Tendering

Question 1

What are the main tendering options?

Answer 1

“Open
Selective / Competitive ( single &
Two Stage)
Negotiation
Serial
Framework”

Question 2

Can you tell me the process of a single stage tender under the various procurement routes?

Answer 2

The procedure for this form of tendering is issuing a preliminary enquiry to a list of contractors who are considered suitable for the project. Usually put forward by Clients or project teams. The preliminary enquiry aims to narrow down the list of Contractors further by asking a series of questions relating to; Company Finances and insurances, procedures, awards, specific experience, project values and timescales etc. following this, the contractors who performed well in the preliminary enquiry are then invited to tender , usually no more than 4-5. Following receipt of the tender they are then analysed and contractor is selected on the basis of price as well as other factors including quality and Time

Question 3

Can you tell me the process of a two stage tender under the various procurement routes?

Answer 3

With two stage tendering the first stage is competitive and the second stage is negotiated with one tenderer, sometimes under a PCSA. The procedure for this method of tendering is a preliminary enquiry (although not always) followed by a first stage invitation to tender (on prelims, OH&P and PCSA fees). On receipt of these tenders, they are analysed. Successful tenderer is then appointed to negotiate the second stage via a PCSA. In the second stage the works are split into sections; each section is designed and tendered. At the end of the process a lump sum will be agreed with the contractor, who will then be appointed.

Question 4

What is the role of the client’s design team in the second stage of 2 stage tendering?

Answer 4

to complete the design of the packages that have been broken down for tender

Question 5

Under two-stage tendering, what do you look for in the first stage?

Answer 5

“Prelims
OH&P
PCSA Fees”

Question 6

What is a PCSA?

Answer 6

Pre Construction Services Agreeement

Question 7

Can you tell me the process of an open tender under the various procurement routes?

Answer 7

Open Tendering is initiated by the Clients Team (i.e PM, QS or Architect) who put out an advert (News paper, Online OJEU etc) that can reach a multitude of different Contractors who can then apply to tender. From the applications, a Pre Qualification Process can happen to help narrow down the applications to a more appropriate selection of tenderers. Invitations to tenders are then sent, Tenders are then received, analysed and from there a Contractor is appointed

Question 8

What do we mean by OJEU?

Answer 8

Official Journal of the European Union

Question 9

Is there more than 1 type of OJEU procedure?

Answer 9

Find a Tender (FTS)

Question 10

Can you tell me the process of a serial tender under the various procurement routes?

Answer 10

Serial Tendering is a combination of a previous competitive tender and negotiation. For example, The client would have already competitively tendered a project that is underway and wants another very similar one. So as a process, the Client / Team would approach the contractor who is carrying out works on the existing project and ask if they would like to do the new project for the same OH&P and rates, the Contractors QS and PQS would then ‘ number crunch’ and then appoint the contractor

Question 11

Can you tell me the process of a negotiation tender under the various procurement routes?

Answer 11

There are no rules or guidance for negotiated tender. The Contractors could be asked to price as the design develops with the view to negotiate the final price with no PCSA or fee and then appointed. Or, the contractor follows the same single or two stage process but in no competition with a view to negotiating the final price and then appointed.

Question 12

What is the difference between single stage tendering and negotiated?

Answer 12

Single stage tendering is competitive and follows a process of tendering to to prequalified tenderers. Negotiation has no rules or guidance and not competitive.

Question 13

What is the difference between negotiation and serial tendering?

Answer 13

Negotiation has no rules or guidance on how it is to be carried out with no set time period. Serial tendering is a negotiation with an exisitng contractor on already competitive pricing the process is usually quick.

Question 14

What is the difference between open and selective tendering?

Answer 14

open tendering is open to all contractors via an advert. Selevtive is based on a list of preselected tenders who are selected based on suitability of job / previous experiences etc

Question 15

What is the difference between single and two stage tendering?

Answer 15

Single stage is fully competitive and the project is tendered as a whole at once. Two stage is competitively tendered in the first stage for prelims, OH&P and PCSA fees and the second stage is majority negotitated

Question 16

What is the difference between open and negotiation/serial tendering?

Answer 16

Open tendering is ‘open’ to the all contractors. Negotiatied/serial only goesin most cases to one contractor either already working on a project or with past experience.

Question 17

What are the advantages of and disadvantages of single stage tendering?

Answer 17

“Advantages
Overall time: Quicker process than Open tendering but not the quickest method of tendering . Certainty of time is gained at tender stage
Overall cost: Although less competitive than open tendering, costs received are still competitive. There is also certainty of cost gained at tender stage
Overall quality of workmanship: The preliminary enquiry stage will remove any bad workmanship tenders.
Disadvantages
Overall time: Although certainty of time is gained at tender stage, due to the longer nature of the process there is limited opportunity for an early start on site.
Overall cost: Not as competitive as Open Tendering
Overall quality of workmanship: In selected competition so no input from Contractors on buildability aspects”

Question 18

What are the advantages of and disadvantages of two stage tendering?

Answer 18

“Advantages
Overall time: Overall 2 stage tendering is shorter than open tendering. It is also shorter than single stage as there is the benefit of the design and tender stage running in parallel.
There is also the ability to start on site earlier due to both the design and tender happening in parallel to reduce what would normally be the follow-on tender period.
Overall cost: Cost wise there are more disadvantages
Overall quality of workmanship: The first stage will wean out those bad workmanship contractors and the second stage will develop a relationship with the contractor. The second stage contractor will have buildability input and will be a specific part of the PCSA

Disadvantages
Overall time: Certainty of time is only gained after the second stage. If the negotiations do not go well with the selected first stage contractor, the works may have to be retendered.
Overall cost: Only the first stage prelims, OH&P and PCSA fees are competitive, a bulk of the works is negotiated and under no motivation of competitiveness by the tenderer in the second stage. There is also a cost for entering into the PCSA where there is an agreed cost for pricing the project. Certainty of cost is gained only after second stage. If negotiations do not go well, then there will be a need to re tender.

Overall quality of workmanship: Workmanship wise there are more advantages”

Question 19

What are the advantages of and disadvantages of open tendering?

Answer 19

“Advantages
Overall time: Certainty of time is gained at tender stage
Overall cost: Overall as it is fully competitive, there will be someone in the marketplace that will be able to complete the job cheaper. Certainty of costs is also gained at tender stage.
Overall quality of workmanship: No Overall Advantages

Disadvantages
Overall time: longest form of tendering option, additional advert period, prolonged tendering period and prolonged tender analysis period. There is also no early start on site due to the pro longed pre contract period.
Overall cost: No real disadvantages
Overall quality of workmanship: Tendering to ‘whoever’ might not yield a good workmanship contractor. Due to be tendered in full competition, there will be no input from contractors on buildability aspects.”

Question 20

What are the advantages of and disadvantages of serial tendering?

Answer 20

“Advantages
Overall time: The overall process is very short. Prelims, OH&P and rates only need computing as agreed in previous tender. Certainty of time Is gained at tender stage. Almost all of the tendering period is removed so allows an earlier start.
Overall cost: Due to the original tender being under competition and assuming there has been only been a short period passed in between the two projects in the marketplace and being similar works. The costs should be still competitive. Certainty of cost is gained at tender stage.
Overall quality of workmanship: The Client will have chosen to serial tender with a contractor who they are familiar with and know their performance on current projects. Lesson learned on similar projects will encourage buildability dialogue at agreement on the price.

Disadvantages
Overall time: No Disadvantage
Overall cost: No Disadvantage
Overall quality of workmanship: No Disadvantage”

Question 21

What are the advantages of and disadvantages of negotiation tendering?

Answer 21

“Advantages
Overall time: Potentially negotiation could allow for an immediate start on site should an agreement be made early.
Overall cost: More disadvantages.
Overall quality of workmanship: The Client will have chosen to negotiate with a contractor who they have familiarity with and have performed well in other projects. During the design stage and tendering the contractor will be able to offer buildability advice.

Disadvantages
Overall time: Length of time for the negotiation process is unknown and depends on the approach taken and period of time taken for the Client and Contractor to agree upon the projects time, cost & Quality. Certainty of time is not known until the end of the negotiation and could be prolonged further if negotiations do not complete.
Overall cost: Not as competitive as tenderer understands that they are not in competition with any other tenderers, therefore they know that they will most likely will be appointed, they will aim to make a larger profit. Certainty of cost is not gained until end of negotiation and may have to be retendered if negotiations do not go well.
Overall quality of workmanship: More advantages”

Question 22

What tendering options would give you the earlier completion?

Answer 22

“Negotitation ( depending on success)
Serial (depending on the works / appropriateness)”

Question 23

What tendering options would give you the earlier start on site?

Answer 23

“Negotitation ( depending on success)
Serial (depending on the works / appropriateness)
Framework”

Question 24

What tendering options would give you the earliest certainty of time?

Answer 24

“Open
Single Stage
Serial
Framework”

Question 25

What tendering option would give you the most competitive price?

Answer 25

“Open
“

Question 26

What tendering options would give you the earliest certainty of cost?

Answer 26

Serial

Question 27

What tendering options would give you certainty of quality?

Answer 27

“Two - Stage
Negotiation
Serial
Framework”

Question 28

What tendering options would give you buildability advice?

Answer 28

“Two - Stage
Negotiation
Serial
Framework”

Question 29

When would you use single stage tendering?

Answer 29

When the Employers requirements are sufficiently defined and enable the works to be priced

Question 30

When would you use two stage tendering?

Answer 30

On a project where its is complicated and required early contractor input on design / specific packages

Question 31

When would you use open tendering?

Answer 31

On publically funded

Question 32

When would you use serial tendering?

Answer 32

If you had a similar project and same client, that has been tendered competititvely recently and has transferable qualities.

Question 33

When would you use negotiation tendering?

Answer 33

If the Client has a particular preference for a firm often as a result of previous project.