Tendering

Question 1

What are the two categories for tendering?

Answer 1

Negotiation & cometition

Question 2

What is open tendering?

Answer 2

Anyone can submit a tender

Offers greater competition, allows for emerging or new businesses to bid for work

Question 3

What may an invitation to tender include?

Answer 3

• Letter of invitation to tender
• The form of tender
• Preliminaries
• Form of contract, conditions and amendments
• BIM protocols or information requirements
• Tender pricing documents
• Drawings, schedules, specifications

Question 4

What is contract engrossment?

Answer 4

Process of preparing the final agreed form of contract and its schedules & appendices so it can be executed.

Question 5

What is contract execution?

Answer 5

Process of signing an agreed contract, after which it becomes contractually binding.

Question 6

What is the single stage tender process?

Answer 6

1) Preliminary tender invitation
2) Make shortlist of tenderers
3) Invitation to tender
4) Send out tender documents
5) Tenders returned after 4 weeks, by deadline.

Question 7

How should tender discrepancies be dealt with?

Answer 7

• Architect to be notified

- All tenderers notified of an changes, or further information, replies to questions.

Question 8

What is the process for opening tenders?

Answer 8

• Opened on a specified date, with client present.
• Late tenders returned unopened.
• Usually accept lowest tender, although not binding.
• Notify successful party.

Question 9

Why might tender by negotiation be chosen?

Answer 9

• When construction time is limited
• Where specified building techniques are required
• When contractors experience is valuable
• When an established working relationship exists

Question 10

What is 2 stage tendering?

Answer 10

Stage 1: By competition (appointment of preferred contractor using pre-contact services agreement)

Stage 2: Negotiation between client and contractor.

Question 11

What are the benefits of 2 stage tendering?

Answer 11

• Allows early appointment of contractor, prior to completion of all the information required to enable them to offer a fixed price.
• Early involvement improves build-ability, cost certainty and integrated project team.
• Potentially quicker start time on site
• Enables client to transfer design risk to contractor.
• Costs of abortive tendering reduced.

Question 12

What criteria could be used to asses a tender return?

Answer 12

• Price
• Relevant experience
• Understanding requirements
• Past performance
• Technical skills
• Resource availability
• Proposed methodology
• Compliance with invitation to tender