| Abstract | Tendering for goods and services is widely use in nowadays business that allows firms to
choose the best services providers to supply equipment, materials, services and other
resources required to carry out a project, this process usually involves sub-processes such
as purchasing, acquisition, logistics support, quality assurance and contract management.
However, many firms made many costly mistakes when carry out its procurement process
due to selecting the inappropriate contractors that lead to the whole project failure and
bankruptcy of the company.
CONSON JOIN OPERATING COMPANY (CSJOC) is an offshore oil & gas exploration
company in Vietnam; CSJOC now is planning to enter the development phase, in this
phase, CSJOC need to build an offshore facility for oil & gas production with the
estimated value around US$650 millions. Selecting the best offshore contractors to carry
out these projects is the main task of CSJOC’s Contract & Procurement Group, its help
CSJOC to ensure the project running smoothly within schedule and budget; however, when
look at the records of CSJOC contractors’ performances from the past, it showed that there
were many problems such as schedule delay, equipment failure, inexperience personnel
and poor performance of contractors with costly extra money that CSJOC had had to bear.
CSJOC presumes that some of the problems probably come from the procurement process
due to selecting the inappropriate contractors.
This research will focus on the CSJOC’s procurement process during the past and its
current activities in order to find out the problems and propose a solution to improve its
procurement process so that CSJOC could select the best contractors and service providers
that will help CSJOC to avoid the costly downtime and contribute to its reputation and
sustainable business. |