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Tom APC 2023 > Procurement And Tendering > Flashcards

Procurement And Tendering Flashcards

1
Q

What are the 4 main procurement routes

A

Design and build
Traditional
Construction Management
Management Contracting

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2
Q

Name 7 tender routes

A

Open
Selective
Staged (single and two)
Framework agreement
Negotiated
Serial
Public

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3
Q

What’s the difference between tendering and procurement

A

Procurement is the overall act of obtaining goods and services

Tendering is an important phase in the procurement strategy

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4
Q

What are the tender documents

A

Invitation to tender
Form of tender
Contract conditions
Instructions to tender
Project info
Design info
Pre- construction info
Tender query form
Pricing doc
Appendices

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5
Q

What is the form of tender

A

The form that the contractor signs and returns with their proposed tender, in terms of price and programme.

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6
Q

What’s the instructions to tenderers document

A

Sets out what is expected to be returned by the contractor and by what date.

Also sets out scoring mechanisms, questionnaires and who to direct queries to

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7
Q

What pricing doc is used for a design and build procurement route

A

Contract sum analysis

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8
Q

What are the two ways of issuing tenders

A

Traditional
E tendering

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9
Q

What are the pros of e tendering

A

Reduction of paper and printing costs

Can track the time of tender opening

Collates tender queries in one place

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10
Q

Should tender queries be answered back to all tendering contractors?

A

Yes

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11
Q

When is serial tendering used

A

Often on large projects with a number of phases

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12
Q

How does serial tendering work

A

The first phase is tendered on a competitive basis which serves as a framework to negotiate the following phases

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13
Q

What’s the advantage of serial tendering

A

The client knows the contractor was selected in a competitive environment for the first phase and so the follow on negotiated tender should be sound

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14
Q

What’s the negatives of serial tendering

A

As time goes on the basis of the original tender won’t be applicable and will need to be renegotiated anyway

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15
Q

How do firms apply to be on a framework

A

Open tenders are advertised for them to apply

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16
Q

Who can be selected once the framework list is agreed

A

Only companies on the framework approved list

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17
Q

What are the pros of frameworks/ approved supplier lists

A

Reduce procurement costs for large numbers of contracts for similar work

Confidence in all contractors on the list

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18
Q

What is open tendering

A

A tender process which allows anyone to express and interest to tender

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19
Q

What’s selective tendering

A

A shortlist drawn up by the project team/ client or drawn from a pre agreed framework/ approved suppliers list

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20
Q

What’s negotiated tender

A

A contractor is selected and then negotiating begins

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21
Q

What’s included in an invitation to tender

A

A formal invitation to tender
Project description
The return date
Contact detail for queries

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22
Q

What does PCSA stand for

A

Pre construction services agreement

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23
Q

What are the negatives of two stage tendering

A

The contractor can be ingrained in the project and negotiate a higher price

If the contractors price for the second stage is too high you have to re tender

24
Q

What are the main factors which might influence the selection of a procurement route

A

Time
Quality
Cost

25
Q

What does the construction manager do

A

Manages the contract works

26
Q

Who are the trade contractors contracted to on a Construction management procurement route

A

Client

27
Q

Who are the subcontractors contracted by on a management contract

A

Management contractor

28
Q

Name the pros and cons of traditional procurement in terms of quality cost and time

A

Pros

Cost - Higher cost certainty as design is complete pre tender

Quality - Design is fully developed before tendering and client retains design control

Cons

Time - Design needs to be fully developed before tendering

29
Q

What are the pros and cons of Design and build procurement (time, quality, cost)

A

Pros

Time - Overlap of design and construction

Cost - Contractor generally takes the financial risk for an agreed price. Early involvement in design can lead to value engineering.

Cons

Quality - Cheapest route to meet spec can lead to low quality

30
Q

What are the pros and cons of Construction Management and Management Contracting (quality, time, cost)

A

Pros

Quality - Client retains design control. Each package can be subcontracted to a specialist. Early involvement to utilise expertise.

Time - Can overlap design and construction

Cons

Cost - Can’t achieve full cost certainty until the last package is procured

31
Q

Pros and cons of open tendering

A

Pros

Most competitive
Limits favouritism

Cons

Can waste time filtering through unsuitable contractors

32
Q

Pros and cons of Selective tendering

A

Pros

Provides some competition but reduces the risk of wasting time on unsuitable contractors

Cons

Less competition compared to open

33
Q

Pros and cons of negotiated tendering

A

Pros

Time and cost savings as a result of removing the tender process

Cons

Increased costs due to a lack of competition

34
Q

What are the benefits of two stage tendering

A

Early contractor involvement can improve the overall buildability as well as allow for increased value engineering

35
Q

What’s included in a PQQ

A

Company details
Insurance details
Financial information
Relevant experience and ability
Confirmation of their Capacity
H&S policy
Environmental policy
Legal review

36
Q

How did I review the contractors response to my PQQ

A

I discussed the weighting system with the client.

I then circulated this with the design team to score each response out of 10.

I then shared the responses with the client.

37
Q

Who drives the weighting system for the PQQ

A

The client

38
Q

Outline the steps of carrying out a tender review

A

Open the tenders

Issue a tender opening form to the client

Issue the tenders to the design team for review

Review the assumptions and exclusions

Balance the tenders

39
Q

What should the tender opening form include

A

Price
Programme
OH&P
Other %’s
List of documents that haven’t been provided

40
Q

What would you find in the tender prelims

A

A general summary
Method statements
Pre construction info
Planning conditions
Outstanding statutory approvals
PW requirements
Reporting requirements
Insurance requirements
Bonds and warranty requirement
H&S requirements

41
Q

What’s the purpose of prelims in the tender docs

A

Provide a description of the works that allows a contractor to assess the costs which are required by the method and circumstances of the work

42
Q

Under a D&B Contract what documents set out the basis of the contract scope of works

A

Employers Requirements

43
Q

Who holds responsibility for the Employers Requirements under a D&B contract

A

The employer but it can be amended for the contractor to accept responsibility

44
Q

Who holds the risk that the scope of works have been quantified against the employers requirements under a D&B correctly

A

the contractor

45
Q

Generally, How many contractors would you invite to tender

A

3-6

46
Q

Why wouldn’t you invite more than 6 contractors to tender via the selected tender route

A

Because it will often put other tenderers off

Waste time

47
Q

Name some differences between JCT and NEC

A

JCT is designed to transfer risk to the contracts for whereas NEC is a more partnered approach

JCT requires an EA/CA whereas NEC requires a PM

NEC implements an early warning procedure which obliges the parties to flag a risk as soon as they become aware of it. JCT only requires the Contractor claim for after the risk has occurred.

JCT has relevant events and matters which can be treated separately. NEC has compensation events where time and cost are assessed together

48
Q

Where are JCT and NEC contracts usually used

A

JCT - Private Sector

NEC - Public and Infrastructure sector

49
Q

How are errors in tenders dealt with

A

As per JCT tendering practice note 2017

Alternative option 1: correction of the tender price is not permitted

Alternative option 2: correction of the tender price is permitted

50
Q

Explain alternative option 2 in terms of dealing with errors in the tender returns

A

Tenderer is given the details of the errors.

If the tenderer wishes to amend their tender they should amend the original tender and initial the changes or confirm the changes in a letter

51
Q

What document would you refer to if you wanted clarification on how to let a contract

A

JCT Tendering Practice Note 2017

52
Q

How would you deal with qualifications from tenderers

A

Collate all qualifications into a spreadsheet and distribute to all tenderers.

Get the tenderers to provide a response on how their tender compares/ deals with the qualifications raised.

53
Q

How do you deal with clarifications in a tender

A

Issue the clarification and responses to all tenderers

54
Q

What should a tender report include

A

Details of the tenderers

Comments on the proposed Schedule of amendments

Risks (I.e prov sums)

Programme

Proposed contract sum

Key %’s

Assumptions and exclusions

Outline any missing documents

55
Q

What does GMP stand for

A

Guaranteed maximum price

56
Q

Who benefits from the cost savings in a guaranteed maximum price contract

A

Can be either the Client, Contractor or shared between both parties

57
Q

Explain Pain/ Gain agreement

A

A target cost/ max contract price is agreed.

The contractor will benefit from savings but will have to absorb overspends

Tom APC 2023 (17 decks)

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