Company: MAGH
Filing Date: 2025-02-24
Form Type: DRS/A
Source: 0001493152-25-008050
Chunk: 96

Company: Magnitude International Ltd
Filing Date: 2025-02-24
Form: DRS/A
Chunk 96
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 testing, scaffolding, boom lift or area platform and insurance cost), we add on our desired profit margin before we propose a tender price.

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Tender submission and post-tender interview

Once the base price is determined, the completed tender documents will be submitted to our COO for review before they are sent to our CEO for final approval. Once the final bid price has been signed off by our CEO, our contract department will submit the completed tender documents based on the final bid price to the potential customer. The period from our receipt of tender documents to submission of tender proposal to potential customer is generally about four to eight weeks.

After the tender cut-off date, the potential customer will review all submitted tender proposals and then arrange interviews with the short-listed candidates. Our contract department will follow up with all necessary requirements to increase the possibility of a successful tender, including attending tender interviews, giving presentations and explaining our bid, responding to queries, discussion on price and/or contract terms and if required, amending our submitted drawings and revising our tender price. Our contract department will also provide management updates throughout the tender process.

Quotation

For small scale projects and simple works, our customers may request for quotations from us directly and engage us as their main contractors if our quotations are acceptable to them. In these cases, our contract department will be responsible for the preparation of the quotation and the review process will be similar to those for tenders described above. As there are usually fewer formalities involved with a quotation, the period from our receipt of quotation documents to submission of quotation to potential customer is generally about 30 days.

Award of contract

The period for an invitation to tender to become an award contract is generally three to six months. During the fiscal years ended April 30, 2023 and 2024, our tender success rate was approximately 60.0% and 70.0%, respectively. In cases where we are unsuccessful with the tender, the contract department will prepare an evaluation report for our COO to review and determine the areas which we need to improve on to increase our competitiveness.

The award of contract normally comes in the form of a letter of award or letter of intent setting out basic details of the project, including scope of work awarded and notional contract sum, which has to be countersigned by us. The award of tender would be legally binding on the parties after we have counter-signed the letter of award or letter of intent. After that, the parties would typically proceed to negotiate a formal contract with the following