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Procurement and Tendering 2025/
What are the most common types of procurement routes used within the UK construction industry? - โโโข Design and Build - 28 Powell Road and Falmer Avenue
- Construction Management - Prinsted Court, Woodfield and Christ's
- Management Contracting - No experience
- Traditional - Christ's Hospital Refurb, Park Street and Flying Fantastic What are the advantages and disadvantages of each of the main types of procurement route and what factors would you consider when recommending the most suitable procurement route to your client? (Part 1) - โโโข Design and Build (D&B); Advantages; o Construction can start earlier, reducing the overall project delivery time o A lump sum can be obtained before the design is complete o One point of responsibility once the design and build contract is awarded o Early engagement in the design process to get a more practical build- able solution o Possibility to reduce overall costs as contractors may be able to design specialist elements at a lower cost than professional consultants o The ability to adopt a two-stage procurement approach o The ability to novate the design team to the design and build contractor
What are the advantages and disadvantages of each of the main types of procurement route and what factors would you consider when recommending the most suitable procurement route to your client? (Part 2) - โโโข Design and Build (D&B); Disadvantages; o If the specification is too open to interpretation, the contractor may exploit this to their advantage, proposing specifications for products that are the lowest grade possible to achieve the basic requirements in the specification o Tenders may be difficult to compare if an inadequate PD isn't included with the tender documents o The employer may pay more if they ask the contractor to take on an unreasonably high level of risk due to a lack of design clarity at the point of tendering o The quality may be compromised if the employer's requirements do not protect the employer adequately by way of ensuring specifications are adhered to What are the advantages and disadvantages of each of the main types of procurement route and what factors would you consider when recommending the most suitable procurement route to your client? (Part 3) - โโโข Construction Management; Advantages o Complex/specialist projects - individually appointed packages to best suited sub-contractor o Time - It is possible to overlap design and construction
recommending the most suitable procurement route to your client? (Part 6) - โโโข Management Contracting; Disadvantages o As per Construction Management o Less positives in terms of cost savings on OHP's What are the advantages and disadvantages of each of the main types of procurement route and what factors would you consider when recommending the most suitable procurement route to your client? (Part 7) - โโโข Traditional; Advantages o Quality - Full design pre-tender o Design control - Through the architect / contract administrator o Contractor's Designed Portion - such as mechanical and electrical engineering where a specialist input may be required o Cost - there may be lump sum cost benefits unless are multiple changes made What are the advantages and disadvantages of each of the main types of procurement route and what factors would you consider when recommending the most suitable procurement route to your client? (Part 8) - โโโข Traditional; Disadvantages o Time - require full detailed pack pre-tender o Cost - not a benefit if many changes made o Design flexibility - changes post-contract likely to be costly (time and money) o Incomplete drawings - lead to delay, costs and claims of negligence
What is your understanding of partnering and framework agreements and the pros and cons of these. (Part 1) - โโโข Partnering; o Became popular largely as a result of Sir Michael Latham's report, 'Constructing the Team' in 1994 o This was followed by publication of 'Partnering in the Team' by the Construction Industry Board. o It is most commonly used on large, long-term or high-risk contracts. o Partnering can be adopted for a one-off project, or can be a long- term relationship over a number of projects (such as a framework agreement) o The longer the contract, the greater the benefit of partnering as there is more opportunity for building working relationships, finding improvements and planning investment. o Contracts are often arranged on a cost-reimbursable, target-cost, open-book basis including both incentives, and penalties. What is your understanding of partnering and framework agreements and the pros and cons of these. (Part 2) - โโโข Frameworks; o Clients that are continuously commissioning construction work might want to reduce procurement timescales, learning curves and other risks by using framework agreements. o This allows the client to invite tenders from suppliers of goods and services to be carried out over a period of time on a call-off basis as and when required.
o The preferred tenderer is selected and negotiations opened prior to an appointment o Pros; Shorter overall tendering time Competitiveness remained throughout the tender process Traditional and well understood unlike two-stage o Cons; Limited flexibility / rigid processes Risk of the contractor being appointed on the basis of an unbuildable design Limited input from specialists regarding technical specifications/details What is your understanding of single and two stage tendering including differences and pros & cons of each? (Part 2) - โโโข Two-Stage; o Pros; Dore flexible approach as it allows participation of prospective bidders in the definition of the technical specifications and scope of work The preferred bidder is more likely to have a good understanding of the requirement Prospective bidders are able to make suggestions for improvement of the technical specifications and scope of work of the assignment The second stage tendering time is reduced. Risk is minimized given the early involvement of prospective bidders
What is your understanding of single and two stage tendering including differences and pros & cons of each? (Part 3) - โโA financial proposal is submitted only after reaching agreement on the technical specifications and scope of work. A collaborative approach which can deliver maximum value. Early involvement of the contractor and "buildability" ensured In theory, there should a decreased likelihood of disputes arising Client remains imbedded in the design process however the risk lies with the contractor What is your understanding of single and two stage tendering including differences and pros & cons of each? (Part 4) - โโo Cons; Extended procurement lead-time due to two stage submission process. Second stage negotiations with the preferred bidder could prove difficult and protracted. There is risk of price escalation and negotiations becoming adversarial in the second stage. Once a firm is selected for negotiations, competition is lost, and this may impact price. Can you outline your understanding of OJEU tendering including the processes, procedures, thresholds, public procurement rules and the timescales? (Part 1) - โโโข The European Union Procurement Directives establish public procurement rules throughout the EU
- Enacted in the UK by The Public Contracts Regulations
- Resource issues in the tender evaluation period
- Increased risk of poor quality bids and/or a challenge Can you outline your understanding of OJEU tendering including the processes, procedures, thresholds, public procurement rules and the timescales? (Part 3) - โโo Restricted procedure There is a pre-qualification process Only short-listed candidates are invited to tender o Competitive dialogue procedure. There is a pre-qualification process. Short-listed candidates are invited to take part in a dialogue process during which the nature of the project may be discussed and possible solutions may be developed. When the dialogue process is complete, final tenders are invited. o Competitive negotiation procedure There is a pre-qualification process. Short-listed candidates are invited to take part in a negotiation process. This process does not have to follow any particular rules, and has no formal ending. Means that negotiations can continue even after the preferred bidder is appointed
Can you outline your understanding of OJEU tendering including the processes, procedures, thresholds, public procurement rules and the timescales? (Part 4) - โโLook at Evernote You mention in your SoE's that you are aware of cost led procurement, what is your understanding of this? (Part 1) - โโโข Developed in response to the Government construction strategy 2011 - 15
- Second Government Construction Strategy 2016 - 2020 was published in March 2016
- It set out plans to deliver ยฃ1.7 billion of efficiencies and 20, apprenticeships.
- To achieve a 15-20% reduction in public sector construction costs by 2015
- Involve early contractor involvement, transparency and integration You mention in your SoE's that you are aware of cost led procurement, what is your understanding of this? (Part 2) - โโโข Also expected to contribute to a reduction in project risk, improved programme accuracy and an enhanced working relationship between client and the supply chain
- In Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated
- Integrated supply team identified work together to complete the project at below the ceiling cost
- The CLP plan involves five phases:
Fee Schedule Template (Surveys/Reports, Approvals/Consents, Fees, PCSA Management) OHP's were as per agreed in the framework contract Outline project / planning information Draft Employer's Requirements Draft PCSA PCI You state that you have produced tender documents for various procurement routes, can you detail what documents you have produced and how have they differed between different procurement routes? (Part 2) - โโo Falmer Avenue; ITT ER's and appendices CSA Drawings Planning Documents Reports and Surveys (SI, Archaeology and Southern Water) F10 and PCI Draft Contract and Draft Amendments You state that you have produced tender documents for various procurement routes, can you detail what documents you have
produced and how have they differed between different procurement routes? (Part 3) - โโโข Powell Road (Stage 4) - D&B o ITT o Form of Tender o CSA o Full Technical Design o Form of Contract, Conditions and Amendments o Final Agreed ER's o PCI You state that you have produced tender documents for various procurement routes, can you detail what documents you have produced and how have they differed between different procurement routes? (Part 4) - โโโข Construction Management Projects (Between Stages 2 and 5) - CM o ITT o Scope of Works o Drawings / Construction Details o Building Regulations Construction Notes / Specifications o Technical Design Brief o Planning Documents (For Reference) o Pricing Document o Draft Trade Contract (With/Without Design)
o Dealing with tender queries i.e. all queries raised answered back to all tendering contractors o Opening - Date, time and location stated in the ITT, information to include on the opening form o Interviews - Initial queries and equalisation process first. Structure agreed in advance and the agenda the same for all parties At Woodfield and Christ's, how did you asses your clients' needs/project objectives and what advice did you give regarding the most appropriate procurement route because of this? (Part 1) - โโo Pre-project briefing discussing the client's priorities and requirements from the scheme o Assessed their position in regard to the key areas in time, cost, quality and risk
- Requirements; o Time - Wanted to achieve the earliest possible start and completion of the project o Cost - Wanted the scheme to be as efficient as possible in terms of cost / lower spend o Quality - Didn't have much of a position on this, ER's to be achieved as any other project o Risk - Were not averse to taking on risk if there were clear benefits to be seen
At Woodfield and Christ's, how did you asses your clients' needs/project objectives and what advice did you give regarding the most appropriate procurement route because of this? (Part 2) - โโโข Construction Management; o Time - Early start on site and we started once the groundworks and frame was designed o Cost - Potentially significant cost efficiencies to be had as a result of removing the MC OHP's o Quality - Achieved this by ensuring all design team appointments signed up to ER's. Flexible. D&B - Usual procurement route for the client, doesn't achieve cost requirements Traditional - Performs awfully in terms of the time requirements of the client MC - As per D&B. Client was prepared to take on additional risk for benefits. You state that you advised your client as to the best value trade package contractors, on what grounds did you base your assessment of best value on? - โโโข Based on the Most Economically Advantageous Tender (MEAT) Basis
- Lowest fully compliant tender achieved through a competitive tender process
- Technical understanding and advice provided during the tender process
