Level 1 Flashcards
Knowing
What guidance is available relating to procurement and tendering?
RICS Tendering Strategies Guidance Note
What types of tendering are you aware of?
Single stage, two stage and negotiated tendering
What do you understand by serial tendering?
It is a hybrid form of tendering using either single or two stage tendering and negotiated tendering. Can be used to serve a framework of negotiated further phases of work and is based on a schedule of competitive rates.
What do you understand by single stage tendering?
Competitive tendering strategy for obtaining a price for the whole of the construction works. Done at RIBA Stage 4, tendering contractors receive the most detailed information. A pre-determined tender period is provided to submit their tenders. These are analysed in terms of costa and quality before a single contractor is declared the preferred contractor. Enter into building contract.
What do you understand by two stage tendering?
Used where time is constrained. It enables design and tendering to overlap. Benefit of technical input of a contractor in later design stages RIBA 2 & 3. Used to obtain early appointment of contractor. First stage tender enquiry documentation includes; Preferred contractor based on quality of bid, their team, preliminaries price, OH&P. The preferred contractor then joins the Consultants using a pre-construction services agreement (PCSA). Works with the design team to complete design to RIBA Stage 4 before presenting a bid.
What do you understand by procurement?
The overall act of obtaining goods and services from external sources. Includes deciding on the strategy on how goods will be acquired by reviewing the clients requirements (time, quality, cost) and their attitude to risk.
What is the difference between procurement and tendering?
Tendering is a phase in the procurement strategy which obtains a price and is how a contractor is appointed. Procurement is an act of obtaining goods and services from external sources.
Explain the impact of the Procurement Act 2015 to me.
The PCR (Public Contracts Regulations 2015) apply to procurements of goods, services or works commenced before 24 February 2025. The procurement act 2023 is the procurement of goods, services, and works in the UK. These changes aim to streamline the procurement process by reducing bureaucracy, promoting transparency, and fostering fair competition. Introduce a new, streamlined procedure known as the Competitive Flexible Procedure give contracting authorities greater freedom to negotiate with suppliers and tailor the procurement process to their specific needs. Supplier performance: A ‘debarment register’ will list suppliers who have underperformed previously
Levelling-up: There will be a greater impetus to keep public money in the UK
Simplification: The new regime introduces simple language, departing from previous legalese
Direct awards: These are available only when there is a ‘threat to life’
Automatic suspension: The new regime introduces additional clarity and duty required from the aggrieved party
What is a net contribution clause?
A net contribution clause states that where two or more parties involved in a construction project are each jointly liable for the same loss or damage, the liability of each party will be limited to the amount which would be apportioned to that party by a court.
The amount that can be recovered from one party can be limited by a net contribution clause. This restricts liability to the amount for which the party being pursued is responsible. Other amounts must be recovered from the other parties. Net contribution clauses assume that parties responsible for the same loss or damage are all contractually liable to the other party to the contract, and that they have paid the share that they would have been apportioned under common law.
Without a net contribution clause, a designer and a builder are each liable to the client for the defective works. In this case, the client can recover all of its loss from the designer despite the joint liability of the builder. The designer must then seek to recover a portion of those damages from the builder under the Civil Liability (Contribution) Act 1978.
The effect of a Net Contribution clause is that if the court found the designer 70% liable and the builder 30% liable, the client can recover only 70% of its damages from the designer. The client must also then seek recourse by a further claim against the builder to recover the remaining 30% of its loss.
With a Net Contribution clause, if the builder becomes insolvent when the client brings its claim against the designer who is 70% liable, the client may in practice recover only 70% of its total loss. if there were no Net Contribution clause, the architect could be liable for 100% of the damages under the Civil Liability (Contribution) Act 1978.
What is each and every claim policy?
Policy cover each individual claim that is made against the policy during the policy period. This means that the policy limit applies to each claim separately, regardless of how many claims are made during the policy period.
What is in the aggregate policies
In the aggregate’ policies provide coverage for all claims that are made against the policy during the policy period, up to the policy limit. This means that the policy limit applies to the total amount of all claims made during the policy period.
What is the difference between Alternative 1 or Alternative 2
Alternative 1 – the QS should amend computing errors arriving at a new tender sum. Inform the contractor who can choose to either confirm or withdraw.
Alternative 2 - QS should amend computing errors arriving at a new tender sum. Inform the contractor who can choose to confirm or amend.
What are LDS and LADS and how are they applied?
Liquidated damages and liquidated and ascertained damages are a genuine pre estimate of loss which have been agreed between the parties in the Contract that compensate the client if the contractor doesn’t meet the completion date.
The are applied following a non completion certificate and withholding notice informing the contractor that they are going to to withhold payment.
What procurement options are you aware of?
Traditional procurement route (lump sum), design and build, partnering, construction management.
