Company: MAGH
Filing Date: 2025-02-24
Form Type: DRS/A
Source: 0001493152-25-008050
Chunk: 95

Company: Magnitude International Ltd
Filing Date: 2025-02-24
Form: DRS/A
Chunk 95
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 proceed with preparation for the tender. The preliminary feasibility assessment will include the following: (i) determining the scale of the project in terms of contract value; (ii) reviewing the customer’s requirements, specifications and schedule of the project; (iii) determining the scope of works required; (iv) reviewing contractual risks and obligations; (v) assessing the customer’s credit profile to ascertain its ability to pay based on the proposed payment terms; (vi) reviewing all other risks, including financial, operational, cash flows and regulatory; (vii) assessing the required capital and whether we can cumulate positive cash flows after we have commenced the project for a designated period and achieve at least the minimum gross profit margin we desire; and (viii) evaluating our existing commitments, available resources and competency. Where appropriate, we will clarify any ambiguities and inconsistencies in the tender documents with the potential customer and attend the site show round.

If our COO considers the potential project commercially feasible for our Group, our contract department will include the project in the ongoing tender record list and form a tender team comprising members of our contract department and purchasing department to prepare for the tender. If the information we collected in relation to the tender does not present favorable contract conditions, they will write to the potential customer to reject the tender invitation.

Tender pricing and preparation

During tender preparation, our contract department and purchasing department will ascertain the pricing of the tender by estimating internal costing and budgetary evaluation on costs such as labor, materials and equipment, and where applicable, work with subcontractors and suppliers to obtain pricing for base price determination and to ensure that our tender bid price is competitive and realistic. Throughout the tender preparation process, our contract department will continue to maintain/develop a relationship with the potential customer to obtain budget and job intelligence and other market intelligence on competitors and forward the relevant information to the tender team for pricing refinement.

We adopt a cost estimate plus mark-up pricing model for pricing our tenders. Contracts with our major customers are generally at notional contract sums where the work performed will be measured and valued against agreed rates for progress and/or final payment. As such, when deciding on our tender price, we also make reference to price trends of equipment and materials, trends in the labor market, previous tender records and awarded tender price of previous similar jobs on top of getting quotations from subcontractors and material suppliers. After we have determined the estimated costs (which will include the costs of equipment, materials, subcontractors, labor, preliminary drawings, professional engineering, safety and environmental measures,