Many project organizations underestimate the importance of rigorous Tendering/ Proposals process. In particular, measuring the number of awards obtained is irrelevant if those projects awarded cannot be executed without major changes, delays and overruns. Our new Expert Paper 2015-02 \’Eight Principles for Sustainable Proposals Management\’ by Kamlesh Narwani concentrates on the best practices that need to be implemented in the Proposal process to ensure sound proposals that can effectively be executed. It proposes 8 key principles that should be applied in all Proposals processes.
- An Achievable Execution Strategy
- Robust Supply Chain
- Relevant Project Organization
- Adequate Project Contingency
- Relevant Contracting Philosophy
- Pricing for Achievement
- Handover – Transfer to the Project
- Proposal Team Engagement During Project Execution
Find more details about these 8 topics and more in our new Expert Paper 2015-02 \’Eight Principles for Sustainable Proposals Management\’ by Kamlesh Narwani!
Kamlesh,
thanks for the insightful article, can you share some of your experience on PROM provisions and how to account for them? thanks
Vincenzo
Vincenzo,
My generic experiences with PROM during proposal:
A) Utilize the in-house risk managers to apply the Company prescribed scientific process & tools i.e. risk registers, risk mitigation, schedule and cost quantum quantification (@risk, pertmaster)
B) Leverage work from previous similar proposals in terms of risk identification, etc. to reduce process time.
C) Obtain a contingency amount, & an itemization of the same proportioned to each PROM event.
D) Recommend the same to proposal team for pricing.
D) As the PROM event occurs, consider to release the proportioned assigned amount.
With experience, Companies may build contingency norms for different proposals types e.g.% of costs. Management can chose to make certain adjustments (to margin or contingency provisions) accordingly.
The above contingency rigor has much merit.
The norm application is a calibration / confidence measure, and not a replacement.
All the best.
God Bless.
Kamlesh.
Thanks a lot!
best regards
Vincenzo