Contractor Selection and tendering Process

Question 1

What forms a contract?

Answer 1

Offer and acceptance
Consideration and form of tender

Question 2

An acceptance must be
- certain and ….
- Un….
- By…
- …. acceptance

Answer 2

• Certain and unambiguous
• Unconditional
• By conduct
• Retrospective acceptance

Question 3

Types of documents used when tendering a project
4

Answer 3

1. Design Brief
2. Drawings and Performance specifications
3. Schedule of rates and prices
4. Bill of quantities and approximate quantities

Question 4

What are the 4 mechanisms for contractor selection?

Answer 4

1. Negotiation
2. open tendering
3. Selective tendering
   - Single and two stage
4. Serial tendering

Question 5

What are the mechanisms for contractor selection?

Answer 5

1. Negotiation
2. open tendering
3. Selective tendering
   - Single and two stage
4. Serial tendering

Question 6

Open tendering

Answer 6

Competitive public procurement

Question 7

Advantages of open tendering

Answer 7

No Favouritism - open to all
Capable firms not always on selected list
Maximum benefit from competition
(Companies will compete and lower their prices)

Question 8

Disadvantages of open tendering

Answer 8

Lowest tender may be inexperienced firm. Therefore the lowest price may mean bad quality.
No guarantee of stability or capability of the firm
Total cost of tendering is increased. (Larger search and longer process)

Question 9

what are the 4 stages in selective tendering?
- the p… e…
- the in….
- the…
- the ass… and ….

Answer 9

1. The preliminary enquiry
2. The invitation to tender
3. The tender
4. Assessment and award

Question 10

1 disadvantage and advantage of selective tendering

Answer 10

Advantage - Only capable firms can submit a price
Disadvantage - Level of tender may be higher

Question 11

Under selective tendering, what is single Tendering?
Who negotiates the price?

Answer 11

By nomination or negotiation with one company. The price is negotiated by the PQS and contractor

Question 12

Under selective tendering, what is serial Tendering?
Allowing for…

Answer 12

Where a company will continue to use the same contractor as they have formed a beneficial relationship. Allowing for annual contracts or follow-on phases

Question 13

What are the stages of two stage selective tendering?
(Think about the course work in Meth and Tech)

Answer 13

Stage 1.
Schedule of rates for main items (Labour, materials, plant)
Construction programme is proposed
Preliminaries are identified
Basic version of the project
Stage 2. Full project woker up and Priced

Question 14

Objective of preselection.
(creating a short listed group of contractors)

Answer 14

• Identify contractors with necessary skills, resources and desire to carry out work
• To give contractors the opportunity to plan their tender load and programme
• Avoid costly mistakes

Question 15

What should you have in mind for preselection

Answer 15

Size
Charachter
Location
Timing

Question 15

What should you have in mind for preselection

Answer 15

Size
Charachter
Location
Timing

Question 16

Response by contractor will be based on what?

Answer 16

From contractors side
- Whether or not they have conflicting future workload.
- Financial and physical workload. Do they have enough reserves to even start the project?
- Market Conditions
- Previous experience
From clients side
- Adequacy of information provided
- Project technicals and risks involved
- Risks imposed by the form of contract and particulars
- The number of contractors provided

Question 17

What are framework contracts?

Answer 17

A laid out contract that provides the scope of work and possible locations for the work and services. They will describe the contract conditions that will be used for preconstruction services. Useful for people who are continuously commissioning contracts

Question 18

What are some problems in formulation of bids?

Answer 18

• Build up errors
• Problems in estimation
• Cover bidding
• Cashflow
• Withdrawal of tender