Procurement & Tendering

Question 1

What is Procurement

Answer 1

Overall process of obtaining goods and services

Question 2

What should be considered when selecting a procurement route

Answer 2

Project specifics

Cost, time and quality and risk

Question 3

Main procurement routes

Answer 3

Design & Build
Management Contracting
Construction Management
Traditional

Question 4

Traditional Procurement

Answer 4

Design is fully completed by the design team before it is tendered.

Question 5

Advantages and Disadvantages of Traditional

Answer 5

Advantages: fair and competitive, design led, price certainty.
Disadvantages: longer project duration (relative), no contractor input in the design.

Question 6

Design and Build

Answer 6

Contractor is responsible for the design, coordination, organisation and construction of the employers requirements.

Question 7

Advantages and Disadvantages of D&B

Answer 7

Advantages: overlapping design and construction, single point of responsibility, earlier start, benefit of contractor experience.
Disadvantages: client needs to prepare a sufficient brief, early concept design commitment, more difficult to compare tenders

Question 8

What is novation

Answer 8

A new contract transferring the rights from one party to another, like design rights.

Question 9

Management Contracting

Answer 9

Management Contractor is employed to provide help with the design and manage construction.

Question 10

Advantages and Disadvantages of Management Contracting

Answer 10

Advantages: shorter project duration, overlapping design and construction, contractor contribution to the design.
Disadvantages: price of works not received until last package is let, little incentive for MC to reduce costs

Question 11

Construction Management

Answer 11

Employer takes direct control of the trades and employs a construction manager to coordinate.

Question 12

Advantages and Disadvantages of Construction Management

Answer 12

Advantages: overlaps design and construction, CM can contribute to the design.
Disadvantages: price uncertainty until last package is let, needs an informed active client, lots of consultants and people to deal with for the client.

Question 13

Difference between MC and CM

Answer 13

CM client is in direct contractual relationship with trades whereas MC is not.

Question 14

What are KPI’s

Answer 14

Key Performance Indicators

Enable all those involved to determine how they are performing. Benchmarking performance.

Question 15

What is Tendering

Answer 15

Method to obtain resources to carry out the work.

Question 16

Single Stage

Answer 16

Pre-Selected Contractors submit a lump sum

Question 17

Two Stage

Answer 17

Separates the contractor selection to the cost of the package

Question 18

Single Stage Advantages and Disadvantages

Answer 18

Advantages: ensures only capable and approved contractors submit, client gets lump sum for the work.
Disadvantages: when tendered on incomplete info, separates design and construction.

Question 19

Two Stage Advantages and Disadvantages

Answer 19

Advantages: early contractor involvement, potential earlier start time.
Disadvantages: contractor may take advantage of cost, cost certainty not achieved.

Question 20

Negotiation

Answer 20

When a client has a preferred contractor, leading to no competition for tender.