1. What is procurement?
Procurement is the strategy and process used to acquire construction works, goods, and services, including selecting contracting methods and tendering approaches that best achieve project objectives.
2. What factors influence procurement selection?
Client objectives, programme, cost certainty, risk allocation, design responsibility, quality requirements, market conditions, contractor capability, and complexity.
3. Difference between procurement and tendering?
Procurement determines the overall strategy, while tendering is the process of obtaining competitive offers within that strategy.
4. What are the main procurement routes?
Traditional, Design & Build, Management Contracting, Construction Management, Frameworks, PPP/PFI, Alliancing, Partnering.
5. What are the benefits of the traditional route?
High design control, clear roles, competitive tendering on complete designs, and good cost certainty at contract award.
6. Risks of the traditional route?
Longer programme, potential for design-construction disconnect, higher likelihood of variations.
7. Benefits of Design & Build?
Single point of responsibility, faster delivery, reduced claims, contractor innovation potential.
8. Risks of Design & Build?
Reduced client design control, risk of lower quality, employer changes can be costly.
9. When is construction management appropriate?
For fast-track projects, complex designs, experienced clients, and where early trade contractor input is needed.
10. What is two-stage tendering?
A contractor is appointed early (Stage 1) based on prelims/overheads, then works with the client to develop the price (Stage 2) once design evolves.
11. Why use two-stage tendering?
Early contractor involvement, buildability input, faster start to site works, but cost certainty only later.
12. What is single-stage tendering?
Contractors submit full fixed-price tenders on a completed design package.
13. Advantages of single-stage tendering?
Cost certainty, competitive pricing, clear scope.
14. Disadvantages of single-stage tendering?
Longer pre-construction period, limited contractor input, risk of claims if information is incomplete.
15. What is selective tendering?
Tendering from a pre-qualified shortlist of competent contractors.
16. Advantages of selective tendering?
Time efficient, higher quality tenders, reduced risk of contractor failure.
17. What is open tendering?
Tender opportunity is advertised publicly with no restriction on bidders.
18. Disadvantages of open tendering?
Large number of submissions, lower quality bids, risk of unqualified contractors.
19. What is negotiated tendering?
Negotiating directly with one contractor, often used for frameworks or specialist works.
20. When is negotiated tendering appropriate?
Repeat works, specialist contractors, or when continuity is needed.
21. What is a framework agreement?
A long-term agreement with pre-approved suppliers to deliver works under repeat call-off contracts.
22. Benefits of frameworks?
Reduced procurement time, proven performance, stable pricing.
23. What is partnering?
A collaborative approach emphasising shared objectives, transparency, and reduced claims culture.
24. What is ECI (Early Contractor Involvement)?
Integrating contractor expertise in early design stages to improve cost, buildability, and programme.
25. What is prequalification (PQQ)?
Screening bidders based on financial, technical, and safety criteria before issuing tender documents.
26. What information is typically requested at PQQ stage?
Financial stability, past experience, insurance, H&S records, resources, references.
27. What forms part of tender documentation?
Instructions to tenderers, form of tender, prelims, drawings, specifications, pricing documents, contract conditions.
28. What is the tender addenda process?
Issuing clarifications or amendments during tender period to ensure bidders use consistent information.
29. What is a tender query (TQ)?
Questions raised by bidders for clarification; answers are issued to all tenderers to maintain fairness.
30. How do you ensure tender compliance?
Check submissions against instructions, completeness, pricing method, exclusions, and programme.
31. What is tender analysis?
Reviewing submissions for accuracy, compliance, abnormal pricing, qualifications, and comparison with estimate.
32. What are abnormally low tenders?
Tender prices that are significantly below others or below cost benchmark, suggesting risk of poor performance.
33. What are abnormally high tenders?
Tenders much higher than expected, indicating poor information, risk pricing, or hot market conditions.
34. What is value engineering during tendering?
Identifying design or specification changes to improve value without compromising functionality.
35. What is post-tender clarification?
Seeking further information from bidders to clarify ambiguities prior to contract award.
36. What is post-tender negotiation?
Negotiating price adjustments after tender return while remaining compliant with procurement rules.
37. How do you manage tender confidentiality?
Restrict access, secure storage, anonymised evaluation, and formal opening procedures.
38. What is MEAT (Most Economically Advantageous Tender)?
Evaluation based on quality and price criteria rather than lowest price alone.
39. What is lowest-price tender evaluation?
Award based purely on the lowest compliant tender.
40. Risks of lowest-price selection?
Quality issues, increased variations, contractor financial risk.
41. What is a tender report?
A document summarising tender process, analysis, risks, and making a recommendation for award.
42. What does a tender report include?
Process summary, compliance review, price comparison, risk analysis, recommendations.
43. What is a Letter of Intent (LOI)?
A temporary instruction allowing a contractor to start limited works before the contract is finalised.
44. Risks of using an LOI?
Unclear scope, cost risk, legal uncertainty if poorly drafted.
45. What is a conditional contract award?
Contract is awarded subject to certain conditions such as insurance approvals or financial checks.
46. What is a bond?
A financial guarantee (performance bond, bid bond) protecting the client against contractor failure.
47. What is a parent company guarantee (PCG)?
Assurance from the contractor’s parent company covering performance obligations.
48. What is a collateral warranty?
A direct contractual duty to a third party, such as a funder or tenant.
49. What is procurement risk allocation?
Determining which party—client or contractor—takes on specific project risks.
50. What procurement issues must be considered early?
Market capacity, contract form, risk strategy, programme, construction logistics, design completeness.
51. What is soft market testing?
Informal engagement with contractors/suppliers before tendering to understand market interest and capability.
52. What is reverse auction tendering?
Online system where bidders reduce their prices in real time; rarely used in construction.
53. What is e-tendering?
Digital tender submission systems improving efficiency, compliance, and audit trail.
54. What regulations govern public procurement?
Public contracts must comply with relevant national procurement regulations (e.g., PCR 2015 in the UK).
55. What is the standstill period (public sector)?
Mandatory period allowing bidders to challenge award decisions before contract execution.
56. What is a tender exclusion?
A bidder may be excluded for failing to meet mandatory criteria (e.g., financial insolvency, safety failures).
57. What is supply-chain procurement?
Contractor-led selection of subcontractors, typically under D&B or construction management.
58. What is whole-life procurement?
Considering capital cost, operational cost, maintenance, and lifecycle performance.
59. What KPIs may be used in procurement?
Cost predictability, programme performance, safety metrics, quality benchmarks, social value outcomes.
60. What are your personal responsibilities in procurement and tendering?
Demonstrating competence in tender management, advising clients, preparing documents, analysing bids, ensuring compliance, and supporting contract award decisions.
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