Procurement and Tendering

Question 1

What is the difference between single stage and two stage forms of procurement?

Answer 1

Traditionally, tendering involves just one stage, in which a tenderer is selected and appointed to carry out all of the works required. In Two-stage tendering, the tenderer is initially appointed only to carry out some of the works required. They are generally then appointed to carry out the rest of the works in a second stage.

Question 2

What are the different types of procurement?

Answer 2

Traditional
D&B
Management contracting
Construction management

Question 3

For the ECFRS floor refurbishment, what did the tender documents include?

Answer 3

ITT, form of tender, schedule of works and appendices, PCI and appendices

Question 4

For the ECFRS Floor refurbishment, how do you decide how many contractors to invite to tender?

Answer 4

Four contractors to ensure competitive price achieved without flooding the tender process with too many contractors which could end with an unachievable price being obtained.

Question 5

With regards to the ECFRS floor refurbishment, what was the tender route you took for this project?

Answer 5

Selective single stage tendering to four contractors.

Allows competition, simpler analysis of tenders, contractors that are trusted, less chance of misjudged tenders, fixed price achieved, design fully completed before tender

Question 6

For the ECFRS floor refurbishment, why was the tender non-compliant?

Answer 6

It was not in accordance with the invitation to tender, a priced schedule of works was not provided.

Question 7

With regards to the ECFRS floor refurbishment, how do you analyse the tenders using the matrix?

Answer 7

As set out in invitation to tender, 60% cost competitiveness and 40% quality, i scored each tender accordingly.

Question 8

For the ECFRS floor refurbishment, what document would you review if you required guidance for tendering?

Answer 8

JCT Tendering Practice Note 2017
RICS Tendering Strategies Guidance Note
RICS E-Tendering Guidance Note

Question 9

How do you determine a genuine error? Give an example?

Answer 9

An error in the tender deemed to be made sincerely.

Example is a single arithmetical error in adding, compared to a not genuine error of not pricing numerous items as could then have time to find out other tender sum.

Question 10

For Appleford Court, how did you deal with any tender clarifications that arose?

Answer 10

-Queried whether contractors had clarifications
- Compiled all queries into one list and removed contractor details
- Liaised with consultants
- Provided answers and issued list to each contractor so they are tendering off the same basis

Question 11

With regards to Appleford Court, what was included in your tender report?

Answer 11

Introduction
Tender returns
Tender analysis
Consideration of tenders
Comparison with budget and PTE
Recommendation

Question 12

What areas to the tender matrix consider?

Answer 12

Cost - cheapest and arithmetical errors.
Quality - H&S, quality control, previous experience, company structure.

Question 13

On your fire service floor refurbishment project, why did you end up recommending the contractor in your tender report?

Answer 13

Scored highest on scoring matrix.
Highest in terms of cost effectiveness, also scored relatively well for qualitative questions.
Provided reassurance for during tender queries that their overheads and profit were included within their costs.

Question 14

What is the difference between single stage and two stage tender?

Answer 14

The main aim of the single-stage approach is to generate a firm price at the outset through a competitive tendering process, where-as the two-stage approach embraces a collaborative open book approach throughout the project.

Question 15

What are the latest OJEU figures?

Answer 15

€5.3 million for central government and other contracting authorities works contracts.

€1 million for small lots works contract

Question 16

What are the latest GPA figure thresholds?

Answer 16

For construction services the value is circa £5,000,000
For goods and services the value is £130,000, £200,000 or £400,000 depending on whether its a government entity.

Question 17

What is the GPA? When is the OJEU still applicable?

Answer 17

Government Procurement Agreement. Advertising tenders publicly if over a certain threshold.

Applicable to new contracts post 1 january 2021.

Question 18

How were the four contractors selected for the ECFRS floor refurbishment project?

Answer 18

• Tender Enquiry Letter to client’s preferred list
• Four contractors responded
• Alternatively could have issued pre qualification questionnaire

Question 19

For the fire service floor refurbishment project, were the quality responses scored in any particular way?

Answer 19

Yes 40% scoring for quality and split up so percentages for each quality question.

Scores were provided for each quality question, based on detail and context as per chart included in ITT.

Question 20

In regards to the Appleford Court project, what is the purpose of issuing tender query lists?

Answer 20

To ensure the tender is accurate and errors are identified so disputes at a later date can be minimised.

Question 21

In regards to the Appleford Court project, what is the purpose of issuing a tender clarifications list?

Answer 21

To clarify anything which isnt clear prior to the return of tenders and ensures an accurate and reflective price is obtained from each contractor.

Question 22

What is the difference between a tender query list and a tender clarifications list?

Answer 22

A tender clarifications list is issued during tender stage to clarify any works specified, whereas a tender query list is issued once the tenders have been returned and analysed to clarify any potential errors.

Question 23

On the fire service floor refurbishment project, why did you have to exclude a contractor from the process?

Answer 23

• Did not submit priced SoW
• Only submitted a rate for a portion of the works
• In accordance with ITT excluded as non-compliant tender

Question 24

What was the scoring criteria for the tenders for the fire service floor refurbishment project?

Answer 24

Cost: competitiveness and arithmatical errors
Quality: company structure, quality control, H&S and previous experience

Question 25

For the Appleford Court project, why did you end up recommending the contractor in the tender report? What factors were considered?

Answer 25

They were the highest as per the scoring matrix criteria.

Scored well on cost and qualitative questions and had previous experience working with client.

Question 26

What is the difference between procurement and tendering?

Answer 26

Procurement - The overall processes that take place prior to construction of a building. Involves design, tender and appointment.

Tendering - Specifically the process of selecting a contractor

Question 27

Identify the different types of procurement?

Answer 27

Traditional, D&B, Management Contracting, Construction Management.

Question 28

Identify the different types of tender?

Answer 28

Open, selective, PFI, negotiated, single stage, two stage

Question 29

What are the main differences between traditional and design and build procurement?

Answer 29

Traditional: The Contractor is required to build what has been specified and holds responsibility for workmanship, but all design liability lies with the Architect/design team.

D&B: The Contractor retains overall control of your project and is legally responsible for both the design and the workmanship of your build.

Question 30

When are the different procurement options normally suitable?

Answer 30

• Traditional:
  The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail (and often to ensure cost control and inspect the construction works as they proceed), and a contractor is then appointed for the construction of the project on a single-stage competitive basis.
• Design and Build:
  Used when there is a need to make an early start on site – as design and construction can overlap. Used when the client wishes to minimise their risk – as they have no responsibility for design. It’s for technically complex projects which can benefit from the contractor’s expertise in the design stage. Used when the employer does not want to retain full control over the design development. Used when the client wishes to have a single point of responsibility.
• Management Contracting and Construction Management:
  Construction management is a procurement route in which the works are constructed by a number of different trade contractors. 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. They might be used on large, complex projects where the advantages of CM / MC can be put to use e.g. upfront buildability knowledge, programme advice, specialist input from trade contractors. It is used where early start on site is key, flexibility in design is required and where price certainty before commencement is not key.

Question 31

What are guidance notes for tendering?

Answer 31

JCT Tendering Practise Note 2017
RICS Tendering Strategies Guidance Note
RICS E-Tendering Guidance Note

Question 32

What are the pros and cons of open tendering?

Answer 32

Pros:
- Increased competition
- Providing opportunity to smaller contractors to tender
- Ensuring the lowest price is obtained
- Can quickly advertise and issue on an online portal

Cons:
- Contractors can tender that you have no experience of working with
- Lowest price is often inaccurately priced
- Likely to receive more invalid tender submissions
- Have to have an online system or way of advertising to all
- Tender analysis is lengthier

Question 33

What are the pros and cons of selective tendering?

Answer 33

Pros:
- Aware of contractor experience
- Can issue to interested contractors so can be fairly quick
- Quality should be good and contractor familiar with client requirements
- Tender analysis simpler

Cons:
- May have to issue tender enquiry letter and pre qualification questionnaire
- May not get as cost effective a price
- Do not give opportunity to other contractors
- Need a list of contractors to go to

Question 34

What information should be included within the invitation to tender?

Answer 34

• Client details
• Project details
• Contract details
• Tender return stipulations
• Specific client requirements
• Insurance requirements
• Scoring of tender
• Project timetable
• Terms and conditions

Question 35

What information usually forms the tender documents?

Answer 35

ITT, form of tender, covering letter, schedule of works and appendices including dwgs, PCI and appendices including FRA.

Question 36

How do you electronically tender?

Answer 36

RICS E-Tendering guidance note. Ensure a secure tendering platform is used such as Delta on which the contractor can access the documents for tender and raise any clarifications.

Question 37

What may invalidate a tender?

Answer 37

• Incorrect documentation is supplied.
• Multiple items are not priced.
• Proved that collaberation has taken place.
  ITT should break down what will make a tender invalid.

Question 38

What are the Public Procurement Regulations?

Answer 38

Enforces the Government Procurement Agreement and ensures that works contracts of circa £5,000,000 are procured via the public find a service threshold.

Question 39

What does OJEU and GPA stand for?

Answer 39

Official Journal of the European Union and Government Procurement Agreement

Question 40

When is OJEU applicable?

Answer 40

Any contracts prior to leaving the EU in 2021. For works contracts circa €5.3 million threshold.

Question 41

When is GPA applicable?

Answer 41

Projects procured after 2021 and leaving the EU. Find a service threshold for works contract is £5 million.

Question 42

For the floor refurbishment project, how did you initially select the contractors to tender?

Answer 42

Client had a pre determined list, issued an initial enquiry letter and four contractors responded.

Question 43

What tender documents did you issue for the floor refurbishment project?

Answer 43

ITT, form of tender, covering letter, SoW and appendices incl.dwgs and PCI and H&S appendices.

Question 44

Why did you issue to four contractors for the floor refurbishment project?

Answer 44

Should issue to between 3-5 tenderers to ensure competition without having too many. JCT Tendering Practice Note 2017.

Question 45

For the floor refurbishment project, why did you exclude a tenderer from the process?

Answer 45

They submitted a non-compliant tender not in accordance with the ITT. They only submitted a rate for the resin floor installation and no priced schedule of works, thus they were excluded.

Question 46

How did you deal with errors for the fire service project? What is the difference between alternative 1 and 2?

Answer 46

Alternative 2 under the JCT Tendering Practise Note 2017.

This allows contractors to confirm, amend or withdraw their price whereas for alternative 1 they can only confirm or withdraw.

Question 47

What did the scoring criteria include for tender analysis of the floor refurbishment project?

Answer 47

Cost - Competitiveness and arithmetical check
Quality - previous experience, quality control, H&S and company structure

Question 48

How did you initially select the contractors for the appleford court project? How else could you select contractors?

Answer 48

Client had pre-determined list, sent initial enquiry letter and four confirmed they wished to tender. Otherwise could have sent pre-qualification questionnaire.

Question 49

How did you deal with tender queries for the Appleford Court project?

Answer 49

I dealt with tender queries by receiving any queries from contractors then issuing an anonymised tender clarifications list to each of them with responses to the queries.

During tender analysis I issued a tender query list to each contractor with any queries I had. I then dealt with responses in accordance with Alternative 2 and amended the tenders as required.

Question 50

What tender queries were raised for the Appleford Court project?

Answer 50

• Queried whether a window along the compartment wall would need to be blocked up to comply with the fire strategy.
• Query on whether more returfing should occur than originally specified.
• Query on the structural integrity of a blockwork wall.
• Query on whether all elevations would need to be scaffolded.

Question 51

How did you deal with tender clarifications for the Appleford Court project?

Answer 51

• I received queries.
• I collated with my responses and issued an anonymised tender clarifications list to all contractors.

Question 52

Talk me through the process of analysing the Appleford Court tender return?

Answer 52

• Tender opening register
• Arithmetical check and scrutinised tenders
• Sent tender query lists to each contractor
• Reviewed responses and updated the tender returns if necessary
• Completed the scoring matrix
• Produced a report and issued to client

Question 53

What are genuine errors? Were contractors able to alter their price for the Appleford Court project?

Answer 53

Arithmetical error rather than changing cost for an item. Yes, under alternative 2 could amend item.

Unintentional and honest error

Question 54

What do you include in your tender reports? What are included in the appendices?

Answer 54

introduction, tender data, tender analysis, tender consideration, comparison with budget / PTE, recommendation

Appendices - Tender queries, tender clarifications, tender opening register, scoring of tenders

Question 55

What does the matrix take into account when recommending a tenderer? Is it always the lowest priced tenderer that is recommended?

Answer 55

60% cost effective and arithmetical errors.
40% response times, management structure, quality control, H&S

Question 56

What is Alternative 1 and Alternative 2?

Answer 56

How to deal with genuine errors. Alternative 1 allows tenderer to stand by price or withdraw and alternative 2 allows tenderer to stand by price, amend or withdraw.

Question 57

How does Framework Agreements and Partnering work?

Answer 57

They involve working together with other parties and collaborating to reach a desired project outcome or for multiple projects.

Question 58

What is the difference between single and two stage tendering? What are the pros and cons of each?

Answer 58

• Single stage - design responsibility stays with client and contractor constructs accordingly.
• Two stage - design and build responsibility is with the contractor who is involved at an earlier stage.
• Single stage means the client has full control over design, a fixed contract sum is achieved, cost competitive as no design risk, simple tender analysis.
• Two stage means contractor can give expertise earlier, more time efficient, client does not take on design risk, a competitive cost can still be obtained.

Question 59

What is tendering?

Answer 59

The process of obtaining costs to select a contractor to undertake works.

Question 60

How do you select contractors for potential tenders?

Answer 60

Client list, initial enquiry letter, pre qualification questionnaire, previous experience

Question 61

What alternative would be used for a public sector tender?

Answer 61

Alternative 1

Question 62

What is management contracting?

Answer 62

Management contracting is a procurement route in which the construction works are constructed by a number of different works contractors who are contracted to a management contractor appointed by the client.

Question 63

What is construction management?

Answer 63

Construction management is a procurement route in which the construction works are constructed by a number of different works contractors who are contracted to the client and managed by the construction manager.

Question 64

Does your company have any preferred contractor lists?

Answer 64

We do not have preferred contractor lists however the client may have this. I would check through a company email if there is a contractor that may be appointed that I do not have experience of.

Question 65

What is traditional procurement?

Answer 65

The design is completed by the client’s design team before competitive tenders are invited and a main contractor is employed to build what the designers have specified

Question 66

When is traditional procurement appropriate?

Answer 66

• If the employer has had the design prepared
• If the design is substantially completed at time of contractor selection
• The client wishes to retain control over the design and specification
• Cost certainty at start on site is important
• The shortest overall programme is not the client’s main priority

Question 67

What is PFI?

Answer 67

Brings private sector project management and expertise into the public sector;
The private sector is granted a concession to finance, design & build and operate major public projects such as schools and hospitals.

Question 68

Name some partnering contracts?

Answer 68

• PPC 2000
• JCT Framework Agreement
• NEC4 Framework Contract

Question 69

What is the difference between single stage a two stage tenders?

Answer 69

• Single stage - A structured process of receiving competitive tenders from a number of pre selected capable contractors, who provide a lump sum for the works.
• Two stage - Separates the processes involved with selecting a contractor from the processes for determining the price for the works

Question 70

When is two stage tendering used?

Answer 70

Used when it is desired to obtain the benefits of competition and have the advantage of bringing a contractor into the planning of the project and gain an earlier commencement

Question 71

How do you determine duration of the tender period?

Answer 71

• Depends on procurement process and size of the project.
• Better to give enough time to ensure contractors can price it correctly rather than rush it and encourage contractors to price a high risk element into the tender.
• Approximately 4 - 8 weeks.

Question 72

Why should you examine tenders?

Answer 72

• Check tenderer has included everything, if not to ascertain whether they are still the lowest.
• Component parts of tender will be used subsequently e.g. valuing variations
• Errors in SOW need to be identified and dealt with.

Question 73

What are the dangers of accepting a low tender?

Answer 73

• They may have missed some of the works
• The quality may be lower than some of the other tenders had allowed
• Once on site they may try and recover their costs by a large no of variations / claims for EOTs and loss and expense
• This could lead to adversarial relationships

Question 74

What would you do if the lowest tenderer had submitted no pricing of the preliminaries, would you recommend he was accepted?

Answer 74

• Depends on the form that the tender was sent out in and instructions to tenderers
• Usual to have prelims split into method and time related items
• If they did not break them down as required then it is officially a non-compliant tender
• BUT in practice the contractor is usually provided the opportunities to provide a full breakdown within a couple of days and this would be regarded as valid
• They are not allowed to change the figures – not allowed to gain an advantage
• The fact that this was done should be noted in the tender report

Question 75

On what grounds would you advise the client to re-tender?

Answer 75

• Not enough tenderers returned tenders
• The tendering procedure is believed to have been compromised for some reason
• If tenders were not at the cost level required and it was believed that re-tendering to different tenderers would provide a different result
• Design changes or VE has been carried out that has significantly changed the design that was originally tendered on

Question 76

You have received tender returns and the lowest tender is
significantly lower than others (say by 20%). Would you still
recommend the tender?

Answer 76

Providing there were no obvious errors & it was a bone fide tender, I would recommend the tender. However, I would advise the client of the potential problems during the post contract administration & the contractor may try to recoup the monies through claims etc. having bought the job at tender. This may also cause the contractor financial difficulty, which may ultimately cause insolvency, causing further problems for the client. Ultimately, it would be the clients decision.

Question 77

What are the GPA thresholds compared to the OJEU thresholds?

Answer 77

• OJEU central government - construction work is approx. 5.3 million euros and services 140,000 euros. Other entities services is 215,000 euros. Small lots are construction work 1,000,000 euros and services is 80,000 euros.
• GPA central government - construction work is £5 million and services £130,000. Sub-central government services is £200,000 and other entities £400,000.

Question 78

Who organisations enable the GPA and OJEU accordingly?

Answer 78

WTO and EU.

Question 79

What factors do you consider when considering the procurement route?

Answer 79

Time, cost, quality.

Question 80

Rather than exclude the late submission, what other factors could you have considered?

Answer 80

• Retendering the project.
• If only a couple minutes late, for private clients could determine if they wanted to accept, ultimately clients choice.

Question 81

What is included in a pre qualification questionnaire?

Answer 81

• Experience on similar natured projects
• Health and safety
• Quality control procedures
• Company structure