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PROJECT TOPIC:  TENDERING AS AN EFFECTIVE TOOL FOR VENDOR SELECTION
Department:  Purchasing & Supply
AMOUNT:  10,000
FORMAT:   MS WORD
PAGES:  72
 
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Tendering has for a long time stood as an effective method of purchasing essential materials both in the public and private sectors. These procedures tend to protect the interest of the bidder and the purchaser and further tries to reinforce the concept of openness and impartiality when the parties involved are satisfied. Chapter one of this research work focuses on situation that pave way for the use of tendency , advertisement and bid list, method of tendering, open and selective tendering, disadvantage of tendering and his historical background of the company under review, statement of problems, research question, significance of the study, research hypothesis etc.In chapter two, the researcher reviews some facts drawn from the authors that relates to this project work. The general procedures of tendering pre-qualification of contractors, general principles of receiving opening and awarding contracts in the private sector and award of contract.Chapter three, welcomes research methodology which comprises the research design, the questionnaire design sampling the section procedures of respondents, data source, data analysis.While chapter contains the researchers presentation analysis and listing of hypothesis and his further observation from the company under review.

Finally, chapter five, the researcher summarizes, concludes and recommends areas of improvement. It also contains bibliography.

CHAPTER ONE        

1.0 INTRODUCTION

Tendering is widely discussed by the purchasing text books as an act by which submission of a quotation is made by a tender when so desired by a client, which may be an individual, a group of people, a company, government or any of it’s parastatals.According to Oyeku and Nwanneka (2001) tendering which is a widely acclaimed from purchasing is monthly used in local, state and federal government purchasing. It represents one of the three methods through which buyers can determine the price to be paid for goods a and services he purchases.Tendering also help the purchaser to obtain the best and supplier that can meet the requirement and it is usually required when the monetary value of the purpose purchases exceeds statutory naira limitation. Tendering is used sometimes in the private sector to obtain a fair and reasonable price especially in respect of contraction and service contract.Procedures associated with tendering are designed to protect the interest of both the tender and the purchaser and to reinforce concepts or openers and impartiality. These situations that pave way for the use of tendering, they are as follows: i. Where the monetary value of the contract is huge and high.ii. Where the sellers are technically qualified.iii. Where there many suppliers who are willing to bid.iv. Where the terms of delivery is very important. v. Where the specification of items or services must be discussed.

1.1 BACKGROUND HISTORY OF THE FIRM

This research work may not be complete if the company is not disclosed. Memories are an invaluable treasure. They are the building blocks of history and they constitute the crystal ball which illuminate our past, which light up our product and whose path the way forwarding the confused network which leads into the unseen future. When we look the right turn these cannot be future without a past and present. No wonder Kobi fola and module disclosed “at eighties” ministry of work and finance Imo state Owerri has joined the ranks of elders in the Nigeria business community.

1.2 STATEMENT OF THE PROBLEM

Tendering is effective tool for vendor selection. It has contributed greatly to the organization profit, there are so many advantages of tendering but problems associated with it.Tendering usually end with the lowest price tender getting the award of the purchasing firms gains a reputation for negotiating with the lowest tender after bids are opened. This will make future tenders not to offer their price initially believing that they do better in way subsequent negotiation. They will adopt a system of submitting offer low enough to allow them to be included in any negotiation. But initial offer will not be as low as when it is anticipated that the award will be made to the lowest tender without further negotiation.Tendering tend to great pressure on suppliers to reduce their cost to be able to bid as low as but profitable price this cost pressure may result in sacrifices in product quality development efforts and other vital services.

The real use of tendering appears to be widely understood, this system of pricing is frequently abused by both government and private establishment. It is because tendering has been stressed as the method of pricing and allowing able constituents their qualification. In reality, planning preliminaries correctly for tendering takes purchasing judgment of the highest planning specification proper selection to tight supplier collect quantities, precise delivery schedules, adequate time for placing bids and general economic analysis is done correctly, selecting the successful tender after the bids are evaluated are generally a routine matter, except in unusual circumstances the lowest tender should receive the order, purchasing judgment and analytical planning should normally be exercised before tendering are request not after the bids are in

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