Explain the terms procurement and tendering in quantity surveying and provide three reasons why nomination tendering may be used over competitive tendering.

Here are the answers to your questions:

QUESTION 1

a) Explain the following terms as used in quantity surveying practice:

• i. Procurement: This refers to the overall process of acquiring all the necessary goods, works, and services required for a construction project from external sources. It involves selecting the most appropriate method for engaging contractors, suppliers, and consultants.
• ii. Tendering: This is a formal process where potential contractors are invited to submit bids (tenders) to carry out a construction project. These bids are based on detailed specifications and drawings provided by the client, allowing for competitive evaluation and selection of a contractor.

b) Provide any three (3) reasons why nomination tendering may be used ahead of competitive tendering.

Nomination tendering (or negotiated tendering) involves selecting a contractor directly or from a very short list, often based on specific criteria. It may be preferred over competitive tendering for the following reasons:

1. Specialized Expertise: When a project requires highly specialized skills, unique technology, or specific experience that only a few contractors possess, nomination ensures the most qualified party is engaged.
2. Urgency and Time Constraints: For projects with extremely tight deadlines, the lengthy process of competitive tendering can be bypassed, allowing construction to start much faster.
3. Previous Successful Relationship: If a client has a proven track record with a particular contractor and trusts their reliability, quality of work, and ability to deliver, they may nominate them for a new project.
4. Confidentiality: For sensitive projects where maintaining confidentiality is crucial, limiting the number of parties involved through nomination can be advantageous.

QUESTION 2

Which procurement method would you use in each of the following situations;

• a) Project duration is critical to the success of a project.
  • Negotiated Tendering or Construction Management (due to fast-tracking potential).
• b) A limited client's budget.
  • Traditional (Design-Bid-Build) with Competitive Tendering or Design and Build (for cost certainty).
• c) An emergency project such as bridge construction along major highways.
  • Negotiated Tendering or Direct Appointment.
• d) High quality of building.
  • Design and Build (with clear performance specifications) or Management Contracting / Construction Management (allowing for specialist input).
• e) Certain about the cost of construction before commencement.
  • Design and Build (fixed price contract) or Traditional (Design-Bid-Build) with a Lump-Sum Contract.

QUESTION 3

Identify any three (3) similarities and any three (3) differences between "management contracting" and "construction management".

Similarities:

1. Early Contractor Involvement: Both methods allow for the involvement of the management entity (Management Contractor or Construction Manager) early in the design phase, providing valuable buildability advice.
2. Separate Trade Contracts: Both approaches involve breaking the project into numerous work packages, with separate contracts for each trade or specialist contractor.
3. Fast-tracking Potential: Both methods facilitate fast-tracking, meaning construction can commence on early packages before the entire design is fully complete, potentially reducing overall project duration.

Differences:

1. Contractual Relationship:
   • Management Contracting: The Management Contractor enters into direct contracts with the individual trade contractors.
   • Construction Management: The Client enters into direct contracts with the individual trade contractors.
2. Risk Allocation:
   • Management Contracting: The Management Contractor carries some contractual risk for the performance, coordination, and programming of the trade contractors.
   • Construction Management: The Client retains the direct contractual risk for the performance and coordination of the trade contractors.
3. Role and Liability:
   • Management Contracting: The Management Contractor acts as a principal, taking responsibility for the overall execution of the works.
   • Construction Management: The Construction Manager acts as an agent for the client, providing advice, coordination, and administration without taking direct responsibility for the works themselves.