1
Q
What are the different types of tendering strategies?
A
The main types according to the RICS guidance notes are single, two stage and negotiated.
2
Q
Why is tendering important?
A
It prevents bias, creates value for money, creates healthy competition, creates entry to new firms
3
Q
Tell me about single vs two stage tendering
A
- Single-stage tendering, also known as traditional tendering, is when a client issues a tender for the whole project, with all the relevant information provided at the point of issue. The process seeks to ensure that the client is able to secure a competitive price and to this end, the contractor may decide to price aggressively in order to secure the project.
- Two stage tendering involves an initial information stage, facilitating early collaboration between client and contractor and the second stage of the process is then simply a exercise, using the criteria agreed in the first stage. In reality however, there may be some items not previously considered, around which negotiations will ensue.
4
Q
What is the difference between tendering and procurement?
A
Procurement is the overall process of acquiring goods and services, tendering is part of the procurement process, specifically inviting suppliers to submit bids.
5
Q
What are the four main procurement routes?
A
- Traditional
- D&B
- Construction Management
- Management Contract
6
Q
If a clients key driver was quality, what procurement route would you advise?
A
I’d advise traditional because a traditional procurement route leaves more responsibility with the client and therefore a greater influence over the final design
7
Q
What are the key differences between the four main procurement routes?
A
- Traditional; client appoints designers and consultants, bid process begins after the design is complete. Meant to bring a higher degree of certainty regarding cost and quality.
- D&B; client appoints a contractor before the design is complete in order to have input on the final design. Meant to save on time and cost. Could improve quality as contractor will advise on buildability. Client has far greater influence on quality and cost, more time required to coordinate all stakeholders
- Construction Management; Client contracts the different packages directly
- Management Contract; Client appoints a management contractor to coordinate the different specialist packages. Potential issues with quality and cost.
8
Q
What are the differences between D&B and construction management?
A
- The client hands over more responsibility in D&B vs Construction management
- As a result of the above, there is more risk for the contractor in a D&B contract
9
Q
What is the difference between 1 and 2 stage tendering?
A
- One stage a contractor submits all documents in one step, in two stage the first step is a PQQ round.
- Adding in an additional stage adds extra time to the process and upfront costs but can result in better quality and because of earlier contractor involvement and better cost certainty.
- Having two stages allows for better risk allocation and a more robust risk management process.
10
Q
Pro’s & Con’s of two stage tendering?
A
- Pro’s – Early contractor involvement, greater cost certainty, reduced risks in delays and change
- Con’s – weak leverage in stage two, potential for scope creep, time consuming, more expensive
11
Q
Pro’s and Con’s of one stage tendering
A
- Pro’s – The process costs less, competitive pricing, reduced procurement time
- Con’s – slower start on site, may encourage risk pricing, limited contractor input so risk to buildability
12
Q
Pro’s and Con’s of negotiated tendering
A
- Pro’s – faster procurement, can reduce risk, adaptable scope and price
- Con’s – less price competitive, risk of over reliance, rigorous cost control required
13
Q
Pro’s and Con’s of selective tendering
A
- Pro’s – Reduced risk of unsuitable contractors, time efficient, quality assurance
- Con’s – risk of collusion, limited market testing, PQQ effort
14
Q
Pro’s and Con’s of a framework agreement
A
- Pro’s – efficient procurement, quality consistency, long term relationships can lead to cost savings
- Con’s – the time and cost of setting up a framework, limited competition which could lead to potential complacency
15
Q
What is included in a tender pack?
A
- A letter of invitation to tender
- Form of tender
- Bona Fide Tender
- Preliminaries
- The contract and any amendments
- Pricing Document
- Design – specifications and drawings
16
Q
What is included in each document of the tender pack?
A
- Invitation to tender – invites the contractor to tender for the project, giving information about the project, the contract, and the request for the tender period including timelines and procedures.
- Form of tender – formal acknowledgement of the tenderer confirming they will take part in the tender. The client team will usually prepare this for the tenderer to sign.
- Bona fide tender – something that the tenderer signs to confirm they have tendered the project competitively and fairly, without colluding with other tenderers or changing their price with agreement of other tenderers.
- Preliminaries – provides a description and details of the project that allows the contractor to assess the costs.
- The contract – the contract and any amendments so the contractor can prepare
- Pricing document – will depend on the type of procurement route and project
- Design – drawings, specifications, registers etc.
17
Q
Can you name different types of contractor selection strategies?
A
- Open book, Selective and single contractor
18
Q
What happens at a tender opening? (when you receive tenders from the GC’s)
A
- At a tender opening you have to do a record of what was included
- And there should be at least two people to witness
19
Q
What is the process after tender opening?
A
Tender analysis, tender interviews, contractor selection, contract negotiation
20
Q
What’s included in a tender report?
A
It typically includes a clear introduction, outlining the project background and objectives, followed by an organized presentation of the tender’s scope, criteria for selection, prerequisites for compliance, and terms of the contract
21
Q
Can you name the Pricing documents?
A
- Bill of Quantities (BOQ) – provides the quantities of materials or works on a project which the contractor then applies rates to.
- Schedule of Rates (SoR) – a list of rates that is provided by the contractor from potential materials to labour, prelims etc where the quantities are unknown at that stage.
- Contract Sum Analysis (CSA) – a document provided to the contractor with all works broken down, so that the contractor can fill in their quantities and rates to a specific format. Once all contractors have priced this the client team can then easily compare them against each other.
- Schedule of Works (SoW) – simply lists all the works required (without quantities) that the contractor can then price.
- Priced activity schedule – a list of activities that are priced and add up to the contract sum. Payments are then made against the completion of the activity rather than by specific material or works.
22
Q
Why would a client prefer to use a CSA over a BOQ?
A
It costs the client more money and takes longer to produce a BOQ.
23
Q
What are the pricing options for construction contracts?
A
- Lump sum – lump sum price is agreed before the works begin. Used when there is a good level of design and change is unlikely. Typically used on traditional procurement route.
- Guaranteed Maximum Price (GMP) – an agreed price with a contractor that will not be exceeded. If the actual cost is higher the contractor has to pay for it, the contract will state what happens to the profit if the actual cost is under the agreed price. Typically used on Design and Build.
- Cost plus – the contractor is reimbursed the actual cost they incur plus additional fee.
- Remeasurement – rates are provided at the outset, and then after the works are complete, the actual quantities are used against the rates agreed.
- Target Cost – a target cost is set early in the project, and an agreement is made as to what share the client and contractor will have towards any overspend or saving.
24
Q
What is the difference between a GMP and target cost?
A
- A GMP does not exceed a maximum price, if the contractor goes above the agreed GMP then they pick up the cost where as a target cost the final agreed sum can vary.
- Another difference is sharing the savings, on a GMP the client will keep the savings if the final cost comes under the agreed GMP, on a target cost the savings are shared.
25
Difference between GMP and Fixed price Lump Sum?
GMP is used on D&B, Fixed price is used on traditional. There are mechanisms for lump sums where the contractor can be entitled to more money, whereas only a client change can affect a GMP. Mechanisms include variations, relevant events, provisional sums, fluctuations.
26
What financial checks do you have on companies?
- Dunn and Bradstreet
- Experian
27
Can you give an example of a tender analysis you have carried out?
When I was on the contracting side, I had to carry out tender analysis on the required packages for a data centre project.
28
What is included in the tender process?
Key stages of the tendering process include pre-qualification, invitation to tender, evaluation of bids, and contract award
29
Would you be carrying out the further checks during the tender process?
Further checks such as the looking at the procurement programme and labour levels I would have involvement in but checks on health and safety certifications and financials would be done by others.
30
What is open book tendering?
It is a tendering method where all costs and pricing is transparent allowing clients to see actual costs incurred.
31
What is value engineering
Value engineering is a systematic approach aimed at enhancing the value of a project, product, or process while minimizing costs. It involves analyzing the functions of various components to reduce costs without significantly compromising performance or functionality. This process is often applied during the design phase to identify alternatives that provide greater value, ensuring that the desired quality and performance are achieved at the lowest possible price.
32
What was some of the VE options put forward at Brent Cross?
- One example of VE put forward was to reuse ceiling tiles where possible from the existing building to be demolished
- Another example of VE was to use other brands to those named in the ER's such as with lighting fixtures
33
If a subbie was missing scope, what process would you follow?
This would be noted and raised during the post tender interviews where it would be documented in the post tender queries tracker. The contractor would then have the opportunity to go away and revise their offer.
34
Traditional procurement Pro’s and Con’s
- Time: Slower process as it involves multiple stages (con)
- Cost: Can provide possibility for cheaper cost as you’re not paying for the risk.
- Quality: As design is finalized before appointing a contract, requirements are already set before appointing a contractor (pro) and clients retain significant control over the design and budget (pro) as contractors have limited input to design this could be a negative in regards to buildability and could lead to variations (con)
35
When would you use a traditional procurement route?
Complex, bespoke or specialist projects
36
D&B procurement Pro’s and Con’s
- Time: Early involvement from the contractor during the design phase means the design can be finalised as contractual discussions are going on (pro)
- Cost: Because the contractor is involved from earlier on, construction costs are usually established early on and therefore meaning a good cost certainty
- Quality: As the contractor has more control, quality may suffer as the contractor may prioritize budget or quality.
37
When would you use a D&B procurement route?
Simple/ straightforward projects needing speed
38
Construction Management procurement Pro’s and Con’s
- Quality: (Pro) higher client involvement and therefore quality should remain high
- Time: (Pro) Early procurement benefits the programme
- Cost: Less price certainty, fixed price not guaranteed and change management requires vigilant oversight.
39
When would you use a construction management procurement route?
Complex phased projects with experienced clients
40
Management Contract procurement Pro’s and Con’s
- Quality: (Pro) higher client involvement and therefore quality should remain high
- Time: (Pro) Overlapping design and construction allows for an earlier start on site.
- Cost: Less price certainty, fixed price not guaranteed and the process can be expensive and unpredictable
41
When would you us a management contract procurement route?
Multi package, large scale projects requiring coordination
42
What would you expect to receive in the first stage of a two stage tender?
- Contractor pre-qual docs: financials, insurances, health and safety
- Prelim costs: overheads, profits, schedule of rates
- Programme and method statements
- Any optional early works or package tendering, such as demo works or surveys
43
What is the difference between an Employers Agent and a Contract Administrator?
- The type of contract: EA is on D&B contracts CA on traditional contracts
- Role: A CA is appointed by the employer but acts impartially, an EA is appointed by the employer and acts on their behalf
- Phases of involvement: A CA is usually post contract with some pre-contract, an EA is involved from start to finish
- Duties: A CA administers the contract, certifies works, manages disputes and issues instructions, An EA advises the client, prepares documentation, monitors the design and build and oversees valuations and handover
44
What happens during the evaluation and selection phase of a tender?
- Bids are evaluated via tender analysis
- Pre tender interview are conducted to clarify and exclusions or scope gaps
- Selection
45
Role of the QS in tendering (minimum level of services as per RICS Tendering Strategies 1st Edition)
- Compiling and preparing documents
- Procurement strategy advice
- Evaluating bids and contractor selection
- Contract negotiation
- Value management
46
What is the difference between exclusions and clarifications?
- Exclusions are terms that limit the liability of one party under the contract, often to prevent them from being held responsible for certain types of loss or damage. Clarifications are additional details or definitions that help to clarify the scope of work, responsibilities, or terms of the contract. They are not necessarily related to liability but are important for ensuring that all parties understand the terms and conditions of the contract
47
How do you predict the program of a project?
- Benchmarking against other projects of similar size and type
- Following this I would clarify with a project manager
48
What is tender opening certificate?
It is an official document confirming that submitted tenders have been received, opened and logged
49
What is a Bona Fide Tender?
It is a genuine and competitive bid submitted by a contractor
50
What is included in a procurement report?
Executive summary, purpose/ objectives, spend and financial analysis, supplier performance, procurement process and contract status, KPI’s, findings/ analysis/ recommendations, conclusion/ summary
51
How do you manage queries during the tender period?
Queries are managed through a structed process, usually through a tender queries document that is regularly issued to the required designers/ consultants
52
How does procurement interact with contract selection?
Procurement defines how a project is delivered, shaping team composition, workflow, and timing. Contract selection formalises “who is responsible for what and under what conditions”, ensuring risk and liability are allocated according to the procurement approach. Their interaction determines: Project risk profile, cost and time certainty, stakeholder collaboration, overall project success
53
Names some categories of preliminaries
- Time related: labour, materials, plant
- Fixed: Surveys, Insurances, set up and demobilization
54
What is the JCT Tendering note?
- It is a document that gives commentary on tendering practices and procedures and it includes the following
- Introduction and scope
- Types of tendering methods
- Tendering procedures and best practice
- Dealing with errors in tenders
- Electronic tendering
- Public sector tendering
- Ethical Considerations
55
What is the Procurement Act 2023?
- It is an Act of parliament which overhauls the public procurement legal framework in the UK
- The aim was to simplify procurement, reduce bureaucracy, promote transparency, improve competition and ensure public money is being spent more effectively.
56
How does a QS help in the PQQ process?
On the contractor side the QS contacts the supply chain to gather insurance, financial and health and safety documentation and certification.
57
At what RIBA stage and for which procurement route would you advise two-stage tendering and why?
- Two-stage tendering is best suited for Design and Build (D&B) procurement routes and is typically initiated at the end of RIBA Stage 3: Spatial Coordination or the start of Stage 4: Technical Design
58
What procedures are there for dealing with errors in tenders?
- JCT tendering practice note alternative 1 and 2
- Alternative 1 – correction of the tender sum is not permitted, tenderer can withdraw or or confirm their tender.
- Alternative 2 – correction of the tender sum is permitted
59
Tell me when you have given procurement advice?
When on the contractor side we would usually go back to back on the contract type, however on smaller value packages for speed we would advise the use of JCT minor works contracts to management where appropriate.
60
What are the factors effecting procurement route selection?
- Clients objectives regarding time, cost and quality
- Preference on risk management
- Building/ Project type/ specifics
RICS Q&A
flashcards
Decks in class (19)
# Cards
-
Ethics85
-
Comms & Negotiation12
-
Health & Safety32
-
Accounting Principles39
-
Data Management22
-
Sustainability30
-
Commercial Management39
-
Contract Practice73
-
Procurement & Tendering60
-
Design Economics & Cost Planning59
-
Quantification and Costing38
-
Client Care15
-
Business Planning15
-
Conflict Avoidance19
-
Diversity8
-
Inclusive Environments12
-
Design Technology34
-
Project Finance22
-
Project Feasibility Analysis19
