Procurement

Question 1

What is traditional procurement?

Answer 1

• Employer appoints consultants to design the project and contractors are then invited to submit there tender
• JCT standard contract

Question 2

What is the benefits of traditional procurement?

Answer 2

• more cost certainty than CM and MC
• Tenders easier to analyse
• Employer retains control of design

Question 3

What are the negatives of traditional procurement?

Answer 3

• Slow start on site
• no contractor build ability input
• design risk for employer

Question 4

What is procurement?

Answer 4

Process of obtaining a good or service

Question 5

What is tendering?

Answer 5

Process of inviting contractors to bid for work on a project.

Question 6

What is single stage tendering?

Answer 6

• Usually takes place at stage 4 of design
• contractors will bid on detailed design information (near enough complete)

Question 7

What is two stage tendering?

Answer 7

1st stage contractors bid on limited design information - bid includes prelims, OH&P fee and team. Preferred contractor is taken on using a PCSA
2nd stage the contractor negotiates to agree final price, programme and contract conditions

Question 8

What is negotiated tender?

Answer 8

• Similar to single stage tender but with 1 contractor, where all details are negotiated

Question 9

What is CM procurement?

Answer 9

Employer places direct contracts with each trade contractor rather than a single main contractor

Question 10

What is MC procurement?

Answer 10

Employer appoints a managing contractor to manage the entire building process and place direct links with trade contractors

Question 11

What is D&B procurement?

Answer 11

• Design and Build
• the contractor is in control of both design and construction of the building

Question 12

What do you do if you find an error in a tenderers submission?

Answer 12

JCT tendering practice note defines 2 alternatives
- Alternative 1 includes notifying the contractor and they can either accept the bid or retract the submission
- Alternative 2 includes either confirming the offer or have the opportunity to change the error

Question 13

What is a PQQ?

Answer 13

Pre Qualification Questionnaire - information required by tenderers to see who is applicable and desirable for a tender

Question 14

What information is required from a PQQ?

Answer 14

• Financial records
• Health and Safety records
• insurances
• relevant experience
• company details
• QA policy
• current capacity

Question 15

What is a PTE?

Answer 15

Pre tender estimate - estimate of a package before tenders are received

Question 16

What do you do if a tender is issued late?

Answer 16

public - still acknowledge
Private - let client know and see if they still want to acknowledge tender

Question 17

What are the benefits of D&B?

Answer 17

• early SOS is possible
• contractor build ability input
• more cost certainty than traditional

Question 18

What’s are the cons of D&B?

Answer 18

• complex to compare returns
• employer changes are expensive
• contractor risk premiums

Question 19

What are the pros of CM?

Answer 19

• Quick start on site
• buildability input from contractor
• changes in design has no premiums

Question 20

What are the cons of CM?

Answer 20

• no cost certainty until last trade contract is placed
• needs an experienced employer

Question 21

What are the pros of MC?

Answer 21

• Fast SOS
• buildability input from contractor
• single point of responsibility

Question 22

What are the cons of MC?

Answer 22

• no cost certainty
• needs an experienced employer

Question 23

Why do we do a PTE?

Answer 23

• final check before returns
• can be used to compare tender returns

Question 24

What is included in the tender documents?

Answer 24

• ITT
• drawings and spec
• pricing document
• bona fide document
• contract particulars

Question 25

What is the instructions to tender?

Question 26

What is a bona fide tender?

Answer 26

Submitting a tender in good faith with good intentions

Question 27

What is a tender addendum?

Answer 27

Change to project tender requirements that may need an allowance

Question 28

What were the tender addendums on your relevant project?

Answer 28

Soft Strip works NZH - asbestos survey showing amount of asbestos - methodology of removing heritage works

Question 29

What is a tender opening and what is on the form?

Answer 29

- Official Meeting with the client and relevant project consultants on the tenders received for work packages - Form includes: Date of meetings, attendees, tenders and any key information such as cost and programme

Question 30

What is included in a tender return?

Question 31

What is a tender report?

Question 32

Why were there differences to the budget and tender returns for soft strip?

Answer 32

- Unknown amount of Asbestos lead to high prov sum returns - CAT B removal not in the budget

Question 33

What’s included in the recommendation report?

Answer 33

- exec summary - ITT and tender info issued - tenders received summary - proposed contract sum - option costs - recommendation

Question 34

What was included in the procurement report?

Answer 34

- Project information - procurement options available - recommend option and reason for rejection - next steps (choosing contractors etc)

Question 35

What procurement options were available for NZH?

Answer 35

- Design and Build - CM

Question 36

Why did you choose two stage D&B for NZH?

Answer 36

Client needed cost certainty for a Board Approval meeting, this disregarded CM and left two stage D&B

Question 37

What is a PQQ scoring matrix?

Answer 37

Pre-Qualification Questionnaire scoring matrix allowed client and design members to score each contractor on different elements on the return, in turn showing who was best placed for the project