Tendering 2 Flashcards
Under a single stage tender there are ways of dealing with errors - what are they? Give reasons why you may recommend each option to a client.
Contractors agreement
- inform tenderer, confirm tender or withdraw
- inform tenderer, confirm or correct genuine errors
Why should the clients representative examine a tender in detail?
To look for mistakes or omissions and then they will inform the tenderer before the tender is closed.
What is meant by the term ‘front loading’? What should you do if the contractor has front loaded his rates in a tender?
Front loading is when costs are applied disproportionately to elements of the work that take place early on in the project. Suppliers will do this to maximise their revenue early on in the project.
If the client is faced with front loading, they can provide cost plans and cash flow projections which will illustrate how much they should be paying at the different stages. Tender assessment can be used to compare bids to see if excessive costs have been used.
What is the difference between arithmetical errors and pricing errors? Give examples?
Arithmetical - mistakes in calculation
Pricing - if an inaccurate price has been included e.g. from a subcontractor or if not competitive pricing
What documentation will be exchanged between the parties for a tender based on a D&B procurement route? How does this differ under the Traditional and Management?
D&B - articles of agreement and conditions of contract, employers requirements, contractors proposals, contract sum analysis, bills of quantities.
Traditional - drawings, schedule of works, specifications, warranties etc, conditions of contract - way more for this route.
How are bidders notified of the outcome of the tender?
Once a tender has been selected, the client can enter into negotiations with them regarding price and quality of the proposed works.
Contract administrator normally co-ordinates these negotiations.
What should be discussed in a tender report?
History of the tendering process and analysis of each tender.
Should be a clear recommendation for the best value for money offer.
If there are any implications or changes then these should also be set out in the tender report.
How do the EU procurement directives offer transparency for bidders?
Contracts can only be given to the most economically advantageous tenderer. No negotiations can take place with a single bidder.
What is meant by the term MEAT (EU)?
Most Economically Advantageous Tender - allows contractors to be awarded a contract based on aspects other than just price.
What is a concession contract under the EU regulations?
These are used by public authorities to deliver services or construction infrastructure.
How have the 2014 directives helped SME?
- makes it easier for them to participate in public tender
- contracting authorities are encouraged to break contracts up giving SME chance to win work
- turnover required to participate in a tender will be limited
