Procurement and Tendering Flashcards
What is Procurement?
Process of obtaining goods and services from external sources (Contractors)
Whilst taking into account the Client Objectives.
What is Tendering?
Bidding process for obtaining resources necessary to carry out the works or services.
What are the different types of Procurement?
- Traditional
- Design and Build
- Management Contracting
- Construction Management
What is meant by Traditional Procurement?
Sequential process whereby design is completed by the Client’s design team.
Competitive tenderers are invited.
Main contractor is employed to build what the designers have specified.
Why choose Traditional Procurement?
Client retains control over design.
Post contract changes can be controlled.
Design is complete before tendering.
Quality assurance.
Any disadvantages to Traditional Procurement?
Slower overall process, as only tendered once design is complete.
Design could receive criticism.
Costly process.
Why choose Design and Build (D&B) Procurement?
Risk transferred as contractor responsible for design, planning, organisation, control and construction of the works.
Contractor can be brought on earlier to assist with design.
Contractor’s Design Portion (CDP) element.
Under a D&B contract does the Contractor’s Proposals or Employer’s Requirements take precedence?
Contractor’s Proposals.
As they are the responses to the requirements and will state methodology of how to carry out works.
Lump sum price.
What are the disadvantages to D&B Procurement?
No assurance of quality.
No control over post contract changes.
What is MC & CM Procurement?
Management Contracting (Management Contractor employed to contribute their expertise to design and manage the project)
Construction Management (Employer places a direct contract with each of the trader contractors and utilises the expertise of a construction manager who acts as a consultant to coordinate with the contracts)
Difference is contractual link to Client.
What factors affect the Procurement route?
Time
Quality
Cost
Risk
Size and complexity
Market appetite
Existing relationship with Client
