Procurement and Tendering

Question 1

What is procurement?

Answer 1

The overall act of obtaining goods and services

Question 2

What is tendering?

Answer 2

The obtaining and selection of prices and providers for the services.

Question 3

What are the four types of procurement?

Answer 3

1. Traditional
2. Design and Build
3. Management Contracting
4. Construction Management

Question 4

What are the 5 types of tendering in construction?

Answer 4

1. Open
2. Single
3. Two-Stage
4. Negotiated
5. Framework

Question 5

What are the advantages of traditional procurement route?

Answer 5

a. The client is responsible for producing the pricing document, and therefore the quantities in the contract
b. There is no overlap between design, tender and construction
c. Certainty of time is gained at tender stage (can plan ahead)
d. Full competition of tenderers, with full design
e. Control of quality of design, so certainty
f. Little risk as you get certainty of cost, time and quality

Retaining control over design can lead to higher quality
Offers higher level of cost certainty before commencement
Design changes are easy to arrange/value

Question 6

What are the disadvantages of traditional procurement?

Answer 6

Don’t get early buildability from contractor
Can be time-consuming due to the sequential nature of the process
Limited scope for innovation and creativity as the design is finalized before construction begins
Potential for disputes and conflicts between the client, designers, and contractors
May result in higher overall costs due to change orders and variations
Limited collaboration between contractors and designers, which can result in missed opportunities for value engineering and cost savings.
Multiple parties for the client to deal with
It also means that contractors can’t provide any value engineering or design input on the project until the tender stage

Longer overall project duration
No contractor design input

Question 7

When might traditional procurement be appropriate?

Answer 7

When client wants certainty of cost, competitiveness, certainty of time but isn’t concerned with a longer tender process, and wants certainty of quality

Question 8

What is two stage procurement?

Answer 8

a. When a competitive tender is sought between contractors where they submit their OH&P, prelims CV’s method statements etc based on little design. Then a tenderer is selected to progress to stage 2 which he then submits his full priced tender with 3 quotes on packages, and costs are negotiated. The contractor is paid a pre construction services agreement fee to start building design.
b. Not as competitive as contractor can select the subbie quotes, and as he has the contract In a way and fees may have been paid, it is difficult or costly to get out of, so contractor can increase prices. Although quality of construction and buildability is good due to early engagement, the client could lose control of some of that design

Question 9

Can you tell me the difference between Construction management and management Contracting?

Answer 9

MC – where a Management Contractor has contracts with subbies and work packages are let. This is usually tendered on minimal design and packages are let as the design progresses based on which work is needing built first.
CM – where Construction Manager is appointed by client (expert) to manage subcontracts, the client is signed into these subcontracts directly. A very fast procurement route where the design and tender happens consecutively

Question 10

Advantage and disadvantage of Management Contracting?

Answer 10

Good when client doesn’t care about cost certainty, but needs an early start on site. Very short programme. Price not known until the last package. Changes to design later on can be expensive.

Question 11

Advantage and disadvantage of Construction management?

Answer 11

Large complex projects where early start is key. Design tender construction all happens simultaneously. Lots of admin, don’t get cost certainty.

Question 12

What is a framework?

Answer 12

An agreement between a buyer and suppliers, where the buyer has a long standing arrangement of works over time in the future, where the works are of a similar nature, allowing individual contracts to be let off of these framework agreements.

Question 13

What practice notes are you aware of relating to tendering?

Answer 13

I am aware of the guidance note - tendering strategies 2015

Question 14

What would you do if a tender was returned 1 minute after the deadline?

Answer 14

I would not open the tender, as this would give an unfair advantage to this tenderer, as the other tenderers where not aware of this extra time. 1 minute is still past the deadline, and the other tenderers may have submitted much earlier. Fraud, collusion. If private client it is at their discretion to open them. If public, you cannot open them.

Question 15

What if the client insisted you open the tenders?

Answer 15

I would advise the client that he is free to open them, but would advise this is not what I am going to do, and produce my report based on this tender not being bona fide.

Question 16

How has Brexit affected tendering? What legislation is there for tendering?

Answer 16

a. In October 2024, new procurement act comes into force
b. Deliver VFM / public benefit / transparency / integrity
c. New digital platform

Question 17

What is the least risky procurement route?

Answer 17

It would depend on the construction project, client, and design requirements, but generally speaking traditional is seen as less risky, as you get cost certainty up front with pricing the stage 4 design, and the contractor wont price risk in due to this. There is programme certainty as the design is completed and all accounted for in the contractors programme, so should be minimal Prov Sums etc. There is quality certainty as the client retains this control, and has say over the design.

Question 18

What is OJEU?

Answer 18

The Official Journal of the European Union, I am aware there are thresholds for advertising.

Question 19

Why would traditional and D&B have different tendering timescales?

Answer 19

D&B may be longer due to the required design

Question 20

Why might D&B have different number of tenderers than traditional?

Answer 20

It may have less to give contractors chance they will win the work.

Question 21

How do you ensure that the costs returned under a negotiated tender are fair and reasonable?

Answer 21

I would request 3 different quotes from the subcontractor packages such as joinery, M&E, and finishes. I would also compare these rates to recent tendered rates, and in house cost data, more so if I have the data from the same contractor.

Question 22

As opposed to the prelims, what other documents did you have to produce for the tender documents on a project you have worked on?

Answer 22

On the UoL Adrian Decant project: a.I had to produce the contract sum analysis as the main pricing document for the contractor to fill in to form part of the contract. Also created a form of tender. I created a schedule of all contract documentation, which acted as a table of contents. I produced a tender clarification log to include in the pack for tenderers to fill in their clarifications and queries.

Question 23

How were the contractors selected prior to sending out the EOI?

Answer 23

A shortlist was created by myself and the client based on past experience, trust, the type of project, and location. A shortlist of 7 contractors was created to send the EOI to.

Question 24

How could you ensure that the contractors are in a suitable financial position to undertake the work?

Answer 24

I would advise the client to carry out a Dunn and Bradstreet financial check on the contractors. I would also ask for the companies annual turnover and any company profit and balance sheets.

Question 25

Can you elaborate on the framework pricing agreement and how these rates were agreed?

Answer 25

The rates were agreed as part of a framework tender around 2 years ago, these form part of the framework and current design iteration that projects are based upon. Costs on a project level were then returned and analysed based upon the previous framework costs where they were uplifted for inflation, design change and project specific design elements.

Question 26

What do you understand by the term value for money and how did you advise the client that it had been achieved on the data centre equipment project?

Answer 26

This depends project to project and what the client wants, to me VFM is achieving or exceeding the clients requirements at a reasonable price.

Question 27

Under what procurement route was the UoW Beehive project tendered and why?

Answer 27

It was a Design and Build Procurement route, as the works involved specialist m&e works. The design and quality was not necessarily a priority for the client, but it had to meet the minimum requirements set out by the adopting authority, therefore I advised the client due to this, it would be better for the contractor to handle this risk

Question 28

When preparing a tender report, what information would be included?

Answer 28

Project overview, figures of the tenders, a matrix of what was requested in the Form of Tender and what was submitted, were any non compliant, a comparison of rates, elements etc, contractors submitted programmes,

Question 29

Have you ever conducted a Pre-Qualification Questionnaire? Why is this important to do in the procurement process?

Answer 29

On the UoN energy centre project, I drafted a PQQ which was issued to a longer list of contractors, as this scheme was high value, was important to the client, and the programme allowed for this exercise. b. This helps whittle down the longer list of contractors to a shortlist, highlighting key strengths of the contractors, and if they are suitable for this project, based off prior similar experience, proposed project team/CV’s, experience with the client, and other key client drivers.

Question 30

On UoB Demo, you noticed the issue in the prelims for the contract, did you miss these during the tender documents?

Answer 30

a. I was using the clients preferred preliminaries template for this contract, which didn’t include any facility for contractors welfare location, therefore I advised the client this should be included in the standard template, and sent out a clarification to all tenderers via the portal to include for this in their tender return.

Question 31

Can you advise how you analysed the tenders and how you ensured they were analysed fairly?

Answer 31

I first carried out a clarification, query and normalisation process to level the tenders, so all have included/excluded the same items, and made the same assumptions regarding the design. This ensures they are all pricing with the same assumptions and knowledge. Any additional info or Q&A’s out of this were shared between tenderers.

Question 32

Did you distribute the queries to all contractors or just the contractor that has asked the question?

Answer 32

I distributed the queries and more importantly the answers to all contractors, ensuring that any reference to the contractor was removed.

Question 33

Why did you advise on introducing new tenderers and to carry out a competitive tender? What could this bring to the tender process?

Answer 33

a. I advised this to provide commercial assurance on the project, as I was aware the single tenderer was already on the wider scheme, the contractor would see this as an opportunity to add cost as there is no competition they think the project is already theirs to have. b. Adding in competition would make the rates tendered more competitive as contractors are then competing to win the project, it also adds diversity in that different contractors price things in a different way, offer solutions, and will possibly use a different supply chain.

Question 34

If a contractor appears to be in financial difficulty, how do you advise your client?

Answer 34

Look at company accounts, previous work complete, ensure he can provide a bond

Question 35

Can you tell me the factors that influence procurement selection?

Answer 35

- Priority of cost certainty/time to S.O.S./quality control - Level of experience of the client - Risk profile of client (Transfer/Acceptance/Avoidance) - Ability to change scope of works – control - Project complexity

Question 36

You mention you have experience working on Framework Agreements, What are the adv/dis.adv of framework agreements?

Answer 36

It is quick to appoint contractors and there are reduced tender costs for suppliers. It can encourage collaborative working through working with the same suppliers and lessons learned as a result and a reduction in disputes. There however is no guarantee of future work and it is only suitable for works of a similar nature.

Question 37

Why did you use a two-stage tender on University of Nottingham Works?

Answer 37

When design was not fully developed and time is constrained, as it allows design to be completed alongside tendering, or if the design would benefit from contractor input. Traditional tendering generally doesn’t require contractor input unless it is particularly complex, and is therefore not really suited to two-stage; whereas CM/ MC & D&B are; D&B can help contractor’s understand the design leading to fewer provisional sums.

Question 38

What are the advantages/ dis-advantages of two stage tendering?

Answer 38

Advantages – Design & tendering can be overlapped. Increased contractor input on design. Some degree of competition Disadvantages – Lack of cost certainty until second stage. Lack of competitiveness during second stage. If negotiations don’t go well employer may have to re-tender.

Question 39

How would you increase competition during the second stage?

Answer 39

I would request at least 3 quotes for each package (open book tendering) we would also request copies of quotes and check measures and rates on these and challenge if appropriate.

Question 40

What did you include in your tender report that you issued to the client on the UoB project?

Answer 40

You are basically showing the process to the client. -Executive Summary -Introduction -Basis of Tender (docs/ contract/ key dates etc.) -Receipt of Tenders (as received) -Examination of tenders (adjustments made/ arithmetical errors etc.) -Final Tender position -Comparison with pre-tender estimate and explanation of any differences -Recommendation and Conclusion -Appendices (Tender opening form/ form of tender/ tender queries etc.) Prompt… So were the tenders received the same as the final tender offer?

Question 41

What should be considered when selecting a procurement route?

Answer 41

The specifics of the project The clients objectives regarding: Cost Time Control Quality Risk

Question 42

Explain what traditional procurement is and how does it work?

Answer 42

Design is completed by the client's design team before competitive tenders are invited and a main contractor is employed to build what the designers have specified. - The contractor takes responsibility and financial risk for the construction of the works to the design produced by the client's design team for the contract sum in the contract period. - The client takes the responsibility and risk for the design and design team performance - Client retains design responsibility and holds the direct relationship with the architect

Question 43

What is design and build and how does it work?

Answer 43

The contractor is responsible for the design, planning, organisation, control and construction of the works to the employer's requirements - The employer gives the tenderers the Employers requirements and the contractor responds with Contractors Proposals which include the price for the works The client transfers design responsibility to the Main contractor who holds the direct contractual relationship with the Architect

Question 44

When might DB be appropriate? NOTE - Helpful for case study

Answer 44

- Where there is need to make an early start on site as there can be an overlap between design and construction - Where the client wishes to minimise their risk as they transfer design responsibility to the main contractor - For technically complex projects requiring the contractor's expertise - Where the employer does not want to retain control over design development

Question 45

What are the advantages of DB?

Answer 45

- Single point of responsibility for design and construction reducing adversity between parties - Earlier commencement on site - Early price certainty is increased - Client can benefit from contractor's experience being harnessed during design

Question 46

What are the disadvantages of DB?

Answer 46

- Client's may find it hard to prepare a fully comprehensive brief - The client has to commit to concept design early - Variations from the original brief are difficult to arrange and can be expensive - Harder to compare tenders and harder to determine value for money is being acheived

Question 47

How much design input does a DB contractor have?

Answer 47

- depends on the project, amount of design work the employer has already completed Ranges from full design to co-ordination only

Question 48

Who carries out the design for the contractor?

Answer 48

It may be outsourced to a separate design company (contractor retains responsibility) - They may have in house design capabilities or the client design team may be novated

Question 49

What is management contracting?

Answer 49

A management contractor is employed to contribute their expertise to the design and management of construction work packages with a management fee being paid to them for doing so

Question 50

How does management contracting work?

Answer 50

MC has direct contractual links with all of the works contractors They are responsible for the construction works without carrying them out Not all of the design will have been created before the first works contractors start The MC selects the works contractors through competitive open book tender The client reimburses the cost of the packages to the MC plus their management fee

Question 51

When would management contracting be appropriate?

Answer 51

Where the client does not want/need cost certainty before commencement Where early start on site is priority

Question 52

What are the advantages of management contracting?

Answer 52

- Overall project duration is shorter as design and construction overlap - There is contractor contribution to the design and planning process - Changes can be accommodated in packages and not yet left if they have no further impact - The works are let competitively at current market prices on a firm price basis

Question 53

What are the disadvantages of management contracting?

Answer 53

- The price for the works is not received until the last package has been let - Changes to the design of later packages may affect packages already let - There is little incentive for the Management contractor to reduce costs - In practice the MC has little legal responsibility for the defaults of the works contractors

Question 54

What is construction management?

Answer 54

The employer places a direct contract with each of the trade contractors and utilises the expertise of a construction manager who acts as a consultant to coordinate the contracts

Question 55

How does construction management work?

Answer 55

- The trade contractors carry out the work - The construction manager supervises the construction process and coordinates the design team - The construction manager has no contractual links with the trade contractors or members of the design team - Their role includes preparation of the programme, determining requirements for site facilities, breaking down the project into suitable works packages, obtaining/evaluating tenders, co-ordinating and supervising the works

Question 56

When would construction management be appropriate?

Answer 56

- On large, complex projects where the advantages of construction management can be utilised - Where an early start on site date is key - Maintenance of flexibility in design and construction strategy - Where price certainty before commencement isn't a key driver - Where the client is experienced in construction

Question 57

What are the advantages of construction management?

Answer 57

- The overall project duration is reduced - Construction manager can help with design and project planning processes - roles, risks and relationships for all parties are clear - Changes in design can be accommodated without paying a premium - Prices may be lower due to direct contracts without paying a premium - The client has a means of redress to trade contractors through direct contractual links

Question 58

What are the disadvantages of construction management?

Answer 58

- Price certainty is not achieved until the last trade package is let - Changes to packages may adversely affect packages that are already let - The client must be proactive and hands on - The client has a lot of consultants and contractors to deal with

Question 59

How do you identify client's requirements before recommending a procurement route?

Answer 59

- Through detailed discussions with the client and design team to identify their priorities in terms of cost, time, quality, risk, control requirements and expertise

Question 60

If the client wishes to start on site ASAP, what procurement route would you recommend?

Answer 60

- I would need to understand their cost, quality and risk requirements before making a recommendation - If time was the overriding factor, CM or MC may be the best solution as they offer overlap with design and construction - However, if they are not experienced I would suggest a DB route would be more suited, especially if cost was an important factor

Question 61

What is GMP?

Answer 61

Guaranteed maximum price

Question 62

What does GMP mean to you?

Answer 62

A lump sum contract under which there is no adjustment of tender price unless design changes are requested by the client - The contractor includes the additional risks involved in the design development process in his tender price

Question 63

What is PFI?

Answer 63

Private Finance Initiative PFI is a government programme launched in 1992 to bring private sector project management and expertise into the public sector The private sector is granted a concession to finance, design and build and operate major public projects e.g. schools and hospitals

Question 64

What are the three types of PFI projects?

Answer 64

- Financially free standing: projects costs are recovered by charging users e.g. toll roads and bridges - Joint venture: Public and private sector stakeholders both invest however the private sector has overall control. The contributions and allocations are clearly defined. - Services sold - the capital expenditure for the project is financed by the private sector and then sold back to the public sector. The public sector requires clear demonstration that this provides better value for money than the other 2 options

Question 65

What is open tendering?

Answer 65

- This is an indiscriminative request for tenders to be submitted to the open market - This could be achieved by advert, technical press or open tendering sites that invites contractors to apply for the tender documentation - There are little/no barriers to submitting a tender

Question 65

What might be some of the problems associated with PFI?

Answer 65

- High bidding costs as they can take longer to procure than traditional projects - Value for money is hard to achieve as the cost of private borrowing is more expensive than public sector borrowing - Long term and inflexible contracts are formed which cannot respond to demographic changes

Question 66

What are the advantages of open tendering?

Answer 66

- Provides opportunities for capable firms to tender that the client may not have previously been aware of - Could secure maximum competition from the open market

Question 67

What are the disadvantages of open tendering?

Answer 67

- Danger of increased error and poor quality tenders - No assurance the lowest tenderer is capable of the works or financially stable - Total time and cost needed to review the tenders is increased

Question 68

What is selective tendering?

Answer 68

- This restricts the number of tenderers by pre-selecting a limited number of contractors to tender for the work

Question 69

What are the two types of selective competitive tendering?

Answer 69

Single stage and two-stage

Question 70

What is single stage tendering?

Answer 70

Structured process of receiving competitive tenders from a number of pre-selected capable contractors based on: -financial standing - qualifications - previous track record/experience - references - organisational structure - capacity and resources - size of work previously undertaken

Question 71

What are the advantages of single stage tendering?

Answer 71

- It ensures only capable and approved firms submit tenders - It tends to reduce the aggregate cost of tendering - It reduces the risk of receiving tenders from unsuitable contractors

Question 72

What is two stage tendering?

Answer 72

Where the client seeks to appoint the contractor based on an outline scope of work that is not fully defined The client then works with the appointed contractor to develop the scope of work and reaches an agreed price It can be used when it is useful to obtain the contractors buildability expertise on the planning of the project and gain earlier contractor involvement

Question 73

What is the purpose of the first stage?

Answer 73

The client provides an outline project design to each of the tenderers The tendering contractors will submit prices for helping the client develop and finalise the design using their buildability expertise Tender submissions will usually consist of: - Schedule of rates that will be used to calculate the agreed price during stage 2 - A price for assisting the client with design development and buildability expertise during stage 2 - Confirmation of the contractors OH&P percentage A preferred contractor is then appointed to support design development further

Question 74

What is the purpose of the second stage?

Answer 74

Following development of the design to a defined stage, a formal negotiation process is undertaken during stage 2 to agree: - The final price - The contract conditions - Programme

Question 75

When do tenderers return as part of the first stage?

Answer 75

- OH&P Percentage - Prelims (priced) - A construction programme - Proposed subletting of the works

Question 76

What are the advantages of two stage tendering?

Answer 76

- Early involvement of the contractor - Encouragement of collaborative working - Potential for an earlier start on site - Greater client involvement in supply chain selection - The contractor can help identify and manage risk

Question 77

What are the disadvantages of two stage tendering?

Answer 77

- Cost certainty may not be achieved before construction starts - Additional pre-construction fees are incurred for the main contractor - The contractor could take advantage of the second stage negotiation and increase costs - There is potential for parties to not agree the contract sum risking re-tendering

Question 78

Why should you use 2-stage tendering?

Answer 78

- when the building is complex - when the magnitude of work is unknown at the time of a contractor selection - If early completion is required - Where the design team would like to make use of contractors expertise on buildability issues

Question 79

What is negotiated tendering?

Answer 79

-Where the client has an existing preference for appointing a particular firm and only negotiates with one contractor

Question 80

When might this be used?

Answer 80

When the contractor has carried out work successfully for the client previously where they have an existing relationship

Question 81

How does it work?

Answer 81

There is no competition and only one contractor is invited to tender The contract sum is arrived at by a process of negotiation Schedule of rates or prices from previous projects may be used as the basis of agreeing a price

Question 82

What is serial tendering?

Answer 82

Contractors are asked to bid for a project on the basis that if they complete the initial project satisfactorily, other projects of a similar type will follow and the same bill rates will be applied

Question 83

What could selecting the wrong contractor lead to?

Answer 83

A bad client and contractor relationship A dissatisfied client An insolvent contractor

Question 84

How would you put together a set of tender documents?

Answer 84

In accordance with JCT practice not 2017 I would include - ITT Instruction to tenderers with- - date and time of return, details of who, site visits, programme, errors procedures and scoring matrix - conditions of proposed contract - pricing documentation - specifications - drawings - employers requirements - Pre-construction H&S information - Form of tender

Question 85

What is the form of tender?

Answer 85

- A pre-printed formal statement in which the tenderer fills in the blank spaces - The tenderer provides their name, address and the sum of money for which they offer to carry out the works

Question 86

What are the employers requirements?

Answer 86

They set out the client's requirements including the function, size, accommodation and quality requirements of the project. - Their level of detail depends on how much design development has been carried out prior to tender - They normally includes the current state of planning permission - It should also detail the level of design, structure and specification information to be provided by the tenderers

Question 87

What are the contractors proposals?

Answer 87

- The Contractors response to the ERs - They are the key documentation for the client to consider at the tender review - They often include plans, elevations, sections and typical details - Layout drawings and spec for materials and workmanship are also provided

Question 88

What would you include in the pre-qualification questionnaire?

Answer 88

- Details of contract particulars - Company turnover - Previous relevant experience and references - Company accounts - Management and organisational structure - Health and safety records - Quality systems and environmental policy - Provision of bonds, warranties and PCGs

Question 89

How would you determine the duration of the tender period?

Answer 89

- It depends on the procurement process and size of the project - If a traditional procurement route with a BQ is being adopted then I would usually allow around a month in order for the MC to obtain pricing info from their subcontractors - For large complex schemes the tender period would need to be longer - If the tender is the first stage of a two stage tender then the tender period may be a shorter duration of 2-3 weeks - It is better to ensure there is sufficient time so contractors can price the project correctly rather than rush and encourage contractors to price a high risk element into the tender

Question 90

What is Build Lease Transfer?

Answer 90

- A facility is designed, financed and constructed by the private sector and then leased back to the government for a predetermined period of time at a pre-agreed rental cost - The facility is owned by the private sector partner during the lease period at the end the government can renew the lease, buy out the private sector partner or walk away from the deal - Operation and maintenance of the facility during the lease period is usually the government's responsibility - This provides the public sector with a way of financing large scale infrastructure projects based on ongoing revenue rather than using high levels of capital expenditure - The primary disadvantage is that legal ownership remains with the private sector

Question 91

What is Build Operate Transfer (BOT)?

Answer 91

- The facility is designed, financed and maintained by a concession company, for the period of the concession -Ownership of the facility is vested in the host government from the time of construction completion - At the end of the period the concessionaires involvement in the project ends and all operating rights and maintenance responsibilities revery to the host government - The concessionaire retains all toll income during the agreed period

Question 92

What is build own operate transfer?

Answer 92

A variation on Build operate transfer where ownership stays with the concessionaire until the end of the concession period at which time it is then transferred free of charge to the host government

Question 93

What is partnering?

Answer 93

A long term approach of structuring business relationships It involves two or more organisations working together to achieve specific mutual objectives and deliver continuous measurable improvements

Question 94

What is project partnering?

Answer 94

- All members of the professional team become involved in the partnering process at the design stage including contractors - Ownership of risk is spread between the parties and a collaborative approach is encouraged delivering the solution and overcoming problems

Question 95

What is strategic partnering?

Answer 95

A long0term relationship that is established with a view to undertaking a number of projects over a long period - Framework agreements are used to set out the overriding contractual terms with fixed terms and conditions for future purchases - Projects and services are then draw down on a project-by-project basis

Question 96

What are the key characteristics of partnering?

Answer 96

- More trust is achieved between the parties - There is a reduced risk of adversial relationships as pre-determined contract conditions are agreed by all parties in advance - Increased cost certainty and speed of calling off contracts is gained

Question 97

Can you tell me the factors that influence procurement selection?

Answer 97

- Priority of cost certainty/time to S.O.S./quality control - Level of experience of the client - Risk profile of client (Transfer/Acceptance/Avoidance) - Ability to change scope of works – control - Project complexity

Question 98

You mention you have experience working on Framework Agreements, What are the adv/dis.adv of framework agreements?

Answer 98

It is quick to appoint contractors and there are reduced tender costs for suppliers. It can encourage collaborative working through working with the same suppliers and lessons learned as a result and a reduction in disputes. There however is no guarantee of future work and it is only suitable for works of a similar nature.

Question 99

Why did you use a two-stage tender on University of Nottingham Works?

Answer 99

When design was not fully developed and time is constrained, as it allows design to be completed alongside tendering, or if the design would benefit from contractor input. Traditional tendering generally doesn’t require contractor input unless it is particularly complex, and is therefore not really suited to two-stage; whereas CM/ MC & D&B are; D&B can help contractor’s understand the design leading to fewer provisional sums.

Question 100

What are the advantages/ dis-advantages of two stage tendering?

Answer 100

* Adv – Design & tendering can be overlapped. Increased contractor input on design. Some degree of competition * Dis Adv – Lack of cost certainty until second stage. Lack of competitiveness during second stage. If negotiations don’t go well employer may have to re-tender.

Question 101

How would you increase competition during the second stage?

Answer 101

I would request at least 3 quotes for each package (open book tendering) we would also request copies of quotes and check measures and rates on these and challenge if appropriate.