1
Q
What is procurement?
A
- The overall process of acquiring construction work or services
2
Q
What should be considered when selecting a procurement route?
A
- The specifics of the project and the client objectives regarding cost, time, control, quality, and risk
3
Q
What are the main procurement methods?
A
- Traditional
- Design & Build
- Management Contracting
- Construction Management
4
Q
What is traditional procurement?
A
- The design is completed by the client design team before competitive tender are invited
- A main contractor is then employed to build what the designers have specified
5
Q
How does traditional procurement work?
A
- The contractor takes responsibility and financial risk for the construction of the works.
- The client takes the responsibility and risk for the design and design team performance.
6
Q
What are the advantages of traditional procurement?
A
- Retaining control over the design can lead to higher quality.
- It offers increased levels of cost certainty before commencement
- Design changes are reasonably easy to arrange and value.
7
Q
What are the disadvantages of traditional procurement?
A
- The overall project duration may be longer with no overlap between design and construction.
- There is no input into design and planning by the contractor.
8
Q
What is design and build?
A
- Where the contractor is responsible for the design, planning, organisation, control and construction of the works to the employer’s requirements.
9
Q
How does design and build work?
A
- The employer gives the tenderers the ‘Employer’s Requirements’ and the contractors responds with the ‘Contractor’s Proposals’, which include the price for the works.
10
Q
What are the advantages of design and build?
A
- There is a single point of responsibility for the design and construction.
- There is earlier commencement on site.
- Contractor’s experience harnessed during the design phase.
11
Q
What are the disadvantages of design and build?
A
- Clients may find it hard to prepare a sufficiently comprehensive brief.
- The Client has to commit to a concept design early.
- Variations from the original brief can often be expensive.
12
Q
How much design input will the contractor have in a design and build?
A
- This depends on the amount of design work the employer has already completed at the time of tender.
- This can range from a full design to production information and coordination only.
13
Q
Who carries out the design for the contractor in a design and build?
A
- It may be outsourced to a separate design company (contractor retains responsibility).
- They may have in-house design capabilities or the client’s team may be novated.
14
Q
What is the difference between management contracting and construction management?
A
- Under management contracting, the Main Contractor is in direct contractual relationships with the trade contractors and the client is in contract with the Main Contractor only.
- Under construction management the client is in direct contractual relationships with each of the trade contractors and the construction manager isn’t.
15
Q
How do you identify the client requirements before
recommending a procurement route?
A
- Through detailed discussions with the client and design team to identify their priorities in terms of cost, time, quality, and risk.
16
Q
If the client wishes to start on site asap, what route
would you recommend?
A
- My recommendation would need to take into account their other requirements such as cost and quality.
- If time was their overriding priority, then a Design & Build procurement option may offer the best solution
- This can offer the fastest start on site with overlap of the design and construction.
17
Q
What is GMP?
A
- Guaranteed maximum price.
18
Q
What does a GMP mean to you?
A
- A lump sum contract under which there is no adjustment of tender price unless design changes are requested by the client.
19
Q
What is Partnering?
A
- A long term approach of structuring business relationships.
- It involves two or more organisations working together to achieve specific mutual objectives.
20
Q
What is project partnering?
A
- All members of the professional team become involved in the partnering process at the design stage including contractors.
- Ownership of risk is spread between the parties and a collaborative approach is encouraged
21
Q
What is Strategic Partnering?
A
- A long-term relationship that is established with a view to undertaking a number of projects over a long period.
22
Q
What are the benefits of partnering?
A
- The potential for conflict is reduced.
- Improved client satisfaction is gained.
- Improved buildability with early involvement of contractors.
- Better predictability of time and cost.
23
Q
What is tendering?
A
- A structured procedure for generating quotations from suppliers or contractors in order to award construction work
24
Q
What are the main methods of choosing a contractor?
A
- Open tendering.
- Selective tendering:- Single or Two Stage.
- Negotiated tendering.
- Serial tendering.
25
What is open tendering?
- Open tendering allows anyone to submit a tender for the works or services that are required.
- There are little or no barriers to entry needed to submit a tender.
26
What are the advantages of open tendering?
- It provides opportunities for capable firms which the clients may have not previously considered.
- It should secure maximum competition from the open market.
27
What are the disadvantages of open tendering?
- There is no assurance that the lowest tenderer is capable or financially stable.
- The total cost and time needed to review the tenders is increased.
28
What is selective tendering?
- This restricts the number of tenderers by pre-selecting a limited number of contractors to tender for the work.
29
What are the two types of selective tendering?
- Single stage and two stage.
30
What is single stage tendering?
- A structured process of receiving competitive tenders from a number of pre-selected capable contractors.
- This can be based on financial standing, previous track record, capacity and resources available.
31
What are the advantages of single stage tendering?
- It tends to reduce the aggregate cost of tendering.
- It reduces the risk of receiving tenders from unsuitable contractors.
32
What is two stage tendering?
- Two stage tendering is where the Client seeks to appoint the Contractor based on an outline scope of work that is not fully defined.
- The client then works with the appointed contractor to develop the scope of work and reaches an agreed price.
33
What is the purpose of the first stage in two stage tendering?
- This initial phase allows the tenderers to submit details under a pre-construction agreement.
- It includes aspects regarding project preliminaries, method statements, design, overheads, and profit.
34
What is the purpose of the second stage in two stage tendering?
- Following development of the design, a formal negotiation process is undertaken during stage 2
- This is to agree the final price, contract conditions and programme.
35
What do tenderers return as part of the first stage?
- Detailed build up of prices for the preliminaries items.
- Percentage additions for profit and overheads.
- A construction programme.
36
What are the advantages of two stage tendering?
- Early involvement of the contractor.
- Encouragement of collaborative working.
- Potential for an earlier start on site.
37
What are the disadvantages of two stage tendering?
- Cost certainty may not be achieved before construction starts.
- The contractor could take advantage of second stage negotiation and increase costs.
- PCSA fee
38
Why should you use 2 stage tendering?
- With a complex building and if early completion is required.
- Where the design team would like to make use of contractors expertise on buildability issues.
39
What is negotiated tendering?
- Where the client has an existing preference for appointing a particular firm and only negotiates with one contractor.
40
When might negotiated tendering be used?
- When the contractor has carried out work successfully for the client previously where they have an existing relationship
41
What is serial tendering?
- Contractors are asked to bid for a project on the basis that if they complete the initial project well, other projects of a similar type will follow and the same bill rates will be applied.
42
What could selecting the wrong contractor lead to?
- A bad client & contractor relationship.
- A dissatisfied client.
- An insolvent contractor.
43
How would you put together a set of tender
documents?
In accordance with JCT practice note 2017 I would include:
- ITT (Invitation to tender letter)
- Form of tender
- Pricing documentation
- Drawings and specification
- Pre-construction H&S information.
- Conditions of proposed contract.
44
What is the form of tender?
- A pre-printed formal statement in which the tenderer fills in the blank spaces.
- The tenderer provides their name, address and price for the works
45
What are the employer’s requirements?
- They set out the client’s requirements including the function, size, and quality of the project.
46
What are the contractor’s proposals?
- The contractor’s response to the Employers Requirements.
- They are the key documentation for the client to consider at the tender review.
47
What information would you request in the pre-qualification
questionnaire?
- Management structure.
- relevant experience.
- Company accounts.
- Health and safety records.
- Provision of bonds, & warranties.
48
How would you determine the duration of the tender period?
- It depends on the procurement process and size of the project.
- It is better to ensure there is sufficient time so contractors can price the project correctly
- rather than rush and encourage contractors to price a high risk element into the tender.
49
What is a PQQ?
- Sets out a series of questions for potential tenderers to answer in order to reduce the number of tenders to those that are genuinely appropriate.
50
What does the ITT document set out?
The ITT document sets out:
- State the recipient, time, date and location of submission.
- Explain the method for dealing with queries.
- Give site visit contact details.
- Require a confirmation of receipt of tender.
51
What does the preliminaries document set out?
- Provides a description of the project that allows the contractor to assess costs which cannot be allocated to a specific element of works
- This will include a general summary, method statements, pre-construction information, planning conditions and section/phasing of the work.
52
What are the benefits & disadvantages of management contracting?
Benefits
- Overlap of design and construction by tendering certain
packages early.
- Beneficial on complex and/or specialist projects.
- Client is are able to retain control of the design.
Disadvantages
- unsuitable as a procurement route for inexperienced clients since, works usually begin before the nature of the completed building is known.
53
What are the benefits & disadvantages of construction management?
Benefits
- A competent person to help you through the decision
making process
- Greater control over the outcome of your project
- A collaborative, non adversarial delivery team
Disadvantages
- Failing to programme the project in the most effective
way
- Failing to sufficiently manage the quality of the project
- Failing to deliver the project on time or on budget
54
What is standard retention amount in a MW contract?
5%
55
What is the diffrence between the CA & QS role?
CA: Manages the building contract. Roles:
*Assess extensions of time
*Certify payments
*Manage change control processes
*Act fairly between employer and contractor under JCT
QS: Manages the cost and commercial side. TRoles:
*Ascertain loss and/or expense
*Carry out interim valuations
*Prepare the final account, prepare cost plans, advise on procurement, carry out tendering, manage change control, value variations, assess costs, and ensure the project stays within budget.
56
JCT 2024 Updates
*Electronic notices & e-signatures now fully allowed.
*New “Relevant Events” & “Relevant Matters” (grounds for extension of time / loss & expense) include: epidemics (labour/materials disrupted), publication of new guidance or law, discovery of asbestos/contaminated material/unexploded ordnance.
*Collaborative working and sustainability/environmental obligations
*Gender-neutral language throughout
*The Building Safety Act 2022 introduced a new role of dutyholder in relation to the Building Regulations.
*Employer obligations on assessing delay added - 14 days to request further information, 8 weeks to review & award.
57
Sectional Completion - what happens with insurance?
When a section achieves Sectional Completion, insurance responsibility for that section shifts in the same way it would at Practical Completion for the whole works.
58
You granted an EOT on Addison Road, what relevant events did these fall under?
Adverse Weather
59
How did you determine that the weather was in fact adverse?
Compared the actual weather data during the delayed period with the 10-year historical averages for that specific location (from the Met Office). Under JCT, weather is considered adverse when it is exceptionally severe compared to long-term norms.
60
How did you assess the EOT on Addison Road?
Assessed weather by comparing actual data vs 10-year Met Office averages and checking critical path impact → met JCT threshold for adverse weather.
Checked train strike against JCT Relevant Events → not applicable as it didn’t involve trades on the works or material supply chain → contractor’s risk.
61
What are reckoning of days?
Where the period would include a day which is a public holiday that day shall be excluded
62
What was on your Eot?
*Reference to the Contract
*Original completion date
*Date notice was received & basis of the claim
*Relevant Events assessed
*Number of days granted (or refused/partially granted).
*The revised Completion Date.
*Signature and date.
63
Explain how you deal with materials on site?
See them, labelled, separate to others, insurance & vesting.
64
On Addison Road, what did you advise the client in terms of Materials off site?
advised the Client that we should not release funds until the Contractor had suitably met their obligation under the contract to release payment for these materials.
65
Explain your advice of contract selection on Victoria Rd?
JCT SBC selected - due to the complexity and scope of the works.
66
Please explain a collateral warranty schedule?
A collateral warranty schedule sets out who must provide warranties, to whom, and on what terms, ensuring third parties have direct contractual rights against the contractor or designers.
67
What is a target cost contract?
A target cost contract is a form of contract where the price is agreed as a target, not a fixed lump sum.
68
What is CDP?
Contractors Design Portion - where design responsibility is transferred from the employer/designer to the contractor.
69
When do you use CDP?
For specialist packages that requires specialist design input from the contractor.
70
Examples of CDP Items on your projects?
M&E, Lifts, Sprinkler Systems.
71
How do you value change?
Using CSA rates as a first basis if it is directly applicable, if the work is similar but not identical, adjust them, if not, build up a fair and reasonable cost.
72
What is the rectification period?
The rectification period is a period following Practical Completion during which the contractor must return to make good any defects.
73
How do you manage a 2 stage tender process?
Two-Stage Tender:
Stage 1 selects a contractor based on prelims, OH&P, capability and agrees a PCSA.
Stage 2 develops the design with the contractor, obtains subcontract prices, and negotiates an agreed contract sum before entering the main contract.
74
How can you avoid inflated costs in stage 2 of 2 stage tendering?
Obtain multiple subcontract quotes.
Benchmark costs
Control scope changes
75
Please can you summarise your advice to the client as a result of your PQQ process?
Based on financial, capability, experience, resources, insurances, and past performance.
Where necessary, use Dunn & Bradstreet to check financial standings and identify high risk contractors early.
76
How do you prepare a set of prelims?
Using the NBS template, inserting project-specific information, aligning with the JCT contract, coordinating input from the design team, and ensuring all site, quality, management, and contractual requirements are clearly defined.
A20 - contract!
77
What are prelims?
Preliminaries are the project-specific requirements that describe the site setup, management, services, and contractual obligations needed to deliver the works but which are not part of the permanent building.
78
What are the benefits of getting a contractor on site/involved early?
Buildability - enhancing their knowledge and experience. Improved programming.
79
Can you explain what you mean by a two
phase tender?
Essentially splitting the project into 2 phases and doing 2 separate traditional single stage tenders.
80
What are the risks of a two phase tender?
Phase 1 delays, knock on effect on Phase 2. Responsibility gaps making it harder to identify liability. Potentially less economy of scale by splitting the tender.
81
How can you minimise/mitigate the risks of two phase tenders?
Use NBS prelims and contract appendices to define the overlap period, Enhanced Information Handover, insurances (joint names for both contractors during the overlap), Define Responsibilities for Latent Defects Clearly, accurate as builts
82
What are the benefits of construction management?
Early start on site
Faster programme
Employer appoints trade contractors
Open-book cost transparency
Flexible design changes
Early specialist input
Less risk pricing (more risk to Employer)
83
D&B Design risks?
Poorly defined ERs can lead to disputes,
84
When is the last RIBA stage to make a procurement descision?
The procurement route should be agreed by the end of RIBA Stage 2 to allow the design to develop appropriately in later stages.
85
Who holds H&S responsibility in projects?
Client – holds the overall responsibility for ensuring suitable arrangements for managing health and safety are in place throughout the project.
86
How do you analyse tenders?
In accordance with the assessment criteria; price, programme, risk and assumptions, experience
87
What would you consider an ok tender variance?
0.05
88
Why use a JCT contract?
JCT contract is used because it is a well-established, industry-recognised standard form that provides clear allocation of risk, fair contract administration, and certainty over time, cost and quality.
89
What if 2/4 tenderers pulled out on the day of the return?
Review the tenders, if they are in proximity of each other and the PTE discuss with the client. IF not, consider retendering
90
What anomalies might you discuss in a tender report?
Significantly lower/higher tender sum compared to the other contractors, low preliminaries, high OH&P
Molly - APC
flashcards
Decks in class (23)
# Cards
-
Mandatory COPY191
-
Project Finance36
-
Quantification & Costing34
-
Risk Management18
-
Contract Administration12
-
Random Q&A Practice60
-
Design Economics & Cost Planning65
-
Procurement & Tendering90
-
Case study59
-
CONSTRUCTION TECH 142 Q148
-
Construction Tech MO83
-
Contract Practice161
-
Ethics, rules of conduct and professionalism50
-
Client care22
-
Communication & Negotiation13
-
Health & Safety25
-
Accounting principles and procedures11
-
Business Planning9
-
Conflict avoidance, management and dispute resolution procedures21
-
Data Management15
-
Diversity, inclusion and teamworking8
-
Inclusive environments4
-
Sustainability16
