Risk management method for the mechanical equipment bidding process

2023 Dianellos GeorgiosStudent: George Dianellos
Year: 2023
Affiliation: National Technical University of Athens/Athens University of Economics and Business (Athens MBA)
Level: Postgraduate
Thesis written in Greek


Τίτλος στα ελληνικά: Ανάπτυξη Μεθόδου Διαχείρισης Κινδύνων στη Διαδικασία Προσφοράς Μηχανολογικού Εξοπλισμού


This thesis focuses on the bidding process of mechanical equipment, and especially on the development of a risk management procedure, with risks having an impact on the decision of bid-acceptance, and on the subsequent proper implementation of the project. The study aims to create an appropriate risk management procedure at the bidding stage of construction projects. Through this procedure, the allocation of the company's resources and the possibility of winning the project is improved, and the major risks are prevented before emerging at the stage of project implementation. The main research objectives are the development of a risk catalogue in the bidding process, the assignment of suitable countermeasures, and the establishment of an integrated risk management system, which includes standard procedures followed by the bidding team. Data was collected through literature review, semi-structured interviews with experts in the field of construction projects, as well as through a case study of an Original Equipment Manufacturer (OEM), focusing on the risks that are identified during the project implementation stage. Firstly, the interviews captured the company's main goals, the risks identified at the bidding and project implementation stage, the countermeasures undertaken by the employees, as well as the risk management procedure that employees follow. Moreover, the case study showed which risks are typically identified at the project implementation stage, as well as the suitable response plans and countermeasures to reduce the probability of risk-occurrence and the risk-impact. Furthermore, an integrated risk management system (IRMS) is proposed at the bidding stage, including the necessary procedures to be followed by the bidding team. The IRMS ensures that the bid is formulated considering the risks of the project, and that the risks transferred to the project team are minimized, in case of successful bid. The study reveals that the risks at the bidding and implementation stage overlap to a large extent. As a result, it is imperative to implement a risk management procedure at the bidding stage, where the greatest uncertainty prevails in the project life cycle, but there is greater flexibility to negotiate with the stakeholders and the cost of change is minimum. Finally, it is indicated that especially for companies that have complex structure and procedures, as well as geographically dispersed departments and factories, lean communication and sharing of information in a timely manner is of utmost importance, which can constitute a serious cause of risks if not organized appropriately. The results of this study can be applied to OEMs of high-tech equipment, that participate in the bidding process with the support of their sub-vendors.

LinkedIn logoContact