Procurement & Tendering

Question 1

What is Procurement

Answer 1

The overall process of acquiring construction works

Question 2

What should be considered when selecting a procurement route

Answer 2

Specifics to the project objectives such as
- Time
- Cost
-Quality
- Risk

Question 3

What are the main procurement methods

Answer 3

Traditional
Design & Build
Management Contracting
Construction management

• Single Stage
• Two Stage
• Negotiated

Question 4

What is traditional procurement

Answer 4

Traditional Procurement is where the design and specification is developed by the client and the design team pre-contract and then issued out to a list of contractors for a competitive process. A contractor is then employed to under take the construction works

Question 5

How does traditional procurement work

Answer 5

• The client takes on the risk for the design and the design teams performance
• The contractor takes on the financial risk for the construction works

Question 6

What are the advantages of traditional procurement

Answer 6

• It provides cost certainty to the client as the contractor provides a price based on the developed design
• The client retains control over the design and specification
• design changes are relatively easy to arrange and value

Question 7

What are the disadvantages of traditional procurement

Answer 7

• Longer pre-contract programme due to design development
• No input from the contractor on buildability

Question 8

What is Design and Build

Answer 8

• Design and Build is where the contractor has involvement with the design, planning, control and as well as the construction of the project in line with the employers requirements.

Question 9

How does Design & Build work

Answer 9

The client provides the contractor with their Employers requirements and the Contractor responds with their contractor proposals, which include a price for the works.

It transfers the risk of the design development over to the contractor as well as the construction works.

Question 10

What are the advantages of design and Build

Answer 10

• There is a single point of responsibility for the design and construction.
• There is earlier commencement onsite
• Contractors experience harnessed during the design phase

Question 11

What are the disadvantages of design and build?

Answer 11

• Quality
• The client has to commit to a concept design early
• Clients may find it hard to prepare a sufficient comprehensive brief
• Variations from the original brief can often be expensive

Question 12

How much design input will the contractor have in a design and build?

Answer 12

• This depends on the amount of design work the employer has already completed at the time of tender
• This can range from full design to production information and co-ordination only

Question 13

If the client wishes to start onsite asap, what route would you recemend

Answer 13

If time was their overriding priority then a design & build procurement option would be best suited

Question 14

What is GMP

Answer 14

Guaranteed maximum price

Question 15

What does GMP mean to you?

Answer 15

A lump sum contract under which there is no adjustment to tender price unless design changes are requested by the client.

Question 16

What is partnering?

Answer 16

• a long term approach of structuring business relationships
• it involves two or more organisations working together to achieve specific mutual objectives

Question 17

What is strategic partnering

Answer 17

• A long term relationship that is established with a view to undertaking a number of projects over a long period

Question 18

What are the benefits of partnering

Answer 18

• The potential for conflict is reduced
• Improved client satisfacaiton
• Improved buildability with early involvement of contractors.
• Better predictability of time and cost

Question 19

What is open tendering

Answer 19

• Open tendering allows anyone to submit a tender for the works or services that are required. little to no barriers to entry

Question 20

What is selective tendering

Answer 20

this restricts the number of tenderers by pre-selecting a limited number of contractors to tender for the work

Question 21

What are the two types of selective tendering

Answer 21

single and two stage

Question 22

What is serial tendering

Answer 22

Contractors are asked to bid for a project on the basis that if they complete the intial

Question 23

What could selecting the wrong contractor lead to

Answer 23

• a bad client & contractor relationship
• A dissatisfied client
• An insolvent contractor

Question 24

What would you include in a set of tender documents

Answer 24

in accordance with the JCT practice note 2017 i would include:
- ITT
- Form of tender
- pre-construction information
-pricing documentation
- drawings & specification
- conditions of proposed contract

Question 25

What is a form of tender

Answer 25

- A pre-printed formal statement in which the tenderer fills in the blank spaces. - The tenderer provides their name, address and price for the woks

Question 26

What are the employers requirements?

Answer 26

They set out the clients requirements including the function, size and quality of the project.

Question 27

What are the Contractors proposals?

Answer 27

- The Contractors response to the Employers requirements. - They are the key documentation for the client at the tender review

Question 28

What information would you request in the pre-qualification questionnaire

Answer 28

- management structure - Relevant experience - Company accounts - Health and Safety records - provision of bonds & warranties

Question 29

How would you determine the duration of the tender period

Answer 29

- it depends on the procurement process and size of the project. - it is better to ensure there is sufficient time so the contractors can price the project correctly - rather than rush and encourage contractors to price a high risk element into a tender

Question 30

What is a PQQ

Answer 30

Sets out a series of questions for potential tenderers to answer in order to reduce the number of tenders to those that are best suited to the project

Question 31

What does the ITT document set out?

Answer 31

The ITT document sets out: - state the recipient, time, date and location of submission - Explain the method of dealing with queries - Give site visit contact details - Require a confirmation of receipt of tender.

Question 32

What does the preliminaries document set out?

Answer 32

- Provides a description of the project that allows the contractor to assess costs which cannot be allocated to a specific element of works - This will include a general summary, method statements, pre-construction information, planning conditions and section/phasing of the work.

Question 33

How would you deal with Arithmetical Errors in Tendering?

Answer 33

Alternative 1 - The tenderer cannot correct the tender price. The QS should amend computing errors and inform the contractor, who can choose to confirm or withdraw. Alternative 2 - The tenderer can correct the tender price. The QS should amend computing errors and inform the contractor, who can choose to confirm or amend.

Question 34

What would you include in a tender report?

Answer 34

- Introduction - tender return dates - Tender opening record - Amount of normalisation/ rationalisation - Rationalised totals - Comparison against PTE/ Budget - Analysis of normalisation/ rationalisation - Recommendation

Question 35

Can you select the highest tender?

Answer 35

- For a private client yes, Cost it is not always the most important factor for the client - Risk, capability, quality. - However for public, no

Question 36

What are the purpose of post tender interviews?

Answer 36

Run through queries meet proposed site team assess client and contractor compatibility

Question 37

How is CDP managed

Answer 37

1. CDP items and ER's stipulated by design team 2. Contractors proposals submitted with tender 3. CPs are reviewed and approval given 4. Incorporation into the works/ Contract

Question 38

What are some typical qualifications included in a tender

Answer 38

Allowance for samples Assumed finishes Access to site

Question 39

Why is the development of a PTE important

Answer 39

- A pre-tender estimate ensures the client can afford the project and provides a basis for comparing tenders. - While not part of the formal tender process, the PTE is essential for smooth tender analysis.