Problem

Block 5’s client required a large number of buildings across the state to be protected against lightning strikes. The client had commenced a tendering process to source a supplier when Block 5 was engaged to assist with the process and ensure an effective sourcing solution was reached.

Complications with the sourcing project arose when proposals were received outlining conflicting information for certification requirements. Further investigation was required to determine the requirements for the lightning protection certification prior to re-tendering. Block 5 was engaged at this stage to assist with the procurement for complex multi-site protection. Project costs and budget were also an issue for the client.

Block 5 Actions

• Block 5 determined that in the absence of a business subject matter expert further research into the subject was required to ensure accurate rectification of the issues. Block 5 engaged specialists from various agencies to gain a complete understanding of the standards and options proposed.

• Block 5 redesigned the tendering process for a new approach to market including more detailed requirements. This was to ensure more competitive proposals were received and enable a stronger negotiation
strategy to deliver the most appropriate and cost-effective result for the client.

• Block 5’s evaluation and negotiation process highlighted the best value for money would be achieved by awarding to two suppliers. Block 5 facilitated negotiations with both suppliers for the best commercial outcome.

Outcome

Block 5 increased the contract manageability by implementing a more detailed methodology and pricing agreement. This allowed for flexibility of site order delivery to ensure the highest priority sites were delivered first to meet the client’s requirements. Block 5 undertook negotiations with the preferred suppliers and secured a 25% saving on the total tendered price. Awarding to two suppliers enabled the client to meet urgent deadlines for protection at multiple sites, as well as provide a better rate for installation at selected sites. The works were completed to a high standard owing to the deeper understanding of the subject that Block 5 provided. The 25% saving on the project delivery secured by Block 5 had never been accomplished for the client before.