Procurement & Tendering Flashcards
What is tendering?
The activity of obtaining a contractor and a price
What are the main tendering strategies?
Single stage
Two stage
Negotiated
What is single stage tendering?
Invitation to tender issued to multiple contractors who bid for the works.
The bids are then analysed and scored in respect to cost and quality, before a single contractor is declared the preferred contractor.
How does a single stage tender work?
- Issue tender documents to prospective tenderers
- Assessment and award
- Initiated contract for works
When would you recommend a single stage tender?
- Price competition (cost)
- Traditional procurement
What is a two-stage tender?
Where the tender is split into two stages
The first stage is selects a preferred contractor to develop design develop under a pre construction services agreement
The second stage is where the contractor helps develop the design and offer a price
When would you advise to use a two-stage tender?
- Complex projects (buildability)
- Reduce risk
- Time constraints (overlaps design and tender period at RIBA Stage 4)
What is negotiated tendering?
Effectively a single stage tender with one contractor
When would you recommend a negotiated tender?
- Speed of obtaining a price (time)
Is there any guidance for tendering?
RICS guidance notes
JCT Tendering notes
What is the importance of a pre-tender estimate?
- Affordability
- Comparison document
What is the risks of an inadequate tender period duration?
- Risk of misunderstanding
- Risk of withdrawals
How do you deal with tender queries?
- Forward them to the correct person
- Collate them
- Issue back to all tenderers
Would a lack of tender queries raise concern?
Yes, it could suggest that the tenderers have not fully understood the information
How does tendering work?
- Preliminary enquiry
- Invitation to tender
- Assessment and award
What is included in a pre-qualification questionnaire?
- Opening letter
- Project information (project, consultants, start date)
- Questionnaire (technical capability, financial standing, management structure, insurances)
Why do we use a pre-qualification questionnaire?
To pre-select suitable tenderers
What is the sufficient amount of contractors for a pre-qualification questionnaire?
JCT Tendering recommends 3-6 tenderers
What happens to the contractors not selected for the tender following the PQQ?
- They should be informed with detailed feedback based on scoring matrix
How long would you allow for a pre-qualification period?
- It would depend on the project
- More complexity may require more time
- Generally ranges between 2-4 weeks
What is traditional procurement?
How does traditional procurement work?
When might a traditional procurement be suitable?
What are the advantages of traditional procurement?
