Project Proposal

Proposal is a written offer in response to an ITB (Invitation to Bid), ITT (Invitation to Tender), RFQ (Request for Quotation) or Inquiry that is the bidder's or contractor's plan or suggestion document. The Proposal includes price, time frame, terms of sale, and description of goods and services to be supplied. (Also, called as the Tender (UK) or Bid (USA))

Bid is a written or ​formal ​offer, or complete proposal in response to an ITB (Invitation to Bid), RFQ (Request for Quotation), or Inquiry. The Bid includes price, time frame, terms of sale, and description of goods and services to be supplied. (Also, called as the Tender (UK) or Proposal)

Bid Evaluation is a contractor selection process that is the evaluation of proposals to select the successful supplier, contractor, or subcontractor among proposed bidders in accordance with the bid evaluation criteria. The Bid Evaluation consists of a Commercial Bid Evaluation (CBE) and Technical Bid Evaluation (TBE).

Contract is an agreement between two or more parties, to exchange providing a specific work (Scope of Work) with agreed compensations (mainly cost and/or any others specified in the contract) with terms and conditions. The Contract terms and conditions including both parties' obligation, liability, payment, and other terms and conditions are legally binded. The Contract dispute settlement process and change management work process is a part of contract. In addition to a signed document, resulting from acceptance of offers by award notices, letters of intent (LOI), and other orders such as POs are one of the contracts. The Project Execution Plan (PEP) and procedures are developed based on the actual contract terms and conditions.

Proposal Process is the proposal document preparation and development work process that can be defined 3 steps: 1) Pre-Proposal activities - Define business/ sales objectives; Clarify key client issues, needs, and objectives; Assess competitive positions (winning strategy); Develop differentiations; Develop client’s evaluation criteria. 2) Proposal Development activities: Organise proposal team and assign proposal manager; Analise ITB and highlight key issues; Develop detailed Scope of Work (SOF and SOS) document; Develop comprehensive compliance checklist; Utilise story telling methods to cover all requirements; Define innovations and link to commercial benefits; Highlight selling points link to client’s interest; Review legal and commercial terms and conditions. 3) Post Proposal activities: Be prepared for negotiation and clarification; Client focusing mindsets; Focus on client issues, needs, and objectives; Hand Over to Project Team.

Pre-Proposal

• Define business/ sales objectives,
• Clarify key client issues, needs, and objectives,
• Assess competitive positions, (winning strategy)
• Develop differentiations,
• Develop client’s evaluation criteria.

Proposal Development

• Organise proposal team and assign proposal manager,
• Analise ITB and highlight key issues,
• Develop detailed Scope of Work (SOF and SOS) document,
• Develop comprehensive compliance checklist,
• Utilise story telling methods to cover all requirements,
• Define innovations and link to commercial benefits,
• Highlight selling points link to client’s interest,
• Review legal and commercial terms and conditions.

Post Proposal

• Be prepared: Negotiation and clarification,
• Client focusing mindsets,
• Focus on client issues, needs, and objectives,
• Hand Over to Project Team.

Base Proposal is prepared and developed by bidder (or tender) in comply with the requirements of the Invitation of Bidder (ITB or ITT) document or client's instruction that offers to perform the work described in the proposal documents as the base. For the bidder's own requirements, work may be added, deleted, or modified from the ITB or ITT document and offered as an alternative proposal with the reasons and effects.

Alternative Proposal is developed and submitted to the client for their consideration when bidder (or tender) has a better idea or suggestion than the requested, work may be added, deleted, or modified from the ITB or ITT document. The Alternative Proposal should be developed and focused on the client's benefit such as the project duration, cost deduction, better performance or any other terms and conditions, but normally exception of safety related matters.

Bidder is a person or company who develops and submits a proposal (bid, or tender document), and a potential contractor or supplier when they are selected through the bid evaluation processes. (Also, called as the Tenderer)

Bid Bond is issued by a bidder to an owner to ensure that the bidder will undertake the bid terms and conditions when the bidder enter the contract after his proposal is accepted. Generally, the Bid Bond is the one of bid document (proposal document), and will replace the bid bond with a performance bond after the contract is agreed.

Bid Evaluation is a contractor selection process that is the evaluation of proposals to select the successful supplier, contractor, or subcontractor among proposed bidders in accordance with the bid evaluation criteria. The Bid Evaluation consists of a Commercial Bid Evaluation (CBE) and Technical Bid Evaluation (TBE).

Bid Evaluation Criteria is a guideline of the contractor selection process that is the quality and quantity provisions of the technical and commercial basis and conditions including the proposed cost, commercial terms and conditions, and other commercial related proposal converted to cost for the Commercial Bid Evaluation, and experiences, technical capabilities, resources, and execution plan, etc., for the Technical and Execution Bid Evaluation. The Bid Evaluation Criteria is weighted for each evaluation categories including the bidder management commitments that should be prepared and developed prior to the bid (ITB (Invitation to Bid) or RFQ (Request for Quotation) requests.

Commercial Bid Evaluation (CBE) is one of the contractor selection processes that is a comparison table of the cost and commercial related items or conditions (e.g., proposed currency, payment method, guarantee and liability, bond and insurance, etc.) for proposed bidders, contractors, or subcontractors. The Commercial Bid Evaluation is performed based on the bid evaluation criteria including the categorised weighted values for the proposed price analysis; terms and conditions; financial stability of the bidder; terms of payment; and delivery schedule, etc.

Technical Bid Evaluation (TBE) is one of the contractor selection processes that is an evaluation and examination of the bidders' (contractors') or subcontractors' technical bid document or proposals. A TBE work process is evaluating and assessing the technical capability including quality, experience, compliance with specifications, operating cost, and performance penalty to meet the project requirement as well as the execution capability.

Bidder List is a potential equipment and bulk material suppliers or manufacturers list for the project or a candidate list of the management, study, review, test and inspection, audit, survey, verification, authority approval, and any other activities which is performed by third parties including construction sub-contractors. The Bidder List for the procurement and subcontractor selection is an agreed document between contractor (main) and client (owner) before the bidder selection work process is commenced.

Inquiry is the bid document (normally, non-technical bid document) developed by a buyer, and sent to goods or services supplier candidates (bidders) including a general item description and quantity, and terms and conditions, etc. (Refer to the Request For Quotation (RFQ))

Invitation to Bid (ITB) is a formal competitive solicitation document that is an invitation of prospective suppliers to submit a bid on materials or services through an advertising public opening at the time and date. The response of ITB is the bid, proposal, tenderer document that is evaluated and awarded to the responsible bidder with the price. In general, when using this solicitation, price as well as specification requests are major considerations in the award process, and the evaluation results are published.

Tender (mainly UK, in the USA usually bid) refers to the Bid. (Also, called as the Proposal).

Tenderer (mainly UK, in the USA usually Bidder) refers to the Bidder.

Proposal Opportunity Assessment is a systematic evaluation work process to decide whether a company to participate in a bid or not. The Proposal Opportunity Assessment includes the analysing scopes, and terms and conditions; developing client's and competitors’ profile and critical issues of the project; assessing company’s capabilities, and developing a preliminary execution plan, etc.

Project Assessment for the proposal is an evaluation work process to decide participating in a bid or not, and to evaluate whether the business is profitable or beneficial for the company. The Project Assessment activities include client’s estimated budget, schedule, execution capability, key member involvement, project urgency, preferred contractor as well as underlying issues and concerns, etc.

Client Assessment for the proposal is an evaluation work process to decide participating in a bid or not as well as to develop a winning proposal. The Client Assessment includes the realistic of a project; references of client’s project experiences; client organisation structure including the decision matrix; client's market position; financial status and previous relationship, etc.

Company Capability Assessment for the proposal is an evaluation work process to decide participating in a bid or not, and to develop the winning proposal. The Company Capability Assessment is to confirm a matching the company’s business policy; workable in resources, technology, experience, etc.; winnable competition and it will make a profit, etc.

Competitor Assessment for the proposal is an evaluation work process to evaluate the possibility or probability of the winning business. The Competitor Assessment activity includes competitors’ capability, workload, system, technology, position and reputation in the industry, and their intention of this business. The SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis method can be used for the Competitor Assessment for the proposal.

Bid/ No-bid (Go/ No-go or Proposal/ No-proposal) Decision is a work process to decide whether the company participate in the business based on the assessment work processes such as proposal opportunity, project, client, competitors, and company capability assessment. A proposal cost and schedule, winning strategy, and other decision factors such as workload, future business plan, client relationship, project execution risks, etc., should be considered for the Bid/ No-bid decision.

Bid/ No-bid Evaluation Criteria is a guideline of the bid/ no-bid decision making that consists of a matching the company business policy including future opportunities in business areas, locations, and technologies; available resources and experiences; winnable and profitable of the project; soundness of the client and the project realistic. The Bid/ no-bid Evaluation Criteria also includes competitors’ strength and weakness; execution risks; contract terms and conditions; definition of the scope of work; guarantee and liability; localisation uncertainty; long term business relationship, etc.

SWOT (Strengths, Weaknesses, Opportunities and Threats) is a systematic risk analysis method that consists of Strengths, Weaknesses, Opportunities and Threats.

Winning Strategy is the detailed plans for achieving success in the situation. The proposal Winning Strategy is influence and affect the client’s selection process by focusing on client needs; differentiation from previous and competitors; company's best value with highlight strength, mitigate weakness, neutralise competitor’s strength and focus competitor’s weakness.

Client Satisfaction or Customer Satisfaction is a marketing terminology that is a measurement of how supplied goods or provided services to meet or surpass client or customer's expectation. The Client Satisfaction can be developed by the client relationship management and measurement system to maintain or improve a long term business partnership through a continuous improvement of performance and relationship. The process can be conducted structured interviews with the client or customer key people face to face, phone or internet or handwritten form.

Competition is a contest situation trying to win or be more successful than others. (Refer to the Perfect Competition)

Marketing is the business ideas, brands, design, processes, and activities that involves finding out what customers want, and selling them effectively. The Marketing is measuring effectiveness, market research, learning customers' needs and the psychology of consumer behaviour, and how can add value through marketing activities for a successful business in the long term.

Offer is to agree or make a contract, or to give the opportunity to accept or take.

Offer Price is the prices that proposer suggests as the prices at which offerer is prepared to sell their products or services. (Also, called as a Bid Price)

Perfect Competition is a market situation where competition is at its greatest possible level. The Perfect Competition market will reach an equilibrium in which the quantity supplied for every product or service, including labour, equals the quantity demanded at the current price.