4B: Pre-Contract and Tendering Flashcards
What is the process once you have had tenders returned to you?
Assess each tender based on quality vs price (different jobs may have different weightings); check for errors; reply to tenderers whether they are unsuccessful or not (list tenderers at end but anonymously)…. refine this answer. You have to remain unbiased and keep results anonymous.
In public sector, there are more strict rules and more weighting on cost.
What is included in the tender package?
A tender package includes both documents and drawings, such as:
- a tender invitation letter,
- drawings,
- BoQ,
- the specification,
- the form of tender / contract
…and sometimes the designer’s risk assessment
What is contained in a tender report?
A tender report is produced by the QS and outlines the process and the results. They include…
- form of tendering used
- list of tenderers
- range of tender prices
- note of any obvious errors and modifications
- amendments to the tender during tender period
- recommendation
What are restrictions on local authorities in the tender process?
Even considering quality, local authorities have to select the tenderer with the lowest price.
How do LPAs go about tendering?
Depending on size of the project… Find a Tender Service (previously OJEU), framework agreements (whereby contractors tender to be on the framework, and if accepted they don’t have to do any further tendering for particular jobs - they are just allocated work by the LPA), invitation to tender via BALI (same as private sector)
On a small landscape design scheme how would you go about preparing the bill of quantities and the specification?
If the project is not large enough to warrant appointing a QS, you as a landscape architect would need to estimate the quantities of materials required, time needed (and subsequent cost implications), labour and other factors.
This could be aided by SPONS book, and previous experience in similar projects.
What is a specification?
A specification 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 a bill of quantities, schedules and drawings.
It can either be a performance specification or descriptive.
What is a bill of quantities, and what does it typically contain?
A Bill of Quantities (BoQ) is a document used in tendering in the construction industry in which materials, parts, and labour (and their costs) are itemized. It typically contains: - preliminaries - measured works - prime cost and provisional sum
How would you select a list of tenderers if working in an unfamiliar region?
Ask colleagues for recommendations, check BALI website, see if clients have any recommendations
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 - e.g. framework agreements.
The client has asked you to provide a shortlist of contractors for a construction project. How would you go about finding suitable contractors?
- If I had experience working with some suitable contractors I could recommend them based on past experience
- ask colleagues, other professionals and other clients if they had any recommendations
- Check the BALI website to find any local contractors that could be suitable
- If public sector: framework agreement
How would you ensure a contractor was suitable for a project?
Firstly, check their QA and health and safety procedures and also check their financial standing and resources.
I can then request references, ask questions, and request a portfolio of recent similar projects.
What are the different tendering methods?
Open tendering: any contractor can submit a tender, following advertisement of the tender
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 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 information required to calculate a price), assessed and then a contractor is appointed using defined criteria, such as cost and quality.
What is two-stage tendering?
Two-stage tendering is used when the early appointment of a contractor is necessary. The design will not be developed enough for the contractor to fully price.
First stage:
- similar to single-stage tendering, except with less information provided
- preferred bidder selected (“limited appointment” - appointment dependent on the second stage of the tender)based on their proposed programme, method statement, preliminaries pricing etc.
Second stage:
- Negotiation between the client and the preferred bidder
- design team and contractor finalise design
- contract sum only established at the end of the second stage
When might a two-stage tender process be used?
For projects with time constraints: for example, design and build contract for a new school.
What is the process for open tendering?
- project is advertised - for example on the government’s new find-a-tender portal, which has replaced OJEU for UK projects since Brexit.
- Anyone in the European market can tender
- tender selected on price - the most economically advantageous tender
When would you use a negotiated tender?
When there is already a working client/contractor relationship, and a specialist service is required.
Negotiated tendering can either be one or two-stage.
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 its less flexible
- increased design team input
Pros and cons of two stage selective tendering?
Pros:
- flexible process
- scope for value engineering
- reduced costs of changes to the contractor
Cons:
- high bargaining power of the approved stage one contractor
- no obligation to award the contract to the approved stage one contractor
Pros and cons of open tendering?
Pros:
- Competitive prices
- eliminates favouritism and attracts new companies
Cons:
- can result in inexperienced or unsuitable tenderers, or who may be financially unsound
- admin process expensive for tenderers and client
Pros and cons of negotiated tendering?
Pros:
- early appointment of contractor
- cost savings 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 cost uncertainty
