4B - Pre-Contract and Tendering Flashcards
What is the process once you have tenders returned to you?
- Assess each tender based on quality VS price - different jobs have different weightings.
- Check for errors.
- Reply to tenderers whether they are successful or not - list the tenderers at the end, but anonymously (you can give the tender prices but must remain unbiased)
- In the public sector there are more strict rules and more weight on cost as it is publically funded.
What is included in the tender package?
Documents and drawings included are:
* An invitation to tender letter
* Drawings
* Bill of Quantities
* Specification (often the drawing legend)
* The form of tender/contract
* and sometimes the Designers Risk Assessment
What is contained in a tender report?
This is produced by the quantity surveyor and outlines process and results:
* Forms of tendering used
* List of tenderers
* Range of tender prices
* Notes of obvious errors and modifications
* Amendments to the tender during the tender period
* Recommendation
What are restrictions on local authorities during the tender process?
Even considering quality, landscape architects have to select the tenderer with the lowest price. All tenderers should be of equal quality due to the shortlisting process.
How do LPAs go about tendering?
Depending on the size of the project:
* Use Find a Tender service
* Framework agreements - whereby contractors tender to be on the framework and if accepted they don’t tender for previous jobs
* Invitation to tender via BALI - private sector
On a small landscape design scheme, how would you go about preparing the bill of quantities and specification?
If the project isn’t large enough to warrant a quantity surveyor, you would need to estimate the quantities of materials required, time needed and therefore cost implications, labour, and other factors. This could be aided by SPONS Architect and Builders price book.
What is a specification?
This is a document usually prepared by the designer that describes the materials and workmanship required for a development. It does not include cost, quantity or drawn information and so needs to be read alongside other information such as bill of quantities, schedules or drawings. It can either be a performance spec. or descriptive.
What is a bill of quantities and what does it typically contain?
A bill of quantities is a document used in tendering in the construction industry. Materials, parts and labour (and their costs) are itemised. It contains: preliminaries, measured works, prime cost and provisional sums.
How would you select a list of tenderers if working in an unfamiliar region?
I would begin by asking colleagues, clients, or other consultants and then checking the BALI website.
What factors would you consider when deciding on the most suitable tendering method?
The degree of cost certainty, quality, time efficiency that the project / client requires.
The tender method may be determined by the chosen procurement method, for example framework agreements.
The client has asked you to provide a shortlist of contractors for a construction project. How would you find suitable contractors?
I would make recommendations based on my past experience, then ask colleagues, clients or other professionals for recommendations. Then I would check the BALI website or if in a public sector project, use a framework agreement.
How would you ensure a contractor was suitable for a project?
I would check their quality assurance and Health & Safety procedures, financial standing and resources. It might also be worth requesting references, asking questions or for a portfolio of similar projects.
What are the different tendering methods?
Open tendering: any contractor can submit a tender following advertisement
Selective tendering: Contractors can submit a tender by invitation
Negotiated tendering: one contractor is approached directly and submits a tender following negotiation
Serial tendering: Contractors can submit a tender for a series of similar, minor works projects
Framework tendering: allows shortlisted contractors signed up to the framework agreement to bid for projects over a fixed period of time.
What is single stage tendering?
Single stage tendering is the more conventional process. Tenders are sought based on tender documents and production information (all info required to calculate a price), assessed and the contractor is appointed using defined criteria such as cost and quality.
What is two stage tendering?
Two stage tendering is used when an early appointment of a contractor is necessary so the design won’t be developed enough for an accurate cost.
First stage - similar to single stage but less information is provided and the preferred bidder is selected (“limited appointment”). The appointment is then dependent on the second stage based on the proposed programme, method statement, preliminaries, and pricing etc.
Second stage - negotiation between client and preferred bidder.
Design team and contractor finalise design and the contract sum is only established at the end of the second stage.
When might a two stage process be used?
A two stage process might be used for projects with time constraints, for example design and build contract for a new school.
What is the process for open tendering?
The project is advertised, for example on ‘Find a Tender’ portal.
Anyone in the European market can tender.
Tender is selected based on price - the most economically advantageous tender is chosen.
When would you use negotiated tendering?
When there is already a working relationship between the client and contractor and a specialist service is required.
Negotiated tendering can either be one or two stage.
What are the pros and cons of single stage selective tendering?
Pros:
Reduces abortive costs involved in estimating
All tenderers will be capable of works
Cons:
Higher cost involved as it is a more onerous process
No negotiation, therefore it is less flexible
Increased design team input
What are the pros and cons of negotiated tendering?
Pros:
Early appointment of a contractor
Cost saving due to contractors expertise
Established relationship benefits
Cons:
Higher price of tenders because they pre-empt negotiation and there is less competition
Design uncertainty, therefore a cost uncertainty
What can you do if an error is discovered in a returned tender?
You can either offer the contractor a confirm or withdraw or confirm or amend.
If they choose confirm or withdraw: this is usually for public sector procurement due to the tender price not being able to change. If they withdraw, the next cheapest is selected.
If they confirm or amend, a correction of the tender prices is permitted. If amended they can still be successful if their price is the lowest.
What is the tender process?
- Contact the potential tenderers to ask if they’d like to submit (out of courtesy)
- Ask tenderers to complete an expression of interest
- Follow up with a selection questionnaire so the tenderer can prove capacity early and reduce any non compliant tenders.
- Invitation to Tender issued to the tenderers.
- Tenders returned (contractors work through the ITT and prices the BoQ)
- Checking of tenders and notification (late tenders are rejected, QS examiens to detect any errors and scores are returned based on the selection criteria)
- Tender report and recommendation (QS provides report outlining the process and results and makes an offer)
- Acceptance of tender (offer acceptance initiates the contract)
- Notification of tenderers (inform unsuccessful tenderers)
- Contract preparation (full documents are prepared and signed, Contract Award milestone)
What is the production of information?
Production of information is essentially the same as contract documents: Qualitative information such as plans and drawings and quantitative information such as the BoQ and specification.
What is the difference between a descriptive specification and a performance specification?
Descriptive: describes the quality of materials, workmanship, material dimensions, finish and construction method can include specific products such as make and model of benches.
Performance: describes the desired result, i.e. ‘a bench’.
What would you have to consider when specifying materials and products?
Aesthetics
Cost vs Budget
Availability and lead times
Compliance and certificates e.g. BS, BREAAM, FSC etc.
What is the purpose of a Bill of Quantities?
Enables tenders to be submitted based on the same information
Assists the same contractor in selecting material and labour
It forms the basis for valuing alterations
Assists in preparing interim valuations and future estimates
Important link between design and construction
Used as a cost estimate pre-tender
What is a bill of quantities?
An itemised list of materials and parts required for a construction project.
What are the contents of a bill of quantities?
Preliminaries (sets out contractors working arrangements) and the measured works (quantities summarised from drawings and the specification.
In the Bill of Quantities, what is prime cost, provisional sum and contingency sum?
Prime cost is an exact sum for works and details known at tender
Provisional sum is estimated by the QS when work cannot be accurately quantified at tender. This could include works below the ground.
In a Defined Sum the risk is carried by the contractor. If Undefined, the the risk is carried by the client. Extensions of time and additional costs can occur.
Contingency sums allow for unforeseen works and are a specific percentage (2.5% or 5%) of the tender cost. This can be released with the authority of the QS or CA.
What takes precedence if there is a discrepancy between product information?
For discrepancies between the bill of quantities, specification and qualitative information it depends on the contract. normally the bill of quantities would take precedence corrections resulting in changes to rates or quantities were resulting variation. Contract administrator will then decide which takes precedence if there are no priced work schedules.
Is a bill of quantities always required?
No. In some cases, bills of approximate quantities, schedules of works or schedule of rates is sufficient.
What is the role of a contract administrator?
They advise the client
Prepare contract documents
Advise on contract responsibilities
Chair pre-start and progress meetings
Contract administration throughout construction phases
Visits to the site to check progress
Issue instructions and carry out variations
Consider any claims
Collate schedule of defects
And issue progress and pay certificates
What is the overview and key principles of pre-contract and tendering?
Technical design
Procurement strategy
Tendering process example selective or open
Post tender period
What RIBA work stage covers detailed design to production information?
Stage four technical design
When submitted documents for tender what technical design information may be included?
Depending on the level of detail and form of procurement, what types of specification may be used?
Descriptive or performance
Descriptive includes additional information such as the manufacturer of the size the colour
Performance describes only what the item is, i.e. a bench
What regulations should you be aware of when producing technical specification for public contract documents?
Public contract regulations
What are some preliminaries?
Preliminaries of works that are priced by the contractor for work not covered elsewhere in the tender documents. These form part of the bill of quantities and can include things like:
Access
Site security
Statutory approvals
Site meetings
And day works
What are dayworks?
Daywork when a contractor is paid for instructed work based on the cost of labour, materials and plant (plus a markup for overheads and profit). These cannot be priced into the bill of quantities. It is generally used when work cannot be valued in the normal way for example there is no comparative rates in the bill of quantities and a pro rata method of pricing cannot be used such as an unforeseen works. This method of pricing can be open to exploitation so it is advisable to put monitoring and controlling procedures in place.
What alternatives to the bill of quantities exist?
Bill of approximate quantities this comes earlier in the design process before a design is final
Schedule of works when a contractor quantifies and prices work based on specification and drawings
A schedule of rates when work required is not known at the outset
What are the pros and cons of a schedule of works?
Pros
Fixed price lump sum
Contractor produces measurement so there’s less risk to the client
Cons
Design must be reasonably well advanced
variations can be difficult to agree with a contractor
More difficult to compare tenders
What is the role of a quantity surveyor?
Prepare the bill of quantities
Prepare pretender estimates
Check tenders and produce the tender report
Advise on general financial aspect of project
Involved in any design variations during construction
Measuring works carried out on site and periodically valuing all material on site
Producing monthly cost reports
What is included in a tender report?
Statement of what the project comprises
Form of tendering used
List of tenderers and any that have withdrawn
Range of prices
Quality assessments, if applicable
Amendments, if applicable
Comment on current rates within the market
Recommendations
What would inform your tender decision?
In theory, the lowest tender should win even in the private sector as all tenders should in theory be suitable. this is insured through the form of procurement and the tender method and shortlisting. However on project qualities is a priority it may be better to recommend tenders that stand out for quality and experience.
What happens once a tender report and recommendation to the client has been made?
They offer from the selected contractor is accepted, signed in writing and this initiates the contract. Unsuccessful tenders are informed and given feedback tenders can be listed in alphabetical order with price in ascending order but without names.
Where would you refer to for further information for guidance and model forms for the tendering process?
JC tendering practice note 2012 - this guidance covers the selective process, including single stage, two stage, competitive dialogue, tendering, and prequalification and assessment. It also covers the preliminary enquiry, invite to tender and assessment and award.
The NBS guide to tendering 2011 - this covers procurement, tender assessment and contract award and focuses on single stage selective tendering
What is a prequalification questionnaire?
In a single stage tender this is used to prove the capability of each tenderer. It includes things like experience, management structure, competence and resources and environmental credentials.
How would you put together a list of potential tenders for a client?
Previous experience
Ask colleagues in the professional or the clients
Look at clients previous preferred contractors
And check BALI website
Explain the tendering process… for selective single stage
Tenderers are shortlisted
Selection questionnaire
Invitation to tender
Tender return, which is then checked
Tender report and recommendation
What is included in the invitation to tender documents?
There is a form setting out project and location, drawing list, specification and bill of quantities
What is involved in the tender return stage?
Contractor submit the priced bill of quantities
Tender returned within 28 days for private, 40 for public
Formal opening procedures with witnesses at 12 pm
Late tender rejected
Quantity surveyor examines to detect errors prior to acceptance
Quantity surveyor scores costs
What happens if errors are found by the quantity surveyor in the tender return?
The quantity surveyor would notify the contract administrator who would notify the tenderer with the option to confirm or withdraw (public) or confirm or amend (private)
What should a tender report contain?
Statement of what the project comprises
Form of tendering used
List of tender and any that have withdrawn
Range of tender prices
Quality assessments, if applicable
Notes of obvious errors
Amendments, if applicable
Comment on current market rate
Recommendation
