WK2AM - Tendering Flashcards
Q1. What is the difference between procurement and tendering?
Procurement - Procurement is the process of purchasing goods or services. There are many different routes by which the design and construction of a building can be procured.
Tendering - Tendering is the process by which bids are invited from interested contractors to carry out specific packages of construction work.
Q2. Define and explain the purpose of tendering.
To select a suitable contractor, at a time appropriate to the circumstances, and to obtain from him at the proper time an acceptable tender or offer upon which a contract can be let.’
Q3. What is the tender process?
Tendering is the process by which bids are invited from interested contractors to carry out specific packages of construction work.
- Procurement Route Chosen = Influences tendering option
- Select Contractors – Decide on number of contractors – Choose them – Actual number or pool of them – Invite to bid
- Decide tender period
- Preliminary enquiry – Contact potential tenders or use PQQ
- Finalise that tender does want the contract to tender.
- Receive and manage queries – tender amendments get sent out to everyone
- Contractors send in quotes
- Review tenders
- Choose company and enter into contract - secured
Q4. Name the main tendering methods used in the construction industry and give a brief explanation of each.
Main ones Open or Selective.
A single bid
• Open tendering
• Single stage selective tendering
• Pre-Qualification
• Negotiated
A 2-bid option
• A framework agreement
• 2 stage selective tendering
Open tendering – Allowing anyone to submit a tender.
Selective tendering – Invitation to tender will be sent to a pre-selected list.
Negotiated tendering – Negotiating with a single supplier (usually for specialist goods or service).
Serial tendering –
Framework tendering – For clients continuously commissioning work – tenders submitted on a call-off basis
Single stage tendering – when all the information necessary to calculate a realistic price is available when tender commences
Two stage – allows for early appointment of supplier prior to the completion of all information.
Public procurement
Q5. What are the advantages and disadvantages of each one?
Open Tendering
Advantages - no claims of favouritism can be made, an unknown capable company has a chance to submit his tender, it provides a competitive tender.
Disadvantages – unpredictable, inexperienced contractors, no guarantees on contractor’s suitability – references are time consuming,increased cost in tender prices due to tendering costs
Single stage selective tendering
Advantages - tenderers are suitable and financially viable/stable, reduces the cost of tendering, misunderstandings reduced.
Disadvantages - Tender prices higher, Less competition.
Negotiated (single)
Advantages - the contractor chosen is the Clients choice, previous working relationships and experience? may provide a quicker and /or better project!
Disadvantages - no competition, time consuming, favouritism can be claimed, no alternatives are considered.
Serial tendering
Advantages - same contractor used for the whole project, reduced costs as site set up already established etc. reduced tender costs and time.
Disadvantages - problems with the contractor? negotiated rates higher?
Two stage Selective
Advantages - Used when competitive tenders are required. Also, contractor’s knowledge. Earlier start on site possible
Disadvantages - can be time consuming
Q6. What is two-stage tendering and can you advise when it should be used?
Used to get the contractor in in an advisory capacity relating to the design with no responsibility.
Used to allow early appointment of supplier, allowing for work to start before the fixed sum is agreed.
1St Stage – Shortlist of contractors, invite to tender, Contractor selected.
2nd Stage – Finalisation of design, negotiated rates and contract sum reached.
Q7. What would you check before selecting a suitable contractor to be included on a tender list?
That they are qualified to do so using a prequalification questionnaire.
Looks at structure of organisation – financial and technical capability as well as references
Q9. What are Tender Rules? Give some examples of what it may include.
• How the process is managed • Points to consider o What if? • Details of the documents which form part of • the tender package • Guidance on how to complete • Instructions on information to be returned • Return details • Key dates
Q10. Advise which tendering method you would use if you wanted to secure a specialist contractor to carry out the work
Negotiated tendering
Q11. What are the disadvantages of selecting the lowest bid when using Open Tendering?
- Use of cheap or poor materials
- Safety shortcuts
- Poor quality
- Leading suppliers may not tender
Q12. What does parity of tendering mean?
• Queries
• Alternative
• Qualifications
Everyone must tender on the same basis, everyone has a fair chance.
If someone asks a query, the query and answer must be sent to all tenders.
Q14. What factors would you consider when assessing a suitable tender period?
Traditional – 4-8 Weeks
D&B – Minimum 12 Weeks
Q15. What is the preliminary enquiry? What information does it contain?
- Project specific
* ‘Cover Price’
Q16. What is a PQQ? What sections / headings are included? What are the advantages of using one?
Pre-Qualification Questionnaire sets out a series of questions for potential tenderers to answer regarding their level of experience, capacity and financial standing.
Enable the client to produce a short list of suppliers that are likely to be most appropriate for their project.
Short-listed suppliers may then be invited to tender for the contract.
Saving time processing etc – Only tenders who can realistically win the contract and perform it.
Q17. What should you do if a tender is submitted late? Why?
Late tenders should be disqualified.
Public sector tender documentation to make it clear that:
• Deadlines are strict, and no submissions will be accepted after the applicable deadline.
• Tenders may be rejected if they do not provide complete response to all questions.
Just because an authority is not obliged to accept a late tender, does not mean that it does not have the discretion to do so (for example, the authority in Leadbitter had already extended the submission deadline on one occasion). However, if an authority chooses to extend a deadline, it is important that all bidders are treated equally and are aware of and given the extension.
