RICS eTendering

Erik Winterkorn RIBA

RICS Building Cost Information Service
Agenda:
Introduction
RICS Guidance Note
Member Survey
RICS E-Tendering
Questions
Agenda
Tendering
Tendering is selecting a contractor and setting a price
Tendering requires the exchange of lots of information
Today, the documents used are generally prepared in
electronic format, but are still being distributed on
physical media (i.e CDs)
Tendering
RICS E-tendering Guidance note
Prepared by the RICS E-tendering Working
party
1
st
edition of E-tendering guidance note was
issued in October 2005
2
nd
edition is expected shortly
RICS E-tendering Guidance Note
RICS E-tendering Guidance Note
1 Tender methodology
1.1 Choosing the medium of data exchange
1.2 Electronic formats
1.3 Methods of exchange
2 Technology
2.1 The impact of bandwidth
2.2 Disk transfer
2.3 Email
2.4 Web based technology
3 Security
3.1 Security of file(s) being sent/exchanged
3.2 Security of the network/communication infrastructure
3.3 Security of the back up/records management
RICS E-tendering Guidance Note
4 Tendering procedure
4.1 Preparation checklist for e-tendering activities
4.2 Preliminary enquiry
4.3 The tender documents
4.4 Time for tendering
4.5 Tender compliance
4.6 Withdrawal of tender before acceptance
4.7 Guidance on electronic offer and acceptance
5 Assessing tenders and notifying results
Appendices
A Sample preliminary enquiry initial letter
B Prequalification document description of works and
guidelines for contractor submissions
(Part 1): Project information schedule and response
(Part 2): Information checklist
(Part 3): Software standards (review only)
C Sample document index and referencing notes
D EU Directive 2004/18/EC The coordination of procedures
for the award of public works contracts, public supply
contracts and public service contracts
E CITE (Construction Industry Trading Electronically)
F Project Information eXchange (PIX) protocol toolkit
G Glossary
H Further information and useful websites
RICS E-tendering Guidance Note eTendering Survey Report
2009 BCIS eTendering Survey Report
2009 BCIS eTendering Survey Report
February 2009 RICS member survey updating 2006 survey
Sent to over 4,600 UK Partner/Director members of
RICS QS Construction Professional Group
(vs. 4000 in 2006)
369 responses or 7.9% (vs. 298 or 7.4% in 2006)
(55% responding for whole firm, 19% single office, 26%
individuals)
Representing 4,406 staff
Organised 9,342 tenders in the past year, 2.1 per staff
member/27 per respondent
eTendering Survey Report
Method of tender issue
Client Demand
Survey findings: Exchange of Contract Documents
eTendering Survey Report
Survey findings: Exchange of Contract Documents
Exchange of contract
documents by means of
electronic distribution
Interest in using a web
based portal
eTendering Survey Report
Survey findings: Advantages of Using eTendering
eTendering reduces
timescales
eTendering reduces
effort in analysing
tenders
Survey findings: Advantages of Using eTendering
eTendering reduces
administration costs
eTendering improves
access for contractors
and sub-contractors
eTendering Survey Report
Survey findings: Advantages of Using eTendering
eTendering will enhance
your service
Improved contractor access
to information for sub-
contractors
eTendering Survey Report
Survey findings: Aware of Guidance and Solution
Have you read the RICS
eTendering Guidance
Note?
Aware of the RICS
eTendering solution?
eTendering Survey Report
Summary of Key Survey Findings:
Increasing use of electronic document transfer
Increase in the use of physical media to distribute electronic
tender documents
RICS members sentiment toward e-tendering remains
strongly positive
Ongoing acceptance by the majority of responding members
of the benefits of e-tendering
Concerns about the costs and clients sentiment ranked highly
Almost half aware of the RICS e-tendering solution, with 22%
requesting information
eTendering Survey Report
The Solution
Electronic tendering provides a major opportunity to
replace existing paper based procedures and achieve
significant cost savings, while producing a more efficient
and reliable process.
Allows clients and their consultants (buyers) to run tenders
through a secure, accredited website
Offers a simple, secure, standard, efficient and cost
effective way to manage tenders online
Use of the system is charged on a per tender basis to
buyers or via subscription model
Use of the system is free to contractors (suppliers)
Electronic Tendering
Platform Technology
Endorsed under the OGC Managed Service Framework
agreement for eSourcing
Used by over 60 central and local government
organizations (UK)
Over 11,000 buyer users, 60,000 Contractor users
Over 15 billion in contracts managed online
140,000 response documents submitted by suppliers online
(~24 million printed A4 pages, saving ~4,000 trees)
14,000,000 user sessions managed by the system
Average of 300 projects running on the system at any one
time
Security Statement:
The Service is accessed over a secure internet connection
and all data sent to and fromthis Service is encrypted.
The Service security certificate has been issued to
ricsetendering.com by Thawte as confirmation of the identity
of the Service.
The security measures of the Service meet the requirements
for the conduct of business at HM Government Restricted
(Impact Level 3) designation.
The Service is subject to an annual security review,
compliance checking and re-accreditation process.
Create a tender
online.
Publish the tender to
contractors
Communicate with
tenderers during
tender period.
Monitor tenderer
activity.
Modify the tender
requirements if
required.
Overview of the RICS eTendering Workflow
Open and evaluate
tenderer responses.
Award or progress the
tender.
Report on the tender.
Archive the completed
tender
Note: PQQ and ITT
processes are the same
RICS eTendering Workflow
Benefits for buyers
Benefits of RICS eTendering for buyers
Improves efficiency and eliminates waste.
Reduced costs - Works on a pay-per-tender basis.
Buyers pay 500 to register each tender. There are no
additional subscription fees or start-up IT investment
costs.
Maintains an audit trail of all communication.
Provides secure, safe, ease to use, user-friendly
tendering.
Quick - immediate posting of documents and guarantee
of them being received. Responses from suppliers are
delivered right to your desktop.
Option to use the system to evaluate tender returns on
screen.
Benefits of RICS eTendering for suppliers
Immediate and easy access to documentation in
electronic format. Contractors will also be notified if any
changes are submitted by the buyer.
Clearer communication. Contact with buyers is made
only through the system, so a clear record is kept.
Reduced tendering costs. Registration for suppliers is
free of charge. Submitting tenders through RICS
eTendering removes the costs of compiling and
delivering documentation in hard copy format.
Suppliers can set themselves up as buyers and procure
their sub-contracts using the system.
Benefits for Suppliers
Engineering &
Construction
Defense &
Space
Chemical &
Pharmaceutical
Energy&
Utilities
Consumer
Goods
Media, Print &
Publishing
Government Services Manufacturing Telecom Transportation Banking
Customers using Platform Technology A selection of RICS eTendering Clients
Real Estate Associates
Prices quoted on www.ricsetendering.com/
One tender - 1 electronic tender
500+VAT at 15% per tender500/tender
Package A - One-year subscription for up to 10 electronic tenders
4,250+VAT at 15% per tender: 425/tender
Package B - One-year subscription for up to 20 electronic tenders
7,500+VAT at 15% per tender: 375/tender
Package C - One-year subscription for up to 50 electronic tenders
17,500+VAT at 15% per tender: 350/tender
Package D - One-year subscription for up to 100 electronic tenders
32,500+VAT at 15% per tender: 325/tender
Buyer Login Screen
Buyer Tender Area
Select or createPQQ or ITT
CompleteITT Details
CreateTechnical Parameters (with scoring)
CreateCommercial Parameters
CreateCommercial Parameters manually.
.or upload template/attachment from
CATO
Supplier view of tender items
Select Tenderers Publish tender
Tender Published & running
Tenderer(s) automatically emailed
Manage Live Tender
Tenderers Login Screen (free)
Tenderers Tender area Select Tender
CompleteTechnical Parameters Completeaudit trail of any tender amendments
Tenderers automatically emailed
Tenderer completes pricing.
..and publishes.
Confirmation that tender published..
.Buyer notified by email
Buyer can review Tender status..
..and history of tender amendments Formal tender opening (sealed)
Review Summary of Responses
Review Technical & Commercial Parameters
Tender award
CompareTenders
Tenderers notified of award
www.ricsetendering.com