Procurement & Tendering Flashcards
What is the difference between procurement and tendering?
Procurement is the act of obtaining goods/services
Tendering is how the successful contractor is selected.
What is traditional procurement?
Design is fully complete prior to going out to tender
The contractor is appointed to build the existing design
What are the advantages of Traditional?
Transparent and competitive
Design led ensures quality
Familiarity in the industry
Client keeps control of the design
Price certainty
What are the disadvantages of Traditional?
Slower than other methods
No design input from contractors
Client holds risk of design
Dual point of contact
What is Design & Build procurement?
The contractor is responsible for completing design and construction
The contractor designs in line with the ERs.
What are the advantages of D&B?
Single point of responsibility
Improved buildability
Quick start on site
Client doesn’t carry risk
What are the disadvantages of D&B?
lower quality - functionality
Preparing ERs can be challenging
No cost certainty until later
How can you ensure quality on a D&B?
Detailed ERs
Novation
Client monitoring team
What is Management Contracting?
A management contractor appointed to manage the project.. The MC enters into contract with sub contractors. When price is not a priority.
What are the advantages of MC?
Early start on site
Single point of contract
Flexibility of design
Design, procurement and construction all flexible.
What are the disadvantages of MC?
No price certainty until final package let
Little incentive for MC to get best price (can have performance bond)
What is Construction Management?
Client manages the project and holds contractual links with sub contractors
For early start on site and price not a priority
Difference between BoQ with and without quantities?
With:
Risk of miss-measure
Time consuming to produce
Easier to review at tender stage
Easier to build up rates
Without:
Vice versa of the above.
What is the difference between Construction Management and Management Contracting?
CM: Holds contractual links
MC: MC requires a fee
MC: Responsible for programme and quality
What is a framework agreement?
An agreement put in place that allows the client to gain a service without a lengthy tender process
Advantages: Reduce time and cost/long term relations
Disadvantages: Reduces competitiveness/contractor might not be right for the job.
What is a Measured Term Contract?
For minor and repetitive works.
What is a Form of Tender?
Signed by the contractor.
Formal acknowledgement that they accept the terms and conditions.
What is open tendering?
Anyone can apply (no PQQ)
Very competitive
Promotes transparency and fairness
Long time to evaluate
Non compliant tenders
What is selective tendering?
A short list drawn up by project team
Ensures quality and relevent experience
Trad 3-6 / D&B 3-4
Less competitive than open
Less fair and transparent
What is negotiated tendering?
Negotiating tender with one contractor
Ensures quality
Good relationship
Less competitive
Hard to show value for money
What is a PQQ?
Pre-Qualification Questionnaire
Minimise risk of contractors withdrawing or have relevant experience and resources
Questionnaire - evaluates experience; current workloads
Company details - financial; insurance; H&S policies
What is a Pre-Tender Estimate?
A final estimate based on the tender documents
Client can review final cost
Comparison for returned tenders
What is an ITT?
Invitation to Tender
Invitation for a contractor to tender the works.
Hardcopy or E-portal
Inc - instructions; project info; programme
What tender docs do you include in a tender pack?
ITT
FoT
Contract/Amendments
Preliminaries
ERs/Spec
Drawings
PCI
Reports/Surveys
Policies
