Tank Refurbishment And The Tendering Process

Storage Tank Refurbishment 1

TANK REFURBISHMENT AND THE TENDERING PROCESS

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Tank Refurbishment and the Tendering Process

Introduction

Tank refurbishing refers to modification and repair of tanks by the use of same materials

used at the time of manufacture. Regular maintenance and other services are essential for

petrochemical and energy industry tanks. Tank refurbishing services are done by the “tank

services industry.” As researched by Walker, Brown, and Neven (2016), some of the central

areas in which the tank service companies give their assistants are facilitating tank inspection,

engineering and issues of design, lifting of the tank and remediation, and tank relocation. This

paper aims at equipping the learner with the basic information needed by a manager in tank

refurbishment process and the strategies followed in awarding a refurbishment tender.

Storage Tank Refurbishment

Inspecting, Engineering, and Designing

From the onset, it is required that a certified API on aboveground tank inspector should

be available at the site. He conducts the necessary inspection, to offer consultation services, and

to ensure that the process is performed in accordance to the applicable codes and the region's

standards of refurbishment (Chan, Chan & Jain 2012). The refurbishment process differ from

each other depending on the requirements and therefore the best procedure should be chosen

depending on the requirements.

Prabhakar and Korisettar (2017) elaborate that an in-depth engineering analysis should be

done to maintain the tank’s components during lifting and remedial process. It is the duty of the

engineer to develop the guidelines to be used during the refurbishment and to monitor the entire

process.

Lifting and Remediation of the Tank

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The analysis done by the engineer leads to the recommendations for the best remedial

action to be undertaken and the repair work to be conducted. Most repair works include but are

not limited to; tank lifting, leveling, repair and or replacement of floors and roofs, shell repair,

and reconstruction of the tank's foundation (Prando et al. 2015). Storage tanks should be

refurbished to meet the stipulated local standards including the installation of leak detection

gadgets and prevention barriers.

The engineer-in-charge of monitoring the process could select on various technologies to

be used in lifting the tank. The two most common techniques used in elevating the tanks are; the

conventional method which involves the use of hydraulic jacking equipment and the airbag

lifting system (Ellis et al. 2014). The technology applied should easily facilitate remedial action.

Relocation of the Tank

Some companies may prefer to change the position of the tank instead of maintaining its

original area hence relocating it. Walker, Brown, and Neven (2016) state that changing of the

tank’s position can be done by use of road or water as a means of transport. Variables such as the

tank’s condition and distance to be covered should be considered to make the process cost

friendly.

Procurement, Tendering, and Administration of a Contract

Procurement Process

The management of every entity must understand the art of understanding the company’s

needs. (Laryea & Hughes 2009). Procurement and tendering process follows specific stages

which managers are required to follow. Adedokun, Ibironke and Babatunde (2013) elaborate that

during this process, managers should ensure that they use the allocated funds appropriately

regardless of prevailing market conditions.

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Each theorist, writers and procurement realms have demonstrated slight difference in

elaborating the tendering and procurement process (Rimmer 1991). As recommended by Laryea

(2011) and Samuelson (1986), there are solid stages that a company should follow during a

procurement and awarding of tenders. The stapes starts by need recognition, identification of the

exact need, determining the source of the products or services required, evaluating the best

market price, a purchase order is then issued and delivery must be confirmed, expediting

(involves timing), receiving of products or rendering of the services, inspection, and then invoice

approval and payment. All these statges should be followed in order to facilitate the best

procurement and tender awarding process.

Contract Administration

Under this context, a contract can be defined as an agreement which is in writing and is

governed by law. It is administered between the procuring entity and the contractor, service

provider or supplier. Samuelson (1986) defines contract administration as the process of

monitoring suppliers, service providers and or contractor’s performance according to standards

and regulations in the contract.

On awarding the tender, the contract administrator should be selected and allowed to

involve to engage in contract making of the contract administration plan. Liu, Uchida, and Gao

(2013) further illustrate that a contract administration should be done by both the parties of the

contract to facilitate its efficiency.

From the review, the managers concern deserves to have in-depth information on

refurbishment activities to enable them monitor its smooth running. Managers should be aware

of the procurement process and follow all the stages involved to ascertain that they are giving the

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right industry the tender. As a result, the company is guaranteed of the best services, which are

cost friendly.

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Reference List

Adedokun, OA, Ibironke, OT, & Babatunde, SO 2013, ‘Assessment of competitive tendering

methods of procuring educational building projects in Nigeria’, Journal of Facilities

Management, vol. 11 no. 1, pp. 81-94.

Chan, F, Chan, H, & Jain, V 2012, 'A framework of reverse logistics for the automobile

industry', International Journal of Production Research, vol. 50, no. 5, pp. 1318-1331.

Ellis, K, Sherali, H, Saunders, L, Shao, S, & Crawford, C 2014, 'Bulk tank allocation to improve

distribution planning for the industrial gas industry', IIE Transactions, vol. 46, no. 6, pp.

557-566.

Laryea, S 2011. ‘Quality of tender documents: case studies from the UK’, Construction

Management and Economics, vol. 29 no. 3, pp. 275-286.

Laryea, S, & Hughes, W 2009. ‘Commercial reviews in the tender process of

contractors’, Engineering, Construction and Architectural Management, vol. 16 no. 6,

pp. 558-572.

Liu, J, Uchida, K. & Gao, R 2013. ‘Legal protection and underpricing of IPOs: Evidence from

China’, SSRN Electronic Journal.

Prabhakar, V, & Korisettar, R 2017, 'Ground survey to aerial survey: Methods and best practices

in systematic archaeological explorations and excavations', Current Science (00113891),

vol. 113, no. 10, pp. 1873-1890.

Prando, D, Prada, A, Ochs, F, Gasparella, A, & Baratieri, M 2015, 'Analysis of the energy and

economic impact of cost-optimal buildings refurbishment on district heating

systems', Science & Technology for the Built Environment, vol. 21, no. 6, pp. 876-891.

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Rimmer, S 1991. ‘Competitive tendering, contracting out and franchising: Key concepts and

issues’, Australian Journal of Public Administration, vol. 50 no. 3, pp. 292-302.

Samuelson, W 1986. ‘Bidding for contracts’, Management Science, vol. 32 no. 12, pp. 1533-

1550.

Walker, G, Brown, S, & Neven, L 2016, 'Thermal comfort in care homes: Vulnerability,

responsibility and ‘thermal care’', Building Research & Information, vol. 44, no. 2, pp.

135-146.

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