Procurement & Tendering Flashcards
What are the four main procurement routes?
Traditional – Project is designed and is tendered as a fully developed scheme – Client retains design responsibility.
Design & Build – Contractor is responsible for completing the design and constructing the works, design risk transferred to the Contractor.
Construction Management – Client directly appoints multiple subcontractors instead of a single main Contractor.
Management Contracting – Client appoints a management contractor to manage the works, who in turn appoints trade contractors.
What are the different tendering strategies?
Single Stage – tender documents are issued to competing contractors who bid based on identical information.
Two Stage – Client provides an outline design for Contractors submit a bid based on their prelims, OH&P percentage and PCSA fee. Contractor chosen based upon quality of their bid and join the design team through a PCSA to progress the design.
Second stage is then negotiated to agree a final price, contract conditions and programme.
Negotiated – single-stage carried out between the Client and a single contractor.
What is a framework agreement?
An umbrella agreement that a party enters into with one or more suppliers (contractors for example) to procure goods and services. They typically last 4 years but this is determined by the Client.
What are the advantages and disadvantages of a framework agreement?
Advantages:
- They can help develop stronger relationships with parties and encourage collaboration
- They can speed up the procurement process
- Repeat Work
Disadvantages:
- Contractors can become complacent
- Can take a long time to bid for a FA and not get it
- May restrict innovative new suppliers
What governance is there around public sector vs private sector?
For public procurement there are regulations and policies in place to be followed. This usually involves registering the project on the find a tender platform for contractors and suppliers to openly bid.
What are the advantages and disadvantages of design and build?
What are the advantages and disadvantages of traditional?
What are the advantages and disadvantages of single stage?
What are the advantages and disadvantages of two stage?
What is an EOI? What is included in an EOI?
A document outlining a project and requesting a response from prospective contractors on whether they are interested in tendering the project.
Within an EOI you’d expect:
- Project name and location
- Client details
- Scope of Works
- Procurement Route
- Approximate Value
- Form of Contract
- Key Programme Dates
- Existing Drawings
Talk me through the PQQ process on The Connection?
Following return of the EOI a list of tenderers was established.
A Pre-Qualification Questionnaire was produced and issued which asked the contractors to provide information on their financial records, health and safety information, insurances, resourcing and relevant experience.
The PQQs were returned, and a weighted scoring matrix was produced and distributed to the design team
The returned scores were tabulated, and I produced a report outlining the process to the client and concluding with our recommended contractors to put forward.
I sent the report to the Client and arranged a meeting to follow it up and present in more detail.
On Mill Studios, what information was your pre-tender estimate based upon?
RIBA Stage 2 design information.
What is the difference between naming and nominating subcontractors?
Named Subcontractor – Client can influence selection of subcontractors, but contractor bears responsibility for performance and has the right to reasonably object to all of them.
Nominated Subcontractor – Client requests use of a specific subcontractor. Contractor must use this subcontractor, but Client bears responsibility for performance.
What are the provisions within the JCT D&B 16 contract for naming and nominating subcontractors?
Naming – Schedule 2 Supplemental Provisions Part 1.
Nominating – no provision – needs to be written into the Schedule of Amendments.
What disadvantages did you advise the Client around nominating a subcontractor?
- Contractor relieved of subcontractor design liability.
- There would be a risk the subcontractor would not comply with British Standards and Building Regs if from outside the UK.
- Any delay caused by the nominated sub contractor may entitle the contractor to loss and expense and extensions of time claims.
