Procurement and Tendering Flashcards
What is procurement and what is tendering?
Procurement is the overall act of obtaining goods and services from external sources (i.e. a building contractor) and includes deciding the strategy on how those goods are to be acquired by reviewing the client’s requirements.
Tendering is an important phase in the procurement strategy but procurement involves much more than simply obtaining a price.
Tendering is: the bidding process, to obtain a price; and how a contractor is actually appointed
Why Procurement important in Contraction?
Risks in the construction therefore use as a risk management tool
Main factor of selection a procurement path?
Cleint's risk taking ability / know-how Time Cost Quality Complixity / Size Need of variations Client involment Accountability
What are the commonly used procurement routes available in the industry?
Traditional
Design and Build
Management Path
Desing and Mange
What is Traditional path, types and advantages and disadvantages?
Desing will be done by Architect then Contractor will be selected through tendering.
Two types : Sequencial and Accelerated method (Contractor become part of design team by tendering))
Advantages and disadvantages of Traditional path?
ADVANTAGES: Quality is under Emp's control Power to change (design-led) Reasonable price certainty Variation can be easy Well known
DISADVANTAGES;
Time consuming
More Variations (reduce cost certainty)
Buildability is less
What are the Methods you can use to accelerate the tradition paths?
- Design 70% and balance 30% to put as Provisional Sum (Ex: MEP works)
- By Negotiation
- Two stage tendering
- Construction by package base (enabling work, substructure)
What is Design and Build path and its types?
Desing and constrution by single contractor
Type
- Single entry - The contractor is appointed at the beginning to design and construct the project (without competition)
- Competitive entry - project documents would be produced outlining the client’s space and quality requirement (normally 3 -5 contractors) proposal includes; design, specifications, price and completion date
- Develop and design - partial or outline design is developed separately by the Consultant designer prior to inviting to submit their proposals.
Advantages and disadvantages of Desing & Buld?
ADVANTAGES; Cost certainty Single point responsibility Less time consuming More buildability
DISADVANTAGES; Cost of the project is high Quality may be compromised Variations are costly Bids are difficult to compare
What is management path?
Management Contacting: Management contractor is engaged by the client to manage the whole of the building process.
Construction Management:
Client employs the design team, with a construction manager engaged as a fee-earning professional to manage, programme and co-ordinate the design and construction activities and to facilitate collaboration.
Advantages and disadvantages of Management Contracting?
Advatages:
Early start, early completion
Contribution by experienced contractor to manage
Change can be done
Disadvateges:
Cost certainity
Management costs are high
Advantages and disadvantages of Contraction Management?
Advatages;
Direct contractual relationships
Can be started eary
Cost should be controlled directly
Disadvatages:
More contractual resposibilities
Cost certainity
Complex coordination & Communication
What is the difference between Management Contracting and Construction Management path?
Contractual link with package contractor. in Management contracting contractual links with the package contractors is with the Management contractor whereas in Contraction Management direct contractual link is with Client.
What is Design and manage path ?
It is a combination of Design & Buld and Management Contracting where tendering & selection done by scope designer and the the desing and construction done by Desing and managem contractor.
Advantages and disadvatages of Design & manage path?
ADVANTAGES;
Single point responsibility
Less time consuming
More buildability
DISADVANTAGES;
Quality/lost of design control
No Direct contractual control
