3.2 Procurement and Tendering Flashcards
What is the difference between procurement and tendering?
Tendering is the process of inviting contractors to bid for work. Procurement is the overall strategy of how the tendering will be completed.
What procurement options are you aware of?
Traditional
Design and build
Management contracting
Construction management
Advantages of traditional procurement?
Less risk built into contractor’s pricing
Less risk for the contractor
Employer retains control of the design
Disadvantages of traditional procurement?
None/limited buildability consideration from the contractor
Takes longer to start construction
Design risk is with the Employer(Any changes will be Ces)
Advantages of design and build procurement?
Single point of responsibility
Buildability considered at design
Earlier commencement on site
Risk of design and cosntruction rest with Contractor
Provides greater cost certainty
Disadvantages of design and build procurement?
Client has less control of design
More risk built into the tender returns
Design is only as good as employer’s requirements
What is construction management?
The Employer directly appoint subcontractors instead of appoitning a main contractor.
What is management contracting?
The Employer appoints a main contractor who will appoint and manage the subcontracts.
What is a framework agreement
An umbrella agreement for 2-10years for the procurement withone or more suppliers.
What are the main tendering options?
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 -
What is in a tender pack?
Invitation to tender
Form for tender
Contract conditions
Employer’s amendments
Tender scoring matrix
Project information
Pricing document
Quality questions
Procurement and tendering - Level 2 example?
Framework procurement on Cov AQP and RAFM.
Procurement and tendering - Level 3 example?
Additional palisade work on Cov AQP. Procurement route management contracting even after construction management considered.
What is the Procurement Act?
Replaces OJEU after we left EU. Procurement act sets standards for public procurement. Threshold for our works is £5.3m.
