Company that would be awarded the contract if categories of quality and price are given 80 % and 20% weight respectively. Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Simplex Method Three types of paints are manufactured in one machine; Interior paint, Exterior paint and Paint for metal structures. The preparation time for each type of paint is 2, 3 and 4 minutes respectively and the processing time is 3, 2 and 1 minute. The profit contributed by each product is 12, 10 and 15 dollars respectively. The machine availability is 100 minutes and 200 minutes for machine setup. 1. Determine the optimum number of types of paints to be manufactured. 2. Determine the optimal utility value.

The company LED S.A DE C.V. produces 2 devices for lamps, devices 1 and 2 that require metal parts and electrical parts. The manager wants to determine how many units of each product should be manufactured to maximize the profit for each unit, device 1 requires 2 metal parts and 4 electrical parts, device 2 requires 4 metal parts and 2 electrical parts, the company has 24 units of each material available for batch production, device 1 generates $4 profit and device 2 generates $6 profit. a) Formulate PL model. b) Solve by the graphical method and determine what is the resulting maximum profit. Translated with DeepL.com (free version)

Question 3 i. Using the Center of Gravity method, determine the optimal location (X, Y) for the new distribution center. [7 marks] [TOTAL 25 MARKS] Time (sec.) Power steering assembly firm wants to set up an assembly line which must have an output of 60 units per hour. The work elements, task times and their precedence relationships are shown in Table 2: Table 1 Work Element Immediate Predecessor(s) A 30 NONE B 26 A C 50 A D 44 B E 10 с F 20 с G 15 D.E H 30 E,G,F Required: a. Draw the precedence diagram showing the task precedence and their times b. Determine the cycle time associated with the rate of output required. [3 marks] c. What is the theoretical number of work stations required to satisfy this output rate? [3 marks] [4 marks] d. Allocate the tasks to work stations taking into consideration the precedence requirements and using the LOT rule to break ties between feasible tasks. e. Calculate the total idle time [8 marks] [3 marks] f. What is the efficiency of the line and the…

Answer 2

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Answer 6

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Answer 7

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Answer 8

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 4DQ Ch. 9 - Prob. 1P Ch. 9 - Prob. 2P Ch. 9 - Prob. 3P Ch. 9 - Prob. 4P Ch. 9 - Prob. 5P Ch. 9 - Prob. 6P

Concept explainers

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 9 Solutions