Topics: Risk management, Risk, Breach of contract Pages: 2 (597 words) Published: August 25, 2013
This investigation has been conducted for the purpose of identify areas of potential risk and those elements which would specialist attention in the process of prepare and evaluate tenders documentation. 2. OBJECTIVE

• Evaluate the risks associated with each tender carefully, to ensure that it is in your organisation’s best interests to respond • Establish an effective team to develop the bid and work to a realistic schedule that will allow the team to produce a thorough response within the available timeframes • Oversee the development of human and physical resource cost estimates very carefully, to ensure that the tendered price is accurate and comprehensive of all likely costs • Prepare the response carefully, to ensure that it meets all necessary requirements and evaluate it to ensure that it is accurate and professional • Gain the necessary endorsement or approval before submitting the tender response to the client. 3. Top 10 risks

List of potential risks that should be assessed when responding to Requests for Quote or Tenders. These risks are generally the same as those you would identify for any building and construction project: 1. What constitutes a breach of contract and what is the resultant impact. Will a breach trigger termination, or will it require make good or rectification at your own cost? Can you terminate the contract or can it only be done by the client? 2. Delays caused by circumstances outside the builder's control, such as: a. Delivery delays that delay project completion

b. Subsequent delays in progress payments
c. Labour shortages
d. Weather
Are you liable for any delays and what is the impact of this liability? 3. Exposure through clauses that work against the building organisation, such as clauses that hold the builder responsible for circumstances outside their control. 4. Disputes over payments, either payments from the client to your organisation or payment from your organisation to subcontractors....
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