Tendering in construction introduction

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Tendering in construction introduction

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Tendering in construction introduction

  1. 1. Tools: you will need…. <ul><li>Pen </li></ul><ul><li>Paper </li></ul><ul><li>Calculator </li></ul>If you don’t have these then this is your “ A warning”, meaning that you attended but did not take part If you don’t have these next week then do not come to class- you will be marked absent
  2. 2. Measuring, Estimating and Tendering Processes <ul><li>There are two assessments which will be worked through in class and largely through directed study. </li></ul><ul><li>The assessment board states that deadlines must be enforced . </li></ul><ul><li>Course quality enhancements </li></ul><ul><li>From January 2009, employers will have access to monitor the SIP (student information portal and moodle) where results and tutor comments are stored on a weekly basis) </li></ul><ul><li>“ New, “now live” Meetings record -formal and informal. </li></ul><ul><li>“ New, “now live” Staff and Employer, “Student Tracking ” Facility. </li></ul><ul><li>Assessment board decisions are independent and are rarely overturned. </li></ul><ul><li>Good luck </li></ul>
  3. 3. Directed study…. <ul><li>… .requires considerable individual initiative and require the ability to work independently. </li></ul><ul><li>… .represents an excellent opportunity for you to design your own learning and allow you to work more closely with other students. </li></ul><ul><li>Next - go to moodle section 9 and download this file (Tender intro ) </li></ul>
  4. 4. Btec National Certificate <ul><li>Unit 9 Estimating and Tendering </li></ul><ul><li>Unit Description </li></ul><ul><li>provides a fundamental understanding of tendering </li></ul><ul><li>To enable students to develop a commercial awareness of tendering </li></ul>
  5. 5. Aims On completing this unit you will be able to: Understand what procurement is in construction Explain the purpose of tendering. Identify the methods of tendering
  6. 6. Summary <ul><li>To achieve this unit a student must be able to: </li></ul><ul><li>produce a tender </li></ul><ul><li>formulate an estimate </li></ul><ul><li>Evaluate different tendering procedures and contractual arrangements </li></ul>
  7. 7. What is tendering? <ul><li>To explain tendering we must place it in the context of the process from the client's idea for a building to its construction </li></ul><ul><li>The client will have approved the architect's design and working drawings will have been produced. </li></ul>
  8. 8. <ul><li>The client's quantity surveyor will have measured from these drawings to produce a bill of quantities. </li></ul><ul><li>The design team now has to select a method of procurement for the project and decide on the best method of tendering. </li></ul>
  9. 9. <ul><li>Tendering involves sending out the tender drawings and the bill of quantities or a specification in order to receive prices in the form of estimates from main contractors. </li></ul>
  10. 10. PURPOSE OF TENDERING <ul><li>Two things need to be considered before the tendering process can be considered - the procurement option and second the contract options: </li></ul>
  11. 11. <ul><li>Procurement is the process by which a contractor is selected to construct the building with regard to the contractual arrangement between the parties. </li></ul><ul><li>The contract option is the contractual arrangement that will exist between the client and the main contractor. </li></ul>
  12. 12. <ul><li>There are three main options: </li></ul><ul><li>Traditional. </li></ul><ul><li>Design and build. </li></ul><ul><li>Contract management. </li></ul>Procurement options
  13. 13. Traditional procurement <ul><li>The client selects a designer, who produces the agreed design. </li></ul><ul><li>A main contractor is then selected on a competitive bid. </li></ul><ul><li>The contractor completes the project to handover. </li></ul><ul><li>The designer supervises the works during this period. </li></ul>
  14. 14. Design and build <ul><li>In this method the client selects a main contractor to design the building and then construct it under a single contract. </li></ul>
  15. 15. Contracts management <ul><li>A management contractor is employed by the client to manage complex and large projects. </li></ul><ul><li>This person does not design the work nor directly build it. </li></ul>
  16. 16. The following is an exercise to check your understanding of what the different methods of procurement mean <ul><li>Match the procurement options to the correct descriptions </li></ul><ul><li>1.The client employs a separate designer and construction company </li></ul><ul><li>Traditional. </li></ul><ul><li>2.The client employs one company for the whole project </li></ul><ul><li>Design and build. </li></ul><ul><li>3.The client employs a manager to run the whole project </li></ul><ul><li>Contract management </li></ul>Procurement options: Traditional-Design and build- Contract management. Purpose of tendering….
  17. 17. PURPOSE OF TENDERING <ul><li>The primary objective of tendering is to select a main contractor to undertake the construction phase of the project. </li></ul><ul><li>Before selecting the main contractor a number of factors need to be considered </li></ul><ul><li>Research the following factors and report on how they affect the project….. </li></ul>
  18. 18. Project Assignment Task 7c and 7d Discuss the purpose, aims and objectives of tendering: for main or principal contractors, subcontract and supply packages. (U9-P5) Select a method for tendering for this build and state how and why this matches the build type. (U9-M4/D2) Tip: Give a description of the following different tendering methods and choose which would be suitable for your project. <ul><li>Open tendering. </li></ul><ul><li>Restricted open tendering. </li></ul><ul><li>Selective tendering. </li></ul><ul><li>Negotiated tendering. </li></ul><ul><li>Serial tendering. </li></ul><ul><li>Two stage tendering. </li></ul><ul><li>See the next slide for the Task title and further considerations.............. </li></ul>
  19. 19. Title -Factors affecting the construction project <ul><li>Consider the size of the project-how will this affect the tendering method? </li></ul><ul><li>Consider the local economic climate-how will it affect the final price? </li></ul><ul><li>Give examples of project sises and types and match them with the tender method. </li></ul><ul><li>See the library for relevant books </li></ul>

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