Xây dựng chiến lược đấu thầu xây lắp tại công ty cổ phần sông đà 6

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

LÊ TIẾN THỦ

BUILDING THE BIDDING STRATEGY
FOR SONG DA 6 JOINT STOCK COMPANY
XÂY DỰNG CHIẾN LƯỢC ĐẤU THẦU XÂY LẮP
TẠI CÔNG TY CỔ PHẦN SÔNG ĐÀ 6

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2018


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

LÊ TIẾN THỦ

BUILDING THE BIDDING STRATEGY
FOR SONG DA 6 JOINT STOCK COMPANY
XÂY DỰNG CHIẾN LƯỢC ĐẤU THẦU XÂY LẮP
TẠI CÔNG TY CỔ PHẦN SÔNG ĐÀ 6
Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS. HỒNG ĐÌNH PHI

Hà Nội - 2018


DECLARATION

The author asserts that the results of the study in the thesis are the result
of the author's independent work during the period of study and composition
and have not been published in the research and writings of others.
Research results and other people's materials (excerpts, tables, figures,
formulas and other materials) are used in validated citations and allowed (if
needed).
The author is responsible for to the Board of Appraisal, Hanoi School
of Business and Management (HSB), Hanoi National University and the
copyright law for the mentioned above.

June ..... ,2018

i


ACKNOWLEGEMENT

I would like to express my profound gratitude to Prof. Hoang Dinh Phi
who was very dedicated to instruct, guide and consult me to choose research
topics, theoretical and practical background in the process of writing this thesis.
I would like to sincerely thank the teachers of The MBA program at
VNU Hanoi School of Business and Management who have taught me and
provided me with knowledge during the study for me to complete this thesis.

I would also like to thank my colleagues and staffs at Song Da 6 JSC
for providing me with information and materials to facilitate my research; and
the data for the analysis and finalization of this thesis.

June ..... ,2018

Author

ii


TABLE OF CONTENTS

DECLARATION ............................................................................................ i
ACKNOWLEGEMENT ................................................................................ ii
LIST OF TABLE ........................................................................................... v
LIST OF FIGURES ....................................................................................... vi
HEADING ..................................................................................................... 1
CHAPTER

1:

BASIC

THEORY

ON

FORMULATION

OF

CONSTRUCTION BIDDING STRATEGY .................................................. 6
1.1. Construction Bidding............................................................................... 6
1.1.1. Concept and nature of construction bidding ....................................... 6
1.1.2. The role of construction bidding ........................................................ 7
1.2. Formulation of Construction bidding strategy ......................................... 9
1.2.1. Determining the strategic objectives of bidding ................................. 9
1.2.2. Analysis of internal and external environment ................................. 10
1.2.3. Analysis of competitiveness in construction bidding ....................... 19
1.2.4. Strategic Analysis and Selection - SWOT matrix ............................ 26
1.2.5. Proposing the steps in formulating a bidding strategy for construction
and installation at Song Da 6 Joint Stock Company .................................. 29
CHAPTER 2: FORMULATION OF THE CONSTRUCTION BIDDING
STRATEGY FOR SONG DA 6 JOINT STOCK COMPANY DURING 20192023 ............................................................................................................. 31
2.1. Introduction about Song Da 6 JSC ......................................................... 31
2.2. Competitive capacity in bidding for construction and installation at Song
Da 6 Joint Stock Company ........................................................................... 33
2.2.1. Qualification and experience ........................................................... 33
2.2.2. Quality and technical solutions ........................................................ 34
2.2.3. Bid................................................................................................... 35
iii


2.2.4. Customer relationship ...................................................................... 35
2.2.5. Prestige and brand ........................................................................... 36
2.2.6. Human resources and tools to support the bidding ........................... 37
2.3. Internal and external environmental analysis influences the company's
bidding strategy for construction and installation ......................................... 37
2.3.1. Macro-environmental analysis ......................................................... 37

2.3.2. Environmental Analysis of Construction Industry ........................... 44
2.3.3. Environmental analysis inside Song Da 6 JSC................................. 47
2.4. Strengths, weaknesses, opportunities, challenges in bidding for
construction and installation in Song Da 6 JSC ............................................ 56
CHAPTER 3: PROPOSAL OF STRATEGY AND SOLUTIONS FOR SONG
DA 6 CORPORATION ................................................................................ 61
3.1. Propose the bidding strategy for construction and installation ............... 61
3.1.1. Identify vision, mission and core values .......................................... 61
3.1.2. Strategic objectives of Song Da 6 .................................................... 62
3.2. Solution to build construction strategy of Song Da 6 JSC ...................... 63
3.2.1. Solutions for building the apparatus and developing human resources
in construction bidding for construction and installation ........................... 63
3.2.2. Solutions to improve financial capacity ........................................... 66
3.2.3. Renew and improve the skill of building bids and participating and
bidding....................................................................................................... 69
3.2.4. Pricing strategies to secure winning bids ......................................... 77
3.2.5. Solutions on marketing activities in bidding for construction and
installation................................................................................................. 81
CONCLUSION ............................................................................................ 85
REFERENCES............................................................................................. 87

iv


LIST OF TABLE
Table 1.1: Capacity and experience of contractors........................................ 20

v

LIST OF FIGURES
Figure 1.1: SWOT matrix ............................................................................. 28
Figure 1.2: Steps of construction bidding strategy at Song Da 6 JSC............ 29
Figure 2.1: Organization chart of Song Da 6 JSC ......................................... 32
Figure 2.2: Total value of construction output by type of construction works ..... 45
Figure 2.3: Growth rate of the construction industry to 2020 ........................ 46
Figure 2.4: Construction sector value by projected area by 2022 .................. 47
Figure 2.5: Rate of employees by level at Song Da 6 JSC ............................ 52
Figure 2.6: Earnings after tax / revenue of Song Da 6 Joint Stock Company 54
Figure 2.7: Evaluate the ROE business area, the ratio of income to capital
used .............................................................................................................. 55

vi


HEADING

1. The Rationale of Research
Bidding is a widely used form in the past to select the most qualified
contractors to undertake construction works. Bidding is the scientific form that
many countries have applied for a long time. Bidding ensures a highly efficient,
fair, competitive and transparent investment process. At present, Vietnam
National Assembly has promulgated the Law on Tendering/Bidding No. 43/2013 /
QH13 dated 26 November 2013, and the Vietnam Government has issued Decree
No. 63/2014 / ND-CP dated 26 June 2014 on details of the implementation of a
number of articles of the Bidding Law on contractor selection.
However, the tendering/bidding activities have not been able to obtain
the perfection in tendering activities and state management of tendering of
construction firms. In bidding, competition is very drastic on bidding prices,
construction capacity, and construction schedule (expressed through technical

method statement). And the competition helps bidders strengthen in all
aspects. Bidding success is highly dependent on the company's bidding
strategy. In fact, the company has a professional bidding strategy; the winning
rate is often high. Therefore, the assessment of the current status of the
bidding capacity of enterprises and the application of scientific methods in the
analysis and development of construction bidding strategies in the
construction industry are very necessary.
Song Da 6 Joint Stock Company is an affiliate of Song Da Corporation,
a unit with strong and prestigious trademark in the field of construction,
especially hydropower construction and civil construction. For the last 5
years, during the bidding process, the company has showed many competitive
advantages such as prestige, brand name in the big market, many years of
experience in the construction of hydropower projects, skilled workers,
1


modern machinery and equipment, etc. However, the winning rate of the
company is not high. As reported by the management board, some main
reasons are: The Company has not had much experience in executing civil
works; Bid prices are high due to incompetent budget estimation; High
management costs; many contingencies that increased bid prices, etc.
Therefore, the development of a comprehensive and effective bidding strategy
is an urgent task that the company needs to complete for its development.
Based on the need as mentioned above, the author has decided to select the
title "Building the Bidding Strategy for Song Da 6 Joint Stock Company” for the
graduation thesis of the master of business administration program at HSB.
Research question: What should Song Da 6 JSC do to develop a
construction bidding strategy in the future?
2. Aim of research
Researching the bidding strategy for construction bidding of Song Da 6

Joint Stock Company is to propose an effective and comprehensive
construction bidding strategy in the coming time.
Research mission
-

Study the theoretical basis on the bidding strategy for construction

bidding, tools for assessment and strategic planning of bidding, especially the
bidding strategy for construction.
-

Analyze the actual situation of the bidding strategy for construction of

Song Da 6 Joint Stock Company recently; determine the achievements,
limitations and causes.
-

Advise, recommendations to build a more effective and comprehensive

bidding strategy for the Company in the coming time.
3. Objects of research
Strategic research thesis focuses mainly on bidding strategy for
construction bidding of Song Da 6 Joint Stock Company.
2


4. Scope of research
-

Space: Study of bidding strategy for construction of Song Da 6 Joint

Stock Company.
-

Time: The data related to construction bidding is collected in the period

from 2013 to 2016 and proposes solutions to build construction bidding
strategy for Song Da 6 JSC to 2021.
-

Content: To concentrate on studying the contents related to

construction bidding strategy bidding of Song Da 6 Joint Stock Company.
5. Research methodology
The process of organizing research is done in four steps as described in
the following table:
Step 1: Identify the research problem
Step 2: Development ofresearch methodology
Step 3: Method of collecting and processing information
Step 4: Analysis and report research results
Information collection method
-

Secondary information (data, documents available) is collected from

officially published information from state agencies, the construction
industry, researches of individuals and organizations inside and outside. The
research also inherits the results of macroeconomic research, construction
industry analysis, as the basis for the assessment of the situation and proposed
construction strategies for the company in the future.

+ Secondary data is the data directly or indirectly related to the subject matter
of research, mainly research results and officially published.
+ Secondary data is collected from different sources such as: report on
macroeconomic situation, report on industry competition, final report on
bidding work of the Company in the past, etc.
Data processing methods
3


Based on collected information and data, selectively and systematize to
calculate

the

research indicators. Using the

method of statistical

disaggregation to systematize and synthesize documents and divide them
according to the contents and norms suitable to the study on bidding strategies
for construction and installation. The tool used in this thesis is the Excel
computer software.
- Secondary materials: arranged for each research content and divided into 3
groups: i) theoretical documents; ii) general overviews and practices related to
procurement strategies (macroeconomic, competitive analysis of the
construction sector, etc.); iii) the material is the report of Song Da 6 Joint
Stock Company, the bidding office of the Company.
Methods of statistic, comparison, synthesis


Statistical method: Used to analyze the data with the comparison

method to clarify the fluctuation of the research indicators in relation to other
indicators. Specifically, through the indicators related to macroeconomic
situation, analysis of construction industry, analysis of internal factors of the
Company related to bidding strategy, etc. helps the author assess the current
construction bidding strategy at the Company, achievements and limitations.
It also helps to identify the opportunities and risks that the Company is facing
in the near future as the basis for proposing a comprehensive and effective
bidding strategy for construction in the near future.


Descriptive Statistics Method: During the analysis and processing of

research data, the descriptive statistical method issued by the author. Thesis
uses descriptive statistics through data collected from reports, data sources are
obtained from experts to whom the author interviews, exchanges, consults.
Synthesis method is as unified method of integrating all the elements and
comments that, when using the methods, has been made into a complete and
complete conclusion. Outline the relationship between them, generalizing
4


problems in aggregate cognition. The results of research after synthesis will
give a fuller and more comprehensive view on the construction bidding
strategy in Song Da 6 Joint Stock Company; recognizing the achievements,
limitations and cause. Along with the study of the internal and external factors
help the author see the opportunities and challenges that the Company faces in
the future. Through this, we will develop an effective and bidding strategy for
construction of the Company in the coming time.

6. Structure of the thesis
In addition to the introduction and conclusion, the thesis consists of
four chapters:
Chapter 1: Basic theory on formulation of construction bidding strategy.
Chapter 2: formulation of the construction bidding strategy for Song Da 6
joint stock company during 2019 - 2023.
Chapter 3: Proposals of strategy and solutions for Song Da 6 corporation.

5


CHAPTER 1
BASIC THEORY ON FORMULATION OF CONSTRUCTION
BIDDING STRATEGY

1.1. Construction Bidding
1.1.1. Concept and nature of construction bidding
According to the Law on Tendering No. 43/2013/QH11 dated 26 November
2013, the concept of tendering is construed as follows:
Bidding: is the process of selecting bidders who satisfy the requirements of
the procuring entity to execute bidding packages of projects on the basis of
ensuring competitiveness, fairness, transparency and economic efficiency.
Different angles will result in different views on tendering in basic construction:
- From the perspective of the investor: Bidding is the tool to help
investors choose the best quality construction works at the most reasonable
prices, effective capital, achieve progress and objectives of the project.
- From the perspective of contractors: Bidding is an approach to search
for business opportunities and to develop enterprises.
The nature of the tender for the contractor is a process of competing with
other contractors for the feasibility of carrying out the construction work in

order to meet the quality, schedule and cost requirements for obtaining the
contract of performance. the project proposed by the party calling for tenders.
Bidding is a very difficult, sensitive and risky process.
- From the perspective of state management: Bidding in construction is a
macro management tool that helps the State to preserve the budget and
transparency in matters of infrastructure construction.
From the above approaches, it is possible to draw the following general
concept: Construction bidding is the open competition between the contractors
with the same conditions in order to win the construction (project).
6


The nature of construction bidding is shown in the following aspects:
Bidding is the organization of competitive activity on two aspects:
+ Competition between the procuring entity (the investor) and contractors
(construction businesses).
+ Competition between contractors.
The competitive relation arises from the supply and demand relations. The
introduction and development of the method of bidding is associated with the
development of production and exchange of goods. But this activity differs from
normal trading in that the nature of the commodity of the construction product is
unclear as the consumption takes place before the product is made and at the
financial proposal t but not the price.. In buying and selling, the buyer always
wants to buy the product at the lowest price (minimizing the cost), and the seller
tries to sell the item at the highest possible price (profit maximization).
This leads to competition between the buyer (the owner) and the seller (the
contractor). On the other hand, this sale is only for one buyer and many sellers
should compete with each other to sell their product. Results through the
organization of competitive activity will form a bid or estimate of the cost of
the project.

1.1.2. The role of construction bidding
Bidding is not a formal procedure but in fact a common business process in
basic construction. Bidding is an important "link" contributing to improving
efficiency, reducing waste, loss, negative for construction investment projects.
The effectiveness of this form has been affirmed not only in Vietnam but also
in many countries in the world. Bidding is important to not only the
stakeholders but also the interests of the national economy.
For investors:
+ Through bidding, the investor will find the contractor has the ability to meet
the highest requirements of the project. Because the competition is fierce
7


among contractors, the investor selects only contractors that meet the
requirements who have reasonable prices and ensure the progress of
construction and quality of works.
+ With the form of bidding, the efficiency of investment capital management
is strengthened and the wastefulness of investment capital at each stage of the
project implementation process will be overcome and greatly reduced.
+ Tendering helps investors resolve the dependency on a single contractor.
+ Construction and installation bidding creates a fair and healthy competition
environment among construction contractors.
+ Procurement helps to improve the level and capacity of economic and
technical staff of the owners themselves.
For contractors:
+ Tendering will promote control and active in finding opportunities to
participate in bidding and signing contracts (when winning the contract),
create jobs for labors, and develop production. This task requires contractors
to actively seek information related to projects, information on competitors,
build relationships with domestic and foreign economic organizations,

develop strategy to enhance reputation.
+ Procurement requires the contractors to constantly improve their
qualifications in all aspects such as organization management, training staff,
invest in improving the capacity of machinery and equipment, expand the
information network ... As a result; the contractor builds its capacity.
+ Through bidding, the contractor will accumulate many competitive
experiences, acquire the knowledge of advanced science and technology,
conditional to assert themselves in the present and in the future, create
opportunities to compete in domestic and international markets.
+ Bidding helps contractors improve their economic efficiency to ensure
profitability when the bid price is low.
8


For the State:
+ Through bidding, the State management agencies have enough practical
information and scientific basis to properly evaluate the real capacity of
contractors. Bidding activities improve the efficiency of the use of funds.
Bidding on the basis of competition among contractors in all fields (financial,
technical, management ...) will promote the units to improve the level,
effectiveness in all aspects. Thanks to the bidding, the efficiency of the
projects has been improved, saving the State budget.
+ Bidding to improve the efficiency of the state management of investment
and construction, limit and eliminate the loss, misspend of investment capital
and other negative phenomena in the capital construction.
1.2. Formulation of Construction bidding strategy
1.2.1. Determining the strategic objectives of bidding
The first element of the mission statement of the business is to clearly
define the strategic objectives in the construction and installation bidding of
enterprises. Strategic goals are the desire of the business. It is to specify the

purpose of the business in terms of direction, scale, and structure and
development over time.
Determining the strategic objectives of the construction and installation
bidding also enables the company to develop a benchmarking system that can
be used as a yardstick for work, and helps the company adjust as needed.
Strategic goals are influenced by many factors, such as the external
environment and their relationships, the actual resources of the business, the
system of values, and the goals of the leaders. as well as strategies that the
business has pursued in the past and its development trends.
Therefore, to define a strategic goal:
- Objectives must be clearly defined at each relevant time and must have
common goals as well as specific goals for each field of activity.
9


- Objectives must ensure mutual interdependence. This goal does not
interfere with other goals. Harmonize the goals of the shareholders, of the
leaders, of the trade union, of the workers in general.
- Prioritize the goals.
1.2.2. Analysis of internal and external environment
1.2.2.1. Group of internal factors
- Financial resources of the enterprise: Financial ability of enterprises is
shown in:
+ Scale of own capital, owner's capital and source of borrowed capital,
ability to mobilize capital for production and business of the enterprise.
+ The efficiency of using such capital sources.
+ The structure between fixed capital and working capital.
These factors help the company to ensure that the contract is signed with the
owner.
An enterprise with abundant financial capacity, can participate in construction

bidding for many projects in a year, there are many opportunities to invest in
increasing equipment, machinery, mobilizing human resources, supplying
materials in time to meeting the requirements of construction and requirements of
modern technological processes. At the same time, we always retain the prestige
to material suppliers and credit institutions. Financial capacity has a positive
impact on the bidding process. It is considered in two aspects:
+ For the winning projects, the strong financial capacity helps the company
to accomplish the construction task, ensuring the technical work, good
quality, fast construction schedule, ensuring credibility and confidence.
For the investor. In addition, the average annual profit from contracts
executed in the last few years shows the business efficiency of the
business, while creating the trust and high reputation for Investors, donors,
authorities.
10


+ In the tender, financial capacity is one of the criteria for evaluating the
contractor. More importantly, a business with sound financial capacity,
which allows for a fair and reasonable pricing decision.
-

The structure and level of organization and management of

enterprises: A rational management structure will make the enterprise
effective in all activities, thereby creating flexibility in processing. Changes in
the internal as well as the enternal factors of the business minimize the undue
losses and capture opportunities in the business.
The most prominent feature in the management organization of the
construction business is the rapid change through each item of construction.
Depending on the specific project, the management should make the right

decision. At the same time management should determine the long-term, right
direction for your business. Therefore, flexible management in the
organization of the construction business is a very important requirement. In
addition, corporate management also creates an atmosphere of inspiration,
enhances the good relationship between management and departments and
employees, creating the hidden power in the enterprise.
-

Human resources: Human resources of enterprises are considered as

important assets of enterprises, directly affecting the efficiency of production
and business activities. Thereby, affect the competitiveness of enterprises. To
assess the resources of enterprises, investors pay special attention to the
following issues:
+ Senior Management Officers (Board of Directors): They are senior
executives; they are the key to the success or failure of the business and take
responsibility for those decisions. One of the key functions of the board of
directors is to develop the strategy for action and development of the
business. When evaluating the leadership, investors are often interested in the
criteria of leadership experience, the level of business activities, the business
11


qualities of the business and the relationship. Moreover, they appreciate the
spirit of unity, unity of workers and leaders as well. This increases the
strength of the business itself, while creating credibility to the owner.
+ Intermediate level managers: Intermediate level commanders above the
level of the administrator and under senior management. With this position,
they manage the grassroots level and control other staff. At this level, the
administrator is responsible for implementing the organization's plans and

policies by coordinating the work done to achieve the accomplishment of the
overall goal.
To assess the strengths and weaknesses of the management board,
investors often approach on the following aspects:
Qualifications, work experience, business and legal understanding of each
member in the management team.
The structure of training majors by level will indicate the ability to
specialize as well as diversification of the business.
+ Management staff at the grassroots level, workers: This is the team of
managers at the last level in the hierarchy of managers of an enterprise. Often
they are often referred to as foremen, team leaders, and chiefs. Their task is to
guide, direct and control workers in daily tasks to accomplish the goals of the
whole enterprise. This management team leads the direct workforce, creating
the synergy of the enterprise in terms of quality and construction progress.
The person in charge of the unit must have a managerial qualification
(organize the coordination of labor and equipment properly, avoid waste in
order to reduce costs, increase profits along with ensure quality), deep
understanding of the nature workwhichthe organization is implementingg,
know how to care for the interests of employees ... to gain support and
enthusiasm. However, excellent leaders are not enough, but it also needs a
team of highly skilled, creative, honest and disciplined employees. They are
12


the people who directly carry out the ideas, strategies and tactics of the top
management, who make up the quality of the work and the competitiveness of
the business.
The above factors play an important role when enterprises participate in
bidding, enterprises must present to investors. If a good resource, reasonable
structure, meet the requirements of the investor will be appreciated.

-

Marketing activities: Marketing strategy plays an important role in

gaining competitive advantage and business efficiency of the business. Using
the right marketing strategies will help your business stay on top of the
competition. With the purposes and requirements set forth, the marketing
system must ensure accurate and timely information on the development of
the construction market, considering the development prospects of the
construction industry, prices on developers, distributors, major customers,
competitors, suppliers and other related factors.
Business operation of construction enterprises is not the same as other
industrial enterprises which is to bring products to market for customers to
choose. On the contrary, they need to rely on their reputation to get customers
to come in and produce the required products. There is direct competition
between the construction firms on reputation. The reputation and
achievements of the business have a great impact on the ability to win the
project. Therefore, the creation of reputation and trust in the market will
increase competitive advantage in the bidding.
-

The ability to associatiom, cooperation: A partnership or joint

venture is a combination of two or more economic legal entities to create a
new legal entity with the combined strength of experience and financial
capacity. This is one of the factors that assess the ability of the business. In
order to increase its capacity in the competitive market, the issue of
expanding the partnership, linking in appropriate forms is an important and
13

appropriate solution. Through which the construction business can fully meet
the requirements of the large-scale and complexity. .
Linking can be done horizontally, i.e. the ability of enterprises to link
with their peers to undertake large projects. Vertical linking is the link
between the construction business and the manufacturing of materials or
equipment (thereby reducing the cost of construction at maximum).
+ Joint venture participation: This is the form of contractor joining
together into one contractor. The capacity of this contractor is the aggregate
capacity of all independent members. This will increase the financial, human
resources and technical strength to meet the requirements of the investor.
+ Construction Corporation is a form of linkage between economic
entities, promoting the raising of concentration of capital in the construction
industry. Construction Group can operate in all fields of construction. With
strong economic and technical potential, the construction corporation has a
strong position and competitive advantage in the construction market.
Thus, the expansion of the partnership, connection is an important
solution to enhance the competitiveness in the bidding of construction enterprises.
Economic linkages create conditions for enterprises to deepen the development of
specialization in an effective manner, exploit their strengths, overcome
weaknesses, adapt to the market mechanism to accelerate the application of the
achievements of scientific and technological advances, raising the efficiency of
production and business, and development of enterprises.
-

Qualification of Bidders: Competitiveness in bidding depends directly

on the level of preparation of bid documents which may be rejected in the first
round because bids do not meet the requirements of the Bidding document.
Bid preparation will require steps such as studying the bidding documents.

This work requires meticulous, serious, fully understand the content and
requirements of the bidding documents: Investigation of bidding environment,
14


bidding projects, survey of construction sites, elaboration of construction
plans, construction of bidding prices.
+ Bidding environment investigation: This is the investigation of the
construction conditions, natural, economic and social conditions of the
project, which directly affects the construction plan and the project cost.
Investigate the location characteristics of the construction site such as
geographic location, terrain conditions, geology, meteorology, hydrology,
transportation, communications, conditions for supply of materials and
material price, the ability to exploit raw materials on site, the conditions for
providing sub-contractor professional and labor, the ability to provide food.
The data, the information on the investigation need a short time requires the
level of organization, expertise, means of staff preparing the bid.
Competitiveness in bidding will be higher if enterprises have a plan to supply
materials in abundant quantity, the right type, quality assurance suitable for
construction works, reasonable prices ... This will help the company reduce
unnecessary costs, reduce the cost of the project, lower bids than competitors
while still ensuring profits.
+ Investigation of bidding projects: It is necessary to know the nature,
scope of bidding, the technical complexity, progress requirements, and the
time limit for completion of the items and the overall completion of the works
, source of capital, mode of payment, reputation, and capacity of the investor
+ Construction plan is an important step that has a decisive impact on
the bidding price. Having a reasonable construction plan will ensure the
construction of the works to ensure safety, quality and lower costs, limit the
unnecessary costs.

Determining the bid price is a complicated process with strict
requirements to be followed, which is one of the factors determining the
winning bid. This work is required by a professional team in close
coordination, rhythm and timeliness of the various departments.
15


Preparation of tender Documents is a very complex task and requires in
a very limited time. Bid quality is one of the basic criteria that determine
whether a bidder wins a bid.
1.2.2.2. Group of external factors
In addition to internal factors, external factors affect the competitiveness of
construction enterprises.
-

Policy and mechanism of the Party and State: Policy mechanism of

the Party and the State has a greater influence on the operation of enterprises.
The factors that govern the operation of the business include credit, antitrust,
taxation, compensation, support, environmental law, regulations in the field,
foreign trade, regulations on management of investment and construction ...
Government policy can create opportunities or threats for every
business. Political stability is a factor that enhances national competitiveness
in general and of enterprises in particular. One of the components of the
political factor is to influence the business of the business is the legal system.
The impact of the legal corridor creates favorable conditions for enterprises to
develop. In contrast, businesses will face many difficulties in the face of
continuous changes of law, weakening the competitiveness of enterprises.
In bidding, investors and enterprises participating as contractors must
abide by the general regulations and regulations of the State on bidding. It is

the system of legal documents; legal basis to ensure the operation of the
bidding process is conducted in a consistent, fair and transparent process. A
system of legal documents on procurement consistent, stable and in
accordance with other relevant laws will create a competitive environment of
equal, high efficiency in Bidding. This rationale will minimize the negative
side, maximizing the positive aspects of competitive bidding.
-

Stakeholders

include:

Owner,

competitors
16

consultant,

supplier,

market,


+ Investor: is the agency responsible for the comprehensive project before
the law. Therefore, investors have a great influence on enterprises participating in
construction bidding. If the investor has a high sense of responsibility, good
professional qualifications and good financial capacity, it will create healthy
competition in the bidding and the selection of the winning bidder will be
satisfactory, exactly, the opposite will create bureaucracy in bidding.

+

Consultancy

organization:

Consultancy

includes

designing

consultancy, bidding consultancy, supervision and inspection consultancy.
This can be done by one or more consultants.
Design consultancy is the consultancy organization responsible for
surveying, designing and valuating the cost estimates of works. An inaccurate
design file leads to inaccurate estimation and consequently the difficulty in
approving the price of the tender package.
Bidding consultants: Assisting the investor in the bidding include the
preparation of legal documents, compilation of bidding documents, receipt
and management of bids, assisting investors in evaluating, compare and rank
bids, synthesize documents on the evaluation process of selecting contractors
and make a bid evaluation report. Bid evaluation and proposal selection have
a great influence on the ability of the construction company to win, especially
when the bidders have similar chances to win the bid. Therefore, the
experience, qualifications and the impartial, objectives advice of the
consultant has a great influence on the bid winner of the contractor.
Construction supervision consultant: To follow the progress plan of the
contractor, check the construction schedule, supervise the construction quality, test
the construction works, urge the contractor to fully implement the contract.

Appraisal consultancy: To conduct the examination and re-evaluation of the
design work, results of construction, examination of the project's legality and
reasonability, and settlement reports.
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