3.2 Procurement & Tendering Flashcards
(17 cards)
What is the difference between Tendering and Procurement?
Tendering is the process of inviting contractors to bid for work. Procurement is the overall strategy of how the tendering will be completed.
What are the procurement options you are aware of?
- Traditional
- Design and build
- Management contracting
- Construction management
Advantages of traditional procurement?
- Client’s design control
- Less risk priced by Contractors
Disadvantages of traditional procurement?
- Poor certainty of price
- Potential adversarial relationship
- No supply-chain involvement at design
Advantages of D&B procurement?
- Single point of responsibility
- Overlapping in design / construction
- Greater price certainty
Disadvantages of D&B procurement?
- Bids are difficult to compare as each design is different
- Client changes can be expensive
- Quality may be compromised
- Less aesthetic appeal
What is management contracting?
Client procures the consultants and management contractor to complete all the building works.
What is construction management?
Client procures the consultants, construction manager and trade. Construction manager manages the trades.
What are the main tendering options?
Single stage tender - One tender is issued to all bidders
Two stage tender - frist bidders compete for preffered bidder(PCSA), then once design is fully complete they enter into contract.
Negotiated tender - essential single stage with just one supplier.
Advantages of negotiated tender?
Speed - only rely on one return.
Disadvantages of negotiated tender?
Not competitive
Dificult to prove value for money has been achieved.
What should I consider before entering negotiations?
-Authorisations
-Research into topic.
-Who is opposing.
-Structure of negotiation.
What are the barriers to successful negotiations?
-Lack of trust.
-Missing or inaccurate information.
-Cultural differences.
-Lack of emotional intelligence.
-Communication barriers.
What negotiation tactic?
Collab - create a win-win by working together
Compromise - meet in the middle
Combat - adversarial/aggressive
What is in a tender pack?
- Invitation to tender
- Form for tender
- Contract conditions
- Employer’s amendments
- Tender scoring matrix
- Project information
- Pricing document
- Quality questions
How do you deal with tender returns?
Open at the same time (Late submissions can’t be opened)
- Check they are valid (not missing any required documentation)
- Clarify any unclear elements
- Compare the returns and normalise
- Prepare a recommendation report for the PM
- Once accepted proceed with drafting subcontract
What is the procurement act?
Came into effect Feb 2025
Sets guidelines for public procurement to allow:
- Transparency
- Scrutiny
- Value for money (requires competitive tendering procedure)
