Benefits of the Two Stage Tender by Steve Speller

*Read more about different types of tenders here.

While options must be weighed up alongside other procurement methods, two-stage contracts can offer clients the following:

• Pre-existing relationships between the contractor and chosen consulting team can result in better understanding through good communication and shared knowledge;
   
• Should the project team be unknown to each other, relationships can be established at an earlier stage and a successful outcome more assured;
   
• The contractor’s knowledge of previous, similar schemes is made available at a much earlier stage;
   
• The contractor’s input on many practical issues such as phasing, site layout, access, health and safety can be invaluable from an earlier stage;
   
• Your contractor can advise on any buildability issues – that is to say any hurdles that may crop up during the construction phase can be identified and resolved;
   
• Improved control over the pre-construction design development and costing process can give you a better understanding of the major cost headings and opportunity for the introduction of value engineering at an early stage;
   
• Better programming and monitoring of the design development and pre-construction costing process. The contractor can track progress highlighting procurement priorities, so that these then become integrated with the construction period.
   
• Competitiveness can still be achieved at the first stage of the process; in addition to preliminary costs, programme assessments, overhead and mark up figures and comments on the scheme, it may also involve the contractor ‘buying in’ to the cost plan for the project of pricing a schedule of rates;
   
• Early contractor involvement enables the client to understand environmental constraints and sustainability issues. For example, projects aiming to reach BREEAM accreditation enables the contractor to play a full part in developing the BREAAM model (which involves far reaching design, construction and client issues);
   
• Improved cost certainty and reduced cost risk to employer.

Steve Speller, Joint Managing Director, Speller Metcalfe