Experience Area D - Procurement Flashcards
What are the general steps of the tender process?
Select your tenders (selective tendering vs public tnedering
Preparation and submission of tender doucments including instructions
3-4 weeks should be given to prepare tenders
Notice to tenders if required
Tender is recieved prior to the date of submission. Late submissions not valid.
Evaluate the tender sumbissions as soon as possible
Let pricipal know your thoughts and get their agreement of winning tenderer
Notify winning tenderer with a Letter of Acceptance - here a contract exisits
Each tenderer should be sent a list of the tendered sum submitted by each tenderer together with the name of the successful tenderer.
Where a schedule of quantities has been provided, the priced schedule should be submitted as required by NZIA SCC Schedule C2 Schedule of Quantities
Typically how many tenders would you approach?
3-4, max 6
What should the tenders receive as part of the tender documents?
identical documents including:
* drawings
* specifications
* contract pro-forma
* two copies of the tender form
* submission instructions (tender schedules)
* a schedule of quantities if applicable
What is a Notice to Tenders?
A letter with attached doument idenfying additonal information to be given to all tenderers. This will include attachments for related doucments.
How long do you have to evalue the tenders?
Do as quickly as possible. Typically a tender is deemed to remain in force for one calender month
How long should generally be allowed for Tenders
3-4 weeks
What is a letter of acceptance?
A letter to inidicate a successful tender.
What is a PCE?
Preliminary Cost Estimate
Used in ECI
A preliminary estimate is made before the tender of a project when there’s limited information available.
What is an EOI?
Expression of Interest (we can send this to a contractor).
This is one way of getting a list of tenderers
An expression of interest (sometimes referred to as ‘request to participate’) is a submission made by a prospective tenderer in response to an advert (or contract notice) for the supply of goods or services.
What methods are there to get tenderers?
compile a list of capable builders based on past
- collaborations
- client recommendations,
- industry professional recommendations
And EOIs
What is Early Contractor Involvement?
Early contractor involvement is a type of construction contract where the principal contractor is engaged at an early stage in a project to offer input into the design phase.
What are the pros and cons of a CRC?
Pro:
You are paying for what is done
CON:
Unknown final costs
What is Open/Public Tendering?
This method involves inviting contractors to apply for a project through a public forum, providing them
with adequate information to submit their applications.
What is Selective Tendering?
SGA uses a selective tender process by requesting Expressions of Interest (EOI) from potential
contractors. We compile a list of capable builders based on past collaborations, client recommendations,
and industry professional recommendations.
What are Pros and Cons of Early Contractor Involvement (ECI)?
Pro:
a less complex and time-efficient approach compared to a selected tender process.
Figure out details early on
Transparency
Con:
Tension if ECI goes to tender
Ensure no intellectual property conflicts if contractor not awarded to the contractor
What other tender processes exist outside of the NZIA processes?
3910 tendering schedules
Government Electronic Tenders Service (GETS)
If the tender is accepted, what does the client become and what does the tenderer become?
Principal and Contactor
LOOK AT PN 4.110 and make cue cards
ok
What date should you put on the in the Specific Conditions when tendering?
Practical Completion date. Or time in working days to acheive PC
What happens if the Pricipal requests PC in the shortest period of time when Preparing tender doucments?
Where the Principal seeks Practical Completion in the shortest possible time, alternative times for Practical Completion may be stated in the Tender Documents and referred to in the Tender Form
Tenderers can provide alternative prices, for shorter or longer construction periods, on a clearly defined basis.
What happens if tenders ask the Architect for names of subbies?
During the Tender period, the Architect may, if requested by tenderers, provide the names of subcontractors who have indicated to the Architect willingness to quote for their particular portion of the work. - nominated subcontractors
What information may the Architect provide to subcontracting companies upon request? Why might increasing the number of subcontract quotations be advantageous for the Principal?
The Architect may provide the names of tenderers to any subcontracting company requesting this information.
Increasing the number of subcontract quotations may be to the advantage of the Principal.
(Most practicing Architects believe this information should only be released in the final few days of the Tender period to minimise any opportunity for subcontractors to act as a conduit for exchange of pricing information that might disadvantage the Principal).
How should the Architect handle additional Tender information during the Tender period?
The Architect should number each additional issue sequentially (as Notice to Tenderer No….), date them, and ensure they reach all tenderers in time to allow them to act on the information provided.
What requirement should tenderers fulfill in response to the issuance of additional Tender information?
Tenderers should state in their Tenders that they have received the additional information. The tender form should include a pre-prepared statement to this effect.
Can the tenderer submit additonal tenders?
It is the prerogative of tenderers to submit additional
alternative tenders, qualified to suit their own capabilities.
What should you do if a Tender is received after the specified date and time for submission?
Any Tender received after the date and time for the submission of Tenders is invalid and should be returned to the tenderer unopened.
What restriction is imposed on tenderers regarding the alteration of their Tender after the submission time?
No tenderer may alter the amount or terms of that Tender after the time set for the submission of tenders.
What action should a tenderer take if the Architect requires additional information to evaluate the Tender?
The tenderer should supply the information within the time determined by the Architect, which should be adequate to allow the tenderer to provide the required information.
What is the confidentiality status of each Tender?
Each Tender is confidential, and the Architect is prohibited from releasing any details to any other tenderer or to anyone with a financial interest in tendering.
What action should the Architect take if a Tender appears unreasonably low or contains errors?
f any Tender appears to the Architect to be unreasonably low or to contain errors, the Architect should notify the tenderer. This allows the tenderer to confirm the Tender price or withdraw the Tender.
When is a tenderer allowed to withdraw a Tender?
Any tenderer may withdraw a Tender before acceptance.
How long is each Tender deemed to remain in force, unless stated otherwise?
Unless qualified to the contrary, each Tender is deemed to remain in force for one calendar month from the date for submission to Tenders.
What action should the Architect take if the acceptance of a Tender is delayed?
If acceptance of a Tender is delayed, the Architect should write to each tenderer under consideration, explaining the reason for the delay and requesting written confirmation that the Tender remains in force. If acceptance may take more than one month, an indication of this should be given to tenderers in the Tender Documents.
Why is the opening of Tenders in public or in front of invitees not recommended?
The opening of Tenders in public or in front of invitees is not recommended as it can lead to misunderstandings.
What potential issue is highlighted regarding Tenders that offer the lowest price?
Many Tenders will include qualifications that may influence the evaluation and awarding of the Contract. It is not unusual for the Tender that offers the lowest price to be subsequently found to be an inferior offer when all factors are taken into account.
How fast should the decision on the Tender acceptenace be made?
It is very important that a decision in regard to acceptance be made at the earliest possible time after the submission of Tenders and that all tenderers be promptly notified
What information should be sent to each tenderer as soon as practicable after a Tender is accepted?
As soon as practicable after a Tender is accepted, each tenderer should be sent a list of the tendered sum submitted by each tenderer (although each tenderer is not usually identified by name), together with the name of the successful tenderer.
When does a Contract come into existence after the acceptance of a Tender?
s soon as a Tender is accepted, normally by a letter of acceptance, a Contract comes into existence. The validity of the Contract is not affected by any delay in signing the Contract Documents.
What is the requirement for submitting a priced schedule of quantities when a schedule has been provided?
Where a schedule of quantities has been provided, the priced schedule should be submitted as required by NZIA SCC Schedule C2 Schedule of Quantities.
What is the general procedure for Open/Public Tendering?
Open/Public Tendering involves issuing an invitation to tender through public advertisement. The advertisement should include particulars such as a general description of the work, the location of the site, the proposed date of availability of tender documents, and the names of the Principal, Architect, and other consultants
How are deposits handled in the context of Open/Public Tendering?
Deposits in Open/Public Tendering should be provided and processed as described in the Conditions of Tender.
What information must tenderers provide to the Architect in the Open/Public Tendering process?
Tenderers must furnish adequate information to the Architect to establish that they have the capacity to undertake the work and achieve expected standards of work.
What is the primary objective of selective tendering?
The primary objective of selective tendering is to obtain tenders from builders, each of whom is believed to be capable of successfully completing the project.
How is the list of suitable builders prepared in selective tendering?
In selective tendering, a list of suitable builders is prepared, and each builder is asked if their company wishes to be placed on the tender list. A maximum of six tenderers is considered sufficient to provide competitive tendering.
What information is included in the invitation for selective tendering?
The invitation for selective tendering, whether oral (e.g., by telephone) or in writing, should contain information similar to that given in a newspaper advertisement for public tender or registration of interest.
The advertisement should include particulars such as a general description of the work, the location of the site, the proposed date of availability of tender documents, and the names of the Principal, Architect, and other consultants
How are tenderers selected in selective tendering?
Tenderers may be selected from a list held by the Architect, firms recommended by the client or other architects, or through an advertisement inviting registration of interest and submission of credentials from suitably qualified contractors.
What is the role of the Architect in the inclusion of suggested tenderers in the selective tendering process?
The Architect has the responsibility to advise the Principal about the tenderers suggested by the Architect. The inclusion of these tenderers in the tender process requires the agreement of the Principal.
The architect must be careful not to “recommend” tenderers but speak from an experiential or factual point of view (stick to the facts)
Do you need the clients permission to include selected tenderers into the tendering process?
Yes
Why may a Tender deposit not be required for selected tenderers in selective tendering?
As selected tenderers have been chosen based on their ability to carry out the work successfully, a Tender deposit may not be required in selective tendering.
What is a tender deposit?
Tender Deposit means a deposit which may be required to be paid with the submission of a bid as an act of good faith by the potential supplier or contractor. Mainly for open tenders
What is the difference between the trade summary and the tender summary proformas?
Trade summery is form 1a and Tender summary is form 1b (masterspec classification)
What proformas could you send to the tenderer?
Proformas on Trade/Tender Summary and Montary Alloances (Prime Cost and Provisional Sums).
The tenderer may provide their own documents from thier inhouse template
Why are there Principal Supply Items?
Reasons might include:
a) Goods that the client already has or owns
b) Goods the client believes that they can purchase for inclusion in the contract.
Do tenders need to know about client supply items?
Tenderers need to know about these at the time of tendering, and to allow for the same in their tender.
Examples of Principal Supply Items
For a residential project, these might typically include:
a) Hardware
b) Sanitary ware & accessories
c) Tapware
d) Tiles
e) Light fittings
f) Kitchen cabinets
Who retains responsibility for Principal supplied items throughout the construction process, even after they are fixed in the building?
At all times, the responsibility for Principal supplied items remains with the Principal, even after they are fixed in the building.
What are the disadvantages of pricipal supply items?
- The Principal may not order correctly.
- Additional time input required by the Architect and the Principal.
- There may be a shortage of the selected product, or there may be defective goods.
- Quality of goods
What advice should be considered when it comes to the supply of goods in a construction project?
Consider advising the Principal of the merits of having the main Contractor supply all goods from a list prepared by yourself or the Principal.
How can the supply of goods be handled when specific items have not yet been selected?
Where goods have not yet been selected, consider the use of a monetary allowance in the main contract for the supply of these items.
hat information should be included in the tender to inform the Contractor about Principal supplied items?
Include in the tender a detailed list of the items, quantities, technical specifications, etc., so that the Contractor is fully informed of the nature of the items
What precaution should be taken regarding the delivery of goods to avoid delays?
Verify the Contractor’s construction programme for the latest delivery dates so as not to cause delay.
Why is it important for goods to be supplied early in the construction process?
Ensure the goods are supplied early enough so that they can be inspected, checked as being correct, etc.
How should Principal supplied items be valued for insurance purposes?
Ensure Principal supplied items are valued for insurance purposes at full replacement cost.
What aspect should the Principal be made aware of regarding the time required for handling supplied items?
Make the Principal aware of the time required for selection, replacement of incorrectly supplied items, defective items, returns, etc.
How do we know the tenderer has capacity?
You must communicate with the tenders and ask about their business timelines including other jobs
A tender deposit may be required from public tenders as a means of insurance against the tenders pulling out.
What do the tenders provide you when they have completed their tender?
All information requested int he tender doucments. All the tender schedules, and tender forms
What are the issues to consider where more than one Contractor might be working on the site at the same time?
- Co-ordination / demarcation between main Contractor and separate contractors
- Responsibility for site safety issues
- Insurance
- Performance liability
