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Jordan Cornish APC > Procurement and Tendering > Flashcards

Procurement and Tendering Flashcards

1
Q

What does a letter of intent do?

A

Method of instructing a contractor to proceed with work before a contract is formally entered into

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2
Q

Why would you choose Alternative 1?

A

OJEU tendering to narrow down from 100s of bids, ensures people stick to bids

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3
Q

What is partial possession?

A

When an area achieves practical completion, it can be occupied by the client
Half the retention must be released
Defect liability period begins
Insurance passes to the client
Contractor is not obliged to allow partial possession but cannot reasonably withhold permission

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4
Q

What is the difference between Management Contracting and Construction Management?

A

Management Contracting – client employs main contractor who employs sub-contractors
Construction Management – Client directly employs sub-contractors (direct contract)

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5
Q

How would you equalise tender returns?

A

Mean of the other tenders
Highest of the tenderers
Cost plan rate

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6
Q

What is an RFI?

A

Request For Information

A way for the tenderer to clarify queries with the design team

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7
Q

Do you know of an e-tendering service?

A

The RICS has one

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8
Q

What procurement route would you advice to a client who wanted the lowest cost achieved?

A

Open Tendering or construction management

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9
Q

What factors effect choice of procurement route?

A 
Nature of project
Scope of works
Experience of the client
Accountability
Cost certainty requirement
Start / completion date requirements
Level of post contract change expected
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10
Q

What is a PQQ

A

Pre-Qualification Questionnaire

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11
Q

What are the advantages of 2 Stage Tendering?

A

Cost certainty
Buildability advice
Programme certainty

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12
Q

What are the positives of D&B?

A 
Places the risk on the contractor
Single point of responsibility
Cost certainty
Increased buildability
Can be faster as early packages can be started before the design is finalised
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13
Q

What external factors should be considered when selecting a procurement route?

A 
Changes to costs / availability of finance
Interest rates
Inflation changes
Upcoming legislation
Availability / demand of specialists
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14
Q

What does the JCT tendering practise note include?

A

2017
Public and private sector procurement is clearly split
Time for response is now the same as the OJEU notice periods
PQQ now 30 days
Tender period for public procurement now 35 days

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15
Q

What are the 4 routes of procurement?

A 
Traditional
Design and Build
Construction Management
Management Contracting
Design Build Finance Operate (PFI and PPI)
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16
Q

What is Hybrid Procurement?

A

Non-Conventional procurement method
Soho Place – Large quantity of packages procured at first stage rather than just OH&P
Façade contractor novated across to the contractor

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17
Q

What is construction management?

A

Employer places a direct contract with each trade contractor and utilises the experience of a construction manager (main contractor) to act as a consultant and coordinate the works
Appropriate on large complex projects

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18
Q

What are the negatives of D&B?

A

Lack of competitiveness in second stages
Longer tender period
Lose control of the design
Quality control carried out by contractor

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19
Q

What would you do if a tenderer submits a qualified tender?

A

Give them the opportunity to amend the tender without amending the price making the bid compliant. If they refuse, then the bid will be deemed non-compliant and rejected

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20
Q

What is the difference between Management Contractor and Traditional?

A

MC – cost + fee / % (prime cost)

Traditional – fixed cost

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21
Q

What are the benefits of a framework agreement?

A

They allow a client to reduce timescales, learning curves and risks when continually commissioning construction

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22
Q

What would you include in a Tender report?

A 
Executive summary
Introduction
List of tenders received
Tender period
Qualification identified
Post tender adjustments
Programme
Revised tender sum
Issues to be resolved
Tender returns vs PTE / budget
Recommendation
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23
Q

What are the OJEU thresholds for public procurement?

A

c.£181k for services

c£4.5m for works

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24
Q

What is the purpose of a PQQ?

A

Establish the suitability of prospective tenderers based on their record and technical capability

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25
Q

What is included within a Tender pack?

A 
Invitation to Tender
Instruction to Tenderers
Certificate of Bona Fide Tender
Scope of Works
Tender Drawings and Specification / Employers Requirements
Programme requirements
As-Built information if fitout 
Environmental Considerations
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26
Q

What makes up a letter of intent

A

Acceptance of contractors offer and description of works
Value / contract sum
Duration and completion dates
Description of the form of contract and warranties / performance bond
Date of contract signing
Copyright

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27
Q

What are the positives of traditional?

A

Most competitive
Most linear form of tendering
Fixed price before contract signing

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28
Q

What are the risks of including provisional sums?

A

Is a sum on money set aside for works which may not be carried out, scope of work is not known so can’t give a firm price
Too many provisional sums reduce cost certainty

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29
Q

What are the positives of Management Contracting?

A

v. quick
changes accommodated easily
Disaster relief – work first cost later

30
Q

What should be included in a PCSA?

A

JCT publishes 2 forms of PCSA – general contractors and specialists
Design liability
What happens to design liability if the contractor is not appointed for the 2nd stage
Method of payment
Appendix of all tender items to be included in the construction contract

31
Q

Disadvantages of 2 stage tendering?

A

Lack of competition at second stage
Can lose control of design
Risk of contractor not honouring PCSA / pre-agreed costs at contract signing

32
Q

What is procurement?

A

How the services of a contractor are purchased

The act of obtaining goods and services from an external service

33
Q

When would you choose Alternative 2?

A

JCT practise note recommends for D&B but most times when limited numbers of contractors

34
Q

What is the tender process for single stage competitive tendering?

A 
Compose longlist of contractors
PQQ
Shortlist of contractors
Invitation to Tender & Tender
Submission
Recommendation
Award contract
35
Q

What is tendering?

A

How a successful contractor is selected / appointed (obtaining a price)

36
Q

What would you include in an Invitation to tender?

A 
Time and date for the tender return
List of documents included in pack
JCT Pricing Alternative selected
Basis of award
Site Visits
37
Q

What is an Approximate Quantity?

A

When the quantity of the work is unclear but the work will definitely be required
Fixed rate only

38
Q

What are the disadvantages of CM?

A

No cost certainty until last package is let
Potentially expensive to change design once packages are let
Need an informed pro-active client
Lots of consultants, more professional fees

39
Q

What would you include in an Invitation to Tender?

A 
Document register
Time and date for tender return
Contact point for communications
Basis of award
Mid tender interviews of any
Site visits
Documents required in the tender
Which JCT Pricing Alternative is selected
40
Q

What are the advantages of e-tendering?

A

Can reduce tender period possibly
Reduced printing / mailing costs – environmentally friendly
Maintains clear audit trail of communication

41
Q

How would you decide on the length of tender period?

A 
JCT Tendering Practise note 2017
Complexity
Size
Time of year
Market conditions
42
Q

How long would you allow for the tender period?

A

Dependent on;
Complexity of the scheme / if the contractor is required to complete design
If single stage with no CD then 4 weeks max
If unsure I would consult the contractors to see how long they would need to complete an accurate return

43
Q

What are the benefits of single stage tendering?

A

most competitive
best price
less costly for the design
less consultancy fees - only reviewing a few tenders

44
Q

What are the negatives of single stage tendering?

A

less buildability
longer as must have the design completed first
may not get as much interest from the market for single stage

45
Q

What determines if work can be included in a stage 1 package?

A

JCT tendering note – is it of sufficient detail?

46
Q

What is a PCSA?

A

Pre-Construction Services Agreement
A way for the client to employ a contractor before the construction contract commences, often as part of stage 1 of a 2 stage tender.

47
Q

How would you deal with errors within a tender?

A

JCT Practise note 6;
Alternative 1 – Confirm and Withdraw
Alternative 2 – Confirm and Amend

48
Q

What is the tender process for two stage competitive tendering?

A 
Compose longlist of contractors
PQQ
Shortlist of contractors
Invitation to Tender & stage 1 tender
Recommendation of preferred bidder
Pre-Construction Phase and PCSA
Stage 2 negotiation
Award contract
49
Q

What services should be included under a PCSA agreement?

A 
Design
Buildability advice
Cost planning
Programming
Advice on packaging of works
50
Q

What are the negatives of traditional?

A

No contractor involvement in the design

Potentially higher number of risk items / PS

51
Q

How would you carry out a Tender analysis?

A

Arithmetic check for errors
Compare against PTE and current budget
Check for missing scope, exclusions and provisional sums
Deal with errors with the JCT Practise Note 6 Alternative 1 or 2 (depending on selected option

52
Q

Are you aware of the acronym MEAT and when would you use it to evaluate Tender Returns?

A

Most Economically Advantageous Tender

53
Q

What is the procurement route of PFI or PPP?

A

Design, Build, Finance, Operate

54
Q

What are the negatives of a negotiated tender?

A

Lack of competitiveness
High cost / longer programme
Not suitable with public contracts

55
Q

Your client has seen a site he wants to build on and is keen for you to start preparing tender documents; how do you go about this?

A

I would convene a meeting with the client & the design team to discuss the following
1) Project programme/Anticipated schedule of Key Dates
2) Procurement & contract strategy
3) Agree a schedule of dates for issue of design information
4) Determine what pricing document
5) Establish tender list / PQQ
6) Risk register & how this will be dealt with under contract
7) Tender issue date.
Once agreed I could begin to collate the information available & start pulling the information for the tender document together

56
Q

What is a Prime Cost?

A

Used for when a specified sub-contractor is listed, applies only OH&P to a set price

57
Q

How will the chosen procurement strategy affect the project?

A 
Clients exposure to financial uncertainty
Clients level of control over the design
Extent of design required for tender
Contractor involvement in design
Project risk profile
58
Q

What is open tendering?

A

Open to the public so anyone can express an interest in the project – required for public sector work - OJEU

59
Q

What is sectional competition?

A

Refers to sections pre-stated in the contract

Allows the client to take passion of completed areas

60
Q

What are the negatives of Management Contractor?

A

Cost / cost certainty

Requires careful management

61
Q

Why do you carry out a tender analysis?

A

To ensure the bids are compliant and can be compared equally

62
Q

What are the drawbacks of a negotiated tender?

A

No competition so no guarantee of a fair market price

63
Q

What are the positives of a negotiated tender?

A

Faster – no tender period

Most contractor involvement

64
Q

What are the benefits of CM?

A

Programme – can overlap design and construction
Clear roles and relationships between all parties
Can accommodate design changes if the package has not been let yet
Potentially better price as direct contracts with trades

65
Q

What information is required in a PQQ?

A

Contract particulars details
Key staff, management and organisational structure
Relevant experience
Financial and commercial standing – turnover, company accounts
Commercial policies – H&S, CSR, Sustainability

66
Q

What is the difference between Partial possession and sectional completion

A

Section competition is pre-planned and defined in the contract documents, partial possession is not and is a more open ended option

67
Q

What is selective tendering?

A

A shortlist decided by the design team and client

68
Q

What is an alternative to a PCSA

A

LOLA - Letter Of Limited Authority

69
Q

What types of letters of intents are there?

A

1) Comfort letters; A comfort letter is a letter expressing a party’s intention to act in a particular way at some point in the future, or at the time of issuing the letter.
2) Instructions to proceed with consent to spend; A letter with instructions to proceed and consent to spend is sometimes referred as an “if’” contract. This type of letter allows work to proceed up to a certain value while the contract itself is being finalised.
3) Letters recognising the existence of a binding contract(s); This type of letter is also referred to as a letter of acceptance and is used by some forms of contract (such as FIDIC) to formally execute the contract itself. Generally such a letter will be issued only once the contract has been substantially agreed and usually marks the completion of negotiations between the parties.

70
Q

What types of tender interviews are there?

A

1) PQQ Interview
2) Mid-tender interview, better understand the project.
3) Post-tender question, after tender submission.

71
Q

What is procurement?

A

The process of the purchasing of goods of services.

72
Q

What is Alternative 1 & 2?

A

Alternative 1: Correction of the tender price is not permitted

Alternative 2: Correction of the tender price is permitted.

Jordan Cornish APC (17 decks)

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