Procurement

Question 1

How does project partnering differ from strategic partnering?

Answer 1

Project Partnering - one project
Strategic Partnering - one or more projects

Advantages:

• share commercial objectives
• share risks
• build working relationships
• collaboration

Disadvantages:

• competitiveness
• innovation

Question 2

Explain the concept of PFI, Private Finance Initiative?

Answer 2

It is a way of financing public sector projects through the private sector (can be typically 25 years).

Design, build, finance & operate.

Question 3

How and why should the supply chain be involved in a project?

Answer 3

To add their expertise, provide their value in cost, quality and programme.

• client - first tier suppliers (design consultants)
• contractor - subbies and specialists

Question 4

Explain the concept of lean construction?

Answer 4

Is the application of using manufacturing techniques in construction.

Lean is aimed at maximising value and minimising costs.

Question 5

What is Prime Contracting?

Answer 5

Single point of contact for the client for the contractor.

Pros:

• clear lines of communication & accountability
• supply chain management

Cons:

• fraud detection (adding layer overheads/ profits)
• stifles innovation and competition
• performance

Question 6

What is the purpose of a framework?

Answer 6

To allow clients to access x number of suppliers who have been vetted and have agreed to the frameworks T&Cs. Frameworks have an agreed length of validity before they expire eg. 3 years.

Example: Pagabo Multi Dis

• Call Off agreed with client.
• B2B agreed with supply chain.

Question 7

OJEU compliant framework?

Answer 7

A framework that follows the OJEU process of making sure everyone can tender for the framework in question when it went out to ITT.

Note.
Public contracts = 51% or more funded

Question 8

When analysing a pricing document what other documentation can you use to help check the pricing?

Answer 8

1. SPONS (AECOM)
2. BCIS (RICS)
3. Collated cost data from previous projects

Question 9

What information would you expect a contractor to submit on a single stage process for a traditional procured process?

Answer 9

1. Quality
   - experience
   - H&S
   - project team
2. Commercial/ Quantitative
3. Form of Tender
4. Compliance (submission of bonafide tender)

Question 10

How do you deal with Errors in tenders?

Answer 10

Under JCT Practice Note 2012.

2 options:

1. Cannot be accepted
2. Can be accepted - dependent on circumstances

Must be informed at ITT stage.