Procurement & Tendering Flashcards
JCT Minor
- Projects with a short duration and
- simpler in nature.
- Not as comprehensive as IC or SBC
- No sectional completion
- Limited claims provisions
e.g. Refurb sub 6 months
When would Intermediate be required? Project example
- Where fairly detailed contract provisions are needed, but
- without complex building service installations or other specialist work.
- e.g. Whitwell 18 houses
JCT SBC
- Larger / complex projects where detailed contract provisions are necessary
JCT SBC/ Q
- BoQ are used to specify quantity and quality of work.
- Employer takes risk of quantity errors in BoQ.
- Facilitates easiest tender comparisom
xQ
- Drawings and specifications are used.
- Contractor takes the risk of price and quantity.
- Not complex enough to require BoQ
Design & Build
- ER’s detail the requirements where the contractor is to complete the design e.g. Stage 3 (Concept) to Stage 4 (Technical)
- More expensive than traditional but contractor takes design risk = Cost certainty.
- Single contact (contractor).
- Quicker appointment of contractor than Traditional.
- Slow tender analysis 6-8 weeks.
- Loss of design control/quality.
Procurement Report - Meole Brace
⦁ Exec summary
⦁ Intro & Client requirements
⦁ Options / overview: D&B, Traditional
⦁ Comparison and Risk allocation
⦁ Conclusion - D&B
Characteristics of the Construction Management procurement
⦁ Similar to MC but client enters into contract with trade contractors directly.
⦁ Typically used by experienced clients who wish to retain control (also risk) of the project.
⦁ CM prepares:
- Programme
- Site setup
- Tender the trade packages
- Co-ordinate the works
Initial Report Key Components
- Cost
- Programme
- Contract
- Statutory
- Design
- Collateral Warranties
- Insurances (CAR & PI)
Single Stage Tendering
- Cost certainty achieved quickest. (Two stage; MC is appointed with no agreed price)
- Appropriate when design is uncomplicated i.e. Contractor unlikely to include high risk allowance to account for design revision
- Cost is established early
Two Stage Tendering
- Separates process of selecting a contractor and determining a price for the works.
- Appointed on quality of team, prelims price, OHP
- PCSA to help complete design as consultant.
- If Client appoints MC on second stage Trade contractors make up contract price.
Why use Two stage? Pros Cons Important aspect
- Ads; Buildability & program advice,
- start on site early (design & construction overlap),
- client input on trade contractor
- Dis; Little cost certainty,
- additional pre-con. Fees,
- no competition in 2nd stage,
- wasted time if does not go to 2nd stage
- Why use – Complex project/building.
- Efficient construction program needed. (Minimise disturbance if work impacts on public or existing use of area)
*Ensure abortive process is made clear – payment
Procurement Overview:
Quickest Overall Procurement Route –
Cost Certainty
Most Economic (Fixed Price and Overall)
Greatest Client Risk
Least Client Risk
Least Control of Quality
- Quickest Overall Procurement Route – CM; works can commence as design is being developed. CM quicker than Man. C. as client can engage trade contractors straight away (Management C, must be appointed first).
- Cost Certainty – D&B; Contractor accepts design risk.
- Most Economic (Fixed Price) – Traditional; design is fully developed at tender (easiest to price -minimal risk pricing)
- Greatest Client Risk – CM; take risk for the performance of individual trade contractors
- Least Client Risk - D&B; Contractor has design risk
- Least Control of Quality – D&B; Client relinquishes control of design team to MC.
Different types of Financial Basis
- Lump Sum Contracts contract sum is determined before construction work is started D&B, SBCxQ/Q, IC, MW
- Measurement Contracts contract sum not finalised until after completion – based on remeasurement to agreed basis SBC/AQ MTC
- Cost Reimbursable contract sum on basis of prime cost of labour/plant/ materials with additional amount for overheads and profit PCC
Management Contracting
- JCT Management Contract
- Ads;Quick to start (design & construction overlap).
- MC technical input.
- Design changes until packages let.
- Dis; Little cost certainty.
- No incentive for MC to reduce cost.
- Fixed fee (% of prime cost).
- Advises on design and programme.
- MC programmes work and contracts trade packages.
- Complex and/or high value work (£50m+) where a main contractor would be reluctant to take on the risk for the entire project.
Competitive Tendering
- Commercially favoured as benefits from both selecting preferred contractors and
- competition.
Negotiated Tender
Why use
Downside
- Suitable contractor is identified and negotiated with directly.
- Why use? Existing relationship. QS is able to demonstrate tender return is good value based on comparable works.
- Might no be able to readily demonstrate value due to lack of comparison to other tenderers
serial tendering
- Similar works required on an on-going basis - e.g. road repairs, estate maintenance
- avoid re-tendering costs
- establish ongoing relationship
- Based on tendered rates
- Contract administrator instructs work requirements
How would you deal with tender errors?
View on approaches
Where would this be stipulated?
- JCT alternative 1; contractor either to confirm the error or withdraw their tender.
- Alternative 2 allows the contractor to confirm, AMEND or withdraw.
- View on 1 & 2; 1 is inflexible but arguably the tender process should be carefully considered and allowing change may discourage care.
- Option stated in ITT
UPS Procurement Report
⦁ Exec summary
⦁ Intro
⦁ Options / overview: D&B, Traditional
⦁ Comparison and Risk allocation
⦁ Conclusion - Traditional (have CONTROL OF DESIGN TEAM)
