SAINT MARY’S UNIVERSITY

SCHOOL OF ENGINEERING, ARCHITECTURE AND

INFORMATION TECHNOLOGY
DEPARTMENT OF CIVIL ENGINEERING
BAYOMBONG, NUEVA VIZCAYA

QUANTITY SURVEYING
June 17, 2021

PROCUREMENT

- It is an acquisition process used to secure services, goods, and work from external sources or
contractors.

Reasons why you must require procurement:

a) You may go for a procurement contract when you do not have the expertise to carry out the
job.
b) You do not have the capacity to do it on your own.
c) You lack the capacity to handle the requirement.
d) A resource can be produced outside your firm at a significant discount.

However, before going for a procurement contract, you must analyze whether it would be cost-
effective to do it yourself or if you should outsource it. If the benefits of outsourcing outweigh the
“do it yourself”, outsourcing is advisable.

Selection criteria of procurement:

- The Owner’s Requirements

- The Nature of the Project
- A variety of Constraints (such as time, cost, and quality)
- The uncertainties associated with the project.

Procurement Routes

1) Lump Sum Contract – the contractor is required to provide a lump sum price for a particular
work defined in the procurement process.
a. Lump Sum Contract based on Drawings and Specifications.
b. Lump Sum Contract based on Bill of Quantities.

2) Design and Build Contractor – The Contractor is responsible for the design and construction
as well as the management of the project.
a. Turnkey Contract – Design and Build but it also includes “Furnish and Fit-out”.

3) Management Contracting – Type of Procurement route aims to limit if not eliminate

variations in a project.
- a preferred Contractor is employed to join the design team at the design stage to
assist in the planning and design by providing his practical experience and
construction expertise.

4) Measurement Contracts – The contract sum is ascertained by measurement and valuations

related to bill of Approximate Quantities or to a Schedule of Rates
a. Measurement of Contract Based on Bills of Approximate Quantities
b. Measurement Contract Based on Schedule of Rates
 SAINT MARY’S UNIVERSITY
SCHOOL OF ENGINEERING, ARCHITECTURE AND
INFORMATION TECHNOLOGY
DEPARTMENT OF CIVIL ENGINEERING
BAYOMBONG, NUEVA VIZCAYA

5) Cost Reimbursement Contract (Cost+free) – The Construction Cost is based on actual

expenditures incurred by the Contractor in carrying out the work, plus an agreed
fee/percentage to cover overheads and profit.

“NONE OF THE PROCUREMENT OPTIONS IS ABSOLUTE – there is no ‘BEST’ Procurement Route”

TENDERING

- It is the process by which bids are invited from interested contractors to carry out specific
packages of construction work. It should adopt and observe the key values of fairness,
clarity, simplicity, and accountability, as well as reinforce the idea that the apportionment of
risk to the party best assess and manage it, is a fundamental to the success of a project.
(National Building Specification, NBS)

Basic Forms of Tendering

1) Open Tendering – allows anyone to submit a tender to supply the goods or service that are
required.
2) Selective Tendering – allows contractors/ suppliers to submit tenders by invitation.
3) Negotiated Tendering – appropriate for highly specialist contracts or for extending the
scope of an existing contract.
4) Serial Tendering – preparation of tenders based on a typical or notion bill of quantities or
schedules of works. The rates submitted can be then used to value works over a series of
similar projects.
5) Framework Tendering – invite tenders from suppliers of goods and services to be carried
out over a period on a call-off basis as and when required.
6) Single-stage and two-stage tendering
a. Single-stage Tendering – is the more traditional route.
Used when all the information necessary information to calculate a realistic price is
available during tendering.
b. Two-stage Tendering – allow an early appointment of supplier, prior to completion
of all the information required to enable them to offer a fixed price.

TENDER PROCUREMENT PROCESS

1) Form Procurement Team

2) Develop Tender & Evaluation Criteria
3) Pre-Qualify – long list
4) Issue Tender
a. Invitation to Tender for Construction contracts
b. Tender Documentation for construction projects
c. Tender Pricing Document
5) Tender Briefing Meeting
6) Tender Submission/Opening
7) Initial Evaluation
 SAINT MARY’S UNIVERSITY
SCHOOL OF ENGINEERING, ARCHITECTURE AND
INFORMATION TECHNOLOGY
DEPARTMENT OF CIVIL ENGINEERING
BAYOMBONG, NUEVA VIZCAYA

8) Tender Clarification
9) Tender Report
10) Negotiation Award

-In essence these differences amount to the fact that while procurement relates to how the services
of a contractor are purchased, tendering relates to how the successful contractor is ultimately
selected. The distinction might seem slight but is in a candidate’s best interest to have a clear picture
in their minds of where the division lies.

TENDER DOCUMENTS

1) A Letter of invitation to tender

2) The Form of Tender
3) Preliminaries
4) The form of contract, contract conditions and amendments.
5) A tender pricing document.
6) Design drawing and an existing building information model
7) Specification