Xây dựng chiến lược đấu thầu xây lắp tại công ty cổ phần sông đà 6

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ TIẾN THỦ BUILDING THE BIDDING STRATEGY FOR SONG DA JOINT STOCK COMPANY XÂY DỰNG CHIẾN LƯỢC ĐẤU THẦU XÂY LẮP TẠI CÔNG TY CỔ PHẦN SÔNG ĐÀ LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - LÊ TIẾN THỦ BUILDING THE BIDDING STRATEGY FOR SONG DA JOINT STOCK COMPANY XÂY DỰNG CHIẾN LƯỢC ĐẤU THẦU XÂY LẮP TẠI CÔNG TY CỔ PHẦN SÔNG ĐÀ Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS HỒNG ĐÌNH PHI Hà Nội - 2018 DECLARATION The author asserts that the results of the study in the thesis are the result of the author's independent work during the period of study and composition and have not been published in the research and writings of others Research results and other people's materials (excerpts, tables, figures, formulas and other materials) are used in validated citations and allowed (if needed) The author is responsible for to the Board of Appraisal, Hanoi School of Business and Management (HSB), Hanoi National University and the copyright law for the mentioned above June ,2018 i ACKNOWLEGEMENT I would like to express my profound gratitude to Prof Hoang Dinh Phi who was very dedicated to instruct, guide and consult me to choose research topics, theoretical and practical background in the process of writing this thesis I would like to sincerely thank the teachers of The MBA program at VNU Hanoi School of Business and Management who have taught me and provided me with knowledge during the study for me to complete this thesis I would also like to thank my colleagues and staffs at Song Da JSC for providing me with information and materials to facilitate my research; and the data for the analysis and finalization of this thesis June ,2018 Author ii TABLE OF CONTENTS DECLARATION i ACKNOWLEGEMENT ii LIST OF TABLE v LIST OF FIGURES vi HEADING CHAPTER 1: BASIC THEORY ON FORMULATION OF CONSTRUCTION BIDDING STRATEGY 1.1 Construction Bidding 1.1.1 Concept and nature of construction bidding 1.1.2 The role of construction bidding 1.2 Formulation of Construction bidding strategy 1.2.1 Determining the strategic objectives of bidding 1.2.2 Analysis of internal and external environment 10 1.2.3 Analysis of competitiveness in construction bidding 19 1.2.4 Strategic Analysis and Selection - SWOT matrix 26 1.2.5 Proposing the steps in formulating a bidding strategy for construction and installation at Song Da Joint Stock Company 29 CHAPTER 2: FORMULATION OF THE CONSTRUCTION BIDDING STRATEGY FOR SONG DA JOINT STOCK COMPANY DURING 20192023 31 2.1 Introduction about Song Da JSC 31 2.2 Competitive capacity in bidding for construction and installation at Song Da Joint Stock Company 33 2.2.1 Qualification and experience 33 2.2.2 Quality and technical solutions 34 2.2.3 Bid 35 iii 2.2.4 Customer relationship 35 2.2.5 Prestige and brand 36 2.2.6 Human resources and tools to support the bidding 37 2.3 Internal and external environmental analysis influences the company's bidding strategy for construction and installation 37 2.3.1 Macro-environmental analysis 37 2.3.2 Environmental Analysis of Construction Industry 44 2.3.3 Environmental analysis inside Song Da JSC 47 2.4 Strengths, weaknesses, opportunities, challenges in bidding for construction and installation in Song Da JSC 56 CHAPTER 3: PROPOSAL OF STRATEGY AND SOLUTIONS FOR SONG DA CORPORATION 61 3.1 Propose the bidding strategy for construction and installation 61 3.1.1 Identify vision, mission and core values 61 3.1.2 Strategic objectives of Song Da 62 3.2 Solution to build construction strategy of Song Da JSC 63 3.2.1 Solutions for building the apparatus and developing human resources in construction bidding for construction and installation 63 3.2.2 Solutions to improve financial capacity 66 3.2.3 Renew and improve the skill of building bids and participating and bidding 69 3.2.4 Pricing strategies to secure winning bids 77 3.2.5 Solutions on marketing activities in bidding for construction and installation 81 CONCLUSION 85 REFERENCES 87 iv LIST OF TABLE Table 1.1: Capacity and experience of contractors 20 v LIST OF FIGURES Figure 1.1: SWOT matrix 28 Figure 1.2: Steps of construction bidding strategy at Song Da JSC 29 Figure 2.1: Organization chart of Song Da JSC 32 Figure 2.2: Total value of construction output by type of construction works 45 Figure 2.3: Growth rate of the construction industry to 2020 46 Figure 2.4: Construction sector value by projected area by 2022 47 Figure 2.5: Rate of employees by level at Song Da JSC 52 Figure 2.6: Earnings after tax / revenue of Song Da Joint Stock Company 54 Figure 2.7: Evaluate the ROE business area, the ratio of income to capital used 55 vi HEADING The Rationale of Research Bidding is a widely used form in the past to select the most qualified contractors to undertake construction works Bidding is the scientific form that many countries have applied for a long time Bidding ensures a highly efficient, fair, competitive and transparent investment process At present, Vietnam National Assembly has promulgated the Law on Tendering/Bidding No 43/2013 / QH13 dated 26 November 2013, and the Vietnam Government has issued Decree No 63/2014 / ND-CP dated 26 June 2014 on details of the implementation of a number of articles of the Bidding Law on contractor selection However, the tendering/bidding activities have not been able to obtain the perfection in tendering activities and state management of tendering of construction firms In bidding, competition is very drastic on bidding prices, construction capacity, and construction schedule (expressed through technical method statement) And the competition helps bidders strengthen in all aspects Bidding success is highly dependent on the company's bidding strategy In fact, the company has a professional bidding strategy; the winning rate is often high Therefore, the assessment of the current status of the bidding capacity of enterprises and the application of scientific methods in the analysis and development of construction bidding strategies in the construction industry are very necessary Song Da Joint Stock Company is an affiliate of Song Da Corporation, a unit with strong and prestigious trademark in the field of construction, especially hydropower construction and civil construction For the last years, during the bidding process, the company has showed many competitive advantages such as prestige, brand name in the big market, many years of experience in the construction of hydropower projects, skilled workers, modern machinery and equipment, etc However, the winning rate of the company is not high As reported by the management board, some main reasons are: The Company has not had much experience in executing civil works; Bid prices are high due to incompetent budget estimation; High management costs; many contingencies that increased bid prices, etc Therefore, the development of a comprehensive and effective bidding strategy is an urgent task that the company needs to complete for its development Based on the need as mentioned above, the author has decided to select the title "Building the Bidding Strategy for Song Da Joint Stock Company” for the graduation thesis of the master of business administration program at HSB Research question: What should Song Da JSC to develop a construction bidding strategy in the future? Aim of research Researching the bidding strategy for construction bidding of Song Da Joint Stock Company is to propose an effective and comprehensive construction bidding strategy in the coming time Research mission - Study the theoretical basis on the bidding strategy for construction bidding, tools for assessment and strategic planning of bidding, especially the bidding strategy for construction - Analyze the actual situation of the bidding strategy for construction of Song Da Joint Stock Company recently; determine the achievements, limitations and causes - Advise, recommendations to build a more effective and comprehensive bidding strategy for the Company in the coming time Objects of research Strategic research thesis focuses mainly on bidding strategy for construction bidding of Song Da Joint Stock Company the bidding documents, but generally there are three general sections on the company, construction techniques and construction costs The completion of the bid preparation skills consists of three steps: First, study the tender documents: This is a crucial step in the bid This step includes the following specific tasks:  Information from the investor: Information from the investor is collected through bidding documents This is the most important information related to the tender package that the contractor must handle The contractor must thoroughly study and analyze in order to make the most of the favorable conditions of the project and to meet the requirements of the investor In this step, you must answer the following questions: Where is the construction site? What is the scope of package? Capital used? Construction schedule? Special technical requirements?  Collecting information from localities and project site for construction of works: The contractor must study the actual geographic location, construction site, geology, terrain, transportation, communication , natural conditions, conditions of raw materials supply, on-site supplies, conditions for providing sub-contracted professional and general labor supply, the ability to provide food, food and prices This information will be the basis for establishing the method of organizing the construction and technical solutions, the delivery of materials, setting the bid price Second, improve the quality of the profile and technical proposal in the Bid  Profile and legal documents: This is the first part of the bid evaluated by the investor as the contractor Bidders must declare available capabilities as required by the bidding documents, such as documents proving the legal status of the contractor, financial capacity, ability to mobilize equipment, personnel, experience of contractors This is the easiest part, but it's the 73 easiest The contractor must therefore compile a record of the highest capacity that can be met so that the tender can only be entered into the records to reduce time and reduce errors In addition, the profile form is also important; this is the first stage to impress the bidder  Technical proposal: Based on the information collected on the bidding package, the conditions in the project construction area for the construction of the bid for the technical part When constructing the technical section, the contractor shall have to fully and fully perform the following stages: + Building a construction site: With a plan to organize the construction of camps, warehouses and yards to gather materials, machinery and yards to produce prefabricated components, directions, the construction will ensure the progress of construction and have the opportunity to reduce costs In the tender of the enterprise, the layout of public expenditure site often lacked some drawings of the site details of the camp In order to ensure the tightness and completeness, the bidder shall pay attention to the details of the drawings contained in the bid + Plan of using machinery: This is the stage that affects the quality and cost of the works In addition to having to bring the machinery and equipment into production according to the requirements of the tender invitation documents, the contractor must additionally calculate additional machinery and equipment to ensure production With the features of different machines will lead to different product cost and construction progress is also different Therefore, it is necessary to select the combination of machines in terms of capacity, appropriate features, ensure good operation to take full advantage of the machine capacity and ensure the implementation of the production plan + Materials, materials, labor: This is a decisive factor to the cost, quality and progress of construction For construction works, finding local resources to speed up construction progress, reducing costs is one of the important factors 74 Based on the information gathered about the source of materials, materials and labor for the direct project or partnership with local businesses to provide materials or to exploit produce or process on the spot The main types of materials (sand, stone, prefabricated concrete components ) create conditions to accelerate construction speed, reduce cost items in the construction and installation costs, and reduce construction costs build up + Examine technical design documents to work out measures of construction in accordance with the work order and high feasibility Also through the technical design documents, set out the technical solutions for construction at critical milestones Construction method statement plays a very important role in the cost of construction The more constructive contractors are in terms of providing reasonable construction measures In order to select the construction methods, it is necessary to compare different construction alternatives with labor costs, time and cost of each option Therefore, in order to ensure the reasonable, feasible and lower cost, it is necessary to thoroughly study the design documents and understand the natural and socio-economic conditions at site + Through the method of organizing the construction, the plan of using machinery and equipment to make the construction progress of each part of the work Construction progress and methods of construction are closely related Construction measures will be built from the construction method On the other hand, from the pre-construction progress, it is necessary to find appropriate construction method to meet that progress Bidding documents often contain technical specifications for contractors to complete sooner than the schedule This is an important point that the contractor can take advantage of in terms of technical points + Bids should include measures for labor safety, traffic safety, fire and explosion prevention and environmental sanitation depending on the specific 75 work, different measures However, some principles that all works must meet are: equipping workers with knowledge of labor safety, labor protection equipment, knowledge of fire and explosion prevention and hygiene school Third, the construction of financial proposal, price: Determining the bid price is the most important factor that all construction companies in general and Song Da in particular pay special attention to, which is the price competition To win a bid there is no other way that the company must have a specific pricing strategy to compete for, so it must be sufficient to cover costs and ensure profitability goals but it must be small enough to win the bid To achieve this, the Company must first adjust the cost estimate of construction and installation works So far, the company's bid price is still using the local unit price In many cases local prices not accurately reflect the continuous price changes in the market, making the bid price too high or too low, leading to a bid rejection or loss if the bid is successful To overcome the low or too high bidding price, the Company set its own bid price on the basis of adjusting the unit price determination by updating the prices of materials in a timely manner capture information about prices To this, for each project, the Company must:  Studying the characteristics of the works, characteristics of climatic conditions, topography of the area  Investigate construction market, material supply network at construction site, local area, transportation network  Carefully study the local labor force In addition to lowering the bid price, it is mainly based on the internal factors such as the ability to save the general cost, the cost of construction machines However, the company's price strategy is not always a low price strategy In case of high quality requirements, the contractor must have experience depending on the competitor; the company can apply high quality strategy 76 3.2.4 Pricing strategies to secure winning bids In the bid, in addition to the aggregate bid price, the investor must compel the contractor to have a detailed unit price analysis sheet for the contractor to check that the work items are built in The norms of materials, labor and construction machines as required by the regulations of the Ministry of Construction promulgated or not Through studying the bidding documents for construction in Vietnam as well as international ones, one of the important criteria for investors to consider winning bids is still the bidding price (Gdth) Bid price is a combination of unit price and volume of work items in the whole project The bid price can be calculated according to the following formula: n Gdth   QI xDgi i 1 Inside: Qi: is the quantity of work item i supplied by the bidder on the basis of the prognosis removed from the construction design drawing Dgi is the unit price for the i th job item set up by the contractor under the general guidance on construction pricing based on the material price announcement sheet at the time specified in the bidding dossier and based on the specific conditions n: the number of work items to be performed in the project 77 Risk factor Direct costs (T) (Hrr) General costs Price lost factor (C) Bid price (Dgi) (Htgia) Expected interest (L) VAT tax (GTGT) Other direct costs (TT) The bid price structure (Dgi) includes the following costs: - Direct costs, denoted by T, include: + Cost of materials, denoted as VL + Labor cost, denoted as NC + Construction machine cost, denoted M + Other direct costs, denoted as TT T = VL + NC + M + TT Add all the costs, interest; taxes are the bid price (Dgi) This is one of the most important determinants of the choice of a buyer's product after considering the criteria of qualification, experience and technique Depending on the complexity and time of construction of the project, we can calculate the risk factor (Hrr) or coefficient of inflation (Htgia) Bid prices will be calculated by the following formula: Dgi = Dgi (1+Hrr + Htgia) The calculation of consumption norms and costs for materials, labor and construction machines must be based on the actual or experience of construction and the work items volume of each section stated in the design 78 dossier, this is one of the important bases for the contractor used as a basis for increasing or reducing the price in the tender Conclusion: If the formula for calculating materials, labor, machine shifts is used as stated, when setting the bid price, all bidders will have the same unit price and difficult to produce differently Therefore, enterprises should study in depth the foreign standards and coefficients that in the international tenders of foreign contractors have included in their bid price are: rotation coefficient of materials, coefficients from the actual experience of construction to the estimate and the need to determine the level of workers for each type of work based on the team, the team has been tested through many construction and personnel This means that you can build your own unit price and create an advantage over your competitors - General costs: General costs are costs that cannot be directly calculated for each construction work but it ensures the construction of the whole project - Tax determination: The tax rate is calculated according to the regulations of the State - Determination of interest rate: Determined based on the objectives of the bid, but must cover the cost It mean: - Expected interest = Selling price - The total cost should always - Build bid price: In order to be reasonably constructed, it is necessary to determine the maximum and minimum rates of the works + Maximum price (Gmax): This is the ceiling price offered by the investor when the offer Minimum Price (Gmin): This is the guaranteed price for the contractor just enough to cover the basic costs such as material costs, labor, motorcycle and site management costs + The bid winning price 79 Actually, the bid price cannot be higher than the ceiling price (Gmax) In the process of competition, contractors usually reduce the price to the level that can be but not lower than the cost (Gmin) Therefore, choosing the bid price just to ensure the winning bid is both profitable That is, the bid price must be within: Gmin  Gdt  Gmax In the competitive process, depending on the situation, the Company can flexibly set the bid price according to the following policies: - High price policy: Company can apply when special and exclusive technology It is forcing the investors to accept, however, cannot exceed the bid price (for state-managed projects) This policy is limited when only one contractor is qualified for the technology - Low price policy: The company offers low prices (with equivalent technical conditions) to eliminate existing competitors and prevent new competitors To implement this policy, the Company must utilize resources and strengths to reduce costs The break-even price may be used to determine the bid price - Flexible price policy by market: The Company must depend on the market situation to set reasonable bid prices to ensure winning bids For example, when the investment demand of the society, when the demand for construction is reduced, it is necessary to offer low bids to create jobs for workers and vice versa - Policy on product differentiation: When implementing this policy, when determining the bidding price, the company needs to distinguish each geographic area (depending on the region where the price of raw materials varies, traffic conditions different, transporting materials, supplying different materials ) or distinguish them according to plan or season The bidder now depends on the bidding objective that sets the price as: - Maximum profit 80 - Average profit - Minimum profit - Create jobs - Enter new markets These are the target levels that the contractor sets If you call: Gdti: is the bid price corresponding to each level of the bid objective (there are levels, i = ÷ 5) hi: is the coefficient of determination of bid price according to objective i (h≥1) then: Gdti = hi Gban; where: hi = Xi +1 The calculation is as follows: call Li: is the target profit i Xi: is the rate of return on targeting i (%) We have: Xi  Li Gdti  Gban Gban(hi  1)    hi  hay hi  Xi  Gban Gban Gban Contractors shall base themselves on each specific time, circumstance, level of competition and business strategy to determine the objectives of bidding according to the above formula The profit level is determined by the target level 3.2.5 Solutions on marketing activities in bidding for construction and installation Through bidding marketing, the Company will build its prestige in the construction market, create the trust of customers and help the Company get valuable information about the activities of the bidding market , fluctuations in prices of building materials, customers, competitors and the law The company has built a good business strategy especially in the field of bidding market search Marketing in bidding includes the following main activities: - Search and collect information about the project, bidding packages to participate in bidding 81 - Collect information on the fluctuation of raw material prices in the market - Collect information about customers - Research on competitors - Information, advertising, promotion of resources of the company create prestige for customers Based on the analysis of the information provided above, the Company presents specific bid strategies to increase the Company's ability to win Competitive bidding strategies include: price strategy, market expansion strategy, joint venture strategy +) Market classification strategy: Companies have to divide the market into small, highly homogeneous markets in one way or another in order to find a way to enter the market in line with the company's niche - Classification by nature: Civil, industrial, traffic works, irrigation works - Geographical classification: Foreign market, domestic market, local market - Market classification by scale: Large market, medium and small market +) Competitive Strategy: To compete successfully, especially in competitive bidding, the Company can apply the following competitive strategies: - Low bid bidding strategy: The company always bids low, accepts low interest rates in each project, but gross profit can still be high due to many projects - Joint Venture Strategy: In order to increase competitiveness, the Company will enter into partnership with other enterprises in bidding, especially in international bidding to create sufficient strength to compete with foreign contractors - Strategies based on relative advantage: According to this strategy, the company needs to fully exploit the capabilities produced by the specific 82 production For example, the ability of construction technology or machinery This specific ability is not in the other competitors although they are stronger opponents It means that the company does not engage directly with competitors but only uses their weaknesses to promote their strengths +) Consumption strategy: - The characteristics of the construction industry are mono-product, which occurs before the production process begins Company's consumption policy is mentioned in two stages: - Pre-construction phase: The Company identifies the market needs attention, strengthening the relationship with investors in the region to be more likely to win the bid - Construction and commissioning phase: The contract signing, acceptance, handover and warranty must be done quickly and efficiently Thus, the company will enhance its prestige, create favorable conditions and increase the ability to win the following works +) Advertising strategy: The construction businesses refer to the media or advertise as something of a luxury, since construction is always technical and dry, so most construction businesses are not able to achieve this This is also a new solution that makes a difference compared to competitors of the Company Reputation is not a determinant of the outcome of the tender but has a great impact on the Company's ability to win Therefore, the Company needs to strengthen communication activities, promote the reputation of the unit Advertising also helps create a good image for the Company to expand and assert its influence on the choice of investors The company can advertise on the media by the specific certification of the work has been built quality and progress The company should actively participate in community activities such as building 83 gratitude houses, sponsoring cultural events, sports and tourism, television programs, charity activities However, in order to implement these solutions, the Company should have the following conditions: - Staff trained in marketing enthusiasm, dynamic - Appropriate funding for marketing activities in bidding: costs of researching customers, competitors, fluctuations in raw material prices Effective marketing is an important factor contributing to the Company's ability to win Therefore, the Company should invest more in this activity in order to improve the Company's ability to win the bid 84 CONCLUSION The purpose of this thesis is to develop a bidding strategy for construction and installation of Song Da JSC by 2023 In order to achieve this objective, the thesis has focused on clarifying the rationale for bidding strategy for construction and installation and construction of bidding strategy in construction and installation Accordingly, the author proposes the process of building a bidding strategy for construction and installation and applies this model to analyze, evaluate and develop a bidding strategy for construction and installation of Song Da JSC by 2023 The thesis evaluates the competitive capacity in construction bidding at Song Da JSC through the evaluation of the competitive value chain approach in the process of construction bidding including: professional capacity and experience of the Company; Quality and technical solutions when implementing the contract; bid price; customer relationship; prestige, brand name of the company as well as human resources and bidding tools that the company owns and uses In addition, the thesis also analyzes the context in which Song Da Joint Stock Company is facing, including its internal context and external context That is the strengths, weaknesses, opportunities and challenges that the company is facing in the planning and implementation of construction bidding in the company Based on the current situation of the Company's competitiveness, the general context of the company, strategic orientation of development of Song Da in the coming time, the author proposed some solutions to build the bidding strategy construction Up to 2022, there will be main groups of solutions: (1) solution for building the apparatus and human resource development in the construction bidding; (2) solutions to improve financial capacity; (3) Renew 85 and improve the skill of building bids and participation in bidding; (4) pricing strategies to secure winning bids; Finally, solutions for marketing activities in construction bidding Due to limited funding, time, research experience of the author is still modest, so the thesis has many shortcomings New research is just about building a strategy for construction bidding The process of analysis and construction has not used many new, advanced methods, quantitative methods to build As a result, the results of the research are very qualitative, yet many quantifiable solutions are not available Future studies may use the contents of this study to develop a procurement strategy for construction units of similar size 86 REFERENCES Bộ Kế hoạch - Đầu tư, 2002 Một số vấn đề lý luận, phương pháp xây dựng chiến lược 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BIDDING STRATEGY FOR SONG DA JOINT STOCK COMPANY XÂY DỰNG CHIẾN LƯỢC ĐẤU THẦU XÂY LẮP TẠI CÔNG TY CỔ PHẦN SÔNG ĐÀ Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH... District, Hanoi Website: www.songda6.com.vn Email: congtycophansongda6@songda6.com.vn Tel: 024.2225 366 6 Fax: 024.2225 366 6 Tax code: 4400135552 Chartered capital: VND 347,7 16, 110,000 History of formation... and installation 63 3.2.2 Solutions to improve financial capacity 66 3.2.3 Renew and improve the skill of building bids and participating and bidding 69 3.2.4 Pricing strategies