1
Q
Once you have a submitted tender what would you examine in order to make sure its complaint with the invitation to tender?
A
- Arithmetic errors
- Pricing errors
- Pricing methods (front loading)
- Check the form of tender is complete and signed
- Resolve any qualifications
- Check programme
2
Q
What is the difference between tendering and procurement?
A
- Procurement is the overall act of obtaining goods and services on a construction project
- Includes deciding on the strategy on how those goods are to be acquired by reviewing the clients requirements and their attitude to risk
- Tendering is an important phase in the procurement strategy, it revolves around
- The biding processes
- Obtain a price
- How contractor is appointed
- Procurement route might not affect the tendering strategy as each tending strategy can be used within most procurement strategies.
3
Q
What is a framework?
A
- A framework agreement it is an umbrella agreement that a client might have with multiple selected suppliers that he or she expects to be letting out work for multiple years. (Usually 2-10)
4
Q
What is Early Contractor Involvement?
A
- Typically, early contractor involvement might be enabled by a two-stage tender process, used in the first stage to procure contractor involvement in the design process, and in the second stage to procure construction of the works.
5
Q
If the project is delayed what would you check for the tender?
A
- How long the price is valid for
6
Q
What happens if there are too many withdrawals?
A
- Depending on the client’s process for tender withdrawls
- One option is cancelling the tender and starting the process again with a new selection of tenderers
- If agreed new tenders can be introduced then all tenderers
7
Q
What is single stage tender?
A
- Number of suppliers are sent identical documentation
- Predetermined amount of time to submit their tenders.
- Analysed on cost, quality
- Advantage = competitive,
- Disadvantage =higher risk included in prices
8
Q
What is design and build procurement route?
A
- A single contractor assumes the risk and responsibility for designing and building a project, usually in return for a fixed-price lump sum.
- Client employs a design team to do a preliminary design and prepare the project brief and other tender documents such as ‘employers requirements’ outlining the key objectives for the project and significant criteria for a successful outcome
9
Q
What ground would you consider to re-tender?
A
- Too many withdrawals
- The design changed and it believed that better prices could be achieved
- Tenders not fit criteria
- It is believed that a better value for money can be achieved
10
Q
How does risk indicate a procurement route?
A
Client wanting to take on low risk they might undertake a traditional procurement route where a contractor is taking on the risk on completing the works according to the design.
Evaluate what the client attitude on risk on programme, cost and quality.
11
Q
How did you carry out the post-tender reviews?
A
- Structure agreed in advance
- Team in attendance agreed in advance
- Ask in-depth questions that cant be asked by email.
- It is a chance to understand the tenderers proposals
12
Q
How does time indicate a procurement route?
A
- Financial benefits of undertaking the project in the first place would be based on programme constraints.
- The return on investment will be fulfilled at full if the project is delivered on time.
13
Q
Risk of water monitoring?
A
- Slips trips and falls
- Interaction with public
- Weather – severe weather could cause trips in the river
14
Q
What is included within the tender analysis report?
A
- List of tenderers received
- Initial tender return totals
- Any qualifications identifies
- Post-tender adjustments
- Revised tender sum
- Comparison of tender returns
- Comparison with pre-tender estimate
- Recommendation
15
Q
How could you reduce the risk of withdrawals?
A
- Accurate tender information.
- Ensure it is long enough.
- Check the subcontractor if they have time capacity to complete the tender.
- Mid tender reviews.
16
Q
How is the tender methodology for disk exchange carried out and what are the benefits and constraints?
A
- When you transfer information on a disk
Advantages
- Familiarity
- Relatively secure
- Version and inherit control
Disadvantages
- Slow exchange of data based upon physical transfer such as the postal service
- Relatively expensive – reissuing amended documents
Can be suitable for any project but administration cost will increase as they will have to send out disks continuedly
17
Q
What is management contracting?
A
- Client appoints a management contractor to manage whole of construction process.
- Management contractor appoints works contractors. Contractor has a direct contractual link with all the works contractors and is responsible for all the construction works.
- The management contractor is generally appointed by the client early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop, as well as to advise on packaging (and the risks of interfaces).
- Client appoints a design team
- Contractor lets out work to work packages on competitive tender.
18
Q
How would you deal if a subcontractor is seem to be front loading?
A
- Raise it with them to understand if its actual front loading
- If the confirm it could a reason for disqualification
- If they refuse to remove it could be a reason for disqualification
19
Q
How does project function indicate a procurement route?
A
• If a client needs a building that serves a specific purpose and it needs to be durable such as a hospital he/she might prioritize project function over cost or time.
20
Q
What happens if tender prices are higher than the pre-tender estimate?
A
- You would understand why by doing normalization
- Might be because of market conditions such as Brexit and covid-19
21
Q
What is the Traditional procurement route, and what are some advantages and disadvantages?
A
Client has a completed design and competitive tenders are invited before the construction contract is let.
Advantages
• Competitive – everyone is tendering on the same basis
• Price certainty (assuming there is not much change)
• Public accountability: if public project it is transparent and based on competition
• Popular/well known procedures ensuring confidence in those involved throughout the supply chain
Disadvantages
• Slow
• No parallel working like design and build
• No input from contractor on design – might cause buildability issues
• High-risk project might result to clients paying a high premium due to contractor paying high risk
22
Q
What is two-stage tender?
A
- Issue a tender enquire to contractors while the project is designed.
- The preferred contractor is chosen on the basis on quality of their bid, the quality of their team and their preliminaries price and overhead and profits allowances.
- The chosen contractor joins the design eam on consultancy basis using a pre-construction services agreement (PCSA)
- Contractor finalises design with design team and then provides its final bid
- Advantage: early contractor involvement, overlap of design and construction
- Disadvantage: not competitive in second stage, no incentive to mitigate risk in a traditional route as they will be able to price for it,
23
Q
Where website does the UK have for public projects?
A
- ‘Find a tender service’ which is an government tender portal
24
Q
What is water monitoring?
A
- Monitored 15 river locations over a year to form as a baseline of the chemical composition of the river prior to construction.
It is required because The Environmental Statement for HS2 is accompanied by a Code of Construction Practice (CoCP)1, which outlines monitoring will be undertaken for watercourses that will be affected by construction works or the discharge of surface water run-off during construction activities
25
What are condition surveys?
* Visual survey inspection carried out by a surveyor to identify the state of a building.
26
What might a PQQ ask for?
* Company details
* Details of insurance cover
* Financial information (such as company accounts)
* Relevant experience
* H&S policy records
* Environmental management policy
* Equal opportunities policy
27
What is negotiated tender
* It’s a single-stage tender with a single contractor based on their track-record or previous relationship and the terms of the contract are then negotiated.
* Advantage: getting a price quick
* Disadvantage: negotiation can be complex, competitive price might not be achieved, not suitable for public projects
28
What is tendering?
* Process by which the employer invites contractor to bid for the works. The overall objective is to obtain a price for the works.
29
Where would you get a credit check from?
* Dun and Bradstreet report
* Credit agency such as Experian
30
What are the benefits of mid tender meetings?
* Opportunity to meet the people working on the tender
* Tenderers can raise queries in a face-to-face environment
* Can be combined with a site visit
* Assess the progress of each of the tenderes to date
* Strengthened commitment
Any information that is disclosed during the course of the interview should be formalized and issued as tender queries to all tenderers, so everyone receives the same information
31
What happens if a tender is submitted late?
* Public sector -not be considered
* Private sector- it could be discussed but RICS doesn’t encourage it as it might imply collusion, bid-rigging
32
What is construction management procurement route?
* Client appoints a design team with a construction manager engaged as a fee earning professional to manage, programme and co-ordinate the design and construction
* Construction work is carried out by trade contractors, through **direct contacts** with the client for distinct trade or work packages.
* Construction manager supervises the construction process and coordinates the input of the trade contractors and the output of the design team.
* The construction manager will usually take over any prelims scheduling and costing information
* Client is involved.
* Work packages are tendered individually for lump sum price.
33
Why would a tenderer withdraw?
* Work commitments – don’t have enough resources to complete tender response
* They might think they might not be competitive
34
How is the tender methodology for email carried out and what are the benefits and constraints?
* Exchanging tender via email
Advantages
* Quick excnage of data
* Familiar
* Inexpensive
Disadvantages
* Security files
* Limits to sizes of files that can be sent
* Informal nature of communication
* Need a follow up call to ensure that tender information had been received.
* RICS does not recommend this way due to its risks
35
What are the advantages and disadvantages of management contracting?
Advantages
* Programme benefits – overlapping activities
* Management and work contractors contribute to design
* Changes can be accommodated
* Work packages are let competitively
The disadvantages are that
* Good client brief is needed
* Poor price certainty at early stage
* Need a good, committed management contractor
* Might be gap in scope in letting out work packages that would be normally be picked up
36
What information might be requested from potential tenders to provide?
* Record of experience (case studies)
* Proposed team and hierarchy
* Methodology or approach
* References
* Programme
* H&S information
* Value engineering proposals
* Logistics plans
* Social value strategy
* Diversity and inclusion policy
37
What are some risks for condition surveys?
* Identifying hazardous materials -
* Driving - mobilise and demobilize – make sure you take breaks every 2 hours
* Fatigue – duration of daily working period
* Poor lighting -head torches
* Injury through slips, trips and falls
38
What would you do if a subcontractor has financial difficulty?
* Performance bond
* Parent company guarantee
* Could be part of disqualification
39
What happens if there are errors in the Tender?
* Tenderer should be given the details of the errors and afforded the opportunity of confirming or withdraw their tender
* If they withdraw, the next lowest bid is considered
40
How does cost indicate a procurement route?
* Cost will indicate to the client if there is return on its investment.
* It indicates procurement route as if the client want to achieve a competitive price he/she will choose procurement process that encourages competition.
41
What additional insurances might be required under a D&B contract?
As the contractor will be undertaking both construction and design a Professional indemnity insurance will be required.
42
What are Advantages and disadvantages of construction management procurement route?
Advantages
* Overlapping activities cause time savings
* Trade contractor and construction manager can contribute to the design and to project planning.
* Changes in design can be accommodated easier, assuming the relevant trade packages have not been let.
Disadvantages
* Price certainty not achieved until all trade packages have been let.
* Informed, pro-active client is required to operate such a strategy.
* Client must provide a good-quality brief to the design team.
* Selection of a skilful and committed team and construction manager (not just a post box system)
* Employer has a lot of consultants and contractors to manage
43
What are advantages and disadvantages of design and built?
Advantages
• Client had only to deal with one firm
• Client risk I reduced due to the single point responsibility
• Price certainty is generally obtained before construction starts, provided the clients requirements are adequately specified and changes are not introduced
• Time efficient – overlapping activities
Disadvantages
• Might be difficult for the client to prepare an adequate and sufficiently comprehensive brief
• Client commits to concept design
• Bids are difficult to compare as designs will be different
• Quality might be compromised
44
What did you learn from the Guidance note ‘Developing and Selecting a construction procurement strategy’?
• Learned about different tendering types, procurement strategies.
45
Advantages and disadvantages of a framework agreement?
Advantages of framework?
* This speeds up the procurement process as client can let out work to the suppliers on call off basis.
* Rates and prices are usually agreed upfront
* Stronger relationships
* Repeat work, continuity of delivery
Disadvantages of framework?
* They might become complaicent
* Bidders might invest time to get on the framework but potentially not receive any work through them
* Maybe restrictive to new suppliers who offer innovative, new, solutions
46
Reasons for robust tendering strategies?
* Obtain the right price
* Accountability
* Auditability
* Ensuring everything has been picked up
47
What is a difference between a framework and a contract?
* Framework doesn’t have specific commitment i.e works information to carry out works. It is focused on being an approved supplier
* Contract sers out specific fee, with project scope and timelines allowing you to quote and tailer your product/service for the specific job at hand.
48
How is the tender methodology for extranets carried out and what are the benefits and constraints?
* Online portal where tenders and people holding the tender have their own passwords and usernames
* Everyone is looking at the exact same information
* Used on projects over 10million
Advantages
* Instant access
* Secure systems with audit trail
* Reduced tender administration
* Single source
* All tenderers have the same information
* Issuing revisions is easier
Disadvantages
* Mobilization costs may be significant
* Potential Overhead cost due to monthly subscription
* Technology capability such as having the latest browsers, working Wi-Fi
* Not familiar
49
What is the purpose of a pre-tender estimate?
* Last cost check before the tender is issued. Used to compare against tender submissions
50
What is selective and open tendering?
* It is when you used a pre-agreed list of suppliers
* Allows anyone to express an interest to tender, advertised on websites.
51
What is the danger of accepting a very low price tender submission?
* The contractor may be trying to get into the cover and try to get as many variations and CEs as possible to recover
* It could be that the tenderer is in a poor financial position and eager to gain any work (bad cashflow)
* Areas might not be priced accurately which might cause conflict
* Company might go bankrupt
52
What is a PQQ?
* A pre-qualification questionnaire sets out a series of questions for potential tenderes to answer regarding level of experience, capacity and financial standing
* Purpose to filter suppliers that are applicable to the project
APC KYRI
flashcards
Decks in class (21)
# Cards
-
Conflict and avoidance23
-
Accounting principles and procedures24
-
Teamwork , Diversity and Inclusion22
-
Communication and negotiation33
-
Project finance (control and reporting)26
-
Health and Safety56
-
Ethics, Rules of Conduct and professionalism112
-
RICS /General questions28
-
Client Care19
-
Contract practice33
-
Contract Practice - NEC & JCT52
-
Quantification of costing32
-
Current Affairs23
-
Commercial Management of Construction21
-
Procurement and Tendering52
-
Construction Technology120
-
Risk Management14
-
Sustainability25
-
Business planning16
-
Data management22
-
Case study Questions17
