4B - Pre-Contract and Tendering

Question 1

What is the process once you have tenders returned to you?

Answer 1

• 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.

Question 2

What is included in the tender package?

Answer 2

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

Question 3

What is contained in a tender report?

Answer 3

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

Question 4

What are restrictions on local authorities during the tender process?

Answer 4

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.

Question 5

How do LPAs go about tendering?

Answer 5

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

Question 6

On a small landscape design scheme, how would you go about preparing the bill of quantities and specification?

Answer 6

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.

Question 7

What is a specification?

Answer 7

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.

Question 8

What is a bill of quantities and what does it typically contain?

Answer 8

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.

Question 9

How would you select a list of tenderers if working in an unfamiliar region?

Answer 9

I would begin by asking colleagues, clients, or other consultants and then checking the BALI website.

Question 10

What factors would you consider when deciding on the most suitable tendering method?

Answer 10

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.

Question 11

The client has asked you to provide a shortlist of contractors for a construction project. How would you find suitable contractors?

Answer 11

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.

Question 12

How would you ensure a contractor was suitable for a project?

Answer 12

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.

Question 13

What are the different tendering methods?

Answer 13

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.

Question 14

What is single stage tendering?

Answer 14

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.

Question 15

What is two stage tendering?

Answer 15

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.

Question 16

When might a two stage process be used?

Answer 16

A two stage process might be used for projects with time constraints, for example design and build contract for a new school.

Question 17

What is the process for open tendering?

Answer 17

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.

Question 18

When would you use negotiated tendering?

Answer 18

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.

Question 19

What are the pros and cons of single stage selective tendering?

Answer 19

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

Question 20

What are the pros and cons of negotiated tendering?

Answer 20

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

Question 21

What can you do if an error is discovered in a returned tender?

Answer 21

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.

Question 22

What is the tender process?

Answer 22

1. Contact the potential tenderers to ask if they’d like to submit (out of courtesy)
2. Ask tenderers to complete an expression of interest
3. Follow up with a selection questionnaire so the tenderer can prove capacity early and reduce any non compliant tenders.
4. Invitation to Tender issued to the tenderers.
5. Tenders returned (contractors work through the ITT and prices the BoQ)
6. Checking of tenders and notification (late tenders are rejected, QS examiens to detect any errors and scores are returned based on the selection criteria)
7. Tender report and recommendation (QS provides report outlining the process and results and makes an offer)
8. Acceptance of tender (offer acceptance initiates the contract)
9. Notification of tenderers (inform unsuccessful tenderers)
10. Contract preparation (full documents are prepared and signed, Contract Award milestone)

Question 23

What is the production of information?

Answer 23

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.

Question 24

What is the difference between a descriptive specification and a performance specification?

Answer 24

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’.

Question 25

What would you have to consider when specifying materials and products?

Answer 25

Aesthetics Cost vs Budget Availability and lead times Compliance and certificates e.g. BS, BREAAM, FSC etc.

Question 26

What is the purpose of a Bill of Quantities?

Answer 26

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

Question 27

What is a bill of quantities?

Answer 27

An itemised list of materials and parts required for a construction project.

Question 28

What are the contents of a bill of quantities?

Answer 28

Preliminaries (sets out contractors working arrangements) and the measured works (quantities summarised from drawings and the specification.

Question 29

In the Bill of Quantities, what is prime cost, provisional sum and contingency sum?

Answer 29

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.

Question 30

What takes precedence if there is a discrepancy between product information?

Answer 30

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.

Question 31

Is a bill of quantities always required?

Answer 31

No. In some cases, bills of approximate quantities, schedules of works or schedule of rates is sufficient.

Question 32

What is the role of a contract administrator?

Answer 32

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

Question 33

What is the overview and key principles of pre-contract and tendering?

Answer 33

Technical design Procurement strategy Tendering process example selective or open Post tender period

Question 34

What RIBA work stage covers detailed design to production information?

Answer 34

Stage four technical design

Question 35

When submitted documents for tender what technical design information may be included?

Question 36

Depending on the level of detail and form of procurement, what types of specification may be used?

Answer 36

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

Question 37

What regulations should you be aware of when producing technical specification for public contract documents?

Answer 37

Public contract regulations

Question 38

What are some preliminaries?

Answer 38

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

Question 39

What are dayworks?

Answer 39

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.

Question 40

What alternatives to the bill of quantities exist?

Answer 40

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

Question 41

What are the pros and cons of a schedule of works?

Answer 41

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

Question 42

What is the role of a quantity surveyor?

Answer 42

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

Question 43

What is included in a tender report?

Answer 43

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

Question 44

What would inform your tender decision?

Answer 44

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.

Question 45

What happens once a tender report and recommendation to the client has been made?

Answer 45

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.

Question 46

Where would you refer to for further information for guidance and model forms for the tendering process?

Answer 46

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

Question 47

What is a prequalification questionnaire?

Answer 47

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.

Question 48

How would you put together a list of potential tenders for a client?

Answer 48

Previous experience Ask colleagues in the professional or the clients Look at clients previous preferred contractors And check BALI website

Question 49

Explain the tendering process… for selective single stage

Answer 49

Tenderers are shortlisted Selection questionnaire Invitation to tender Tender return, which is then checked Tender report and recommendation

Question 50

What is included in the invitation to tender documents?

Answer 50

There is a form setting out project and location, drawing list, specification and bill of quantities

Question 51

What is involved in the tender return stage?

Answer 51

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

Question 52

What happens if errors are found by the quantity surveyor in the tender return?

Answer 52

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)

Question 53

What should a tender report contain?

Answer 53

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