How to select a contractor - Revision history

Designing Buildings at 07:18, 24 September 2020

2020-09-24T07:18:06Z

← Older revision		Revision as of 07:18, 24 September 2020
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	* Tender process.		* Tender process.

−	[[Category:Appointments]] [[Category:Client_procedures]] [[Category:Procurement]]	+	[[Category:DCN_Guidance]] [[Category:Appointments]] [[Category:Client_procedures]] [[Category:Procurement]]

Designing Buildings at 12:26, 7 December 2017

2017-12-07T12:26:23Z

← Older revision		Revision as of 12:26, 7 December 2017
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	* Due diligence when selecting contractors or subcontractors.		* Due diligence when selecting contractors or subcontractors.
	* How to appoint a contractor.		* How to appoint a contractor.
		+	* How to find a builder.
	* How to find a contractor.		* How to find a contractor.
	* Procurement route.		* Procurement route.

Designing Buildings at 12:06, 17 June 2017

2017-06-17T12:06:48Z

← Older revision		Revision as of 12:06, 17 June 2017
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	The tender documents describing the project and what is required from the contractor are then issued to the short-listed contractors. For more information see Tender documents.		The tender documents describing the project and what is required from the contractor are then issued to the short-listed contractors. For more information see Tender documents.

−	There may be queries from contractors, and in this case, responses should be sent to all contractors. The client may organise mid-tender interviews or site visits. This can be beneficial both to the client and to the tenderer as they ~~not only~~ allow ~~for~~ clarification of matters that might otherwise lead to an inaccurate tender being submitted, they can ~~also~~ give the client insights into potential problems or opportunities.	+	There may be queries from contractors, and in this case, responses should be sent to all contractors. The client may organise mid-tender interviews or site visits. This can be beneficial both to the client and to the tenderer as they allow clarification of matters that might otherwise lead to an inaccurate tender being submitted, and they can give the client insights into potential problems or opportunities.

	When tenders are received, they should be assessed, and perhaps further interviews carried out.		When tenders are received, they should be assessed, and perhaps further interviews carried out.

−	Selection should not be made purely on the basis of the lowest price. It is generally more effective to identify the best value tender, based on pre-defined criteria of ~~what~~ the client values. This might include consideration of past performance, relevant experience, technical ability, sustainability, health and safety, innovation, resource availability, management skills and systems, proposed methodology and so on.	+	Selection should not be made purely on the basis of the lowest price. It is generally more effective to identify the best value tender, based on pre-defined selection criteria that relate to the aspects of the contractor performance the client most values. This might include consideration of past performance, relevant experience, technical ability, sustainability, health and safety record, innovation, resource availability, management skills and systems, proposed methodology and so on.

−	For more information see: ~~Selection criteria,~~ Tender evaluation and Due diligence when selecting contractors or subcontractors.	+	For more information see: Tender evaluation and Due diligence when selecting contractors or subcontractors.

−	The client can then enter into tender negotiations with the preferred contractor. Some of the elements of a contract that may require negotiation include:	+	The client can then enter into tender negotiations with the preferred contractor. Some of the elements of a contract that may require negotiation could include:

	* The contract sum.		* The contract sum.
	* The start and finish dates.		* The start and finish dates.
	* Flexibility to modify the building programme.		* Flexibility to modify the building programme.
−	* ~~Ability~~ to claim extensions of time or damages.	+	* The ability to claim extensions of time or damages.
	* The time frame for payments.		* The time frame for payments.
	* Insurance requirements, warranties and bonds.		* Insurance requirements, warranties and bonds.

Designing Buildings at 12:01, 17 June 2017

2017-06-17T12:01:12Z

← Older revision		Revision as of 12:01, 17 June 2017
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	= Introduction =		= Introduction =

−	~~A contractor is an~~ organisations appointed by ~~a client~~ to carry out construction works. This role is vital to the success of a project, and so great care should be taken to ensure an appropriate contractor is selected. This may involve seeking advice from consultants if the client is inexperienced.	+	Contractors are organisations appointed by clients (or employers) to carry out construction works. This role is vital to the success of a project, and so great care should be taken to ensure an appropriate contractor is selected. This may involve seeking advice from consultants if the client is inexperienced.

−	In the construction industry, the process of selecting a contractor is generally referred to as ‘tendering’ and involves preparing tender documents ~~describing~~ the project, and then inviting tender submissions from prospective contractors from which as selection can be made.	+	In the construction industry, the process of selecting a contractor is generally referred to as ‘tendering’ and involves preparing tender documents that describe the project, and then inviting tender submissions from prospective contractors from which as selection can be made.

−	A tender is a submission ~~made by~~ a contractor making an offer to carry out the works.	+	A tender is a submission from a contractor making an offer to carry out the works.

	This article describes in general the process commonly used to select a preferred contractor from a list of potential contractors. Other processes may be used on certain types of projects, such as Private Finance Initiative (PFI) projects.		This article describes in general the process commonly used to select a preferred contractor from a list of potential contractors. Other processes may be used on certain types of projects, such as Private Finance Initiative (PFI) projects.
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	= Pre-qualification =		= Pre-qualification =

−	If a contract is advertised, there may be a pre-qualification process to allow ~~the~~ long list of contractors that have submitted an expression of interest to be reduced to a reasonable number that can be invited to tender. Typically three or four. More than this would waste the contractors time and reduce the likelihood of receiving sensible tenders as the likelihood of a contractor being selected is too low. Fewer than this and there may not be sufficient competition, or enough information to be able to sensibly compare offers.	+	If a contract is advertised, there may be a pre-qualification process to allow a long list of contractors that have submitted an expression of interest to be reduced to a reasonable number that can be invited to tender. Typically three or four. More than this would waste the contractors time and reduce the likelihood of receiving sensible tenders as the likelihood of a contractor being selected would be too low. Fewer than this and there may not be sufficient competition, or enough information to be able to sensibly compare offers.

−	~~Prequalification~~ involves seeking information about the contractor’s experience, capacity and financial standing. The answers to these questions enable the client to produce a short list of suppliers that are likely to be most appropriate for their particular project. Short-listed suppliers may then be invited to tender for the contract.	+	Pre-qualification involves seeking information about the contractor’s experience, capacity and financial standing. The answers to these questions enable the client to produce a short list of suppliers that are likely to be most appropriate for their particular project. Short-listed suppliers may then be invited to tender for the contract. For more information see: Pre-qualification questionnaire.

	Financial checks should be carried out on potential tenderers. Ideally, the value of the contract should be no more than 20% of their annual turnover.		Financial checks should be carried out on potential tenderers. Ideally, the value of the contract should be no more than 20% of their annual turnover.
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	The client may wish to carry out pre-tender interviews before short-listed contractors are invited to tender. This is an opportunity to:		The client may wish to carry out pre-tender interviews before short-listed contractors are invited to tender. This is an opportunity to:

−	* Assess ~~the tenderers~~ understanding of the commission.	+	* Assess their understanding of the commission.
−	* Assess ~~the tenderers~~ likely approach to the project.	+	* Assess their likely approach to the project.
−	* Assess ~~the tenderers~~ current workload.	+	* Assess their current workload.
−	* Assess ~~the tenderers~~ enthusiasm.	+	* Assess their enthusiasm.
	* Clarify ambiguities on either side.		* Clarify ambiguities on either side.
	* Verify that the proposed timescale for the tender process is achievable.		* Verify that the proposed timescale for the tender process is achievable.
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	If the pre-tender interviews reveal that one or more prospective candidates are unsuitable, the initial short list may be reduced and the remaining candidates invited to tender.		If the pre-tender interviews reveal that one or more prospective candidates are unsuitable, the initial short list may be reduced and the remaining candidates invited to tender.

−	For more information see: Pre-~~qualification~~.	+	For more information see: Pre-tender interview.

	= Tender process =		= Tender process =

−	The tender documents are then issued to the short-listed contractors.	+	The tender documents describing the project and what is required from the contractor are then issued to the short-listed contractors. For more information see Tender documents.

	There may be queries from contractors, and in this case, responses should be sent to all contractors. The client may organise mid-tender interviews or site visits. This can be beneficial both to the client and to the tenderer as they not only allow for clarification of matters that might otherwise lead to an inaccurate tender being submitted, they can also give the client insights into potential problems or opportunities.		There may be queries from contractors, and in this case, responses should be sent to all contractors. The client may organise mid-tender interviews or site visits. This can be beneficial both to the client and to the tenderer as they not only allow for clarification of matters that might otherwise lead to an inaccurate tender being submitted, they can also give the client insights into potential problems or opportunities.

Designing Buildings: Created page with "= Introduction = A contractor is an organisations appointed by a client to carry out construction works. This role is vital to the success of a project, and so great care should..."

2017-06-17T11:41:07Z

Created page with "= Introduction = A contractor is an organisations appointed by a client to carry out construction works. This role is vital to the success of a project, and so great care should..."

New page

= Introduction =

A contractor is an organisations appointed by a client to carry out construction works. This role is vital to the success of a project, and so great care should be taken to ensure an appropriate contractor is selected. This may involve seeking advice from consultants if the client is inexperienced.

In the construction industry, the process of selecting a contractor is generally referred to as ‘tendering’ and involves preparing tender documents describing the project, and then inviting tender submissions from prospective contractors from which as selection can be made.

A tender is a submission made by a contractor making an offer to carry out the works.

This article describes in general the process commonly used to select a preferred contractor from a list of potential contractors. Other processes may be used on certain types of projects, such as Private Finance Initiative (PFI) projects.

* For information about how to put together a list of potential contractors see: How to find a contractor.
* For information about appointing a contractor see: How to appoint a contractor.

= Pre-qualification =

If a contract is advertised, there may be a pre-qualification process to allow the long list of contractors that have submitted an expression of interest to be reduced to a reasonable number that can be invited to tender. Typically three or four. More than this would waste the contractors time and reduce the likelihood of receiving sensible tenders as the likelihood of a contractor being selected is too low. Fewer than this and there may not be sufficient competition, or enough information to be able to sensibly compare offers.

Prequalification involves seeking information about the contractor’s experience, capacity and financial standing. The answers to these questions enable the client to produce a short list of suppliers that are likely to be most appropriate for their particular project. Short-listed suppliers may then be invited to tender for the contract.

Financial checks should be carried out on potential tenderers. Ideally, the value of the contract should be no more than 20% of their annual turnover.

= Pre-tender interview =

The client may wish to carry out pre-tender interviews before short-listed contractors are invited to tender. This is an opportunity to:

* Assess the tenderers understanding of the commission.
* Assess the tenderers likely approach to the project.
* Assess the tenderers current workload.
* Assess the tenderers enthusiasm.
* Clarify ambiguities on either side.
* Verify that the proposed timescale for the tender process is achievable.
* Verify that the proposed nature of the tender process will obtain the best results.

If the pre-tender interviews reveal that one or more prospective candidates are unsuitable, the initial short list may be reduced and the remaining candidates invited to tender.

For more information see: Pre-qualification.

= Tender process =

The tender documents are then issued to the short-listed contractors.

There may be queries from contractors, and in this case, responses should be sent to all contractors. The client may organise mid-tender interviews or site visits. This can be beneficial both to the client and to the tenderer as they not only allow for clarification of matters that might otherwise lead to an inaccurate tender being submitted, they can also give the client insights into potential problems or opportunities.

When tenders are received, they should be assessed, and perhaps further interviews carried out.

Selection should not be made purely on the basis of the lowest price. It is generally more effective to identify the best value tender, based on pre-defined criteria of what the client values. This might include consideration of past performance, relevant experience, technical ability, sustainability, health and safety, innovation, resource availability, management skills and systems, proposed methodology and so on.

For more information see: Selection criteria, Tender evaluation and Due diligence when selecting contractors or subcontractors.

The client can then enter into tender negotiations with the preferred contractor. Some of the elements of a contract that may require negotiation include:

* The contract sum.
* The start and finish dates.
* Flexibility to modify the building programme.
* Ability to claim extensions of time or damages.
* The time frame for payments.
* Insurance requirements, warranties and bonds.
* The scope of work and duties.
* Valuation of payments and variations.
* Testing and inspections.
* The use of subcontractors or subconsultants.
* Novation of consultants or consultant switch.

A reserve tenderer may be retained in the event that negotiations with the preferred tenderer are unsuccessful.

For more information see: Contract negotiation.

The next stage is the process of appointing the contractor. To find out more see: How to appoint a contractor.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Construction contract.
* Contract documentation.
* Contract negotiation.
* Due diligence when selecting contractors or subcontractors.
* How to appoint a contractor.
* How to find a contractor.
* Procurement route.
* Project plans for building design and construction.
* Selection criteria.
* Tender documents.
* Tender evaluation.
* Tender process.

[[Category:Appointments]] [[Category:Client_procedures]] [[Category:Procurement]]