What Is a PQQ Tender in Construction?
PQQ stands for “pre-qualification questionnaire”, and a PPQ is used to ascertain the suitability of a contractor or supplier. Suppliers will answer a list of questions based on the requirements of a company, and the company then uses this information to decide whether or not it will engage that supplier.
When a company is confident that the PQQ answers align with its needs, it will create a shortlist of suppliers and enter into the next phase. The PQQ is designed to save time and resources when qualifying suitable candidates by addressing the most relevant questions, but what is a PQQ tender specifically?
What Is a PQQ Tender?
A PQQ is used in the stage of procurement when a company is identifying suitable suppliers, and it helps the company to determine who meets the requirements of that role. On completion of the PQQ, it is at this point a supplier may be invited to tender. The two stages are synonymous with one another, as the PQQ will demonstrate a supplier’s suitability on the basis of which a company may invite tenders. It is for this reason that the information-gathering stage of the PQQ is so important, as it is often the first point of consideration for suppliers landing the opportunity.
From here, companies will select the suppliers that they want to enter into the negotiation phase with. Having a robust risk management process in place will improve a supplier’s chance of being shortlisted, as there will be opportunities to describe the details of those processes. This can give suppliers an advantage over competitors with lesser risk management protocols.
What Is a PQQ Tender in the Construction Industry?
The PAS91 is a government resource that provides standardised wording for a PQQ tender in construction for public companies. This was to ensure key questions are included and make the data gathered as accurate and transparent as possible. A PQQ tender in construction covers criteria such as insurance details, quality assurance policies and health and safety policies, processes and performance information. This provides construction companies with an insight into the individual supplier and can act as an advertisement of the services included.
PQQ tenders in construction allow companies in the sector to measure a bid against these requirements. PQQs help to create a shortlist of companies based on specific criteria that is relevant not only to the industry but to that company’s particular requirements. Having such specific questions means information is not left open to interpretation and should be presented in a concise way.
How Does a PQQ Fit with the Common Assessment Standard?
The Common Assessment Standard is the new industry gold standard in prequalification assessment compliance. As the PQQ tender process can prove repetitive for businesses, streamlining it with a more efficient industry standard helps reduce that workload. The Common Assessment Standard can help regulate standards across the industry and helps companies demonstrate compliance when bidding on projects.
Contractors who complete the Common Assessment and gain accreditation through CHAS can prequalify for business opportunities, as CHAS clients have access to resources that promote the compliance of these contractors. CHAS accreditation can act as supporting evidence for compliance, as PAS91 recognises preexisting certifications. In this way, CHAS can support PQQ completion and help contractors achieve compliance.
The main areas assessed in PAS91 are:
- Health and safety
- Environmental impact and sustainability
- Quality management
- Financial and business standing
- Equal opportunities and diversity.
There are additional modules that include:
- Building Information Modeling (BIM)
- Modern slavery
- Anti-bribery and corruption.
Having access to a pool of accredited contractors can reduce the risk for clients, as they can confidently find and hire contractors who they know have achieved a high standard of risk management compliance. This, in turn, speeds up the procurement process by reducing the chance of running into compliance issues further down the line. It will speed up the PQQ tendering process too. saving the client time in creating questionnaires because there is a more standard template for what should be included.
For access to resources that will support you in the PQQ tendering process, join CHAS today and demonstrate your risk management compliance. Join as a CHAS client to gain access to supply chain management tools and pre-accredited contractors.