Marvin’s team needs to consider other factors. Marvin’s business makes strategic decisions about whether or to not bid on a job. Marvin considered these factors before bidding. It’s a long-term client project. This would be Marvin’s largest contract.
Client releases the RFP. Contracts are cost-reimbursable. Projects that were previously fixed price (FFP), were released by the client. WBS mentions that clients have 5 levels of pricing. There are additional factors to be aware of, besides the ones previously mentioned. It is important to understand the scope of the project so that we can put our resources and experience into the right hands. You should also consider the objective aspects such as how much will it cost (time/money). How likely is it that the bid will be accepted? What is the potential profit from the contract? Subject considerations: Who are the competitors? Should I bid to retain the edge on the client, or should the competition win? They should bid for the job. As a project-driven business, you will be able to win many competitive biddings. Marvin and his staff should bid for this job.
Reason being, 1. The contract comes from a client who is important to them, so it could give them an advantage over their competitors. They hesitate because they don’t want the client to see the cost structure. They will make more profit over the long-term and maintain good relationships with clients. References: Passer, R. (n.d.). Bidding factors and behaviour of construction companies. A description of 2 current bidding models.