Procurement and Tendering

Question 1

How did you manage tender queries at UHL?

Answer 1

Tender Addendums and schedules

Question 2

Contents of tender report at UHL?

Answer 2

Executive summary
Received tender costs
Adjusted tender costs
Process used to normalise
Tender qualifications
Tender correspondence
Tender addendum schedule
Tender query schedule
Recommendation

Question 3

Why single stage for Henderson’s?

Answer 3

Advantages
- Client gets a lump sum cost for all the works.
- Competitive pricing
- Used at Riba Stage 4 so full design
Disadvatages
- No input from contractors
- Relies upon detailed and well thought out design and tender docs
- Harder for client to introduce change without undermining the lump sum

Question 4

Pros and cons of Two Stage Tendering

Answer 4

Advantages
- MC can influence design and buildability and reduce design/construction risk.
- Ability to overlap design and tendering so quicker.
- Some competition in first stage over negotiated tendering.
Disadvantages
- Lack of competition in second stage
- Lack of cost certainty when MC taken to second stage.
- Increased programme to accommodate tender period (although there is overlap)

Question 5

How do you deal with arithmetical errors in a tender return?

Answer 5

As per the instructions in the Instructions To Tenderers
JCT dictates the following
Option 1 - Contarctor must stand by error or withdraw
Option 2 - Contractor given opportunity to stand by or correct if a genuine error

Question 6

What are the main types of procurement?

Answer 6

Traditional
Design and Build
Management Contracting
Construction Management
Framework Agreements

Question 7

What is a Pre Construction Services Agreement (PCSA)

Answer 7

Enable clients to employ contractors before the main construction contract commences. Typically they are part of a two-stage tender process, used in the first stage to procure contractor involvement in the design process.

Question 8

Novation

Answer 8

A novation agreement is the process whereby contractual rights and obligations (i.e both benefits and burdens) of a contract are transferred from one party to another.

In the case of D&B this means design rights and obligations are passed from client to MC after initial stages are complete

Question 9

What is the difference between Management Contracting and Construction Management?

Answer 9

Management Contracting
- Employer appoints MC
- MC appoints trades through work contracts
- Develops construction programmes and assist in costings and tender arrangements

Construction Management
- Employer directly appoints trades
- CM coordinates trade contracts
- CM coordinates schedules

Question 10

Give me an example of when you would advise using a two-stage tender

Answer 10

Complex design where you may require buildability input

Question 11

What would you typically include within a tender pack?

Answer 11

a. Form of tender
b. Works information
c. Draft contract
d. ITT
e. Pricing template etc.

Question 12

How would you treat a tender return which is received late? Would this differ for public or private clients?

Answer 12

Public - Automatically excluded (exceptions: force majeure)
Private - Can accept if it does not disrupt process or decline to maintain fairness

Question 13

Can you explain what normalization is?

Answer 13

Used during evaluation of tenders
- Where tenders are adjusted to create more significant separation between bidders
- Goal is to create clear distinction between bids

Question 14

What is a tender report used for?

Answer 14

• Summarise results of the tendering process
• Provides detailed evaluation of bids received
• Report helps client make informed decision

Question 15

What is two stage tendering?

Answer 15

• First stage to agree
  
  • The preconstruction fee
  • The management and
  • The OH&P to be applied to the second stage packages.
• Second stage to procure the packages and agree fixed costs.

Question 16

What factors would you take into account when advising a Client on a procurement route?

Answer 16

• Time, Cost and Quality
• Client experience and specific project factors

Question 17

What is a Bona Fide Tender Certificate?

Answer 17

A form to be filled in confirm the tender has been submitted in good faith

Question 18

Is E-tendering and an E-auction the same?

Answer 18

No.
- E-tendering is the submission of the tender online via portal or other
- E-auction will be where the other tendering parties can see where they are placed and can enter a reverse auction to revise their price with a BAFO process. (Best and final offer)

Question 19

What goes into a tender recommendation?

Answer 19

• Executive Summary
• Introduction - the background to the contract
• The scope of the contract
• Pre-qualification criteria
• The tender evaluation criteria
• Reasons for rejection of unsuccessful tenders
• Reasons for the recommendation
• Summary of any post-tender negotiations
• Comparison with the pre-tender estimate
• Any implications for the project

Question 20

How was the UHL- Post Mortem tender scored? Why do quality and pricing percentage splits change for each tender, why do clients choose different splits?

Answer 20

Client requirements and drivers of the scheme.

Question 21

You note frameworks, what impact on the tender process can using a framework have as opposed to an open market tender process?

Answer 21

Set framework rules and rates agreed with contractor, percentages for oncosts also typically agreed prior to engaging. Portal for the framework is used and contractors have to access through.