Procurement & Tendering Flashcards
What is the difference between tendering and procurement
“Procurement is the obtaining of goods and services
Tendering is the process of obtaining price and resource”
What tender strategies have you found most effective through the pandemic and why
“Two stage or negotiated
Order books are full
removes risk for contractor of spending time and money
Hesitancy to price on single stage”
What 3 factors are evaluated in deciding the procurement route
“Time
Cost
Quality”
RISK
What is a Form of Tender
Formal acknowledgement that they understand and accept the terms and conditions
What is a certificate of bone fide tender
Acknowledgement that this is a realistic and accurate bid
What has replaced OJEU
“Find a tender which is an online platform
No need to post on OJEU”
What does a tender report consist of
"Cover QA/QC Basis of tender Summary of returns received Analysis/equalisation done Analysis back to estimate Summary and recommendation"
If a contractor submitted their return at 12:02 and the deadline was 12 what would you advise the client to do
“Make the client aware
Proceed with analysis
Does not seem fair and reasonable to exclude the contractor for 2 minutes”
What are some advantage of 2 stage tender process
“Early contractor design input
Integrated design team
Greater cost certainty
Cost savings”
Is the lowest price always the tender we should recommend
No, We should recommend (dependent on scoring criteria) the price that represents the a value that the contractor will be able to complete the works competently and safely
How would you deal with an error in a tender submission
“JCT Practice Note
Alternative 1 – Standby or withdraw
Alternative 2 – Standby or Adjust”
What RIBA stage would you tender the work for a traditional contract
RIBA Stage 4 - Technical Design
What would the tender consist of
"FOT Instructions to Tenderers Contract Conditions Prelims Amendments Full set of drawings, specs etc Pricing schedule Appendices"
What is traditional procurement route
“Client maintains control of design
Contractor takes risk for pricing of the drawings not the design
If design not complete or subject to change contractor will be eligible for variation
No risk premium from the contractor
Longer programme
Easy to compare tender returns”
What is a D&B procurement route
“Design and build where the contractor is responsible for design and construction
Single point of responsibility for design and construction
shorter programme as design and construction over lapped
Programme certainty
Novate designers
ER’s need to be clearly defined
Longer evaluation period required to ensure CP’s meet ER’s
Expensive post contract changes”
What is management contracting
“Quick method of procurement
Final cost not known until completion
No motivation for the contractor to reduce costs
quick start on site
early contractor input
design can run into construction”
What is construction management
“Client employs designers
Construction works carried out by trade contractors
Client in direct contracts with trade contractors
quick SOS
Early input can help
Good client brief must be provided
CM must have good understanding of what is required”
What considerations to you need to give to time cost quality
“You cant satisfy all.
Scheme can be done on a short programme for low budget but quality will suffer
High budget high quality will take time
“
What is the other consideration other than time cost quality
Risk - How risk averse is the client
Why would project size and complexity affect procurement & tendering
“You may need to go through additional steps (PQQ, EOI)
You may need early contractor engagement (Two stage)
In order to manage risk or get contractor interest may need early engagement
“
What is the merits of a two stage over a one stage
“Early contractor engagement
Provide greater cost certainty as the contractor involved in design and spec
Reduces risk of delay as the contractor can feed into the programme”
What is a PQQ, when would you use one
“PQQ is a way to ensure that the contractors the tender is issued to have the requisite skill and experience
Asks a series of questions to ascertain level o knowledge”
What is an expression of interest
EOI is tenderers response to a scheme to confirm interest in tendering
How does negotiated open book work
“One contractor procured (based on experience)
Selected main packages
Contractor shared the procurement details and VFM processes that had been gone through to select sub contractors
This ensures market testing and VFM
Not always cheapest price”
What is a mini comp an how does it work
“Consultants off a framework
Price only (already fulfilled quality aspect through framework)”
How do you assess the most economically advantageous tender
“Cost of works within benchmark
Costs not too low (price reflects the works and current market)
Response to quality questions
Requisite skill and experience”
Would you recommend negotiation to a client without frameworks in place
“Depends on market conditions
Time available
Relationship to contractor
Scheme complexity”
How do you get VFM through a negotiation
“Through the use of framework/framework rates
Check against benchmark rates
Review Abnormals and assess the risk and value of these”
How do you assess/normalise a tender
“Use the average cost or PTE to normalise cost
Use cost plan as benchmark
Highlight high/low out liars
Prov sums & prelims should be equalised also
Risk allowances should also be analysed”
Why do you have robust tendering strategies
“1. Accountability
- Auditable
- Ensure everything is captured
- Parity
- Reduced claims of corruption
- Correct price paid for works”
What period should be given for assessing tender periods
“Depends on
Complexity
Size
Market conditions
Traditional with BOQ - 1month
D&B not fully prescribed - 3-4 months
D&B clearly defined - 6-8 weeks
The tender period should not be extended as a standard matter of course”
What have you seen recently in the market from tendering & procurement
“Difficult to get contractors to price for single stage
Negotiated or two stage the preferred (better chance of work, without cost of tendering)
Unable to get contractors to fix price for more than 12 months want fluctuations”
What financial basis can works be procured
“Fixed price
Re-measurable
Reimbursable
Target cost”
What are the UK Planning procedures?
Legal process to determine if a development should be permitted.
dealt with by planning officers who review current guidance to advise on if granted and what conditions should be granted along with the planning
Has statutory durations for when these should be resolved;
Simple development - 8 weeks
Technical details - 10 weeks
MAjor/complex development 13 weeks
What is a development appraisal
Financial appraisal of the development. Understanding of the full financial cost of the scheme (land, planning etc & Construction) to what the return can be on the investment. through rents or sales and the required tenure split
