Procurement and Tendering Flashcards
What is procurement
Procurment is the overall act of obtaining goods or a service from an external source.
What is traditional procurment
Traditional procurment sees the client in a direct contract for services with consultants and a direct building contract. The consultants will have no link to the building contract unless nominated as a contract administrator by the client.
What are some types of procurment
Traditional, Design and Build, Management contracting, Construction Management
What are some advantages and disadvantages of traditional procurment
Pros - Longer design stage leads to higher quality design and build, Responsabilities are clear cut between design and build team, Most of the control is with the client.
Cons - Typically slower than other procurment methods, Confusion may arise when there is input from a specialist contractor.
What is design and build procurment
The contractor is responsible for the design, planning, organisation, control and construction of the works to the employers requirements. The employer will provides the tenderers with employers requirements and the contractor provides contractor proposals which include a price for the works.
What are some advantages and disadvantages of Design and Build procurment
Pros - early start on site, client can minimise their risk, single point of responsability, early price certainty.
Cons - client may stuggle providing a coherent breif, variations from the breif can be difficult and expensive, ease of fabrication may be proritised over aestetics, client has to commit to a design early.
What is construction management procurment
Construction management is a procurement route in which the works are constructed by a number of different trade contractors. These trade contractors are contracted to the client but managed by a construction manager. The construction manager acts as an agent for the client, administering and co-ordinating the works contracts.
What is management contract procurment
Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging (and the risks of interfaces).
What standards govern procurement
BS 8543 construction procurment policies, stratergies and procedures code of practice.
ISO 10845 Construction procurement
What does BS 8543 focus on
Preparing a business case. The use of value management. Collaborative working practices. The consideration of value in selection criteria. Early engagement with the supply chain. Change control. The adoption of formal gateways and reviews. Exit strategies.
What is tendering
Tendering is an important phase in the procurment strategy including the bidding process, to obtain a price ; and how a contractor is actually appointed.
What is single stage tendering
The most common form of tendering. The process is as follows;
- Expression of interest letter is often sent to multiple contractors
- invitation to tender documents are sent to those who respond to the EOI (RIBA stage 4)
- Contractors are given a predetermind period of time to provide their submission
- The submissions are anyalised against time, cost and quality
- A single tenderer is selected and they enter a contract
What is two stage tendering
Increasing in popularity in recent years. The process is as follows;
- Information is provided to multiple contractors at RIBA stages 2 or 3
- A preferred contractor is chosen based upon the quality of their bid, team, preliminaries price, OHP allowance.
- the contractor joins the design team and commits to a pre-construction services agreement
- once the design is developed to RIBA stage 4 the contractor presents their bid.
What is negotiated tendering
- begins with a single stage tender with a single contractor requesting their initial price
- at submission their price is negotiated with the clients Quantity Surveyor until an agreement is made
- not often used for public tendering as it lacks the competative advantage of formal bidding
What are some factors to consider when choosing a tender period
- project complexity
- the size of the project
- time of year (christmas break, summer holidays)
- market conditions
What is a framework agreement
Used by clients who continuously commision construction works such as social housing providers. This allows the client to call upon goods and service providers to complete work on a specific portfolio over a specified amount of time.
