Procurement and Tendering Flashcards
What is the benefit of partnering?
- The potential for conflict is reduced
- Communication is improved
- Improved client satisfaction
- A team environment is formed that encourages innovation
What is a framework agreement?
- It is a type of contract that is commonly used as a multi-supplier agreement, establishing a long term relationship
- It is an efficient way to work, without having to go through the tender process each time
- Framework tenders are usually a mix of quality and price factors
What is partnering?
- It is a long term approach of structuring business relationships
- It involves two or more organisations working together to achieve specific mutual objectives
What are alliances?
- An agreement providing that the parties will act in a certain way to achieve a common goal
- In doing so the parties will share the success or failure of the project
When is traditional procurement appropriate?
- When the Employer has had the design prepared
- The Employer wishes to retain control over the design
- If cost certainty is important at the start of the project
- If the shortest overall programme is not a priority
When is design & build procurement appropriate?
- When there is a need to make an early start on site, as there can be an overlap between design and construction
- Where the client wishes to minimise risk
- For technically complex projects requiring the Contractors experience
What are the different procurement routes?
- Traditional contracting: Design is completed by the clients design team before competitive tenders are invited and a main contractor appointed
- Design & build: Where the Contractor is responsible for design and construction of the works in line with the employers requirements
- Management Contracting: A management contractor is employed to contribute their expertise to the design and manage construction
- Construction management: The Employer places a direct contract with each of the trade contractors and utilises the expertise of a construction manager who acts as a consultant to coordinate the contractors
What is two-stage tendering?
- Where the client seeks to appoint the Contractor based on an outline scope of work that is not fully defined
- It’s used when it is useful to obtain the Contractors buildability experience
What is single stage tendering?
It is a structured process of receiving competitive tenders from a number of pre-selected capable contractors
Contractors are pre-selected based on:
- Financial standing
- Qualifications
- Previous track record
- Capacity and resources
- size of work previously undertaken
What is negotiated tendering?
- Where the client has an existing preference for appointing a particular firm and only negotiates with one contractor
- Used when the contractor has carried out work successfully for the client and has an existing relationship
- Schedule of rates from previous projects may be used as a basis of agreeing a price
What are some pro’s and con’s of two stage tendering?
Advantages:
- Early involvement of the contractor
- Encouragement of collaborative working
- Potential for an earlier start of site
Disadvantages:
- Cost certainty may not be achieved before construction starts
- Contractor could take advantage of the second stage of negotiation
- Potential for parties to not agree with a risk of retendering
When is Management Contracting appropriate?
- Where the client does not prioritise cost certainty before commencement
- The client wants early commencement
- For large complex projects
When is Construction Management procurement appropriate?
- On large complex jobs where the Construction Managers upfront buildability knowledge can be utilised
- Where an early start on site is key
- Where price certainty is not considered key
In your report you detailed different procurement methods. What are the different types of tendering methods available in construction?
- Single-stage tendering
- Two-stage tendering
- Negotiated tendering
On the Old Oak Common project, take me through how you prepared a tender recommendation report for the appointment of the concrete subcontractor
- I imported the price stack ups I had completed as part of the tender evaluation into the TRR
- I added a written analysis which explained the differences in price and how one of them was clearly the most competitive
- I added a section which explained how the proposed Subcontractor had a good understanding of the works
- I liaised with the Project Manager who added his experience using the proposed Subcontractor on a similar project
