Procurement (Contractor Selection Method) Flashcards
List the 4 types of Contractor Selection Method:
- Single Stage Tender
- Two Stage/Multi Stage Tender
- Negotiation
- On Site and Off-Site Overheads + Profit (P & G and Margins)
What is a competitive single stage tender?
- Prices are sought from serval contractors (1-6) at the same time within a set contractual format.
- Identical information is suppled to all tenderers.
- Any changes in contract are sent to all tenderers in a NTT (Notice to tenderers).
What are the disadvantages of a single stage tender?
- A slow and linear process.
- Works only begin after a successful tender is chosen.
What are the advantages of a single stage tender process?
- Competitive and fair way of finding a contractor.
- Results in a lower/competitive price.
What is the negotiation selection method?
1-2 contractors price the job in an open manner with discussion between the parties.
What are the advantages of the negotiation selection method?
Can allow for alternative design and construction approaches to be considered which may save time and/or cost.
When would a negotiation selection method be used?
Where contractors with specialist skills are required, or it is difficult to price the project.
What is the two stage or multi stage tender selection method?
When work is split into packages and tendered separately to enable the work to start on site prior to the design being finalised - fast track method.
What is the advantage of the multi stage tender?
- Work on site can start earlier - project finishes earlier.
-The expertise of the contractor is available earlier for the design team.
What is the On Site and Off-Site Overheads + Profit (P&G and margins) contractor selection method?
Where the contractor agrees to be paid for the establishment and running costs of a job, plus and agreed profit margin.
What are the advantages of the P&G and margins selection method?
- Fast Track Method
- Contractor joins the design team near the start and is still chosen in a competitive manner.
