It’s all because of the bidding process
Thread Content
Our company is a large-scale chemical enterprise with an annual production capacity of 800,000 tons of synthetic ammonia and 200,000 tons of methanol. In order to save energy, reduce consumption, and lower costs, the company introduced a bidding system at an early stage, with the principle of awarding contracts to the bidder offering the lowest price. The company was doing well, but due to several major accidents last year, it had to shut down for maintenance and restructuring. As a technician, during the rectification process, I identified various issues resulting from winning the bid at a low price: visible circular defects on the base material of many pipes and fittings, a high density of such circular defects, significant deviations in the outer diameter of pipes and fittings, pipes and fittings with different wall thicknesses, and the absence of any certification documents confirming their quality. Regarding chemical enterprises with extremely high risks, it is appropriate to use low-bid winning methods to reduce investment costs; we invite everyone to participate actively.
The bidding method is fine; it’s the evaluation criteria that are the problem. The bid evaluation score consists of commercial and technical aspects. The commercial aspects refer to factors such as price and payment terms, while the technical aspects include qualification documents, quality assurance systems, and operational status; the rationality and scientific nature of the design and structure of the equipment; the level of technical expertise and manufacturing capabilities; the reliability and service life of the system; guarantees regarding its main performance characteristics; past experience in manufacturing similar equipment; the scientific and comprehensive nature of the standards used; delivery times; the completeness of technical documents; and after-sales service. If one focuses solely on low prices and ignores technical evaluations, the problems mentioned by the original poster arise. This is caused by a one-sided understanding of the bidding process.
In addition to the bid evaluation issues mentioned on the second floor, another equally critical aspect is the construction management and inspection of the project; this is even more important. In any case, the bid documents generally meet the requirements specified in the tender, and whether or not the lowest bidder wins the contract, the winning party will strive to maximize its profits. As a result, it is common for them to cut corners and use substandard materials – this tendency is especially strong when the lowest price wins the bid.:lol Therefore, as the project owner, it is essential to exercise strict oversight and not rely blindly on the supervision company; professional personnel must be assigned to oversee inspections at every stage. When a company like LZ encounters such problems, the first thing that needs to be examined is corporate management, rather than the bidding system. :Q
This situation occurs in many, many places both at home and abroad.
There is nothing wrong with this bidding process itself; it’s likely that the person in your company responsible for handling the bidding didn’t exercise proper oversight and accepted bribes. According to the poster, the manufacturer involved in this project may not even have the necessary qualifications, yet the person in charge of the bidding failed to thoroughly verify the qualifications of the bidding companies. These are pressure vessels and pipes; the problems mentioned by the original poster simply cannot occur. Fortunately, there were no accidents such as explosions, so the poster can take it as some comfort for themselves, I guess
I have participated in bidding processes and have also served as a technical evaluator. In chemical companies, safety and quality come first, while price comes second. Therefore, those that win the bids are those with good quality and superior technology, rather than those with the lowest bid prices.
The people in charge of the project take bribes. To be honest, whether a bidding process is carried out or not doesn’t stop this from happening; sometimes bidding is just a formality!!! Whether or not a bidding process is used, when choosing suppliers, it’s still necessary to select companies with good reputations and high-quality products. When the technical requirements are met, it’s better to choose those with lower prices!! For the core components, I believe everyone will choose reliable options – even if the price is high, it’s still better to go with quality products!!
There are many tricks in the bidding process! There are also many unspoken rules! But it depends on how the company manages it!
I don’t know how many people will be blamed for what happened~~ The person in charge should have been put in jail by now
The bidding process is fair for the vendor side; whether the bidding is successful often depends on the quality of the bid prepared by the buyer side. If there are no detailed technical requirements nor reasonable criteria, it’s obvious that the outcome won’t be what the buyer side expects. I have participated in bidding processes as a buyer side member, as well as serving as an expert in evaluating bids. It’s very easy to find loopholes in the bids. Therefore, when problems arise and the manufacturer is blamed, people not only feel sympathy but also realize that the management level of the buyer side needs to be improved urgently: handshake
These days, for many foreign products that have only one agent, bidding processes are carried out; in reality, what’s required is for people to find a few additional agents who can obtain the products from the main agent and then submit quotes. It’s even possible for them to collude with each other, allowing bids with exorbitantly high prices to still win the bid! ! ! ! ! ! ! !
There’s nothing wrong with the bidding process itself; the problem is that you didn’t do a proper job in overseeing it! ! Although, in principle, the bid with the lowest price should win, it is also important to consider the qualifications of the construction company. Additionally, during the construction period, there must be a dedicated person responsible for carrying out inspections throughout the process!
Tendering and inspection cannot be separated at all; if no technical evaluation is carried out during the bidding process, it’s possible that items purchased do not meet the technical requirements. Similarly, without inspection, defective products will end up being accepted. Inspection also needs to be divided into different levels depending on the importance of the equipment – for very important equipment with long installation periods, on-site inspection is essential. Judging from the poster’s situation, it seems that your company does not have any receiving inspection procedures.
It’s because your inspection staff failed to keep up. Generally, once the goods arrive as part of a bidding process, is there any need for further inspection? It can only be said that your inspection staff lack the necessary skills or have insufficient sense of responsibility