Procurement & Tendering Flashcards
(37 cards)
Can you explain the key differences between Design & Build and Traditional procurement routes, including how risk allocation differs between them?
Design and Build can be tendered earlier compared to a traditional approach, typically at stage 3.
This will request the Contractor to input into certain design elements, so commonly connection details in either MEP or structural elements.
This puts the risk onto the contractor as they take hold of the Employers Requirements and become liable for an discrepancies within these.
Traditional is tendered with a full design and the risk is retained by the client.
What are the main considerations when deciding between single-stage and two-stage tendering processes?
A single stage tender period will typically take longer as you’re asking the contractor to fully price the works and be fixed to them.
This will provide the most competitive tender as contractors are competing against each other in all elements of work.
A two stage can allow for an earlier start on site through the implication of a PCSA, however may reduce competitiveness due to the lack of competitiveness in the second stage works packages.
How would you explain Construction Management and Management Contracting procurement routes, and in what circumstances might they be appropriate?
Construction management is when the client appoints a construction manager to manager the sub-contract packages on their behalf.
In construction management, the client has a direct contract with the sub-contractors.
Construction management is best suited for complex projects where an early start on site is important and the client requires more control.
Management contracting is when the client appoints a management contractor to manage the sub-contract packages.
In management contracting, the client has a direct contract with the management contractor.
Management contracting is best suited for projects where programme is a key driver as works can be undertaken as the design is being complete elsewhere.
What are the core components that should be included in a comprehensive set of tender documents?
ITT
Employers Requirements
Preliminaries
Pricing document
Design information
Misc items
What are the key recommendations in the RICS Tendering Strategies guidance that you follow in your practice?
What are the key recommendations in the RICS Tendering Strategies guidance that you follow in your practice?
What is a BoQ?
This is a Bill of Quantities which is a detailed breakdown of works items including descriptions, quantities and units.
What is a Pricing Schedule?
Acts similar to a Bill of Quantities, however they typically do not include quantities.
What is procurement?
The overall process of acquiring construction work or services.
What should be considered when selecting a procurement route?
The specifics of the project.
The clients key objectives regarding
- Time
- Cost
- Quality
- Risk
What are the main procurement methods?
Traditional
Design & Build
Management Contracting
Construction Management
How does traditional procurement work?
The contractor takes responsibility and financial risk for the construction of the works to the design produced by the client’s design team for the contract sum within the contract period.
The client takes the responsibility and risk for the design and design team performance.
What is traditional procurement?
The design is completed by the client’s design team before competitive tenders are invited and a main contractor is employed to build what the designers have specified.
When might traditional procurement be appropriate?
If the employer has had the design prepared.
If the design is substantially completed at time of contractor selection.
The client wishes to retain control over the design and specification.
If cost certainty at start on site is important.
The shortest overall programme is not the client’s main priority
What the advantages of traditional procurement?
Retaining control over the design can lead to higher quality.
It offers increased levels of cost certainty before commencement
Design changes are reasonably easy to arrange and value.
What are the disadvantages of traditional procurement?
The overall project duration may be longer than others due to lack of overlap between design and construction.
There is no input into design and planning by the contractor.
A strategy based on price competition can lead to adversarial relations.
There is a dual point of responsibility with the design team controlling the design and the contractor retaining responsibility for the construction
When might Design and Build be appropriate?
Where there is a need to make an early start on site as there can be overlap between design and construction.
Where the client wishes to minimise their risk as they transfer design responsibility to the Main Contractor.
For technically complex projects requiring the contractor’s expertise.
Where the employer does not want to retain control over design development
What are the advantages of Design and Build?
There is a single point of responsibility for the design and construction.
There is earlier commencement on site.
Early price certainty is increased.
The client can benefit from the contractor’s experience harnessed during the design
What are the disadvantages of Design and Build?
Clients may find it hard to prepare a sufficiently comprehensive brief.
The Client has to commit to a concept design early.
Variations from the original brief are difficult to arrange and are often expensive.
It is harder to compare tenders and harder to determine whether value for money is being achieved
How much design input will the contractor have in a Design and Build procurement route?
This depends on the amount of design work the employer has already had completed at time of tender.
This can range from full design to production information and coordination only.
Who carries out the design for the contractor in Design and Build?
It may be outsourced to a separate design company (contractor retains responsibility).
They may have in-house design capabilities or the client’s team may be novated.
How do you identify the client requirements before recommending a
procurement route?
Through detailed discussions with the client and design team to identify their priorities in terms of cost, time, quality, risk, control requirements and experience.
What are the main methods of choosing a contractor?
Open tendering.
Selective tendering (Single or Two Stage)
Negotiated tendering.
Serial tendering
For the Vista Tower project, you mentioned issuing tender addendums. What type of queries did you receive, and how did you ensure all contractors had equal access to information?
An example I received on this project was if there were any phasing requirements.
I provided my response by collating my firms tender addendum template.
This captures the contractors query and the project teams response and includes the relevant date the query was raised.
No confidential information is included in the tender addendum template.
On the Taper Building project, what criteria did you use to evaluate the contractors’ PCSA fees, preliminaries, and OH&P percentages?
On the Taper Building project, what criteria did you use to evaluate the contractors’ PCSA fees, preliminaries, and OH&P percentages?
