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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
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