RICS guidance note
                       RICS Professional Guidance, UK
                       Tendering strategies
                        
                       1st edition
                                   rics.org/guidance
                                                           rics.org
                                         Tendering strategies
                                         RICS guidance note, UK
                                         1st edition
                                         Acknowledgments
                                         RICS would like to thank the following for their
                                         contribution to this guidance note:
                                         Technical author:
                                         James Garner FRICS (Gleeds Cost Management)
                                         Working group:
                                         Chair: Andrew Smith FRICS (Laing O’Rourke)
                                         John G Campbell FRICS (BAM Construction Ltd)
                                         David Cohen FRICS (Amicus Development Solutions)
                                         Alan Cripps (RICS, Built Environment Professional
                                         Group)
                                         Stuart Earl FRICS (Gleeds Cost Management)
                                         Roland Finch FRICS (NBS)
                                         Christopher Green FRICS (Capita Symonds Ltd)
                                         William Hall MRICS (Lend Lease)
                                         Roy Morledge FRICS (Nottingham Trent University)
                                         Michelle Murray MRICS (Turner & Townsend plc)
                                         Michael T O’Connor FRICS (Carillion Construction Ltd)
                                         Matthew Saunders (RICS, Built Environment
                                         Professional Group)
                                         Kevin Whitehead FRICS (McBains Cooper Consulting
                                         Ltd)
                                         Published by the Royal Institution of Chartered Surveyors (RICS),
                                         Parliament Square, London, SW1P 3AD, UK
                                         www.rics.org
                                         No responsibility for loss or damage caused to any person acting or
                                         refraining from action as a result of the material included in this
                                         publication can be accepted by the authors or RICS.
                                         Produced by the Quantity Surveying and Construction Professional Group
                                         of the Royal Institution of Chartered Surveyors.
                                         ISBN 978 1 78321 059 6
                                         ©Royal Institution of Chartered Surveyors (RICS) July 2014. Copyright in
                                         all or part of this publication rests with RICS. No part of this work may be
                                         reproduced or used in any form or by any means including graphic,
                                         electronic, or mechanical, including photocopying, recording, taping or
                                         web distribution, without the written permission of RICS or in line with the
                                         rules of an existing licence.
                                         Typeset in Great Britain by Columns Design XML Ltd, Reading, Berks
           Tendering strategies
                                                                      Contents
                                                                       Acknowledgments                                             i
                                                                       RICSprofessionalguidance                                    1
                                                                       1      Introduction                                         3
                                                                              1.1   Minimumlevel of service                        3
                                                                       2      Generalprinciples(Level1–Knowing)                    4
                                                                              2.1   The difference between tendering and           4
                                                                                    procurement
                                                                              2.2   The main types of tendering procedures         4
                                                                              2.3   Early contractor involvement (ECI)             5
                                                                              2.4   JCT practice note                              5
                                                                              2.5   BS11000-1Collaborative business                5
                                                                                    relationships
                                                                              2.6   The RICS Construction Policy                   5
                                                                              2.7   Reasons for robust tendering strategies        5
                                                                       3      Practicalapplication(Level2–Doing)                   6
                                                                              3.1   Producing the pre-tender estimate (PTE)        6
                                                                              3.2   Choosing the most suitable tender strategy     6
                                                                              3.3   RIBA Plan of Works/APM work plan               6
                                                                              3.4   Setting up the tender                          8
                                                                              3.5   Assessing a suitable tender period             9
                                                                              3.6   Producing/compiling the tender documents       9
                                                                              3.7   Considering how project-specific factors/      11
                                                                                    abnormals influence a tender
                                                                              3.8   Issuing the tenders                            12
                                                                              3.9   During the tender process                      12
                                                                              3.10 Receiving tenders                               13
                                                                              3.11 Post-tender interviews                          15
                                                                              3.12 Checklist of further items to review            15
                                                                              3.13 Post tender                                     16
                                                                              3.14 Tender report and notifying tenderers           16
                                                                       4      Practicalconsiderations(Level3–Advising)             17
                                                                              4.1   Tender-scoring techniques                      17
                                                                              4.2   Advice on tendering strategies (timing of      17
                                                                                    tender action)
                                                                              4.3   Managing and reporting: tender and             18
                                                                                    negotiation processes and outcomes
                                                                              4.4   Further advice on tender reports               18
                                                                              4.5   Addressing project abnormals                   18
                                                                              4.6   Design-checking periods between tender         18
                                                                                    returns and signing the contract
                                                                              4.7   The route from tender to contract              19
                                                                              4.8   Serial tendering                               19
                                                                              4.9   Term contracts                                 19
                                                                              4.10 Frameworks/approved-supplier lists              19
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                                                                                                                  rics.org
                                                                                           4.11 Are bills of quantities a barrier to                20
                                                                                                  collaboration?
                                                                                           4.12 Does two-stage tendering promote                    20
                                                                                                  collaboration?
                                                                                           4.13 The second-stage process                            20
                                                                                           4.14 Agreeing contract conditions                        21
                                                                                           4.15 WhatimpactdoesBIMhaveontendering?                   21
                                                                                           4.16 Alternative tender submissions/alternative          21
                                                                                                  scope options/value engineering and
                                                                                                  reduced programme tenders
                                                                                           4.17 Sharing value engineering proposals                 21
                                                                                           4.18 PFI/PPP                                             22
                                                                                    Appendix                                                        23
                                                                                           A      Example tender opening form                       23
                                                                                                                          RICS guidance note, UK