Contractor Selection and tendering Process Flashcards
What forms a contract?
Offer and acceptance
Consideration and form of tender
An acceptance must be
- certain and ….
- Un….
- By…
- …. acceptance
- Certain and unambiguous
- Unconditional
- By conduct
- Retrospective acceptance
Types of documents used when tendering a project
4
- Design Brief
- Drawings and Performance specifications
- Schedule of rates and prices
- Bill of quantities and approximate quantities
What are the 4 mechanisms for contractor selection?
- Negotiation
- open tendering
- Selective tendering
- Single and two stage - Serial tendering
What are the mechanisms for contractor selection?
- Negotiation
- open tendering
- Selective tendering
- Single and two stage - Serial tendering
Open tendering
Competitive public procurement
Advantages of open tendering
No Favouritism - open to all
Capable firms not always on selected list
Maximum benefit from competition
(Companies will compete and lower their prices)
Disadvantages of open tendering
Lowest tender may be inexperienced firm. Therefore the lowest price may mean bad quality.
No guarantee of stability or capability of the firm
Total cost of tendering is increased. (Larger search and longer process)
what are the 4 stages in selective tendering?
- the p… e…
- the in….
- the…
- the ass… and ….
- The preliminary enquiry
- The invitation to tender
- The tender
- Assessment and award
1 disadvantage and advantage of selective tendering
Advantage - Only capable firms can submit a price
Disadvantage - Level of tender may be higher
Under selective tendering, what is single Tendering?
Who negotiates the price?
By nomination or negotiation with one company. The price is negotiated by the PQS and contractor
Under selective tendering, what is serial Tendering?
Allowing for…
Where a company will continue to use the same contractor as they have formed a beneficial relationship. Allowing for annual contracts or follow-on phases
What are the stages of two stage selective tendering?
(Think about the course work in Meth and Tech)
Stage 1.
Schedule of rates for main items (Labour, materials, plant)
Construction programme is proposed
Preliminaries are identified
Basic version of the project
Stage 2. Full project woker up and Priced
Objective of preselection.
(creating a short listed group of contractors)
- Identify contractors with necessary skills, resources and desire to carry out work
- To give contractors the opportunity to plan their tender load and programme
- Avoid costly mistakes
What should you have in mind for preselection
Size
Charachter
Location
Timing
What should you have in mind for preselection
Size
Charachter
Location
Timing
Response by contractor will be based on what?
From contractors side
- Whether or not they have conflicting future workload.
- Financial and physical workload. Do they have enough reserves to even start the project?
- Market Conditions
- Previous experience
From clients side
- Adequacy of information provided
- Project technicals and risks involved
- Risks imposed by the form of contract and particulars
- The number of contractors provided
What are framework contracts?
A laid out contract that provides the scope of work and possible locations for the work and services. They will describe the contract conditions that will be used for preconstruction services. Useful for people who are continuously commissioning contracts
What are some problems in formulation of bids?
- Build up errors
- Problems in estimation
- Cover bidding
- Cashflow
- Withdrawal of tender
