Procurement and Tendering Flashcards
(28 cards)
What is the difference between procurement and tendering?
Procurement is the overall process of obtaining goods and services and the strategy on how these will be acquired.
Tendering is a specific part of the procurement process where tenderers are invited to bid for the works.
What are the main procurement routes?
- Traditional
- Design and Build
- Management Contracting
- Construction Management
What are the advantages and disadvantages associated with traditional procurement?
Advantages:
- Quality is maintained as design is fully developed before tender
Disadvantages:
- Design responsibility sits with client, however allows control over design quality.
- Sequential programme so time suffers
- Lack of buildability
How are works priced under a traditional procurement route?
Fixed price.
Advantages of two stage tendering?
- Contractors buildability knowledge.
What would you ask the contractor to submit in the first stage of a two stage tender?
- Prelims
- OH&P
- High level estimate of design
Advantages and disadvantages of D&B?
Advantage:
- Early contractor involvement so buildability is better
- Quicker than traditional procurement
Disadvantage:
- Contractor takes over design so could lead to lower quality
Difference between Management Contracting and Construction Management?
CM - Contractors employed directly by client and construction manager managers the works.
MC - A Management Contractor is employed by the client who then subcontracts work packages.
Advantages and Disadvantages of MC and CM?
Advantages:
- Time benefit as some packages could be let while design is being completed.
Disadvantages:
- Loss in cost certainty until last work package is tendered.
Different types of pricing document?
- Contract Sum Analysis
- Bill of Quantities
- Schedule of Works
- Activity Schedule
What can sit alongside a GMP to adjust financial risk?
A pain gain mechanism.
How can contractors be selected to tender for a project?
- Open tender
- Framework
- Negotiated tender
- Selected
How can the list of tenderers be narrowed down in an open tender?
Pre Qualification Questionnaire
Where would a PQQ be issued in an open tender?
Find a tender
What questions would be asked under a PQQ?
- Company Details
- Relevant experience
- Financial information
- Insurances
- H&S
- Quality assurance
How is a PQQ scored?
A combination of scored and pass/fail
How would a weighting be determined for a PQQ?
Dependant on client needs.
What would be asked in a PQQ in terms of staffing and resourcing?
Organisational/technical chart
How many tenderers would you take forward from a PQQ to the tendering process?
At least 3 but ideally 4 in case any drop out and to allow for benchmarking and demonstrate value for money.
What are the different tendering strategies available?
- Single stage - tender docs issued to multiple tenderers to bid for the works.
- Two stage - tender docs issued based on outline design and tenderers bid to be preferred contractor and enter into PCSA to develop design further and enter into contract.
- Negotiated - client directly invites single contractor to submit a tender for the works.
How would you normalise a tender return?
- using an average of submitted costs
- use highest price of submitted costs
- use cost plan allowance for the item
what is included in ITT tender documents?
- Instructions to tenderers
- Quality questions
- Evaluation criteria
- Prelims, contract conditions and amendments
- Form of tender
- Certificate of non-collusion
- Employers requirements - drawings and design information, surveys
- PCI
- Pricing document
What is contained within a procurement report?
Overview of procurement and of the works / client objectives.
Procurement routes and forms of contract available and how they link with clients objectives.
Recommendation
What are the risks of a negotiated tender?
Possibility of unsuccessful negotiation
Cost - can be difficult to prove value for money
Time- can be wasted time/effort if cost cannot be agreed
