Answer and process
Question 3 (20 marks) You are the project manager appointed by the owner of a manufacturing plant, which has asbestos present. You have coordinated a bidding process for a project for the removal of the asbestos. Five different bids were received and the associated detailed costing is shown in Figure 4. a) What criteria will you recommend are used to evaluate the bids, and why? (5 marks) b) On the basis of the bid evaluation criteria you have identified, select the contractor (e.g. bid) that you, as the project manager, would select and explain why. (15 marks) CGS Contracting Zone ABC ASB & Total Inc. Free, Inc. Environmental Company Control, Inc. Base $524,400.00 $560,000.00 $629,000.00 $719,000.00 $760,500.00 Bond $15,000.00 $11,200.00 $173,000.00 $21,800.00 $15,000.00 Total base bid $539,400.00 $571,200.00 $646,300.00 $740,800.00 $775,500.00 Schedule N/A 70 65 100 110 Shift (hrs) N/A 8 8 8 8 Unit prices Transite panels (st) $5.50 $5.00 $2.90 $5.00 $5.00 Pipe insulation (11) $35.00 $15.00 $9.75 $18.00 $15.00 Fitting insulation (ca) $55.00 $25.00 $25.00 $22.00 $17.50 Duct insulation (st) $9.50 $25.00 $12.00 $10.00 $12.00 Electrical wrap (11) $30.00 $20.00 $3.00 $20.00 $15.00 Penetration $30.00 $150.00 $19.00 $20.00 $60.00 gaskets (ea) Labor rates (per hour Laborer $28.00 $31.00 $49.00 $47.00 $57.50 Foreperson $35.00 $62.00 Supervisor $38.00 $40.00 $75.00 350.00 $70.00 Project manager $50.00 Other Equipment rates $72.00 $62.00 $50.00 $75.00 $87.00 (per day) HEPAS Disposable material Costs (cy) $28.00 PCB disposal N/A $8.00 $7.90 $10.00 $7.50 Alternate Deductions (less) Equipment removal ($12,000.00) ($5,000.00) (56,800.00) ($17.500.00) ($30,000.00) Total (deductions included) $627,400.00 $566,200.00 $639,500.00 $723,300.00 $745,500.00 Key sf = square feet; If = linear feet; ea = cach; cy = cubic yard Figure 4: Bid comparison spreadsheet for an asbestos project (Goud and Joyce, 2009) Question 3 (20 marks) You are the project manager appointed by the owner of a manufacturing plant, which has asbestos present. You have coordinated a bidding process for a project for the removal of the asbestos. Five different bids were received and the associated detailed costing is shown in Figure 4. a) What criteria will you recommend are used to evaluate the bids, and why? (5 marks) b) On the basis of the bid evaluation criteria you have identified, select the contractor (e.g. bid) that you, as the project manager, would select and explain why. (15 marks) CGS Contracting Zone ABC ASB & Total Inc. Free, Inc. Environmental Company Control, Inc. Base $524,400.00 $560,000.00 $629,000.00 $719,000.00 $760,500.00 Bond $15,000.00 $11,200.00 $173,000.00 $21,800.00 $15,000.00 Total base bid $539,400.00 $571,200.00 $646,300.00 $740,800.00 $775,500.00 Schedule N/A 70 65 100 110 Shift (hrs) N/A 8 8 8 8 Unit prices Transite panels (st) $5.50 $5.00 $2.90 $5.00 $5.00 Pipe insulation (11) $35.00 $15.00 $9.75 $18.00 $15.00 Fitting insulation (ca) $55.00 $25.00 $25.00 $22.00 $17.50 Duct insulation (st) $9.50 $25.00 $12.00 $10.00 $12.00 Electrical wrap (11) $30.00 $20.00 $3.00 $20.00 $15.00 Penetration $30.00 $150.00 $19.00 $20.00 $60.00 gaskets (ea) Labor rates (per hour Laborer $28.00 $31.00 $49.00 $47.00 $57.50 Foreperson $35.00 $62.00 Supervisor $38.00 $40.00 $75.00 350.00 $70.00 Project manager $50.00 Other Equipment rates $72.00 $62.00 $50.00 $75.00 $87.00 (per day) HEPAS Disposable material Costs (cy) $28.00 PCB disposal N/A $8.00 $7.90 $10.00 $7.50 Alternate Deductions (less) Equipment removal ($12,000.00) ($5,000.00) (56,800.00) ($17.500.00) ($30,000.00) Total (deductions included) $627,400.00 $566,200.00 $639,500.00 $723,300.00 $745,500.00 Key sf = square feet; If = linear feet; ea = cach; cy = cubic yard Figure 4: Bid comparison spreadsheet for an asbestos project (Goud and Joyce, 2009)
