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60 Cards in this Set
- Front
- Back
What is tendering? |
Tendering is a method of obtaining the resources necessary to carry out the required work |
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What are the main methods of choosing a contractor? |
Open tendering |
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What is open tendering? |
Indiscriminate request for tenders |
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What are the advantages of open tendering? |
No charge of favouritism
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What are the disadvantages of open tendering? |
Danger lowest tender is inexperienced or has made lots of errors
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What is selective tendering? |
Restricts the number of tenderers by pre-selecting a limited number of contractors to tender for the work |
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What are the two types of selective tendering? |
Single stage
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What is single stage tendering? |
A structured process of receiving competitive tenders from a number of pre selected capable contractors, who provide a lump sum for the works |
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What are the advantages of single stage tendering? |
Ensures only capable and approved firms submit tenders
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What is two stage tendering? |
Separates the processes involved with selecting a contractor from the processes for determining the price for the works
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What is two stage tendering: what is the purpose of the first stage and second stages? |
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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 |
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Are there any precautions you should take before entering the 2nd stage process? |
Define procedure for either party to withdraw should 2nd stage negotiations prove abortive, what payments become due. |
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What are the advantages of two stage tendering? |
Early involvement of the contractor |
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What are the disadvantages of two stage tendering? |
Cost certainty may not be achieved before construction starts |
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Why should you use 2 stage tendering? |
Building is complex |
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What is negotiation / nomination?
When might this be used? |
Where the client has a preference for a particular firm. |
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How does negotiation / nomination work? |
There is no competition – likely to lead to a higher price |
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What is serial tendering? |
Effectively strategic partnering
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What is a framework agreement? |
A list of contractors selected by the client after a formal tendering procedure to work over a long period of time
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What is a joint venture? |
Used on large complex projects when 2 or more companies take on a joint and several liability for design and execution of the project. |
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What is OJEU? |
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What is OJEU for? |
Public sector tendering: |
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Works - £4,322,012
£172,514 (depending on gov body)
Source: Cabinet Office Procurement Policy Note - New Threshold Levels for 2014 |
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What could selecting the wrong contractor lead to? |
A bad client / contractor relationship
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What is NJCC? |
National Joint Consultative Council for Building |
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How would you put together a set of tender documents? |
In accordance with JCT practice note 6. Include: |
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What information would the instructions to tenders contain? |
Date for return |
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What is the form of tender? |
A pre printed formal statement in which the tenderer fills in the blank spaces.
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What are the employer’s requirements? |
Sets out the client’s requirements e.g. function, size, accommodation, quality |
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What are the contractor’s proposals? |
The contractor’s response to the ERs |
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How did you decide which contractors to go out to? |
Preliminary inquiries based on design team recommendations. |
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What is a preliminary enquiry letter and what would you include? |
1 month before tendering, send out tender enquiry letter to ascertain whether firms are willing to submit a bona fida tender. (avoids contractor submitting cover price) |
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What would you include in the pre-qualification questionnaire? |
Details of contract particulars, in accordance with practice note 6 |
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What is electronic tendering? |
All the forms, documents and drawings are uploaded onto a server |
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Do you know of any e-tendering services? |
The RICS has an e-tendering service
The cost is £500 to register each tender uploaded onto it |
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What are the advantages of e-tendering? |
May be possible to reduce the tender period – rapid transmittal of docs |
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What is on line bidding? |
Tenderers can view and download the tender info online |
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How many contractors would you include on a tender list? |
Refer to the Code of Procedure |
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How would you determine the duration of the tender period? |
Depends on the procurement process and size of the project |
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When seeking tenders for construction work, in addition to the actual fee bid, what information would clients typically expect to be submitted? |
Track record of previous experience |
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How did you decide the number of tenderers for the project? |
If D&B, have less tenderers (say 2 or 3) due to cost and time implications; contractors would like to think they had a good chance in return for their capital outlay.
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How does a contractor price day works in their tenders? |
The QS will have included a lump sum for the particular daywork item
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Why should you as a surveyor examine tenders? |
Check tenderer has included everything, if not to ascertain whether they are still the lowest.
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What should be examined, looked for in a tender? |
Arithmetical errors (comp checking)
Pricing errors (Items not priced, or same item but different prices in diff sections)
Pricing methods (front, back loading)
Qualifications |
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What is the procedure after the submission date and time has passed for tender returns? |
Formal procedure: eliminate suspicion of irregularities |
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What happens if a tender is late? |
Safest Option is not to consider- (Fraud, Collusion, Bid-rigging) |
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How do you evaluate the Contractor’s proposal for D&B? |
Not solely on price! |
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What criteria should be considered if not on price alone? |
Approach (method statement and programme) |
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They may have missed some of the works |
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What happens if tenders are returned and are higher than cost plan, pre-tender estimate? |
Could be market problems, need to reconcile to identify major differences, VE process could take place on those elements. |
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How would you deal with errors in tender returns? |
Depends on which alternative chosen on instructions to tenders They should inform the contractor who can choose to confirm, amend or withdraw. NB See JCT Tendering Practice Note |
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What would you do in a traditional procurement route, if the tenderer returned an alternative tender with a different method of construction? |
Assuming you had asked them to supply an alternative tender you would assess it along with other returns and liaise with client. |
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How do you deal with qualifications within the tender? |
Procedure should be outlined when you go out to tender – in the instructions |
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What would you do if the lowest tenderer had submitting no pricing of the preliminaries, would you recommend he was accepted? |
Depends on the form that the tender was sent out in and instructions to tenderers |
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What would you do if you considered a contractor submitting the lowest tender to be in financial difficulty? |
As part of the evaluation of tenders you would look at the company accounts (if not at PQ) |
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On what grounds would you advise the client to re-tender? |
Not enough tenderers returned tenders |
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How would you deal with a front loaded BQ? |
This is not a pricing error – removing the front loading would not reduce tender price |
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How do you carry out a tender evaluation? |
Need a breakdown of the tenders, check them to ensure they have been priced in accordance, that there are no errors, qualifications or exclusions |
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What is included within a tender report? |
List of tenders received |