tendering methods and management Flashcards
What is tendering?
The main way a contractor obtains work by the submission and preparation of work.
What is open tendering?
An advertisement by the client published in local newspapers or websites, allowing any interested contractors to place a bid.
What happens at the close of the open tender period?
The quantity surveyor or project tenderer opens all tenders and makes recommendations to the architect and client.
What are some advantages of open tendering?
- Very competitive
- Only firms interested will submit tenders
- New firms can find work and prove themselves
What is selected tendering?
A method where a project manager issues tender documents to a select list of contractors, usually ranging from 4-6.
What is a common practice under selected tendering?
It is usual to accept the lowest tender unless there are obvious mistakes.
What are some advantages of selected tendering?
- Very competitive
- Only selected firms submit tenders
- Minimizes cost of tender
- Mainly used for public works
What are some disadvantages of selected tendering?
- Not good for small contracts
- New firms don’t usually get selected
- Hard to get on tender list
- Open to abuse
What is negotiated tendering?
A method where a contractor is chosen based on past performance or familiarity, often used for similar jobs with slight tweaks.
What is a key advantage of negotiated tendering?
Allows earlier contract selection when the extent of work isn’t fully known and time is of the essence.
What is a disadvantage of negotiated tendering?
Difficult for those in the public sector to negotiate.
What is serial tendering?
A method used for similar projects placed with a particular contractor, providing continuous flow of work.
What are some advantages of serial tendering?
- Flexibility
- Cheap cost
What are some disadvantages of serial tendering?
- Contract needs to be managed on both sides
- Needs guaranteed amount of money for competitive prices
What is two-stage tendering?
A process where the client hires a project manager to present design and cost before inviting a contractor to complete a more in-depth tender.
What is the first stage of two-stage tendering focused on?
Producing a competitive tender based on approximate bills of quantities using preliminary design information.
What is an advantage of two-stage tendering?
The contractor helps with design, leading to adherence to cost and time.
What factors may affect tender cost?
- Time
- Size of tender list
- Tenders with no specific start date
- The type of contract
- Quality of tender documents
- Location
- Bond insurance and liquidated damages
- Completion time
- Payment terms
- Amount of existing work in the system
- Selection of subcontractor
What is good practice in the selection of subcontractors?
- Clear procedure for transparent competition
- Ensure receipt of compliant tenders
- Short tender list
- Same conditions for all tenderers
- Sufficient time and information for preparation
- Confidentiality respected
- Assessment and acceptance of tenders
- Commitment to teamwork
What is the role of the Construction Industry Board?
Establishes a code of practice for the selection of subcontractors.
What are the steps in the qualification process for tendering?
- Completion of tender list
- Tender invitation and submission
- Tender assessed
- Tender approved and awarded
Who chooses domestic subcontractors?
The main contractor.
What does a conventional subcontractor provide?
A completed service.
What is a labour-only subcontractor?
Subcontractors supplied with materials to perform work.
What is a labour and plant subcontractor?
Subcontractors who receive materials from the main contractor.
What is the purpose of going to tender for competitive prices?
To obtain competitive prices using one of the three types of tendering.
What is a nominated subcontractor?
A subcontractor chosen by the client.
What risk does a client take when using a nominated subcontractor?
If the subcontractor does not perform, it may affect the main contractor.
What should be included in enquiries for materials?
- Title and location of work
- Description of materials
- Approximate quantities
- Date by which quotation is needed
- Name of estimator
- Quote date for deliveries
- Firm or fluctuating price
- Minimum discount terms
- Limitations on access to site
- Size of contract
- Local sourcing of materials
- Storage of materials on site
- Quality of materials specified
- Existing terms and account
- Lead-in times for early payment
- Methods of transport
- Supply times
