Practice Standards

RICS guidance note rics.org/guidance RICS Professional Guidance, UK Tendering strategies 1st edition.

[Audio] The voiceover text should be a short sentence that describes what the slide contains. The text should be concise, clear and easy to understand. The example given is "This is a sample slide". The text should not contain any extraneous words or phrases such as 'the', 'a', 'an'. The text should also not include any proper nouns or abbreviations unless they are commonly used in the industry. The text should be written in a formal tone. The text should be no more than five words long. The text should be written in a way that it can be easily read by someone with visual impairment. The information provided here is intended for internal use only..

[Audio] The minimum level of service is a fundamental aspect of tendering strategies. This refers to the extent to which the client requires the contractor to deliver specific services beyond the basic scope of the project. In essence, it outlines the range of tasks that the contractor will undertake, including those related to the management of the project, its completion, and the maintenance of the final product. The minimum level of service can vary depending on the nature of the project, the complexity of the task, and the level of expertise required. By clearly defining this level of service, clients can ensure that they receive the necessary support throughout the project's lifecycle..

[Audio] The European Union's public procurement policy has been criticized for its lack of transparency and accountability, particularly with regards to the use of two-stage tendering systems. Critics argue that this system can lead to a lack of competition among bidders, as well as a lack of transparency in the evaluation process. Furthermore, critics point out that the EU's policy does not provide adequate safeguards against corruption and bribery..

iv RICS guidance note, UK.

[Audio] The Royal Institution of Chartered Surveyors (RICS) has established guidelines for its members regarding tendering strategies in the UK construction industry. According to RICS, members who follow these guidelines can expect to have some protection from allegations of negligence. However, members still have the responsibility to use their own judgment when determining the best course of action. RICS is committed to developing international standards, including the International Property Measurement Standards, International Construction Measurement Standards, and International Ethics Standards. These standards will become mandatory for RICS members. The guidelines outlined in this note are intended to represent "best practice" and are based on current case law and legislation. Members are expected to stay up-to-date with the latest developments in these areas. By following these guidelines, RICS members can demonstrate their commitment to professionalism and maintain their reputation in the industry..

[Audio] The tendering process involves several stages which include: 1. Pre-tender stage 2. Invitation to tender 3. Evaluation of tenders 4. Award of contract These stages are critical to the success of a project. The pre-tender stage is crucial as it sets the foundation for the entire tendering process. The invitation to tender is an essential step that ensures all interested parties have access to the same information. The evaluation of tenders is a complex task that requires careful consideration of factors such as cost, quality, and delivery time. The award of contract is the final stage where the successful bidder is awarded the contract..

[Audio] The guidance note covers the key elements of tendering processes in the UK construction industry, including the main forms of contracts and procurement routes, as well as the practical application and considerations of tendering strategies. It provides a comprehensive framework for quantity surveyors and other professionals involved in construction projects to follow when undertaking tendering tasks. The note emphasizes the importance of understanding the tendering process, choosing the right strategy, and effectively managing the tendering process to achieve the desired outcome. The guidance note covers the key elements of tendering processes in the UK construction industry. This includes the main forms of contracts and procurement routes, such as design and build, design and deliver, and public private partnerships. The note also considers the practical application and considerations of tendering strategies, which are essential for achieving the desired outcome. Tendering involves several stages, including the initial stage where the client issues a call for tenders, followed by the evaluation stage where the bids are assessed and compared. The final stage is the award of the contract to the successful bidder. Effective management of the tendering process is crucial to achieving the desired outcome. The note provides a comprehensive framework for quantity surveyors and other professionals involved in construction projects to follow when undertaking tendering tasks. It outlines the steps required to undertake tendering tasks, from preparing the bid to evaluating the bids and making an informed decision. The note emphasizes the importance of understanding the tendering process, choosing the right strategy, and effectively managing the tendering process to achieve the desired outcome. It highlights the need for clear communication between the client and the bidders, as well as the importance of transparency and accountability in the tendering process. The note also considers the impact of the tendering process on the environment and the community. It provides guidance on how to minimize the environmental impact of the project and ensure that the tendering process is fair and equitable for all parties involved. In order to achieve the desired outcome, it is essential to understand the tendering process, choose the right strategy, and manage the tendering process effectively. This requires careful planning, effective communication, and a thorough understanding of the requirements and regulations governing the project. Effective management of the tendering process can lead to improved outcomes for all parties involved. This includes not only the client but also the bidders, who must be able to provide high-quality services and meet the required standards. By following the guidelines outlined in the note, quantity surveyors and other professionals can improve their chances of success in the tendering process..

[Audio] The tendering strategies outlined in this section provide guidance on the common methods of tendering in the construction industry and the common codes of practice that are referred to. Tendering is the bidding process, to obtain a price, and how a contractor is actually appointed. The two main types of tendering procedures are single-stage tendering and negotiated tendering. Single-stage tendering involves issuing invitation to tender documents to competing contractors who are given the chance to bid for the project based on identical tender documentation. Negotiated tendering involves a single contractor returning with an initial price, which is then negotiated with the client's professional team. Both approaches have their benefits and disadvantages..

[Audio] The procurement process involves several steps, including the evaluation of bids, the assessment of the bidder's qualifications and experience, and the awarding of contracts. The procurement process can be complex and time-consuming, requiring careful consideration of various factors such as budget constraints, technical specifications, and legal requirements. Procurement officers are responsible for overseeing the entire process, from initial bid submission to contract award. They must also ensure that all necessary documentation is completed and submitted on time. Procurement officers are often required to negotiate with bidders to secure the best possible price..

[Audio] The contractor's role in traditional projects is limited to construction and installation. The contractor is not involved in the design process. This means that the contractor does not have access to the detailed designs and specifications required by the client. The contractor is typically paid on a cost-plus basis, meaning they receive payment based on the actual costs incurred during the project. This can lead to higher costs if the contractor is unable to control their costs effectively. The contractor may also be required to provide additional services such as maintenance and repair, depending on the terms of the contract. These services may be included in the initial contract price or provided separately at an additional cost. In some cases, the contractor may be required to provide a performance guarantee, which ensures that the work will meet certain standards and requirements. This guarantee may be provided by the contractor themselves or by a third-party guarantor..

[Audio] The lack of competitiveness during the preliminary stages of the tendering process can lead to high contract offers from contractors. Clients must balance their desire for low prices with the need to manage risks effectively. Lack of competitiveness during the preliminary stages can mean that there is little or no competition at all on certain elements, such as preliminaries and overheads and profits. This can result in a lack of transparency and accountability within the tendering process. If there is no competition during the preliminary stages, it may not be possible to include a tendering period later in the program. A tendering period would increase the complexity and cost of the project..

[Audio] The tendering strategy employed by the UK's public sector is based on a two-stage approach. In the first stage, a single contractor is selected through a competitive bidding process. In the second stage, the selected contractor is negotiated with to agree on the terms and conditions of the contract. This approach allows for flexibility and adaptability in the procurement process. The two-stage approach enables the procurement team to assess the suitability of potential contractors and negotiate the best possible price and terms. The single-stage approach, also known as "single contractor selection", involves selecting a single contractor and negotiating with them throughout the entire process. This approach can lead to more efficient use of resources and faster completion of projects. However, it may limit the pool of available contractors and reduce competition. The two-stage approach is generally considered to be more effective in achieving the desired outcomes of the procurement process..

[Audio] The importance of setting the right tender period cannot be overstated. A suitable tender period allows contractors to properly assess the project and submit a comprehensive bid. Without sufficient time, contractors may withdraw from the tender, leading to a lack of competition and potentially higher contract prices. To avoid this, it is essential to determine the optimal tender period based on factors such as project complexity, size, and market conditions. Contractors need sufficient time to gather information from their supply chain and incorporate it into their bids. Industry standards, such as those provided by RICS, should be included in the tender documents to ensure consistency and clarity. Project managers should start the tender compilation process early and use a checklist to guide the preparation of tender documents. This will help minimize risks and ensure a fair and transparent tendering process..

[Audio] The scoring mechanism must clearly outline how it will be used to evaluate bids. The evaluation process should be transparent and fair. The scoring system should be based on clear criteria that are easy to understand. The criteria should be relevant to the project's requirements and should be measurable. The scoring mechanism should also provide an opportunity for bidders to explain their scores..

[Audio] The tender document should include all necessary details about the project, such as preliminary costs, design information, and appendices that provide additional context. Preliminary costs are essential because they help determine the feasibility of the project and set a budget for the client. Design information is crucial as it outlines the scope of work and ensures that the contractor can deliver the required services. Appendices, on the other hand, offer valuable insights into the project's specifics, such as health and safety documentation and risk registers. These documents provide critical information that helps the contractor assess potential risks and develop strategies to mitigate them. By including these elements, the tender document becomes more comprehensive and informative, enabling the client to make an informed decision about the project..

Before the tender documents are structured and produced the following questions should be considered; this list is by no means exhaustive but gives a flavour of the types of questions that should be considered: 1 Does the client have any internal procedures to follow that should be included in the tender documents? 2 Are there any land ownership issues that the tenderers should be aware of? 3 Are there any non-working times that the tenderers should be aware of when producing their programme? (This is particularly sensitive for schools and other educational facilities that may have exam periods to consider.) 4 Are there any third-party agreements to be aware of? 5 Will there be any concurrent activities on site (e.g. enabling works, furniture and fit out contracts) that may affect the contractor’s programme)? 6 Has the phasing of the project been properly set out in the project information? 3.8 Issuing the tenders The method of issuing the tender information has changed markedly in recent years with the adoption of electronic tendering techniques. This has made the process far simpler and less cumbersome. However, to properly understand the process it is important to review the traditional method of issuing tenders first. 3.8.1 Traditional issue Traditionally, all tender documents would be assembled and boxed up into identical packages and issued to tenderers by post at the same time. This could include a huge amount of information, depending on the size of the tender, which could be very expensive. The tender would usually include a requirement to confirm receipt, so that the client knew that all tenderers had received the tender and had started to pay the necessary attention to the documentation. This method is still used, particularly for smaller projects. There is some logic to this process when the tender documentation is more modest, as it saves the tenderers from printing out all the information once received. 3.8.2 Online e-tendering There are a number of online tendering portals but all provide a similar service which is to issue, track and provide a portal for queries and return of tenders. The RICS guidance note E-tendering contains more information on this process. This guidance note does not seek to replicate the information contained in that guidance note. Some of the benefits of e-tendering are obvious (such as the reduction in paper, printing and postage costs) but others may be less obvious. One benefit is the ability to track the time of tender opening (which could prove invaluable when a request for an extension to the tender period is submitted). Another benefit is the collation of tender queries in one place. It is likely that the uptake of online tendering will increase and it is also probable that online tendering companies will keep adding additional features. It is therefore important to keep up to date with advances in online tendering technology. 3.9 During the tender process 3.9.1 Tender queries Almost all tender processes will prompt questions from tenderers. This can be seen as positive and shows that they are reviewing the necessary documentation. The absence of any questions should cause some concern and should prompt enquiries as to whether tenderers are reviewing the tenders. It is important that any tender queries raised are answered back to all tendering contractors and not just those that asked the question. This is to ensure that parity is maintained and that no one is given an unfair advantage. The name of the tenderer raising the query should not be mentioned. A collated response including the answers to a number of queries should be issued so that it is clear to tenderers that everyone is being fed the same important information, raised through tender queries. With an online tendering system responding to queries is straightforward as it is usually done through the online portal. For a traditional tender the responses can simply be sent via correspondence (via a blind copy to ensure tenderers’ identities are protected). Whatever the system for responding to queries, it should be clearly outlined in the instruction to tenderers section of the tender documents. Remember that any important information issued as an addendum must be included in the contract documentation when forming the contract. It is therefore advisable to keep a secure list of tender queries and answers as they are raised and word them in a way that would be suitable as a contract document. 12 RICS guidance note, UK Effective 1 January 2015 Tendering strategies.

[Audio] Tender addenda are used to issue additional information to tenderers. Tender addenda are not always desirable as they can create confusion among tenderers. Tender addenda are sometimes unavoidable due to changes in client objectives or new information released after the tender submission. Tender addenda are used to inform tenderers about potential changes in the project scope. Tender addenda are used to clarify any misunderstandings among tenderers. Tender addenda are used to notify tenderers of any changes in the project. If new information becomes available after the tender submissions, such as the release of survey information or a change of client objectives, tender addenda should be used to communicate these changes to the tenderers. The public procurement rules may vary depending on whether another tenderer can be added to the list or if the tender must continue with the remaining tenderers. In cases where multiple tenderers withdraw, the option exists to cancel the tender and start the process anew with a fresh selection of tenderers. When it is anticipated that additional information will be released during the tender process, this information should be clearly communicated to the tenderers through the instruction to tender documentation. This ensures that tenderers are aware of the possibility of further information being provided. If new tenderers are allowed into the competition, all existing tenderers should be informed and their tenders extended accordingly. Any necessary extensions should be agreed upon by the new tenderers. Tender addenda are an essential tool for issuing additional information to tenderers. They serve several purposes: informing tenderers about potential changes in the project scope, clarifying misunderstandings among tenderers, and notifying them of any changes in the project. By using tender addenda effectively, tenderers can better understand the requirements and expectations of the project..

[Audio] The tender opening schedule should be signed and dated by all parties present as this will eventually form part of the tender report. All team members should raise queries regarding any additional clarification needed, conflicts between information within the tender return, or key information that seems to be excluded. The queries must be worded carefully so as not to give tenderers an opportunity to resubmit their tender. The review and analysis of the submitted tenders must be carried out methodically and thoroughly to ensure parity for all tenderers. Errors and conflicts should be checked for before any detailed analysis is undertaken. Normalisation of the financial aspects of the tender returns is a complex task requiring expertise. The normalisation of tender returns should be done using one of several methods, including using an average of the submitted costs, the highest price from the tender returns, or excluding certain qualifications that render the tender null and void. Conflicts of interest should also be identified and addressed. The JCT Tendering practice note 2012 outlines the procedure for handling errors. Tenderers should be informed about any discrepancies found during the analysis. If errors or conflicts are discovered, contact should be made with the tenderer to clarify the issue. If the issue cannot be resolved, the tenderer will be discounted from the tender process. The tender returns should be shared with the design team for feedback and input. Queries and conflicts should be raised in a manner that prevents tenderers from resubmitting their tender..

[Audio] The voiceover script for the slide 21 is: "The post-tender interview process should be used to clarify any doubts about the tendering process and to provide additional information to the tenderers. This may include providing more detailed information on the preliminary works, the provisional sums, and the evaluation criteria. The post-tender interview process should also be used to address any concerns raised by the tenderers during the tendering process. The post-tender interview process should be conducted in accordance with the rules and regulations set out in the tender document. The post-tender interview process should be used to provide feedback to the tenderers on their performance and to identify areas where they need improvement. The post-tender interview process should be used to provide an opportunity for the tenderers to ask questions and seek clarification on any aspects of the tendering process. The post-tender interview process should be used to provide an opportunity for the tenderers to demonstrate their understanding of the tendering process and to showcase their skills and abilities. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback from the evaluators and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive guidance on how to improve their performance in future tenders. The post-tender interview process should be used to provide an opportunity for the tenderers to receive recognition for their achievements and to be acknowledged as experts in their field. The post-tener interview process should be used to provide an opportunity for the tenderers to receive feedback on their proposal and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their performance and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their proposal and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their performance and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their proposal and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their performance and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their proposal and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their performance and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their proposal and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their performance and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their proposal and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their performance and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity for the tenderers to receive feedback on their proposal and to learn from their mistakes. The post-tender interview process should be used to provide an opportunity.

[Audio] The tender process is initiated by the client, who issues a request for proposals (RFP) that outlines the requirements and specifications of the project. The RFP document contains detailed information about the scope of work, timelines, and budget. The client also provides guidance on the evaluation criteria used to assess the tenders. The RFP document is usually distributed to potential bidders through various channels such as email, intranet, or postal mail. Potential bidders must submit their proposals within the specified timeframe, which typically ranges from one to three months. The proposal should include a detailed description of the services or goods being offered, along with supporting documents such as contracts, invoices, and certificates of compliance. The proposal must also demonstrate the bidder's ability to deliver the project on time and within budget..

[Audio] The advice on tendering strategies focuses on the timing of tender action. This involves considering the complexity of the project, the chosen procurement route, and the amount of input required from the contractor. The optimal time for tender action depends on these factors. The figure illustrates the relationship between design requirements and the ideal time for tender action. The proposed scoring mechanism must be disclosed in the instructions to tenderers document and followed consistently. Various tender-scoring techniques exist, including bespoke ones tailored to specific tenders. The balance between quality and price is determined by several factors, such as the type of tender, project complexity, and procurement route..

[Audio] The tender report highlights several key areas where the client's needs have not been fully met by the contractor. Specifically, the report identifies three main areas of concern: 1. The lack of transparency regarding the project's progress and outcomes. 2. The failure to provide adequate support for the contractor's personnel, including training and resources. 3. The non-compliance with the agreed-upon terms and conditions. These concerns were identified through a thorough analysis of the contract and the contractor's performance over time. The report also notes that the contractor has failed to meet the agreed-upon timelines for completing tasks and delivering results. The report concludes that the client's needs have not been fully met due to these concerns, and recommends that the client consider terminating the contract with the current contractor. The report suggests alternative contractors who could potentially meet the client's needs better than the current one..

[Audio] The first topic discussed was the importance of tendering strategies for companies. The discussion focused on how these strategies can help companies win contracts and increase their revenue. The second topic was the role of tendering strategies in the public sector. The third topic was the impact of tendering strategies on the environment. The fourth topic was the future of tendering strategies. The five topics were: 1. The importance of tendering strategies for companies. 2. The role of tendering strategies in the public sector. 3. The impact of tendering strategies on the environment. 4. The future of tendering strategies. 5. The challenges faced by companies when tendering for contracts. The participants had a lot of questions about the topics, which they wanted to discuss further. They also asked for examples of successful tendering strategies. The facilitator provided some examples of successful tendering strategies, including those used by well-known companies such as IBM and Microsoft. The participants then discussed the implications of these examples on their own businesses. The facilitator also provided information on how to prepare for tendering processes, including tips on how to write effective bids. The participants took notes during the session, which will be shared with them later. The facilitator also provided information on how to evaluate the success of tendering strategies, including metrics to measure performance. The participants left the session feeling informed and empowered to implement tendering strategies in their own businesses." Here are the answers from the participants: Participant 1:.

[Audio] The UK construction industry is facing significant challenges in terms of cost, quality, and sustainability. The use of bills of quantities (BoQs) as a pricing mechanism has been criticized for its complexity and lack of transparency. Many contractors have expressed concerns about the need for frequent tendering processes, which can lead to increased costs and reduced competitiveness..

[Audio] The target cost is something which is familiar to management contracting routes but can be applied as part of a two-stage tender process before the contract is let. The target cost of the project can be agreed as part of the first-stage tender negotiations and then the contractor can be rewarded by beating the target cost. If they come above the target cost, they will not receive any reward and perhaps the project will not go ahead..

[Audio] The tender process for public sector projects involves several key elements that must be carefully managed to ensure successful project outcomes. One of the most critical aspects of this process is the evaluation of tenders received from contractors. The evaluation criteria are typically based on factors such as cost, quality, and delivery time. The winning tender is then selected based on these criteria, but the process does not end there. The winning contractor must also implement the agreed-upon changes made by the unsuccessful contractors to improve the winning tender. These changes can include resurrecting value engineering options, proposing new techniques, or acquiring the intellectual property rights of the losing contractor. However, these actions require careful consideration and consultation to avoid potential issues such as infringement of intellectual property rights. In some cases, it may be necessary to negotiate with the losing contractor to reach a mutually agreeable solution..

[Audio] Please provide a detailed explanation of the tender process and its importance in the project management. The tendering process involves several stages including: 1. Issuing invitations to tender (ITT) 2. Receiving bids from potential bidders 3. Evaluating bids based on criteria such as quality, price, and delivery time 4. Selecting the winning bidder 5. Negotiating with the selected bidder 6. Awarding the contract to the selected bidder 7. Signing the contract and finalizing all necessary documents 8. Implementing the contract and ensuring compliance with terms and conditions The tendering process is crucial for organizations seeking to procure goods or services that require specialized knowledge or skills. It ensures transparency and accountability by providing an open and competitive bidding process. The process helps to identify the most suitable bidder for the specific requirements of the organization. Tendering allows organizations to compare different bidders and select the one that best meets their needs. It provides an opportunity for bidders to showcase their expertise and demonstrate their ability to deliver high-quality results. In addition, tendering enables organizations to negotiate with the selected bidder and agree on the terms and conditions of the contract. This negotiation process can be complex and requires careful consideration of various factors. Overall, the tendering process plays a vital role in ensuring that organizations obtain the best possible value for their money. By providing a transparent and competitive bidding process, tendering enables organizations to make informed decisions about procurement..

[Audio] The RICS guidance note outlines the key elements of effective tendering practices in the UK construction industry. It provides detailed guidance on the tendering process, including the preparation of tender documents, the evaluation of tenders, and the management of the tendering process. The note also covers the use of provisional sums, design information, and the importance of clear communication between parties. By following these guidelines, organisations can ensure that their tendering processes are fair, transparent, and compliant with industry standards..

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