JS Procurement Tendering Flashcards
How does the use of a negotiated tender method impact the competitiveness of the pricing for a construction project?
As there is only one tenderer, they know they are not bidding for the lowest tender, so the price is more likely to be higher than if it was a competitive tender
On ‘Walstead Park’ what was your advice to your client?
My advise to the client was that the tender for the enabling works was returned over budget, so I advised my client that moving to a competitive under could help drive a more competitive price, due to there being more contractors in the process. Negotiating with one contractor, their is a risk they are less competitive with their costs
Why would a competitive tender provide better value for money?
There are more contractor’s involved in the tender process, so it is more likely tenderers will be more competitive in their pricing. The risk of a negotiated tender is that as there is only one contractor, they will be less competitive with their pricing.
How can you ensure competition under a negotiated tender?
Ensure that the contractor has signed up to an open book basis and 4-5 quotes are provided for each element of the works. Also, check costs they are providing against benchmarking to ensure these costs are reasonable.
Can you identify some of the risks associated with moving to a competitive tender?
Increased time and effort to re-tender the works which would increase the project programme, contractors bidding for the lowest cost so being less transparent with their costs
What are the disadvantages of a negotiated tender?
Less innovation
Less competitive in terms of price
Can be seen as anti-collaborative
What are the advantages of a negotiated tender?
Continuing relationship between the contractor and client
Negotiation between one contractor can expedite the procurement process
Contractor more transparent with costs as not bidding lowest to win
On ‘Amazon fit-out commercial project’ what was your advice to your client
My advise was to go with a single stage, traditional procurement route, this was because the Client want to take a proactive approach and main design responsibility throughout the design development. They also wanted cost certainty at the time of contract
In your procurement strategy report, you evaluated both the design and build and traditional procurement routes. Could you briefly outline the advantages and disadvantages of these two routes, highlighting the key differences in risk allocation?
Why did you recommend the traditional, single-stage procurement route over design and build for the specific client and project discussed in your report? What were the key considerations that led to this recommendation?
First, the client had a strong preference for maintaining control over design and quality.
Second, the project was not particularly time-sensitive, so the faster delivery of design and build was not a crucial factor.
Additionally, the traditional route allowed for more competitive pricing and greater transparency in risk allocation, aligning with the client’s objectives and the project’s nature
How does the risk allocation differ from a traditional to a design and build?
Under a traditional, the client would assume all risk except the construction risk, where with a design and build, the contractor takes on risk for the design and construction and cost.
Amazon Fit Out - Describe the process of producing an initial ‘long-list’ of potential contractors for a construction project. What factors would you consider in creating this list?
Which tier contractor would be most suitable; would you get the A team of a tier 2 contractor or the B team of a tier 1 contract (value was only £10m).
Contractors happy to work with a traditional procurement route,
working in a live building,
previous experuences
Amazon Fit Out Project - Discuss the importance of a Pre-Qualification Questionnaire (PQQ) in the contractor selection process. How does it contribute to the shortlisting of contractors?
A PQQ ensures that tendering contractors are qualified enough to carry out the work and have the capacity as a company.
How can you ensure fairness and transparency during a tender evaluation process?
Use a jointly developed scoring matrix to evaluate tenders objectively. Provide personalized feedback to unsuccessful contractors and maintain clear communication throughout the process.
On Sussex Creasent, can you go into detail about the tender report you issued?
*First was an introduction into the project; scope, project team, intro into the report, key dates
*Then I described the process; who tendered, any quires raised, addendums, form of contract, info issued
*Then I talked about the tender returns, compliance with timeframes, tender submissions (cost programme), details about the commercial review, price examination, dealing with errors and non compliance items
*Then I evaluated the tenders; talked about the scoring matrix and the split between cost and quality
*Then I gave my recommendation
On BP Phase East, what procurement route did you chose?
It was a construction management procurement route
Why did you pick CM on BP Phase East?
Because for the client time and quality were the biggest factors. With a CM procurement route you are able to
What about the allocation of risk on BP Phase East?
What would you include in a tender opening form?
Cost, programme, OHP, signed and witnessed
On Sussex Creasent, what information did you issue to tenders
Initial Tender Enquiry: Enquiry Letter, Project Information Schedule and PQQ
Tender Docs: ITT, Form of Tender, Contract Condititions, Instructions to Tenderer, Prelims / ERs, Pricing Document, Typical Appendices
What is a enquiry letter
States to confirm interest and includes the project information schedule
What is the project information schedule?
Includes the project value, professional team, tendering procedure, programme, requirements to design, contract used and CPs
What is included within a PQQ
Company financials, health and safety, supply chain information, right to work, quality assurances, experience
What is a ITT
Invitation to Tender formalises the invite, sets the return date and the process for queries
What is a form of tender?
Contractor signs the form and returns their tender, including price and programme
What is included within the instructions to tender?
Proposed scoring mechanism, details to visit site, how errors will be dealt with, information about pre and post tender interviews
