is how we go about
acquiring the goods and services we need.
PROCUREMENT process
On a construction project, it is a way of allocating design and construction responsibility.
PROCUREMENT process
is influenced by identifying the key project criteria of time, cost and quality.
procurement choice
the risk that the final cost may
exceed the client’s stated budget
cost risk
the risk that the project will be
delivered later than planned or required
time risk
the risk that the client is unable to easily influence the quality of the project outcome and will not get what was anticipate
design or quality risk
CONSIDERATIONS WHEN WHEN CHOOSING PROCUREMENT STRATETEGY
client
project
external factors
procurement routes
- traditional
- design & build
- Construction Management
- Management Contracting
- Framework Agreement
- PFI/ PPP (Public Private Partnerships and Private Finance
Initiative)
Implementing the chosen procurement route through to the
selection of the contractor/supplier and the establishment of a basis for contract.
tendering
types of tendering
➢ Single Stage tendering
➢ Two Stage Tendering
➢ Open Tendering
➢ Selective Tendering
➢ Negotiated Tendering
➢ Serial Tendering
➢ e-Tender
Tenders are usually based on complete design
Single Stage Tendering
➢ Tenders based on partially developed consultant design
➢ Contractors assists with final development of design and tender documents
➢ First stage tenderer may tender/negotiate second (construction stage)
Two Stage Tendering
➢ Contractors invited to tender for a contract through advertisements
➢ Can result in a large number of unsuitable firms tenderi ng for the work
➢ Can result in wasted time and effort in the selection process
➢ Best prices by firms wanting to establish themselves
Open Tendering
➢ Consultants / Clients will normally have a list of contractors who undertake different types of contracts
➢ Most common arrangement because it allows price to be the deciding criterion
➢ Contractors are invited to tender on their proven record in relation to the type and size of contract and their reliability
Selective Tendering
➢ One contractor is approached
➢ Used mainly for specialist work, such case there are limited number of contractors to do the work in the market
➢ Based on one to one discussion with the contractor
Negotiated Tendering
➢ This method tenders are invited from a selected list on the basis of a
typical (notional) bill of quantities.
➢ The contractor chosen normally submits the lowest price who undertakes to enter into a series of contracts to carry out the work using the rates in the notional bill of quantities.
➢ Method reduces the tender costs and normally results in contractors
quoting low rates in order to obtain a guaranteed programme of work
Serial Tendering
