Level 1 Procurement and Tendering Flashcards
What is procurement?
The overall act of obtaining goods and services
What is tendering?
The obtaining of a price and selecting a contractor
What is traditional procurement?
Separates design from construction, A full design is given to a contractor to tender.
Y: The employers retains control of the design
Y: Design is finalised before contractors tender
Y: All tenders produce a submission on the same documents
N: Overall project duration is longer
N: Zero input from contractor buildability
N: Design risk is obtained by the employer
What is design and build?
The contractor is given Employer’s Requirements which are responded to with Contractor’s Proposals
Contractor takes on responsibility for design and construction , including the design risk
Y: Single point of responsibility
Y: Earlier commencement
Y: Provides more cost certainty
N: The design is only as good as the ERs
N: More complex to assess tender returns
N: Builder includes risk premiums in their price.
Good for starting on site early and complex designs benefit from contractor buildability.
Difference between the two
What is single stage tendering?
All information is given in one go and the contractors return with a fixed price which is a risk.
What is two stage tendering?
An early agreement under PCSA can be entered, creates an open book to obtain a price throughout the process
1st stage is the appointment under a pcsa
2nd stage is negotiating the pricing agreements.
Allows for buildability and start on site early.
What is a PCSA
A formal agreement entered to carry out services to carry out services before being in the main contract.
How do you select a contractor?
Open: publicly advertised.
Selected: restricts the number of tenderes by pre-selecting a limited number of contractors.
Neogtiatied: effectively a single stage tender
What is a tender report and what does it include?
Review of the tender submissions, includes an overview and analysis of time, quality and cost.
What is equalizing?
When comparing Tender Sums, adjusting the costs by inlcuding/removing certain elements of work to be able to compare CSAs for a like for like basis.
Construction Management Procurement Route?
Construction manager is employed to arrange trade contracts and monitor them.
CM qualified to advise the employer.
CM can exercise cost and quality control.
Management Contracting
Contractor performs the role of managing the works and contractor who carries out the works.
What is Framework?
Template contract for a series of projects
Only negotiate once for projects
Prospect of repeat business.
Not always best value for money
Public procurement regulations may impact.
Tender Clarifications
Mid tender interviews may be arranged to allow clarification of matters and price to allow for a more accurate tender.
Amendment in the tender documentation can lead to an extension of the tender period.
