Procurement and Tendering Flashcards
What is the difference between procurement and tendering?
Procurement is the overall process of obtaining goods and services and the strategy on how these will be acquired.
Tendering is a specific part of the procurement process where tenderers are invited to bid for the works.
What are the main procurement routes?
Traditional
Design and Build
Management Contracting
Construction Management
What are the different tendering strategies available?
Single stage - tender docs issued to multiple tenderers to bid for the works.
Two stage - tender docs issued based on outline design and tenderers bid to be preferred contractor and enter into PCSA to develop design further and enter into contract.
Negotiated - client directly invites single contractor to submit a tender for the works.
Main considerations when selecting a procurement route?
Time, cost and quality
What are the advantages and disadvantages associated with traditional procurement?
Advantages
Disadvantages:
- Design responsibility sits with client, however allows control over design quality.
- Sequential programme so time suffers
- Lack of buildability
How are works priced under a traditional procurement route?
Fixed price.
Advantages of two stage tendering?
- Contractors buildability knowledge.
What would you ask the contractor to submit in the first stage of a two stage tender?
- Prelims
- OH&P
- High level estimate of design
Advantages and disadvantages of D&B?
Advantage:
- Early contractor involvement
Disadvantage:
- Contractor takes over design so could lead to lower quality
Difference between Management Contracting and Construction Management?
CM - Contractors employed directly by client
MC - A Management Contractor is employed by the client who then subcontracts work packages.
Advantages and Disadvantages of MC and CM?
Advantages:
- Time benefit as some packages could be let while design is being completed.
Disadvantages:
- Loss in cost certainty until last work package is tendered.
Different ways a tender could be priced?
Contract Sum Analysis
Bill of Quantities
Schedule of Works
Activity Schedule
Alternatives to Fixed Price?
Target Cost
Remeasurable
GMP/AMP
What can sit alongside a GMP to adjust financial risk?
A pain gain mechanism.
How can contractors be selected to tender for a project?
Open tender
Framework
Negotiated tender
Selected
