Financial and Human Resources Management - SEEN EXAMINATION Essay

Financial and Human Resources Management - SEEN EXAMINATION - Essay Example These documents seek to show the possible cost of successfully carrying out the construction project, if it is awarded. In contrast, tendering refers both to the refinement of conditions in order to arrive at the final and most rational price, and the, contractual terms that must be submitted to promoters or their representatives. The second phase (also referred to as bid adjudication), entails evaluation of the probable margins of error in established cost estimates, potential risks, as well as the likely financial impacts of completing the project. Decisions that are made by executive personnel in regard to bid adjudication are usually confirmed at a formal convention as Gray and Larson, (2003) notes. Such a formal meeting to make decisions in regard to bid adjudication occurs several days prior to placement of the final bid. This provides adequate time for clear assessment of bid credentials before actual tendering. The formal meeting also ensures that all the relevant information is taken into account before a contractor is chosen, thus avoiding selecting a contractor that cannot fully deliver on project requirements. The considerations made by managers include factors such as acute competition, uncertainty in cost estimates, inadequate or poor information regarding a particular project, and risks associated with production or project implementation. These aspects must be sufficiently analyzed, since, as Akintoye and Fitzgerald (2000, p. 164) suggest, â€Å"the most significant factors resulting in inaccurate estimates include insufficient time for tender preparation; poor tender documentation; insufficient analysis of the documentation by the estimating team and lack of review of cost estimates by company management.† Despite the wide assortment of challenges, executive personnel have to make appropriate adjudication decisions based on these factors. The aspects that influence management’s decisions during the crucial tendering process and ad judication in particular can be classified, according to Betts (1990, pp. 402-408), into three categories including job, market, and company related factors. The first class of job-related aspects, accounts for elements that are directly linked to the specific project or project type. Most of these factors are evaluated in the course of preparing bids and an analysis of these aspects is conveyed to relevant parties in the adjudication convention. Market-related decision making factors, account for the external influences, such as competition from other contractors. Analysis of aspects like external competition may enable the respective firm to formulate strategies that would aid in increasing competitive advantage. Finally, as Betts (1990, p. 403) states â€Å"company-related factors that influence decision making in the adjudication process, include: the business’ goals and objectives, as well as, its corporate policy on bidding.† Adjudicators, usually comprised of se nior directors or managers, are supposed, as Young, (2003), notes, to evaluate the aforementioned factors and related information, in reviewing project cost estimates and finalizing the price of the contract. As shown in the assessment above, there are numerous considerations in the tendering process. Therefore, decision makers must fully comprehend the stipulated objectives and goals of the process, in addition to estimated project costs, in order to ensure that tendering is fair and that it is aligned with the