Answers Kim Reddy
Future Performance Training
Forum: PM Case Study 8 - To Bid or Not to Bid
Some people believe the primary critical factor for project success is the quality of the estimate. Unfortunately, not all companies have estimating databases, nor do all companies have good estimates. Some companies are successful estimating at the top levels of the work breakdown structure, while others are willing to spend the time and money estimating at the lower levels of the work breakdown structure.
In organizations that are project driven and survive on competitive bidding, good estimates are often massaged and then changed based on the belief by management that the job cannot be won without a lower bid. This built-in process can and does severely impact the project manager’s ability to get people to be dedicated to the project’s financial baseline.
Instruction:
Read through the case study provided and answer the questions in this forum. You will be graded on by the assessor and your peers on this case study.
2 discussions
1. What are factors should
Marvin and his team consider?
Marvin should have had subject matter experts to asses client expectations, overall market conditions, assensing the client expectation, project scope, timeline, budget constraints, and team expertise. Review the bidding documents and rely on historical data similar to this project. Throughout risk analysis and evalulating client relationship.
2. TO bid or not to bid?
Bidding has always been Marvin thing for this client he has work with before and where estimate costs was given/available.
In this scenario bidding has high degree of uncertainty, meaning outcomes in terms of timelines and cost are hard to predict.
Estimating is more recommended for long - term projects. There needs to be expert in the project domain, available resources, project scope clarity and potential profitability. Alignment with the long term business goals. Rather sit this one out has there is more cons than pros.