Tendering Flashcards
What is the difference between procurement and tendering?
Procurement is the overall act of obtaining goods. Tendering is a phase of procurement, where the process of establishing the price for the works takes place.
Name three different tendering strategies?
- Single Stage
- Two Stage
- Negotiated
What is involved in single stage tendering?
A shortlist of contractors is put together. Invitation to tender is issued at RIBA Stage 4. Tenders respond within a pre-determined time frame. A single contractor will be appointed.
It allows for a competitive tender process, and is used for well defined scope of works
What are the advantages of single stage tendering?
- Competitive price and cost certainty
- Design is complete
What are the disadvantages of single stage tendering?
- No contractor input/experience shared in the design
- Increased programme requirements
- Variations and possibly increased costs for incomplete design
What is involved in two stage tendering?
A tender is issued with limited prelim information, and schedules of rates where design is not complete. Contractors are assessed on evaluation criteria.
Shortlisted contractors go through tender process, a preferred bidder is selected to assist with the finalisation of the design prior to negotiation of tender sum of tender sum.
How is the pre-construction phase of two stage tendering dealt with?
Contractor joins the design team on a consulting basis using a pre-consturction services agreement. Once design is competed the contractor will submit a price for the negotiated works
What are the advantages of two stage tendering?
- Earlier start on site possible, as tendering and design overlap
- Contractor input during construction (buildability)
- Flexibility on design
What are the disadvantages of two stage tendering?
- Cost risk, as contractor is signed on prior to final cost being known
- Risk to programme as design time is included
What is involved in a negotiated tendering process?
Negotiated tendering is a hybrid of single and two stage tendering.
The client identifies a contractor best suited for the project. The contractor then enters into exclusive negotiations with the client to agree the contract sum.
Design can be completed during the tender period or before key stages on site
What are the advantages of negotiated tendering?
- Early start on site possible
- Contractor design input is available
- Programme certainty as risks are identified at an early stage
- Partnering - it builds relationships
What are the disadvantages of negotiated tendering?
- Cost increase likely as no competition
- Loss cost certainty on site
What is the standard time for a tender should be out for?
Guidance is 28 days, dependent on complexity and scale
How many contractors should be included in a competitive tender?
3-6 contractors are sufficient (max. of 4 for D&B)
Name qualitative indicators used as an alternative for cost and programme
- Aesthetic
- Function
- Environmental Characteristics
- Health & Safety Procedures
- Experience
