Procurement & Tendering

Question 1

What is the difference between tendering and procurement

Answer 1

“Procurement is the obtaining of goods and services

Tendering is the process of obtaining price and resource”

Question 2

What tender strategies have you found most effective through the pandemic and why

Answer 2

“Two stage or negotiated

Order books are full

removes risk for contractor of spending time and money

Hesitancy to price on single stage”

Question 3

What 3 factors are evaluated in deciding the procurement route

Answer 3

“Time

Cost

Quality”

RISK

Question 4

What is a Form of Tender

Answer 4

Formal acknowledgement that they understand and accept the terms and conditions

Question 5

What is a certificate of bone fide tender

Answer 5

Acknowledgement that this is a realistic and accurate bid

Question 6

What has replaced OJEU

Answer 6

“Find a tender which is an online platform

No need to post on OJEU”

Question 7

What does a tender report consist of

Answer 7

"Cover
QA/QC
Basis of tender
Summary of returns received
Analysis/equalisation done
Analysis back to estimate
Summary and recommendation"

Question 8

If a contractor submitted their return at 12:02 and the deadline was 12 what would you advise the client to do

Answer 8

“Make the client aware

Proceed with analysis

Does not seem fair and reasonable to exclude the contractor for 2 minutes”

Question 9

What are some advantage of 2 stage tender process

Answer 9

“Early contractor design input

Integrated design team

Greater cost certainty

Cost savings”

Question 10

Is the lowest price always the tender we should recommend

Answer 10

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

Question 11

How would you deal with an error in a tender submission

Answer 11

“JCT Practice Note

Alternative 1 – Standby or withdraw
Alternative 2 – Standby or Adjust”

Question 12

What RIBA stage would you tender the work for a traditional contract

Answer 12

RIBA Stage 4 - Technical Design

Question 13

What would the tender consist of

Answer 13

"FOT
Instructions to Tenderers
Contract Conditions
Prelims
Amendments
Full set of drawings, specs etc
Pricing schedule
Appendices"

Question 14

What is traditional procurement route

Answer 14

“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”

Question 15

What is a D&B procurement route

Answer 15

“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”

Question 16

What is management contracting

Answer 16

“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”

Question 17

What is construction management

Answer 17

“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”

Question 18

What considerations to you need to give to time cost quality

Answer 18

“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
“

Question 19

What is the other consideration other than time cost quality

Answer 19

Risk - How risk averse is the client

Question 20

Why would project size and complexity affect procurement & tendering

Answer 20

“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
“

Question 21

What is the merits of a two stage over a one stage

Answer 21

“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”

Question 22

What is a PQQ, when would you use one

Answer 22

“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”

Question 23

What is an expression of interest

Answer 23

EOI is tenderers response to a scheme to confirm interest in tendering

Question 24

How does negotiated open book work

Answer 24

“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”

Question 25

What is a mini comp an how does it work

Answer 25

“Consultants off a framework

Price only (already fulfilled quality aspect through framework)”

Question 26

How do you assess the most economically advantageous tender

Answer 26

“Cost of works within benchmark

Costs not too low (price reflects the works and current market)

Response to quality questions

Requisite skill and experience”

Question 27

Would you recommend negotiation to a client without frameworks in place

Answer 27

“Depends on market conditions

Time available

Relationship to contractor

Scheme complexity”

Question 28

How do you get VFM through a negotiation

Answer 28

“Through the use of framework/framework rates

Check against benchmark rates

Review Abnormals and assess the risk and value of these”

Question 29

How do you assess/normalise a tender

Answer 29

“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”

Question 30

Why do you have robust tendering strategies

Answer 30

“1. Accountability

2. Auditable
3. Ensure everything is captured
4. Parity
5. Reduced claims of corruption
6. Correct price paid for works”

Question 31

What period should be given for assessing tender periods

Answer 31

“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”

Question 32

What have you seen recently in the market from tendering & procurement

Answer 32

“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”

Question 33

What financial basis can works be procured

Answer 33

“Fixed price
Re-measurable
Reimbursable
Target cost”

Question 34

What are the UK Planning procedures?

Answer 34

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

Question 35

What is a development appraisal

Answer 35

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