e-tool

1. Construction Development Board Ministry of Works & Human Settlement e-tool (online tender evaluation developed based on New Point Based System for selection of contractors) Chencho Tshering

2. e-tool is a web based online evaluation tool. • it is developed based on New Point Based System. • only the evaluation stage/phase is done online. • launched on 1st May 2011. • Uniform/standard evaluation system. • Save evaluation time. • Centralized Construction Industry Information.

3. two stage evaluation process 1st Stage Bidder Qualification Criteria Qualification Parameters (100%) CAPABILITY (70%) Similar work Equipments Key Personnel Past Performance CAPACITY (30%) Bid Capacity Credit Line ≥ 65 Financial Parameters (90%) 2nd Stage Combination of financial and Preference parameters Price Preference Parameters (10%) Status (incorporated, proprietorship, JV etc.) Employment of VTI Graduates/ local skilled Labour Commitment for internships to VTI graduates +

4. SIMILAR WORK EXPERINCE (10%) CDB DATA BASE Similar work experience from last 5 calendar years BID CAPACITY (10%) 2*A*N-B A=average turnover of last 3 yrs N=estimated duration of the project B=portion of ongoing works overlapping cp AVERAGE PERFORMANCE SCORE (10%) Average performance score from previous work( past 5 calendar years) E-TOOL CREDIT AVAILABLE(20%) Credit Line available (unused). (Score based on letter of credit provided by the bank) AVAILABILITY OF MANPOWER( 25%) Availability of Manpower (This parameter evaluates contractors on their ability to deploy personnel with suitable qualifications and experience) ACCESS TO EQUIPMEN(25%) Access to adequate Equipment (100% marks if equipments are owned and 75% if hired)

5. To calculate similar work experience : Agg. Size of 3 similar works/ 1 largest Single workEstimate of Current Project Similar work experience = x 100 To calculate Bid Capacity : Bid Capacity = 2 * A * N – B To Calculate Credit Line : CF = E/N*3 Therefore Credit line available = CA / CF * 100

7. Award the work as per AC’s decision on e-tool Update completion form on e-tool

8. Request for WORK ID & upload NIT/IFB in print media & on CDB web PROCURING AGENCIES Dzongkhag Departments Divisions Sector Geog FOCAL PERSON ( Member of Tender /Evaluation Committee) Submit bidding document & set criteria for work Evaluate bids online (Evaluation Committee) Submit evaluation report & award work Site engineers/mangers submit completion for updating on e-tool

9. e-too status as of 8th -Feb-2012

10. Questions ??? TashiDelek

11. Construction Development Board Ministry of Works & Human Settlement NEW SYSTEM FOR CONTRACTOR CLASSIFICATION Chencho Tshering www.cdb.gov.bt

12. Outline of the Presentation • Objective • Old Classification System • New Classification System

13. Program Objective • To introduce the new system for contractor classification that allows more flexibility and opportunities to the contractors in execution of works to their best capacity and capability

14. Old Classification System

15. Requirement for the old system:- 1. Financial Capacity Note** Not applicable for class D (petty)

16. 2.Equipments and Facilities

17. 3.Human Resources:-

18. 4. Track Record:-

19. 4. Track Record contd……:-

20. New Classification System

21. Special features of the New system:- • Financial Capacity – No requirement for all the classes • Track Record – No requirement for all the classes Objective • To provide opportunity to new, young & promising contractor to perform and grow • To overcome the shortage of contractors especially in the higher class • To give weightage to experience and qualification of key personnel in the firm rather than giving weightage only to firm’s experience • However the requirement of firm’s experience is also important to some extent, therefore this requirement will be tested during bid evaluation

22. 1. HUMAN RESOURCES:- Note: All large contractors must incorporate within 1 year of registration

23. 2. EQUIPMENT REQUIREMENTS:-

24. Issues:- • Direct Entry • Direct entry is permissible in the old classification system as well. However the old evaluation system discourages bids of direct entry. • Mismatch between work volume and number of contractors. Therefore more contractors are needed in higher classes. • Equal opportunity for all capable contractors to participate in the booming construction sector • To increase competition such that efficiency improves

25. 2008-2009

27. Issues contd…..:- • 2. Incorporation for Large Class • Encourage more professional management of the construction company in terms of book keeping, HR Policies etc. • Incorporated companies are considered better employers and people prefer working for such companies. • Incorporated companies will find it easier to enter into collaboration with international engineering and construction companies for large or technically complex projects. • Incorporation allows government to get more accurate and organized data and information about the industry and to accordingly frame policies for the welfare of the industry.

28. Number of Contractors/Consultants/Architects(as of 8th Feb 2012)

29. Thank You!!