Procurement and Tendering - Level 2 Flashcards
Manchester Project - Traditional 2 stage negotiated procurement route - Using one subcontract package as an example, take me through the tendering process from invitation to selection of a subcontractor.
The subcontractors for the floor finishes package:
- were invited to tender on email, where the details of the project were issued along with the Stage 4 design information. They were given a deadline to return their tenders where tender returns were tracked through a tender event schedule.
- Once returned, the tenders were compared side by side using a CSA which was used to identify scope gaps and opportunities where these were highlighted in tender query documents and issued to the subcontractors for review.
- These tender query documents were issued to and subcontractor and reviewed multiple times until I was confident that all the scope had been captured and that final prices were returned.
- Another analysis was done by comparing the CSA’s.
- In this instance, the most cost competitive subcontractor was successfully awarded the tender where this was confirmed via a phone call and then in an email until the subcontract documentation was put together.
- The other subcontractors were informed as to why they was not successful on a phone call and via email.
Tell me about the tender documents that you produced.
I produced letter of invitation to tender via email to the subcontractors, which contained details about the project such as client details, site address, project value, contract type, scope of works, site logistics plans, and the Stage 4 design information.
I also produced a tender tracker to track the status of tender returns from subcontractors and to demonstrate the locality of the subcontractors to the project.
How did you decide on the pricing document to use?
When I joined the project the pricing document was already selected which was a detailed Contract Sum Analysis. I would continue to use this document if I was to decide, as this document provided detailed breakdowns of each work package such as Mechanical and Electrical works where this provided greater confidence when reviewing tender returns and provided a clearer, fairer basis for the grounds of future valuations of works.
Other options are:
- Schedule of Works
- Bill of Quantities
The Contract Sum Analysis would also form as a part of the main contract.
Take me through the process of analysing tender returns and making recommendations.
- Tender returns were analyzed using a tender comparison document where the tenders were inputted and compared side by side which highlighted differences in costs and any scope gaps.
- This therefore assisted in generating post tender queries which were inputted into a separate document to highlight scope gaps, areas of opportunity for costs, logistical requirements, procurement of materials and risks to programme.
- This was undertaken along with tender interviews for the larger subcontractors via teams.
- This process therefore ensured that the tenders were compliant with the specification, competitive and that the subcontractors could deliver based upon the programme and logistic requirements.
- Once this was realized, these subcontractors were put forward as part of ISG’s recommendation to the client which highlighted the tender comparison, ISG’s recommendation criteria, reasons for recommendation and the pre-award checklist.
Shackleton House Project - What pricing document did you use for this? Explain.
A contract sum analysis was used for this project as it was a design and build contract.
Tell me about your experience in the procurement of subcontractors. Tell me how the shortlist of subcontractors was compiled?
The Estimating team provided a tender bid list which demonstrated the subcontractors that had returned their bids for the project. These subcontractors were engaged to provide tenders that were updated. I also used the ISG Supply Chain Database to contact other subcontractors that I was familiar with to also tender for the project.
How do you decide on the appropriate procurement route?
Selecting and evaluating the most suitable procurement methods and strategies for the project involves considering various factors such as project complexity, budget, timeline, and risk tolerance.
