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APE Part 02 > TENDERING & PROCUREMENT > Flashcards

TENDERING & PROCUREMENT Flashcards

1
Q

Two Main Methods Used to Select Contractors

A
  • Competitive Tender
  • Negotiated Contract
    (Typically a combo of both)
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2
Q

Benefits of a Negotiated Contract

A
  • Possible without complete documentation
  • Collaboration, Optimization and ECI opportunities
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3
Q

Types of Competitive Tenders

A
  • Public / Open
  • Selected / Invited
  • Public EOI w/ pre-qualification
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4
Q

Competitive Tendering Strategy in a Tough Market

A
  • Offer a Tender Preparation Fee
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5
Q

Key Parameters of a Fair Tender

A
  • Genuine intention by client
  • Genuine intention by tenderer
  • Equal & True Competition (fair w/o anti-competitive conduct)
  • Architect to act under client authority
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6
Q

Late Tender Acceptance

A
  • Only if the tenderer has valid reason that was beyond their control
  • Specify late submission policy in conditions
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7
Q

Key Details to Include in a Tender Package

A
  • Order of Precedence
  • Timeframe info
  • Special conditions / non-std clauses
  • Details of security (bank g vs retention)
  • Required Insurances
  • Prime or provisional costs
  • Client supplied items
  • Selected suppliers/contractors
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8
Q

Competitive Tender Clarification/Amendment Process

A
  • Info should be shared with all tenderers
  • Major clarifications may require formal addendum
  • If provided in last week, provide time extension
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9
Q

Dangers of Providing Misleading Info or Withholding Info In Tenders

A

Misleading or incomplete information can lead to claims for damages in tort or action with the Fair Trading Commission.

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10
Q

Legislation & Codes Governing Tendering

A

Legislation: The Competition and Consumer Act 2010 (the Act)

Codes of Conduct: (not Statutory but falls Under Architects Professional Duty): Code of Tendering

  • Since the Code of Tendering is not law, client is not legally required to adhere to it
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11
Q

Info provided by Tenderers that will form part of the contract

A

Price & Completion Date. Nothing else is contractual.

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12
Q

When can a non-conforming tender be considered

A
  • If the tenderer agrees to make the tender conforming while standing by their initial price
  • If included as a alternative option to a conforming tender
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13
Q

Alternative Options in Tendering (Key Considerations)

A
  • Consideration of alt. options should be made clear in tender conditions
  • Must be provided with a conforming tender
  • Alt. option is the IP of the tenderer, principle cannot ask other to price for the alt. option
  • Principle can ask the other tenderers to re-price with their own alt. option if the tenderer consents
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14
Q

Fair Justification for Tender Selection

A
  • If an invited tender - selection based on price is expected if all other conditions are met
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15
Q

Procedure when scope is adjusted after tender

A

Minor Scope Change - Negotiate
Major Scope Change - Re-call

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16
Q

Procedure when no tenders are acceptable

A
  • Negotiate w/ lowest price
  • Re-call with varied scope or after a reasonable amount of time (6 months +)
17
Q

Architect Code of Conduct During Tender Selection

A
  • Stick to facts & evidence to avoid liability
  • Client has final call
  • Do not recommend non-conforming
18
Q

Procedure for Accepting a Tender

A
  • Issue a Letter of Acceptance
  • Clearly include any conditions
  • Avoid a Letter of Intent (not legally binding)
19
Q

Procedure for Post-Tender Negotiation

A
  • Issue a statement that tenderer is the preferred tenderer
  • Only negotiate with one tenderer at a time
20
Q

Procedure for Informing Unsuccessful Tenderers

A
  • Agree with client on level of disclosure
  • Common approach is to disclosure list of prices & completion dates
21
Q

Cost Plus Contract + Time/Quality/Cost Risk Allocation

A
  • Contractor is paid for actual cost of work as it progresses + an agreed margin to cover profit/overhead/prelims

Time : Owner
Cost : Owner
Quality : Owner

22
Q

Appropriate use case for Cost-Plus

A
  • High End Resi w/ undefined Scope
  • Heritage Renovations
  • Simple fitouts
23
Q

Traditional Fixed Price Lump Sum + Time/Quality/Cost Risk Allocation

A

Contractor provides fixed fee for construction only services w/ 100% completed design provided

Time : Contractor
Cost : Contractor
Quality : Owner

(Best way to allocate risk)

24
Q

Design & Construct + Time/Quality/Cost Risk Allocation

A

Contractor provides GMP or Fixed Fee to provide design and construction

Time : Contractor
Cost : Contractor
Quality : Contractor

25
Q

Role of the Architect in D&C vs Traditional FPLS

A

Engaged by the contractor and therefore unable to act as a agent for the client

26
Q

Novated Design & Construct + Time/Quality/Cost Risk Allocation

A

Contractor provides GMP or Fixed Fee to provide design and construction once design is at 70% completion.

Contractor engages architect through Deed of Novation

Time : Contractor
Cost : Contractor
Quality : Design stage - Owner, Construction Stage - Contractor

27
Q

Key Considersations for Architect when being Novated

A

CAA should be set out to define the following:

  • point of novation
  • right to veto contractor
  • site visit liability
  • substitution liability
  • shop drawing review obligations
28
Q

Early Contractor Engagement Pros & Cons

A

Pros:

  • Early builder input on constructability & cost
  • Collaboration

Cons:

  • No opportunity for competitive pricing
  • Early engagement may incur extra costs to contractor
29
Q

Construction Management + Time/Quality/Cost Risk Allocation

A
  • Construction Manager engaged as a separate consultant coordinate trades. Client engages trades separately and provides trade packages (Architect may prepare these)

Time : Owner
Cost : Owner
Quality : Owner

APE Part 02 (12 decks)

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