Tender Returns and Evaluation Flashcards
What could selecting the wrong contractor lead to?
A bad client / contractor relationship
b) A dissatisfied client
c) An insolvent contractor
What are the employers requirements?
Sets out the clients requirements e.g. function, size, accommodation, quality, design
What are the contractors proposals?
The contractors response to the ERs
- They are the key document for the client to consider at the tender review
- Often includes plans, elevations, sections and typical details
- Layout drawings and specification for materials and workmanship
Why should you as a surveyor examine tenders?
Check tenderer has included everything, if not to ascertain whether they are still the lowest. - Component parts of tender will be used subsequently e.g. valuing variations- Errors in SOR, BOQ need to be identified and dealt with.
What should be examined and looked for in a tender?
Arithmetical errors (comp checking)
- Pricing errors (Items not priced, or same item but different prices in diff sections)
- Pricing methods (front, back loading)
- Qualifications
How do you evaluate the Contractors proposal for D&B?
- Not solely on price!
- Programme, design, contractors proposals, materials, and method statements, employees all have to be assessed.
- Checking for discrepancies from the ERs
- Easier if the design has already been progressed by the client prior to tender”
What criteria should be considered if not on price alone?
- Approach (method statement and programme)- Customer care (liaison with employer)
- Environmental (noise/ nuisance reduction proposals)
- Management (H&S)
- Resources
- Supply chain
- Technical
- D&D (aesthetics, LCC, flexibility in use)
What would you do if the lowest tender also has the lowest quality spec?
- The implications should be spelled out to the client e.g. higher maintenance costs
- It is the client’s decision ultimately
What is the danger of accepting a very low tender?
- They may have missed some of the works
- The quality may be lower than some of the other tenders had allowed
- This could lead to adversarial relationships”
What happens if tenders are returned and are higher than cost plan, pre-tender estimate?
Could be market problems, need to reconcile to identify major differences, VE process could take place on those elements.
What would you do if the lowest tenderer had submitting no pricing of the preliminaries, would you recommend he was accepted?”
I would request that these be submitted as fixed and time related prelims
What would you do if you considered a contractor submitting the lowest tender to be in financial difficulty?
- As part of the evaluation of tenders you would look at the company accounts (if not at PQ)
- Also request references from previous employers for work recently done
- See if you can find out if subcontractors were paid on time
- Ensure the contractor can provide a bond and that it is in place before commencing
On what grounds would you advise the client to re-tender?”
a) Not enough tenderers returned tenders
b) The tendering procedure is compromised
c) If tenders were not at the cost level required
How would you deal with a front loaded BQ?
- This is not a pricing error removing the front loading would not reduce tender price
- You can ask the contractor to adjust his pricing to remove it during the analysis
What is included in the Tender Report?
o Executive Summary o Comparison of Tender returns o Evaluation of each submission o Identify length of Programme o Any exclusions/clarifications o Equalised tender summary o Recommendations
What are the Rules of Tendering?
Late tenders not considered
Any non-compliant tenders may be dismissed
Abortive costs are not recoverable
Tender enquiry should state how long tender remain open for
OJEU rules apply
Tell me about your involvement in tendering one of your projects?
Preparation of the PQQ process and evaluation submissions
Preparing tender documentation including pricing documents
Mid Tender Interviews
How do you normalise tender returns?
I would refer to the RICS Tendering Strategies Guidance Note and refer to normalisation/equalisation
How can you analyse and score tenders?
This is typically done following the clients guidance on their own priorities. But this would typically include qualitative and cost sections
What would you do if a client asked you to change a tender score?
I would request the basis of this request as my recommendation should be a true reflection on my evaluation of the tender submissions.If I do not feel the request is justifiable I would refer the client to my TRR
What if your client isn’t happy with recommendation?
Still recommend but explain why others weren’t selected
What are the key documents the contractor returns?
Pricing Document Programme Quality submission CPs Comments on amendments Risks VE
What was done if there was any issues with the CPs?
ER’s should take precedence but any discrepency should be raised and dealt with in the PTQs
What level of design risk would you expect the contractor to include for?
Although Contractors don’t typically identify design risk as a separate item, I’d expect this to be at around 5% and included within their rates
How are errors dealt with?
Alternative 1 - Contractor to accept error and the price, if not withdraw
Alt 2 - Contractor opportunity to make good of this error
