Procurement and Tendering

Question 1

What is procurement

Answer 1

Procurment is the overall act of obtaining goods or a service from an external source.

Question 2

What is traditional procurment

Answer 2

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.

Question 3

What are some types of procurment

Answer 3

Traditional, Design and Build, Management contracting, Construction Management

Question 4

What are some advantages and disadvantages of traditional procurment

Answer 4

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.

Question 5

What is design and build procurment

Answer 5

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.

Question 6

What are some advantages and disadvantages of Design and Build procurment

Answer 6

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.

Question 7

What is construction management procurment

Answer 7

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.

Question 8

What is management contract procurment

Answer 8

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).

Question 9

What standards govern procurement

Answer 9

BS 8543 construction procurment policies, stratergies and procedures code of practice.
ISO 10845 Construction procurement

Question 10

What does BS 8543 focus on

Answer 10

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.

Question 11

What is tendering

Answer 11

Tendering is an important phase in the procurment strategy including the bidding process, to obtain a price ; and how a contractor is actually appointed.

Question 12

What is single stage tendering

Answer 12

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

Question 13

What is two stage tendering

Answer 13

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.

Question 14

What is negotiated tendering

Answer 14

• 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

Question 15

What are some factors to consider when choosing a tender period

Answer 15

• project complexity
• the size of the project
• time of year (christmas break, summer holidays)
• market conditions

Question 16

What is a framework agreement

Answer 16

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.

Question 17

What are some example of framework agreements

Answer 17

JCT framework agreement (FA) 2016

NEC4: Framework contracting

Question 18

What are some advantages of a framework agreement

Answer 18

Reduces procurment timescales,
Reduces learning curve,
Greater predictability of costs and programme,
Promotes ‘right first time with zero defects’

Question 19

What is BS 11000-1

Answer 19

It provides a framework specification for creating collaborative business relationships.

Question 20

What is Partnering

Answer 20

A collaberative management approach that encouraces openness and trust between parties to a contract. This can be adopted for a one off or can be use over a number of projects.

Question 21

What are some example of Partnering contracts

Answer 21

Project Partnering Contract 2000
Team Partnering Contract 2005
ICE Partnering Addendum
NEC4: Alliance Contract