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APC > Procurement and Tendering > Flashcards

Procurement and Tendering Flashcards

1
Q

What is procurement?

A

The overall strategy for identifying a need, and then supplying goods or services to meet it

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2
Q

What is tendering?

A

Tendering is the specific way in which goods and services are bought

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3
Q

What are the 4 main procurement routes?

A
  • Traditional
  • Design and Build
  • Construction Management
  • Management Contracting
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4
Q

What are the Pros and Cons of Traditional Procurement?

A

Pros:
- Client maintains control of the design
- Price certainty (lump sum contract)
- Changes are relatively cheaper and quicker to make
Cons:
- More time consuming
- Design risk lies with the client
- Can’t take advantage of Contractor expertise
- An incomplete design will limit cost certainty (prov sums)

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5
Q

What are the Pros and Cons of Design & Build Procurement?

A

Pros:
- Overlap design and construction process, saving time
- Design risk lies with the Contractor
- Benefit from the contractor’s experience
- Cost certainty (lump sum contract)
Cons:
- If the ER’s aren’t detailed enough, quality could suffer
- Relatively more difficult and costly to make changes
- Clients have to decide on a design early

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6
Q

What are the Pros and Cons of Construction Management

A

Pros:
- Quicker start on site due to design and build overlap
- Contractor/Sub-Contractors can input on design
- Early involvement from the CM helps with buildaility
Cons:
- No cost certainty until the last package is let
- Risk of scope gaps
- Requires a lot of Client experience
- Lots of admin

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7
Q

What are the Pros and Cons of Management Contracting?

A

Pros:
- Less admin for the client when it comes to payments etc
- Quicker start on site due to design and build overlap
- Contractor/Sub-Contractors can input on design
- Early involvement from the CM helps with buildaility
Cons:
- No cost certainty until the last package is let
- Risk of scope gaps
- Requires a lot of Client experience

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8
Q

What is the difference between Construction Management and Management Contracting

A

The Contractual link is between the client and subcontractors under Construction Management, whereas under Management Contracting the Contractor is the one in contract with the subbies.

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9
Q

When would Management procurement routes be suitable?

A
  • On complex projects with a number of specialists required
  • Where there is a need to start on site quickly
  • When the client has a lot of construction experience
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10
Q

What is GMP?

A

Guaranteed Maximum Price
- Typically used on D&B lump sum contracts and means that the price will not change unless there is a design change requested by the client
- The contractor bears the risk of design development, on site discoveries etc
- A mechanism should be put in place to agree what happens if savings are made below this GMP

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11
Q

What are the types of tendering?

A
  • Open
  • Selective (Single or Two Stage)
  • Negotiated
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12
Q

What are the pros and cons of single stage tendering?

A

Pros:
- Competitive
- Only capable and approved firms can submit a tender
- Price certainty
Cons:
- Don’t get early involvement from the contractor

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13
Q

What are the pros and cons of two stage tendering?

A

Pros:
- Early contractor involvement can help with buildability and risk management
- Potential for earlier start on site
Cons:
- Limited price certainty

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14
Q

What happens in the first stage of a two stage tender?

A

Contractors will submit:
- Their OH&P percentage
- A fee for helping with design work
- A schedule of rates to base stage 2 on

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15
Q

What happens in the second stage of a two stage tender?

A
  • The final price is agreed
  • Contract conditions are agreed
  • A final programme is agreed
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16
Q

What are the steps of a single stage traditional?

A
  • Select a long list of contractors
  • Issue a PQQ to reduce this list
  • Issue the tender to the selected contractors
  • review, equalise, and score tenders
17
Q

What documents would you include in a tender?

A
  • Invitation to tender
  • Instructions to tenderers (are multiple options being priced, when is the return date, how are queries dealt with etc.)
  • Form of tender
  • Preliminaries
  • Schedule of amendments
  • A pricing document
  • Drawings and specifications
  • Any CDP requirements
  • H&S information
  • Outline programme
18
Q

What is a bona fide tender?

A

One submitted ‘In Good Faith’. Meaning it is submitted truthfully with no fraudulent or deceitful practice.

19
Q

What would you include in a PQQ?

A
  • Details of the project
  • Employer policies
  • Details of how the PQQ will be scored
  • The questions
    ○ Health and Safety record
    ○ Proposed team & relevant experience
    ○ Credit rating/financial information
    ○ Initial risk analysis (incl a market analysis)
    ○ Intended approach
20
Q

What if there is an error in the bid?

A

Alternative 1 - Where the contractor is informed of the error, and offered to either stand by their bid or withdraw it
Alternative 2 - Where the contractor is informed of the error, and offered to either stand by their bid or correct it

21
Q

What is a tender endorcement?

A
  • If the contractor chooses to stand by their error, it is a written agreement signed by both parties stating as such
22
Q

What are the 3 types of subcontractor selection?

A
  • Nominated
  • Named
  • Domestic
23
Q

What is a nominated subcontractor?

A

A sub-contractor selected by the employer with whom the contractor is obliged to place an order. The contractor is not responsible for delays or design defects caused by such sub-contractors.
Their works would be measured separately in the QS’ valuation.

24
Q

What is a named subcontractor?

A

A list of subcontractors that the client wishes the contractor to approach and use for the project. This means their performance is the contractor’s responsibility, but they may also reasonably reject any put forward.

25
Q

What is a domestic subcontractor?

A

One chosen entirely by the main contractor

26
Q

What replaced OJEU (Official Journal of the European Union)?

A

Find a Tender Service (FTS)

27
Q

What are back-to-back provisions

A

Ensure that the requirements in the main contract extend to the subcontracts

28
Q

What types of JCT Subcontract are there?

A
  • JCT Standard Building Subcontract Agreement/Conditions (2 separate documents); with or without subcontractor design
  • JCT short form of subcontract
  • JCT sub-subcontract
  • JCT Design and Build Subcontract Agreement/Conditions (2 separate documents)

APC (17 decks)

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