The tender process will be dictated by the choice of the procurement route. This will include short listing contractors including compliance with the European Union directives, issuing tender documentation, receiving tenders, tender interviews and selection. As an alternative to this competitive tendering process, tenders may be negotiated where this proves to be a better option for obtaining value for money.
It is advisable to bring a contractor into the design team as early as is practical. The type of contract may dictate when this is possible, but there are a number of benefits to be gained, such as efficient material choices, early buildability advice, negating abortive design effort and specialist cost advise. The LSC endorses such early involvement.
Tender Activities and Contract Execution
There are numerous activities that lead to a contract signature and commencement of construction and all should be advised by the Project Manager and detailed on the master programme. The following are examples of some headline activities.
The Project Manager should ensure that tender returns and openings comply with a providers standing orders.
The contract amount should reflect a 95% cost certainty in line with LSC requirement for a detailed capital application approval.
LSC approval is sought prior to signing a contract. Confirmation is required that loan arrangements are in place, associated land acquisition and disposal contracts have been executed, formal Board of Governors minutes noting support are provided together with a tender report confirming value for money has been attained.
Actions are initiated to provide cost savings should budget requirements dictate it.
The programme should ensure that the client understands the terms of the contract.
Arrangements are in place for formal signature and exchange of contracts. A letter of intent may be utilised to expedite a start on site if appropriate.
All CDM regulations are being complied with.
Consultant novations have been instigated.