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A different way to award jobs
16 Apr 2017 (40 views)

The logistics app shows a different way to award jobs to contractors.

In the app for a courier service, the customer provides the details of the delivery (i.e. pick up point, destination and type of package to be delivered) and indicates a price. Any delivery person can pick up the job.

The customer does NOT ask the delivery person to give a quote. Instead, the customer indicates a price for the job. The price is worked out by the software in the app.

This is an alternative way to award a contract job for providing a service. Instead of asking the bidders to submit a price quote, the customer indicates a price for the service (with help from the app) and the contractors bid to accept the job.

The taxi app also uses this approach.

Instead of asking contractors to bid for a construction or engineering job, the government could get the quantity surveyor to price a "fair price" for the job by taking account of the cost of materials, labor and profit mark up. 

The bidders can decide if they have the resources to accept the job. If there are several bidders, the contract can be awarded to the bidder who is more likely to complete the job on time and to the expected quality.

This method reduces the cut throat competition between the contractors and ensures that they can make a reasonable profit margin. They do not need to reduce the quality of the material or workmanship. They can afford to build a team of workers who have greater certainty of a long term employment, provided that they keep up their skills.

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A different way to award jobs
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The logistics app shows a different way to award jobs to contractors.

In the app for a courier service, the customer provides the details of the delivery (i.e. pick up point, destination and type of package to be delivered) and indicates a price. Any delivery person can pick up the job.

The customer does NOT ask the delivery person to give a quote. Instead, the customer indicates a price for the job. The price is worked out by the software in the app.

This is an alternative way to award a contract job for providing a service. Instead of asking the bidders to submit a price quote, the customer indicates a price for the service (with help from the app) and the contractors bid to accept the job.

The taxi app also uses this approach.

Instead of asking contractors to bid for a construction or engineering job, the government could get the quantity surveyor to price a "fair price" for the job by taking account of the cost of materials, labor and profit mark up. 

The bidders can decide if they have the resources to accept the job. If there are several bidders, the contract can be awarded to the bidder who is more likely to complete the job on time and to the expected quality.

This method reduces the cut throat competition between the contractors and ensures that they can make a reasonable profit margin. They do not need to reduce the quality of the material or workmanship. They can afford to build a team of workers who have greater certainty of a long term employment, provided that they keep up their skills.

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