The Royal Institution Of Chartered Surveyors Construction Essay

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Since there was no municipal sewer line in the vicinity of the site, the viable option was to have a standalone sewage treatment plant (STP) of 3000 metric cube capacity. Even though the project construction budget was capped at AED 202,500,000 in which AED 3,450,000 was allocated as a provisional sum for constructing the "STP". Due to the unique importance of the Project, the Project Manager has decided to investigate the possibility of recycling the waste water originating from the toilets to be treated in the "STP" which can then be used for the purpose of Landscaping /Irrigation, provided the initial cost of STP is within the allocated budget and by considering the "Life Cycle Cost" and obtaining "Value for Money"

The Contractor has submitted 3 proposals from specialist contractor's M/s Metito (Overseas) Limited, M/s Global Engineering Systems and M/s Eagle Electro Mechanical Company for the amount of AED 5,040,000, AED 4,110,000 and AED 9,290,000 respectively excluding Contractor's OH & Profit, Civil Works & Operation & Maintenance Cost to the Engineer,M/s Shadid Engineering.

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Even though "the Engineer" has recommended Mettito for the job, I called upon both parties Metito and Global separately for an initial meeting and explained to them the importance of this project and future potential on them after successful completion of the project. It was noticed that the basic cost for the "STP" was comparatively close for both Metito and Global with a difference of AED 212,000.The major difference is observed for the cost of civil works compared to Metito's AED 981,000 to Global's AED 175,000.

I applied the Golden principles of Negotiations, that's "IF and THEN". After discussing and getting the consent from Project Manager, I explained to Global about our budget limitations and hence offered a suggestion that "IF" they could provide a discount of AED 1,510,000/- from their original proposal of AED 4,110,000 and to finalize the Contract price to AED 2,600,000 Million, highlighting that the given discount may be considered as an advertisement cost for getting a stepping stone in SAMA DUBAI projects and for the long term relationship with the Client THEN" I can consider awarding the Contract to Global.

As METITO is an established firm in the Market with high reputation in terms of resourses and corporate capabilities. I decided to verify the information in hand of Global Engineering. I along with the project manager visited one of their completed projects in Sharjah free zone. It was observed that Global have completed the project as per local authority standards with adequate quality and on time.

We also visited Global's UAE Head quarters in Sharjah free zone to access their office setup and to check whether they have competent staffs to achieve their design responsibilities and management & operational capabilities. We found Global have a young dedicated professional team who is capable of achieving the target in terms of Quality, in time and have a financial capacity to complete the project within the budget.