Procurement and Tendering

Question 1

What is procurement?

Answer 1

The overall approach to purchasing services or works.

Question 2

What is tendering?

Answer 2

The bidding process of buying works or services.

Question 3

What are the different forms of procurement?

Answer 3

Traditional
Design and Build
Construction Management
Management Contracting

Question 4

What are the different forms of tendering?

Answer 4

Single stage
Two stage
Negotiated

Question 5

What is two stage tendering?

Answer 5

A process that separates out selecting a contractor from buying the works. In the first stage, the contractor bids based on OH+Ps, prelims and programme.

Question 6

What can the first stage appointment in a two-stage tender be based on?

Answer 6

Pre-construction and construction programmes
Prelims
OH+P
Agreed design fees

Question 7

What is a PCSA?

Answer 7

Pre-construction Services Agreement

It allows the employer to contract with the contractor before construction commences. It is used in the first stage of a two-stage process.

Question 8

Why does D&B appeal to clients?

Answer 8

Because there is one point of responsibility for design and construction, and the design risk sits with the contractor.

Question 9

What services are usually provided under a PCSA?

Answer 9

Design
Buildability advice
Appointment of specialist subcontractors
Cost planning
Programming

Question 10

What should be included in a PCSA?

Answer 10

Scope of service
Design liability
Payment procedure
A statement that there is no obligation to proceed to a construction contract.

Question 11

What are the advantages of two stage tendering?

Answer 11

Input on buildability from the contractor
Programme certainty
Possible earlier start on site

Question 12

What are the disadvantages of two-stage tendering?

Answer 12

Could be less competitive overall in selection of supply chain.

Question 13

What is the difference between Construction Management and Management Contracting?

Answer 13

Construction Management - a consultant who manages multiple trade contracts that are contracted directly to the client.

Management Contracting - the client’s contractual relationship with the management contractor who then has contractual relationships with the trade contractors.

Question 14

In construction management, who takes the risk of for trade contractor performance?

Answer 14

The client

Question 15

What would you include in a Pre-Qualification Questionnaire?

Answer 15

Company turnover
Financial standing
Relevant experience
Health & safety records
Provision of bonds / PCGs

Question 16

Where would you find information on what to include on a PQQ?

Answer 16

RICS provide a template for PQQs

Question 17

What would you find in a tender pack?

Answer 17

Invitation to tender
Pricing document
Pre-construction information
Programme
requirements
Drawings and specifications
Scoring matrix
Quality questions

Question 18

What criteria do you consider when choosing a procurement route?

Answer 18

Client’s appetite for risk
Client’s experience
Client’s control over design
Requirements for contractor involvement
Programme requirements

Question 19

How would you decide the length of a tender period?

Answer 19

Size and complexity of project
Market conditions
Time of year

Question 20

What services does a construction manager provide?

Answer 20

Coordination of trades
Tendering trade contracts
Programme preparation
Cost planning and control

Question 21

What is single stage tendering?

Answer 21

Tender documents are issued to several competing contractors to bid.

Question 22

What are the key advantages of single stage?

Answer 22

It is more competitive and can result in a fixed price.

Question 23

What are the disadvantages of a single stage tender?

Answer 23

No buildability input from contractor

The price is only as good as the design information

Question 24

What is OJEU?

Answer 24

Office Journal if the European Union. Replaced by Find a Tender Service after the UK left the EU.