Procurement and Tendering Flashcards
Are you seeing developers continue to do CAT A? What alternatives do they have?
Not doing cat a – carbon, sustainability, contribution
If you were tendering now how would you protect the client from ISG fall out?
Financial checks
In your tender recommendation for Silbury House, how did you justify to the client on the selection of the contractor?
Tender Scoring Matrix
What are the risks associated with each procurement strategy?
Design and build
- hard to produce robust ER’s
- Tender comparisons can be lengthy
- Quality could be compromised as it is outsourced to the contractor
- client changes can be costly to incorporate
Traditional
- Time consuming as it is a sequential process
- No design input from the contractor
- Dual point of responsibility for design and construction
Construction Management
- No cost certainty until the final package is placed
- Client has multiple contracts to manage
- Client holds risk for each package
Management Contracting
- No cost certainty until the final package is placed
- Little incentive for the management contractor to scrutinise the costs
What are the benefits associated with each procurement strategy?
Design and build
- Single point of responsibility for design and construction
- Contractors expertise is harnessed during design
- Construction and design can overlap
Traditional
- Quality ensured through a design lead process and client retains control
- Transparent process
- Competitive process
Construction Management
- Works on site can start sooner
- Design changes can be accommodated without paying a premium
- Design, procurement, and construction can be flexible
Management Contracting
- Client has a single point of contact
- Works on site can start sooner
- Design changes can be accommodated without paying a premium
- Design, procurement, and construction can be flexible
What are the benefits of early contractor engagement?
- Cost certainty
- Surveys
What are the differences between open and selective tendering?
- Open tendering, when you publish a tender on the internet in public sector ‘findatender’ service.
- Selective tendering, what I have done on my projects. e.g. compile a list on contractor and go through a PQQ process
What are some considerations with modular construction?
Benefits
- potential savings on prelims compared with traditional construction
- programme benefits
- cost savings (consider economies of scale)
Risks
- economies on scale e.g. cost savings are larger when there are more modular pieces
- damage on way to site
Tolerance can cause issues, needs o be measured correctly
What is procurement?
The act of obtaining a good or service
What is tendering?
The act of obtaining bids for the goods or services
What are positives about a 2 stage tender (PCSA)
- Reduced risk and reduces variations
- Greater price fixity
- Less provisional sums
- Depends on market appetite
What is a re-measurement strategy?
A construction contract where the final price is based on the actual amount of work completed, rather than a fixed price
What is a cost reimbursable contract?
The contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee
What is a target cost contract?
A type of contract where the contractor is paid their actual costs, plus a percentage fee, and the target cost is agreed upon at the beginning of the project. The contractor and employer share the cost overrun or savings based on a pre-agreed formula.
