship helps successfully deliver projects.

For more information on Maxibor’s better value bidding approach, visit their website at www.maxibor.com.au

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