Contact Procurement

Question 1

Who must be considered during a construction project?

Answer 1

The client, the users and the stakeholders

Question 2

What are the 7 steps of a development process?

Answer 2

Assess need
Assess funding 
Begin design
Assess design options
Choose and develop design
Choose contractor
Build and deliver project

Question 3

At what point in the development process does money begin to be paid out?

Answer 3

The initial design phase

Question 4

How does the development process aim to prevent systematic issues with a construction?

Answer 4

Implementing gateways between each main development stage

Question 5

What are the two roles typically appointed by the client to overlook the development?

Answer 5

Project manager

Site supervisor

Question 6

What happens if the site supervisor finds that the contractor is not working to the specifications?

Answer 6

They need to consult with the architects about whether this is allowable

Question 7

What happens to cost of changes and stakeholder influence as the project progresses?

Answer 7

Cost of changes increases

Influence decreases

Question 8

What are the typical limits for cost estimation at stages 3 and 5 of the development process?

Answer 8

20% of the final price at stage 3

5% of the final price at stage 5

Question 9

List three entities considered to be ‘parties’

Answer 9

Any from:

Architects, Builders, Designers, QS, Contractors

Question 10

List three entities considered to be ‘stakeholders’

Answer 10

Any from:

Banks, local authorities, neighbours, environmental groups

Question 11

What is the difference between involved parties and stakeholders?

Answer 11

Parties have a legal, contractual link to the project. Stakeholders simply have an interest in the project outcomes

Question 12

What is a tender?

Answer 12

A collection of documents including design drawings which inform contractors of the type of works which will be required

Question 13

What must a tender package include?

Answer 13

Design drawings, tender instructions, contract terms, method of payment, preliminary site information, H&S documentation and specifications

Question 14

What are the 4 main single bid tender methods?

Answer 14

Open tender
Selective tendering
Pre-qualification
Negotiated

Question 15

When is two stage tendering used?

Answer 15

When contractor input is required to finalise a design

Question 16

Is it possible to change contractors if the price returned by stage 2 tendering is too high?

Answer 16

Yes, but it is complicated and therefore not often done

Question 17

What must happen if a tender applicant requests further information?

Answer 17

The requested information must be sent to all other tender applicants

Question 18

How long is a typical tender return period?

Answer 18

1-2 months

Question 19

What is a good estimate for the price a tender should return?

Answer 19

20-5% of the QS estimate before tendering

Question 20

How does choice of material, if left flexible, affect tendering?

Answer 20

A specified quality must be met regardless of material used

Question 21

What do the EU procurement directives require public bodies to do periodically?

Answer 21

Send out indicative notices of future works that are being planned

Question 22

What must happen if a tender is unsuccessful?

Answer 22

They are told the terms of the winning contract and their score relative to the winner

Question 23

If a contractor provides a tender PIN to the employer, what does this mean?

Answer 23

Their tender application must be considered

Question 24

How do regulations aim to prevent exclusive tendering?

Answer 24

Technical specifications for a project are not allowed to be designed such that only one contractor is able to meet them

Question 25

What is the process of ‘tendering’ a designer called?

Answer 25

Appointment

Question 26

What factors about the employer affect the contract strategy that should be used?

Answer 26

``` Experience Acceptable risk Funding Certainty of project requirement Timescale ```

Question 27

What factors about the design affect contract strategy?

Answer 27

Extent of employer involvement Experience of team Potential benefit of contractor involvement

Question 28

What is a ‘traditional contract’?

Answer 28

Contractual separation of designer and contractor | Full design is completed before tendering

Question 29

What is a ‘design & build contract’?

Answer 29

An integration of design and contractor processes Design input specifies a set of requirements which are used to tender Contractors return design suggestions based on these requirements

Question 30

What is a Novation?

Answer 30

A legal mechanism which allows the preliminary design team of a D&B contract to be substituted in for the contractor’s design team

Question 31

How do partnering, alliances and joint ventures differ?

Answer 31

Partnering is a non binding collaboration between two or more contractors An alliance is where companies agree to work together and are contractually linked but have separate contracts with the client A joint venture is where companies create a new legal entity to allow them to work together on a specific project. The client only signs one contract with this new entity

Question 32

What is a private finance initiative?

Answer 32

When a public body needs to complete a project such as a new hospital but does not have the funds, they allow a private company to maintain and operate the site for 20 years in exchange for a lower cost

Question 33

What contract strategy allows the employer to have direct communication with the works contractors?

Answer 33

A management contract | Note: this is only applicable to clients with a lot of industry experience

Question 34

What is the NEC3 ECC option for a management contract?

Answer 34

F

Question 35

What are some advantages of a traditional contract? (4)

Answer 35

Design requirements are fully understood Approvals requiring early designs can be obtained Designers can assist project development Project can be changed or stopped cheaply

Question 36

What are some disadvantages of a traditional contract? (5)

Answer 36

``` Slower overall Delays are client liable Poor teamwork Frequent misunderstandings Liability for defects is difficult to determine ```

Question 37

What are some advantages of a design and build contract? (5)

Answer 37

``` Incorporating buildability Design delays are not client liable Fewer misunderstandings More price certainty Quicker start and completion ```

Question 38

What are some disadvantages of a design and build contract? (5)

Answer 38

``` Poor flexibility Higher tender price Longer tender period Bad where architecture is important Difficult to compare tenders ```