1. What other factors
should Marvin and his team consider?
To bid or not to bid on a job is a
strategic decision for Marvin’s organization.
The factors which Marvin has taken into consideration so far before
bidding are – 1. It is a long term project from one of their important
clients. If they get this contract, then
it would be the largest contract Marvin’s organization has had. 2. The new RFP is released by the client and
the contract is cost-reimbursable.
Earlier projects were Firm Fixed Price (FFP). WBS mentioned on clients RFP has a breakdown
of 5 levels. Factors which they should consider apart from the ones mentioned
They have talked about how long the
contract is, but they haven’t talked about the type of project that they are
going to get. Knowing about the project helps us to put in the organizations
experience and resources promptly.
There are also some objective considerations
like – what will the bid cost (time/money)?
What is the probability of winning the bid? Is the contract profit potential?
Subject considerations like – who is the
competitor? Should I win the bid just to maintain the insider edge with the
client or should the competitor win?
2. Should they bid on the job?
Being a project driven company and
winning many competitive bids. I personally feel Marvin and his team should bid
on the job. Reason being, 1. This
contract is from one of their important client, hence it might give an edge
over other competitors. The reason why
they are hesitating is they do not want to expose the cost structure of the
organization to the client. True, but
then again they earn more profit in the long run and will maintain good
with the client.
R. (n.d.). Factors that affect bidding decisions/behaviour of construction
companies and a description of 2 contemporary bidding models. Retrieved
November 01, 2016, from http://www.academia.edu/1084098/Factors_that_affect_bidding_decisions_behaviour_of_construction_companies_and_a_description_of_2_contemporary_bidding_models
TO BID OR NOT TO BID, THAT IS THE QUESTION…7
FACTORS TO … (n.d.). Retrieved November 1, 2016, from