Procurement And Tendering Quiz

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Procurement And Tendering Quiz - Quiz

Here is a "Procurement and Tendering" quiz to test your understanding of the same. This quiz consists of questions related to various aspects of the procurement process. There is also feedback with every question to understand the concepts in a much better manner. Take this quiz and check whether you can get all answers correct. Share it with those who you think will benefit too. All the best!


Questions and Answers
  • 1. 

    What is the primary difference between a ‘Lump-Sum’ and ‘Cost-Reimbursement’ Procurement route?

    • A.

      Approach to cost and program

    • B.

      The complexity of the works being undertaken

    • C.

      Opportunities available for claiming additional fees

    • D.

      Minor book-keeping differences

    Correct Answer
    A. Approach to cost and program
    Explanation
    The approach to cost and program are the primary differences. Lump Sum seeks a single respective cost for the project in question, while more complex or uncertain scopes of work may be more appropriate down a Cost-Reimbursement route whereby the contractor approaches the client within specific timeframes with proof of receipt of all costs incurred during that time with the addition of profit (either fixed or as a percentage).

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  • 2. 

    What types of clients are ‘Public Finance Initiatives’ most appropriate for?

    • A.

      Small Private Clients

    • B.

      Large Private Clients

    • C.

      Small Public Bodies

    • D.

      Large Public Bodies

    Correct Answer
    D. Large Public Bodies
    Explanation
    While 'Public Finance Initiatives' no longer exist, they are interesting to be aware of in terms of the history of tendering and procurement routes. They were an option available to Large Public Bodies who would seek tendering parties to build and operate the project, whereby they would have access to profits the project generates during the length of the program. Typically clients would not put forward any funding, hence the appeal to Large Public Bodies.

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  • 3. 

    What is the role of the 'Employer's Agent' on Design and Build projects?

    • A.

      To act as an agent on behalf of the client, with some powers during construction comparable to a 'Contract Administrator.'

    • B.

      To lead the coordination of the design on behalf of the employer

    • C.

      To oversee the health and safety, building control, and other legislative processes on the employer's behalf

    • D.

      There is no 'Employer's Agent' on Design and Build projects.

    Correct Answer
    A. To act as an agent on behalf of the client, with some powers during construction comparable to a 'Contract Administrator.'
    Explanation
    During construction, the role of the Employer's Agent can often appear synonymous with that of a Contract Administrator, including tasks such as issuing instructions, managing change control procedures, considering claims, etc.

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  • 4. 

    Which one of these is an advantage of going to a ‘Design and Build’?

    • A.

      No need to employ a full design team

    • B.

      Achieving maximum quality

    • C.

      Single point of responsibility

    • D.

      Offers the client minimum risk

    Correct Answer
    C. Single point of responsibility
    Explanation
    When the architect is novated following the contractor's appointment, they become solely responsible for both the design and construction of the project. A full design team is still required, although who appoints them varies and notoriously. 'Design and Build' has a reputation that says it does not compete with traditional procurement in terms of achieving maximum quality.

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  • 5. 

    What innovations have been introduced by NEC Contracts to the construction industry? 

    • A.

      A collaborative approach to construction and contracts devoid of heavy legal language

    • B.

      Flexibility and efficiency of administration

    • C.

      Easy integration of letters of intent and clause amendments

    • D.

      Use for projects under £100k

    Correct Answer
    A. A collaborative approach to construction and contracts devoid of heavy legal language
    Explanation
    NEC Contracts were originally used for engineering and infrastructure projects, but with their growing popularity, they have seen use on the likes of the London Olympics and HS2. The benefits have been that collaboration has been NEC's approach to risk allocation and management, which seeks to be more collaborative through instruments like 'Early Warnings,' while JCT fundamentally contracts the contractor to use their best endeavors to prevent delay to the works.

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  • 6. 

    What is the purpose of a ‘Specification' in a Traditional Contract?

    • A.

      A responsibility matrix of all individuals during the construction phase

    • B.

      Defined the scope of work within the architect's appointment

    • C.

      A shortlist of potential sub-contractors

    • D.

      Descriptions of products, materials, and work required by a contract

    Correct Answer
    D. Descriptions of products, materials, and work required by a contract
    Explanation
    The purpose of the 'Specification' is to assist with the description of products, materials, and work required by a contract.

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  • 7. 

    When might you want a ‘Schedule of Rates’?

    • A.

      For early cost development on projects

    • B.

      In the absence of a bill of quantities to understand the cost-reimbursable rates of staff, labor, and plant when tendering

    • C.

      When acquiring several quotes for the provision of services to demonstrate best value practices.

    • D.

      When reviewing the costs associated with the services provided by Local Planning Authorities

    Correct Answer
    B. In the absence of a bill of quantities to understand the cost-reimbursable rates of staff, labor, and plant when tendering
    Explanation
    A 'Schedule of Rates' is useful during tendering, typically in the absence of a Bill of Quantities, or during two-stage tendering as a part of the first stage to provide cost comparisons between parties.

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  • 8. 

    Where would you expect the client to state and capture their priority mix (Quality, Cost, Time, and Risk?)

    • A.

      RIBA Stages 0-1 - Strategic Definition / Preparation and Briefing

    • B.

      RIBA Stage 2 - Concept Design

    • C.

      RIBA Stage 4 - Technical Design

    • D.

      RIBA Stage 5 - Manufacturing and Construction

    Correct Answer
    A. RIBA Stages 0-1 - Strategic Definition / Preparation and Briefing
    Explanation
    Understanding the priority mix of the client is critical to capture early in Stages 0 and 1 within the Project Brief. Not being privy to this information at this stage could result in work being completed at risk of abortive work and changes.

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  • 9. 

    According to the Latham Report, which of the following would be inappropriate if the objective was to achieve an ‘Early Completion’?

    • A.

      Traditional

    • B.

      Design and Build

    • C.

      Construction Management

    • D.

      Self-Build

    Correct Answer
    A. Traditional
    Explanation
    Traditional requires the full coordination and preparation of design information prior to starting on site, thus requiring the longest program in an effort to execute the best possible quality for the project. Design and Build is quicker in that it has single-point responsibility for executive designs to be made, while Construction Management allows for the overlapping of multiple designs and build packages. 

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  • 10. 

    What is ‘Contractor’s Design Portion’ (CDP)?

    • A.

      A portion of the work is absent of any design information.

    • B.

      A portion of the work that requires the novation of the design team to the Contractor.

    • C.

      A portion of the work that the Contractor is responsible for the design of.

    • D.

      A portion of the work that the Contractor is required to gain third-party design advice about.

    Correct Answer
    A. A portion of the work is absent of any design information.
    Explanation
    A 'Contractor's Design Portion' is whereby a very specific, allocated portion of the works is reserved for the contractor to take design responsibility for. The contractor will be given an Employer's Requirements as a form of scope, and in the absence of design information provided by the architect, or design team, will be responsible for providing a design, in-house or by others.

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  • 11. 

    In the UK, what is the alternative to what was formerly used for Public Procurement (OJEU)?

    • A.

      Search a Bid (SAB)

    • B.

      Find a Tender (FTS)

    • C.

      Look for Work (LFW)

    • D.

      Procure a Pro (PAP)

    Correct Answer
    B. Find a Tender (FTS)
    Explanation
    Since the UK is leaving the European Union, the UK will not be advertising public procurement notices on OJEU (Office Journal of the European Union). Instead, with the upcoming revisions of the Public Procurement Bill 2022-23, the UK Government introduced the 'Find a Tender' service. The principle is similar, whereby certain thresholds of types of work by public bodies need to be publicly listed on FTS for consideration.

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  • 12. 

    What is a key advantage of ‘Two-Stage Tendering’?

    • A.

      Cost Certainty

    • B.

      Overlapping design and build programs

    • C.

      Single point of responsibility

    • D.

      Early appointment of a contractor to contribute buildability knowledge

    Correct Answer
    D. Early appointment of a contractor to contribute buildability knowledge
    Explanation
    'Two-Stage Tendering' allows for the early appointment of contractors who are able to contribute buildability knowledge and offer insight in terms of construction, cost, procurement, and feasibility. It does not offer cost certainty or single point responsibility, like Design and Build, or overlapping Design and Build programs, like Construction Management.

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  • 13. 

    What are the two most important traits when involved with tendering?

    • A.

      Fairness and Competition

    • B.

      Peace and Quiet

    • C.

      Integrity and Impartiality

    • D.

      Respect and Honesty

    Correct Answer
    A. Fairness and Competition
    Explanation
    Fairness and Competition are the two most important traits, allowing healthy competition among parties fairly. These are upheld by removing oneself from actions that could be interpreted as demonstrating favoritism, such as responding to a tendering party in private, offering additional site visits, allowing one party to offer an alternative solution and therefore tendering proposal, etc. It's not that the above should not take place at all, but all parties should be given the opportunity.

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  • 14. 

    Why is ‘Assessment Criteria’ important when tendering?

    • A.

      Understanding whether you qualify as a party looking to submit a tender

    • B.

      Providing equality and visibility of standards that invited tenders are being judged against

    • C.

      An opportunity for tendering parties to provide feedback and comments

    • D.

      Allows those overseeing the tendering process to highlight any discrepancies

    Correct Answer
    B. Providing equality and visibility of standards that invited tenders are being judged against
    Explanation
    The purpose of 'Assessment' or ' Evaluation Criteria' is to provide a clear basis for appropriately selecting the final tender and sharing the assessment between all parties who partook in the tender to understand their shortcomings and weaknesses as to why they were not selected. It promotes equal opportunities, makes the process transparent so that winning tenders are doing so for the right reasons, and allows tendering parties to focus their attention where the weightings might require it. 

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  • 15. 

    When is a ‘Single Tender’ an appropriate procurement route?

    • A.

      Short programs

    • B.

      Public body client

    • C.

      Specialist works

    • D.

      Projects under £50k

    Correct Answer
    C. Specialist works
    Explanation
    Single tenders should only be reserved for specialist works, whereby finding a shortlist of tenders proves to be difficult. Single tendering should not be deemed an appropriate tendering route purely because of timelines, the type of client (especially not if they are a public body who need to demonstrate they are achieving value for money), or simply because of contract value size.

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  • Current Version
  • May 09, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 04, 2023
    Quiz Created by
    Themes
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