rics etendering

RICS eTendering

Erik Winterkorn RIBARICS 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

• 1st edition of E-tendering guidance note was issued in October 2005

• 2nd edition is expected shortly

RICS E-tendering Guidance Note


1 Tender methodology1.1 Choosing the medium of data exchange1.2 Electronic formats1.3 Methods of exchange

2 Technology2.1 The impact of bandwidth2.2 Disk transfer2.3 Email2.4 Web based technology

3 Security3.1 Security of file(s) being sent/exchanged3.2 Security of the network/communication infrastructure3.3 Security of the back up/records management


4 Tendering procedure4.1 Preparation checklist for e-tendering activities4.2 Preliminary enquiry4.3 The tender documents4.4 Time for tendering4.5 Tender compliance4.6 Withdrawal of tender before acceptance4.7 Guidance on electronic offer and acceptance

5 Assessing tenders and notifying results

AppendicesA Sample preliminary enquiry – initial letterB 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 notesD 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 toolkitG GlossaryH Further information and useful websites

RICS E-tendering Guidance Note eTendering Survey Report

2009 BCIS eTendering Survey Report

2009 BCIS eTendering Survey ReportFebruary 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


Survey findings: Exchange of Contract Documents

Exchange of contract documents by means of electronic distribution

Interest in using a web based portal


Survey findings: Advantages of Using eTendering

eTendering reduces timescales

eTendering reduces effort in analysing tenders


eTendering reduces administration costs

eTendering improves access for contractors and sub-contractors



eTendering will enhance your service

Improved contractor access to information for sub-contractors


Survey findings: Aware of Guidance and Solution

Have you read the RICS eTendering Guidance Note?

Aware of the RICS eTendering solution?


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


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 from this 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

ConsumerGoods

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 tender£500/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 create PQQ or ITT

Complete ITT Details

Create Technical Parameters (with scoring)

Create Commercial ParametersCreate Commercial 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)

Tenderer’s Tender area Select Tender

Complete Technical Parameters Complete audit trail of any tender amendments……

Tenderer’s 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

Compare Tenders

Tenderer’s notified of award

www.ricsetendering.com