Solutions to improve competitiveness in construction bidding of Song Da 6 Joint Stock Company = Giải pháp nâng cao khả năng cạnh tranh trong công tác đấu thầu
THEORETICAL, LEGAL AND PRACTICAL BASIS ON
Overview of construction bidding
1.1.1 Overview of construction bidding in the business of construction companies 1.1.1.1 The concept of construction bidding a Bidding definition
From the perspective of the Employer, “Bidding is the the process of selecting a tenderer to sign and implement contract of provision of advisory services, non- advisory services, procurement of goods, construction and installation; selecting an investor to sign and implement contract of investment project in form of public-private partnership, investment project with land use on the basis of ensuring competitiveness, fairness, transparency and economic efficiency” [Bidding law 43/2013 /QH]
From the perspective of the Contractor, bidding is the process of studying the bidding documents of the procuring entity and preparing the bids that meet the requirements set forth in the bidding documents base on the contractor's capacity, strategy for the package as well as on the basis of analyzing strategy of other contractors who also participate in bidding for that package b Construction bidding definition
Bidding for construction from the perspective of the Employer is the process of selecting a contractor to perform the construction work and equipment installation work of projects that can meet the technical requirements of the project and have the most reasonable cost
Bidding for construction from the perspective of the Contractor is the work of the Construction Contractor to prepare the Bid in order to best meet the requirements of the Bidding Documents compared to other contractors participating in the bidding package in order to be selected to perform that work Tender document of contractors are prepared based on their capacity, objectives and taking into account the competitiveness of other bidders who also participating in the bidding package
Other definitions relevant to bidding:
Bid solicitor: A professional agency or company which is decided by the employer to organize bidding according to the provisions of the law on bidding
Bidding invitation document: Is the entire document used for open bidding or limited bidding, including requirements for a project of a bidding package, as a basis for contractors to prepare tender documents and for bid solicitors to evaluate the tender documents to select the winning tenderer; it is the basis for the negotiation, finalization and signing of the contract
Tender document: Means all documents prepared by the tenderers according to the requirements of the bidding invitation documents and submitted to the bid solicitor in accordance with the provisions stated in the bidding documents
Bidding package price: is the price determined for each bidding package in the project's bidding plan on the basis of the total investment or the approved total cost estimate
Bid price: is the price stated by the tenderer in the tender document, including all necessary costs to implement the bidding package at the request of the bidding documents
- Principle of fair competition: All bidders participating in the bidding must be treated equally by the Employer The necessary information must be provided fully, accurately, without bias and completely public
- Principle of confidential: The Employer must keep confidential the relevant data and information of the Contractors of the project under bidding, must not disclose this Contractor's information to another Contractor
- Principle of fair evaluation: The tender documents must be evaluated accurately according to the standards and evaluated by a competent and qualified Bidding Board, without bias The bid evaluation results must be quantified in order to have an accurate selection and decision Tenderers who violate the Bidding Regulations must be immediately eliminated Full explanation must be given when a decision is made to exclude or select a tenderer to avoid suspicion of the parties
- Principle of capacity requirements: When organizing bidding or participating in
6 bidding, the Employer and Contractors must have practical capabilities to be able to ensure the requirements of the proposed project such as: technical, financial, machinery, equipment, This principle is set to avoid damage caused by the Employer’s or the Contractor's inability to perform their commitments
- Principle of responsibility: The responsibility of the Employer and the Contractor must be specifically confirmed during the implementation as well as after the completion of the work On the other hand, between the Employer and the Contractor must strictly comply with the State's regulations on bidding
1.1.1.3 The role of bidding for the economy and society
- Bidding contributes to improving the efficiency of the State management of investment and construction, managing capital use effectively, limiting and eliminating situations such as loss and waste of investment capital, especially budget capital and negative phenomena arise in construction
- Bidding creates workable competition in the field of capital construction, promoting the development of the commodity economy in the industry as well as in the national economy
- Society becomes civilized due to transparent bidding information, fair and convenient in accessing to information The companies that can execute the work better will be selected by the Employer Everyone, every Company will trust more in the Law and the State Through that, all must try, that is what makes society develop sustainably
1.1.1.4 The role of bidding for the construction company
The purpose of bidding is to win bids, find contracts and make profits Therefore, bidding plays an important role for contractors and is shown in the following aspects:
- Bidding creates pressure on companies to innovate and improve the ability to win bids as well as the quality of bid preparation
- Construction bidding with high winning results will bring many benefits to the contractor, bring jobs and income to the employees of the company, bring profits to the company from which the company can expand production and business, increase accumulation, and improve business capacity
- Construction bidding helps companies accumulate a lot of experience to complete competitive strategies, solutions to improve competitiveness, thereby winning over competitors and getting the leading position in the construction market
In summary, in order to win the bid, companies must improve their production and business organization, management organization, and improve the qualifications of the staff in preparing bids Companies themselves improve the efficiency of business management cost, financial management cost and improve production efficiency
1.1.1.5 The role of bidding for the Employer
Construction bidding brings the following main benefits:
- Select a contractor with good capacity and experience to perform the construction contract From there, the main benefits are as follows:
+ Help the Employer successfully complete the targets of the project
+ Help the Employer save investment costs by selecting the winning contractor with a bid price lower than the approved bidding package price
Overview of competition in construction bidding
1.2.1 Concept of competition in construction bidding
The concept of competition has been mentioned by human society for a long time, but "What is competition?" Until now, there is no consensus on the concept According to the Organization for Economic Co-operation and Development (OECD),
“Competition is the ability of companies, industries, countries and regions to create jobs and higher incomes under conditions of international competition” Competition means trying to win a share, a victory for yourself between people and organizations working for the same benefit
When Karl Marx studied capitalist competition, he introduced the concept of competition as follows: "Capital competition is a rivalry, a fierce struggle between capitalists to win favorable conditions in the production and consumption of goods in order to gain huge profits”
The Vietnamese Dictionary of General Knowledge also explains competition in the economic sense is the competition between producers of goods, between traders and businessmen in the economy to win the most favorable conditions for production, consumption and market
Thus, competition is the activity of companies in the production of goods with the aim of competing with each other to dominate the market in order to earn high profits Understood in the most general sense, competition is the rivalry between
12 business entities in the winning for markets and customers
From the concept of competition in general, the thesis introduces the concept of competition in construction bidding as follows:
Competition in construction bidding is the process of competing between the construction companies about searching for bidding information, making and submitting bids, ensuring the winning bid, negotiating and signing contract with employers to perform the construction and installation bidding package
1.2.2 Classification of competition in construction bidding
1.2.2.1 Classification of competition according to form and method of bidding
- Competition in limited bidding, one-phase method with one dossier bag
- Competition in open bidding, one-phase method with one dossier bag
- Competition in limited bidding, two-phase method with two dossier bags
- Competition in open bidding, two-phase method with two dossier bags
1.2.2.2 Classification of competition according to the type of contract applied to the bidding package
- Competition in a form of a lump sum contract
- Competition in a form of a fixed price contract
- Competition in a form of an adjustable price contract
- Competition in a form of a combination contract
- Competition in a form of a General contractor
1.2.2.3 Classification according to capital sources of the construction bidding package
- Competition of construction bidding package using state-funded capital
- Competition of construction bidding package using a non-budget state capital
- Competition of construction bidding package using other funds
1.2.3 Characteristics of competition in construction bidding
Due to the characteristics of products and construction production, the competitive characteristics of construction bidding are created as follows:
- Competition in construction bidding depends on the uniqueness of the bidding package
- Competition in construction bidding is a process involving many different jobs and different contents that must be proposed in the tender documents
- Competition in construction bidding requires fairness and transparency
- Competition in bidding is conditional competition including:
+ Regulations on eligibility conditions of contractors take part in the bid
+ Regulations on conditions for rejection of tender documents
- Competition in construction bidding is diverse and complex
- Competition in construction bidding is carried out before the product of the bidding package is formed
- Competition in construction bidding is specified for each capital source in accordance with the law on management of each such capital source
1.2.4 Competitive content in construction bidding of construction company
1.2.4.1 Competition in terms of capacity and experience includes:
1.2.4.2 Competition in terms of technical, quality and construction progress a) Competition about technical, quality of the project
Improving the quality of works is important to the existence and development of companies Construction companies hand over to employers the construction works that ensure technical, aesthetic, quality assurance and construction time will increase the reputation of the company in the market At the same time, improving the quality of works contributes to improving production and business efficiency, increasing revenue, increasing profits, and ensuring the set goals of the company b) Competition about the construction progress
Depending on the scale, characteristic of the work and the contractor's ability, the contractor will make a construction schedule plan From the construction schedule, the employer can evaluate the contractor in terms of management qualifications,
14 construction technical qualifications and the contractor's machinery, equipment and human capacity
Normally, the employer evaluates the construction progress of the contractor according to 2 contents:
- The level of assurance of the total construction progress specified in the bidding documents The contractor who is able to come up with technical methods to shorten the construction time will have the greater the probability of winning the bid
- Assessment of the reasonableness of the completion schedule among related work items The progress of completing the work items is related to the advance payment to the contractor, related to the use of the items after completion
Therefore, the contractor who is able to ensure the construction progress and has reasonable construction methods will have a competitive advantage in the bidding process
1.2.4.3 Competition about the bidding price
The bidding price has a great impact on the success or failure of the company in the bidding process When participating in bids, companies want to offer a reasonable price, lower than the price of competitors in order to attract the attention of employers, this makes price competition among companies very fierce
Different from normal consumer products, the price of construction works is determined before the construction works and is determined through bidding The construction work price stated in the bid documents is called the bidding price The price depends on the competitiveness of the contractor, the bidding price also is impacted by many other factors such as: natural conditions, socio-economic conditions where the bidding package is implemented, roads, electricity and water, ability to exploit materials on site, educational level, economic and technical characteristics of the bidding package, implementation schedule, etc
1.2.5 Competitive assessment in construction bidding according to current law of bidding a) Criteria used to evaluate tender document in construction bidding
- Criteria about capacity and experience
- Criteria about bidding price b) Method of evaluating tender document in construction bidding according to legal standards
- Evaluate method of capacity and experience for construction bidding packages
- Evaluate method of technical for construction bidding packages
- Evaluate method of financial for construction bidding packages
+ Evaluate according to the lowest price method
This method applied to simple and small scale bidding packages in which technical, financial and commercial proposals are considered to be on the same ground when meeting the requirements stated in the Bidding document
Tender document evaluation criteria include: evaluation criteria of capacity, experience and other criteria of the package
For tender documents that have been evaluated to meet the criteria specified at the above points, the bidding price shall be based on the bidding price after error correction, deviation correction, minus the discount value (if any) The bidder with the lowest price is ranked first
+ Evaluation according to the evaluation price method
This method applied the evaluation criteria applicable to bidding packages where the costs are convertible on the same
Criteria for evaluating the tender document include: criteria for evaluating capacity, experience in case prequalification is not applied, criteria for evaluating technical proposal, and criteria for determining the evaluation price Factors are converted on the same ground to determine the price include: necessary costs for operation, maintenance and other costs related to the origin of goods, interest, progress, the quality of the goods or construction works in the bidding package, the reputation of the contractor through the progress and quality of previous similar contracts and other factors
For tender documents that have passed the technical evaluation, they will be compared and ranked based on the evaluation The bidder with the lowest evaluated
+ Evaluation by the method of combining technical and price:
Applicable to technology, telecommunications bidding packages or goods procurement, construction and installation, mixed bidding packages when the lowest price method and the evaluated price method cannot be applied
Competitiveness in construction bidding
1.3.1 The concept of competition in construction bidding
Currently, there are many different concepts about the competitiveness of companies According to author Le Dang Doanh in the research work “Enhancing the competitiveness of enterprises in the time of integration”: Competitiveness of enterprises is measured by the ability to maintain and expand market share, earn profits for enterprises in the competitive environment at domestic and foreign market”
In the research work "Enhancing the competitiveness of enterprises in the process of international economic integration", author Vu Trong Lam has synthesized and introduced the concept of competitiveness of enterprises as follows: An enterprise's competitiveness is the ability of an enterprise to create, maintain, use and create new competitive advantages in order to meet the needs of customers (compared to competitors) and achieve its objectives goals of enterprises in the domestic and
17 international competitive environment” Author Tran Suu in the research work
"Competitiveness of enterprises in the context of globalization (2006) also has the same opinion: "Competitiveness of enterprises is the ability to create competitive advantages, have ability to create higher productivity and quality than competitors, occupy a large market share, generate high income and develop sustainably”
Applying the above viewpoints in the field of bidding, the author proposes the concept of competitiveness in construction bidding as follows: Competitiveness in construction bidding of an enterprise is the ability and capacity of the enterprise to build, maintain and develop its advantages for winning many bidding packages compared to other enterprises in the same competitive market, ensuring its goal of maintenance, development and achieving the targeted profit These advantages can be the experience, financial capacity, technical capacity, human and equipment capacity, management capacity, ability of joint venture with related parties, etc
1.3.2 The role of improving competitiveness in construction bidding of company
Enhancing the competitiveness in construction and installation bidding of a construction company is the continuously utilization, maintenance and development of existing competitive advantages, creation and development of new competitive advantages through which win over the competitors and achieve the business goals, gain a stable position in the market at all times and become the market leader
Improving competitiveness in construction bidding has the following roles:
- Create conditions to increase the competitive position of companies
- Create conditions for companies to make the best use of existing competitive advantages
- Create conditions for companies to create, maintain and develop new competitive advantages
- Create conditions for companies to win over competitors in the market
- Create conditions for companies to develop into the top of the best companies, leading the market
- Create conditions for companies with a high probability of winning bids, earning a lot of profits, contributing to the State, participating in sponsorship activities
18 for the society, increasing the prestige and brand of companies in the market
1.3.3 Methods of evaluating competitiveness in construction bidding
Because there are many different approaches to competitiveness, methods and tools for evaluating the competitiveness of companies are also very rich and diverse Good methods should help the analyst to make comparisons and contrasts the functions and activities of the company with the respective functions and activities of the competitors
1.3.3.1 Method of evaluating competitiveness according to the resource-based approach
A competitive company must have a competitive advantage Evaluating competitiveness with this approach requires the analyst to answer four basic questions (four criteria) in order to identify the resources and capabilities of the company which lead to a sustainable competition advantage or not These criteria and their contents are summarized in Table 1.1
Table 1.1: Criteria to test the resources and capabilities of companies to identify sustainable competitive advantage
Do resources/capabilities help company develop and implement strategies to exploit opportunities, reduce risks in the external business environment, and create value for target customers?
Are resources/capabilities owned only by the company or a few current or potential competitors? This question leads to a fundamental question: how many competitors have the same resources/capabilities as the company? If there are many such companies, that resource and ability cannot become a competitive advantage of the company
3 Hard to copy and imitate
Is it easy for competitors to copy resources/capabilities similar to yours?
Is there any resources/capabilities with equivalent value, easy to imitate, and non-scarce to substitute for resources/capabilities of the company? Two resources are considered to be strategically equivalent if they can be used in isolation to carry out the same strategies
(Reference: Enhancing the competitiveness of businesses in the process of international economic integration - Dr Vu Trong Lam (2006) - National Political
These criteria help determine the sustainability of competitive advantages, so they are also used as criteria for evaluating the competitiveness of companies
From the examination of the above four criteria, the following conclusions can be drawn about competitiveness:
Table 1.2: Some conclusions drawn from the test results of four criteria
Hard to copy and imitate
Profit rate lower than average profit
Yes No No Yes / No
Competitive equality (no advantage or disadvantage)
Yes Yes No Yes / No
Rate of profit above or equal to average
Rate of profit above average
(Reference: Enhancing the competitiveness of businesses in the process of international economic integration - Dr Vu Trong Lam (2006) - National Political
Publisher) 1.3.3.2 Method of evaluating competitiveness using competitive profile matrix
The competitive profile matrix (CPM ) is a useful tool that allows the analyst to simultaneously study the company in relation to its direct competitors to discover the relative advantages and disadvantages compared to competitors The information obtained from the competitive image matrix is important to the strategy formulation and implementation process Table 1.3 is a sample of the competing image matrix
Evaluation criteria (Factors determining competitiveness)
Applying a competitive profile matrix requires the following steps:
- Select direct competitors you want to do comparative research The most basic criteria to choose a direct competitor is that the competitor must be in the same business scope as the company This means that competitors offer similar products to the company's products to satisfy the same needs and requirements of customers, or apply similar business strategies of the company
- Select important factors that determine the competitiveness of companies and competitors as evaluation criteria
- Give the important coefficient for those factors in order to satisfy:
+ A higher coefficient means that the respective factor is more important for creating and enhancing the competitiveness of the company
- Classification levels are scored from 1 to 4 (or 5) corresponding to the level of the strategy to take advantage of opportunities and limit threats in the external environment A score of 4 (or 5) implies the strategy that best responds to external environmental conditions, a score of 1 means the strategy that responds the worst The classification levels are scored for the company and each competitor in the matrix, respectively
- Rating = important coefficient x classification score and then cumulative A higher total rating in general reflects the respective company's stronger competitiveness (in overall ) However, that does not mean that the company with the high score will have absolute strong competitiveness compared to the company with the lower score because that total number obscures the significance of each evaluation score term Studying competitiveness requires attention to individual factors and their implications for creating and enhancing competitiveness The meaning of the competitive profile matrix does not lie in providing a single, specific number that reflects the competitiveness of a company, it is a convenient and scientific analysis tool to provide useful information for strategic decisions to improve the competitiveness of companies
(Reference: Enhancing the competitiveness of businesses in the process of international economic integration - Dr Vu Trong Lam (2006) - National Political
Publisher) 1.3.3.3 Method of using value chain to analyze competitiveness
Each company can be modeled as a sequence of value-creating activities in the value chain When conducting a competitive analysis of a company, it is necessary to analyze in detail each of the nine groups of activities in the value chain of that company See what specific activities each activity group includes? Cost of implementing them? How do they contribute to make your product different? Among
22 those activities, what are the outstanding strengths and weaknesses of the company? How are the activities coordinated? How can companies better coordinate those activities to reduce costs and increase product differentiation? All those issues need to be analyzed in detail and recorded the strengths and weaknesses of the company on the value chain model
Criteria for evaluating the competitiveness in construction bidding
Determining the criteria for evaluating competitiveness in construction bidding can be approached by some of the following directions:
1.4.1 Criteria based on construction history of work a) Bidding result
D tt : Number of winning bid packages in the research period
D dt : Number of bidding packages in the research period
The higher the winning rate according to the quantity, the stronger the competitiveness of the company
G tt : Value of winning bid packages in the research period
G dt : Value of bidding packages in the research period
The higher the bid-winning rate by value, the stronger the company's competitiveness b) Rate of project completed on schedule
T 3 : Rate of the project completed on schedule
S đt : Number of projects completed on schedule
S tc : Number of completed projects c) Quality of the completed project
- Number of construction contracts certified by the Employer to ensure the quality of the works
- Number of construction contracts awarded for quality
- Apply modern quality management processes
- Number of minutes of incident during construction, number of minutes of rework due to unsatisfactory quality
1.4.2 Criteria to evaluate the competitiveness of companies according to internal factors of companies
The assessment of the competitiveness of companies in the construction bidding can be made based on the assessment of internal factors that directly affect the competitiveness of company, including:
- Reputable and experience in construction field
- Ability of joint venture, association
CURRENT SITUATION OF BIDDING AND COMPETITIVENESS
The Company background
2.1.1 Introduction about Song Da 6 Joint Stock Company
- Company name: SONG DA 6 JOINT STOCK COMPANY
- Head office: TM Building, Van Khe urban, La Khe ward, Ha Dong, Hanoi Tel: (+84-24) 222 536 66 / Fax: (+84-24) 222 533 66
- Legal representative of the Company: Mr Le Tien Thu, Position: General Director of Song Da 6 Joint Stock Company
- Website: www.songda6.com.vn
- Charter capital: 347,716,110,000 VND (Three hundred and forty seven billion, seven hundred and sixteen million, one hundred and ten thousand dong)
- Symbol: Logo of Song Da 6 Joint Stock Company
Song Da 6 Joint Stock Company is a member of Song Da Corporation Formerly a Hydraulic Construction Company established under Decision No 483/BXD - TCCB dated April 12, 1983 of the Minister of Construction
Over 38 years of establishment and development, the unit has many different names such as Hydro Construction Company, Song Da 6 Construction Company, Song Da 6 Company and changed into Song Da 6 Joint Stock Company in 2006 During its operation, the Company has participated in the construction works: ground blasting, tunnel blasting, foundation blasting, reinforcement and foundation treatment, excavation The company has participated in concrete construction such as: Concrete of powerhouse, concrete tunnel, concrete weir, spillway, concrete intake of
36 major hydropower projects of the nation, as specific as:
- Typical hydropower projects have been and are under construction:
Hoa Binh Hydropower Plant: 1.920 MW
Can Don Hydropower Plant: 72 MW
Song Hinh Hydropower Plant: 72 MW
Se San 3 Hydropower Plant: 270 MW
Se San 3A Hydropower Plant: 108 MW
Se San 4 Hydropower Plant: 360 MW
Son La Hydropower Plant: 2.400MW
Huoi Quang Hydropower Plant: 520MW
Hua Na Hydropower Plant: 180MW
Lai Chau Hydropower Plant: 1.200MW
Nam Chien Hydropower Plant: 200MW
Xekaman – Saxay Hydropower Plant: 32MW
Dong Van Hydropower Plant: 28MW
Song Lo 2 Hydropower Plant: 28MW
Pac Ma Hydropower Plant: 140MW
Song Ma 3 Hydropower Plant: 29,5MW
Su Pan 1 Hydropower Plant: 30MW
Thuan Hoa hotel - Thua Thien Hue
Luong Son Cement Factory - Hoa Binh
Luck Cement Factory- Thua Thien Hue
9 floors Building TM & CT2 Building - Van Khe
Building HH6 – 18T1, 32T- Nam An Khanh
Road tunnel through Deo Ngang,
Cat Linh – Ha Dong urban railway
Ben Thanh – Suoi Tien urban railway
Currently, the company has about 300 vehicles and equipment with a total cost of nearly 423 billion VND Including: Stone and sand crushing lines (including stone and sand crushing station of 500,000m3/year, TDSU - 90, PDSU 110-200T ); Concrete batching plants of all kinds, including 2 cold concrete batching plants of 120m3/h, and 60m3/h & 90m3/h plants; more than 31 excavators, cranes of all kinds (such as MD900B tower crane; POTAIN tower crane ,); bulldozers, dump trucks, concrete mixing trucks, 100 ton auto weighing stations, concrete pumping systems, water pumps, drilling machines and other machines The above machinery, equipment and technologies are being used for construction at most of the country's major hydropower projects such as: Xekaman 3 Hydropower plant, Son La Hydropower plant, Se San 4A, Nam Chien, Lai Chau, and Huoi Quang hydropower plant, Hua Na Hydropower plant
Implement the Party and State's policy on reforming arrangement and improving the competitiveness of Companies in the economy Since 2005, the Company has been gradually equitizing Companies In December 2005, the Ministry of Construction issued Decision No 2269/QD - BXD to change Song Da 6 Company into Song Da 6 Joint Stock Company
On January 3, 2006, the Company officially went into operation in the form of a Joint Stock Company according to the first business registration certificate No
3903000072 issued by the Department of Planning and Investment of Gia Lai province and now changed the registry for the 18th time on 12/05/2017 issued by Hanoi Department of Planning and Investment with business code 4400135552
During its operation, Song Da 6 Joint Stock Company always applies scientific and technical advances to its management and production and business activities Currently, Song Da 6 Joint Stock Company is applying the quality management system ISO 9001: 2015; environmental management system according to ISO 14001-
2015 standard; Health and safety management system according to BS OHSAS 18001-
2.1.2 Organizational structure, functions of departments in the Company
2.1.2.1 The organizational structure of the company
Vice Director of Technical Vice Director of Financial Vice Director of Investment - Bid
Of Nam Cum Hydropower project
Of Bao Nhai 1 & Bao Nhai 2 HPP
Of Dak Mi 2 Hydropower project
Project committee Nam Mo 2 Hydropower project
Of Civil projects in Ha Noi BOARD OF DIRECTORS
2.1.2.2 Functions and duties of the departments a) General meeting of shareholders: including all shareholders with voting rights, is the highest decision-making of a joint-stock company The General Meeting of Shareholders has the following rights and duties:
- Approving short-term and long-term development orientation of the Company;
- Decide on the type of shares and the total number of shares of each type entitled to be offered for sale;
- Elect, relieve and remove members of the Board of Directors, members of the Board of Supervisor;
- Decide to invest or sell assets valued at 35% or more of the total value of the Company's assets recorded in the most recent audited financial statements;
- Decide to amend and supplement the company's charter, except for the case of adjustment of charter capital due to the sale of new shares within the scope of the number of shares authorized to be offered for sale specified in the company's charter;
- Approving the audited annual financial statements;
- Review and handle violations of the Board of Directors and Board of Supervisor causing damage to the Company and its Shareholders;
- Decide to reorganize, dissolve the Company and appoint a liquidator;
- Other rights and duties as prescribed by Law and the Company's charter b) Board of Management: is an agency with full powers to perform the rights and obligations of the Company that are not under the authority of the General Meeting of
Shareholders The Board of Management has the following powers and obligations:
- Decide the strategy, medium-term development plan and annual business plan of the Company;
- Determine operational goals on the basis of strategic objectives approved by the General Meeting of Shareholders;
- Appointing, dismissing, signing and terminating contracts with the General Director, other executives and deciding their salary To appoint authorized representatives to exercise ownership of shares or capital contributions in other companies, to decide on remuneration and other benefits of such persons;
- To decide on the organizational structure of the Company, the establishment of subsidiaries, the establishment of branches and representative offices, and the capital contribution and purchase of shares of other companies Proposing the reorganization or dissolution of the Company;
- Proposing the annual dividend rate; decide on the time limit and procedures for paying dividends;
- Submit audited annual financial statements, corporate governance reports to the General Meeting of Shareholders c) Board of Supervisor: Elected by General meeting of shareholders, has following responsibilities:
- The Board of Supervisor supervises the Board of Management, Director or General Director in the management and administration of the company; be responsible before the General Meeting of Shareholders for the performance of assigned tasks;
- Check the reasonableness, legitimacy, truthfulness and prudence in the management and administration of business activities, in the organization of accounting, statistical and financial statements;
- Appraisal of the company's business report, annual and six-month financial statements, management evaluation report of the Board of Management;
- Submit appraisal reports on financial statements, annual business reports of the company and report on management evaluation of the Board of Management to the General Meeting of Shareholders at the annual meeting;
- Review the accounting books and other documents of the company, the management and administration of the company's operations at any time, if deemed necessary, or at the discretion of the General Meeting of Shareholders or at the request of the General Meeting of Shareholders or a group of shareholders
- Propose to the Board of Management or the General Meeting of Shareholders measures to amend, supplement and improve the organizational structure, management and business operations of the company;
- Perform other rights and duties as prescribed by the Enterprise Law, the company's charter and the decision of the General Meeting of Shareholders;
41 d) General Director: appointed by the Board of Management, the General Director is the person who runs the day-to-day business of the Company, is under the supervision of the Board of Management and is responsible to the Board of Management, Laws on the exercise of assigned rights and duties The General Director has the following rights and obligations:
- Decide issues related to the company's daily business without having to have decisions of the Board of Management;
- Organize the implementation of decisions of the Board of Management;
- Organizing the implementation of the Company's business plan and investment plan;
- Proposing organizational structure plan, internal management regulations of the Company;
- Appointment and dismissal of management positions in the Company, except for those under the authority of the Board of Management;
- Decide salaries and allowances for employees in the Company, including managers under the appointing authority of the General Director e) Vice Directors: represent the General Director to handle tasks in the General Director's absence and have the duty to assist the General Director according to assigned or authorized tasks The Vice Directors actively deal with the assigned or authorized tasks and take responsibility to the end before the General Director and the law for their decisions, specifically:
- Directing the departments to perform the work they are in charge of;
- Check and urge the departments to implement the regulations of the Company;
Actual situation of construction and installation bidding of Song Da 6 Joint
2.2.1 Searching for project information and bidding packages
The company always strengthens the work of collecting information related to projects and bidding packages from various sources, showing an objective and accurate assessment
- For the Project Owner: Find out the source of capital used and finance of the Owner Project investment purpose, project management system
- For the competitors: For each specific project, find out the competitors in each bidding package, see what their strengths and weaknesses are, how their company's experience and capabilities are, and then find a solution to beat them
- For the suppliers: Find out in the market and sets the conditions when you
43 participate win the bid, what are the main suppliers of materials such as: Concrete, rebar, formwork, cement, sand, stone Their sales experience and reputation, product quality, etc., especially in financial matters, so that we can negotiate debt during difficult times
2.2.2 The Company's order to participate in the bidding
The order to prepare the tender document of Song Da 6 Joint Stock Company is as follows:
Step Content In charged by
Managers, Officers of the Bidding department; Company Managers
2 Officers of the Bidding department
4 Manager of the Bidding department
5 Officers of the Bidding department
6 Manager of the Bidding department
Leader of the company (authorized person in Board of
8 Officers of the Bidding department
9 Officers of the Bidding department
Preliminary analysis to decide to attend bidding
Assign task to prepare tender document
Site investigation, Prepare the tender document
Approve and sign the tender document
Step Content In charged by
10 Manager of the Bidding department
Figure 2.2 Procedure for preparing tender documents of the Company
The process of negotiating and signing the contract is as follows:
In charged by Execution steps
Monitoring & process after bid opening
Assign task to execute the project
Figure 2.3 Contract negotiation and signing process
2.2.3 Winning bidding results of the Company in the period of 2018 - 2021
Table 2.1 Winning bidding results of the Company in the period of 2018 - 2021
No Project Year Location Contract value (billion
1 Nam Luc Hydropower 2018 Lao Cai province 292.84
2 Ban Ho Hydropower 2018 Lao Cai province 79.82
3 Trung Xuan Hydropower 2018 Thanh Hoa Province 64.10
4 The Manor Central Park 2018 Hanoi 13.51
Power intake Structure 2018 Lao PRD 128.62
6 Dak Mi 2 Hydropower 2019 Quang Nam province 138.94
7 Nam Pac 2 Hydropower 2019 Lai Chau province 79.00
8 Bao Nhai 1, 2 Hydropower 2019 Lao Cai province 300.16
Nam An Khanh Urban 2020 Hanoi 56.90
11 Nam Mo 2 Hydropower 2020 Lao PRD 288.87
12 Rock Quarry No 1 Ialy 2021 Gia Lai province 63.00
13 Dak Mi 1 Hydropower 2021 Kon Tum province 500.00
(Reference: Summary report on bidding results – Song Da 6 Bidding Department) 2.2.4 Summary of results achieved in the construction bidding of the Company in the period of 2018 - 2021
Summary of the Company's construction bidding results for each year 2018,
2019, 2020, 2021 is presented based on the group of works that won and failed, shown in Table 2.2 below:
Table 2.2: Summary of the Company's bidding results for the period 2018-:-2021
4 Total bid value (billion dong) 2,457.9 2,378.9 3,752.0 1,580.97
5 Total bid value won (billion dong) 578.9 518.1 1,486.1 563.00
6 Total bid value failed (billion dong) 1,879.0 1,860.8 2,265.9 1,017.97
7 Winning rate in terms of quantity 29,41% 23.53% 15.79% 16,67%
8 Winning rate in terms of value 23,55% 21.78% 39.61% 35.61%
(Reference: Summary report on bidding results – Song Da 6 JSC- Bidding Department) 2.2.5 Analysis of the results achieved in the construction bidding of the Company in the period of 2018 -:-2021
In 2018: The company participated in 17 bidding packages with a total value of 2,245.9 billion VND, of which won 5 packages with a total value of 578.9 billion VND and failed 12 bidding packages with a total value of 1,879.0 billion VND Thus, the winning rate in term of quantity is 29.41% and in term of value is 19.06% This year is the year that the winning rate of the Company is very low, greatly affecting the production and business situation of the Company The main reason is that the experience in preparing bid documents was not good, the information about the projects was very limited From 2014 and earlier, the main source of work of the Company was received from the parent company, Song Da Corporation (big projects appoint contractors)
In 2019: The company participated in bidding for 17 domestic bidding packages (2,378.9 billion VND), the winning rate in term of quantity was 23.53% (4/17 packages) and in term of value was 17.88% (reaching 518.1 billion VND) Thus, the winning rate of the Company has many changes compared to 2018 The bidding results are not high (the winning rate is