Procurement and Tendering Flashcards
Could you please provide an outline of the RICS tendering strategies guidance note?
- Difference between procurement and tendering.
- Choosing the most suitable tender strategy.
- Post Tender Interviews
What is the difference between tendering and procurement?
- Procurement is the overall act of obtaining goods
and services from external sources and includes the overall procurement strategy. - Tendering is an important phase in the
procurement strategy and involves the bidding process and appointment of a contractor.
How does a choice of contract relate to achieving a clients quality aspirations?
The selection of a traditional contract, for example, could have a positive impact on quality given that the client will have control of the design up until the point of construction.
Are single stage, two stage and negotiated procurement or tender strategies?
They are tender routes that define the overall procurement strategy for a project.
What are the benefits of a two stage tender approach?
Early contractor input on design, Early contractor input on programme, ability to procure long lead items.
What are the negatives of a two stage tender process?
Generally more expensive due to reduced sub-contractor pool.
What are the benefits of a negotiated tender process?
Shorter programme for the works.
What are the negatives of a negotiated tender?
No cost competition, programme delay if negotiation fails.
What are the benefits of a single stage tender?
Cost competition
What are the negatives of a single stage tender?
No early procurement, Longest programme.
What are the typical processes undergone in a tender?
- QS compiles tender documents and issues.
- QS runs tender queries process, contractors visit site.
- Tender returns submitted and opened (tender opening form)
- Tender interviews
- Select preferred
- Appoint.
How would you manage a delayed tender?
- Public Projects - Tender return is to be discounted.
- Private Projects - Client advised of lateness, client to provide specific instruction if to tender to be included.
What errors would you check for in a tender?
- Arithmetical (QS check)
- Programme
- Conflict of Interest
How would you deal with an arithmetical error received in a tender?
This would be included in the instructions to tender however this would typically be:
- Allow contractor to amend their error.
- Contractor to stand by their price.
How would you deal with a non-cost error in a tender?
- Contact the contractor immediately.
- If can’t be resolved then discount tenderer.
- If it can be resolved then tenderer confirm this in writing and amend tender return accordingly.
What is typically included within a tender opening form?
- Witness
- Job name
- Tenderer name
- Prelims
- Profit and Overhead
- Overall cost
- Contract duration
What is an expression of interest
- An invite to a list of contractors.
- Based on limited details
- Contractors to return and confirm their interest.
What is a pre-qualification questionnaire?
- A document compiled by QS.
- A number of questions for the contractor to respond to.
- Specific to the project.
What is the difference between PQQ and EOI?
- EOI is generally a more open invite to more contractors.
- EOI before PQQ.
- PQQ more job specific.
What is the purpose of issuing a PQQ or EOI?
- To deduce your shortlist of tenderers.
- To de-risk tender process by ensuring interested contractors and tendering.
Why is a tender opening form important?
Formal log of the tender returns received at the initial point of tender opening.
What element of management do you apply to a tender process?
- Contractors attending site.
- Arrange contractor interviews and chair.
- Ensure responses to tender queries are timely.
What is typically included within the employer’s requirements?
- Client / Project brief
- Existing building information Incl. fit-out guide.
- Design Information
- Performance specifications.
What are employer’s requirements?
- D&B contract
- Detail client’s requirements for the project.
- Allow contractor to collate proposals.
What takes precidence the employer’s requirements or contractor’s proposals?
Contractor’s proposals as they are response to the ER’s.
Who would typically issue the tender documents?
Myself or the quantity surveyor.
Why did you issue the tender to only the three contractors?
This was following a PQQ where three strong responses were received so we were confident no party would be dropping out.
How do you determine that a contractor is suitable for tendering for works?
- Previous projects involved with team.
- Case studies
- Response to PQQ
- Size of the contractor.
How do you determine the length of a tender period?
- Complexity of works.
- Scale of works.
- Extent of design to review.
- Procurement route.
Do you involve wider stakeholders in the review of a tender?
Yes:
- Project team
- Agents
- Client
What is a tender scoring matrix?
- Document I compile.
- Relevant to specific project
- scores key project areas
What is typically included within a scoring matrix?
- H&S
- Proposed team.
- Sustainability
- Project specific items (e.g. approach to complete mock-ups)
How do you typically run contractor interviews?
- Select date w/ project team.
- Issue agenda couple of days before
- Chair meeting
- Allow questions from team / client.
- Discussion following interviews with client team.
On Leadenhall fit-out, what caused your clients restricted timescales for relocation?
- Lease expiry in their old office space.
Given restricted timescales, why didn’t you choose a negotiated route?
- Client wanted an element of cost competitiveness.
- Early buildability input on joinery / building logistics was important.
Why was quality a key aspiration for the client?
- High-end fit-out.
- High-end building
- HQ
Did you relay to your client that there could be a cost premium associated with a two stage approach?
Yes:
- Comfortable as competitive tender
What happens if there is an error in a tender?
- Alternative 1 - Errors to stood by or withdraw.
- Alternative 2 - Errors to be amended.
What is typically included within a PQQ?
- Project information.
- Questions from team.
- Request for financial information.
- Proposed schedule of amendments (If possible)
What is the purpose of a pre-tender estimate?
- Provide the client with an estimate against the anticipated tender return values.
- Allows comparison once tender returns received.
How did you go about determining a suitable timescale for your tender period?
- Coordination with QS.
- Project benchmarking
- How busy market is.
What were the fundamental lease dates that were governing the tenants programme requirements?
- Move in date
- Lease expiry
- Also tenant had planned a launch for their new fitout.
Other than a programme, what else did you issue to your client when recommending the two stage procurement approach?
- Recommendation report Incl:
- Note around contractor buildability input.
- Benchmarking regarding cost premium
- Benefit of early orders and programme risk.
- Professional team fees.
Under NEC contracts, what is an activity schedule?
- A list of activities prepared by the contractor.
- List is works required to complete “the works”
- Lump sum against each item which totals contract sum.
What takes presedence employer’s requirements or contractorsa proposals?
- CP’s
What impacts your selection of an appropriate procurement route?
- Size
- Value
- Complexity
- Tender Strategy
What are framework agreements?
- Selected framework of contractors tendered to as part of projects for a client.
What are private finance initiatives?
- Initiative to ecourage private sector business to finance local and central government infrastructure.
- Introduced in 1992.
What is a Private finance intitiative?
- A procurement method where private sector finances, buillds and operates infrastructure and provides long term services through long term contractual agreements. Usuallly 25 years.
What is your role in reviewing tender returns?
- Programme
- Team
- Logistics
What is the base date of a contract?
- The tender of the priced offer being made.
What key guidance do you assess relevant to tendering and procurement?
- RICS black book
- Tendering strategies prof standard
- JCT Tendering Practice
- JCT selecting the appropriate form of contract
What is the birtish standard for infrasstructure projects?
- BS11000-1 Collaborative Businesses
When was the latest RICS construction policy issued?
- March 2013
How can robust tendering strategies help to ensure positive tender results?
- Accountability
- Auditability
- Levelling
- Recuce corruption claims
What are some key components relevant to the e-tendering guidance note?
- Security (password protection of tender information)
- Technology - How the tender can be issud electronically (by email, disk)
- Notification of results (by email)
