Question

Following five activities are associated with construction contract management. Choose the option showing the correct progressive sequence of the activities. 

 

• A. R – Q – P – T – S
• B. S – P – R – T – Q
• C. R – T – P – S – Q
• D. S – T – P – R – Q

Hint:

In construction contract management, always follow the logical sequence: from publishing the tender to securing the contract with the final security deposit.

Answer 1

The Correct Option is D

Construction contract management involves a series of activities that follow a logical and sequential order to ensure that the process from tendering to contract award runs smoothly. Let's break down the activities in their correct order:

Step 1: Publication of Notice Inviting Tender (NIT) (R).
The first step in the construction contract management process is the publication of the Notice Inviting Tender (NIT). This is the announcement made by the client or the organization inviting contractors to submit bids for the project. The NIT provides all the relevant details of the project and tendering process. Hence, this is the very first activity in the sequence, represented by (R).

Step 2: Submission of Earnest Money Deposit (EMD) (T).
Once contractors have seen the NIT and are interested in bidding, the next step is the submission of the Earnest Money Deposit (EMD). This is a security deposit made by the contractor to show their commitment and seriousness about bidding for the project. The EMD acts as a guarantee that the bidder will not withdraw after being selected, and it will be returned once the contract is awarded. Thus, the second step is (T).

Step 3: Opening of Bid (P).
After the submission of EMD, the bids are received and then opened. This is an important step in the process, where the tenders or bids submitted by contractors are opened in the presence of the concerned authorities. This ensures transparency and fairness in the selection process. The opening of bids is the third activity in the sequence, represented by (P).

Step 4: Issue of Letter of Intent (LOI) (S).
Once the bids are opened and evaluated, the next step is the issuance of the Letter of Intent (LOI) to the selected contractor. The LOI signifies that the bidder has been selected and invites them to proceed with formalizing the contract. It is not the final contract, but it is an indication that the contractor has been chosen for the job. Hence, this is the fourth step in the process, represented by (S).

Step 5: Submission of Security Deposit (Q).
Finally, after receiving the LOI, the contractor is required to submit a security deposit. This deposit ensures that the contractor will fulfill the contract according to the terms and conditions agreed upon. It serves as a protection for the client in case the contractor defaults on the project. The submission of the security deposit is the final step in the process, represented by (Q).
Therefore, the correct progressive sequence of activities is: \[ R \text{ (Publication of NIT)} \rightarrow T \text{ (Submission of EMD)} \rightarrow P \text{ (Opening of Bid)} \rightarrow S \text{ (Issue of LOI)} \rightarrow Q \text{ (Submission of Security Deposit)}. \]

Final Answer: (C)