Procurement and Tendering Flashcards
What is procurement?
The act of obtaining goods/services for a project.
What factors determine procurement route selection?
Client objectives.
Time, cost, quality, risk.
Name all four procurement routes?
Traditional procurement.
Design & Build.
Management contracting.
Construction Management
What is Traditional Procurement?
Separate design and construction. Employer appoints consultants and contractors tender based on scheme.
Key advantages of traditional procurement?
Employer retains design control.
Design is mostly finalised before build tender.
Reasonable price certainty.
Key disadvantages of traditional procurement?
Project duration can end up being longer.
Limited contractor input on buildability.
Design risk retained by employer.
When is traditional procurement appropriate?
Employer has specific or detailed design requirements.
Cost certainty is important.
Programme length isn’t important.
What is design & build?
Contractor completes design and executes construction phase of the project.
Advantages of design & build?
Earlier on-site start.
Benefit of contractor experience.
More risk rests with contractor.
Disadvantages of d&b?
Design only as good as employer requirements.
Complex to compare tender returns.
Employer has less control.
When is D&B appropriate?
Where early start on site is needed.
Employer lower risk profile.
Buildability input on complex projects.
What are employers requirements? (ER)
Used to describe document produced by employer to set out requirements.
What are Contractor’s Proposals? (CP)
Response to employers requirements, produces detailed design information.
What is construction management?
Employer directly appoints sub-contractors, and hires a construction manager to manage the sub-contracts with no contractual link.
Advantages of construction management?
Speed for early start on site.
Prices could be lower due to direct contracts with trade contractors.
Employer has contractual link with contractors.
Disadvantages of construction management?
Price certainty not achieved until last trade package is let.
Procurement requires an experienced employer/client.
Employer must manage all contractors themselves.
When is construction management appropriate?
Experienced client.
Early start on site.
Flexibility to make changes to design with smaller impact on time/cost.
What is the riskiest procurement route for the employer?
Construction Management.
What is Management Contracting?
Employer appoints a management contractor to manage the entire building process, who appoints trade contractors.
Direct link with trade contractors.
Advantages of management contracting?
Management contractor helps with buildability.
Single point of responsibility.
Disadvantages of management contracting?
Price certainty not achieved until last package let.
Requires proactive employer.
When is management contracting appropriate?
Flexibility required.
Early start on site.
Buildability input from mgmt contractor needed.
Difference between management contracting and construction management?
Management contracting has direct links to the contractor, construction management has direct links to the employer.
What is a framework agreement?
Umbrella agreement that a party enters with one of more suppliers.
How long do frameworks last?
Typically 4 years, but can range between 2-10 years.
Advantages of having a framework?
Strong relationships and collaboration.
Time saving.
Rates and prices already agreed.
Disadvantages of having a framework?
Contractors and suppliers can become complacent.
Can be restrictive to new suppliers.
Why might employers choose a framework agreements?
Continuous commission of work.
Invite tenders on a call-off basis.
What is project partnering?
A broad term used to describe collaborative approach.
Ownership of risk is spread between the parties.
Key advantages of partnering?
Overall programme can be shorterend.
Risk of conflict reduced.
Better communication.
Better predictability of time and cost.
