Procurement & Tendering Level 1 Flashcards
How do you develop an effective procurement strategy?
By first undertaking an analysis to understand the clients objectives, the relationship between them and the clients attitude towards risk.
And then considering the potential procurement routes, evaluating these and selecting the route which provides best fit to the analysis.
Are there other options beyond traditional and D&B?
Yes - such as construction management and management contracting
When would you use traditional over D&B?
If the employer has specific or detailed design requirements and they wish to maintain control over design
If cost certainty is important to the client
If time is not a client priority
when would you advise the use of two-stage tendering?
- where time is constrained
- if the design process would benefit from the technical input of a contractor in the later design stages
What are the benefits of two-stage tendering?
- early appointment of the contractor, therefore would benefit from contractors technical input during later design stages
- ability to overlap design and tendering, thus reducing timescales
How do you identify a client’s approach to time, cost and quality?
Time - understanding if the client requires completion by a defined date, or certainty of completion
Cost - if the client has a limited set of funds or cost target
Quality - understanding if there are specific design or specification requirements and how important these are to the client
How does management contracting differ from construction management?
Management contracting involves the employer appointing a management contractor who in term appoints trade contractors to carry out the works. The Management contractor is paid a % fee and has a direct contractual link with the trade contractors
Whereas with construction management the employer directly appoints multiple contractors and has individual contractors with each of the contractors. The construction manager programmes and co-ordinates the work with no contractual link to the trade contractors.
In what situation would construction management be appropriate?
If the client is experience in construction and has suitable resources to manage a project
If the client wants to achieve an early start on site
If the project is technically complex and requires detailed engagement of specialist consultants and trade contractors
What is your understanding of PFI as a form of procurement?
PFI is a way in which the public sector finances large public works projects through the private sector.
A private sector company handles the upfront costs instead of the government and the government authority pays them back over the long term.
What are the advantages of a two-stage tender process to a client?
- early appointment of the contractor, therefore would benefit from contractors technical input during later design stages
- ability to overlap design and tendering, thus reducing timescales
What are the factors that would be considered in deciding the most appropriate procurement route for a project?
The clients objectives, the priority of these and the relationship between them
The clients attitude towards risk
What current challenges is Covid and/or Brexit and/or the current conflict in Russia / Ukraine bringing to Procurement & Tendering?
- Material shortages
- Price volatility
- Labour shortages
- Increased risk
What sources of guidance do you use when you are procuring and tendering contracts or packages of work?
- RICS Tendering Strategies Guidance Note
- RICS Developing a Construction Procurement Strategy & Selecting an Appropriate Route Guidance Note
- JCT Tendering Practice Note 2012