In order to run a project to client expectations, procuring suitable subcontractors is one of the most important of your tasks. Your choice of subcontractor must ensure:
- Supply and construction is correct in quantity and quality
- Works are completed on time and within budget
- Compliance with occupational health and safety standards
When considering procurement of subcontractors, it will be important to draft a tender process plan which allows for monitoring of performance, value for money, and risk assessment. The tender process itself must comply with the state Code of Tendering for the construction industry (1996).
There are 3 major types of tendering:
Open tenders are publicly advertised, though there are no guarantees of how many (or how few) tenders will be received. Each must be reviewed before a decision is made.
Multistage tenders will require tenderers to demonstrate the skills required. This process begins with Expressions of Interest (EOIs), allowing you to reduce the number of possible tenderers to whom you send a Request for Tender (RFT).
RFT documentation is very strict in scope, including purpose and nature of procurement, terms and conditions, and may also require job specifications, plans and drawings, as well as copies of all relevant documents. You will need to assign a named person to deal with queries from potential tenderers, as well as supplying additional information and paperwork. The selection criteria will also need to be properly documented.
Finally, invited tendering involves approaching known subcontractors for specific work. You are likely to have worked with invited subcontractors previously or be inviting for emergency or small scale assignments.
The tender selection criteria will ensure that:
- Tendering methods are complied with and tenders match contract conditions, and
- the best tender in terms of quality, risk assessment, and relevant skills and experience is selected, with
- an assessment of value for money
If the tendering process does not identify a suitable subcontractor, you may negotiate an acceptable contract with the tenderers.
With regard to risk management, tenders may be further identified for suitability where subcontractors meet with site management concerns such as:
- Environment and pollution
- Quality of work
- Schedules and programs
- Health and safety
This Blueprint module covers all of the above areas, and in addition gives detailed guidance on requirements of confidentiality, client commitments, the negotiating process, and how to identify and communicate selection criteria to tenderers. When the Tendering and Procurement Module has been completed, you will have achieved 2 CPD points and be fully conversant with current practice and tendering statutes.
To find out more, contact Blueprint CPD now.