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SELECTION & TENDER METHODS CONTRACTORS (NEGOTIATED TENDERING - non…
SELECTION & TENDER METHODS CONTRACTORS
RIBA STAGE 4
(DESIGN),
CONTRACT AWARD
RIBA STAGE 5
(CONSTRUCTION)
CONTRIBUTING FACTORS
COST CERTAINTY
QUALITY
TIME
RISK
OPEN TENDERING
OJEU - Public Contracts Regs 2015
Threshold £4.1m
Anyone can tender - opens up to European market
SQ
- Selection Questioniare
ITT
procedure - Invitation To Tender
ESPD
- European Single Procurement Document
MEAT
criteria - Most Economically Advantegous Tender
BENEFITS
Competitive price obtained
No favourtism
Attractive to new companies
NEGATIVES
Inexperienced tenderers
Unsuitable or financially unsound
Expensive for tenderers and client
More tenderers = less chance of success
SELECTIVE TENDERING
SINGLE STAGE
All info available to calculate price
Tenders assessed
Contractor appointed using defined criteria - Cost, programme/quality
BENEFITS
Reduces abortive costs of estimating
All tenderers capable of works
NEGATIVES
Higher cost - more onerous process
Inflexible - no negotiation
Increased Design Team input
TWO STAGE
When Employer's requirements are not developed enough to price
FIRST STAGE
Preferred bidder selected on programme, method statement, detailed preliminaries, overheads and profit
Pre-construction Services Agreement (PCSA)
SECOND STAGE
Negiotation between client and preferred bidder
Design Team and contractor finalise design
Contract sum not established until end of the second stage
Time constraints on completion
BENEFITS
Flexible process
Scope for Value Engineering
Reduced cost of changes by contractor
NEGATIVES
Bargaining power of approved stage one contractor
No obligation to award the contract to stage one approved contractor
NEGOTIATED TENDERING
- non-competitive
Under OJEU threshold
Established working relationship between Client/Contractor
Specialised building techniques required
Specialist service
SINGLE STAGE
Contractor prices and prepares tender docs
QS checks rates / prices
Contentious items negotiated
Negotiated sum agreed
TWO STAGE
FIRST STAGE
Contractor negotiates prelims and % profit
SECOND STAGE
Contractor obtains tenders from sub-contractors
Used when contractor on board before design work complete
BENEFITS
Early appointment
Cost savings - contractors expertise
Established realtionships
NEGATIVES
Higher price pre-empting negotiation
Design uncertainty = cost uncertainty
SERIAL TENDERING / FRAMEWORK AGREEMENTS
Used for repeat contracts
Contract sum for subsequent contracts is negotiated
Pre-approved shortlist for best value
BENEFITS
Client - encourages lower rates for turnover
Contractor - reduces tender costs for admin/pipeline work
NEGATIVES
Client - seen as anti-competitive and exclusive
Contractor - difficult for new contractors to break in