Level 2

Question 1

What does Contractors Design Portion mean?

Answer 1

It is an agreement for the contractor to design specific parts of the works. The contractor may in turn sub-contract this design work to specialist sub-contractors.

Question 2

Does the Minor Works have a CDP Portion?

Answer 2

The JCT Minor Works Contract has a ‘with contractor’s design’ option and a separate sub-contract with sub-contractor’s design.

Question 3

How do you ensure that the costs allowed for LDs were accurate?

Answer 3

• Research and confirm costs

Question 4

What sections were included within the contract docs?

Answer 4

• Main JCT contract
• Specification
• Priced SoW

Question 5

Explain the difference between single stage and two stage tendering.

Answer 5

Single Stage – Go to tender with completed consultants design and specification. Contractor prices the bill of quants, schedule of work or performance spec. Benefits include greater cost and programme certainty, reduced cost due to competitive tender, clear allocation of risk.

Two Stage - The first stage tender is based on a partially developed consultant’s design (prelims, prov sums, demolitions, earthworks, schedule of rates etc.). The contractor selected at the first stage is then able to assist with the final development of the design and tender documents used to obtain tenders for the construction works. The second stage can either be tendered or negotiated to arrive at a contract sum. Benefits include contractors input and buy in to the design, collaborative working relationship.

Question 6

What is a tender?

Answer 6

A submission made by a prospective supplier in response to an invitation to tender. It makes an offer for the supply of goods or services.

Question 7

What can a client do before an invitation to tender to ensure the prospective contractor is competenent?

Answer 7

Pre-qualification questionnaire (PQQ)

Pre-tender interview.

Question 8

What is a PQQ?

Answer 8

Series of questions for potential tenderers to answer regarding their level of experience, capacity and financial standing.

Question 9

What can a PQQ enable the client to identify?

Answer 9

To produce a short list of suppliers that are likely to be most appropriate for their project. Short-listed suppliers may then be invited to tender for the contract.

Question 10

What is the main objectives of a pre-tender estimate?

Answer 10

Assess the tenderers understanding of the commission.
Assess the tenderers likely approach to the project.
Assess the tenderers current workload.
Assess the tenderers enthusiasm.
Clarify ambiguities on either side.
Verify that the proposed timescale for the tender process is achievable.
Verify that the proposed nature of the tender process will obtain the best results.

Question 11

Define and explain the purpose of tendering.

Answer 11

To select a suitable contractor at a suitable time
The offer of a price is required from the contractor at an appropriate time. This offer will be the basis for the ensuing contract

Question 12

What is a tender analysis?

Answer 12

Assessment of tenders to identify the most economically advantageous tender (MEAT) as opposed to the lowest price.

Question 13

How were the tenders analysed to identify the most econimcally advantageous tender?

Answer 13

It was a 60/40 split between price and quality. The client assessed the quality whilst I evaluated the price. As it was scored out of 60, the lowest cost was given 60.0, the quality had a maximum score of 40. These points were added together to give the final tender evaluation score.

Question 14

What is a bona fide tender?

Answer 14

Without intention to deceive tender, assumed genuine and real.

Question 15

What is a framework?

Answer 15

A framework agreement is an ‘umbrella agreement’ that sets out the terms (particularly relating to price, quality and quantity) under which individual contracts (call-offs) can be made throughout the period of the agreement (normally a maximum of four years)

Question 16

What are the benefits of a framework?

Answer 16

A selection of contractors shortlisted to be capable of providing the delivery of a project

Question 17

What is the Dynamic Purchasing System?

Answer 17

Electronic method of procurement, used for the supply of goods and/or services. It’s different to traditional procurement routes as it operates an ‘open market’ for suppliers to join either constantly or very frequently. This allows buyers to continually expand their network of suppliers and welcome new businesses that can meet their changing needs.

Question 18

What is the difference between DPS and a Framework?

Answer 18

DPS- continually open/regularly re-opened for the buyer to build up a pool of suppliers that they can call upon whenever they need it.
Framework is restrictive with the application window/frequency.

DPS flexible in terms of the amount of suppliers they allow into the network. A framework will determine a number of suppliers required when it is put out to tender.

Question 19

The pro’s of a DPS for the supplier?

Answer 19

Open/reopen, more accessible for less experienced suppliers to get on public sector, typicall less/time effort/documents for DPS.

Question 20

The con’s of a DPS for the supplier?

Answer 20

No guarentee of work. Larger pool of suppliers means more competition.

Question 21

The pro’s of a DPS for the buyer?

Answer 21

Larger pool of talent to call upon.
Becoming more popular
Isn’t restricted to a number of suppliers. Less risk.
Encourages smaller enterprises.

Question 22

The cons of a DPS for the buyer?

Answer 22

Larger administration task to pre qualify, welcome and add new suppliers to the DPS network.
The buyer could end up with a supplier list that is not being effective and lose close partnerships.

Question 23

What are the five main types of tender?

Answer 23

Open tender
Selective Tender
Negotiated Tender
Single stage and two stage tender

Question 24

What is the difference between procurement and tendering?

Answer 24

Procurement: is the overall act of obtaining goods and services from external sources (i.e. a building contractor) and includes deciding the strategy on how those goods are to be acquired by reviewing the client’s requirements (i.e. time, quality and cost) and their attitude to risk.

Tendering: is the bidding process, to obtain a price; and how a contractor is actually appointed.

Question 25

What is an Open Tender?

Answer 25

allows anyone to submit a tender to supply the goods or services. An advert will be placed giving notice that the contract is being tendered, and offering an equal opportunity to any organisation to submit a tender.

Question 26

What are the advantages and disadvantages of an Open Tender?

Answer 26

Advantages: greatest competition and new or emerging suppliers to try to secure work.

Disadvantages: large numbers of suppliers,who might be unsuitable for the contract, could be a waste a great deal of time, effort and money.

Question 27

What are the advantages and disadvantages of Selective Tender?

Answer 27

Advantages: Specialist or complex contracts/ faster than open tendering

• saving time and money
• Greater confidence that their requirements will be satisfied.

Disadvantages: exclude smaller suppliers

• reduce innovation,
• bias into tendering

Question 28

What are the advantages and disadvantages of Negotiated Tender?

Answer 28

Advantages: Suitable for complex projects where only a few suppliers are capable of works

• confidence of working with a supplier they already know
• reduce the duration and costs of tendering / allow early supplier involvement.

Disadvantages: anti-competitive and exclusive, with the potential for ‘cosy’ relationships to develop between the client and the supplier.
-hard to negotiate without competition to compare to and reach a fair outcome

Question 29

What is Single-Stage Tendering?

Answer 29

is used when all the information necessary to calculate a realistic price is available when tendering commences. An invitation to tender is issued to prospective suppliers, tenders are prepared and returned, a preferred tenderer is selected and following negotiations they may be appointed.

Question 30

What is Two-Stage Tendering?

Answer 30

Is used to allow the early appointment of a contractor, prior to the completion of all the information required to enable them to offer a fixed price. In the first stage, a limited appointment is agreed allowing the contractor to begin work and in the second stage a fixed price is negotiated for the contract.

Question 31

When would you use Two-Stage Tendering?

Answer 31

Design/build procurement route when wanting the contractor to assist with design and provide advice on build-ability and cost feasibility

• when needing to appoint mc early
• appointment of specialist contractor i.e cladding for first stage of works or design.
• enables the client to transfer design risk to the contractor (if using design + build)

Question 32

What is a vesting agreement?

Answer 32

A vesting agreement is a written document that confirms that the ownership of construction goods, plant, or materials will be transferred from one party to another upon payment. It is also sometimes referred to as an indemnity agreement or vesting certificate.

Question 33

How can the Client protect itself against the risks of offsite materials payments?

HINT: O-I-I-I-O

Answer 33

OWNERSHIP - (supported by a Vesting Certificate)

IDENTIFYING THE MATERIALS - (materials segregated and specifically marked as the Clients property)

INSPECTION - (Access allowed to where materials are being held to inspect the quality of the goods)

INSURANCE - (Risk of damage to materials should be covered by insurance and employer named on the policy)

OFFSITE MATERIALS BOND - (Allowing the Client to claim under the bond should the materials not be delivered to site)

Question 34

What is included on a Vesting Certificate?

Answer 34

Information about the two parties
Project address and materials storage address
Insurance certificate against loss or damage
Schedule of Quantities - Cost and materials

Question 35

What’s the difference between uniquely listed and non-uniquely listed items?

Answer 35

Uniquely listed - specific for the project and do not require off-site materials bond

Non Uniquely listed items - are not project specific and require a bond to be in place

Question 36

What would you check before selecting a suitable contractor to be included on a tender list?

Answer 36

They are suitable and capable of doing the works
Financial records
Selection should not be made purely on the basis of the lowest price
Assess current workload
Assess understanding of the works
relevant experience
-The pre-qualification questionnaire

Question 37

What are Tender Rules? Give some examples of what it may include.

Answer 37

Details of the documents which form part of
the tender package
Guidance on how to complete
Instructions on information to be returned
Return details
Key dates
(JCT practice note on how to tender)

Examples of what is included:
Conditions of Contract
Bills of Quantities
Specifications
Schedule of Works
Drawings
Employer's Requirements
Contractor's Proposals
Scoring Matrix
Form of Tender
Return Envelope

Question 38

What are the disadvantages of selecting the lowest bid when using Open Tendering?

Answer 38

Might not be entirely suitable or capable of doing works
lower quality of work/spec in some instances
taking shortcuts on health and safety or making cuts where quality might be needed
if not priced properly can result in many variations through out the project

Question 39

What does parity of tendering mean?

Answer 39

that the tendering process remains equal and fair to all tenders who have taken an interest

Question 40

How do you deal with queries during the tender period?

Answer 40

Any tender queries raised are
answered back to all tendering contractors. This is to ensure that
parity is maintained and that no one is given an unfair
advantage.

The name of the tenderer raising the query
should not be mentioned. A collated response
including the answers to a number of queries should
be issued so that it is clear to tenderers that everyone
is being fed the same important information, raised
through tender queries.

Question 41

What should you do if a tender is submitted late? Why?

Answer 41

should be rejected as it is unfair on all other tenderers that submitted on time, only in exceptional circumstances should a late tender be accepted.

Question 42

You are currently working on a project that is currently out to tender. One of the tenderers has submitted their tender before the deadline date but has rang you requesting to resubmit a revised offer? What would you advise and why?

Answer 42

Should not be accepted as will damage parity of tendering unless there exceptional circumstances i.e change in specification or change in a query. Also not advised as firm requesting to resubmit revised offer may have obtained information from other tenderers and therefore that’s the reason they are revising their offer inappropriately.

Question 43

What happens if you only receive 1 tender return?

Answer 43

It’s usually considered abortive. Even two is not considered valid to be able to demonstrate value for money