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Procurement and Tendering > Procurement > Flashcards

Procurement Flashcards

LEVEL 1

1
Q

What are the main types of procurement?

A
  1. Traditional
  2. Design and Build
  3. Management Contracting
  4. Construction Management
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2
Q

Can you tell me the process of a Traditional procurement route?

A
  1. Client appoints the design Team who fully designs the project
  2. Design is tendered
  3. Contractor is selected
  4. Selected Contractor signs contract and constructs
    (DTC) (Sequential)
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3
Q

Can you tell me the process of a Design & Build procurement route?

A
  1. Client may choose to appoint a design team.
  2. Employers requirements are prepared on behalf of the Employer (Level of information depends of form of D&B)
  3. Design is Tendered
  4. Tendering contractors submit their CPs and CSA
    5.Contractor is selected. The contractor will complete detailed design.

D+T –> C+DSP (Tandem)

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4
Q

Under D&B, what is novation? Who is responsible for the design?

A

Novation is a process where the contractual rights and obligations are passed from one party to another. E.g. on D&B projects the design team are appointed by a client to carry out the initial design. When the contract is awarded, The contractor can choose to novate the design team to complete the design. in this case, the Client will be responsible for design pre novation and the contractor will be responsible post novation

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5
Q

Under D&B, what extent of design is included in the ER?

A

Depending on the form of D&B
As much as the client wants to control
1. Basic parameters
2.Basic design sometimes up to stage 2
3. Full design and dump the risk on the contractor

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6
Q

Can you tell me about the 3 different variants of D&B?

A
  1. Pure D&B
  2. “Half way house”
  3. “Design & Dump”
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7
Q

Do you know what a turnkey contract is?

A

Turnkey is where a single contractor is appointed to design and fully equip a project and only hands over when complete ‘ turn the key’

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8
Q

Can you tell me the process of Management Contracting route?

A
  1. Appoint design team
  2. Design team prepare initial design
    3.Tendering MC tender their preliminaries and fees
    Signs contract
  3. Works split into packages by MC
  4. Each package designed by design team,
    tendered by MC and constructed by package contractors
    contracted to MC on ongoing basis
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9
Q

Can you tell me about the process of Construction Management?

A
  1. Appoint design team inc CM
  2. No initial design required as CM is a consultant
  3. Works split into packages by CM
  4. Each package designed by design team,
    tendered by the CM,
    and constructed by subcontractors (package contractors) who are in direct contract with the Client directly on an on going basis.
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10
Q

Who enters into a contract with the work package subcontractors in relation to MC and CM
procurement routes?

A

MC: Management Contractor enters into a contract with the WP contractors
CM: Client enters into contract directly with WP Contractors

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11
Q

What’s the difference between MC & CM

A

Management Contracting
- The MC is in contract with the WP Contractors
- The MC is appointed based on Prelims and Fees
Construction Management
- The Client is in Contract Directly with the WP contractors

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12
Q

What’s the difference between Traditional and Design & Build

A

Traditional
- is a sequential process
- full Design is complete before contract
Design and Build
- Processes are / can be completed in tandem
- Only some Design is completed up front. Design is then progressed in the Tender period (CPs) and Construction (DSP)
Time /Cost/ Quality

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13
Q

What factors would you consider when selecting the most appropriate procurement strategy

A

Time/ Cost/ Quality/ Risk

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14
Q

What variants of time would you consider when selecting the most appropriate procurement strategy

A

“Length of time (DTC)
Certainty of time (Construction period / Contract signed)
Early Start on Site”

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15
Q

“What variants of cost would you consider when selecting the most appropriate procurement
strategy”

A

“Competive pricing - Risk Pricing / whole process full competition
Certainty of cost -“

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16
Q

What variants of quality would you consider when selecting the most appropriate procurement strategy

A

“Certainty of quality
Control of Design
Buildability”

17
Q

“In relation to time, cost and quality, what are the advantages and disadvantages of a traditional
procurement route”

A

Overall time: Traditional Procurement, is the longest form of procurement so as a process, due to its sequential nature, if the project is time critical, it may not be a suitable procurement route. However, there are other time benefits.
Certainty of time: Yes, Certainty of time is gained at tender stage/ signing of the contract.
Early start: Due to the sequential nature of Traditional Procurement, the Project is fully designed and tendered before construction can commence so there is no benefit of an early start on site.
Cost competitive: Traditional procurement enables Tendering to be in full competition due to the design being complete so no risk pricing by the Contractor.
Certainty of cost: Certainty of cost is gained at Tender Stage/ Signing of the Contract as the cost is based on a fully completed design.
Quality input by client: The Quality of the Works should be high due to Client Led Design
Quality certainty: Certainty of quality is gained at tender stage due to being tendered on completed design
Buildability input: Due to the Design being complete before Tender Stage, there will be no Contractor led input into buildability.

Overall time: Disadvantage due to each stage being completed sequentially, with no overlapping D/T/C. Traditional Procurement route is generally the longest from of procurement and may not be appropriate if a client has time constraints.
Certainty of time: No disadvantage as certainty of time is gained at tender stage / signing of the contract.
Early start: Due to the sequential nature of Traditional Procurement, The Project is fully Designed and Tendered before construction can commence.
Cost competitive: No Disadvantage- Traditional procurement enables Tendering to be in full competition due to the design being complete so no risk pricing by the Contractor.
Certainty of cost: No Disadvantage - Certainty of cost is gained at Tender Stage/ Signing of the Contract as the cost is based on a fully completed design.
Quality input by client: No Disadvantage - The Quality of the Works should be high due to Client Led Design
Quality certainty: No Disadvantage - Certainty of quality is gained at tender stage due to being tendered on completed design
Buildability input: Due to the design being fully complete before tendering, there is no Contactor Led in put on Design / Buildability”

18
Q

In relation to time, cost and quality, what are the advantages and disadvantages of a D&B procurement route

A

“Advantages
Overall time: Moderate in sense of time (Depends on variant of D&B selected) There is an overlap in activities. Tendering Contractors complete both design (CP) and tender and then the detailed design (DSP) and conduction simultaneously (D+T and then D+C) slightly quicker than Traditional but dependent on variant selected
Certainty of time: Certainty of time is gained at tender stage / signing of the contract.
Early start: Yes, time saved due to tendering contractors designing (CP) and tendering the works simultaneously.
Cost competitive: Tendering will be in full competition but full design will not be complete and therefore risk pricing from Contractors can be expected.
Certainty of cost: Certainty of cost is gained at tender stage
Quality input by client: Certainty of quality is gained after the detailed design post contract DSP. So no advantage.
Quality certainty: Only ER’s are client led (detail of which is dependent on the variant chosen) rest of the design is Contractor Led (CP and DSP)
Buildability input: Due to the ER’s being complete before Tender Stage, there will be no Contractor led input into buildability.

Disadvantages
Overall time: Moderate in sense of time (Depends on variant of D&B selected) There is an overlap in activities. Tendering Contractors complete both design (CP) and tender and then the detailed design (DSP) and construction simultaneously (D+T and then D+C) slightly quicker than Traditional but dependent on variant selected.
Certainty of time: No disadvantage as certainty of time is gained at tender stage / signing of the contract.
Early start: Time saved due to tendering contractors designing (CP) and tendering the works simultaneously. Although, compared to other routes, early start on site is much later.
Cost competitive: Tendering will be in full competition but full design will not be complete and therefore risk pricing from Contractors can be expected.
Certainty of cost: No Disadvantage – Certainty of cost is gained at tender stage
Quality input by client: Only ER’s are client Led, CPs and DSP are contractor led. Client Quality input is depended on the information / level of detail in the ER’s
Quality certainty: Certainty of quality is gained after the detail design post contract (DSP)
Buildability input: No Contractor led input”

19
Q

What procurement route would give you the earliest start on site?

A

Construction Management

20
Q

What procurement route would give you the earliest completion?

A

Construction Management

21
Q

What procurement route would give you the earliest certainty of time?

A

Traditional

22
Q

What procurement route would give you the most competitive price?

A

Traditional

23
Q

What procurement route would give you the earliest certainty of cost?

A

Traditional

24
Q

What procurement route would give you certainty of quality?

A

Traditional

25
Q

What procurement routes would give you control of design?

A

Traditional / D&B

26
Q

What procurement routes would give you buildability advice?

A

Management Construction & Construction Management

Procurement and Tendering (4 decks)

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