Procurement + Tendering Flashcards
(52 cards)
Q. Can you just give me a quick summary of the Procurement & Tendering Strategies you’re aware of?
Procurement
- Design and Build
- Traditional
- Management Contracting
- Construction Management
Tendering
- Single stage
- Two stage
- Negotiated
Q. How do you go about determining which Procurement & Tendering Strategy is best suited to a Client / Project?
Type of project
Client experience
Key client requirements:
- Time
- Cost
- Quality
Q. On Quad 3, can you talk me through your involvement in the first stage tender process? Was it success? Was there anything, looking back, you could do better?
The 1st Stage tender process had the contractors submit returns for:
- Prelims
- OH&P
- PSCA
- Indicative cost plan figure for the second stage of the works.
Q. How did you deal with errors in the Contractor’s Returns for this Project? Is there an alternate option?
I used Alternative 2 for this project.
This meant that the contractors could either correct any errors or stand by their price.
Alternative 1 means contractors can either stand by their error or withdraw.
Q. Do you have an opinion on which Alternative is best? Why?
I would say that Alternative 2 is best.
It means that the client does not lose out on a competitive tender, just due to a mistake.
Q. On Quad 3, what did you include in your Tender Report?
Executive Summary
Record of tender opening
Summary of tenders as received
Adjustments and normalisation
Summary of normalised and adjusted tenders
Scoring
Conclusion and recommendation
Appendix
Tender queries
Q. How was the tender scored?
30:70 – Cost to Quality
Q. You note on Quad 3, the second stage tender was Open Book, what does this mean? How does it aid with a tender analysis? Does it provide greater cost certainty / reduce risk?
Essentially it means that the returns submitted by the sub-contractors to the main contractor were also provided to me. I.e. the exact quotations that had been provided.
It provides greater transparency in the tender returns and can ensure value for money.
Q. Who was responsible for the Package Analysis on GE3B? (If he says himself) Are you sure, did you provide the recommendation to the Client for which Sub-Contractor to appoint? Were you taking on the Risk of analysing the Sub-Contractor packages?
I was responsible for reviewing the packages that were submitted by the contractor.
Ultimately, they were taking the risk on the appointed sub-contractors.
Q. What was the Cost per m2 for the 3B project?
£3,200 / m2
Q. On the GE3B project you mentioned you carried out a value for money report. If there was a discrepancy on a package review how would you advise your client that this wasn’t value for money?
I would use my own internal benchmarking to ultimately come to the conclusion for value for money.
We also received 3nr returns for each package (excluding lifts) which meant I could further assess the value for money compared to the other tenders.
Q. What would you recommend they should do? (alternative procurement)
Could look to retender a certain package of works. Providing it was not a critical one to commence, for example piling.
Q. You have received 3 tenders back for a office shell & core new build and two of the contractors had missed out on a significant amount on their prelims. What would you do under the JCT Tendering practice notes 2017? Alternative 2 used.
Alternative 2 was used.
Therefore I would raise it with the tendering contractor, this provided them the opportunity to revisit their price for these works and correct if it was an error.
Q. On the Quad Three project you mentioned you presented illustrated impacts on the costs going forward. Can you give an example of an impact and what you advised the client on how this would affect costs?
Yes, this set in place a theoretical example.
For example, a change to instruct CAT A works. This would assess a nominal figure, say £1.5 against the contractors fixed OH&P and risk percentages. Allowing me to present the expected outturn cost post contract.
Q. Why wasn’t a negotiated tender with recommended contractor proposed?
Ultimately this would significantly reduce the competitiveness of the tender.
Although it is beneficial from a time perspective, it reduces the cost certainty and competitiveness.
Q. What are the benefits of a single tender?
More competitive total price for the works as more contractors will be providing a cost for the main works
Greater cost certainty as the prices are returned once at a fixed price
Efficient, all bids submitted at the same time.
Q. When would you recommend this to a client?
Simple scope of works
Robust ER’s
Cost being a key driver
Q. Can you explain to me what is procurement?
Procurement is the overall act of obtaining goods or services.
Q. What is the difference between management contracting and construction management?
Both procurement routes
Management Contracting = Contractor takes on the risk of the sub-contractors / trade contractor that are appointed.
Construction Management = Client takes on the risk for the sub-contractors.
Q. On Quad Three, can you describe the process of the mid-tender interviews. How were they scored?
Each contractor was given the opportunity to visit the site, ask questions / clarifications about the scheme and equally the client team was able to ask questions.
These were not scored.
Q. What tender documents did you issue as part of the first stage tender on Quad Three? What did you ask the tenderers to return? How did you normalise these?
Price for PCSA
Price for prelims
OH&P %’s
D&B Risk %
Q. On GE3B, what did your value for money report conclude? Did the two-stage tender deliver value for money? You mention comparison against benchmarking. Any particular packages that didn’t align?
Lifts was a key one that did not align.
Ultimately it concluded that the scheme was value for money, it was in the upper limit of my benchmarking but did have some associated abnormals (large area of external works, larger residential units, less efficient shape)
Q. Do you think a two stage was the best solution for this project?
Yes, I do still think that it was the best solution
We were able to get a competitive 1st and 2nd stage submission from the contractor.
Ultimately, the overspend was reduced considerably and not really due to the tender strategy but more due to the contractors approach in their submission (trying to offload risk)
Q. MEP package great example of issues with a two stage, so why a two stage? - Cost certainty was key, risk transfer 2nd (develop ERs)
Ultimately the market was not responding well to a single stage tender.
o The client also wanted to get a contractor on-board to assist with the buildability of the scheme, which was achieved using a two stage tender.
