Reference no: EM132218295

Question: Marvin and his company have the practice of two level work breakdown structure for bidding as most of the projects are firm fixed price. As Marvin's company look forward to new clients with new requirements, along comes the opportunities and risks.

Bidding involves contractors making strategic decisions as it concerns the financial, managerial, manpower and physical resources of the firm before considering embarking on the project (Odusote and Fellow, 1992).

The factors should Marvin and his team consider are:

• After clearly understanding the scope of the project and it being a long term contract the team should consider whether the company has all the resource to execute the project. It includes checking on the funds available, human resource and time.

• They should consider if bidding for the project is profitable for the company. They should clearly estimate the cost required to complete the entire contract and if it falls within the allocated budget as per the company norms.

• Every company has their own long term goals and strategies. Hence should consider if the contract they are going bid fall under it.

• They should analyze the risks and its impacts of the contract and go ahead for bidding. They should withdraw if the probability of risk is too high.

Should they bid on the job:

Yes, they should go with bidding. Considering the following factors -

• Being a long term project this leads to numerous opportunities and better revenue.

• In the current market, being competitive and taking a risk makes the company thrive.

• More opportunities in the form of new projects from the same client or new clients considering the fact that it is a long term project.

• Vast experience to the company enhancing experience from a both managerial and technical standpoint

• Being a long term project, depending on the results and the outcome is going to lead to good relationship with the client and better understanding.