Procurement and Tendering Flashcards
• What is procurement.
The overall act of obtaining goods and services
• Please provide different procurement routes you are aware of
Traditional procurement, design and build and management contracting
• What is construction management?
When the client appoints all the subcontractors
• What is management contracting
the client appoints a management contractor to appoint all the subcontractors and oversee the project – usually paid a fee % of the overall construction costs
• What is traditional procurement
The contractor prices the job on a fully developed scheme at tender
• When would you advise you client to use a construction management, or management contracting procurement route
When the client is experienced in construction and has suitable resources to manage the project. When the client wants flexibility to make changes throughout the design with minimal impact on time and cost and can achieve an early start on site
• Please explain when you have advised your client on a suitable procurement route and what factors did you consider
I advised my client during my New City Road project to go down the design and build route as they had no appetite for risk. I recommended this route as I knew my client has no interest in retaining control of the design as they had many of the same projects on at the same time and this suited my client to get on site early.
• What is a procurement triangle
Time cost and quality
• What is single stage tendering?
Information is issued to contractors and they are all given the chance to bid for a project on this information. Usually done at RIBA stage 4
• What is a two stage tendering?
The client provides an outline and then the contractor joins design team on a consultancy basis in thee first stage and then the second stage the contractor enters into a contract negotiation with the client to agree final price and programme once the design has progressed.
• What are the pros and cons to single and two stage tendering
Single stage you get a fixed price cost and get a more competitive pricing – no buildability input from contractor, the price is only as good as the design information. 2 stage - get input from contractor, helps to identify risks and gives the opp to VE. Additional costs with the contractor pre construction, potential for the negotiations to fail
• Given the current market in terms of inflation. What procurement route what be best suited to your client wanting to transfer risk?
D&B
• What is OJUE?
The portal that houses public sector contracts over a certain amount of money in the EU
• What has taken over OJUE post Brexit?
Find a tender service system following Brexit this now houses public sector contracts for the UK
• What is the level of cost the project has to be to use FTS?
Usually above £118,000
