Procurement and Tendering

Question 1

When have you advised on a procurement route?

Answer 1

On XX project I advised my client that a design and build procurement route would be a suitable option. This was due to the client wanting a fast start on site and the design being incomplete. Design and build would allow for overlap in the design and construction as well as contractor input into the design increasing buildability.

Question 2

What are the benefits of two stage tendering?

Answer 2

• Contractor input into the design increasing buildability.
• It allows the tendering and design process to be overlapped.
• Less laborious tender at the first stage which could attract more competition.

Question 3

What are the pros and cons of a negotiated tender?

Answer 3

• Primary advantage is it saves time (quicker process)
• High requirement for QS to demonstrate value
• Risk of value due to lack of competition
• Not allowed in public contracts over certain value.

Question 4

Why do most of your projects utilise a traditional procurement route?

Answer 4

• Cost certainty
• Control over the design
• Least risk for my client
• We use an embedded design team so rarely a requirement for contractors design.

Question 5

How did you ensure you complied with the Public Contracts Regulations 2015?

Answer 5

• Referred to Section 72 (1(B)).
• The additional scope of works was an extension to the existing contract.
• The value of the works did not exceed the FTS thresholds.
• The value of the extension of the existing contract did not exceed 50% of the original contract sum.
• Seperate contractor would disrupt works and duplicate costs for my client.

Question 6

What is the find a tender service?

Answer 6

• A tendering portal for ‘high value’ UK projects that exceed defined thresholds, in accordance with the Public Contract Regulations 2015.
• Allowing open market competition for tenders. This replaces the OJEU due to the UK leaving the EU.
• New FTS thresholds are inclusive of VAT.
• Governed by the World Trade Organisations Government Procurement Agreement

Question 7

What are the find a tender service thresholds?

Answer 7

Good and Services = £213,477 (£213k)

Works = £5,336,937 (£5.3million)

Question 8

What is contracts finder?

Answer 8

Used for open competition public procurement of lower value contracts worth £10k - £118k.

Question 9

What is a government procurement policy note?

Answer 9

Actual policies that highlight the new changes to public procurement. Main point was to introduce FTS in place of OJEU.

Question 10

What timescales would you expect of an open tender process under the Public Contracts Regs?

Answer 10

35 day tender procedure (30 for E-Tenders), this is the period tenderers would have as a minimum to price the works. There would then be assessment, standstill, and award procedures.

Question 11

What have you included in tender documentation you have compiled?

Answer 11

• Invitation to tender
• Form of tender
• Contract conditions
• Instructions to tenderers
• Pre-construction information
• Project information (prelims, scope requirements)
• Design information
• Pricing document
• Assessment Criteria

Question 12

How would you carry out a normalisation process?

Answer 12

Compare elements of a contractor’s price against a set ‘normal/level’, either against; the pre tender estimate, the average of tenders or the highest tender.

Any apparent disparity should be brought to the attention of the contractor so they can be given the chance to confirm or explain it.

The preliminaries must also be normalised and ensured that the contractors have priced these in the same way, ideally in accordance with the structure in NRM2 if not dictated by the clients tender documents.

Question 13

How would you deal with a tender query received?

Answer 13

I would log the query on the tender query log, provide an appropriate response (or gain one from the member of my team most appropriate to advise), and then circulate the updated tender log to all tenderers.

Question 14

What would you expect to see in a tender report?

Answer 14

Provides an audit trail for the selection process. Includes:

• Executive Summary
• Background and Scope of contract.
• Any Pre Qualification Criteria
• Tender Evaluation Criteria
• Record of submitted tenders
• Any rejected tender with reasons
• A recommendation (M.E.A.T)
• Comparison against the PTE

Question 15

What is the Green Paper - Transforming Public Procurement?

Answer 15

Proposal to combine the existing procurement regimes into a single set of regulations.
Government goal to speed up and simplify the procurement process.
New principles for procurement; value for money, public good, transparency, integrity, fair treatment, non-discrimination.

Question 16

What is management contracting?

Answer 16

Procurement route where a management contractor is procured by the client and they then procure subsequent works contractors to deliver the works. Benefit as client only has one contract to manage.

Question 17

What is construction management procurement?

Answer 17

Where a construction manager is procured by the client as a consultant to manage the works. The client also takes out direct contracts with all works contractors delivering the works. Benefit is there could be a reduction in fee compared to a main contractor.