Procurement and Tendering Flashcards
Once you have a submitted tender what would you examine in order to make sure its complaint with the invitation to tender?
- Arithmetic errors
- Pricing errors
- Pricing methods (front loading)
- Check the form of tender is complete and signed
- Resolve any qualifications
- Check programme
What is the difference between tendering and procurement?
- Procurement is the overall act of obtaining goods and services on a construction project
- Includes deciding on the strategy on how those goods are to be acquired by reviewing the clients requirements and their attitude to risk
- Tendering is an important phase in the procurement strategy, it revolves around
- The biding processes
- Obtain a price
- How contractor is appointed
- Procurement route might not affect the tendering strategy as each tending strategy can be used within most procurement strategies.
What is a framework?
- A framework agreement it is an umbrella agreement that a client might have with multiple selected suppliers that he or she expects to be letting out work for multiple years. (Usually 2-10)
What is Early Contractor Involvement?
- Typically, early contractor involvement might be enabled by a two-stage tender process, used in the first stage to procure contractor involvement in the design process, and in the second stage to procure construction of the works.
If the project is delayed what would you check for the tender?
- How long the price is valid for
What happens if there are too many withdrawals?
- Depending on the client’s process for tender withdrawls
- One option is cancelling the tender and starting the process again with a new selection of tenderers
- If agreed new tenders can be introduced then all tenderers
What is single stage tender?
- Number of suppliers are sent identical documentation
- Predetermined amount of time to submit their tenders.
- Analysed on cost, quality
- Advantage = competitive,
- Disadvantage =higher risk included in prices
What is design and build procurement route?
- A single contractor assumes the risk and responsibility for designing and building a project, usually in return for a fixed-price lump sum.
- Client employs a design team to do a preliminary design and prepare the project brief and other tender documents such as ‘employers requirements’ outlining the key objectives for the project and significant criteria for a successful outcome
What ground would you consider to re-tender?
- Too many withdrawals
- The design changed and it believed that better prices could be achieved
- Tenders not fit criteria
- It is believed that a better value for money can be achieved
How does risk indicate a procurement route?
Client wanting to take on low risk they might undertake a traditional procurement route where a contractor is taking on the risk on completing the works according to the design.
Evaluate what the client attitude on risk on programme, cost and quality.
How did you carry out the post-tender reviews?
- Structure agreed in advance
- Team in attendance agreed in advance
- Ask in-depth questions that cant be asked by email.
- It is a chance to understand the tenderers proposals
How does time indicate a procurement route?
- Financial benefits of undertaking the project in the first place would be based on programme constraints.
- The return on investment will be fulfilled at full if the project is delivered on time.
Risk of water monitoring?
- Slips trips and falls
- Interaction with public
- Weather – severe weather could cause trips in the river
What is included within the tender analysis report?
- List of tenderers received
- Initial tender return totals
- Any qualifications identifies
- Post-tender adjustments
- Revised tender sum
- Comparison of tender returns
- Comparison with pre-tender estimate
- Recommendation
How could you reduce the risk of withdrawals?
- Accurate tender information.
- Ensure it is long enough.
- Check the subcontractor if they have time capacity to complete the tender.
- Mid tender reviews.
How is the tender methodology for disk exchange carried out and what are the benefits and constraints?
- When you transfer information on a disk
Advantages
- Familiarity
- Relatively secure
- Version and inherit control
Disadvantages
- Slow exchange of data based upon physical transfer such as the postal service
- Relatively expensive – reissuing amended documents
Can be suitable for any project but administration cost will increase as they will have to send out disks continuedly
What is management contracting?
- Client appoints a management contractor to manage whole of construction process.
- Management contractor appoints works contractors. Contractor has a direct contractual link with all the works contractors and is responsible for all the construction works.
- 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).
- Client appoints a design team
- Contractor lets out work to work packages on competitive tender.
How would you deal if a subcontractor is seem to be front loading?
- Raise it with them to understand if its actual front loading
- If the confirm it could a reason for disqualification
- If they refuse to remove it could be a reason for disqualification
How does project function indicate a procurement route?
• If a client needs a building that serves a specific purpose and it needs to be durable such as a hospital he/she might prioritize project function over cost or time.
What happens if tender prices are higher than the pre-tender estimate?
- You would understand why by doing normalization
- Might be because of market conditions such as Brexit and covid-19
