Procurement and tendering Flashcards
1
Q
What are the key differences between traditional and design and build?
A
- Quality: In traditional procurement – full design is completed prior to tender which gives the Client full control over design and changes. In Design and Build, the main contractor is appointed to design and construct the works based on the employer’s requirements.
- Responsibilities: In Design and Build, single point of responsibility lay in with the Contractor; in Traditional approach Clients need to appointed Design Team and Contactor separately
- Changes: D&B request for design changes will have cost/time implication, with traditional procurement design changes can be easily implemented.
- Time: Traditional - require full detailed pack pre tender therefore overall procurement may take longer;
- Cost: Traditional - there may be lump sum cost benefits unless are multiple changes made. D&B - Has good price certainty
2
Q
How does 2-stage procurement work?
A
- The process involves first-stage tender enquiry documentation being issued to bidding contractors at RIBA Stage 2 or 3.
- Rather than requesting a bid for constructing the entire project (which is still in the process of being designed), the preferred contractor is chosen on the basis of the quality of their bid, the quality of their team and their preliminaries price and overhead and profits allowances.
- The preferred contractor then joins the design team on a consultancy basis using a pre-construction services agreement (PCSA). The preferred contractor then works with the professional team to complete the design, usually to RIBA Stage 4, before presenting a bid for the works at this stage.
3
Q
How does Construction Management differ from Management Contracting?
A
- Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging (and the risks of interfaces).
- Construction management is a procurement route in which the works are constructed by a number of different trade contractors. These trade contractors are contracted to the client but managed by a construction manager (CM).
- Construction management differs from management contracting, in that management contractors place contracts with works contractors (equivalent to trade contractors in construction management) direct, whereas construction managers only manage the trade contracts, the contracts are placed by the client.
4
Q
What is Construction Management?
A
- Type of procurment when the employer places a direct contract with each of the trade contractors and utilises the expertise of a construction managers who acts as a consultant to coordinate the contracts.
- The trade contactors carry out the work and the construction managers supervises the construction process and coordinates the design team.
- The CM has no contractual links with the trade contractors or members of the design team. Their role includes preparation of the programme, determining requirements for site facilities, breaking down the project into suitable works packages, obtaining and evaluating tenders, co-ordinating and supervising the works.
5
Q
How do you ascertain the suitability of potential tendering parties?
A
- I would send out a pre-qualification questionnaire (PQQ, sometimes referred to as a supplier assessment questionnaire) sets out a series of questions for potential tenderers to answer regarding their level of experience, capacity and financial standing
- Alternatively, when using a framework the suppliers list will be pre-seterminated
6
Q
How does procurement by partnering generally work?
A
- Partnering (sometimes referred to as alliancing, for example, in the rail sector) is a broad term used to describe a collaborative management approach that encourages openness and trust between parties to a contract.
- Where a partnering relationship is for a specific project, it is known as ‘project partnering’. Where it is a multi-project relationship it is known as ‘strategic partnering’.
- An example of partnering in action is a steelwork subcontractor requiring information to complete part of the design. Instead of this request being passed up through every level of the supply chain to the employer’s structural engineer, in a partnering arrangement where the whole supply chain are involved there could be a direct line of communication between the steelwork subcontractor and the structural engineer.
- It should be noted that partnering does not replace the need for a contract to define the legal basis of the relationship between the parties.
7
Q
How does partnering differ to a framework arrangement?
A
- A framework is an agreement with suppliers to establish terms governing contracts that may be awarded during the life of the agreement. In other words, it is a general term for agreements that set out terms and conditions for making specific purchases (call-offs).
- Note that a framework covers the provision of a generic group of goods, works or services (or a combination), for example:
- Goods – office furniture
- Services – design consultancy
- Works – construction of schools.
- Where parntering is s a broad term used to describe a collaborative management approach that encourages openness and trust between parties to a contract.
8
Q
What would you say is the most common form of procurement at the moment? Why do you think that is the case?
A
- D&B and Traditional
- Design and Build - single source of responsibility, cost certainty, the benefit of contractor’s involvement and experience
- Traditional - clear stages, control over quality and design, variations and changes relatively easy to manage
9
Q
On the Dft project, how did you ensure the correct contractors were being selected for tendering the projects?
A
by choosing appropriate framework agreement and then creating the tendering process that satisfies the Client’s requirements with regards to cost, time and quality.
10
Q
What was included within your tender documents? (GMH)
A
1. Stage 1: Qualitative Assessment
- Written responses describing tenderers approach to Health and Safety, Quality management, Diversity and Inclusion, BIM Environmental and Sustainability, Risk Management
- CV of the key personal
- Preliminaries cap %
- Overhead and profit cap %
2. Stage 2
- Design information (drawing and specifications)
- Preliminaries
- Pricing document
- Logistics plan
- Draft contract
- BIM Model
- Fire Strategy
- Surveys Report
11
Q
What are included in Preliminaries section of a tender set of documents?
A
- Project Particulars
- the site/exisiting building (access, parking, site visit, security requirments)
- description of the works
- pricing document requirements & tender methods
- definitions and interpreations
- progamme
- A36 FACILITIES/ TEMPORARY WORK/ SERVICES
- A37 OPERATION/ MAINTENANCE OF THE FINISHED WORKS CONTRACTOR’S GENERAL COST ITEMS: MANAGEMENT AND STAFF
- A40 CONTRACTOR’S GENERAL COST ITEMS: SITE ACCOMMODATION
- A41 CONTRACTOR’S GENERAL COST ITEMS: SERVICES AND FACILITIES
- A42 CONTRACTOR’S GENERAL COST ITEMS: MECHANICAL PLANT
- A43 CONTRACTOR’S GENERAL COST ITEMS: TEMPORARY WORKS
- A50 WORK/ PRODUCTS BY/ ON BEHALF OF THE EMPLOYER
- A53 WORK BY STATUTORY AUTHORITIES/ UNDERTAKERS
- A54 PROVISIONAL WORK/ ITEMS
- A55 DAYWORKS
- A56 ADVANCE PROCUREMENT
Based on NBS Document - The purpose of preliminaries is to describe the works as a whole, and to specify general conditions and requirements for their execution, including such things as subcontracting, approvals, testing and completion.
12
Q
What type of pricing document did you include and why was this deemed most suitable?
A
a
13
Q
Talk me through the tender return process.
A
a
14
Q
What type of queries were you responding to after tender return?
A
a
15
Q
Who was involved in your post tender meetings and what are the final issues you refer to?
A
a
