By Bill Morrissey of Master Electricians Australia

This article appeared in the May 2021 issue of Circuit Magazine

You have decided to submit a tender price to a few builders for a project or submit a tender for a council or government contract.

After submission there is normally a few weeks for the tender client or client superintendent to review the tendering documents.

You may get feedback over the phone and clarification requests which may require some adjustments. It then becomes a waiting game.

Hopefully, the call comes in – you won the tender; you immediately go straight to your drawings and pricing and triple check your figures and think: what did I miss?

Read more from MEA

• SA ladder blitz: 100 notices already issued
• Unlicenced worker fined after customer shocked
• Tax return checklist for electricians

Your first priority should now be to set up a meeting either in person or via teleconference to get structured, formal feedback about your tender. Don’t immediately switch to contracts, scope and requests for information and scheduling. The meeting process provides a unique opportunity for learning and demonstrating your businesses continuous and comprehensive improvement approach to tendering and project delivery. The client will be more open and upfront following your appointment as you are about to be engaged for the contract.

Most tendering opportunities have two to three close competitors and, while there is natural enthusiasm by contractors to get on with delivery, seeking feedback completes the procurement process. This allows you to work on reported weaknesses and bolster recognised strengths.

Feedback from the client in practical areas such as safety systems, subcontractor management, governance, and schedule provide you with understanding of client concerns and sensitivities for future tenders.

When holding the first face to face meeting with the client present yourself and the business professionally. Be prepared, know the scope and your figures, and fully define the roles and responsibilities of stakeholders and others. This can be used to determine who will really need to approve what. The client by this stage should have a schedule or project plan (Gantt chart or equivalent). Ensure that you identify key project deliverables and obtain a copy of their schedule.

Review the contract, get assistance if required from your lawyer. Ensure that the contract aligns with your scope and tendering terms and conditions. Sign, and send the contract.

Initiating the project

As with any good project (or plan), preparation is vital. The initiation phase is where the project scope is determined, and the project foundation is created.

The initiating process includes a high-level overview of the project. Project phases and overall budgets are also determined during this stage. This is where the project team is created.

If this stage is rushed, taken lightly, or skipped altogether, the success of your project is greatly diminished.

Planning the project

At its core, project management is all about coordinating your resources. If it was not addressed as part of your tendering documents, is your safety management system up to date and appropriate for the job? Are your SWMS and risk assessment processes suitable? Do you have enough team members? Do they have sufficient skills or is extra training, licences, or skills required? Consider tools and equipment required, location for resources, suppliers, deliveries, parking. Do you have sufficient financial reserves or access to money?

These things and more need to be considered to complete a project as efficiently and successfully as possible. Project management is about the project objectives, tools, and techniques you use to guide your team to success in the day-to-day and over the longer term.

Depending on the size and time frame of the project you need to define roles and responsibilities, will you run the project, you may need a project manager. If you have been awarded the contract as the principal contractor, this must have been factored into costs as compliance requirements for a principal contractor running sub-contractors can be onerous.

‘The devil is in the details’

With all the different frameworks, jargon, and acronyms, project management often feels overwhelming. There’s PMBOK, PRINCE2, RAM, WBS, Gantt charts, Kanban and the list goes on. Take the time to ensure you understand the acronyms and terms being used by your customer as something as simple as misunderstanding a term can make a big difference to the project, customer satisfaction and costs.

During planning it is important to set key milestone dates as well as a final project completion date. Be very clear and intentional with project timing. Dates and times can undoubtedly change based on unforeseen circumstances but putting a stake in the ground ensures all team members are aiming towards the same goal. Align your plan/schedule very closely with your clients. Ensure that progress payment terms have been set up, so you are not going to go broke waiting for other trades to complete their works, and this is where a good contracts lawyer is worth the money spent on them.

If there is a chance the project could run over the completion date, ensure you have identified and understand potential issues that could arise such as liquidated damages, financial penalties, staff or equipment availability, conflicts with other projects etc. Be aware of formal notification processes for delays and how to submit notifications if required.

The tax office is also interested in sub-contractor arrangements, so ensure your office is aware of your annual compulsory payment reporting requirements.

Without a project scope, things either fizzle or spiral out of control. Be sure to spend significant time on this schedule.

Ensure your project manager has all the relevant documents and details including, tender drawings, quotes, tender letter, contract, schedules, safety management system documentation, sub-contractor details and your expectations.

14 basic categories need to be controlled by the project manager

1. Mobilisation
2. Coordination
3. Documentation control
4. Communication
5. Scheduling
6. Scope and variation
7. Cost control, progress claims and invoicing
8. Sub-contractor management
9. Materials Management
10. Tools management
11. Labour management
12. Safety management
13. Quality control
14. Project closeout

Execution and monitoring

At this point it is all about getting the job done. During execution, the team ensures the pre-determined deliverables are delivered. At this stage it is easy to lose sight of where you are at any given point in the project versus where we should be according to the project plan. To deliver a successful project it is critical that you ‘check-in’ consistently with the project. Project documentation and tracking is a key component to control of the project. This can be accomplished through Kanban boards, Gantt charts, and many other means.

No matter how it’s done, keeping an eye on progress and step-completion means project teams can quickly identify when a project has derailed and get it back on track quickly and efficiently.

If the scope changes (variance) at any time during the project (which is likely), it is important to document the changes and submit them to the client. Make sure changes are agreed in writing to avoid disagreements about price, what was delivered and expectations at a later date.

Closing the project

The final step, the ‘project delivery’. Everything is wrapped up and the final product is delivered.

As the contract officially ends, it is highly recommended to hold a full review or audit of the project. What went well, what did not go as planned, actual hours versus tendering hours, actual material cost versus tendering material. This review gives future tenders, teams, and projects valuable information to learn from.

Finally poor communication is a death knell for any project, so is not having a strong engagement with the stakeholder. Manage these two areas well, and you will avoid many pitfalls along the way.

Master Electricians have unlimited access to the MEA Technical, Safety and Employer Advice hotlines. Become a Master Electrician today, call 1300 889 198.