What is Procurement?
The process of acquiring goods, works or services.
What are the main 3 factors when considering a procurement route?
Client objectives
- Time
- Cost
- Quality
Name some Procurement options
Traditional Design and Build Construction Management Management Contracting Framework Agreements
A brief explanation of Traditional Procurement
The client engages the architect/design team and contractor directly
A brief explanation of Design & Build Procurement
The client engages the contractor who designs and builds
A brief explanation of Construction Management Procurement
The construction manager is employed to arrange trade contracts and monitors them
A brief explanation of Management Contracting Procurement
The contractor performs the role of managing the works contractors who carry out the works
A brief explanation of Framework Agreements
A template contract is agreed for a series of projects
Name some tendering processes
Single Stage Tendering - bid for whole construction work. Usual on traditional route. RIBA after stage 4 tech design.
Two Stage Tendering - tender based on bid quality, then joins design team -usual on D&B route. RIBA stage 2 concept design
Negotiated Tendering - single stage 1 contractor. Not permitted by Public Proc. RIBA stage 2 concept design
A brief explanation of Single Stage Tendering
Multiple contractors tender through one single tender process
A brief explanation of Two Stage Tendering
The contractor is selected for the 1st stage on the basis of limited scope.
The 2nd stage full price is negotiated through open book tendering
A brief explanation of Negotiated Tendering
Where the contract is negotiated with a preferred contractor or contractors.
What is novation
A process where the contractural rights & obligations are transferred from party to another new 3rd party.
What is tendering
The bidding process to obtain and price, also to appoint a contractor
How does procurement through a framework work?
Framework fulfils obligations of public procurement rules. Framework provider vets contractors to allow them onto framework. Can allocate by
- Direct award - based on standard pricing
- Further competition - using specification ‘invitation to tender’
How did Brexit change public procurement?
The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020
OJEU replace with ‘find a tender’
What is the Public Contract Regulations 2015?
- UK response to EU procurement directive
- Enables buyers to run procurement faster
- requirement
What are the current public procurement thresholds?
For central gov:
Supply, services and design contracts - £122,976
Works contracts £4,733,252
Special and other services £663,540
What public procurement frameworks are available?
- CCS
- YPO
- ESPO
What re the benefits of a procurement framework?
- Reducing overall procurement costs and internal resources
- Building long term relationships between buyers and suppliers
- Better long term value for both buyers and suppliers
- Public procurement compliant
What are pre-qualification procedures?
- Can be used to filter unqualified applicants
- Only bidders that are qualified can apply
- Can be a questionnaire to be completed, PAS 91 is an example
How are selection criteria used?
- Similar to Pre-qual, are minimum standards that bidders must meet
- Criteria must be relevant and proportionate to proc exercise.
- Weighting can be applied to criteria, or a pass/fail
Has RICS issued guidance?
Yes, Tendering Strategies guidance document
Procurement of Facility Management
What is the difference between tendering and procurement
Procurement - overall act of obtaining services
Tendering - phase in procurement (bidding and appointment)
