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    3 Two Stage Tendering Guidance

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    linkdanu
    Two-stage tendering is a procurement method involving selecting a preferred contractor in the first stage based on quality and outline pricing, then negotiating a final price in the second stage. It is recommended for high-value construction projects over £3.834 million. The process brings the design team and main contractor together early on to develop the design and provide accurate cost and schedule information. This results in better value, coordination, and a non-adversarial relationship between parties.

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    3 Two Stage Tendering Guidance

    Uploaded by

    linkdanu
    495 views4 pages
    Two-stage tendering is a procurement method involving selecting a preferred contractor in the first stage based on quality and outline pricing, then negotiating a final price in the second stage. It is recommended for high-value construction projects over £3.834 million. The process brings the design team and main contractor together early on to develop the design and provide accurate cost and schedule information. This results in better value, coordination, and a non-adversarial relationship between parties.

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    Tendering

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    Two-stage tendering is a procurement method involving selecting a preferred contractor in the first stage based on quality and outline pricing, then negotiating a final price in the second stage. It is recommended for high-value construction projects over £3.834 million. The process brings the design team and main contractor together early on to develop the design and provide accurate cost and schedule information. This results in better value, coordination, and a non-adversarial relationship between parties.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    495 views4 pages

    3 Two Stage Tendering Guidance

    Uploaded by

    linkdanu
    Two-stage tendering is a procurement method involving selecting a preferred contractor in the first stage based on quality and outline pricing, then negotiating a final price in the second stage. It is recommended for high-value construction projects over £3.834 million. The process brings the design team and main contractor together early on to develop the design and provide accurate cost and schedule information. This results in better value, coordination, and a non-adversarial relationship between parties.

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    Attribution Non-Commercial (BY-NC)
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    Corporate Procurement Unit Guidance Two Stage Tendering Guidance

    PROCUREMENT GUIDANCE
    2 Stage Tendering Definition 2 stage tendering is a method of tendering which involves firstly through a competitive exercise based on outline pricing and quality the identification of a preferred contracting organisation; the second stage includes negotiation and working with the preferred contractor in order to arrive at a final price for the scheme. 2 stage tendering is recommended for high value construction schemes, usually over European Union threshold for works (currently 3.834 million) Benefits of Two Stage Tendering Two-stage tendering brings together the design team and main construction contractor(s) to develop the scheme from the initial design (RIBA Design Stage E). The partnership aims to result in the Council receiving finished schemes that offer the best overall value in terms of design, and should result in the following benefits: More accurate cost information/project cost certainty More accurate programme information and project timescales Reduced tendering time (for second part) Teamworking - joint approach allows designers, constructors and specialist suppliers to work together in an integrated team leading to joint approach to problem-solving and non-adversarial relationship Co-ordination in buildability and health and safety management Early involvement of whole supply chain

    General Requirements/LCC Internal Procedures Client Project Board Approval

    V1010105310306

    Submit Design and Cost Report and obtain Authority to Spend for scheme. Invoke Contracts Procedure Rule to negotiate In conjunction with CPU contract to be advised using negotiated procedure to allow negotiation with the preferred main construction contractor during stage 2 of the procurement process. Tendering procedure - first stage The first stage is the quality/price stage 1 tender exercise Advert, PQQ, Evaluation, Short-listing Tender documentation issued Selection criteria to be a combination of price and quality.

    Interviews and Quality Evaluation (By Panel usually consisting of representatives from the Client dept, the Design team and CPU) Tenders In and Price Evaluation Project Board Report Memorandum of Understanding issued by Legal Services (CPU) to invite participating contractor to participate on Design Team (Note - no formal contract is awarded at this stage) First Stage Tender Objectives Selection of a Participating Contractor and Major Sub-Contractors Establish a level of pricing for subsequent Second Stage cost control and tender price negotiation

    Tender Documentation - First Stage - Principles Stage 1 documentation should be kept to a minimum, sufficient only to provide an element of competition Communicate design principles, budgets and cost plans Provide limited pricing document Explain the procurement procedure State the proposed Stage 2 Prelims and Conditions of Contract The submitted first stage tender price should not represent anywhere near the full cost of carrying out the works

    Tender Documentation - First Stage - Actual 1) Invitation to Tender - Standard Letter 2) Instructions for Tendering Process for Two Stage Tendering Status of Priced Document Arrangements for Interview/Presentation

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    Evaluation Criteria Index Linking Criteria

    3) Project Particulars: Description of Works Project Organisation Chart Design Team Composition Programme proposals Cost Plans Participating Contractor Pre-Construction Duties 4) Pricing Document Preliminaries including Project Particulars and Conditions of Contract Notional Schedule of Rates (Only major items likely to be encountered in final scheme) Outline Descriptions/Specifications of Workmanship and Materials Dayworks Schedule 5) Form of Tender Priced Schedule Total - Lump Sum (should not equate to cost limit) Overheads and Profit Percentages (for information re. oncost to subcontractors and suppliers) Abort Fee - Lump Sum 6) Drawings - Drawings relative to the project stage achieved 7) General Standard Receipt Acknowledgement Standard Tender Envelope Stage 2 Processes Team Forming/Familiarisation Project team meetings Client Liaison/End User Consultation Constructing Excellence/Best Practice Issues Design scrutiny/development Cost checking & Cost Control Value engineering Sub-Contractor & Supplier tendering

    Stage 2 Tender Documentation Final Proposals/Working Drawings Production Information H&S Plan

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    Full Bill of Quantities - Jointly Prepared (pricing based on submitted 1st Stage Prelims, tender rates where applicable & quotes/tenders etc. obtained and agreed during pre-contract stages)

    Stage 2 Approval and Documents Authority to Tender Tender Documentation Contractors Formal Tender Submission Tender Report and Analysis

    Development of project and submission of second stage tender The Design Team, including contractors and sub-contractors representatives work through detailed design of the scheme, working drawings and production of information. The input of the contractor to the design team will include: Design/buildability advice Production selection advice Programme information Information on sub contracting - Open Book arrangements Health and Safety information Cost implementation/value engineering

    Quantity Surveyor and contractor prepares measured Bills of Quantities, contractor then submits 2nd stage tender to Corporate Procurement Unit Contract is accepted and subsequent usual mobilisation and commencement of contract.

    V1010105310306

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