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RICS Professional Guidance, UK Tendering strategies

rics guidance Professional guidance , UKTendering strategies 1st editionTendering strategiesRICS guidance note, UK1st editionAcknowledgmentsRICS would like to thank the following for theircontribution 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 ProfessionalGroup)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 EnvironmentProfessional Group)Kevin Whitehead FRICS (McBains Cooper ConsultingLtd)Published by the Royal Institution of Chartered Surveyors ( rics )

the overarching principles with which this guidance note complies. Members of RICS are uniquely placed in the market by being trained, qualified and regulated by working to international standards and complying with this guidance. RICS guidance notes This is a guidance note. Where recommendations are made for specific professional tasks, these are

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Transcription of RICS Professional Guidance, UK Tendering strategies

1 rics guidance Professional guidance , UKTendering strategies 1st editionTendering strategiesRICS guidance note, UK1st editionAcknowledgmentsRICS would like to thank the following for theircontribution 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 ProfessionalGroup)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 EnvironmentProfessional Group)Kevin Whitehead FRICS (McBains Cooper ConsultingLtd)Published by the Royal Institution of Chartered Surveyors ( rics )

2 ,Parliament Square, London, SW1P 3AD, responsibility for loss or damage caused to any person acting orrefraining from action as a result of the material included in thispublication can be accepted by the authors or by the Quantity Surveying and Construction Professional Groupof the Royal Institution of Chartered 978 1 78321 059 6 Royal Institution of Chartered Surveyors ( rics ) July 2014. Copyright inall or part of this publication rests with rics . No part of this work may bereproduced or used in any form or by any means including graphic,electronic, or mechanical, including photocopying, recording, taping orweb distribution, without the written permission of rics or in line with therules of an existing in Great Britain by Columns Design XML Ltd, Reading, Professional guidance11 Minimum level of service32 General principles (Level 1 Knowing) The difference between Tendering The main types of Tendering Early contractor involvement (ECI)

3 JCT practice BS 11000-1 Collaborative The rics Construction Reasons for robust Tendering strategies53 Practical application (Level 2 Doing) Producing the pre-tender estimate (PTE) Choosing the most suitable tender strategy RIBA Plan of Works/APM work Setting up the Assessing a suitable tender Producing/compiling the tender documents Considering how project-specific factors/abnormals influence a Issuing the During the tender Receiving Post-tender Checklist of further items to Post Tender report and notifying tenderers164 Practical considerations (Level 3 Advising) Tender-scoring Advice on Tendering strategies (timing oftender action) Managing and reporting: tender andnegotiation processes and Further advice on tender Addressing project Design-checking periods between tenderreturns and signing the The route from tender to Serial Term Frameworks/approved-supplier lists19 Tendering strategiesiiRICS guidance note, Are bills of quantities a barrier tocollaboration?

4 Does two-stage Tendering promotecollaboration? The second-stage Agreeing contract What impact does BIM have on Tendering ? Alternative tender submissions/alternativescope options/value engineering andreduced programme Sharing value engineering PFI/PPP22 Appendix23 AExample tender opening form23 rics guidance note, guidance note, UKRICS Professional guidanceInternational standardsRICS is at the forefront of developing internationalstandards, working in coalitions with organisationsaround the globe, acting in the public interest to raisestandards and increase transparency within Property Measurement Standards (IPMS - ), International Construction MeasurementStandards (ICMS), International Ethics Standards (IES)

5 And others will be published and will be mandatory forRICS members. This guidance note links directly to andunderpins these standards and rics members areadvised to make themselves aware of the internationalstandards (see ) andthe overarching principles with which this guidancenote complies. Members of rics are uniquely placedin the market by being trained, qualified and regulatedby working to international standards and complyingwith this guidance notesThis is a guidance note. Where recommendations aremade for specific Professional tasks, these areintended to represent best practice , which in the opinion of rics meet ahigh standard of Professional members are not required to follow therecommendations contained in the note, they shouldtake into account the following an allegation of Professional negligence is madeagainst a surveyor, a court or tribunal may takeaccount of the contents of any relevant guidance notespublished by rics in deciding whether or not themember had acted with reasonable the opinion of rics .

6 A member conforming to thepractices recommended in this note should have atleast a partial defence to an allegation of negligence ifthey have followed those practices. However, membershave the responsibility of deciding when it isinappropriate to follow the is for each member to decide on the appropriateprocedure to follow in any Professional task. However,where members do not comply with the practicerecommended in this note, they should do so only for agood reason. In the event of a legal dispute, a court ortribunal may require them to explain why they decidednot to adopt the recommended practice. Also, ifmembers have not followed this guidance , and theiractions are questioned in an rics disciplinary case,they will be asked to explain the actions they did takeand this may be taken into account by the addition, guidance notes are relevant to professionalcompetence in that each member should be up to dateand should have knowledge of guidance notes within areasonable time of their coming into guidance note is believed to reflect case law andlegislation applicable at its date of publication.

7 It is themember s responsibility to establish if any changes incase law or legislation after the publication date havean impact on the guidance or information in status definedRICS produces a range of Professional guidance andstandards products. These have been defined in thetable below. This document is a guidance 1 January 2015 rics guidance note, of documentDefinitionStatusStandardInternat ional StandardAn international high level principle based standarddeveloped in collaboration with other relevant bodiesMandatoryPractice StatementRICS practice statementDocument that provides members with mandatoryrequirements under Rule 4 of the Rules of Conduct formembersMandatoryGuidanceRICS Code of PracticeDocument approved by rics .

8 And endorsed by anotherprofessional body / stakeholder that provides users withrecommendations for accepted good practice asfollowed by conscientious practitionersMandatory or recommendedgood practice (will beconfirmed in the documentitself) rics guidance Note (GN)Document that provides users with recommendationsfor accepted good practice as followed by competentand conscientious practitionersRecommended good practiceRICS Information Paper (IP)Practice based information that provides users with thelatest information and/or researchInformation and/or explanatorycommentary2 rics guidance note, UKEffective 1 January 2015 Tendering strategies1 IntroductionThis guidance note summarises what Tendering is andhow Tendering processes are used to establish acontract price.

9 It also reviews different types oftendering and negotiation strategies and theiradvantages and disadvantages. It seeks to enhancethe knowledge and understanding of the Tendering andnegotiation processes involved in guidance note also looks at the practical issues ofproducing an invitation to tender and assessing tenderreturns on a practical level. It does not cover online liveauctions (also known as Dutch auctioning ). Practicalconsideration such as advising on Tendering strategiesand analysing and reporting on tender returns is guidance note does not provide a detailedreference to public procurement techniques such asthe use of competitive dialogue: it is restricted to thetendering of construction projects (as opposed toprivate finance initiative (PFI)/public privatepartnerships (PPP) arrangements), although thesearrangements are briefly reviewed in subsection this guidance note does not seek toreplicate the information included in the JCTT enderingpractice note 2012.

10 Instead it refers to this informationwhere necessary and gives an overview of theinformation contained in this practice note and why it isimportant to the purposes of giving guidance , the client isreferred to as the employer and the main contractoras the contractor . However, much of the guidance canequally be applied to a contractor/subcontractor orsupplier is given in relation to the main forms ofcontract and main procurement routes under thefollowing headings, which map to the Assessment ofProfessional Competence (APC): General principles (Level 1 Knowing) Practical application (Level 2 Doing); and Practical considerations (Level 3 Doing/advising).


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