Procurement and Tendering

Question 1

What is the difference between tendering and procurement?

Answer 1

Procurement is the overall act of obtaining goods and services and includes deciding the strategy for how the goods/services are acquired.

Tendering is part of the procurement strategy. It is the bidding process and how the contractor is appointed.

Question 2

What are the different types of tender procedures listed in RICS Tendering Strategies guidance note?

Which RIBA Stages for the main two?

Answer 2

Single stage tender - Tender for full works at Stage 4

Two stage tender - When time is constrained. Early contractor involvement. First stage around stage 2 or 3.

Negotiated tender - Single stage with a single contractor. Advantage is speed. No competitive element, which makes it hard to prove value for money in current market.

Question 3

When would first stage of a two stage tender be tendered?

Answer 3

Some time around stage 2 or 3.

Question 4

Why did you refer to D&B, traditional, Construction Management and Management contracting as tender procedures?

Answer 4

I meant that I knew the best tender procedures when used for those procurement routes.

Question 5

What type of projects would suit Construction Management?

Answer 5

complex building
early start on site
greater control over subcontractor selection
experienced client

Question 6

What type of projects would suit Management Contracting?

Answer 6

complex building
speed is important but client wants less risk
client who wants flexible design but single point of responsibility

Question 7

Which tender strategy suits Traditional contract and why?

Answer 7

Single stage tender because the design is suitably developed.

Question 8

Which tender strategy suits D&B contract and why?

Answer 8

Two stage tender so the contractor can positively influence the design and potentially be appointed under PCSA during 2nd stage to carry out design.

Contractor can also get a better understanding of the project before pricing the second stage.

Question 9

Which tender strategy suits management contracting and construction management and why?

Answer 9

Two stage tender as this enables for a quick start.

There will be a tender to select the management contractor (management fee, prelims and profit) or the construction manager (management fee only).

Then were will be multiple tenders to select the works contractors or the sub-contracts

Question 10

Succinctly explain the differences between management contracting and construction management.

Answer 10

The management contractor:
- does not directly undertake any of the construction,
- split into packages and carried out by works sub-contractors who are contractually accountable to the management contractor.

Construction manager:
- does not directly undertake any of the construction work
- split into packages and carried out by trade contractors.
- The employer appoints the trade contractors and is directly responsible for them.
- The construction manager manages the works

Question 11

Explain to me the benefits of two stage tendering from a contractor’s point of view.

Answer 11

Reduces risk as contractor has input in design development

Allows contractor to get to know the project better before providing stage 2 cost.

Enhanced relationship with client and client’s consultants

Reduced tendering costs in the initial stage 1 and increased likelihood of works after stage 2.

Question 12

What are the processes involved when compiling tender documents?

Answer 12

Request information required (design, JCT document/information, surveys etc)

Produce my documents (prelims and general conditions, pricing document, form of tender, non-collusion certificate)

Question 13

How would you assess tender returns?

Answer 13

Check that all required information had been provided.
Check tenders for arithmetical errors.
Review cost breakdowns to check for anything not costed.
Raise queries with the tenderers
Make adjustments to the tender figures based on query responses and missing costs

Review non construction items such as overheads and profit, preliminaries, provisional sums.

Produce report based on findings including scoring.

Question 14

What different types of funding are available for funding a project?

Answer 14

Self financing

Bank loans

Private Finance Initiative, a UK government scheme used to fund public sector projects, like hospitals and schools, by engaging private companies to design, build, finance, and maintain them over a long period.

Question 15

What does PFI stand for?

Answer 15

Private Finance Initiative

Question 16

What would be priced in first stage of a 2 stage tender?

Answer 16

Preliminaries
overheads and profit rate
schedule of rates
Cost for PCSA services - Surveys, enabling works etc.

Question 17

What non cost information would a contractor provide during first stage of a two stage tender?

Answer 17

Provide company information:
* Structure
* Previous projects
* Capabilities
* Strengths etc.
* Financial information
* Social value commitments
* Proposed project team

Question 18

Are you aware of any updates to the procurement regulations?

Answer 18

Procurement Act 2023

Focused on public procurement
Replaces old procurement rules with a single, simplified framework.
Increases transparency through mandatory public notices and a central digital platform.
Supports SMEs and social enterprises by reducing barriers to entry.
Introduces a debarment list of excluded suppliers.

Question 19

What were the relevant surveys for the Guy’s plant room tender docs?

3 surveys

Answer 19

• Surveys relating to the plant,
• Roof structure
• R&D survey to check for asbestos.

Question 20

Guys Hospital - describe to me how you compiled the tender documentation. What information did you include?

Answer 20

I requested the design information from the design team
I produced the contract sum analysis for the tenderers to complete
I also produced the preliminaries and general conditions
I included other documents such as form of tender, declaration of non-collusion, pre construction information and an invitation to tender.

Question 21

Guy’s Hospital - What was included in the pre-construction health and safety information?

Answer 21

Project Description
Site restrictions and risks
Design and construction hazards
Client’s management of the works requirements
Health and safety file requirements

Question 22

Guy’s Hospital Plant Room - How did you produce the tenderer long list?

Answer 22

I held meetings and discussions with the client, colleagues and other members of the design team.

We came up with a list of M&E contractors that had previously performed well on projects of a similar size and nature.

Question 23

Guy’s Hospital Plan Room - What was included in the pre-qualification questionnaire?

Answer 23

Company information
Financial queries (annual turnover for 2-3 years, profit and loss statements, financial stability evidence/checks)
Previous projects of a similar nature
Health and safety record

Question 24

What is a PQQ?

What is it?

Answer 24

Pre-Qualification Questionnaire

Used in particularly in public sector tenders to assess suitability and eligibility of potential tenderers before they are invited to tender?

Question 25

Highgate West - Explain what the contractor had to do / comply with in order to get on the Framework.

Answer 25

The contractor had to go through a competitive tender to demonstrate their companies capabilities, financial stability, and experience

Question 26

Highgate West - Which framework was used? | Why was it selected?

Answer 26

Procure Partnerships Framework - London £1m to £4m Chosen because the Trust had used it before and because of it's flexibility to undertake Single Stage, Two Stage or Direct Award | Design and Build or Build Only.

Question 27

Highgate West - What are the pros and cons for a framework?

Answer 27

Pros Time and cost efficiency Compliance with procurement regulations Tenderers who are capable of doing the work Cons Limited supplier pool Risk of complacency leading to tenderers not offering competitive pricing Tenderers know who their competitors are likely to be Framework fee

Question 28

Highgate West - Advise me why Design and Build was selected for this project.

Answer 28

Highgate West is a hospital project. Design and Build was selected because design quality was not a high priority. It also allowed an earlier start on site as works could start on some wards whilst designs were being completed on other wards. It also provided more cost certainty for the client.

Question 29

Guys Hospital - You advised that tender returns were high due to complex logistics. What did you learn from this? What would you do differently next time?

Answer 29

I would advise that: - the tender process should have waited until a scaffolding licence was in place. - acquire a detailed logistics plan and scaffolding quotes for inclusion in the tender, to ease the tenderers concerns.

Question 30

During the tender period, what would you do if you found that there was additional information that the tenderers may require to submit accurate tenders?

Answer 30

I would review the information, discuss it with the client and then if required issue a tender addendum.

Question 31

What documents would you produce to be issued as part of the tender documents?

Answer 31

invitation/instruction letter general preliminaries specification form of tender and declaration of non-collusion form. Pricing document

Question 32

Why did you recommend a two stage tender for the Highgate West project.

Answer 32

Allowed early contractor involvement to get them to start works on the first contract sections whilst completing design of the other sections. The detail in the tender documents was low so a two stage tender would allow a contractor to get on site whilst producing their design under a PCSA.

Question 33

Why would a 2 stage tender increase the cost of the tender?

Answer 33

A 2 stage tender could increase the cost of the tender due to a lack of competition during the second stage.

Question 34

Why would Design and Build (D&B) be better than Traditional on the Highgate West project?

Answer 34

D&B was better than traditional for Highgate West because the design was not a priority on the project and D&B would reduce the design risk taken on by the Employer. It also allowed a quicker start on site as works could start in some wards/contract sections whilst design was produced on other wards/sections.

Question 35

What were the volatile market conditions at the time of the GSTT tender?

Answer 35

Supply chain issues due to the Ukraine conflict We were still in the recovery period from Covid.

Question 36

What documents do you typically produce to be issued as part of the tender documents?

Answer 36

invitation/instruction letter general preliminaries specification pricing document form of tender and declaration of non-collusion form.

Question 37

What considerations would you make when advising a procurement route?

Answer 37

Client's requirements for time, cost and quality. project complexity design certainty client's risk attitude project timescales.

Question 38

Why did multiple tenderers withdraw from the Guy's Plant Room scheme?

Answer 38

The project was tendered to M&E contractors with the view that they would sub-contract out the roofing works but the roof works were too substantial for M&E subcontractors to sub contract out, so they dropped out.

Question 39

Guy's Hospital - What steps did you take to undertake a procurement workshop during the tender process? What was the outcome?

Answer 39

We reviewed the reasons why tenderers had dropped out, and looked at options available to us. We then made a decision to add main-contractor's to the tender list. The M&E contractor's remaining had been informed how many were tendering so we couldn't go over that figure.

Question 40

Guys Hospital - What was the contract?

Answer 40

D&B 2016

Question 41

Guy's Hospital - What was the tender strategy? Why was it selected?

Answer 41

The design was suitably progressed so single stage was used.

Question 42

Guy's Hospital - Did the client take the option to retender to main contractors? What were the time implications?

Answer 42

3 main contractor's were added to the tender during the same tender period and another week added to the tender period.

Question 43

Guy's Hospital - Was the selected tenderer a main contractor or M&E contractor?

Answer 43

The selected tenderer was an M&E contractor.

Question 44

Guy's Hospital - What information was included in your tender report?

Answer 44

Tender Report: - Arithmetical check - Reviewed the tenders and added allowances for any missing costs - Reviewed preliminaries - Reviewed OHP - Reviewed provisional sums - Produced a quantitative score which was combined with the EA's qualitive score to provide the recommendation

Question 45

Guy's hospital - What were the volatile market conditions?

Answer 45

Supply chain issues due to the Ukraine conflict We were still in the recovery period from Covid.

Question 46

Guy's Hospital - You suggested that the Employer should either accept the tender offer as submitted, undertake a Value Engineering process with a preferred tenderer or review the procurement strategy and re-tender the project. Which option was undertaken?

Answer 46

A VE process was undertaken with the selected tenderer. There were some items that were not essential and their value was not equal to their cost. Repair rather than replace the insulation and aluminium cladding £13k saving Reuse the main steam header - £30k saving Retain boiler controls - £10k saving

Question 47

How do you ensure value for money with a stage 2 tender?

Answer 47

Get them to go out to 3 subcontractors. Potentially open book tendering.

Question 48

Guy's Hospital - What was included within the pre-qualification questionnaire?

Answer 48

Company information Financial info Health and safety record Capabilities and experience

Question 49

Please explain a few of the tendering procedures listed in the RICS Tendering Strategies Guidance note.

Answer 49

Single stage - competitive, fixed time line Two stage - competitive first stage, brings contractor on board sooner before second stage tender negotiated - Quicker process with single contractor, not easy to know if cost reflects market value.

Question 50

List typical tender documents?

Answer 50

* Pre-construction information * Pricing document * Employer's Requirements * Preliminaries and general conditions * Contract conditions * form of tender * Invitation to Tender

Question 51

What did you mean when you said a D&B tender process is longer?

Answer 51

I meant tender period is longer because the contractor needs sufficient time to organise design and price. The overall process including producing ER’s may not be longer.