3.2 Procurement and Tendering

Question 1

What is the difference between procurement and tendering?

Answer 1

Tendering is the process of inviting contractors to bid for work. Procurement is the overall strategy of how the tendering will be completed.

Question 2

What procurement options are you aware of?

Answer 2

Traditional
Design and build
Management contracting
Construction management

Question 3

Advantages of traditional procurement?

Answer 3

Less risk built into contractor’s pricing
Less risk for the contractor
Employer retains control of the design

Question 4

Disadvantages of traditional procurement?

Answer 4

None/limited buildability consideration from the contractor
Takes longer to start construction
Design risk is with the Employer(Any changes will be Ces)

Question 5

Advantages of design and build procurement?

Answer 5

Single point of responsibility
Buildability considered at design
Earlier commencement on site
Risk of design and cosntruction rest with Contractor
Provides greater cost certainty

Question 6

Disadvantages of design and build procurement?

Answer 6

Client has less control of design
More risk built into the tender returns
Design is only as good as employer’s requirements

Question 7

What is construction management?

Answer 7

The Employer directly appoint subcontractors instead of appoitning a main contractor.

Question 8

What is management contracting?

Answer 8

The Employer appoints a main contractor who will appoint and manage the subcontracts.

Question 9

What is a framework agreement

Answer 9

An umbrella agreement for 2-10years for the procurement withone or more suppliers.

Question 10

What are the main tendering options?

Answer 10

Single stage tender - One tender is issued to all bidders
Two stage tender - frist bidders compete for preffered bidder(PCSA), then once design is fully complete they enter into contract.
Negotiated tender - essential single stage with just one supplier.
Selective tender -

Question 11

What is in a tender pack?

Answer 11

Invitation to tender
Form for tender
Contract conditions
Employer’s amendments
Tender scoring matrix
Project information
Pricing document
Quality questions

Question 12

Procurement and tendering - Level 2 example?

Answer 12

Framework procurement on Cov AQP and RAFM.

Question 13

Procurement and tendering - Level 3 example?

Answer 13

Additional palisade work on Cov AQP. Procurement route management contracting even after construction management considered.