Procurement and Tendering Flashcards
1
Q
What is procurement?
A
The overall process of obtaining construction goods and services
2
Q
What are the main factors that would determine procurement route selection?
A
- Client objectives and key drivers, risk allocation
- Must consider and balance the client’s priorities, as you usually find that one procurement route won’t satisfy everything the client wants.
- Cost, time, control, quality, risk
3
Q
What procurement options are you familiar with? / What are the 4 main types of procurement route?
A
Traditional
D&B
Management contracting
Construction management
4
Q
Which procurement route poses the least risk to the employer?
A
D&B - the design risk is transferred to the contractor (single point responsibility)
5
Q
Which procurement route is the riskiest for the employer?
A
Construction management - the employer places individual contracts direct with each trade contractor, construction manager has no risk (except professional negligence)
6
Q
How to identify client requirements before recommending procurement route?
A
Through detailed discussions with the client and design team to identify their priorities in terms of cost, time, quality, risk, control requirements and experience.
7
Q
Client wants to start on site ASAP - what route to recommend?
A
- My recommendation would need to take into account their other requirements such as cost and quality.
- If time was their overriding priority, then Construction Management or Management Contracting may offer the best solution as they can offer the fastest start on site with overlap of the design and construction.
- This is because start on site is not dependent upon a long tender period however the key tradeoff is a reduction in cost certainty.
8
Q
Client wants to start on site ASAP but also cost certainty - what route to recommend?
A
- Design and build procurement may offer the best solution.
- This is because it allows the design and construction to be overlapped rather than being sequential.
- Design and Construction risk is transferred to the Main Contractor with their tender being based on a lump sum price to offer high levels of cost certainty.
9
Q
What is traditional procurement?
A
- The 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 within the contract period.
- The client takes the responsibility and risk for the design and design team performance.
10
Q
Key advantages of traditional procurement?
A
- Retaining control over the design can lead to higher quality.
- It offers increased levels of cost certainty before commencement
- Design changes are reasonably easy to arrange and value
11
Q
Key disadvantages of traditional procurement?
A
- The overall project duration may be longer than others due to lack of overlap between design and construction.
- There is no input into design and planning by the contractor.
- A strategy based on price competition can lead to adversarial relations.
- There is a dual point of responsibility with the design team controlling the design and the contractor retaining responsibility for the construction
12
Q
Where might the traditional route be appropriate?
A
- If the employer has had the design prepared.
- If the design is substantially completed at time of contractor selection.
- The client wishes to retain control over the design and specification.
- If cost certainty at start on site is important.
- The shortest overall programme is not the client’s main priority
13
Q
What is design and build?
A
- Where 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 ‘Employer’s Requirements’ and the contractors responds with the ‘Contractor’s Proposals’, which include the price for the works
14
Q
What is novation?
A
- Used in D&B to transfer benefits and obligations of contractual agreement from client to the contractor- terms and conditions the same except parties in agreement.
- Benefits and obligations transferred (i.e. responsibility of payment)
15
Q
Advantages and disadvantages of novation?
A
- Advantages - continuity, accountability, assurance on quality for client, reduces risk of post contract changes / disputes, less likely to price in design risk, contractor doesn’t commit as much time/resource to reviewing / validating design
- Disadvantages - Contractor unlikely to be familiar with architect- risk of non-beneficial working relationship, architect underperformance = contractor responsibility, inc prior to their involvement - could be unfair
16
Q
Alternatives to novation?
A
Option to assign design team, contractually retained by client (not as good for risk averse)
17
Q
What are employer’s requirements (ERs)?
A
- They set out the client’s requirements including the function, size, accommodation and qualityrequirements 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.
18
Q
What are the Contractor’s proposals?
A
- The contractor’s response to the Employers Requirements.
- 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 specification for materials and workmanship are also provided.
19
Q
Under D&B, how much design input will the contractor have?
A
- This depends on the amount of design work the employer has already had completed at time of tender.
- This can range from full design to production information and coordination only.
20
Q
How does D&B establish cost certainty?
A
- Lump sum submitted for whole of works provides cost certainty in single stage tender
- Design development responsibility is contractor’s so risk transfer with it
21
Q
Key advantages of D&B procurement?
A
- There is a single point of responsibility for the design and construction.
- There is earlier commencement on site.
- Early price certainty is increased.
- The client can benefit from the contractor’s experience harnessed during the design.
22
Q
Key disadvantages of D&B procurement?
A
- Clients may find it hard to prepare a sufficiently comprehensive brief.
- The Client has to commit to a concept design early.
- Variations from the original brief are difficult to arrange and are often expensive.
- It is harder to compare tenders and harder to determine whether value for money is being achieved.
23
Q
Where might the D&B route be appropriate?
A
- Where there is a need to make an early start on site as there can be 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.
24
Q
Other consideration for D&B route?
A
- Additional insurances - Professional Indemnity Insurance (PII) might be needed as the contractor has design responsibility
- Employer usually pays a premium as contractor is taking on the design risk, so usually there is an allowance (sum of money) in exchange
25
Typically for D&B, what stage would contractor's be taken on board?
Stage 3 - further design development to still get benefit.
What are implications of Stage 2 and 4?
26
What's in a novation agreement?
- Relinquishes consultant from client
- Contractor takes responsibility for all design done before their involvement
- Payment terms
- New parties
- Terms and conditions
27
What is construction management?
* 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.
* The trade contactors carry out the work.
* The construction managers 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 and evaluating tenders, co-ordinating and supervising the works.
28
What is the construction manager's role?
Construction manager role includes preparation of programme, determine requirements for site facilities, breaking project into suitable packages, obtaining and evaluating tenders, coordinating and supervising works. Requires a lot of upfront buildability knowledge
29
Key advantages of construction management?
* The overall project duration is reduced by overlapping design and construction.
* The construction manager can contribute to the 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 with trade contractors.
* The Client has a means of redress to trade contractors through direct contractual links.
30
Key disadvantages of construction management?
* 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.
31
Where might construction management be appropriate?
* On large, complex projects where the advantages of Construction Management can be utilisied for example using upfront buildability knowledge of the Construction Manager and their programme advice including specialist input from trade contractors.
* Where an early start on site date is key.
* Maintenance of flexibility in design and construction strategy.
* Where price certainty before commencement is not considered a key driver.
* Where the client is experienced in construction.
32
What is management contracting?
* A management contractor is employed to contribute their expertise to the design and to manage construction with a management fee being paid to them for doing so.
* The management contractor has direct contractual links with all of the works contractors.
* They have the responsibility for the construction works without actually carrying them out.
* Not all of the design need be completed before the first works contractors start work.
* The MC selects the works contractors through competitive open book tender.
* The client reimburses the cost of these packages to the MC plus their management fee.
33
Key advantages of management contracting?
* Overall project duration is shorter due to overlapping design and construction.
* There is contractor contribution to the design and planning process.
* Changes can be accommodated in packages not yet let if they have no further impact.
* The works are let competitively at current market prices on a firm price basis.
34
Key disadvantages of management contracting?
* 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
35
Where might management contracting be appropriate?
* Where the client does not want cost certainty before commencement.
* Where an early start on site is a priority
36
Difference between management contracting and construction management?
* Under construction management the client is in direct contractual relationships with each of the trade contractors and the construction manager isn’t.
* Under management contracting, the Main Contractor is in direct contractual relationships with the trade contractors and the client is in contract with the Main Contractor only.
37
What is tendering?
* Part of the procurement strategy
* A structured procedure for generating quotations from suppliers or contractors looking to obtain an award of business activity either under competition or via negotiation with a single contractor.
38
What is the difference between procurement and tendering?
Tendering is a part of the overall procurement strategy for a construction project, to appoint a contractor. Procurement is whole process of obtaining goods and services, including deciding how these are acquired and managing the employer's attitude to risk
39
What are the main methods of choosing a contractor?
- Open tendering
- Selective tendering (single or two stage)
- Negotiated tendering
- Serial tendering
40
What is a bona fide tender?
Bid submitted in good faith, complete, in prescribed form and meeting bidding requirements - confirmation that supplier hasn't colluded with another party when completing the tender
41
What is a pre-qualification questionnaire?
Sets out a series of questions for potential tenderers to answer regarding their level of experience, capacity and financial standing etc. before being invited to tender. Now superseded by selection questionnaire (SQ) but private projects may still use PQQ
42
What is a selection questionnaire?
Questionnaire issued by contracting authorities to prospective bidders - series of questions regarding experience, capacity and financial standing before being invited to tender. SQs incorporate exclusion grounds in Public Contract Regulations 2015 (PCR 2015) and aligns with European Single Procurement Document (ESPD)
43
What's the difference between PQQ and SQ?
- SQ now updated to incorporate the exclusion grounds in the PCR 2015 and ESPD. This correlates with exclusion concerning Modern Slavery Act 2015. SQs tend to also have the difference that you can self-certify that you meet the requirements instead of having to gather and submit all the evidence. Instead you'll be asked to provide this once invited to tender or when being awarded the contract.
- SQ's typically for public sector procurement
44
What is the purpose of the SQ?
Reducing number of potential tenderers so only those genuinely apt for job are invited. Saves time for those who wouldn't have realistic chance of winning and for those managing tender
45
When would an SQ be used?
Particularly in public sector procurement
46
Where might you get a credit check from (as part of the SQ)?
- Dun & Bradstreet report
- Credit agency i.e. Experian
47
What might the SQ ask for?
- Part 1 - Potential Supplier Information; Company details, inc any parent companies, contact details
- Part 2 - Exclusion Grounds; participation in criminal organisation, corruption, fraud, money laundering, terrorism, child labour -> if yes may need to demonstrate reliability of organisation despite ground for exclusion
- Discretionary exclusion - breach of environmental, social, labour law obligations, professional misconduct, bankruptcy, conflict of interest
- Part 3 - Selection questions; Economic and financial standing (cashflow, audited accounts, financial documents - profit and loss, balance sheet, statement of cash flow), PCG / guarantee from elsewhere (bank), technical and professional ability (relevant experience and contract examples), modern slavery act requirements - ensure compliance with section 54, Insurance (employer's liability, public liability, professional indemnity, product liability), skills and apprentices (supporting commitment to development), steel (supply chain management systems, examples of management, breaches of H&S), suppliers past performance
48
What is open tendering?
* This is an indiscriminate request for tenders to be submitted to the open market.
* This could be achieved by advert placement in local papers or technical press inviting contractors to apply for the tender documentation.
* There are little or no barriers to entry needed to submit a tender.
49
Advantages of open tendering?
* It provides opportunities for capable firms which the clients may have not previously considered.
* It should secure maximum competition from the open market.
50
Disadvantages of open tendering?
* There is a danger of increased errors within the tender submission due to a risk of inexperienced contractors that have no prior understanding of the clients requirements.
* There is no assurance that the lowest tenderer is capable or financially stable.
* The total cost and time needed to review the tenders is increased.
51
What is selective tendering?
* This restricts the number of tenderers by pre-selecting a limited number of contractors to tender for the work.
52
What are the two types of selective tendering?
* Single stage.
* Two stage.
53
If you have a £25m new build project under D&B procurement (single stage tender) how long would you allow for the tender period?
Depends on complexity of project - 10-12 weeks might be reasonable as it would take time to interpret employer's requirements
54
What is single stage tendering?
* A structured process of receiving competitive tenders from a number of pre-selected capable contractors.
* Contractors are pre-selected based on:-
o Financial standing.
o Qualifications and certifications.
o Previous track record.
o References.
o Organisational structure.
o Capacity and resources.
o Size of work previously undertaken.
55
Advantages of single stage tendering?
* 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.
56
Disadvantages of single stage tendering?
- No buildability input from contractor at point of tender
- Price is only as reliable as design info
- Contractors may be unwilling to tender in good economic climate (too much competition)
- Risks of unknowns may dissuade some contractors - risk of prov sums
57
What is two stage tendering?
* Two stage tendering is 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 an earlier contractor involvement.
Stage 1
- Outline project design, contractors compete for preferred contractor status. Chosen based on quality of bid, team, prelim & OH&P allowance, schedule of rates. Preferred contractor joins design team on consultancy basis using pre-construction services agreement (PCSA).
Stage 2
- Once design sufficiently progressed, contractor enters detailed negotiation to agree final price, contract conditions and programme
58
Purpose of the first stage of two-stage tendering?
Get a contractor to help client develop and finalise design using buildability expertise
59
What do tenderers return as part of the first stage?
- Detailed build up of prices for preliminaries items
- OH&P %
- Programme
- Proposed sub-letting of works
60
Purpose of the second stage of two-stage tendering?
Agree final price, contract conditions, programme
61
Advantages of two-stage tendering?
* Early involvement of the contractor.
* Encouragement of collaborative working.
* Potential for an earlier start on site.
* Greater client involvement in selecting the supply chain.
* The contractor can help identify and manage risk.
62
Disadvantages of two-stage tendering?
* 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 second stage negotiation and increase costs.
* There is the potential for parties to not agree the contract sum with a risk of retendering.
63
Why use 2 stage tendering?
* With a complex building.
* Where the magnitude of work is unknown at time of contractor selection.
* If early completion is required.
* Where the design team would like to make use of contractors expertise on buildability issues.
64
What stage would you bring the contractor on board?
- Generally Stage 2 for further design development
- Can be other stages but it's important to factor in whether you lose buildability benefits and earlier means higher fees
65
How can you gain input from specialist subcontractor other than 2-stage tendering?
Separate contract and assign benefits to main contract
66
What is a negotiated tender?
* Where the client has an existing preference for appointing a particular firm and only negotiates with one contractor.
* When the contractor has carried out work successfully for the client previously where they have an existing relationship.
* 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.
67
Advantages of negotiated tendering?
- Simplicity
- Negotiated process could have programme benefits if done in good faith
- Employer has flexibility choosing preferred contractor
- Time and cost savings to multiple tender submission analysis
- Early contractor involvement
- Good relationship with employer and contractor
68
Disadvantages of negotiated tendering?
- Possibility of delay if negotiations protracted
- Potential cost premium (lack of competition)
- Heavy reliance on trust between parties
- Can be seen as anti-competitive and exclusive
- Not suitable for public clients
69
How do you justify value for money in negotiated tender?
Insist on open book approach- min of 3 quotes provided for each element of works (needs to be agreed up front with contractor)
70
How do you negotiate works packages?
- Made sure cost plan included in 1st stage tender docs
- Insisted contractor went to 3 sub-contractors for each package
- Reviewed for any pricing errors, benchmarking rates against in house cost data
71
Why would you use negotiated tendering?
Complex works, small pool of contractors
72
What is serial tendering?
* Contractors are asked to bid for a project on the basis that if they complete the initial projectsatisfactorily, other projects of a similar type will follow and the same bill rates will be applied.
73
What might selecting wrong contractor lead to?
- Bad client & contractor relationship
- Dissatisfied client
- Insolvent contractor
74
Risks of two-stage tenders?
2nd stage risk - may need to retender
- no incentive to reduce costs
75
What is OJEU?
- Official Journal of the European Union
- Online portal housing public sector contracts over stated procurement threshold
- For open tendering
76
What happens to OJEU now UK has left EU?
- From 01/01/2021, UK not subject to procurement regulations
- Tenders now published on e-tendering portal - Find a Tender Service (FTS)
77
OJEU vs FTS?
- No changes in procurement laws, so processes still based on same legislation (Public Contracts Regulations 2015)
- FTS - now procuring entities need to submit notices to UK e-Notification Service (formal name for FTS) - doesn't apply to live procurements / awards under existing framework
78
Associated guidance by RICS (tendering strategies)?
- Tendering Strategies, 1st edition
- E-tendering, 2nd edition
79
What guidance is there for tendering procedures?
- RICS Tendering Strategies
- Public Contract Regulations 2015
- JCT practice note
80
What documents do you include within the tender pack?
- ITT inc cover letter, tender return info
- Form of Tender
- Contract and amendments
- Instructions inc how errors are dealt with
- Tender scoring matrix
- Project info - design, spec, surveys, planning conditions
- Pricing doc
- PCI
- Quality questions
81
What do you include in a 1st stage tender package?
- Prelim document
- Cost plan
- Initial drawing and spec
- Pricing doc
- Requirements for bond warranties
- Contract and proposed amendments
82
How do you determine duration of the tender period?
* It depends on the procurement process and size of the project.
* If a traditional procurement route with a BoQ is being adopted then I would usually allow around a month in order for the MC to obtain pricing information from theirsub-contractors.
* 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 of2-3 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.
83
What is a form of tender?
* A preprinted 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.
84
What information is typically included in a tender submission?
Tender sum, price validity period, construction period, confirmation of genuine and bona fide tender, tenderer details and signature, acceptance of T&C's
85
What is the CSA under D&B?
Alternative pricing doc to SoW / BoQ, in std format by employer's team to support tender analysis. Employer's team request tenders returned on same CSA format
86
What additional info (to price) might be requested from contractor?
- Prev exp
- Proposed team
- Methodology / logistics
- References
- Programme
- H&S info
- VE proposals
- Social value strategy
- D&I policy
87
Purpose of a PTE?
- Last cost check of project before issued to tender - should be accurate reflection of works
- Estimate can be used to compare against tender submissions
88
Effects of BIM on tendering?
- Qtys can be extracted -> less contractor resource so could have more tenderers
- Better design coordination = better documentation
89
What pricing mechanisms are available? Which procurement route do they relate to?
- Traditional: lump sum, re-measurable, target cost, guaranteed maximum price
- Design and build: lump sum, guaranteed maximum price
- Construction management: cost reimbursable
- Management costing: prime cost
90
What is GMP?
Guaranteed maximum price
* 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.
91
What pricing documents are available and which procurement route do they relate to?
- Traditional: BoQ, SoW
- Design and Build: CSA
- Construction management: cost plan
- Management costing: schedule of rates
92
How could you reduce risk of contractors pulling out during tender process?
- Accurate tender info
- Long enough period (extend if required)
- PQQ to ensure apt contractors selected
- Check in advance / during they have capacity to complete
93
If the delivery programme is tight, how can you give comfort regarding liquidated damages?
- Amend contract to include liquidated damage-free period / levied at say 50% for a period
- This could avoid excessively pricing tender sum
94
How do you respond to contractor clarifications during the tender period?
Collate all queries and clarifications, circulate anonymised answers and information to all tendering contractors. Ensures transparency and fairness
95
What's examined for compliance with invitation to tender and instructions?
- Maths errors
- Pricing errors (items not priced)
- Pricing methods (front loading)
- Compare CPs against ERs (D&B)
- Completed Form of Tender
- Resolve qualifications
96
What happens if a tender is submitted late?
- Public sector project - documents shouldn't be accepted
- Private sector project - matter should be discussed with employer if they would like to accept. Safest option is not to consider (potential fraud, collusion, bid-rigging risk etc)
97
Would you open a lately submitted tender for a school project?
Discard on basis the project is funded by public sector
98
How do you deal with qualifications?
- Procedures should be outlined in tender instructions
- If unauthorised, may invalidate the tender -> disqualification
- Employer team and contractor should look to resolve before entering contract- outstanding matters clearly documented to avoid dispute
99
Danger of accepting very low submission?
- Contractor may try to recover costs with variations and/or claims
- Potentially poor financial / cash flow position - very eager to win works
- Areas may not be priced accurately, potential for adversarial relationship post contract
100
How to deal with errors identified?
- JCT tender practice note, with 2 options. One usually drafted into tender pack
- Alternative 1 - Provide details of errors, Confirm cost / withdraw (then consider next lowest bid)
- Alternative 2 - Confirm / amend genuine errors
101
What to do if you considered contractor submitting lowest tender to be in financial difficulty?
- Tender evaluation should inc reviewing company accounts to assess financial stability - could lead to disqualification
- Consider performance bond - with insolvency, employer would be able to call on bond and appoint another contractor
- Consider PCG
102
How to deal with front-loaded tender?
Front loading generally not a pricing error. Request to remove front loading, could be grounds for disqualification with refusal
103
Tender received on time but works are delayed and didn't commence until a few months later. What to do?
Check form of tender to show how long offer valid for
104
Tender normalisation techniques?
105
What to do against items marked provisional?
Seek further info from contractor and request to be removed. Subject to tender instructions this may invalidate submission
106
You mentioned Traditional procurement route. Please explain process undertaken
- Client appointed design team to stage 4
- QS - I put together pricing document
- PQQ to determine apt contractors
- Issued tender documents to qualifying contractors
- Pre-determined timescale to submit
- Responded to clarifications / questions (to all contractors)
- Receipt - maths checks
- Normalisation to ensure fair comparison
- Post Tender queries
- Scored tenders on final submission
- Client / colleague scored quality
- Drafted tender report
107
How did you compare each alternative offer and determine compliance?
- Form / statement of compliance required
- Assessments on original offer/submission
- Technical post-tender queries to ensure satisfaction of offer
- Alternative offer progressed based on most economically feasible
108
What scoring matrix's are you aware of?
- Deducting marks for info not supplied
- Ratio between cost and quality
109
On what grounds would you advise your client to re-tender the project?
- Not enough tenders returned
- Compromised tender process (fraud, collusion, bid-rigging)
- Significant design, VE, methodology / programme changes after issuing tender docs
- Tenders not at cost level required
110
Info within tender analysis report?
- Tenders received
- Initial totals
- Qualifications
- Post-tender adjustments
- Revised tender sum
- Issues to be resolved
- Comparison of tender returns
- Comparison with PTE
- Recommendation and next steps
- Scoring matrix
- Post-tender queries
111
What are typical next steps following your tender report?
- Notify successful / unsuccessful tenderers
- Cooldown period- close outstanding clarifications
- Pre-start meeting
- Raise/issue F10
- Delegate / appoint CDM
112
What happens if tender prices higher than PTE?
- Could be down to market conditions / external factor (COVID/Brexit)
- Reconcile tenders with PTE, identify where major differences are
- VE project if prices over budget
113
How would you manage £5m overspend during the 2nd stage tender?
- Establish the reason - determine if scope has changed, whether risk was aptly quantified
- Communicate reason with client
- Propose VE / scope reduction
- Scheme may have to fundamentally change / client obtain additional funding
114
Why would you advise an alternative offer?
- Significant design change putting budget at risk, risking contractors bidding for other schemes
- Allows for buildability options
- Pricing original spec and design still demonstrates value
- Must be decided prior to tendering (JCT practice note)
115
What other options to alternative offer are available? Why might they not be feasible?
- Addendum - not option if scope completely changed
- Delay scheme, re-design, re-tender - expensive professional fees, lose interest from contractors, tighter programme constraints
- Switch to D&B route - Client already designed to Stage 4, maintain control of quality
116
Can you explain what this the JCT tender practice note is and how you used it?
- Guidance and tools for employers, contractors and professional advisors involved in public and private sector procurement for letting construction contracts (in UK)
- I used it in xx scheme for
1. preliminary enquiry; timescales for responses, info schedule, questionnaire and determining number of tenders
2. Invitation to tender and process; documents, bribery and corruption considerations, tender period, quality criteria, documents to be supplied, tender compliance
3. Assessment and award; assessment criteria, examination of priced docs and errors, alternative provisions, post tender queries and discussions, recommendation, award and notification
117
Under D&B, Who carries out the design for the contractor?
* It may be outsourced to a separate design company (contractor retains responsibility).
* They may have in-house design capabilities or the client’s team may be novated.
118
What is PFI?
* Private Finance Initiative.
* 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 & build and operate major public projects such as schools and hospitals
119
What would you include in the pre-qualification questionnaire?
* 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 & PCGs.
