Procurement Flashcards
What is traditional procurement?
- Employer appoints consultants to design the project and contractors are then invited to submit there tender
- JCT standard contract
What is the benefits of traditional procurement?
- more cost certainty than CM and MC
- Tenders easier to analyse
- Employer retains control of design
What are the negatives of traditional procurement?
- Slow start on site
- no contractor build ability input
- design risk for employer
What is procurement?
Process of obtaining a good or service
What is tendering?
Process of inviting contractors to bid for work on a project.
What is single stage tendering?
- Usually takes place at stage 4 of design
- contractors will bid on detailed design information (near enough complete)
What is two stage tendering?
1st stage contractors bid on limited design information - bid includes prelims, OH&P fee and team. Preferred contractor is taken on using a PCSA
2nd stage the contractor negotiates to agree final price, programme and contract conditions
What is negotiated tender?
- Similar to single stage tender but with 1 contractor, where all details are negotiated
What is CM procurement?
Employer places direct contracts with each trade contractor rather than a single main contractor
What is MC procurement?
Employer appoints a managing contractor to manage the entire building process and place direct links with trade contractors
What is D&B procurement?
- Design and Build
- the contractor is in control of both design and construction of the building
What do you do if you find an error in a tenderers submission?
JCT tendering practice note defines 2 alternatives
- Alternative 1 includes notifying the contractor and they can either accept the bid or retract the submission
- Alternative 2 includes either confirming the offer or have the opportunity to change the error
What is a PQQ?
Pre Qualification Questionnaire - information required by tenderers to see who is applicable and desirable for a tender
What information is required from a PQQ?
- Financial records
- Health and Safety records
- insurances
- relevant experience
- company details
- QA policy
- current capacity
What is a PTE?
Pre tender estimate - estimate of a package before tenders are received
What do you do if a tender is issued late?
public - still acknowledge
Private - let client know and see if they still want to acknowledge tender
What are the benefits of D&B?
- early SOS is possible
- contractor build ability input
- more cost certainty than traditional
What’s are the cons of D&B?
- complex to compare returns
- employer changes are expensive
- contractor risk premiums
What are the pros of CM?
- Quick start on site
- buildability input from contractor
- changes in design has no premiums
What are the cons of CM?
- no cost certainty until last trade contract is placed
- needs an experienced employer
What are the pros of MC?
- Fast SOS
- buildability input from contractor
- single point of responsibility
What are the cons of MC?
- no cost certainty
- needs an experienced employer
Why do we do a PTE?
- final check before returns
- can be used to compare tender returns
What is included in the tender documents?
- ITT
- drawings and spec
- pricing document
- bona fide document
- contract particulars
What is the instructions to tender?
What is a bona fide tender?
Submitting a tender in good faith with good intentions
What is a tender addendum?
Change to project tender requirements that may need an allowance
What were the tender addendums on your relevant project?
Soft Strip works NZH
- asbestos survey showing amount of asbestos
- methodology of removing heritage works
What is a tender opening and what is on the form?
- Official Meeting with the client and relevant project consultants on the tenders received for work packages
- Form includes: Date of meetings, attendees, tenders and any key information such as cost and programme
What is included in a tender return?
What is a tender report?
Why were there differences to the budget and tender returns for soft strip?
- Unknown amount of Asbestos lead to high prov sum returns
- CAT B removal not in the budget
What’s included in the recommendation report?
- exec summary
- ITT and tender info issued
- tenders received summary
- proposed contract sum
- option costs
- recommendation
What was included in the procurement report?
- Project information
- procurement options available
- recommend option and reason for rejection
- next steps (choosing contractors etc)
What procurement options were available for NZH?
- Design and Build
- CM
Why did you choose two stage D&B for NZH?
Client needed cost certainty for a Board Approval meeting, this disregarded CM and left two stage D&B
What is a PQQ scoring matrix?
Pre-Qualification Questionnaire scoring matrix allowed client and design members to score each contractor on different elements on the return, in turn showing who was best placed for the project
