Procurement and Tendering Flashcards
What is Procurement?
The overall process of acquiring construction work.
What are advantages of Traditional Procurement?
Higher quality
Cost certainty
Design control and change
What disadvantages of Traditional Procurement?
Longer duration
No buildability
Dual responsibility
What are advantages of Design and Build?
Single responsibility
Cost certainty
Buildability
Earlier site commencement
What disadvantages of Design and Build?
Comprehensive brief required
Early design commitment required
Design change difficult
Harder to compare tenders
What are the advantages of Management Contracting?
Shorter duration
Buildability
Design change
What disadvantages of Management Contracting?
Cost certainty only at end
Little incentive to reduce costs
MC has little legal responsibility for contractor defaults
What are the advantages of Construction Management?
Shorter duration
Buildability
Design change
Clear roles
Direct contractual links with contractors (lowering costs; means of redress)
What are the disadvantages of Construction Management?
Cost certainty only at end
Client must be proactive and deal with a lot of consultants and contractors
What is Partnering?
An approach of structuring business relationships to achieve mutual objectives
What is Project Partnering?
Contractors are included in the partnering process from design stages with both owning risk and delivering solutions [negotiated contract? serial tendering?]
What is Strategic Partnering?
A long term partnership for purposes of undertaking several projects over time, using framework agreements setting out terms and conditions [serial tendering? measured term contracts?]
What is Tendering?
The process of generating quotations from contractors looking to obtain an award of business.
What is Open Tendering?
An indiscriminate request on the open market for tenders to be submitted.
What is Selective Tendering?
A selective request for tenderers from those pre-selected.
