Procurement and tendering Flashcards
Level 3
Project Normanton - What did your tender recommendation include & why?
- I gave my recommendation
- The preffered contractor provide a comprehensive tender
- Offered best value
- I advised the preferred contractor be invited to a post-tender interview
- To resolve remaining clarifications and;
- discuss VE proposals
Level 3
What were the risks of retendering?
- No guarantees re-tendering the works would result in lower bids
- Potentially ruining the relationship with the contractor
Level 3
Why did you give the competing contractor the contractors design proposal?
- The tenderers were encouraged to provide VE proposals
- And were asked if they had alternate ways of executing the works;
- and if so, they were instructed to price
Level 3
On your Marylebone project, why did you advise Traditional procurement route and discount the others?
- Client was inexperienced, traditional risk allocation was best suited
- Client requirement was cost, programme certainty and best value
- Cost and programme certainty from the outset
- Competitive route, tests the market & achieve value
Level 2
You’ve setup and evaluated many tenders, please expand on the process.
- Compiled a list of appropriate contractors
- PQQ process
- Assess a suitable tender period
- Compiled & issued tender documents
- Respond to queries
- Check bids upon return for errors and compliance
- Opened tenders and collected raw data
- Conducted a elemental comparison
- Raised various queries ascertaining their tender
- Scored the tenders on cost/quality
- Tender report
- Notify tenderers
Level 2
Whats typically included within your tender documents?
Depends on contract, typically;
- Pricing schedules
- Design information
- Preliminaries/ Works Informaton (NEC)
- Site Information
- Contract conditions/ Contract data part 1
- Form of tender
- Instruction to tenderers
- Employers requirements
- Any information deemed helpful
Level 3
Marylebone - Why was Construction Management or Management contracting discounted?
- Price certainty not achieved from the outset
- Requires experienced & proactive employer
- Increase liability to the Employer
Level 1
What are the disadvantages of traditional procurement.
- Fractured approach with little collaboration
- Time taken to prepare tender
- Resource required to price
- Dual point of contact
Level 1
What are the advantages of traditional procurement.
- Retains control of design
- Design is largely finalised before issue to tender
- All tenders are based on identical information
- Reasonable price & programme certainty
Level 1
What risks did you advised your Client of regarding the two-stage tender?
- Contractor has less incentive to price the second stage competitively, negotiations difficult
- Additional contractors pre-construction fee
- Cost certainty not determined from the outset, exposed to fluctuations
- Negotiations could fail
What are the advantages and disadvantages of single sourcing?
Advantages -
* You’re familiar with the contractor, so you know;
- their work is of appropriate standard
- adhere to a set of rates
- shortens tender durations
Disadvantage -
* Loss of competitive edge
* If contractor increases rates, value has to be re-established
Level 2
How were the quantities & rates incorporated within the Activity Schedule (AS) under NEC Option A?
- The AS is prepared & priced by the tenderers
- The tenderers decide how to break up the worsk into activities, unless instructed otherwise;
- Employer can provide instructions on how to prepare the AS
- Employer may specify principle activities which the contractor is to include
- or the Employer can provide quantities and issue to the tenderers, which reduces time and cost
Level 1
What is a Pre-Qualification Questionaire (PQQ) and its purpose?
- Sets out a list of questions for potential tenderers to answer
- PQQ helps reduce the number of potential tenderers to those genuinely appropriate for the project
Level 1
What is included within a PQQ?
- Corporate particulars
- Financial standing
- Technical capability
- Management and personnel
- Insurances
- Sub-contractors and supply chain
- Good standing, material litigation
Level 2
How did you compile your list of selected tenderers?
- Word of mouth
- Previous experience
- Contractor presentations/ meetings
