Contracting

When allocation of tasks in the allocate stage involves the employment of contractors, the tendering and subsequent production work of the contractor can be regarded as a component project in its own right. For the contractor, all the steps in Table 2.1 are passed through on becoming involved in the parent project. What the client regards as the allocate stage is regarded by the contractor as the conceive, design, plan, and allocate stages. In the case where the contractor has a major responsibility for design (as in turnkey or design-and-build contracts), the client will move quickly through the conceive, design, and plan stages, perhaps considering these stages only in general outline terms. Then the contractor carries out more detailed work corresponding to these stages. For the contractor's project, the 'trigger' involves both a need and an opportunity to tender for work, usually managed at a high level in the contracting organization. The conceive stage corresponds to a preliminary assessment of the bidding opportunity and a decision to tender or not (Ward and Chapman, 1988). This is followed by costing design specifications and plans provided in more or less detail by the client, perhaps some additional design-and-plan development, evaluation of the tendering opportunity, price setting, and submission of a bid. For the contractor's project, the allocate stage involves further allocation of tasks, perhaps via subcontracting, detailed design work and production scheduling as indicated above.

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