Two Stage Selective Tendering

West Suffolk College HNC Year 229 October 2002

Discussion Workshop

Paul Weston

Director

Riverside Swimming Centre, Norwich

Riverside Swimming Centre, Norwich

Bexhill College

Halstead Community Leisure Centre

Victory Swim & Fitness Centre, North Walsham

Environment Agency Offices

Recreational Centre RAF Wattisham

What have these schemes in common?

Two Stage tendering/procurement route

Factors in selecting a procurement route

• Risk• Programme certainty • Pricing level• Price certainty • Value for Money• Procurement guidelines/audit trail• EU procedures

What is wrong with single stage tendering?

• Dissatisfied clients ( refer Latham & Egan)• Adversarial stances by construction team• Project objectives lost• Lack of commitment by contractor team

until appointed• Appointment of sub-contractors too late• “Dutch auction” affects project quality• Division of design and construction teams

What are we trying to achieve?

• Customer satisfaction: deliver the project on time, budget and to the right quality

• Profitability for our companies• Referral for another project

The Two Stage Process

• Stage 1: selecting a contractor on a competitive basis to be part of the team at an early stage where he can make an input

• Stage 2: Negotiations to reach a fixed price and programme

Case Study

Riverside Swimming Centre, Norwich

Why did we choose Two Stage?

• We had to be sure we had a fixed price for Sport England Lottery bid

• We had to make sure we could deliver the programme

• We had to start on site quickly• We needed sub-contractor input

early to value engineer options

Stage 1• Scheme design/outline specification• Approximate quantities• Preliminaries• Contractor to price labour rates,

profit and overheads and preliminaries

• Assessment of quality issues: resources, team, method statement

Stage 2• Selection of preferred contractor• Price above budget• Planning consent achieved• Design at RIBA stage E• Detailed design development by all and

team problem solving• Design re-measured in stages and priced

in packages• Delivery of fixed price tender

Riverside Swimming Centre, Norwich

Discussion