LO5 Flashcards
(19 cards)
In what ways could approaches to procurement differ between public sector and private sector clients?
a. Public focuses:
i. Transparency
ii. Social value
iii. Value for money
iv. Public Contract Regulations
b. Private focuses:
i. Value for money
ii. Speed
iii. Are not required to be as transparent
What is a framework agreement?
a. Umbrella agreement to establish a long-term relationship with two or more parties
b. Used when client continues to commission work to reduce timescale and risk
c. Clients have existing relationships with the contractors
d. Sets out overriding contractual terms between client and contractor for pre-agreed period
What is a pre-construction services agreement?
a. Allows the client to employ contractors prior to the Principal Contractor has been appointed
b. Often used in two-stage procurement where contractors are procured to aid with the design process prior to the construction of the design being procured within the second stage
c. Benefits:
i. Aids buildability
ii. Specialist advice - can also advise specialist contractors to appoint
iii. Develop cost plan
iv. Draft preliminaries
v. Aid with planning applications
What documents should be included in an ITT package?
a. Letter of invitation
b. Form of tender
c. Contract terms
d. Specifications
e. Pricing schedule
f. Evaluation criteria
g. Designs
h. Bill of quantities
How would the contents of the ITT differ between a Traditional and a Design and Build procurement route?
In a Traditional ITT the completed design is included, however due to the nature of Design and Build it cannot be included within the ITT
Design and build would have more detailed ERs
Why is it essential for the Employer’s Requirements (ERs) to be clear and comprehensive in a Design and Build ITT?
Because the client is not producing the design and instead outsourcing this responsibility and risk they must be clear about what they require and desire from the project to ensure that they receive a design that they are happy with.
What are the ‘contractor’s proposals’ and what do they comprise of?
a. A document that details the specifics of a construction project by contractors to provide the client with a clear understanding to aid with negotiation prior to a formal agreement
b. Includes:
i. Scope of work
ii. Programme
iii. Materials
iv. Costs
v. Terms of the contract
What is a tender addendum?
Any written document issued by the Authority for the purposes of modifying, supplementing or amending any part of the Invitation to Tender
What is your understanding of the term Preliminaries?
a. Refer to the essential costs and conditions necessary for a project’s execution, but which are not typically part of the finished structure
b. Examples:
i. Site setup - welfare, utilities and offices
ii. Project management fees
iii. Temporary works
iv. Contingencies
v. Overheads
vi. Site security, cleaning and waste removal
How does a main contractor price the preliminaries element of their tender response?
Consideration of each individual cost or percentage of the entire contract value
What do tenderers return in the first stage of a two-stage tender process?
Tenderers provide information to enable to the client to shortlist contractors based on experience, qualifications and technical capabilities
What happens in the second stage of a two-stage tender process?
a. Shortlisted tenderers provide more detailed proposals
b. Proposals include price, designs and plans for how it will be delivered
c. Design is refined, the scope of work is finalized and the contract terms and price is negotiated
What measures can be taken to reduce the likelihood of cost overruns in the second stage of a two-stage tender?
a. Focus on a detailed design
b. Early contractor input
c. Robust cost estimation
d. Clear agreements
e. Value engineering
Explain what the client team do during the tender period (the period where tenderers are pricing the work)
a. Respond to queries from tenders
b. Monitor the process, tracking who has received documents and who will be tendering
c. Hold site meetings - where applicable
d. Ensure confidentiality and fairness
e. Prepare for evaluation by setting up panels and creating scoring systems
What approach should be taken when dealing with tender queries in the tender period?
a. A transparent and fair approach should be taken, queries show contractors have read the documentation, a lack of questions should raise red flags
b. Answers should be provided to all tendering contractors, name of querying tender shouldn’t be shared
c. Answers to questions should be done so in the same tone as that of writing a contract document
Describe the process undertaken to evaluate tender returns
After having tendered works already:
a. Tenders are formally opened - sometimes at a formal ceremony
b. Check each for compliance
c. Evaluate against criteria (price, quality, programme, etc.)
d. Obtain clarifications
e. Score and rank
f. Select
g. Negotiate
h. Award
What is the content of a Tender Evaluation Report?
a. Document summarizing the process and results of tender evaluation
b. Provides evaluation for each tender and aids the client to make an informed decision
c. Written by evaluation committee for the client
Explain the process a main contractor goes through upon receipt of an ITT.
a. Acknowledge receival
b. High level review identifying the scope and key dates - assess their feasibility
c. Internal assembly of teams
d. Detailed document analysis
e. Request clarification
f. Pricing and programme
g. Compile tender submission
h. Submit
What are the risks of issuing an incomplete or unclear ITT under a Design and Build procurement route?
a. Lack of understanding of requirements
b. Cost uncertainty
c. Programme delays
d. Disputes and claims
e. Reduced tender quality
f. Poor design
