Procurement (Contractor Selection Method)

Question 1

List the 4 types of Contractor Selection Method:

Answer 1

1. Single Stage Tender
2. Two Stage/Multi Stage Tender
3. Negotiation
4. On Site and Off-Site Overheads + Profit (P & G and Margins)

Question 2

What is a competitive single stage tender?

Answer 2

• Prices are sought from serval contractors (1-6) at the same time within a set contractual format.
• Identical information is suppled to all tenderers.
• Any changes in contract are sent to all tenderers in a NTT (Notice to tenderers).

Question 3

What are the disadvantages of a single stage tender?

Answer 3

• A slow and linear process.
• Works only begin after a successful tender is chosen.

Question 4

What are the advantages of a single stage tender process?

Answer 4

• Competitive and fair way of finding a contractor.
• Results in a lower/competitive price.

Question 5

What is the negotiation selection method?

Answer 5

1-2 contractors price the job in an open manner with discussion between the parties.

Question 6

What are the advantages of the negotiation selection method?

Answer 6

Can allow for alternative design and construction approaches to be considered which may save time and/or cost.

Question 7

When would a negotiation selection method be used?

Answer 7

Where contractors with specialist skills are required, or it is difficult to price the project.

Question 8

What is the two stage or multi stage tender selection method?

Answer 8

When work is split into packages and tendered separately to enable the work to start on site prior to the design being finalised - fast track method.

Question 9

What is the advantage of the multi stage tender?

Answer 9

• Work on site can start earlier - project finishes earlier.
  -The expertise of the contractor is available earlier for the design team.

Question 10

What is the On Site and Off-Site Overheads + Profit (P&G and margins) contractor selection method?

Answer 10

Where the contractor agrees to be paid for the establishment and running costs of a job, plus and agreed profit margin.

Question 11

What are the advantages of the P&G and margins selection method?

Answer 11

• Fast Track Method
• Contractor joins the design team near the start and is still chosen in a competitive manner.