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RICS APC > Procurement and Tendering > Flashcards

Procurement and Tendering Flashcards

1
Q

What is procurement?

A

The overall process of obtaining good or services from an external source

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2
Q

What are the factors affecting selection of procurement routes?

A

Time, cost, quality, design control, nature of work

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3
Q

What are the main procurement routes?

A

Traditional, design and build, construction management, management contracting

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4
Q

What are the advantages and disadvantages of traditional procurement route?

A

Tender takes place after completion of design information. Usually RIBA 4, LP 5 HOAI.
Advantage
- Design control under client
- Cost certainty before commencement
- Easy to track changes
Disadvantage
- Sequential programme
- No ECI
- dual point of contact for design and construction

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5
Q

What are the advantages and disadvantages of Design and build route?

A

Contractor is responsible for design, planning and construction of the works according to ER. The design input depends on what employer as completed, can start at RIBA 2
Advantage
- Single point of contact
- Early commencement on site due to design and construction overlap
- Early ECI
- Cost certainty at early stage
Disadvantage
- Sufficient comprehensive ER is required
- Less design control
- Difficult to track changes
- Hard to compare tenders and value for money (contractor’s proposal)

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6
Q

What are the advantages and disadvantages of management contracting?

A

A management contractor will be deployed with a fee to contribute expertise in design and construction. Works will be splitted to works packages to overlap design and construction.
Advantage
- Shorter project duration due to overlap in design and construction
- Early ECI
- Changes can be accommodated if no underlying impact
- Single point of contact on packages (MC)
- Design control under employer
Disadvantage
- Chain reaction on changes across packages
- Little incentive to MC to reduce cost.
- Price of works is unknown until last work packages is let.

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7
Q

What are the advantages and disadvantages of construction management route?

A

A construction management will be deployed as consultant to contribute expertise in design and construction. Works will be splitted to trade packages to overlap design and construction.
Advantage
- Ideal for complex projects
- Shorter project duration due to overlap in design and construction
- Early CM involvement
- Changes can be accommodated if no underlying impact
- Design control under employer
- Direct relationship between employer and trade contractors
Disadvantage
- Chain reaction on changes across packages
- High client engagement due to multiple contracts
- Price of works is unknown until last work packages is let.

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8
Q

How much input will contractor have at Design & Build Procurement?

A

The design input depends on what employer as completed, can start at RIBA 2

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9
Q

What is an employer’s requirement?

A

It set outs the client’s requirement such as function, size, accommodation and quality of the project.

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10
Q

What is a contractor’s proposal?

A

It is the contractor’s offer including plans, elevations, specifications and price in response to the ER.

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11
Q

What is the difference between construction management and management contracting?

A

CM - direct contractual relations between employer and trade packages
MC - direct contractual relations between employer and MC

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12
Q

What is the difference between works and trades contractors?

A

CM - trade contractors
MC - works contractors

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13
Q

What is the difference between EPC/turnkey and design and build?

A

EPC/turnkey is similar to design and build except that it has less control in design. Mainly based on well defined performance specifications, less client resource required.

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14
Q

What is tendering?

A

The phase of procurement of obtaining prices and selecting contractor to execute the works.

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15
Q

What are the main types of tendering?

A

Single-stage, two-stage, negotiated

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16
Q

What are the advantages and disadvantages of single stage tendering?

A

Advantage - suitable for traditional procurement
Disadvantage - No ECI for traditional, Contractor may not fully understand the requirement for D&B, no overlap

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17
Q

What are the advantages and disadvantages of two stage tendering?

A

Advantage - suitable for design and works overlap, increased ECI, less design risk, competitive in prelims and OH&P.
Disadvantage - no competition at 2nd stage, no contractor incentive for traditional proc.

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18
Q

What are the advantages and disadvantages of negotiated tendering?

A

Advantage - most contractor involcement, no tender period, risk mitigation
Disadvantage - no competition, no suitable for public works

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19
Q

What is the prequalification questionnaire? What does it typically contain?

A

Questionnaire aids in ensuring tenderers are suitable
- Details of contract particulars, company turnover, relevant experiences, financial standing, health and safety record, org and management structure, quality and environmental policy, provisions on bonds, warranties, PCG.

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20
Q

How long is the respond period of a PQQ?

A

Typically 30 days as per JCT and OJEU. Not stated in VOB/A

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21
Q

What is e-tendering? What are the means of electronic exchange in e-tendering?

A

Electronic issuing and receipt of tender documents using electronic formats.
- CD, Email, Online tender platform, Online Auction

22
Q

What are the types of tender under VOB/A?

A

Vergabe und Vertrags Ordnung für Bauleistungen, General Provision for Contract Awards.
- Public invitation, Restricted invitation (with or without negotiation), discretionary award

23
Q

How would you assess the tender period?

A

Periods vary from project to project depending on complexity, size, time of the year and market conditions. It is recommended to obtain feedback from PQQ.
JCT - minimum 35 days for SBC, 3-4 months for D&B
VOB/A and EU Directive - minimum 10 days

24
Q

What are the procedures after list of tenderers have been identified?

A

Assess tender period, produce/compile tender documents, issue tender, review and attend tender queries, conduct mid-tender interviews, tender opening, review tenders, post-tender interviews and queries, tender reporting, notify tenderers

25
Q

How many contractors should be shortlisted in a restricted or selective tendering?

A

minimum 5 (EU directives and VOB/B), 3-6 (JCT), as stated in tender documents

26
Q

What are the types of contractor selection?

A

Open tendering, selective tendering and single contractor selection

27
Q

What are the financial basis when selecting an appropriate contract?

A

Lump sum, measureable

28
Q

What are the types of contract under VOB/B and FIDIC?

A

Lump sum, measureable - VOB/B, measurable - FIDC red book

29
Q

Is the preselection of contract necessary before selection of procurement route?

A

It is not strictly necessary however it is highly advisable to ensure alignment of responsibilities, risk management, and project objectives with chosen route from the outset.

30
Q

What are the sets of documents issued in a tender?

A

Invitation to tender, instruction to tenderers, conditions of contract, pricing documents, specifications, drawings, ER, schedules and other documents, form of tender

31
Q

What is form of tender?

A

A preprinted document, to be filled by the tenderer which provides, name address, and sum of money the contractor would be able to complete the works.

32
Q

What are the bids on the first stage of two-stage tender process?

A

EOI, outline design and method statements, key personnel and structure, tender compliance statements, HSE, quality & environmetal systems, preliminaries and OH&P, schedule of rates, proposed programme, offer for PCSA services.

33
Q

What are the bids on the second stage of two-stage tender process?

A

Negotiation or offer for price of the works based on developed design during 2nd stage

34
Q

How are contractor design portions treated under FIDIC?

A

Parts of the works where contractor are to provide design must obtain approval from the Engineer. PI must also be in place.

35
Q

How did you prepare the second stage bid for a car park building?

A

Based from the schedule of rates submitted and agreed during the stage 1, I valued the works to done based on the developed design and programme and applied the agreed % rating for preliminaries and OH&P. I then reconciled the value with the consultant QS to arrive to an agreed contract sum.

36
Q

What is the agreed amount?

A

circa 900k dinars

37
Q

What is preliminaries?

A

Refer to the costs and activities that are necessary for the management and administration of a construction project but are not directly tied to specific construction work. These include site setup, project management, temporary services, health and safety measures, and other overheads that support the execution of the project.

38
Q

How would you review tender returns?

A

Check for errors and conflicts
- Raise tender queries and conflicts of information
- Normalisation process

39
Q

What are the different techniques in normalising tenders?

A

Average of submitted costs
- Highest price from tender returns
- Use the cost plan allowance used for that particular element

40
Q

How would you deal errors in tender returns?

A
  • Usually outlined in instruction to tenderer
  • As per guidance notes, 1) Allow to contractors to correct their error 2) let contractor to stand their price
41
Q

How would you advise alternative tender submissions?

A

It is essential to outline in the ITT the whether alternative tender submissions will be allowed or not and how to deal with them
- Typically, alternative submission will not used in evaluation process and will be reviewed when they are preferred contractor
- Alternatively, alternative submission can be reviewed and explored independently by the client team, off the tender competition

42
Q

How would you treat VE options proposed by unsuccessful tenderers?

A

If the VE proposal is widely used, there is no reason not to Use the proposal
- If the VE proposal is bespoke for the project, It would be best to have consent over the Use of proposal, or to be paid for the Use of the idea.

43
Q

If you only received 2 tenders back, why would the re-tendering provide any more success and you could lose the initial 2 tenderers? Would an option not be to VE the scheme with the 2 tenderers further?

A

In this project, it has been know by the client team that many vendors have expressed their interest to participate to the tender, which may lead to a better competition. However, retendering may lead to prolonged tender period and frustration to existing tenderers, hence VE option is a practical solution which leads to collaborative and cost-effective alternatives.

44
Q

How did you managed to come up a list of tenderers in a Bahrain-government project?

A

Aside from previously-involved contractors with government experience, I sought market research and recommendations in the market with contractors with groundwork experience in goverment project. I sent a EOI, and subsequently PQQ to come up with a tenderer

45
Q

How did you prepare the tender report in Marassi Vista project?

A

Review the instructions to tender to identify requirements
- Gather tender submissions and Review compliance
- Analyse tender submissions, specifically time, cost and quality
- Raise queries and clarifications, normalise tenders and assess risks
- Produce scoring matrix based on criteria from ITT
- Prepare a report outlining the project background, tender process, tender analysis, recommendation and necessary appendices

46
Q

What does a typical tender report contain?

A

Executive summary, project information, tender process, summary of tender returns, tender criteria, tender analysis, scoring and ranking, recommendation, conclusion, appendices

47
Q

What is the recommended tender value?

A

180k dinars

48
Q

How are late tender returns treated?

A

Depending on ITT, late tender returns are typically not considered however, client must explicitly advise in writing if they wish to consider late returns

49
Q

This is confusing when you say your recommended the most commercial compliant tenderer but you then focus on other aspects of the tenders - which is it?

A

In this project, qs’s role is to support the “Engineer” in reviewing the commercial details of the tender returns. The lead “Engineer” is responsible for reviewing wholistically and technically the tender returns.

50
Q

Why is technical analysis among bids necessary?

A

Technical analysis among bids is necessary because it ensures that the tender submissions are not only competitive in price but also meet the technical requirements and quality standards of the project.

51
Q

What is the scoring weighting in this project?

A

The scoring criteria set is 60% commercially and 40% technical as advised by the client

52
Q

What are the typical documents required for tender submission?

A

Form of tender, pricing documents, contract conditions, proposed programme and methology, HSE, environment and QA plans, company information, proposed project team, compliance doc i.e, tender bonds, financial statements, tender addenda

RICS APC (18 decks)

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