Tendering

Tendering

What is tendering?
1. Tendering is a method of obtaining the resources necessary to carry out the required work
what is open tendering?
1. advantages?
2. disadvantages?
What is selective tendering?
1. Advantages?
2. what are the two types of selective tendering?
  1. What is two stage tendering?
    1. Separates the processes involved with selecting a contractor from the processes for determining the price for the works
    2. Used when it is desired to obtain the benefits of competition and have the advantage of bringing a contractor into the planning of the project and g
  2. Single
    1. What is single stage tendering?
      1. Advantages of Single T?
        Cost certainty
        early contractual commitment on price
        prevent the project team from proceeding to construction without a complete design
        funders value the agreed contract sum as it gives greater security to an application for loans or grants
        Risk allocation
        The client and contractor have a clear statement of risk allocation in the contract.
        Avoidance of cost escalation during second-stage tendering
        The contractor is not given an opportunity to revisit the pricing.
        Competitive pricing
        The full scope of work is priced in competition with other bidders.
        Cost of tendering
        When available, pricing documents provided by the employer simplify the bidding process.
        Collaborativeworking
        A complete, well-documented design provides a clear demarcation of design and construction responsibilities
        Client influence over the selection of specialists
        Keeping the client at arm’s length over the selection of the contractor’s team helps to clarify the allocation of risk in the contract.
        Overall speed of project
        Timescales are known and there should be less opportunity for extended negotiation during the tender period than with a two-stage approach.
      2. Disadvantages of single?
        Cost certainty
        firm price is only as good as the design information
        Changes introduced by the client or design team will undermine the certainty achieved with a lump-sum tender
        Risk allocation
        The contractor’s offer of risk transfer may have little value if its assessment of costs, programme or working method is incorrect
        Avoidance of cost escalation during second-stage tendering
        Second-stage tendering helps the contractor to understand the design.
        The use of provisional items as a substitute for a complete design can give the contractor a “second-stage” pricing opportunity.
        Competitive pricing
        Competitive pressure may encourage tenderers to take risks in their pricing.
        The tenderer’s bids are based on logistics options prescribed in the tender documentation and may not represent the best value solution.
        Cost of tendering
        Single-stage bids are more resource-intensive and, relative to the spend, tenderers have a lower chance of winning a job.
        Collaborative working
        Single-stage traditional procurement offers limited scope for a team to develop a shared objective or for a contractor to contribute to design develop
        Competitive tendering and lump-sum contracts can lead to adversarial behaviour related to the effects of changes to the agreed scope of work
        Overall speed of project
        Sequential design and construction removes opportunities for acceleration of the overall programme.
        Clarification of contractor’s proposals related to contractor-designed work may take an extended period of time.
        Receipt of tenders above budget could delay the project as redesign and re-pricing must be completed before the contract sum is agreed
        No work can commence before the contract sum is agreed.
        Client influence over the selection of specialists
        The client has a limited opportunity to influence the selection of specialist contractors.
  3. Two Stage
    1. what is the purpose of the first stage?
    2. what is the purpose of the second stage?
    3. what do tenderers return as apart of the 2nd stage?
    4. are there any precautions to take when entering the 2nd stage?
    5. Advantages
      1. EARLY INVOLVEMENT OF CONTRACTOR AND BUILDABILITY ADVICE
      2. ASSISTANCE FROM Cr WITH DSN DEV.
      3. RELATIONSHIPS BUILT WITH Cr & DSN TEAM
      4. POST CONTRACT RISK = Cr
      5. 1ST STAGE GIVES LIKELY COST AT EARLY STAGE
      6. Cr APPOINTMENT AHEAD OF TRAD ROUTE
    6. Disadvantages
      1. SECOND STAGE TENDER SUM WILL NOT BE AS COMPETITIVE AS FULL BQs
      2. FLOAT REQD IN 2ND STAGE IF NEGOs = UNSUCCESSFUL
      3. MORE SUITABLE FOR LARGE COMPLEX PROJECTS
      4. UNDERCUT AT 1ST STAGE, RETRIEVE AT 2ND
      5. PROTRACTED 2ND STAGE, PRO RATA RATES AGREED
Negotiation/ Nomination?
1. When is it used?
2. How does it work?
3. Advantages
4. Disadvantages
Serial Tendering
1. What is it?
2. When is it used?
3. Advantages
4. Disadvantages?
OJEU
1. what is it?
2. what is it for?
3. what are the thresholds?
Joint Venture
Framework Agreement
what would selecting the wrong contractor lead to?
what is NJCC
How would you put together a set of tender documents?
what information would the instruction to tenders contain?
what is the form of tender?
what are the contractors proposals?
how do you decide which contractors to go out to?
what is preliminary enquiry letter and what would you include?
what would you include in the pre-qualification questionnaire?
Electronic tendering?
1. what is electronic tendering?
2. do you know of any e-tendering services?
3. advantages?
4. what is online bidding?
how many contractors would you include on a tender list?
how do you determine the duration of the tender period?
when seeking tenders for construction work, in addition to the actual fee bid, what info would clients typically expect to be submitted?
how do you decide on the number of tenderers?
how does the contractor price day works in their tenders?
why should you as a surveyor examine the tenders
what should be examined or looked for in a tender?
what procedure after submission date and time has passed for tender returns?
what happens is a tender is late?
how do you evaluate the contractors proposals for CDP/D&B?
what is the danger of accepting a very low tender?
what happens is a tender return is higher than the cost plan, pre-tender estimate?
How do you deal with errors in tender returns?
what would you do in a traditional procurement route, if the tenderer returned an alternative tender with a different method of construction?
How do you deal with qualifications?
what do you if the lowest tenderer had submitted no pricing of the prelims, would you recommend he was accepted?
what do you do if you considered a contractor submitting the lowest tender to be financial difficiulties?
how do you deal with front loaded BQs
how do you carry out a tender valuation?
what is included in a tender report?

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