Online Contract Awarding System
Online Contract Awarding System
INTRODUCTION
The assessment of bidders and award of contract project procurement system is widely seen as
one of the greatest barriers to improvement. In Nigeria, like many other countries including the
U.S., it is mandated by legislation that construction contracts for public work projects be
procured using a competitive sealed bidding process and awarded using assessment of bidders
system. Under this assessment of bidders system, contractors submit bids based on plans and
specifications prepared by the public agency or a private engineering firm hired by the agency
and except under extraordinary circumstances, the contractor submitting the lowest responsive
bid is awarded the construction contract. In all but a few cases, experience levels of the
contractor, quality issues, and other criteria are not taken into consideration in awarding these
contracts. While the assessment of bidders procurement system has a long-standing legal
precedence and has promoted open competition and a fair playing field, a long-standing concern
expressed by owners and some of their industry partners is that a system based strictly on the
lowest price provides contractors with an incentive to concentrate on cutting bid prices to the
maximum extent possible (instead of concentrating on quality enhancing measures), even when
a higher cost product would be in the owner’s best interest, which makes it less likely that
contracts will be awarded to the best-performing contractors who will deliver the highest quality
projects. As a result, the assessment of bidders system may not result in the best value for
money expended or the best performance during and after construction. Moreover, the
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rather than cooperation or coordination among the contractor, the designer and the owner, and
the owner generally faces increased exposure to contractor claims over design and
constructability issues.
In today’s construction climate, public sector owners are finding themselves under
increasing pressure to improve project performance, complete projects faster, and reduce the cost
construction industry has experimented with alternative procurement and contracting methods.
Many construction owners in the U.S., for instance, are implementing (Alexanderson, G. and
Hulten, S. 2006). procurement to improve project quality and enhance performance. In essence,
best-value procurement incorporates factors other than just price into the selection process to
The aim of the research presented in this project is to assess the impact of assessment of
bidders on performance of major work projects (in terms of schedule, cost, quality and safety) in
Nigeria construction industry. The study will form the baseline for developing a proposal for
This project is focus on the designing of a contract Bidding System of the Nigeria institute of
Leather and Science Technology (NILEST) Samaru Zaria Kaduna State with the case study of
works Department, The manual system faces a lot of problems in accuracy of information as
everything is done manually and many others. The computerized system will be easy to handle
and can eradicate most of the problems encounter in the Manual method.
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1.2 HISTORICAL BACKGROUND OF THE STUDY AREA.
The Nigeria Institute of Leather and Science Technology, Samaru Zaria was established in 1964
following the request of the then Northern Region Government to Federal Ministry of
Agriculture and Natural Resource. It was name Hide and Skin Demonstration and Training
Project. The food and Agriculture Organization (FAO) and United Nations were commission to
commence a feasibility study on the development of the abundant raw Hide and Skin in the
country. In 1971, the U submitted a technical report which among other thing proposes the
upgrading of the center to a research Institute that will carter for the Leather, Leather product
and other allied field. Before then, the name of the center was Federal Leather Institute, Zaria
and was offering in service training for certificate and Diploma in Hide and Skin Improvement
Technology.
A year after 1973, the Institute was changed to Leather Research Institute become a division of
the National Science Technology Development Agency (NSTDA) which was later transformed
to the Federal Ministry of Science and Technology in 1988, the institute evolved yet again by the
expanded mandate and inclusion of Chemical Technology, which resulted to the change of name
to National Research Institute for Chemical Technology (NARICT) with the Headquarter in
Basawa, Zaria. In 1991, samara center attained semi-autonomous status and was named Federal
Collage of Leather and Science (FCLT) Samaru, Zaria. The name was change to Federal Collage
of Chemical and leather Technology (CHELTECH) Samaru, Zaria in 1992. Following the
Resolution at the National Science and Technology summit at Minna in 2006, the Research
mandate on Leather in NARICT and all extension centers (Sokoto, Kano, Maiduguri and Jos)
were officially on the 26th June, 2009 Transfer to CHELTECH, thus reverting back the status of
the research Institute. On 1st April, 2011, the name of the Collage was changed to Nigeria
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Institute of Leather and Science Technology (NILEST) to properly position it in the line with its
Below are some of the problem encounter in the manual system of bidders and assessment of
contract in NILEST.
ii. Delay in the process of the application either as a contractor or consult Zant as
iii. Inconveniences by both the applicant and the staffs of works department Nigeria
iv. It is time consuming, stressful and creates room for error which in turn makes it
1.4 MOTIVATION
My motivation for written this project is in my desire to impact in the institution by using
computer Technology such as PHP, CSS, HTML to design the software that will correct the
mistake and the inaccuracy in data management of contractors bidding for Contract in Nigerian
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1.5 AIM
The aim this project is to design and implementation of an online contract bidders system with
the case study of works department Nigeria Institute of Leather and Science Technology
1.6 OBJECTIVES
i. To Design the software using different programming Language such as HTML, CSS,
PHP, bringing them together to design the Contract Bidding System for Automation
ii. The information of the manual system will be needed to build up the system
iv. It will accept the data of the bidders and previous licecse of the previous contract.
Is the appreciation of the role of computer to improve works department Nigeria Institute of
Leather and Science Technology (NILEST) Samaru Zaria, Kaduna state and services rendered to
Also, the automated Assessment of Bidders for Awards of Contract it will be of no doubt an
acceptable phenomenon for Making work simple and easy access of information for bidder of
To prepare a set of automation that can help to improve the bidding and procurement practices.
These study will be conducted through observation and interviewing exercise. It targeted the
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works department who are responsible for conceiving and funding the project. To identify the
problem involve in the bidding and procurement existing in the construction and bidders of
contract in Nigeria Institute of Leather and Science Technology (NILEST) Samaru Zaria Kaduna
State.
iii. Due to lack of finance i will not be able to host the system design online.
iv. The system will have a data base to store all data of the bidders, for the admin to
Contract: An agreement between two or more parties, to perform a specific job or work order
Assessment: The act of assessing or an amount of tax, levy, or duty or the Appraisal or
evaluation.
Design: A plane with more or less detail for the structure and function of an artifact, Building or
system.
Award: The paper containing the decision of arbitrators; that which is awarded.
engineering and to other fields. It can also be the building process rather than the design process.
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Post-qualification: Only the lowest responsive bidder is qualified for the State transportation
Contractor licensing: State-sponsored program to ensure that only qualified contractors can bid
Website: is a collection of public accessible, interlink web pages that shear a single domain
name.
Web pages: Is a hypertext document for the World Wide Web that is identified by a unique
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CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
Highway Research Program (NCHRP) Synthesis 390 (2002), reduce a marginal contractor’s
bidding capacity in various ways, and thereby avoid “subsidizing” poor performance, interviews
and those cited in NCHRP Synthesis 390 (2002). Program eliminated performance bonding
Since the cost of furnishing a performance bond is passed on to the State transportation
department in the contractor’s bid, adjustment of the portion of a project value that requires a
contractor prequalification system. For example, a top performing contractor might only be
required to furnish a bond on 50 percent of the contract amount, whereas less qualified
contractors or contractors new to the State transportation department would need to bond 100
percent of the contract amount. A reduction in the percentage of the project value that requires a
bond, based on a contractor’s past performance, would create an incentive for superior
performers by reducing their bid price, U.S. performance bond rates run between 1 and 3 percent
of the total bid amount, so this change in bid prices would be significant. These savings would be
passed on directly to State transportation departments because they would secure lower
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2.1.1 PREVIOUS CONTRACTOR PREQUALIFICATION RESEARCH
The literature on this subject is both extensive and thorough, which underscores the interest and
DeStephanis 2014) found that State transportation departments rely on the following four
b. Post-qualification: Only the lowest responsive bidder is qualified for the State
The authors of literature on this subject believe that the qualifications of a given contractor can
have a marked impact on the success of the projects it executes. Prequalification in its simplest
form is an assessment of financial responsibility, which often mirrors what sureties look for in
making their underwriting decisions relating to issuance of bonds for public works projects. It
also may include other factors such as demonstrated ability to perform a certain type of work.
Whether by prequalification or other methods, public owners are increasingly exploring ways to
include non-price factors, both qualitative and quantitative, in the procurement process to
motivate contractors not only to improve their performance during construction, but equally as
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Once again, the merits of using prequalification to add value to the construction process are
contractors to improve their performance during construction is also expressed by the authors of
this project. The authors note that this idea ultimately leads to the benefits of enhanced
construction quality and reduced administrative burden. The “New South Wales” (NSW)
Australia prequalification manual, which calls the process the “scheme,” describes the benefits of
understanding of and compliance with NSW ( New South Wales) Government construction
c. It is in line with the NSW (New South Wales) Government’s direction to do business with
the best of the private sector, the Scheme provides for incentives for good performance
and also for the application of restrictions or sanctions in the event of poor performance
The subject of contractor qualification has generated a significant amount of research in the past
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prequalification. These studies are briefly summarized below (Dowle, W.J., and DeStephanis, A.
(2014).).
2.1.3 Kentucky Transportation Center Report, (Kelley, M.N. 2000)., Quality Based
Kentucky Department of Highways’ (KDOH) contractor performance rating system and its
contractor’s past project quality performance record as an integral part of the prequalification
process.
Quality-Based Rating reports the practices of 35 State transportation departments that responded
to a survey on the topic. The report found that majority of both contractors and State
Prequalifying Construction Contractors was conducted in the United Kingdom and essentially
benchmarked the state of the practice using a survey of 41 U.S. State transportation departments
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2.1.6 Review of Studies on Alternative Project Delivery that Included Prequalification
As part of the research associated with alternative project delivery, a fair amount of information
has been published related directly to prequalification of contractors. Each of the relevant studies
most specifically assessed the contribution of contractor qualifications to the project selection
a. AASHTO Guide for Design-Build Procurement (Ioannou, P.G. and Leu, S.S. (2000))
provides a comprehensive set of the qualifications and experience requirements that have
b. NCHRP Synthesis 376 (Ioannou, P.G. and Leu, S.S. 2000), Quality Assurance in Design-
delivered using alternative project delivery methods, such as DB, CMGC, etc.
2001), A Guidebook for the Selecting Airport Capital Project Delivery Methods, provides
using the alternative project delivery methods, as covered in TCRP Report 131.
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e. NCHRP Synthesis 402 (Hatush, Z. and Skitmore, M. R. (1997), Construction Manager-
at-Risk Project Delivery for Highway Programs, analyzes the impact of contractor
prequalification on final project quality for project delivery using Construction Manager-
at-Risk (CMR).This report found that a major advantage of CMR project delivery was the
allowed the State transportation department to match the contractor’s qualifications with
prequalification programs consist of the same set of components, which are described as follows:
experience for a specified period, names and backgrounds of key personnel, and
b. A formula/algorithm that converts financial data into a rated capacity, which establishes
the maximum amount of work that a given contractor can be awarded in a given period.
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e. An appeals process for a contractor that believes it has been unfairly or improperly rated.
From a paper by (Hancher and Lambert, 2005), that details the KDOH’s “performance-based”
contractor prequalification process. The process combines the calculation of total maximum
eligibility rating,” which is used to adjust the contractor’s “maximum eligibility amount.” This
value equals the amount of work a contractor may be awarded in a given year. Using the
formula, “lower-quality work will reduce the allowable work volume, whereas high-quality work
Several authors have conducted research that evaluates the relative importance of the various
components listed above. One early study included a survey of construction professionals from
both project-owner and contractor organizations and asked them to rank order 20 prequalification
factors by importance. Both rated financial stability, past project performance, and personnel
availability and experience as the “key decision variables relevant for a generic contractor
management/control skills, personnel experience, quality of final project, and experience with
project type to be the most important, according to a similar group of survey respondents. When
these two studies are put together, the results of one’s contractor questionnaire/application and
the other’s contractor project performance evaluation match one another, which validate the
research efforts.
Evaluating contractor performance, then integrating these evaluations into the performance-
based contractor prequalification system, provides a tangible means by which to reward good
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contractors and a disincentive for marginal contractors to perform badly. Other countries have
been motivated to implement performance-based contracts for reasons that should resonate in the
United States. The motivation for the evaluation of contractor performance in New Zealand has
namely: the increasing lack of personnel within the national road departments, the frequency of
claims, the need to focus more on customers’ satisfaction by seeking to identify the outcomes,
products, or services that the road users expect to be delivered, and by monitoring and paying for
those services on the basis of customer-based performance indicators; and the need to shift
greater responsibility to contractors throughout the entire contract period as well as to stimulate
As demonstrated in (NCHRP 38, 2003) these factors also motivate State transportation
departments in the United States to look for methods by which to create efficiencies through
contractor performance evaluations, as well as methods to mitigate the potential risk created by
the trend toward the increased use of contractor QC in the project acceptance process. State
transportation departments’ performance evaluation programs have to pass the tests for both
fairness and equity, which are essentially reflected in the types of information the State
An attention to fairness should ensure that the evaluation system is transparent and furnishes a
mechanism by which contractors can appeal a negative rating. Transparency can be achieved
when the evaluation system and all its components are published in advance of the evaluation
and when the State transportation department performs the evaluation in line with what has been
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published (Herbsman and Ellis 1992). The inclusion of guidelines for the ratings used for
appeals process demonstrates to the contracting industry that the State transportation department
is open to the challenges of its evaluation system through the use of due process, before a
contractor is penalized by a negative rating (Dowle and DeStephanis, 199). If implemented, these
two elements can greatly ameliorate negative perceptions of potential harmful impacts of a new
To further increase fairness in the process, KDOH allows contractors to rate KDOH’s
performance at the same time KDOH rates the contractor. These contractor ratings are used by
KDOH to “determine quality improvements needed, personnel training needed, and topics for
discussion at the annual meetings with the contractor associations and for evaluations of
A contractor’s ability to appeal to have a negative rating changed or removed can also serve as a
means by which to further ensure fairness .(NCHRP Report 561, 2007) notes that fairness
demands a contractor have recourse to “due process (Mosissa 2008). While a State transportation
department may not want to create a separate formal disputes resolution system for performance
evaluations, it should furnish within its evaluation framework a mechanism whereby a contractor
has the ability to protest what it believes is an unfair assessment of its performance. Such a
mechanism can be as simple as allowing the contractor to add rebuttal comments to the
evaluation form and then charging the chain of command above the evaluator to investigate to
determine if the contractor’s protest has merit before the final evaluation is entered into the
system. Some jurisdictions have a formal board or committee that will hear and decide appeals
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on qualification matters. The inclusion of such elements of independence can significantly
contribute to both the fairness and, equally as important, the perceived fairness of the system.
The Federal Lands Highway Divisions utilize the Department of Defense Construction
Contractor Appraisal Support System (CCASS) (Photoi 1993). An NCHRP study reports of the
The Federal Government and a number of State agencies have for many years maintained a
database of contractor evaluations on past projects and often use this resource as a means to
measure the contractor’s track record. Despite certain drawbacks, this appears to be the best
means of assessing past performance as it allows contractors the opportunity to appeal negative
ratings.
The CCASS evaluation system has been in use for decades and serves not only to record actual
contractor performance, but also as a means for Federal agencies to make a decision on the
“responsibility” of bidders for a DBB project. In this system, a low bidder with several
unsatisfactory ratings can be found “not responsible,” and consequently, not be awarded the
contract. CCASS requires that the agency evaluate the contractor’s performance in five areas:
quality control, timely performance, compliance with safety standards, the effectiveness of
The FHWA requires that the contractor be notified if the State transportation department believes
it is not performing at a satisfactory level. This kind of mandated communication between the
contract owner and the contractor provides the contractor with the ability to both correct the
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defect found by the contract owner and, if applicable, to refute or clarify the perceived defects.
The CCASS process requires that the State transportation department forward all its ratings to
the evaluated contractor and give that entity 30 days to comment on the rating Nmez, M. S., and
YANG, J. B.(2003). The State transportation department then reviews the contractor’s comments
CCASS evaluations are filed and remain in the contractor’s record for six years. They are used as
part of the prequalification process on DB and other types of negotiated contracts, as well as to
Based on the Federal Lands Highway Divisions experiences, it appears that using some form of
impact on final project quality. If these perceptions are accurate, this approach to evaluation
reward good contractors and encourage poor contractors to improve performance?” The
Canadian province of Ontario has also successfully implemented and sustained a system that
encourages good performance. Contractors are rated in five work classifications: general road,
structures, electrical, structural coating, and general maintenance. Both rated and new contractors
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“basic financial rating,” which is an MTO term for the maximum amount of awarded work a
given contractor can have ongoing at any given point in time. It is similar to a surety’s bonding
capacity and is determined in much the same way. If constructors do not have MTO experience,
their experience with other public road agencies is considered and their “basic financial rating”
may be reduced in accordance with a published formula Bedford, T. (2009). Additionally, a fully
qualified contractor’s “basic financial rating” is reduced by the amount of its ongoing work to
determine an available financial rating. This subtraction parallels the approach used to determine
A contractor’s “available financial rating” is determined at the point in time when a bid is
tendered, and it needs to equal or exceed the contract rating. For example, a contractor with a
basic financial rating of $100 million that has $80 million worth of awarded, ongoing work at the
time of the bid has a $20 million available financial rating. If the estimated value of the contract
being bid is less than or equal to $20 million, then this contractor is allowed to submit a bid. If
the contract value is greater than $20 million, then the contractor is unqualified to bid on this
particular project, due to insufficient financial rating or capacity. Contractors with a record of
poor performance may also be required to equal or exceed the maximum workload rating
(MWL) for the project. The contractor performance index (CPI) is calculated from the
contractor’s previously approved contract performance ratings (CPR) for each project and is used
to determine if a contractor needs to satisfy the contract rating and the contract maximum
Based on the CPI, a contractor is categorized into one of the three following “zones”:
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b. Yellow Zone: When CPI is greater than 55 and less than 70.
c. Red Zone: When CPI is greater than 35 and less than 55.
d. A contractor with a CPI of less than 35 would not be deemed qualified to bid.
Green Zone contractors are allowed to bid on work up to their “financial basic rating” without
adjustment for performance. Yellow zone contractors may have to meet the contract “maximum
workload rating,” and may have their MWL reduced by a factor of up to 20 percent. Finally, Red
Zone contractors will have their MWL reduced by a factor “calculated linearly 20 percent and
100 percent depending on their position in the zone (20 percent at 55 and 100 percent at 35). A
contractor’s MWL is defined as the highest annual total dollar value of work awarded to a
contractor in one of the five fiscal years preceding the current fiscal year.
The MTO includes an integrated infraction report system in the calculation of an adjusted
financial rating that accounts for a contractor’s record of infractions issued against it. An
infraction is defined as a serious breach of contract Gazeta. F. G. (2004), and includes, but is not
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f. The issuance of any Notice of Default.
g. The manner of the unsatisfactory resolution of any disputes and whether such disputes
h. When an Infraction Report is issued, the Qualification Committee may take no action,
issue a warning letter, or reduce the contractor’s available financial rating for a specified
period.
The infraction report becomes a very serious matter for contractors who wish to compete for
work in Ontario, and the imposition of sanctions (adverse contract actions, such as termination)
may create a severe hardship for an Ontario-based company, which then needs to leave the
province to seek work. In the case of contractor exclusion (debarment), provisions in the policy
create a distinct disincentive to immediately seek redress in the court system; if a contractor sues
MTO, it may not do business with (e.g., award a contract to) that contractor. The infraction
report also creates an incentive to complete MTO projects in a timely manner and in a fashion
that is satisfactory to the MTO. Table 3 and table 4 shows how five contractors distributed across
the three zones that have the same “basic financial rating” and “maximum workload rating”
The third and final question addressed by NCHRP Synthesis 390 (2002) is the following:“ Can
construction project?” Both the synthesis survey and its contractor interviews found that the
positive impact on the quality of various components of a project, thereby enhancing the value of
that project. Since Ontario has a rigorous prequalification process and has consequently omitted
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the performance bond requirement for contractors, it has freed up savings in bonding costs,
improved project quality, and potentially reduced contract administration effort that can be
applied to other projects, which demonstrates the potential that performance-based construction
contractor prequalification has to add value to the public transportation construction program.
(2002), reduce a marginal contractor’s bidding capacity in various ways, and thereby avoid
“subsidizing” poor performance (see the Minchin and Smith 2004) interviews and those cited in
NCHRP Synthesis 390 (2002)). MTO’s program eliminated performance bonding altogether over
20 years ago.
Since the cost of furnishing a performance bond is passed on to the State transportation
department in the contractor’s bid, adjustment of the portion of a project value that requires a
contractor prequalification system. For example, a top performing contractor might only be
required to furnish a bond on 50 percent of the contract amount, whereas less qualified
contractors or contractors new to the State transportation department would need to bond 100
percent of the contract amount. A reduction in the percentage of the project value that requires a
bond, based on a contractor’s past performance, would create an incentive for superior
performers by reducing their bid price UK. Abatemam, A. (2006).” U.S. performance bond rates
run between 1 and 3 percent of the total bid amount, so this change in bid prices would be
because they would secure lower construction costs for projects. In fact, Florida, Maine,
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Virginia, and Washington have all experimented with using bonding for less than the entire
Many State transportation departments perceive that the purpose of bonding is to protect the
State against contractor default (Kelley 1991). However, the majority of U.S. and Canadian
survey respondents to the NCHRP Synthesis 390 (2002) survey stated that a performance bond
prequalification system in place allows contractors who fail to complete a project to be penalized
via a reduction in their performance rating or by their ultimate removal from the bidding list.
A rigorous performance-based prequalification system can carry more financial weight than a
purely financial bonding system. As stated previously, MTO has a long history of not requiring
bonds from their contractors. MTO’s annual construction program is approximately C$2.1
billion. Based on the U.S. 2007 to 2009 national average, the average performance/payment
bond costs would be 1.139 percent of the total contract cost (Farooqui, 2008). Thus, the
estimated savings (not accounting for any possible contract defaults) is approximately
C$24 million per year in bond costs. MTO utilizes a three-component system to thoroughly
a. Administrative prequalification.
b. Performance prequalification.
c. Infraction system.
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MTO stresses that the success of the system lies in the interrelationships between the
components. While certain components of the system can function independently, the program
prequalification system. This approach was developed, based on the study’s comprehensive
literature review, including the survey responses recorded from 41 U.S. State transportation
contractors from firms ranging in size from a local chip seal contractor to a major national Heavy
Civil contractor.
A survey conducted for NCHRP Web Document (2002) 38 found that 29 States used some type
factors used to arrive at a contractor’s prequalification rating are financial resources, experience,
availability of necessary equipment, and past performance. MDOT is one example of a State that
uses a prequalification procedure. In MDOT’s current procedure, all prime contractors and
subcontractors who intend to bid on projects, as well as those who request prequalification, need
to be prequalified before they can submit a bid. The prequalification process follows the Bureau
of Finance and Administration’s classification and rating of bidders’ administrative rules. MDOT
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currently requires a bid guarantee from all prime contractors bidding on a project. A performance
bond is required from all prime contractors before they can begin work on MDOT projects, and
MDOT requires that contractors renew their qualifications on an annual basis. Due to a recent
change to the administrative rules, all contractors with a financial rating of more than $10 million
Post-qualification practices are also used by numerous State transportation departments (Sweet
1989). These typically involve consideration of a contractor’s qualifications after the contractor
has been selected on a low-bid basis. These qualifications are submitted in response to a State
Post-project performance evaluation practices that impact contractor eligibility are in use at
many State transportation departments. An conducted a survey of U.S. States in 2008 and found
that 28 States rely on some form of post-project evaluation. The New York State Department of
Transportation and the Rhode Island Department of Transportation both currently use post-
qualification for contractor selection. Neither State currently has a specific performance-based
rating evaluation scale for contractors. They rely on post-qualification instead of performance
State transportation departments generally review multiple factors in order to prequalify or post-
qualify contractors. They typically assign a maximum amount of work a contractor can perform
and the type of work they are allowed to perform, based on qualification determinations. The
factors most commonly used by State transportation departments to evaluate contractors are as
follows:
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b. Financial capability (75 percent).
Not only may State transportation departments rely on different factors, but they may also
require slightly different forms of documentation as proof from contractors (Wubishet 2004).
The actual amount of effort required for review by each State transportation department depends
on the factors evaluated and the type and amount of proof required and reviewed.
similarities and differences across States. A majority (25 out of 33) of the States surveyed in Dye
Management Group’s eligibility practices reported that they only use prequalification methods to
prequalify prime contractors. In addition, most States prequalify contractors in different work
categories to ensure that the prequalification process accurately accounts for the fact that
construction disciplines are varied and require different skills (Mechegiaw 2012). The number of
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work classifications used varies by State transportation department. Most States (31 of 48
surveyed in NCHRP Synthesis 390, (2001), and 7 Canadian ministries of transportation) monitor
contractor performance on projects, though the information obtained through monitoring is not
used in the prequalification/eligibility determination process in all States. While some State
performance, others do not. Policies regarding how to modify State limits are well documented
and standardized in some State transportation departments, while others use a more subjective,
Management Group’s report, along with information from NCHRP Synthesis 390 (2002), show
that performance bonding and bid bonding/guarantee are the most widely used methods to
Most States (45 of 50) require that performance bonds be used in conjunction with other
contractor eligibility evaluation methods. Most States also require that performance bonds be
secured for contracts over a specific dollar amount, typically $25,000, although the minimum
contract amount ranges from any dollar value (in California) to much higher values (in Indiana,
where the minimum is $200,000) Nmez, M. S., and YANG, J. B.(2003). The dollar amount of
the required performance bond also varies by State, ranging from a percentage of the contract
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amount to the full contract amount. Performance bonding requirements may also extend to
subcontractors.
Several States do not always require performance bonds for the full value of the project. FDOT
requires that the secured performance bond value be equal to the contract price, except for
contracts greater than $250 million (an amount in excess of which is generally too great for a
single performance bond to be issued), or if the State otherwise finds that a bond in the amount
of the contract is not reasonably available, in which case the bond amount will be set at the
largest amount reasonably available. For contracts greater than $250 million, the State
transportation department can use a combination of bonds equal to a portion of the contract
amount, along with an alternative means of security applied to the remaining portion, such as
letters of credit, U.S. bonds and notes, parent company guarantees, and/or cash collateral to
For design-build contracts, States need to include the cost of design and other non-construction
services in the bond amount in order for the bond to be conditioned on performance of those
services and for the persons who perform those services to be protected by the bond (Aitah
1988). In Illinois, the Public Construction Bond Act requires only one bond for the completion
of a contract; this includes performance, payment, subcontractors used, and all labor performed.
In Louisiana, the performance and payment bond needs to be issued either by a U.S. Treasury, a
listed bonding company, or by a Louisiana insurer with a Best’s credit rating of “A-” or better.
. In each case, a performance bond may be waived or the contractor may provide a substitute
type of security, such as a cashier’s check for 100 percent of the contract amount.
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CHAPTER THREE
3.1 INRODUCTION
System analysis can be define as the study of already existing system, its current and future
requirement objectives and procedures in order to inform a basic for the system and the design.
(Jeffery .L. 2004) This chapter will focus on the analysis of the system and design of the
application that will enable the works Department and the institute management of NILEST to
store and retrieve data of all bidders of contract applying for any contract and to reduce the stress
Data are often collected in the normal course of administration and not specification for the
statistical purpose. There are various method by which this project or research can gather
information for research purpose. Combination of method chosen and use depends on the method
research design. Below are some of the possible method that can be use.
i. Interview method: This is a face to face conversation between the researchers who is
also called interviewer and the respondent who ask question and get answer from the
respondent.
ii. Observation method: This method entails the researchers going to the case study of
the case study research area to get or record the actually happened, is happening,
when it is happening.
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iii. Questioner method: this is a tool for information gathering were the researchers’
shears form with question requiring the respondent fill the analyzed answered
questioners.
iv. Telephone: This is a avenue were where the researchers ask the respondent question
v. Documentation: This s research tool that use Already existing material for
researched purposed.
The method use can be both primary and secondary source of data, it May be call library search.
The written document used may be publish or unpublished material which the researcher read
and analyze
The method that are use for this project work are:
b. Interview: I will as well interview some of the staff of the works department of NILEST
c. Documentation: I consulted some pass research works, handout, textbooks and past
In this phase, I have decide to pursue the feasibility study future to learn how exactly the
existing system operates, to determine and document what the system should do. It also included
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3.4 PROBLEM OF THE EXISTING SYSTEM
The manual process for the assessment of bidding of contract in Nigeria Institute of leather and
science Technology Zaria have been in existence since the establishment of the institution, which
has brought so much disorderliness and misplacement of contractors bidding for contract,
1. Time wastage
2. Lack of security
3. Crowd staff
4. Wastage of fund
A new system will be designed in such a way that the problems been encountered in the old
system will be solved. The system is designed in modules such that each operation is adequately
The technology use to design the new system design are HTML, PHP and CSS
The processing of new system will involve management of the online contract bidding system by
using PHP as the database. A relational database using wamp server PHP my Admin.
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3.6 FEASIBILITY STUDIES
Feasibility study or analysis is designed for the activity by which the potential outcome of the
project is measured and accessed. Feasibility measures how the development of an information
system would be to an organization or the society. Also, feasibility analysis is the activity by
While feasibility measures and how beneficial the development of an information system would
A system is said to be feasible if goals and requirement can be satisfied within the constraint of
available resources and technology using a particular strategy. In order to know whether this
project is feasible or not, four major feasibility test were carried out as stated below.
The assessment of technical feasibility is based on the outline design of system requirement in
terms of input, output, files, programs and procedures. It measures the expertise. Technically, the
project is feasible because the experts and technical resources needed are available in the
The test involves how the system will work when it is installed and the assessment environment
in which it is implemented. It measures how well the solution will work in the given organization
and how user feels about it. Operationally, the project would be feasible because it has been
analyzed that both the staff and the students in works Department using the system should be
32
computer literate. The following questions were asked during operational feasibility test in order
a. Performance: would this new system be designed provide adequate output and time
response? YES, this new system will provide adequate output and time response.
b. Information: would this system provide managers and end users with accurate,
useful, and timely information to make use of it always? The system provides
administrative officers and users with accurate, useful and timely information to make
use of it always.
c. Control: does the system offer adequate control to protect against fraud and to
guarantee the accurate and security of accurate data and information? YES, the new
system offer adequate control against fraud and guarantee accurate security of
information, thereby all any contractor bidding for a contract will have a secrete pin
d. Efficiency: would this new system minimize delay in its data processing thought
optimization of speed? YES, it will minimize delay in its data processing through
optimization of speed.
e. Service: would this system provide service as at when needed with good measure of
This measure the cost of effectiveness of the project or solution provided. The project is
economically feasible because if it involves hosting, it may be annually or bi-annually as the case
33
may beat the rate the works Department can afford. Having considered and carried out the four
major feasibility test mentioned above for this project, I can Say that this project is feasible.
This measure how reasonable the project time will be. Is the time frame given feasible for the
project? For the purpose of this project, it is the duration given that determines the feasibility of
the project.
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3.7 NEW SYSTEM DESIGN
START
HOME YES
DO HOME
NO
ABOUT YES DO ABOUT US
U
NO
CONTACT US YES
DO CONTACT US
NO
ADMIN LOG YES
DO ADMIN LOGIN
NO
LOGIN YES DO LOGIN
LOGOUT
NO
SIGN IN YES DO SIGN IN
QUIT
END
QUIT
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Database structure Table for Admin
The system requirement needed for the newly proposed system is as follows:
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3.8.1 HARDWARE REQUIREMENT
The following basic hardware require for the newly developed system to perform
maximally are:
c) Speed - 2.40GHz
e) Run - 4GB
The software mention below will be installed on a computer system and will be used to develop
c) PHP (Preprocessor)
d) Wamp server
CHAPTER FOUR
37
4.1 INTRODUCTION
This chapter includes and critically defines all the necessary functions and features that can be
rendered by assessment of bidders for the award of contract, excluding the administrative
functions. The work actually considers all the stream of services that are rendered when a
contractor or consultant looking for contract in this institution need to considered. Few of these
numerous services will be examined to see how and what kind of data is required in each form
4.1.1 CREATE NEW ACCOUNT: This function handles the capturing of the
4.1.2 RESULT: The system is designed such that the following are carried out during its use:
4.1.3 USER VALIDATION: to be able to use the software, organization are to registered by
themselves using their preferred username and password on the first login to the software as
shown below.
There is a need to have a computer environment prepared in this phase were the program
software will be tested. I am able to develop the software for this system to make it successful
and easier, there are needs for a fully equip computers for easy accessibility and testing.
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This refers to the changing from the existing system to the new system. There are different ways
MODULE FUNCTION
1. Password This module restrict the program (software) only for
authorized persons
2. File Creation It will shows or display the file created for different
customers
3 Exit This will completely quit the program
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Fig 4.1 Home page
The home page gives the user the room to select options such as login, sign up, as well as the
Admin login For the next steps to be taken, either sign up as a new user, or Log In as an already
existing User with his or her User Name and Password, or the Admin Login to view applicant or
40
Fig4.2: User Log
This page gives the user who has already sign up to login with his or her password to access
information about the available contract as well as to view his profile as follows below.
41
This page views the users credentials uploaded for access by the admin
This pages allows the user with user name and Password to access the available Contract for
bidding.
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Fig 4.6 uploaded Credential
The user have the room to upload new credentials for upgrading of profile.
43
The page above gives the user with User name and password to login to access the available
contract.
This page allow user to register his or her fields or information for accurate information of the
44
fig 4.9 Home Page for admin login
this Page allow the Admin to login to access information about the potential contractors to bid
for contracts as well as to upload and post the available contract for potential bidders.
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Fig 4.11 inside admin Log Page
This page will allow the admin to contract vacancies, view contractors applicant, delete contract
46
Fig 4.12 Add Contract Vacancy Page
This page allows the admin view the contract uploaded by him to be access by contractors.
47
fig 4.14 Delete Contract Vacancy Page
This Page above allow the Admin to Delete contract not available.
48
T he Admin can view all the uploaded credentials, uploaded by various organizations and is able
to assess all they uploaded, most especially OTHER REQUIREMENTS. The developed software
Once the user is able to login, the main dashboard appears. The main dashboard has five menus,
namely; view credentials, search contract, upload credential and logout. On clicking the upload
credential menu, the user will view all information uploaded about their organization and can be
able to edit the information with the exception of Logo. And also when you click on the upload
credential, those credential you uploaded will be view, More so when search contract is click the
contract available will be displayed and the you the contractor or applicant will apply by clicking
on the apply button system will prompt you that it is successful. Lastly when you click on the
Similar windows exist for Admin and organization registration. Dropdown menu is provided to
allow for easy selection of items on the Homepage. Also available are some text fields. These do
not have dropdown menus and desired text need to be typed in.
Department
COMPUTER SCIENCE
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Program Title: Design and implementation of an online contract bidding system
Program purpose: To automate the contract bidding system here in the Nigeria Institute of
Program year:
MARCH 2019
Interface Form
a) Home form
b) Registration form
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CHAPTER FIVE
5.1 SUMMARY
This research is therefore carried out to automate the contract Bidding System under work
department Nigerian Institute of Leather and Science Technology Samaru Zaria Kaduna State.
The main method of data collection used in this research is the interview method. This was done
(NILEST) and asking several question that relate to the operation (manual) and how lovely they
5.2 CONCLUSION
Taking a look at this project, we would see that there is quite clear-cut between the
manual and the automated system. The automated system carried more advantages than the
manual system. Also by referring to the world of today where every system needs to be
automated. I hereby advise the management of Nigeria Institute of Leather And Science
Technology Samaru Zaria Kaduna State to try and see that they implement the automated system
of contract bidding system to enable them carryout their job efficiently and successful.
5.3 RECOMMENDATION
The Management of Nigerian Institute of Leather and Science Technology (NILEST) should
send staff of works department out for training to learn modern practices or where there is
automated system of works department. Staff should be notified and be trained on any
51
amendment or modification that is carried out in the system in order to increase the long life
52
REFERENCES
Dowle, W.J., and DeStephanis, A. (1990). “Preparing bids to avoid Claims.”, Construction
Hardy, S.C. (1978). “Bid evaluation study for the World Bank, Vol 1”, The University of
Public Building
Construction Projects & Their Consequences.” M.S. thesis, Univ. of Addis Ababa, Ethiopia.
Ioannou, P.G. and Leu, S.S. (1993) “Average Bid Method- Competitive Bidding Strategy”, Journal
53
University, Miami, Florida.
Kelley, M.N. (1991). “Estimating and Bidding from Contractor’s Point of View”, Journal of
Mosissa, L. (2006). Alternative Project Delivery Methods for Public Constructions, Cases in
Oromiya Region.
Construction Engineering
and Management,119(1).
Farooqui, R. U. (2008). “An Assessment Of General Trends Adopted For Bidding And
Procurement In The
Sweet, J. (1989). Legal Aspects of Architecture, Engineering, and the Construction Process, West
Publishing Company, St. Paul, MN. Tarricon, P. (1993) Deliverence, J. Civil Engineering.
Bedford, T. (2009). Analysis of the Low-Bid Awards System in Public Sector Construction
Winch, G.M. (2000). Institutional Reform in British Construction, Partnering and Private
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Wubishet J.M. (2004). Performances for Public Construction Projects in Developing Countries,
Herbsman, Z. J., and Ellias, A. M., and Cosma, C. (1997). “Buying Time- An Innovative
Univ of Florida.
Garrison, T. (2010.) It's Time to Abandon the Low-Bid System, Posted by Ted at CDT.
Nmez, M. S., and YANG, J. B.(2003). “Addressing the contractor selection problem using an
Hatush, Z., and Skitmore, M. R. (1997) “Assessment and evaluation of contractor data against
client goals using pert approach”. Construction Management and Economics, 15(4).
Aitah, R. A. (1988). “Performance study of the lowest bidder bid awarding system in
government projects - saudi Arabia.” M.S. thesis, King Faisal Univ, Saudi Arabia.
Mechegiaw, L. (2012). “Performance study of lowest bidder bid awarding system in public
55
APPENDIX
CODES
<!DOCTYPE html>
<html class="no-js">
<head>
<meta charset="utf-8">
</head>
<body>
<?php
session_start();
$servername = "localhost";
$username = "root";
$password = "";
$dbname = "works";
// Create connection
if ($conn->connect_error) {
56
if(isset($_POST['submit'])){
$_SESSION['password']=$_POST['password'];
$_SESSION['username']=$_POST['username'];
$result = $conn->query($sql);
if($result->num_rows> 0){
while($rows = $result->fetch_assoc()) {
$pass= $rows['org_password'];
$path= $rows['path'];
$image= $rows['org_username'];
include('test.html');
?>
<?php
/*session_start();
$_SESSION['username']=$_POST['username'];
57
$_SESSION['password']=$_POST['password'];*/
if($_POST){
$servername = "localhost";
$username = "root";
$password = "";
$dbname = "works";
// Check connection
if ($conn->connect_error) {
if (isset($_POST['login'])) {
$username=mysql_real_escape_string($_POST['username']);
$password=mysql_real_escape_string($_POST['password']);
// Create connection
$result = $conn->query($sql);
if($result->num_rows != 0){
while($rows = $result->fetch_assoc()) {
$dbpassword= $rows['org_password'];
$dbusername= $rows['org_username'];
if($dbusername==$username ){
58
include("screen.php");
echo $rows['org_username']."<br/>";
}else{
}else{
header("Refresh:4; url=loginAdminform.html");
?>
</body>
</html>
59