Procurement & Tendering Flashcards
How do you develop an effective procurement strategy?
I develop a procurement strategy by:
Understanding client objectives for time, cost, quality, and risk appetite.
Reviewing project specifics (e.g., complexity, location, size).
Evaluating market conditions, including contractor capacity and current inflation trends.
Assessing programme constraints and whether early contractor involvement is beneficial.
Considering risk allocation and advising on how the contract can mitigate or transfer risk.
Selecting a procurement route (e.g., Traditional, D&B, Two-Stage D&B) that aligns with the client’s commercial goals.
The strategy is formalise
Are there other options beyond traditional and D&B?
Yes, alternatives include:
Management Contracting: A Management Contractor oversees trade packages on the client’s behalf.
Construction Management: The client holds direct contracts with trade contractors, guided by a Construction Manager.
Framework Agreements: Long-term relationships with selected contractors, typical in public sector works.
Partnering/Integrated Project Delivery (IPD): Collaborative models with risk/reward sharing.
Cost-Plus Contracts: Contractor is reimbursed actual costs plus a fee.
When would you use one procurement method over another?
Traditional is suited to projects where design certainty is required prior to contractor engagement.
D&B is appropriate where time is a priority, and risk is to be transferred to the contractor.
Management Contracting/Construction Management works well on complex, phased projects requiring flexibility and early trade contractor involvement.
Frameworks benefit clients with ongoing programmes of work (e.g., housing associations).
Selection depends on time, cost, quality priorities, and client experience.
When would you advise the use of two-stage tendering?
Early contractor involvement is needed to address buildability or value engineering.
The project programme is tight, and early enabling works need to start before design completion.
The client seeks a collaborative approach with the contractor during design development.
What are the benefits of two-stage tendering?
Faster project commencement.
Improved buildability input during design stages.
Allows for early engagement with supply chain on key packages.
Reduces risk of scope gaps compared to single-stage tendering.
How do you identify a client’s approach to time, cost and quality?
I assess this by:
Reviewing the client brief and funding arrangements.
Discussing key drivers during client engagement (e.g., Is fast delivery critical? Is high-end specification required?).
Understanding whether cost certainty or programme flexibility is the priority
How does management contracting differ from construction management?
Management Contracting: The Management Contractor holds the works packages contracts and manages trade contractors.
Construction Management: The client holds direct contracts with each trade contractor; the Construction Manager provides programming and coordination.
The key difference lies in who contracts with the trade contractors (client or management contractor).
In what situation would construction management be appropriate?
On fast-track or phased projects where overlapping design and construction is beneficial.
Where the client is experienced and comfortable managing risk.
On large-scale, complex projects (e.g., airports or major commercial developments) requiring direct control over trade packages.
What is your understanding of PFI as a form of procurement?
PFI (Private Finance Initiative) involves private sector investment to finance, design, build, and operate public sector infrastructure (e.g., schools, hospitals) over a long-term concession (often 25-30 years). The public sector repays via unitary charges.
PFI allocates construction and operational risks to the private sector and is now less common following government reforms
What are the advantages of a two-stage tender process to a client?
Programme certainty via early engagement with the contractor.
Early cost advice on buildability and value engineering.
Reduced risk of disputes through collaborative working during the second stage.
Ability to secure key packages early, mitigating market volatility risks.
What factors are considered in deciding the most appropriate procurement route for a project?
Client priorities (time, cost, quality).
Risk allocation strategy.
Complexity of design and construction.
Level of design completion.
Market conditions and contractor availability.
Funding arrangements and need for early cost certainty.
What current challenges is Covid and/or Brexit bringing to Procurement & Tendering?
Extended lead times due to material and labour shortages.
Supply chain disruptions, particularly for imported goods (e.g., steel, MEP equipment).
Cost volatility, driving use of fluctuation clauses.
Increased need for early engagement with contractors to secure resources.
Tender risk premiums due to market uncertainty.
How did you develop the tender documentation?
To develop the tender documentation, i included a draft contract which included the LADs, a preliminaries document, a pricing document, design and spec information any pre construction information, form of tender and an ITT which included the terms of tender and the deadline.
What did you check when you opened tenders?
At tender opening, I checked:
That each tender was submitted on time and in accordance with Instructions to Tenderers.
That the Form of Tender was completed, signed, and included.
Whether the pricing documents were fully populated and for any errors.
Compliance with commercial terms, such as validity period and confirmation of adherence to the draft contract conditions
Did you carry out both technical and arithmetical checks?
I only carried out the commercial checks and my colleague checked the quality aspects
If a tender had an arithmetical error, would you allow the contractor to fix it?
Yes, I would allow the contractor to correct any arithmetical errors as the project was in accordance of alternative 2 as set out in the JCT practice note 2017 which allows tenderers to revise their offer if errors are found.
How did you go about the tender analysis?
I went about the tender analysis by creating a comparison document which put each tenderer side by side, I was then able to create tender queries which addressed clarifications or missed scope, which i then sent to contract to populate. I then created a normalisation document in which i normalised cost. Once tender queries were received I was able to create a tender report.
Why did you advise a Minor works contract?
I recommended a JCT Minor Works Contract (MWC) due to:
The relatively low complexity and smaller scale of the Colchester Garrison project.
The design being fully developed and complete prior to tender, making a traditional, client-led approach suitable.
The absence of significant Contractor’s Design Portions (CDP).
The client’s preference for a straightforward contract with less administrative burden than larger JCT forms.
Why did you advise against a D&B contract?
I advised against a JCT Design & Build (D&B) Contract because:
The client wished to retain full design control, which was already well-advanced and coordinated by their appointed design team.
The project was relatively low value, and D&B would have introduced additional contractor design responsibilities, adding unnecessary procurement complexity and cost.
There were no substantial CDP elements requiring contractor input, making D&B unjustified in this instance.
Using D&B may have also delayed procurement due to the need to prepare Employer’s Requirements and Contractor’s Proposals, which were unnecessary given the project’s nature.
What did you include in your tender recommendation?
An executive summary, the tender agenda which included who tendered, tender docs issues and who returned, then a table of tender received which was followed by details of the actions that happened once tenders were received, normalised tender comparison, an evaluation and conclusion which included my recommendation to the client
