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Test > Level 3 - Procurement and Tendering > Flashcards

Level 3 - Procurement and Tendering Flashcards

1
Q

What are the OJEU Thresholds?

EU Procurement thresholds

A

Supply services and Design contracts = £164,176

Works Contracts = £4,104,394

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2
Q

N1. What is Procurement?

A

• The overall act of obtaining goods and services from an external source, which includes deciding on the strategy of how these goods are to be obtained by reviewing the Clients requirements.

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3
Q

N2. What is Tendering?

A

• The bidding process to obtain and price, and also the process of appointing a contractor.

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4
Q

N3. What factors can influence the chosen procurement route?

A
  • Clients appetite for risk.
  • Budget.
  • Desired quality.
  • Timings.
  • Funding availability.
  • The type of project.
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5
Q

N4. What is a Traditional Procurement Method?

A
  • The most common form of procurement.
  • Where a client appoints consultants to design the project, prepare the tender documents which are issued to contractors for pricing, usually on a single-stage competitive basis.
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6
Q

N5. Who is responsible for design in a traditional procurement route?

A

• The Client is responsible for design, the contractor is only responsible for the design of their temporary works, and their Contractors Design portion.

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7
Q

N6. What is a Contractors Design Portion?

A

• Included within a contract, whereby a contractor will take on design responsibility for a specific portion of the works.

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8
Q

N7. What must the contractor have if they take on a Contractors Design Portion?

A
  • Takeout and Maintain Professional Indemnity Insurance.
  • Provide copyright licenses for designs to the Client.
  • Provide appropriate levels of skill, care and due diligence.
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9
Q

N8. What types of traditional procurement routes are there?

A
  • Lump Sum.
  • Re-measureable.
  • Cost Reimbursement.
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10
Q

N15. How do the risks differ for the Client for each traditional procurement route contracts?

A
  • Lump sum = low risk for the Client with regards to both finance and quality, unless design is incomplete.
  • Re-measurement = Higher risk to the client finance wise due to lack of agreed final price.
  • Cost Reimbursement = High Risk Financially, no incentive for contractor to cover costs.
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11
Q

N16. What common forms of JCT Contracts do you know?

A
  • JCT Standard Building Contract 2011.
  • JCT Intermediate Building Contract 2011.
  • JCT Design and Building Contract 2011.
  • JCT Minor Works Contract 2011.
  • JCT Major Works Contract 2011.
  • JCT Management Building Contract 2011.
  • JCT Construction Management Contract 2011.
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12
Q

N17. What is a re-measurement contract?

A
  • Where the design can be described but the Quantity Cannot.

* Design must be detailed enough to be able to produce rates from it, based on an approximate bill of quantities.

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13
Q

N18. Are re-measurement contracts fixed price?

A

• No, the final price is not ascertained until completion.

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14
Q

N19. What are the benefits of using a Re-measurement contract?

A
  • Allows for a quick start.

* Easier to make changes to the design, as the changes are just re-measured.

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15
Q

N20. What is Design and Build?

A

• Where a single point of responsibility is created for both the design and construction of a project through the Contractor.

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16
Q

N21. What is the Design and Build process?

A
  • Typically, Client will appoint consultants to produce concept designs and create the Employers requirements.
  • Client will then give these Concept designs and the employers requirements to the contractor, who will price to design and build the job based off these designs and requirements.
  • Typically, the Clients design team will be novated to the Contractor, to help keep design continuity within the project.
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17
Q

N22. What is Novation?

A

• A process where the contractual benefits and burdens are transferred from one party to another.

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18
Q

N23. Does Novation mean the Contractor is responsible for the service provided to the Client by the design team prior to novation?

A

• No, unless they agree to be.

19
Q

N24. Can Design and Build be lump sum?

A
  • Yes, so long as the employers requirements are detailed and clear.
  • Ambiguity in these requirements will cause confusion and extra cost.
20
Q

N25. What takes precedence, the Employers Requirements or the Contractors Proposals?

A

• The Contractors proposals should be an indication of how the contractor intends to comply with the employers requirements; not and indication of how the contractor wishes to construct the project or allocate risk.

21
Q

N26. What is Management Contracting?

A

• A procurement route, where the works are broken down and contracted to ‘trade contractors’ who are contracted direct to the management contractor under works packages.

22
Q

N27. When would you use a Management Contracting Route?

A

• On complicated projects, where you could bring on a management contractor to help improve buildability.

23
Q

N28. When would you appoint a management contractor?

A

• As early as possible, to use their experience help influence design and buildability.

24
Q

N29. Does the Management Contractor carry out any construction work?

A

• No, they are either or a fee or get paid a percentage of the build cost, on top of the construction costs.

25
Q

N30. Who are the works package contracted to?

A
  • They are contracted to the Management Contractor.
  • However they will typically have some form of Warranty, usually a Collateral Warranty between each trade contractor and the Client/funder etc.
26
Q

N31. What services may the Management Contractor Provide?

A
  • Advising of brief development.
  • Advising on appointments.
  • Advising on feasibility, interfaces, buildability cost and programme.
  • Defining Key Performance Indicators.
  • Cost Control.
  • Tendering and Managing Works Packages/Contractors.
  • Managing Site.
27
Q

N32. Who undertakes the design under a Management Contracting Route?

A

• The Clients Consultant team.

28
Q

N33. What is the Management Contractor Liable for?

A
  • Only his own negligence in relation to his services.

* Will have to maintain Professional Indemnity Insurance.

29
Q

N34. Is management Contracting fixed price?

A

• No, it is Prime Cost Until each package is let, then the management fee is added on top.

30
Q

N35. What is Construction Management?

A

• Where the works are constructed by a number of ‘Trade Contractors’ contracted direct to the Client.

31
Q

N36. Can you describe the Construction Management process?

A
  • Client will employ consultants to produce designs. The Construction Manager is Employed as a fee earning professional to manage programme, coordinate design and facilitate collaboration.
  • The Construction Manager will arrange and advise on ‘Trade Contractors’ for the employer to appoint.
32
Q

N37. Who are the Trade Packages contracted to?

A

• They are contracted direct to the Client.

33
Q

N38. What is the Construction Manager Liable for?

A

• For his construction management services.

34
Q

N39. What services may the Construction Manager Provide?

A
  • Advising of brief development.
  • Advising on appointments.
  • Advising on feasibility, interfaces, buildability cost and programme.
  • Defining Key Performance Indicators.
  • Cost Control.
  • Tendering and Managing Works Packages/Contractors.
  • Managing Site.
35
Q

N40. Are Management Contracting or Construction Management fast or slow procurement routes?

A

• They are fast, as they allow the design and construction phases to overlap. i.e. you can start constructing the footing before the roof design has been finalised.

36
Q

N41. What is a measured term contract?

A

• Where a Client has a regular programme of typically minor/maintenance works, which they would like a single contractor to undertake.

37
Q

N42. What is a measured term appointment based on?

A

• A schedule of rates.

38
Q

N43. How does a measured term contract work?

A

• The Client will issue an instruction for the contractor to undertake some work. The price will be calculated based of the schedule of rates.

39
Q

N44. What is Serial Contracting?

A

• Where a Client and Contractor work together on multiple projects. I.e. They will tender for the first and negotiate the rest.

40
Q

N45. What is Partnering?

A

• A concept that aims at forming a relationship between two companies to improve the performance in the delivery of a project.

41
Q

N46. What contracts do you know of that are Partnering Orientated?

A
  • The NEC Suite of Contracts.

* JCT Constructing Excellence Contract.

42
Q

N47. What is a reimbursable contract (Cost Plus)?

A

• Where the contractor is reimbursed for the costs they incur, plus a fee.

43
Q

N48. When would you use a Reimbursable Contract?

A

• Where the scope of works cannot be defined or the risk is too high for works to be undertaken on price.

44
Q

N49. Who bares the risk with Cost Reimbursable?

A

• The Client as there is no contract sum.

Test (29 decks)

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