Level 3 - Negotiated Tender Flashcards
Why did you advise on a negotiated tender instead of a competitive tender?
The contractor has already carried out the phase one works and PC had been granted
The works carried out satisfactory on time and in budget
The scope of works for phase 2 was the same
The contractor was happy to stick to rates previously used and therefore this was much quicker than going out to tender again
If you negotiated a tender in the future what would you do to ensure value for money?
Market test
Benchmark rates
Review prelims allowances
What was the nature of the works?
- Strip out with some demolition works
- Remove all fittings and fixtures from walls
- Remove all RAF
- Removal of screed
- Remove all suspended ceilings
- Remove partitions
Why did you advise on a negotiated tender instead of a competitive tender?
The contractor had already carried out phase 1 of the works
The contractor performed well on was on time and in budget
Phase 2 scope of works was very similar and the contractor agreed to stand by all rates used in Phase 1
Rates were already competitively tendered and therefore there was no need to go out to tender again, saving the client time / money associated with retendering the works
What is a negotiated tender?
A negotiated tender is effectively a single stage tender with a single contractor who usually returns an initial price. This is then negotiated with the Clients professional team (usually the QS)
What are the benefits of a negotiated tender?
Time – the benefits of this route is the speed with which a price can be obtained for the works
Relationships - client might have a good working relationship with contractor and knows they are the best for the project
What are the disadvantages of negotiation?
Cost – The competitive advantage of a formal bidding process is compromised
Not suitable for public procurement contracts
