1
Q
JCT Minor
A
- Projects with a short duration and
- simpler in nature.
- Not as comprehensive as IC or SBC
- No sectional completion
- Limited claims provisions
e.g. Refurb sub 6 months
2
Q
When would Intermediate be required? Project example
A
- Where fairly detailed contract provisions are needed, but
- without complex building service installations or other specialist work.
- e.g. Whitwell 18 houses
3
Q
JCT SBC
A
- Larger / complex projects where detailed contract provisions are necessary
4
Q
JCT SBC/ Q
A
- BoQ are used to specify quantity and quality of work.
- Employer takes risk of quantity errors in BoQ.
- Facilitates easiest tender comparisom
5
Q
xQ
A
- Drawings and specifications are used.
- Contractor takes the risk of price and quantity.
- Not complex enough to require BoQ
6
Q
Design & Build
A
- ER’s detail the requirements where the contractor is to complete the design e.g. Stage 3 (Concept) to Stage 4 (Technical)
- More expensive than traditional but contractor takes design risk = Cost certainty.
- Single contact (contractor).
- Quicker appointment of contractor than Traditional.
- Slow tender analysis 6-8 weeks.
- Loss of design control/quality.
7
Q
Procurement Report - Meole Brace
A
⦁ Exec summary
⦁ Intro & Client requirements
⦁ Options / overview: D&B, Traditional
⦁ Comparison and Risk allocation
⦁ Conclusion - D&B
8
Q
Characteristics of the Construction Management procurement
A
⦁ Similar to MC but client enters into contract with trade contractors directly.
⦁ Typically used by experienced clients who wish to retain control (also risk) of the project.
⦁ CM prepares:
- Programme
- Site setup
- Tender the trade packages
- Co-ordinate the works
9
Q
Initial Report Key Components
A
- Cost
- Programme
- Contract
- Statutory
- Design
- Collateral Warranties
- Insurances (CAR & PI)
10
Q
Single Stage Tendering
A
- Cost certainty achieved quickest. (Two stage; MC is appointed with no agreed price)
- Appropriate when design is uncomplicated i.e. Contractor unlikely to include high risk allowance to account for design revision
- Cost is established early
11
Q
Two Stage Tendering
A
- Separates process of selecting a contractor and determining a price for the works.
- Appointed on quality of team, prelims price, OHP
- PCSA to help complete design as consultant.
- If Client appoints MC on second stage Trade contractors make up contract price.
12
Q
Why use Two stage? Pros Cons Important aspect
A
- Ads; Buildability & program advice,
- start on site early (design & construction overlap),
- client input on trade contractor
- Dis; Little cost certainty,
- additional pre-con. Fees,
- no competition in 2nd stage,
- wasted time if does not go to 2nd stage
- Why use – Complex project/building.
- Efficient construction program needed. (Minimise disturbance if work impacts on public or existing use of area)
*Ensure abortive process is made clear – payment
13
Q
Procurement Overview:
Quickest Overall Procurement Route –
Cost Certainty
Most Economic (Fixed Price and Overall)
Greatest Client Risk
Least Client Risk
Least Control of Quality
A
- Quickest Overall Procurement Route – CM; works can commence as design is being developed. CM quicker than Man. C. as client can engage trade contractors straight away (Management C, must be appointed first).
- Cost Certainty – D&B; Contractor accepts design risk.
- Most Economic (Fixed Price) – Traditional; design is fully developed at tender (easiest to price -minimal risk pricing)
- Greatest Client Risk – CM; take risk for the performance of individual trade contractors
- Least Client Risk - D&B; Contractor has design risk
- Least Control of Quality – D&B; Client relinquishes control of design team to MC.
14
Q
Different types of Financial Basis
A
- Lump Sum Contracts contract sum is determined before construction work is started D&B, SBCxQ/Q, IC, MW
- Measurement Contracts contract sum not finalised until after completion – based on remeasurement to agreed basis SBC/AQ MTC
- Cost Reimbursable contract sum on basis of prime cost of labour/plant/ materials with additional amount for overheads and profit PCC
15
Q
Management Contracting
A
- JCT Management Contract
- Ads;Quick to start (design & construction overlap).
- MC technical input.
- Design changes until packages let.
- Dis; Little cost certainty.
- No incentive for MC to reduce cost.
- Fixed fee (% of prime cost).
- Advises on design and programme.
- MC programmes work and contracts trade packages.
- Complex and/or high value work (£50m+) where a main contractor would be reluctant to take on the risk for the entire project.
16
Q
Competitive Tendering
A
- Commercially favoured as benefits from both selecting preferred contractors and
- competition.
17
Q
Negotiated Tender
Why use
Downside
A
- Suitable contractor is identified and negotiated with directly.
- Why use? Existing relationship. QS is able to demonstrate tender return is good value based on comparable works.
- Might no be able to readily demonstrate value due to lack of comparison to other tenderers
18
Q
serial tendering
A
- Similar works required on an on-going basis - e.g. road repairs, estate maintenance
- avoid re-tendering costs
- establish ongoing relationship
- Based on tendered rates
- Contract administrator instructs work requirements
19
Q
How would you deal with tender errors?
View on approaches
Where would this be stipulated?
A
- JCT alternative 1; contractor either to confirm the error or withdraw their tender.
- Alternative 2 allows the contractor to confirm, AMEND or withdraw.
- View on 1 & 2; 1 is inflexible but arguably the tender process should be carefully considered and allowing change may discourage care.
- Option stated in ITT
20
Q
UPS Procurement Report
A
⦁ Exec summary
⦁ Intro
⦁ Options / overview: D&B, Traditional
⦁ Comparison and Risk allocation
⦁ Conclusion - Traditional (have CONTROL OF DESIGN TEAM)
21
Q
Why was Trad best for UPS?
A
- Retain design control
- Client team comprised of multiple people from different department
22
Q
UPS Risk Allowances
A
1% Construction - £350k
1% Employer Change £350k
23
Q
Heyford Con Man
A
- Similar to MC but client enters into contract with trade contractors directly.
- Typically used by experienced clients who wish to retain control (also risk) of the project.
- CM prepares:
- Programme
- Site setup
- Tender the trade packages
- Co-ordinate the works
24
Q
How did you prepare tender documentation for Oxford Resi Apartments?
A
- JCT D&B:
- Contract
- Amends
- ER’s
- Appendix
- CSA
- Design
- Site Info
- Prelims
- Warranty
- Bond
- PCI
25
How did you complete tender receipt?
Record of Tender Receipt” template;
⦁ Contractor name
⦁ Price £££
⦁ Programme X weeks
⦁ Exclusion, Omissions, Assumptions
⦁ Rank (1/2/3)
⦁ Alternative Tender (Revised Programme (quicker/slower with revised cost))
- Signed by 3 attendees (ideally at least one Chartered)
- Late tenders are excluded (public), however private procedure will be to the Clients decision if they wish to include
- Ask if the client and lead designer would like to accompany
26
What happened with the tender not received?
As not received within time scales it had to be discounted given it was public tender
27
What is OJEU?
Threshold
- Office Journal European Union
- Works value over £4.2m
- Open to all parties
- Service contracts £185k
28
What was the OCC minimum tendering criteria?
- Minimum credit score
- One similar project within last year
- Considerate contractor or similiar
29
What were the question sections?
- Business overview
- Financial
- Diversity
- Sustainability
OCC
- H&S
Arcadis Principal Designer
- Design
Arc, SE, CE, ME
30
How did the scoring work?
- 50% Price 50% Quality
- Lowest Tender = 50%
- Other tenders e.g. 10% higher would be awarded 45% (10% less)
31
Who assessed the quality responses & Contractors Proposals?
- Arc
- SE
- ME
- Principal Designer
32
How did you check/review the tender commercially?
⦁ Comply with basic instructions.
⦁ Pricing errors
⦁ Duplications
⦁ Omissions.
⦁ Pricing weights; is it front loaded (initial work unduly costly to reduce risk for contractor).
⦁ Exclusions and assumptions (design changes; price based on a superseded design?)
33
What is the form of tender?
⦁ Agree they have reviewed all information keep their bid valid for 90 days (e.g. they won't change price just before accepting bid which would comprise process. Significant recently with high levels of inflation)
⦁ Client not bound to accept lowest bid nor pay any expenses in relation to the tender return
⦁ Responses are correct and true (tender award becomes contract so unable to adjust after award
34
What assumptions were typical? (Oxford Tender)
- Assumed mobile craneage would be possible from the street subject to a full site survey - requested this allowance to be included
- Services were disconnected - Ok as demo contractor was required to do this
35
What exclusion were there? (Oxford Resi)
- One tenderer excluded water
- I requested this was included
36
Did the tenders include any Provisional Sums? What did you do?
- Allowance for obstructions.
- Requested this was firmed up
37
How could you normalise?
1 use an average of the submitted costs
2 use the highest price from the tender returns; or
3 use the cost plan allowance for that particular
element.
38
Did you have to normalise any items?
- No allowance was made for service connections by one contractor. Back and forth.
- Eventually used average of other returns £147k
39
How did the normalisation impact the contractor? (Impact)
Were there any other issues?
- Tender was already the highest
- PC Sum for Bricks (risk of increase)
40
Why was QB dismissed?
- Programme improvement with panelised MMC
- 10% more expensive
- MMC required planning alteration - deemed to be non compliant
41
Which tenderer won?
Life Build cheapest and no caveats
42
How did you undertake tender analysis?
- Reviewed tender returns
- Errors
- Assumptions
- Exclusions / Omissions
- Prov Sums
Sent query back to confirm/amend
43
What are tender queries?
- Tender opportunity to ask questions on tender documentation
- e.g. Draft CW had not been included
- Included as tender addendum
- Query list issued issued to all (anonymous)
44
Meole Brace Procurement Report
- Exec summary - D&B Recommended
- Client Requirements
- Outline – D&B, Traditional,
- Comparison and Risk allocation,
- Conclusion.
- Advise the client on what the best approach to take based on their requirements.
45
Why D&B over Trad?
- Quicker programme (Stage 3 not 4)
- MC hold design risk
Cons
- Relinquish design control; base build spec so control of detailed design not required
46
Why single stage & selective?
- Commercially favoured as benefits from both selecting preferred contractors and competition
- Negotiated lack competition
47
Tender Timescales
- Tender completion inc queries - 4 weeks
- Tender evaluation & clarification - 2 week
Site visit
- Tender report - 1 week
- Stand still - 1 week
- Award
Overall - 8 weeks
48
MMC QB
Why non compliant
- Panelised systems
- Tight site with limited access on a small street
- Small build no programme gains marginal 6 weeks
- Any delays incurred would jeapordise fact that cost was circa 5% more
- Contractors Proposals did not comply as required planning amendments in order to deliver MMC
49
Overview of tender returns £ & Time & Risk
1. Life Build - £3.5m Trad 71 weeks
2. Impact - £3.2 Trad 67 weeks inc risk items e.g. Prov Sum for Bricks
3. QB - £3.8m Mod 63 weeks (6 week saving) issue with planning amendment. Risks of MMC
50
How did you normalise the tender?
- No allowance was made for service connections by one contractor. Back and forth.
- Eventually used average of other returns £147k
51
If you had your own firm and were the QS, PM etc, how would you put your men safely to work within a deep excavation?
- Having worked only as a consultant I wouldn't be comfortable in managing on-site works and I would suggest that this should be taken on by a site manager
- this is not your area of expertise but you would go and speak to someone who has the relevant certification in this area.
52
I am aware of how different financial basis’s can be utilised depending on circumstances by which a project is being delivered. For example, a project could be procured on a Lump Sum or in contrast on a Re-Measurement basis.
- Lump Sum Contracts contract sum is determined before construction work is started SBCxQ/Q IC MW
- Measurement Contracts contract sum not finalised until after completion – based on remeasurement to agreed basis SBC/AQ MTC
- Cost Reimbursable contract sum on basis of prime cost of labour/plant/ materials with additional amount for overheads and profit PCC
- Design and Build contractor ultimately responsible for undertaking all design and construction work D&B
APC Final Revision
flashcards
Decks in class (22)
# Cards
-
Tendering ARCHIVE21
-
Quantification & Costing30
-
Con Tech44
-
Project Financial Control29
-
Design Economics & Cost Planning36
-
Procurement & Tendering52
-
Contract Practice76
-
Contract Administration34
-
Ethics77
-
Communication & Negotiation6
-
Client Care15
-
Health & Safety15
-
Accounting Principles18
-
Business Planning16
-
Conflict Avoidance11
-
Data Management12
-
Sustainability17
-
Diversity, Inclusion & Teamworking16
-
Inclusive Environments11
-
Due Diligence17
-
Case Study - See other deck0
-
Legislation & Key Acronyms34
