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RICS APC > Procurement And Tendering > Flashcards

Procurement And Tendering Flashcards

1
Q

How do you develop an effective procurement strategy?

A
  1. Understand the client’s requirements with regards to time, quality, cost and risk.
  2. Project requirements
  3. Client experience
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2
Q

Are there other options beyond traditional and D&B?

A

Management Contracting
Construction Management

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3
Q

When would you choose CM over MC

A
  1. Client’s construction experience
  2. Client’s risk profile
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4
Q

When would you advise the use of two-stage tendering?

A
  1. Buildability input, contractor is involved during the design phase
  2. Early start on site
  3. Employer wants to be involved in subcontractor selection
  4. Increased opportunity to value engineer
  5. Cost is not the main priority
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5
Q

What are the disadvantages of two-stage?

A
  1. No cost certainty until final package is let
  2. PCSA fee for the contractor
  3. Potential for negotiation stage to fail and time wasted
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6
Q

How does management contracting differ from construction management?

A

With Management contracting the Main contractor appoints all trades directly for a pre-agreed management fee or time related allowance. They are responsible for the management of all trade packages with regards to time cost and quality. CM the main contractor acts as a consultant and is in charge of the programme and health and safety.

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7
Q

In what situation would construction management be appropriate?

A

When the client has previous building experience and would have the resources to manage all the trade contractors otherwise it should be Management Contracting.

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8
Q

What is your understanding of PFI as a form of procurement?

A

Private finance initiatives (PFIs) allow governments and the private sector to join forces to finance and implement projects that benefit the public sector. Usually the private second will design, construct and facilities manage the building which it will lease to the government for a set period (say 30 years), after this the ownership transfers to the government.

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9
Q

What are the factors that would be considered in deciding the most appropriate procurement route for a project?

A
  1. The expertise of the client
  2. The client’s preferred risk profile
  3. The stage of the design
  4. How quick they would like to start on site
  5. What is the client’s preference on cost certainty?
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10
Q

What current challenges is Covid and/or Brexit bringing to Procurement & Tendering?

A

Change from OJEU to FTS.

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11
Q

Can you give a brief overview of the tender process?

A
  1. Take brief from employer
  2. Choose suitable strategy
  3. Prepare tender documentation and issue
  4. Deal with tender queries
  5. Open and analyse returns
  6. Report and recommend
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12
Q

What is the difference between procurement and tendering?

A

Procurement is the overall act of obtaining goods and service depending on client’s objective to time, cost, quality and risk. Whereas tendering a process within procurement to obtain a price and appoint a contractor.

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13
Q

What are the 3 tendering strategies?

A
  1. Single Stage Tendering
  2. Two Stage Tendering
  3. Negotiated Tendering
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14
Q

What is PPP (Public - Private Partnership)?

A
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15
Q

What is Early Contractor Involvement?

A
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16
Q

What is BS 11000-1?

A
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17
Q

What is PAS 91 2013?

A
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18
Q

What is the risk of negotiated tendering?

A

Price is too far apart from pre-tender estimate

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19
Q

Does the client have to proceed with this subcontractor?

A

No, the client is not obliged to proceed with the contractor as they need value for money

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20
Q

What is a design checking period?

A

A period between appointment and contract signing to review all documentation and ensure they are correct with tender queries added.

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21
Q

What are the stages of BIM?

A

Stage 0
2D Drawing

Stage 1
Add 3D model

Stage 2
Add multiple trade BIM Model

Stage 3
Add shared BIM model

Stage 4
Add Planning and Scheduling

Stage 5
Add cost estimation

Stage 6
Add sustainability

22
Q

What is the purpose of BIM?

A

To reduce risk

23
Q

What is serial tendering?

A
  1. Combination of two stage and negotiated tendering
  2. For clients with similar work
  3. Original competitive tender
  4. Agreed schedule of rates for future work
  5. Competitiveness reduces over time
24
Q

What is a term contract?

A
  1. Made for maintenance
  2. Continued supply of similar work
  3. Schedule of rates
  4. Value for money
25
Q

What is framework?

A
  1. Open tendering
  2. Companies apply and if successful are placed on the tender
  3. Reduce procurement costs
  4. Two options; supplier called off based on fees or small mini tenders
26
Q

What if the client likes a VE option from an unsuccessful bidder?

A
  1. Ethic issue?
  2. Do they have patent rights?
  3. Be open and transparent
  4. Pay them for their time
27
Q

Why do two-stage?

A
  1. Promotes collaboration
  2. Used to necessitate quicker start on site
  3. Increased buildability
  4. Manage risk
  5. Client involved in supply chain
27
Q

At what RIBA stage should you go out to tender for each route?

A

D&B: Stage 2 onwards
Traditional: Stage 4 onwards
Two Stage Traditional: Stage 2 onwards

28
Q

What should tendering provide?

A
  1. Accountability
  2. Auditability
  3. Ensuring everything is captured
  4. Parity
  5. Reduce claim of corruption
  6. Ensure correct price
29
Q

What is a pre tender estimate?

A

Produced with minimal design to establish if client can afford scheme and can be compared to tenders. Should be completed in accordance with NRM1.

30
Q

How do you deal with tender queries?

A

Answer tender queries and issue to all parties.

31
Q

What happens if there is a tender withdrawal?

A

Up to client but can:
- Carry on
- Start again
- Add another and extend period

32
Q

What must be recorded when you open tenders?

A
  • Time
  • Date
  • Location
  • People present
  • Price
  • Programme
  • Comments and Exclusions
33
Q

How do you deal with errors?

A

Option 1 - Correct Error
Option 2 - Stand by price

34
Q

How do you normalise a tender?

A
  1. Use average of submitted costs
  2. Use highest price
  3. Use cost plan allowance
35
Q

What is the purpose of a pre-qualification questionnaire?

A

Designed to ensure tenders have the capabilities to perform their duties under the contract. It will check financial standing, health and safety record, quality assurances, recent and relevant experience and proposed team.

36
Q

What is CDP?

A

Contractors Design Portion

37
Q

How does it work?

A

Utilises contractor expertise to design elements of work
Employers requirements are issued and contractor proposals put forward.

38
Q

What are the main procurement methods?

A
  1. Traditional
  2. Design and Build
  3. Management Contracting
  4. Construction Management
39
Q

What procurement provides the most cost certainty?

A

D&B provides most cost certainty, traditional provides quality and CM and MC is quicker.

40
Q

What are the advantages of traditional procurement?

A
  1. Competitive fairness and transparency
  2. Design led - can ensure quality
  3. Cost certainty before work begins
  4. Well known procedures
  5. Change is easily dealt with
41
Q

What are the disadvantages of traditional procurement?

A
  1. Overall project duration is longer
  2. No input into design from the contractor
  3. Dual point of responsibility
  4. If design is not finalised cost certainty reduces
42
Q

What are the advantages of D&B?

A
  1. Single point of responsibility
  2. Early contractor commencement
  3. Early price certainty
  4. Benefit of contractor expertise
43
Q

What are the disadvantages?

A
  1. Client has to commit to design early
  2. Variations are difficult and expensive
  3. Hard to compare tenders
44
Q

What is novation?

A

A new contract that transfers the rights and obligations of one contractual party to a new third party.

45
Q

If the design team is novated, what does the client need to put in place?

A

A collateral warranty to the design team to give them remedies for breach of contract.

46
Q

If quantities are incorrect whose responsibility is this under D&B?

A

It is the responsibility of the contractor.

47
Q

What are the advantages of Management Contracting?

A
  1. Project duration is shorter due overlap of design and construction
  2. Buildability increases
  3. Changes can be incorporated into work packages
  4. Works are let competitively
48
Q

What are the disadvantages of Management Contracting?

A
  1. Price is not certain until last package is let
  2. Changes to design of later packages can be expensive for packages already let
  3. Little incentive for MC to reduce costs
49
Q

What are the advantages of Construction Management?

A
  1. Overall project duration is shorter
  2. Construction manager can contribute to design and planning process
  3. Roles and responsibilities are clear
  4. Changes can be accommodated without paying a premium
  5. Prices may be lower
50
Q

What are the disadvantages of Construction Management?

A
  1. No cost certainty until last package is let
  2. Need an informed and experience client
  3. Changes can be expensive
  4. Client needs a lot of resources
  5. CM has no risk other than negligence
51
Q

What is a bonafide tender?

A
  • A bid submitted in good faith, complete and in prescribed form.
  • Confirmation no collusion has occurred

RICS APC (22 decks)

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