Procurement and Tendering Flashcards
Explain the difference between Procurement and Tendering
Procurement is the overall act of aquiring goods and services including deciding on the strategy based on client requirements
Tendering is a phase of the procurement process, it’s the bidding phase to determine the price and how the contractor is appointed
What guidance in relation to Procurement/Tendering are you aware of?
RICS Tendering strategies guidance note 2015
JCT Tendering Practise Note 2017
What legislation are you aware of in relation to Procurement/Tendering?
The Public Contracts Regulations 2015
What is a framework?
Type of contract used as a multi supplier agreement, establishes long term relationship to deliver works as an approved supplier for the buyer
How does a framework work?
Suppliers bid to be on framework
Criteria often mix of quality and price
Buyer approved specific number of bidders to be awarded a place on the framework
When there is a specific project run a mini competition - reduced timescales and complexity of awarding work
Some frameworks allow direct award or based on performance, or geographical lots
What are the benefits of a framework?
Develop long term relationships - increased trust
Provide a longer term pipeline - benefits contractor can plan better, invest in R&D, estimate cashflow - efficiencies benefit client.
Reduce tender admin time and costs
What are the disadvantages of a framework?
Limited supplier list
Costly to set up
Limited by what was agreed at framework level - i.e rates no longer competitive
Potential complacency
What’s the difference between a framework agreement and a contract?
Contract is usually for a specific fee, scope and timescale allowing you to quote and tailor approach to a specific job
A framework rarely provides specific commitment of projects, value of work won/secured. It’s more focussed on becoming an approved supplier, allowing you to be awarded work during the period the agreement lasts
Is a framework legally binding?
Yes - legally binding in terms of bidder carrying out works in line with the agreed terms and conditions
However, only a guide for work and value expected through the framework so no commitment to this
How long can frameworks be?
Can vary, but my projects are governed by Public Contract regulation 2015 that state cannot exceed 4 years unless exceptional cases duly justified.
What is the OJEU?
Official Journal of the European Union
It’s the publication in which all public sector tenders above a certain financial threshold according to EU legislation, must be published
