Procurement and Tendering

Question 1

What types of tender strategy?

Answer 1

Open tendering
Selective tendering
Negotiated
Framework tendering

Question 2

What are the different types of procurement method you are aware of?

Answer 2

Traditional contracting
Design and Build
Construction Management
Management contracting

Question 3

Can you tell me more about traditional procurement?

Answer 3

The client is responsible for the design, a contractor is employed to just construct what is designed by the client.

Question 4

Can you tell me more about construction management procurement?

Answer 4

In construction management procurement a construction manager is appointed by the client to only management and coordinate the interface between the subcontractors, designers and consultants.

Question 4

Can you tell me more about design and build procurement?

Answer 4

Design and build are procurement is used where the employers appoint the contractor to take on the responsibility of designing and constructing the project.

Question 5

Can you tell me more about management contracting?

Answer 5

The client appoints the MC to management the construction project, who will contact designers, consultants and subcontractors to support the client in developing the project’s feasibility studies, design and oversee construction progress, and handover tasks

Question 6

What are the difference in Managing contracting and construction management?

Answer 6

In management contracting the MCs responsible for entering into agreements with subcontractors, designers, and consultants and creating a single-touch point with Clients

In construction management the Construction Managers will coordinate the construction activities and support the client in procuring trades and required packages. Therefore, the MC will have a lighter risk profile

Question 7

What are the disadvantages of design and build procurement?

Answer 7

• The client will have less control over the design and could therefore result in a lesser quality in design.
• The contractor will have to pay a premium as the contractor will be liable for taking on the design risk.
• Price certainty- If the Employers requirements are not comprehensive. There could be potential for large variations.

Question 7

What are the benefits of traditional procurement?

Answer 7

• The client maintains control of the design.
• There is greater level of price comparison between the tendering parties
• In theory there should be grater price certainty as the design should be finalised by the client design team before the contractor is appointed.

Question 8

What are the drawbacks of traditional procurement?

Answer 8

• The client passes the design risk to the contractor.
• The client can benefit from the contract expertise on developing the design
• There is potential a shorter programme duration as the client is able to go out to tender without a fully completed design.

Question 9

What is procurement?

Answer 9

The process of obtaining a good or a service

Question 10

What is tendering?

Answer 10

The bidding process, to obtain a price; and how a contractor is actually appointed.