Estimating, Tendering and Procurement | Report

ESTIMATING, TENDERING AND PROCUREMENT
Estimating, Tendering and Procurement
Name of the student
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Table of Contents

ESTIMATING, TENDERING AND PROCUREMENT
Introduction......................................................................................................................................2
A strategic approach to procurement...............................................................................................4
Alternative Procurement strategy..................................................................................................12
Potential benefits of adopting alternative procurement strategies.................................................13
Advanced procurement practice....................................................................................................14
Procurement types.........................................................................................................................18
Implimentation...............................................................................................................................20
Factors influencing the procurement strategy................................................................................22
Conclusion.....................................................................................................................................25
Reference.......................................................................................................................................26
Introduction
Kingston University, an university which has a heritage of educating people and
advancing knowledge, makes a difference to the world around us. The vision frames that the

ESTIMATING, TENDERING AND PROCUREMENT
students will be examined for their academic achievements in a 360 degree manner and their
ability to give a shape of the society and contribute to the economy (Granovetter 2017).
As a consultancy practice there has been a new opportunity of a new business for a
sustained and ongoing partnership with the university since the principal of Kingston University
London is planning to establish a new building within the “Penrhyn Road Campus”.
The proposed plan will have 2 auditoriums that encompassing 200 seat each. It will be
attached with a “high specification technology and multimedia theatre” along with air
conditioning and easy tiered seating that provides outstanding visibility (Weaver 2017). The
feature of the auditorium will have a full size interactive screen and computerized performance
facilities, which is more suitable for conferences, lectures and presentations. Budget estimated
for a new building is 10 million dollar and will be finished with a stipulated time period of 2
years.
New six storey building is to be developed next to the Kingston University’s main
building. For that reason the old building needs to be demolished to get access for the new
building. It is require to analyses and find the alternative routes for the proposed project and
make a strategic approach (Pearlson, Saunders and Galletta 2019) of the procurement.
Kingston University’s new building has opend the door to all of the students, staff and the
wider community. The design of this campus may transform a memorable learning experience
for the students and stand as a entryway the university for the residents and business.
It has such features of two comprehensive (Marcelino-Sádaba González-Jaen and Pérez-
Ezcurdia 2015) auditorium with high specification technology and multimedia hall with full of
comfort provided by the excellent visibility. According to the management, the new building is a

ESTIMATING, TENDERING AND PROCUREMENT
stunning architectural achievement bear with an inspiration which break down the barriers and
encourage creativity, will share a learning experience. During the start of the project, it sets to
create a building that provides a real presence and replicates the importance of the civic role
within the Kingston group.
One of the tactical approach behind this project is to invite and welcome an
environmental friendly situation and allow more opportunities that would help to make a
collaboration between the various university, local residents and businesses. It will play as an
strategic front door and gateway which helps to make a society engagement who come and be a
part of such wonderful experience.
To make a sustainability and community access (Fuchs 2017), this project is taken a
leading sustainability assessment method for master planning the job. Its design supports and
enhance the student’s experience. It allows an organic programme to create informal learning,
research and performance to take place under one roof.
Addressing the strategic approach to the procurement, we need to promote efficient,
effective and sustainable procurement that helps to work with the customers and suppliers to
ensure that maximize the value for money on all expenditure which includes goods, services and
works. It is require to add value opportunities by the procurements especially for those who will
add value to the experience gained by our students.
A strategic approach to procurement
This research paper demonstrate a procurement roadmap for the university to support
with the university’s vision, mission and core value statements. Procurement, it is another way
we may called an enabler and strategic asset for achieving the distinctiveness, innovation,

ESTIMATING, TENDERING AND PROCUREMENT
efficiencies and the effectiveness. Make a provision of the goods and service through a strategic
collaborations and partnerships with the key suppliers.
One of the key strategic procurement (Patrucco 2017) is the relationship of the suppliers
and their supply chains, sustainability, student employability and placement opportunity.
Sustainability, added value, student employability and placement opportunities are also achieved
through the relationship with key suppliers and their supply chains (Rajesh and Ravi 2015).
Corporate procurement unit
The corporate procurement unit divided into four fully qualified procurement
professionals. A procurement data analyst and an office of procurement providing services
across the university. The team procured all the ongoing contracts by the category management
approach and builds contract management requirements. This corporate procurement will
involve to assure compliance of the procurement policy. It will carry a due diligence on the new
and existing suppliers. It leads a high value tenders and maintain a centrally procured contracts
database (kingston.ac.uk 2020).
Category management and adopting value of money in its widest sense continues to be
main focus for the team. The head of the procurement will lead the team for the strategic
development (Chupina 2016) of the function and delivery of the objectives set out in this
document.
Procurement system and tools

ESTIMATING, TENDERING AND PROCUREMENT
To develop “procure to pay” tasks are automated across the universities through an online
self and service system. The university also incorporates “In-Tend e-tendering system which is
used for all procurements having a threshold of above 50K.
Policy of Procurement
The procurement policy and guides for the respective universities will support documents
which will have some link to
 Financial regulations and policies (Barrett 2016).
 Procurement directives and the related public contracts regulations.
Scope of the procurement activity
Kingston University has an operating expenses 72 million dollar approximately per
annuam on the external provision of goods, services and works, 76% of the operating expenses
(Enache and Srivastava 2018) can be impacted by procurement.
Operating Expenses
Financial year
Kingston University
(£)
2017/18
71,714,00
0
2016/17
77,070,00
0
Average
74,392,00
0
Impactable by
procurements 76%
Procurement vision and aims

ESTIMATING, TENDERING AND PROCUREMENT
Procurement vision
Universities alignment desired outcomes is to provide a strategic and professional
procurement service which will engage the supplier’s engagement. And by this supplier
engagement the new building will build up with the estimated budget of 10 million euro.
Procurement aims
 An approach in terms of category and risk management (Hopkin 2018)
 Advice on procurement
 Achieved added value benefits that enhance student experience
 Assist buyers and other key stakeholders
 Achieve the innovative delivery, quality and cost effective goods, service and works
 Achieving best “value for money” over the whole life of contracts (Turcotte-Tremblay
2016).
Procurement strategy
Category management
Divided into the following categories managed by a procurement category manager:
 ICT
 Estates and Facilities
 Corporate
Then above mentioned approach assures the category managers to understand the market
drivers for their respective group, aware of new developments and trends. It will effectively
manage the relationship with the key and the critical suppliers.

ESTIMATING, TENDERING AND PROCUREMENT
Reason
Category management permits the alliance and leveraging across the universities to
maximize value of combined spending power and further improve the welfares that can be
imitative from cooperative procurements.
Risk management approach
To permit the deployment of the most suitable strategy of procurement, spend is
categorized using the risk and value matrix which is shown below:
Reason

ESTIMATING, TENDERING AND PROCUREMENT
It will thoroughly advise that the corporate procurement unit maintains a procurement
risk register along with the preventive and mitigating actions, which will require to manage the
identified risk management at Kingston University and its include corporate risk (Pan, Siegel and
Wang 2017) register.
Professional procurement advice
Procurement advise is guided by the fully qualified members of CIPS, (Chartered
Institute of Procurement and Supply) and procuring advice for trained and experienced support
staff members.
Reason
To deliver qualified and procuring advice.
Enhancement of student experience
This could be a variety of forms such as job placements, internships, employement,
opportunities, specialists guest lectures use of proprietary software, training, presentations,
presence at open days and fairs and special discounts or offers for students.
Reason
This procurement process will be used to encourage suppliers for providing solutions and
add value benefits to expand the students experience and also increase their satisfaction.
Above threshold procurements
The CPU management deliver support for procurements exceeding £50k brink over the
term of the contract or, if unknown, when combined over a term of 4 years. Raised the

ESTIMATING, TENDERING AND PROCUREMENT
requisitions of Agresso that tumble within this threshold trigger. Which is an alert to the team or
are workflowed to the team for approval or rejection.
Reason
This provides an opportunity to ensure obedience with internal regulations and public
procurement regulations (Decarolis and Giorgiantonio 2015). An increasing spend report is
generated periodically to ensure checks are kept on overall spend with suppliers imminent the
threshold to ensure compliance and early involvement of the team. The CPU keeps a database for
all contracts it procures.
Innovation and cost-effectiveness
Proper market research and the correct use of supplier will achieve external resources,
innovation and cost-effectiveness.
Reason
Binding the innovation has the potential to improve the university’ uniqueness and
competitive advantage (David and David 2016) particularly in a climate of intensifying the
competition in the higher education sector.
Value for money over contract duration
To reduce the sourcing cost and the whole life cost of goods and services it will refer to
use of framework agreements and collaborative arrangements to assure the best value of money
is being achieved. Contract and supplier management through account management by the

ESTIMATING, TENDERING AND PROCUREMENT
vendors, key performance measures, service level agreements, periodic contract reviews, and
transparent issue escalation processes and appoint the university staff members as contract
manager into the requirements from the most out.
Reason
It will ensure the early spotting of failure and signs, avoids complacency and also
provides value for money will be achieved throughout the lifespan of the contract. A service
improvement plan can be developed and agreed for failing the vendors and their performance
monitored more closely.
Through the regular meetings with contracted suppliers, market knowledge, and
information about the new developments, it can be earned to assure the university which will
keep on the cutting edge.
Procurement of Sustainability
Reason
Sustainibility of this procurement which will be embeded further into business as an
usual process.
 Considering the ethical, environmental and social considerations in the procurement
initiation document for the new propositions, such as wage, waste demolition
opportunities, increased recyclability, energy efficiency and other applicable
sustainability elements.
 To incorporate the sustainability criteria as a part of the supplier evaluation process and
in the award of the contract where appropriate.

ESTIMATING, TENDERING AND PROCUREMENT
 A sustainability engagement tool moved out to all third party dealers
 A checklist is developed by the sustainability hub to integrate the sustainability
requirements
 Evidence of incremental growth required in annual Modern Slavery reports (Gold,
Trautrims and Trodd 2015)
 A close working relationship with the sustainability team and their early involvement in
the relevant procurements.
Sharing of services
Reason
This section will provide procurement services to the university (Hawkins 2015). It offers
an opportunity to leverage the combined requirements and spend. reducing the sourcing costs
and pricing can improve the contractual terms for both the organizations,
Therefore the procurement strategy guides road map where we keep aim to develop
further our services and our supplier relationship management strategy (Forkmann 2016), sets
out how we intend to work collaboratively with our suppliers.
This research paper also demonstrate and critically analyse the alternative procurement
strategy for the proposed projects. As far as the concerns of alternative procurement strategy, the
concerned consultancy firm develops some other strategy needs to follow:

ESTIMATING, TENDERING AND PROCUREMENT
Alternative Procurement strategy
The university will need to commit to exercise the following strategies
 Finding the best value and diminishing risk when procuring goods and services.
 Assure that all staff involved in the procurement process will be trained with appropriate
skills for the financial level and strategic impact for their purchases.
 Adopting strategic associations with similar organizations, significant conglomerates and,
the funding bodies of the university.
 Reducing tender and the cost of transaction by interpretation and using suitable easy to
use technology.
 Incorporating the moralities of sustainable procurement into the procurement cycle with
respect to any socio-economic and environmental effects.
Potential benefits of adopting alternative procurement strategies
The following benefits by adopting the alternative procurement strategies are as follows:
 The best value and reducing risk ensures framework agreements for easily accessible
items and mark the high cost as well
 It is providing all relevant procurement contracts, and tenders contain sustainability
specifications. Which will be suitable for procured the product or services.
 Considers the performance of all suppliers and environmental performance and to
encourage them to conduct their operations sensitively.
 Working with the suppliers to reduce the amount of performance standard and work
towards each other success.

ESTIMATING, TENDERING AND PROCUREMENT
 It will get a fundamental life cycle analysis of the products to minimize the adverse
effects on the environment.
 It considers a whole life cost approach to procurement (Safi, Sundquist and Karoumi
2015) and understanding the total cost of ownership of our resources.
 It will promote and progress the sustainibilty of universitie’s objectives by using the
procurement activity.
 Usage of appropriate and easy pattern of technology reduceing the tender and cost of
transaction.
Advanced procurement practice
Kingston University is refered to as public funded university and the annual non pay
recurrent capital expenditure (Lane and Rosewall 2015) amounted to tens of millions of pounds.
Therefore it is comply with the following fundamentals:
In the first instance establishing needs
Implication of the highest professional standards
It delivers the value for money
Compliance with the EU procurement directives
Appropritae governance (Whitton et al 2017)
Added value benefits, depending on this the University’s procurement policies, processes
and system are improved.

ESTIMATING, TENDERING AND PROCUREMENT
This paper refers the key thoughts and ideologies of good and accountable procurement.
The University’s Financial Regulations (Gabbi 2015) directed processes and procedures outlined
in the policy and guide are reinforced.
Following policy in the context of procurement needs to take into account
Kingston University’s policy for the procurement is to,
Enable a leagal compliant approach to the procurement
Facilitate the delivery of value for monetary targets for all the requirements, whiuch needs to
cover the products and services, which are sourced from outside providers
Enables the stakeholders to have an input to the procurement process to ensure that all the new
contracts meet the broad needs of the university.
Deliver added value opportunities and enhance the student experience
Confirm a consistent approach for the procurement of the University and afford skilled guidance
for internal colleagues throughout the obtaining process.
Provide a chance to consolidate contracts (Neprash 2017) to allow more significant leverage in
procurement improved deals and performance suppliers.
Promote the collaborative framework (Sciacchitano 2015) agreements
Regulate the effective implementation of a category management approach to the procurement
Ensure identification and effective management of crucial procurement risks
Ensure the compliance for the financial regulations (Neill et al 2017)

ESTIMATING, TENDERING AND PROCUREMENT
Secure sustainable and effective chains across all the areas of the University’s activities.
The probable impact recognized by the University for its procurement of buildings,
goods, and services which has on the environment and it pursues to mix sustainability,
environmental and social subjects into its procurement events. This policy plans such approach
that will be taken due to ensure that in bringing the greatest value for money, the carbon
footmark of the University is minimised and that assets are found and used sensibly and
professionally with due defense of the local setting within which the University functions.
The university is required to assure enough arguments, will take into consideration to
secure economy, efficiency and effectiveness following the officer for the student terms and
conditions of funding for higher education.
By this policy, it will promote the maximization of value for money, ideally on a whole
life cost basis. Representation of users will require to have an input to determine the criteria and
weights that will establish a measurement of value for money within each contract
The operating cost will remain an important criterion
Quality will usually be accounted for an equal or more significant proportion of the replacement
contracts.
The benefits of all value for money distributed through the procurement which will be identified
in a value for money benefits register
Risk transfer to the contractors is to be considered for each contract and agreement.
Demonstrating value for money

ESTIMATING, TENDERING AND PROCUREMENT
The engagement of all staff in a procurement exercise should aim to obtain best value for
money and it should be demonstrated that reasonable steps must be taken to achieve.
Need establishing
Reflection must be given to better the university resources to its corporate social
responsibilities. It determines the challenge in a following way:
Is it important?
Does an existing or similar product or service exist within the University
Is a more environmental-friendly option available? Once the need has been established
the suitable procurement process should be followed.
Quotation and tendering
Through the use of suitable level of competition between the potential suppliers, the
university needs to demonstrate the value for money. The use of quotations and tendering
procedures serve this purpose and as part of this process. The use of quotation and tendering
procedures serve this purpose and as part of this process.
Identify potential suppliers that will able to supply the requirement in terms of quality, price,
quantity and timescales.
Provide indication of a fair, open, transparent and non-discriminatory method (Heid Larch and
Yotov 2015) for making business with a supplier with in a stipulated time period

ESTIMATING, TENDERING AND PROCUREMENT
A quotation is a modest practice which use normal documentation to investigate the
availability of the suppliers for the required product or service which will recognize the prices,
delivery and the timescale etc.
Whereas a tender is much more comprehensive method which is operated to investigate
the availability of a supplier for the product, services and workers needed and to categorize the
delivery prices. Higher value procurements are matter to the competition as per the EU public
procurement rules.
Framework agreements
The tendering process develops the framework agreement and therefore, it ensures
compliance (Sadiq and Governatori 2015), proper governance and the best value. The framework
can consist of a single supplier or various selected vendors and will set out the terms and
conditions under which specific phrases from the selected vendors. This can be made throughout
the terms and agreements. Having such framework agreements, the university has been
developed the higher education criteria. It can provide a better value for money. In a framework,
the Universities selected frame will be classified as a preferred supplier.
Single supplier framework
Here this framework is recognized with only one provider and with a traditional price and
delivery schedule.
Multi supplier framework

ESTIMATING, TENDERING AND PROCUREMENT
Here this approach has built up with 2 or more structure, it depends on the rules of the
specific context, where the price and terms include within the framework agreement (Luthra et al
2017). That is adequately satisfactory to cover the particular condition.
Procurement types
 To select the supplier the University can use three different routes which will depend on
the spend values
 Offering competitively through the CPU, it will ensure that the Public Contract
Regulations (Chaurey 2015) are observed with.
 It seeks competitive quotes for purchasing a range between £2k and £50k. Buyers can
take it to devolve over the University. It can be done by communicating the suppliers
directly or by the e-Marketplace (Yoo, Kim and Sanders 2015).
Cost levels and procurement routes
Cost thresold
Transaction (£) Minimum required procedures
Under 2,000 One written quotation must be found from the market, and the purchaser
should have the market knowledge to pleased that the quote delivers value
for money.
2,001-10,000 At least two written quotations (received at the same time) must be acquired from
the market
10,001- 50,000 An Invitation to Quote (ITQ) tender document description of the possibility of the
requirement and vital standards should be supplied under KU’s standard terms and

ESTIMATING, TENDERING AND PROCUREMENT
situations to at minimum three dealers. At least three written quotations should be
needed.
50,001-EU
threshold
Procurement Services manage all the tenders over £50,000. If a bond is not
available from a preferred supplier to encounter a requirement, an Invitation of
Tender (ITT) document is required.
Exceeding EU
threshold
Application of tendering procedures.
Implimentation
Best value
The accomplishment of finest value is unified to the procurement strategy.
Assuring that common use of framework preparations are effortlessly available by the
departmental staff consuming automated marketplaces or other means, avoiding repetition of
effort and attainment maximum benefit from the purchasing power (Kobrin and Teller 2015) of
the University.
Ensuring an apparent supervision by a first-class website, to work as accountable for placing
medium value of orders and contracts.
To make the availability by the Finance Division, a variety of appropriate training courses and
certifying that supplementary professional support is available, if necessary.
Building a departmental purchasers network, knowledgeable in specific commodities and
services that will support in the expenditure analysis in order to categorize commodity priorities,

ESTIMATING, TENDERING AND PROCUREMENT
cultivate basic commodity procurement plans, and support University Departments secure
quality, worth for money contracts.
Delivering information of organization to care departments in studying the productivity and
efficacy of their procurement operations.
To identify the long term viable cost to procurement decisions: Financial, environmental, social
and ethical effects in our assessment of value for money and raise awareness of the sustainability
over the University and within the procurement cycle.
Supplier relationship
The university will
Work jointly with the tactical suppliers to certify that the critical supplier to the University is
dedicated to success of each other.
Accomplish the amount of traders by stimulating decent value, recognized contracts and
promising their custom.
Ensuring that the Suppliers meet contracted performance standards a culture and processes is
developed.
Vigorously encouragement of new entrants to a ‘market’ where to locked better value by doing
of latent effort.
Sustainably endorse consciousness of our purposes and join sustainability for essential
commodities within our tendering actions.

ESTIMATING, TENDERING AND PROCUREMENT
Partnership and collaborations
The University will:-
A domestic and regional committee representation, operational parties offer several advantages
to the University of Development, which is related to the active strategic associations with other
key investors.
Responsibility
Heads of department are responsible for efficiently relating the strategy within their parameter,
and in this respect, it will be directed by the expert staff of the University's Procurement
Services.
Technical advices offered by the Procurement Services to the University and its departments
will help to improve management information systems (MIS) (Laudon and Laudon 2015) and
performance signs. It will help to assume such a dimension as it is essential to screen and
manage and upgrade development. It will also offer supply , contracting, and training services
where it is most judicious to do so centrally.
Technology
The University will adopt easy and appropriate electronic technology to reduce tender and
transaction costs. (Hazard, Sclavounis and Stieber 2016).

ESTIMATING, TENDERING AND PROCUREMENT
Assuring the university’s human resources to make knowledgeable decisions
on implementing electronic technology to show options to procurers.
Thus progression and producers refers to the financial guidelines of the university
reinforce this guide. It should be used relative to all the non-pay expenses, whether the recurrent
or capital across the institution and entities (Young, Nagpal and Adams 2016).
Factors influencing the procurement strategy
The selection of an appropriate procurement strategy has been significantly recognized
as a major contributor to project success, but the most appropriate route depends on the goals and
availability of the resources. A range of variables can affect the choice of a procurement
technique. After the development of the primary strategy, the following factors are taken up for
the evaluation of the suitable procurement strategy (Bienhaus and Haddud 2018).
External factors
Clients and their businesses are being influenced by the potential impact of economic,
commercial, technical and legal factors.
Cost issue
The client should undertake the evaluation of the price certainty while the tenders are
received. It will impact the cost at the time of tender.
Timing
Most of the projects are necessary to completed within a stipulated time frame.the
progress of the project are being influenced by the planning approvals.

ESTIMATING, TENDERING AND PROCUREMENT
Risk
The uniqueness of building projects means that concerned clients face the degree of risk
(Cagliano, Grimaldi and Rafele 2015).
Traditional procurement
This scheme is the most commonly used process of procurement and it is suitable for all
the clients as well as complex projects whose main objective is its functionality. This strategy
decreases the risk options for the clients. However, the case where the project is swift, the risk
will rise. Involving two stages approach increases the risk of overall price growth (Atmo et al
2017).
Design and Build procurement
This scheme offers the clients a single point of contract. Here the client commits to both
the construction cost and design cost. It is more efficient compared to the traditional approach. It
stands very essential to design liability insurance (Chen, Li and Zou 2016) in order to cover the
risk while the risk is shifted to the contractor. Changes can be very costly because it affects the
entire design and build treaty rather than just cost (Naoum and Egbu 2015).
This methods of procurement involves the contractor being responsible for design as weel
as project. It will be appropriate for all clients, but who is inexperienced those need to maintain a
distance from the project, quick track where cost is certainly desired.
Management procurement

ESTIMATING, TENDERING AND PROCUREMENT
These remains widely appropriate for a fast track project, complex buildings and for
developing the context. However it is less fit for the inexperienced clients. Actually here the cost
certainty is desired, so the clients want to pass risk to the contractor.
Here, the client hires designers and a contractor (management contractor) distinctively
and offers wages to the contractor for handling the project works. The organization users will not
carry the project work; it will give provisions of independence for the management levels. It will
strengthen a consultancy relationship with the client. Wage payment is made to the organization
employees on the basis of work cost and in addition to the said fees. This mechanism involves
success which depends on the contractors team (de Araújo et al 2017).
Conclusion
After evaluating all the mechanism, this report demonstrate sustainable procurement
approach and critically analyses the alternative procurement strategies for the proposed projects.
This paper surely show the path how the procurement strategy needs to adopt and it would help
to build a new building with several alternative routes. Therefore as a consultant I choose the
management procurement as this approach is a fast track project, here the managers manages the
process as per the simple consultancy basis, so a higher consultancy relationship will build up. It
will give a greater measure of control; the main concerning matter in this approach is that the
client wants to permit the threat to the contractor. Thus it is the best procurement approach that
needs to be adopted by the Kingston University.

ESTIMATING, TENDERING AND PROCUREMENT
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