Procurement & Tendering

Question 1

What is single-stage tendering?

Answer 1

A straightforward request and response process where all contractors are issued the same package of tender information and asked to return a compliant bid for undertaking construction. A successful contractor is then chosen based on the tender returns.

Question 2

What is two-stage tendering?

Answer 2

Client seeks to appoint a contractor on a outline scope of works that is not fully designed yet.

Client works with appointed contractor to develop design/scope and reaches an agreed price.

It can be used to obtain the contractors buildability expertise.

Question 3

What is a negotiated tender?

Answer 3

A single-source process whereby a single-stage tender is carried out with a limited number of contractors (often one) who return a compliant bid. The bid is then reviewed by my client’s team and negotiations are undertaken with the contractor regarding their response. This key benefit of this strategy is the speed of the process, but ensuring best value can be difficult.

Question 4

What should be considered when selecting a procurement route?

Answer 4

Time
Cost
Quality
Control
Risk

Question 5

You note that you are aware of Design and Build Contract; what is D&B?

Answer 5

Contractor is responsible for design, planning , organisation, control and construction of the works to the employer’s requirements.

Question 6

How does D&B procurement work (the process) ?

Answer 6

Employer provides the Employer’s Requirements (ER’s) and Contractor responds with Contractor’s Proposals (CP’s).

Question 7

When might D&B be appropriate?

Answer 7

Where early start on site is required.

Where the Client wishes to minimises their risk.

For technically complex projects.

Question 8

What would you include within a tender package?

Answer 8

Instructions to the Tenderer:
- Tender Due Date
- Form of Tender
- Submission Medium
Conditions of Contract
Pricing Document
Req. Specification
Drawings
Bonafede Certificate
H&S Information
Pre-Construction Information (PCI)

Question 9

What would you include in a PQQ?

Answer 9

Company Turnover
Company Experience
Company Accounts
Company H&S Record
Management & Org Structure
Proposed Project Staffing w. CVs
Req. Bonds and Warranties
Details of Contract particulars

Question 10

What is a PQQ?

Answer 10

Pre-Qualification Questionnaire

Question 11

What are the main routes of procurement in construction?

Answer 11

Traditional - Client owns design and hires contractor to build.

Design & Build - Contractor owns design, planning & construction. Enables early start onsite and transfers risk to contractor.

Construction Management - Client retains greater control of project, construction manager is fee-earning professional (embeded in design team).

Management Contracting - Management Contractor engages (and pays) trade contractors, delivers no work themselves.

Construction Mngmnt Example - Millharbour w. Avison Young & Meadow Res