Procurement and tendering Flashcards
Talk me through the main forms of procurement
Traditional : Client develops design up to Stage 3 -4. issues to prospective tenderers based upon this design . Client holds design responsibility
Design and Build : Contractor takes on Design and construction risk. Single point of Contact - Least amount of risk .
Construction management : Where client appoints the subcontractors directly. They employ a construction manager to oversee the project
Management contracting : Employer appoints a management contractor to manage the entire building who in turn appoint contractors . the management contractor is usually paid a % fee based upon Construction Cost.
Name 3 tendering techniques
Single Stage tendering
Two stage tendering
Negotiation
How is a two stage tender - tendered
First stage - contractors are assessed on items such as OH&P prelims , Experience , team structure etc
Once they get past the first stage they will then be appointed as a consultant on the second stage under a PCSA.
What was included in the Zurich Tender Documentation
I included in the tender documents
ITT - Invitation to tender
Form of tender
Contract Amendments
Project Information
Pricing document
What was the purpose of the mid tender interviews for exeter university
The purpose of these interviews were to interrogate the prospective bidders extensively on their first stage tender bid.
I was able to ask them questions on subjects such as how much visibility will I receive on tender packages sent out. Whats the link between the QS and design manager to ensure all packages include up to date design information ?
The tender rules stated the lowest figure should be accepted for GWR ? that doesnt sound correct
Apologies , its not clearly written. The weighting towards price over quality was 60:40. So once all the scoring had been completed, even with the technical score , the bidder I had concerns with still remained as the recommended bidder.
What were the issue with Rates & resource you noticed.
the bidders resource allowance for the project was minimal, especially when comparing it to the other bidders and looking at previous projects that I have worked on that were similar. I raised this concern within the report stating that this could cause issues during the project and could potentially lead to the contractor asking for more resource during the project to complete it on time.
The rates on several items , were far below market average. I was able to benchmark these rates against the other bidders and against our own in house data from past projects. Again I raised this within the
How & why did you advise on increasing the contingency for GWR Cheltenham
To mitigate the risks identified in the tender report , I advised on increasing the contingency pot by the difference between the lowest tender and the second lowest.
Why did you advise on building contract without quantities ? What were the risks
The nature of the works would be difficult to quantify and with the size of the site being close to 620 acres , it would be difficult to assess this on a monthly basis. As a result I advised that a Building contract without quantities would allow the client to fix some of the costs.
I did advise that following this route would mean that the Contractor would most likely price in the risk for the quantities , and the additional cashflow risk of having to use stage payments.
Was there any other procurement method that could of been used instead of traditional for the silverwood refurbishment.
The client was a public authority so needed a level of cost certainty , so procurement routes such as construction management & management contracting weren’t possible.
as the design had been developed up to stage four it would be very difficult to place the design risk with another contractor, as they had no input in the design , and could cause either a massive increase in costs submitted , or a reduction in people who would look to tender for the work.
As a result I suggested traditional procurement as it allows the client to retain control of the design, whilst still ensuring the project was attractive to the market.
How did you score the first stage tenders for Exeter university
My input was on the commercial element of their submission.
I assessed their commericial submission … which included % for items such as
Pre con duties
Construction duties
Design requirements
Contractors Fee
This assessment accounted for 25%
I did this by reviewing each bidders score against the lowest bid and multiplying by the weighted score.
It also included an explanation on how they came to these %s . which accounted for 5%
I assessed this on a scale of 1- 5 based upon the confidence their submission gave the client team. With a score of 5 being 5% and so on.
What are the advantages of two stage tendering
Early appointment of Contractor with benefit of buildability
Early Start on site
Improved opportunity to identify risk
Improved opportunity to identify VE
Early involvement in subcontractor selection
What are the disadvantages of Two stage tendering
Less incentive for contractor to price second stage competitively
Additional cost for Contractors pre construction fee
Potential for negotiation stage to fail.
How can you mitigate the risk of a two stage tender not being priced competitively.
Set out at the start of the process the rules in which the tendering process will be governed under. This would include openess and transparency at package procurement stage , e.g having sight of the tender documentation being sent out and to who. Ensuring that all packages get a minimum of three quotations, and reviewing all submissions against up to date benchmarked figures.
How were the bidders chosen on the Exeter University project
At the start of the project , the client confirmed that they wanted to use a framework. I carried out a review of possible frameworks that could be used . Eg Southern Construction Framework , pagabo , scape. The client then decided to use Southern construction framework. The bidders were part of the framework for the south west region and all due diligence had been carried out by the framework provider.
