Procurement and Tendering Flashcards
(28 cards)
+/- Traditional
Advantages
* Retain control of design
* Completed design before tendering - tenders based on same thing
* Better price certainty entering contract
Disadvantages
* Longer duration due to pre contract design
* Design risk sits with client
* No buildabilty from contractor
When might Traitional be appropriate
- Shortest programme not priority
- Cost certainty is important
- Employer has specific design requirements
+/- D&B
Advantages
* Can SOS sooner
* Single point responsibility
* Harness expertise
* Design risk transferred
Disadvantages
* Relies on quality and detail in clients brief
* Premium built in for MC risk
* Harder to compare tender return
* Less control of aesthetics and quality
When might D&B be appropriate
- Need for early start on site
- Complex projects may benefit from input
- Minimise risk
What is Normalisation
Ensuring tenders are like for like
How would you Normalise
- Avergae of submitted costs
- Highest price from tender returns
- Use cost plan allowance for that element
What is Buildability
- Ability for design to be constructed and maintained efficiently and safely
- Refers to early pre contruction advice from contractor
Advantages of buildability
Improved efficiency in constuction
Can save time and cost
What additional insurance might be required under D&B
Contractor and their design team will have design responsibility.
Additional PII may be required (design responsibility)
What is Procurement
Overall act of obtaining goods and services
What is Tendering
Method of obtaining price and resources necessary to carry out works
What decides Procurement route
Clients objectives and key drivers in terms of Time, Cost, Quality
What is Framwork agreement
- List of contractors selected after formal tendering procedure to work over long period
- Client continually commissioning construction work
+/- Framwork
Advantages
* Repeat work
* Only negotiate once
* Time saving
* Collaborative
Disadvantages
* Doesnt always deliver value for money
* Restrict new suppliers
* Contractors can become complacent
* Public procurement regulations may impact
Why might Framwork be appropriate
- Clients continuosly comissioning construction work to reduce timescale
Process of Single stage tender
- Typically carried at at RIBA stage 4 when detailed design available
- Tender docs issues to competing contractors
- Tenderers compete on identical information
+/- Single Stage
Advantages
* Lump sum cost for all works
* Competitive pricing
* Used at RIBA stage 4 so full design
Disadvantages
* No input from contractors
* Relies on detailed thought out design and tedner docs
* Contractors may be unwilling to tender in good economic climate (too much comp)
Process of Two Stage Tender
STAGE 1
* Client provides outline design - Contractors compete
* Chosen on quality of bid, quality of team, prelims and OH&P
* Preferred MC joins team on consulting basis using PCSA
STAGE 2
* MC influence design / buildability
* Contractor enters into detailed contract
* Negotiate final price, contract conditions and programme
+/- Two Stage Tender
Advantages
* Early MC appointment to gain buildability input
* Earlier SOS (overlap)
* Increased opportunity to VE and identify risk
Disadvantages
* Lack cost certainty
* Additional fee for PCSA
* Potentials for negotiations to fail
JCT Tendering practice note 2017
Guidance document on different tendering procedures
Preliminary enquiries
ITT and tender process
Assessment and award
Why is it important to follow up with exclusions with tenderers
- Fair comparison
- Cost certainty
- Qualification of tender - if the works excluded is required then it could invalidate their tender
What is typically assessed on H&S element of tender
- Construction phase plan (CDM)
- Management of H&S on site
How was quality assess on AHU
Methodology
Programme
H&S
Compliance with tender and contract conditions
Supply chain
What is Base Date
Date from which:
Change in condition can assessed
JCT D&B states its 10 days before tender return date
