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Procurement and Tendering > Tendering > Flashcards

Tendering Flashcards

1
Q

What is tendering?

A

Bidding process for construction work / services. Part of procurement

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2
Q

What are the types of tendering?

A

Single stage
Two stage
Negotiated

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3
Q

What guidance is available for tendering?

A

JCT Tendering Practice Note 2017
RICS Tendering Strategies Black Book 2015
E-tendering RICS

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4
Q

What is covered in the JCT Tendering Practice Note?

A
  • General commentary on tendering practices and procedures
  • Model forms compiled by the JCT
  • Predominantly focused on the private sector
  • Refers to the EU Public Contracts Directive Contracts Regulations 2015 ( PC Regulations) for public contracts above EU threshold
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5
Q

When do Public Contracts Regulations (PC Regulations) apply?

A

When they meet the scope of the regulations and exceed thresholds of £5,336,937 for works contracts (Jan 2022)

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6
Q

How would you go about tendering a public sector project?

A

If above the threshold, and subject to the Public Contracts Regulations, a notice would need to be issued on Contracts Finder Service (CFS) instead of OJEU

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7
Q

Under PC Regulations, when would a tenderer be excluded?

A

’- Mandatory exclusion for offences such as bribery and money laundering
- Discretionary exclusion on other types of serious professional misconduct

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8
Q

Can public procurement work with 2-stage tendering?

A

Only in exceptional circumstances as the final CSA is still to be agreed

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9
Q

How are PC regulated tenders assessed?

A

’- On best value using criteria for quality, price, technical merit, aesthetic, functional and environmental, running costs, cost effectiveness, lifecycle costs

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10
Q

What does the JCT Tendering practice Note 2017 advise as tendering periods?

A
  • Single stage > 28 days
  • PC regulations single stage ~35 days
  • D&B where design is not developed a period of 3 - 4 months may be allowed, longer may be required. Period may be shortened with developed ER’s
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11
Q

What would be included in a letter of invitation to tender?

A
  • Project details
  • Instructions to tendering contractors
  • The latest time and date for tender returns
  • Client’s stance relating to compliance, alternative bids
  • Key contact details
  • Protocol for raising tender queries
  • Details of submission that contractors are required to make
  • How the tenders will be evaluated i.e. lowest price or most economically advantageous
  • Which procedure is to be used for dealing with errors i.e. alternative 1 or 2 of JCT Tendering Practice Note 2017
  • Means of feedback that will be given to unsuccessful contractors
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12
Q

What is included in Project Information Schedule ?

A
  • Allows to decide if they are going to tender or not
  • Project & estimated value
  • Employer, professional team & contact point
  • Tendering procedure used
  • Programme, including dates for pre-selection interview, issue of tender docs and tender submission
  • Contractor design requirements
  • Applicable BIM requirements
  • Contract to be used
  • Contract Particulars; CW, Third Party Rights, Bonds, Insurances
  • Requirements for PCG / performance bonds, bonds not covered in CP’s
  • amendments or modifications of contract
  • Mode of execution
  • Basic and criteria of pre-selection
  • Basis of contract award (price / quality)
  • Whether Alternative 1 or 2 will apply in the case of error
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13
Q

What is included in pre-construction information?

A
  • Project overview
  • Any site constraints and restrictions on vehicle movement, noise and the like
  • Emergency procedures and means of escape
  • Existing site risks and restrictions i.e. use of adjacent property
  • Significant design and construction hazards
  • Environmental restrictions i.e. waste management
  • Format of health and safety file required
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14
Q

What is the process of a PQQ?

A

’- Scoring and modeling arrangements must be established in advance of Preliminary Enquiries
- Where possible, model weightings should be tested
- Interview, can form part of evaluation process, but not a discrete selection criterion
- Process must be transparent and equal treatment to each tenderer
- 3-6 tenderers receive Preliminary Enquiries (4 on D&B) / Public 3 for negotiation, 5 for restricted procedures
- Responses in 14 - 21 days (Public 30 days)
- Those not successful to be promptly informed and debriefed on request

According to JCT tendering practice note

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15
Q

What is the purpose of a PQQ?

A

PQQs enable employers to assess the Contractor’s commercial, technical and financial competencies and determine whether they meet the minimum criteria of the contract.
A typical pre-qualification questionnaire will request full company contact details, evidence of previous work and require information on:

  • Finance
  • Status & legitimacy
  • Quality
  • Environment
  • Equal Opportunities
  • Health and Safety
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16
Q

What information would you request in a PQQ?

A
  • Corporate Details - Contract details for enquired, Registered office, PCG if required
  • Financial Standing - Report & audit accounts for 2/3 years, Contacts of bank references
  • Technical Capability & record - Comparable experience on similar projects, Referees on similar projects, current workload & capacity
    -Management & Personnel - Proposed management team for project, policies for training and development, EDI
  • Insurances - existing public and employers liability cover, works insurances, PII including renewal dates, contract details of insurance brokers used
  • Sub-Contractors & Supply Chain -preliminary plans for sub-contracting, selection & quality assurance procedures, SCM procedures
  • Good standing & material litigation - Confirmation company or directors have not been convicted with offences relating to theft, corruption, money laundering etc; Confirmation in last 3 years no breaches of H&S / CDM / environmental regulations
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17
Q

Who assess the PQQ?

A

It will be assessed by the entire design team and the client/ client representative at a post PQQ meeting and each member will review the submitted documents and discuss the scoring they feel is appropriate. This will then be put into a PQQ matrix which will be scored based on the pre-agreed weighting.

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18
Q

Do you think as a QS you are appropriately qualified to assess a company’s accounts?

A

No, the companies’ accounts should be checked by an accountant.

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19
Q

Once you have assessed the PQQ and selected the suitable tenderers what would you do next?

A

Contact selected contractors to inform them that they have been selected to tender for the works and work with the design team to produce & collate tender documentation.

Notify unsuccessful contractors and debrief

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20
Q

Why are PQQs important in the public sector?

A

Pre-qualification questionnaires are used to help public sector client’s shortlist suppliers to invite to tender where a certain level of technical ability is required, and form part of the restricted tendering procedure.

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21
Q

What are the minimum periods for responses for PQQ’s?

A
  • Public procurement - 30 days from the date of dispatch from OJEU. Can be 15 in exceptional circumstances
  • Private - approximately 14 or 21 days (longer when design is required)
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22
Q

When is single and two stage tendering appropriate?

A

Single stage - when ER’s are sufficiently defined
Two stage - when ER’s are not crystallised and specialist input is required from the contractor. In public works the second stage must not include negotiation (JCT PN 2017 pg 2)

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23
Q

What is involved in the first stage of a two stage process?

A

Competitive tenders generally restricted to preliminaries, OH&P and elements of the design that are sufficiently developed to price. The successful tenderer is the preferred bidder and negotiates the final terms of the contract

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24
Q

How long is the response threshold for PQQ’s in public procurement?

A

30 days from date of dispatch of the OJEU notice
Reduces to 15 days in urgent cases

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25
Q

Advantages of two-stage tendering?

A
  • Quick start on site as the contractor develops the design and the design, tendering and construction periods can overlap
  • contractor expertise in respect of buildability is harnessed
  • Lessens likelihood of disputes through early contractor involvement
  • can be more attractive to contractors as the tendering process is much quicker and cheaper for them
  • Increases scope for VE
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26
Q

Disadvantages of two-stage tendering?

A
  • Lack of competition in second stage could see price escalation
  • Neither party are usually obliged to enter into contract
  • First stage is often restricted to preliminaries, OH&P’s and areas of design sufficiently developed alread
  • Risk of contractor colluding with suppliers
  • Programme could be affected if second stage negotiations are protracted
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27
Q

How many contractors should be invited to tender?

A

’- Public - 3 for negotiation, 5 for restricted purposes
- Private 3 -6 (4 when D&B)

28
Q

What special considerations are there for public procurement?

A

’- Negotiation is not allowed under public procurement. If the contract sum is not agreed, this can be viewed as negotiation still
- Tenders must be judged on most economically advantageous basis, not lowest price
- Threshold for response to PQQ’s is 30 days as standard from OJEU notice
- Tendering periods 35 days
- When exceeding £5.4m subject to PC regulations
-In PC Regulation cases, no award should be made until the end of the 10 day “Standstill period” (15 days where not by email)

29
Q

What should the employer indicate on Invitation to Tender?

A

’- Documents included
- Latest time and date for returns
- Contact point for communications, queries etc,
- Basis of award and criteria and wieightings to be applied
- arrangements and procedure selected for priced documents
- Documents to be supplied by the tendering contract (CP’s, designs, drawings etc)

30
Q

What should the employer indicate on Tender Form?

A
  • Description and location of works
  • Name and address of employer
  • Name and address of tendering contractor
  • Documents supplied to tendering contractor
  • Particulars of PCG if required
  • Arrangements and procedure for priced documents
  • dates or periods of commencement & completion of works
31
Q

What would you include in an ITT going out to a contractor (aka Project Information Schedule)?

A

Cover letter
Instructions to Tenders letter
Form of tender:
-ER’s
-Preliminaries
-Pricing schedule
-Pre-construction information
-Drawings
-Specifications
-Quality requirements
-Collateral warrantees
-Basis of award

32
Q

Where should the latest time and date for submission be listed?

A

In the tender form and ITT

33
Q

What is needed to ensure compliant tender process?

A

All should be based on identical documents. Any clarifications should be notfied to all tenderers at the same time

34
Q

When can a tender be withdrawn?

A

Good practice that this doesn’t happen, with the exception of under Alternative 1
Usually a time limit on acceptance, if not then remains open for a reasonable period (risky!)

35
Q

What should happen if a tenderer submits qualifications?

A

Tenderer should have opportunity to withdraw the qualification without amending the price

36
Q

What happens when tenders are to be assessed on best value?

A

Evaluation to be done independently of priced documents

37
Q

How are tenders assessed?

A

Employer must assess against criteria that have been established prior to tender. Enables proper response to those who are unsuccessful
Contractor Proposals to be assessed against ER’s

38
Q

How do you go about analysing tenders?

A
  • Carry out arithmetical checks
  • Ensure there are no omissions, inconsistencies or qualifications
  • Comply with the alternative selected in accordance with the JCT Tendering Practice Note 2017 where errors are found
  • Carry out a side by side comparison of the tender returns to highlight major variances
  • Check there is no front-loading by contractors
  • Compare each element against the corresponding element in the pre-tender estimate
  • Enlist the design team to review contractor’s proposals if design and build to ensure compliance with the employer’s requirements
  • Where tenders are to be assessed on best value, evaluation of pricing document is to be done separately
39
Q

What is the process once you receive tender returns?

A

Returns should be opened at the same time with a record of opening (including cost, date and time) signed by 2 individuals - client should be invited

Tenders should be assessed for qualifications and arithmetical correctness.

Assessed for programme

Ensure all required documentation is submitted

Tenderers are to be given the opportunity to confirm / withdraw / amend (depending on alternative stated).

Tender to be assessed on criteria as stated

40
Q

What would you do if a tender return was 5 mins late?

A

Tenders received out of time should not be considered

RICS Tendering Strategies GN 2015 states Private clients should be advised of the lateness and explicit instructions must be given to include

41
Q

Did you personally inform the unsuccessful tenderers’ that they have been unsuccessful?

A

The unsuccessful tenderers should be thanked for their time and effort and their scoring on both the qualitative and quantitative elements of the tender analysis, in relation to the winning tender, should be communicated to them. It is also good practice to invite the unsuccessful tenderers to meet in person so that the analysis of their tender return can be discussed in more detail.

42
Q

What is Alternative 1?

A

Tenderer given details of the error and afforded opportunity to confrim or withdraw tender. Where it is confirmed, an endorsement should be added to priced documents prior to acceptance indivating rates are to be considered as reduced / increased to same proportion as corrected total of priced item from offer price.

Excludes prelims, contingencies, prime cost sums and provisional sums

Signed by both parties

43
Q

What is Alternative 2?

A

Tenderer given opportunity to confirm offer or amend to correct genuine errors.

If this means they ar eno longer of best value / lowest price, the next tender should be examined

If changed, original tender should be updated with initials at the correct details and tender accpetance form should state amended tender figure

If not amended, Alternative 1 method applies

44
Q

When would you re-tender?

A

Where significant changes have been made affecting price or design

45
Q

What happens after tender selection?

A

What happens after tender selection?

46
Q

Are tenderers notified of other tender results?

A

PC Regulations - “Notice of decision to award a contract” sent to unsuccessful tenderers and those who submitted a Questionnaire

Traditional tendering - a list of tender prices or best value scores. Where only 3 tenderers, only the schores of the successful bidders should be shared (+ own score)

47
Q

What came in to place following Brexit for Public Contracts?

A

Public Procurement (Amendment etc) (EU Exit) Regulations 2020. Signed in Nov 2020
New proposal of a procurement bill 2023 to discuss consolidation - not yet in play
EU-UK Trade and Co-operation Agreement (TCA) for UK & EU negotiations to improve access to procurement markets

48
Q

How do you choose how many tendering contractors to include on your projects?

A
  • Refer to JCT Tendering Practice Note 2017
  • 3 to 6 generally
  • No more than 4 on a design and build project
  • Public sector procurement under PC regulations must have 3 for negotiated or 5 for restricted procedures
49
Q

How long are the tender periods on your projects generally?

A

*Eddington S2 - 2 months Stage 1 tender D&B
* JCT Tendering Practice Note 2017 suggests a minimum of 4 weeks for traditionally procured projects with minimal CDP, and 3 to 4 months for D&B if no detailed design.
- Cases where PC regulations apply, a minimum period may be up to 35 days

50
Q

How do you know that the tender period you have allowed is sufficient?

A
  • Refer to JCT Tendering Practice Note 2017 guidance
  • Ask contractors within any pre-qualification questionnaire
51
Q

Who prepares pre-construction information?

A

Principal Designer

52
Q

What is the purpose of pre-qualifying contractors?

A
  • To ensure they are financially sound
  • To assess their competence and relevant experience
  • To ensure they accept the proposed contractual terms and have the requisite insurances in place
53
Q

What was included in a pre-qualification questionnaire on Eddington?

A
  • Included proposed form of contract and amendments
  • Details of proposed tender period
  • Requirements for warranties
  • Health and safety
  • Requested method statements
  • Requested programme
  • Insurances
  • Requested last 3 years financial records
  • Relevant experience and key personnel
  • Included a scoring matrix weighted most heavily toward relevant experience of sustainable construction
54
Q

What are preliminaries?

A

Preliminaries describe the works and define the conditions and requirements for the execution of the works, and include costs required to carry out the works that aren’t attributable to any individual works package, such as contractor’s staff, accommodation, plant, equipment, tools etc.

55
Q

Why are pre-tender estimates important?

A
  • The client will want to know that they can afford the proposed development prior to committing
  • They act as a basis for comparison with the tender returns and therefore assist in the tender evaluation process
56
Q

What would you include in a tender report?

A
  • Executive summary (date of tender issue, tendering contractors, number of tenders received etc)
  • Tender opening details
  • Details of tenders received and a comparison
  • Details of any qualifications, errors or inconsistencies in tenders
  • Revised tender prices
  • Comparison with the pre-tender estimate
  • Commentary on programmes submitted
  • Any issues still to be resolved
  • Recommendation based on scoring matrix
57
Q

What happens in the acceptance of the tender that is subject to PC regulations?

A

No tender should be accepted before the end of the stand-still period.
Standstill is 10 or 15 days depending on whether it is email or not (respectively)
Notice of decision to award is to be sent to unsuccessful tenderers and questionnaire responders

58
Q

How does a PCG work?

A

The parent company undertakes to meet the contractor’s contractual obligations if the contractor defaults on them. They step in to the shoes of the contractor and are bound by the same obligations under the same contract, and are also required to pay any loss and expense incurred through the contractor’s default to the employer.

59
Q

How do you compare and analyse tenders?

A

Tenders will be reviewed and compared based on the following criteria:

  • Price.
  • Relevant experience.
  • Understanding of the requirements.
  • Past performance.
  • Technical skills.
  • Resource availability.
  • Management skills and systems.
  • Proposed methodology (this might include mobilisation plans, design proposals, and non-compliant proposals if these have been allowed).
  • Compliance with the requirements set out in the invitation to tender.

The weightings must be set out within ITT

60
Q

What did you include in the first stage tender documents?

A
  • Proposed form of contract and amendments
  • Design intent
  • Preliminaries
  • Pricing documents relating to preliminary design & specification
  • Statement of overheads and profit for pricing
  • Form of tender for PCSA fees
  • Insurance requirements
  • Information required from contractor i.e. programme, method statements
61
Q

What would you include in a tender report?

A
  • Executive summary (date of tender issue, tendering contractors, number of tenders received etc)
  • Tender opening details
  • Details of tenders received and a comparison
  • Details of any qualifications, errors or inconsistencies in tenders
  • Revised tender prices
  • Comparison with the pre-tender estimate
  • Commentary on programmes submitted
  • Any issues still to be resolved
  • Recommendation based on scoring matrix
62
Q

What is the process following an unsuccessful tenderer?

A
  • They should be notified of the decision to award the contract
  • Opportunity to know own scores and range of scores against relevant criteria
  • Tender should be returned or made inaccessible and should not be used by the employer or advisors
63
Q

On Eddington, what was the tender opening procedure?

A
  • Occurred during lockdown of Covid-19
  • Received electronic submissions
  • Client and design team were invited to the tender opening virtually
  • Client attended along with 3 QS’s from Core Five
  • Tenders were open and recorded in the tender opening form
  • Raw information of tender price, proposed programme, key comments / exclusions and confirmation that all documents have been submitted should be recorded
  • Signed by present QS’s and client
  • Arithmetical checks followed - Alternative 2
64
Q

What changes are made with the Public Procurement (Amendment) EU Exit Regulations 2020?

A
  • Notices to be made on FTS rather than OJEU
  • Same thresholds and timescales apply
  • Amendments do not apply to procurements already underway
  • Award of contracts / call-offs under existing frameworks are not affected by the amending provisions
65
Q

What is normalising?

A

Where out of place rates or unduly high / low rates are identified
Drawn to contractors attention
Ensures all tenderers have priced in the same way

E.g risk on D&B
If reviewing risk register and one contractor has excluded a key risk, it should be addressed by either excluding from all contractors (with client agreement) or giving the tenderer the opportunity to include a price for the risk

66
Q

What methods of normalising are there?

A
  • Using average of submitted costs
  • Use high price from tender returns
  • Use cost plan allowance for that element

Can raise as a query in post tender interviews

Procurement and Tendering (4 decks)

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