Episode 74:

Hello and Welcome to the Part3 with me podcast. 

The show that helps part 3 students jump start into their careers as qualified architects and also to provide refresher episodes for practicing architects. I am your host Maria Skoutari and this week we will talking about Pre-Qualification Questionnaires. Todays episode meets PC2 & PC5 of the Part 3 Criteria.

So what do we mean when we refer to a Pre-Qualification Questionnaire in construction, what is it:

A pre qualification questionnaire, also known as PQQ, is essentially as the name suggests a questionnaire that sets out a series of questions for potential tenderers to answer regarding their financial position, relevant knowledge and experience and technical capability to deliver the works. 

The PQQ essentially acts as the first stage of tendering as a filtering document whereby a number of contractors express their interest to tender for the job and the PQQ enables the client to narrow down the preferred contractors to be then invited to tender. The form itself should be focused and simple to complete and be very clear on what the tender process is for so the prospective tenderers can assess if they have the required experience and capacity to take the project on. 

So what to PQQ’s typically include in terms of format and information:

• The project overview
• The procurement process
• Studies regarding the project
• Relevant qualifications companies can present
• Criteria/tests that will evaluate the pre-qualification statement
• A timetable 

And then what type of information does the PQQ usually request from tenderers, this can typically include:

• Company details - including details of the organisation, company registration, VAT number and so on
• Details of insurance cover
• Financial information, including providing recent accounts and evidence of cashflow
• Relevant experience
• Information about technical and professional ability
• Information about capability and capacity 
• Health and safety policy
• Quality assurance policy, such as following ISO 9001 requirements
• Environmental management policy, such as following ISO 14001 requirements
• Equal opportunities policy
• General Data Protection Regulation Policy 
• Relevant references 
• Case studies and testimonials
• BIM Assessment 

The responses to the questionnaire tend to be evaluated using a scoring method agreed in advance and if a tenderer doesn’t manage to reach a specific rating against any of the key criteria they will be excluded from the evaluation.  

The benefits of using PQQs includes: 

• the time it can save the project managers and/or business owners
• Filtering out any unqualified contractors assisting clients to focus only on people who have the expertise required
• Which lead to cost savings 
• They ensure that any contractor that makes the shortlist can meet the requirements and terms in the contract 

The are actually different types of PQQs which can be used by both private and public sector clients to assess tender candidates. So you have the standard Pre-Qualification Questionnaire which as mentioned is a list of questions a contractor is required to answer when applying for a contract, this PQQ can be used by both private and public sector clients. PQQs are beneficial when a large number of applications for tenders come through enabling clients to shortlist the most appropriate contractors. This type of PQQ typically includes pass or fail questions as well as scores questions whereby the contractor that as a higher score will be accepted for the contract.

Now when it comes to public sector clients, the government requires public clients to use what is known as the PAS 91 PQQ which uses standardised wording for pre-qualification questionnaires making the tendering process less extensive for tenderers and provides greater clarity on the tender process. In the construction industry, PAS 91 is recommended as a minimum standard for construction procurement. Similarly with the standard PQQ, PAS 91 also requires information from tenders when it comes to their finances, environmental policy, social policy, health and safety, company status, competitive edge and so on. PAS 91 also aims to increase the consistency between PQQ’s and databases resulting in clients finding the most qualified contractors. 

And then there is the Standard Selection Questionnaire, which aims to simplify the contractor selection process for smaller companies across the public sector. Its essentially a self-declaration for the contractor to declare that they don’t meet any grounds for exclusion but if it turns out there are grounds for exclusion, then the contractor will be given the opportunity to explain the background and any measures they have taken to rectify the situation. The SQ as its known, is split into three sections, Section 1 - Basic Company Information, Section 2: Mandatory and Discretionary Exclusions and Section 3: Selection Questions. 

And then lastly is the European Single Procurement Document, which is an electronic self-declaration form used within public procurement and submitted by contractors that are interested in tendering for contracts within the EU. The main goal of the ESPD questionnaire is to simplify the qualification process and become more accessible. 

So once the relevant PQQ’s been completed and sent to the client for review, the most appropriate and suitable contractors will then be Invited to Tender also known as ITT. And it is good practice is to notify all interested bidders whether or not they have been included on the shortlist. 

The Invitation to Tender must then be sent in writing to each contractor selected to tender and should consist of:

• Details of the contract including timescales for commencement and completion
• Conditions of the Contract and sometimes here the draft contract is included
• A pricing schedule
• Details of scope of work or services or the quantity and frequency of requirements of goods or services to be supplied  
• Depending on the size of the contract, should highlight all procedural requirements, such as third party inspection, variations, the communication route and names of people involved in discharging contractual requirements and so on. 
• The specification which can be either a functional specification setting out the functions that the goods and/or services are expected to fulfil or a technical specification setting out the technical characteristics of the goods and/or services.
• Any drawings and/or plans 
• Any details of free issue goods, if any, and the arrangement for such free issue
• Give details of submission of bids, such as time and precise location, that late bids will not be accepted, the date of bid opening and whether it will be open or closed. Open bidding is where all bidders have the option of being present to view and note total prices submitted by all bidders. Often used overseas as a means of avoiding accusations of corrupt practices as only those bids opened, registered, and with their total cost announced, will be considered in the evaluation process. Where appropriate, information should be included on the tender evaluation methods that should be adopted. 
• Detail the terms and conditions anticipated in any resultant contract, so that bidders may take any “special” conditions into consideration when compiling their tender.  

Then once tenderers have been prepared their tenders, it is normal procedure to conduct invitations to tender under the sealed bid process. Under the sealed process, every bid must be submitted sealed and only opened at the due time, on the due date, which has been notified in the Invitation to Tender and tenders must be submitted by that date at the latest. Bidders must describe in full how they will fulfil the requirements of the purchasing organisation, with details of delivery and payments.The bid must also include a signed confidentiality agreement that there has been no collusion between themselves and other bidders and that there has been no improper contacts or discussions with any of the clients staff. 

The time allowed for the preparation of tenders should be determined in relation to the size and complexity of the job. Inadequate tendering time can lead to mistakes and the client may not obtain the most competitive prices. A minimum of four working weeks should normally be allowed. Major projects, plan and specification tenders may well require a longer period. The tender period must be sufficient to enable the tenderer to obtain competitive quotations for the supply of materials and for the execution of works to be sub-let. The latest time for submission should be specified as an hour of a day and should be chosen to allow as short a time as possible to elapse before opening the tenders. Tenders received after time should not be admitted.

For fair competitive tendering its essential that the tenders submitted by each invited tenderer be based on identical tender documents, known as a compliant tender, and that the tenderers should not attempt to vary the basis of their tenders. In some instances the employer is prepared to receive alternative offers varying any aspect of the project specifications including an alternative contract period to which all tenderers should be notified accordingly. An alternative offer should only be considered if its accompanied by a compliant tender, so tenderers will essentially need to produce two sets, one as per the tender requirements and another with the proposed variations. 

This process of tendering is typically done under the single stage process. 

With two stage tender, in order to facilitate the selection of a contractor an an early stage, the documentation provided at the first stage if usually kept to a minimum covering the competitive basis for selection, the principles of layout and design, provide pricing documents whereby provisions should be allowed to be made for the adjustment of price fluctuations during the period between the first and second stage tenders, then also provide a programme for the second stage procedures and the conditions of contract. It should also state an explanation of the two stage procedure together with any special requirements from the client and the nature and extent of the contractor participation during the second stage. 

Then, similarly to the single stage process, the tenderers are given an appropriate period of time to put together their initial tender for the first stage, the time allowed should be determined in relation to the size and complexity of the project. So once the first stage tenders are received all should be evaluated and the three most favourable are informed immediately, three tend to be retained so that if the lowest tenderer withdraw their offer, the second and third lowest tenderer are informed that their first stage tenders were not the most favourable received but that they will be approached again if it is decided to give further consideration to their offers. They should also subsequently be immediately notified following a decision being taken to recommend a tenderer for the second stage. Then the preferred tenderer at the first stage should be notified of acceptance of their tender in writing with the acceptance stating the process if either party decides to withdraw from the second stage, the entitlement and method of ascertaining costs that may have been incurred by the employer and or successful contractor in the second stage negotiations if the second stage doesn’t proceed and also stating the method of reimbursement for any work done on site before acceptance of the second stage contract sum should the second stage procedures prove abortive. 

Then once those items have been agreed and accepted between the employer and contractor, they proceed to the second stage whereby the employers professional team and selected contractor develop the design and production of information to enable the preparation of the bills of quantities for the works priced on the basis of the first stage tender resulting in an acceptable sum for inclusion in a form of contract. So on completion of the second stage procedures and appointment of a contractor each of the first stage tenderers should be advised and given a list of the first stage tender offers. 

So to sum up what I discussed today:

• A Pre-Qualification Questionnaire is a standard form used to shortlist contractors for the Invitation to Tender
• Tenderers are assessed against their financial, technical and professional capability
• The responses to the questionnaire are evaluated using a scoring method agreed in advance
• There are different types of PQQs, some of which include the standard PQQ used but both private and public sector clients, another is the PAS 91 PQQ required by public sector clients and another is the Standard Selection Questionnaire which aims to simplify the contractor selection process for smaller companies across the public sector and also the European Single Procurement Document, an electronic self-declaration form used for public procurement tendering for contracts within the EU
• Once the PQQ’s have been completed the most appropriate and suitable contractors will are then Invited to Tender
• Whereby contractors either tender under a single or two stage process