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Jordan Cornish APC > Procurement and Tendering > Flashcards

Procurement and Tendering Flashcards

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1
Q

What does a letter of intent do?

A

Method of instructing a contractor to proceed with work before a contract is formally entered into

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2
Q

Why would you choose Alternative 1?

A

OJEU tendering to narrow down from 100s of bids, ensures people stick to bids

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3
Q

What is partial possession?

A

When an area achieves practical completion, it can be occupied by the client
Half the retention must be released
Defect liability period begins
Insurance passes to the client
Contractor is not obliged to allow partial possession but cannot reasonably withhold permission

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4
Q

What is the difference between Management Contracting and Construction Management?

A

Management Contracting – client employs main contractor who employs sub-contractors
Construction Management – Client directly employs sub-contractors (direct contract)

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5
Q

How would you equalise tender returns?

A

Mean of the other tenders
Highest of the tenderers
Cost plan rate

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6
Q

What is an RFI?

A

Request For Information

A way for the tenderer to clarify queries with the design team

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7
Q

Do you know of an e-tendering service?

A

The RICS has one

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8
Q

What procurement route would you advice to a client who wanted the lowest cost achieved?

A

Open Tendering or construction management

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9
Q

What factors effect choice of procurement route?

A 
Nature of project
Scope of works
Experience of the client
Accountability
Cost certainty requirement
Start / completion date requirements
Level of post contract change expected
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10
Q

What is a PQQ

A

Pre-Qualification Questionnaire

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11
Q

What are the advantages of 2 Stage Tendering?

A

Cost certainty
Buildability advice
Programme certainty

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12
Q

What are the positives of D&B?

A 
Places the risk on the contractor
Single point of responsibility
Cost certainty
Increased buildability
Can be faster as early packages can be started before the design is finalised
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13
Q

What external factors should be considered when selecting a procurement route?

A 
Changes to costs / availability of finance
Interest rates
Inflation changes
Upcoming legislation
Availability / demand of specialists
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14
Q

What does the JCT tendering practise note include?

A

2017
Public and private sector procurement is clearly split
Time for response is now the same as the OJEU notice periods
PQQ now 30 days
Tender period for public procurement now 35 days

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15
Q

What are the 4 routes of procurement?

A 
Traditional
Design and Build
Construction Management
Management Contracting
Design Build Finance Operate (PFI and PPI)
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16
Q

What is Hybrid Procurement?

A

Non-Conventional procurement method
Soho Place – Large quantity of packages procured at first stage rather than just OH&P
Façade contractor novated across to the contractor

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17
Q

What is construction management?

A

Employer places a direct contract with each trade contractor and utilises the experience of a construction manager (main contractor) to act as a consultant and coordinate the works
Appropriate on large complex projects

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18
Q

What are the negatives of D&B?

A

Lack of competitiveness in second stages
Longer tender period
Lose control of the design
Quality control carried out by contractor

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19
Q

What would you do if a tenderer submits a qualified tender?

A

Give them the opportunity to amend the tender without amending the price making the bid compliant. If they refuse, then the bid will be deemed non-compliant and rejected

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20
Q

What is the difference between Management Contractor and Traditional?

A

MC – cost + fee / % (prime cost)

Traditional – fixed cost

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21
Q

What are the benefits of a framework agreement?

A

They allow a client to reduce timescales, learning curves and risks when continually commissioning construction

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22
Q

What would you include in a Tender report?

A 
Executive summary
Introduction
List of tenders received
Tender period
Qualification identified
Post tender adjustments
Programme
Revised tender sum
Issues to be resolved
Tender returns vs PTE / budget
Recommendation
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23
Q

What are the OJEU thresholds for public procurement?

A

c.£181k for services

c£4.5m for works

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24
Q

What is the purpose of a PQQ?

A

Establish the suitability of prospective tenderers based on their record and technical capability

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25
What is included within a Tender pack?
``` Invitation to Tender Instruction to Tenderers Certificate of Bona Fide Tender Scope of Works Tender Drawings and Specification / Employers Requirements Programme requirements As-Built information if fitout Environmental Considerations ```
26
What makes up a letter of intent
Acceptance of contractors offer and description of works Value / contract sum Duration and completion dates Description of the form of contract and warranties / performance bond Date of contract signing Copyright
27
What are the positives of traditional?
Most competitive Most linear form of tendering Fixed price before contract signing
28
What are the risks of including provisional sums?
Is a sum on money set aside for works which may not be carried out, scope of work is not known so can’t give a firm price Too many provisional sums reduce cost certainty
29
What are the positives of Management Contracting?
v. quick changes accommodated easily Disaster relief – work first cost later
30
What should be included in a PCSA?
JCT publishes 2 forms of PCSA – general contractors and specialists Design liability What happens to design liability if the contractor is not appointed for the 2nd stage Method of payment Appendix of all tender items to be included in the construction contract
31
Disadvantages of 2 stage tendering?
Lack of competition at second stage Can lose control of design Risk of contractor not honouring PCSA / pre-agreed costs at contract signing
32
What is procurement?
How the services of a contractor are purchased | The act of obtaining goods and services from an external service
33
When would you choose Alternative 2?
JCT practise note recommends for D&B but most times when limited numbers of contractors
34
What is the tender process for single stage competitive tendering?
``` Compose longlist of contractors PQQ Shortlist of contractors Invitation to Tender & Tender Submission Recommendation Award contract ```
35
What is tendering?
How a successful contractor is selected / appointed (obtaining a price)
36
What would you include in an Invitation to tender?
``` Time and date for the tender return List of documents included in pack JCT Pricing Alternative selected Basis of award Site Visits ```
37
What is an Approximate Quantity?
When the quantity of the work is unclear but the work will definitely be required Fixed rate only
38
What are the disadvantages of CM?
No cost certainty until last package is let Potentially expensive to change design once packages are let Need an informed pro-active client Lots of consultants, more professional fees
39
What would you include in an Invitation to Tender?
``` Document register Time and date for tender return Contact point for communications Basis of award Mid tender interviews of any Site visits Documents required in the tender Which JCT Pricing Alternative is selected ```
40
What are the advantages of e-tendering?
Can reduce tender period possibly Reduced printing / mailing costs – environmentally friendly Maintains clear audit trail of communication
41
How would you decide on the length of tender period?
``` JCT Tendering Practise note 2017 Complexity Size Time of year Market conditions ```
42
How long would you allow for the tender period?
Dependent on; Complexity of the scheme / if the contractor is required to complete design If single stage with no CD then 4 weeks max If unsure I would consult the contractors to see how long they would need to complete an accurate return
43
What are the benefits of single stage tendering?
most competitive best price less costly for the design less consultancy fees - only reviewing a few tenders
44
What are the negatives of single stage tendering?
less buildability longer as must have the design completed first may not get as much interest from the market for single stage
45
What determines if work can be included in a stage 1 package?
JCT tendering note – is it of sufficient detail?
46
What is a PCSA?
Pre-Construction Services Agreement A way for the client to employ a contractor before the construction contract commences, often as part of stage 1 of a 2 stage tender.
47
How would you deal with errors within a tender?
JCT Practise note 6; Alternative 1 – Confirm and Withdraw Alternative 2 – Confirm and Amend
48
What is the tender process for two stage competitive tendering?
``` Compose longlist of contractors PQQ Shortlist of contractors Invitation to Tender & stage 1 tender Recommendation of preferred bidder Pre-Construction Phase and PCSA Stage 2 negotiation Award contract ```
49
What services should be included under a PCSA agreement?
``` Design Buildability advice Cost planning Programming Advice on packaging of works ```
50
What are the negatives of traditional?
No contractor involvement in the design | Potentially higher number of risk items / PS
51
How would you carry out a Tender analysis?
Arithmetic check for errors Compare against PTE and current budget Check for missing scope, exclusions and provisional sums Deal with errors with the JCT Practise Note 6 Alternative 1 or 2 (depending on selected option
52
Are you aware of the acronym MEAT and when would you use it to evaluate Tender Returns?
Most Economically Advantageous Tender
53
What is the procurement route of PFI or PPP?
Design, Build, Finance, Operate
54
What are the negatives of a negotiated tender?
Lack of competitiveness High cost / longer programme Not suitable with public contracts
55
Your client has seen a site he wants to build on and is keen for you to start preparing tender documents; how do you go about this?
I would convene a meeting with the client & the design team to discuss the following 1) Project programme/Anticipated schedule of Key Dates 2) Procurement & contract strategy 3) Agree a schedule of dates for issue of design information 4) Determine what pricing document 5) Establish tender list / PQQ 6) Risk register & how this will be dealt with under contract 7) Tender issue date. Once agreed I could begin to collate the information available & start pulling the information for the tender document together
56
What is a Prime Cost?
Used for when a specified sub-contractor is listed, applies only OH&P to a set price
57
How will the chosen procurement strategy affect the project?
``` Clients exposure to financial uncertainty Clients level of control over the design Extent of design required for tender Contractor involvement in design Project risk profile ```
58
What is open tendering?
Open to the public so anyone can express an interest in the project – required for public sector work - OJEU
59
What is sectional competition?
Refers to sections pre-stated in the contract | Allows the client to take passion of completed areas
60
What are the negatives of Management Contractor?
Cost / cost certainty | Requires careful management
61
Why do you carry out a tender analysis?
To ensure the bids are compliant and can be compared equally
62
What are the drawbacks of a negotiated tender?
No competition so no guarantee of a fair market price
63
What are the positives of a negotiated tender?
Faster – no tender period | Most contractor involvement
64
What are the benefits of CM?
Programme – can overlap design and construction Clear roles and relationships between all parties Can accommodate design changes if the package has not been let yet Potentially better price as direct contracts with trades
65
What information is required in a PQQ?
Contract particulars details Key staff, management and organisational structure Relevant experience Financial and commercial standing – turnover, company accounts Commercial policies – H&S, CSR, Sustainability
66
What is the difference between Partial possession and sectional completion
Section competition is pre-planned and defined in the contract documents, partial possession is not and is a more open ended option
67
What is selective tendering?
A shortlist decided by the design team and client
68
What is an alternative to a PCSA
LOLA - Letter Of Limited Authority
69
What types of letters of intents are there?
1) Comfort letters; A comfort letter is a letter expressing a party’s intention to act in a particular way at some point in the future, or at the time of issuing the letter. 2) Instructions to proceed with consent to spend; A letter with instructions to proceed and consent to spend is sometimes referred as an “if’” contract. This type of letter allows work to proceed up to a certain value while the contract itself is being finalised. 3) Letters recognising the existence of a binding contract(s); This type of letter is also referred to as a letter of acceptance and is used by some forms of contract (such as FIDIC) to formally execute the contract itself. Generally such a letter will be issued only once the contract has been substantially agreed and usually marks the completion of negotiations between the parties.
70
What types of tender interviews are there?
1) PQQ Interview 2) Mid-tender interview, better understand the project. 3) Post-tender question, after tender submission.
71
What is procurement?
The process of the purchasing of goods of services.
72
What is Alternative 1 & 2?
Alternative 1: Correction of the tender price is not permitted Alternative 2: Correction of the tender price is permitted.

Jordan Cornish APC (17 decks)

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