13 contract planning and contractor selection Flashcards
What are the 3 stages in contractor selection?
1 invitation to tender
2 submission and receipt of an offer
3 consideration and acceptance of the offer - negotiation may occur prior to acceptance
What are the 3 documents needed during contractor selection?
1 enquiry
2 tender
3 contract
What is needed for enquiry documents?
1 conditions of contract 2 site regulations 3 specifications 4 tender drawings 5 pricing schedule (unpriced) 6 instructions to tenderers
What is needed for tender documents?
1 conditions of contract 2 site regulations 3 specifications 4 tender drawings 5 pricing schedule (priced) 6 form of tender
What is needed for contract documents?
1 form of agreement 2 pre-contract minutes 3 conditions of contract 4 site regulations 5 specifications 6 working/ contract drawings 7 pricing schedule (priced) 8 other tendered information
What is the issue with open competition tendering?
contractors that are not suited can apply
What is required for qualified contractors?
appropriate experience, expertise, capacity, financially sound
What will occur in pre-qualification: select competition?
1 press announcement for interested firms or direct approach to known firms
2 promoter issue brief contract descriptions: value, duration, special requirements
3 information from contractor: willingness to tender, details of similar work, financial data of current contracts, turnover, financial security, banking institutions, management structure
How should errors be treated in tenders?
if changes advised before tenders are opened then treat as if they are the original tender
when should contract documents be signed?
upon award and before work commences
How should tender queries be dealt with?
in writing and answers given to all tenderers
Why should you be wary of very low bids?
the final product might be incapable of doing what was required and therefore would cost even more money to fix
What should be considered when selecting a tender?
1 quality of tender documents
2 acceptability of alternative or qualified tenders
3 arithmetical errors
4 adequacy of resources
5 differences in timing of payments - use discounted cash flow
6 reasonableness of advanced payments - avoid if possible or use repayment bond
7 different contract duration
8 whether to give a margin or preference price comparison
how is cost efficiency achieved in cost based contracts?
target cost for contractor - if lower principle and contractor share profits
how might s contractor be invited for tendering?
open competition, pre-qualification, two-stage or negotiation
