TENDERING & CONTRACTS MANUAL

TENDERING & CONTRACTS MANUAL

VERSION DATE AMENDMENT DESCRIPTION

Version No. 6

Version No. 5

Version No. 4

Version No. 3

Version No. 2

Version No. 1 Original Issue

Draft May 2012 Issue for Comment

The Buloke Shire Council has adopted this Manual and the Appendix thereto to ensure that its Tendering and Contract Procedures are equitable, consistent and transparent. This Manual must be used in all circumstances when Council seeks to procure works, goods and/or services by either Quotation or Public Tender.


INDEX

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INDEX

SECTION I GENERAL Page 3

SECTION II PRE-TENDER PHASE Page 8

SECTION III DOCUMENTATION FOR TRADITIONAL TENDER PROCESS

Page 14

SECTION IV DOCUMENTATION FOR EXPRESSION OF INTEREST(EoI) PROCESS

Page 25

SECTION V TENDER PHASE Page 30

SECTION VI CONTRACT PHASE Page 47

A Table of Contents is provided on the first page of each SECTION.


SECTION I – GENERAL

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SECTION I GENERAL

Table of Contents

1 INTRODUCTION ........................................................................................................... 4

2 REVIEW OF MANUAL ................................................................................................... 4

3 COMPLAINTS ABOUT TENDERING PROCESS ....................................................... 5

4 DEFINITIONS ................................................................................................................. 5

5 PROCUREMENT BY QUOTATION PROCESS .......................................................... 5

6 PUBLIC TENDER PROCUREMENT AND RISKS ..................................................... 7

7 LAYOUT OF MANUAL – STEP APPROACH ............................................................... 7



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SECTION I GENERAL

1 INTRODUCTION

This Manual details the principles and processes which the Buloke Shire Council will use to implement its Policy for Tendering and Contracts (hereinafter called “the Policy”). The Policy was endorsed by Council on <insert Date - day month & year>.

The Manual provides a description of the tender/contract process, detailed procedures for important activities and provides (in the Appendix to the Manual) template documents for use in tender and contract management. Today’s world demands that the contractual activities of local government are consistent, transparent, accountable and equitable and it is necessary to ensure both the contractual integrity and the probity of Council’s contractual activities. Accordingly this Manual should be used in all circumstances where Council intends to procure goods, services or works by Contract.

The procedures detailed in this Manual are not “static”. The Manual and associated Procedures must be subject to an ongoing regular review process to ensure continuing and contemporaneous adequacy, fairness and relevance. The probity of Council’s contractual activities is able to be demonstrated by maintaining adequate, equitable, consistent and transparent procedures and adhering to these procedures in all tender/contractual processes. Infrequent users of this manual are advised to inquire with the Manager, Assets and Infrastructure to ensure that they are referring to the latest issue.

The Manual details the specific procedures required by Council to supplement other documents generally available, which are to be referred to when implementing Council’s Policy. These include but are not restricted to:

Victorian Local Government Act 1989;

Victorian Government Code of Tendering;

Australian Standard Code of Tendering (AS 4120 – 1994);

Victorian Government “A Guide to Implementing Competitively Neutral Pricing Principles”;

Freedom of Information Act 1982; and

Buloke Shire Council – Procurement Policy (FM 1001) No. 124

2 REVIEW OF MANUAL

This Manual together with the Appendix to the Manual must be reviewed triennially or at such lesser time-frame as directed by the Council or the Chief Executive Officer.

The review will be undertaken by the Officer nominated by the Chief Executive Officer who shall report the outcome of the review and his/her recommendations (if any) to the Chief Executive Officer or, if the review is directed by the Council, to the Council.

The Officer nominated by the Chief Executive Officer shall ensure that the manual is promptly amended to include any agreed changes.



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3 COMPLAINTS ABOUT TENDERING PROCESS

Council will deal promptly with any complaints about its tendering process. Each complaint shall be recorded in writing and the complainant given an opportunity to discuss his or her complaint with the Chief Executive Officer or a delegated Senior Officer.

A complaint and the action taken in respect to resolution of same shall be retained in the Records File for the Tender Phase of the particular procurement process and is the responsibility of the Officer delegated to resolve the complaint.

4 DEFINITIONS

Throughout this Manual reference is made to the positions of “Senior Procurement Officer”, Responsible Officer” and “Contract Superintendent” which are defined hereafter.

“Senior Procurement Officer” where herein referred is the person from time to time appointed to the position by Council.

“Responsible Officer” is the Manager who has responsibility within Council for the delivery of particular works, goods and/or services.

“Contract Superintendent” is the person named in the tender/contract documents (General Conditions of Contract or Annexure thereto) who shall have the appropriate skills and experience to exercise and fulfil the role of superintendent.

5 PROCUREMENT BY QUOTATION PROCESS

The Buloke Shire Council Procurement Policy states the parameters that determine the use of either quotations or public tender for the procurement of goods, services and/or works and further defines Minimum Spend Competition Thresholds and the process applicable to each.

The relevant extract from the Policy is included hereafter –

2.3.2 Minimum Spend Competition Thresholds

2.3.2.1 Tenders

Purchase of all goods, services and works for which the estimated expenditure exceeds $100,000 must be undertaken by public tender.

However, should the CEO consider that the nature of the requirement and the characteristics of the market are such that the public tender process would lead to a better result for the Shire, public tenders may be called for purchase of goods, services and works for which the estimated expenditure is $100,000 or less.

2.3.2.2 Quotations

Purchase of goods, services and works having a total valuation of $100,000 or less may be undertaken using the Procurement by quotation method as described below:

Items with a value up to $5,000. A minimum of one telephone or email quotation must be obtained and the details recorded before placing an order (similar details must be recorded where more than one supplier has quoted).

Quotations returned by the nominated closing date must be evaluated and a recommendation made in favour of the supplier offering the best value weighted against the costs necessary for the



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optimum result for the Council and local community as detailed in Clause 2.3.1 . This is to include application of the applicable Clause 3.6.1 Purchasing Preference.

Items with a value $5,001 to $10,000.

A minimum of three telephone or email quotations must be sought.

The order must be placed with the supplier offering the lowest price for acceptable goods or services.

Details of the suppliers contacted and their quotations must be recorded on at least a simple spreadsheet.

Quotations returned by the nominated closing date must be evaluated and a recommendation made in favour of the supplier offering the best value weighted against the costs necessary for the optimum result for the Council and local community as detailed in Clause 2.3.1 . This is to include application of the applicable Clause 3.6.1 Purchasing Preference.


A minimum of 3 telephone or email quotations must be sought.


The acceptable quotation must be confirmed by the supplier on company letterhead and the order placed with that firm.

Details of the suppliers contacted and their quotations must be recorded on at least a simple spreadsheet.


A minimum of 3 written or email quotations must be sought by the direct issue of a written Request for Quotation; advertising is not required.


The original supplier’s quotations must be maintained in the contract file.

The above extract is current only for the version of the Buloke Shire Procurement Policy Manual detailed in the introduction to this Manual. The Procurement Policy will be reviewed annually. Accordingly it is incumbent on all persons using this Tendering and Contract Procedures Manual to ensure that they refer to the current version of the Procurement Policy.

An example “Request for Quotation” document forms part of the Appendix to this Manual.

The Manager whose department is responsible for providing or undertaking the required goods, services or works will be the Responsible Officer and shall initiate the quotation process. The Manager may delegate responsibility for a particular procurement (by quotation) to an officer from his/her department. The Responsible Officer (or delegated officer) shall ensure that the information provided to all suppliers and/or providers clearly and concisely specifies the required quality, safety and delivery timeframe outcomes for the procurement.



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The procurement of goods, works and/or services–

where suppliers are not readily identifiable; and/or

where the complexity of the procurement involves detailed plans and specifications; and/or

where the Chief Executive Officer so directs; or

where the estimated value of the procurement exceeds $100,000

– shall only be undertaken by a formal public tender process.

6 PUBLIC TENDER PROCUREMENT AND RISKS

For a municipality the process of procurement by a public tendering process put in very simply terms involves a public invitation to suppliers/providers to submit a tender (an offer) to supply, provide and/or undertake respectively defined goods, services and/or works, consideration of tender submissions, acceptance of a tender, the award of a contract, the performance of the contract, supervision thereof and payment to the contractor.

Public funds are the sole means of payment for municipal procurement activities. There are significant risks involved in tendering and contractual process but declining staff numbers, ownership costs of plant and equipment, the need to supplement base workforce levels and specialist skill requirements continues to drive the need to deliver services, supply goods and undertake works by contractual procurement arrangements.

The significant risk areas of the tendering and contract process are those associated with –

Compliance with the provisions of the Local Government Act 1989;

Possible exposures emanating from probity matters pertaining to the tendering process; and

Contractual risks arising during the administration/management of the contract.

7 LAYOUT OF MANUAL – STEP APPROACH

In order to address and minimise the risks outlined in SECTION I Clause 6 above this manual adopts a comprehensive step approach that addresses the distinct phases and arrangements of the total process in the chronological order they would normally occur as follows –

Pre-Tender Phase

Documentation for Traditional Tender Process

Documentation for Expression of Interest (EoI) Tender Process

Tender Phase; and

Contract Phase.

Each phase is divided into activities and respective associated tasks and these are detailed and described hereafter.


SECTION II – PRE-TENDER PHASE

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SECTION II PRE-TENDER PHASE

Table of Contents

1 GENERAL ........................................................................................................................ 9

2 BUDGET ESTIMATE, SCOPE AND BUDGET PROVISION ..................................... 9

2.1 BUDGET ESTIMATE ......................................................................................................... 9

2.2 SCOPE AND DESIGN ........................................................................................................ 9

2.3 DRAWINGS ...................................................................................................................... 9

2.4 BUDGET PROVISION ..................................................................................................... 10

2.5 PREPARE ESTIMATE AND REVIEW BUDGET .................................................................. 10

2.6 FINALISE PROCUREMENT SCOPING DOCUMENTATION ............................................... 10

3 TENDER PROCESS ARRANGEMENTS ..................................................................... 11

3.1 TRADITIONAL TENDER PROCESS ................................................................................. 11

3.2 EXPRESSION OF INTEREST (EOI) TENDER PROCESS ................................................... 11

3.3 GENERAL CONSIDERATIONS IN DECIDING WHICH TENDER PROCESS TO ADOPT ....... 11

3.4 TIMING CONSIDERATIONS IN DECIDING WHICH TENDER PROCESS TO ADOPT .......... 11

4 CONTRACT REGISTER ............................................................................................... 12

5 RECORDS MANAGEMENT ........................................................................................ 12

6 ANNUAL PROGRAM FOR PROCUREMENT BY PUBLIC TENDER/CONTRACT PROCESS ...................................................................................... 13

7 TYPE OF CONTRACT .................................................................................................. 13



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SECTION II PRE-TENDER PHASE

1 GENERAL

Attention to adequately addressing the pre-tender phase of the procurement process is absolutely vital to achievement of a successful, functional and value for money outcome. The value of proper risk assessment and attention to functionality requirements and appropriate planning, design and review during this phase is usually and unfortunately only appreciated when Council has to deal with contractual disputes and the inevitable attendant additional costs of arbitration, compensation, rectification and remediation.

2 BUDGET ESTIMATE, SCOPE AND BUDGET PROVISION

2.1 BUDGET ESTIMATE

A budget estimate for any procurement must be prepared by the Responsible Officer. In preparing a budget estimate especially for procurement of works a generous contingency provision should be included if a final design is not available.

Record and document details of the budget estimate.

2.2 SCOPE AND DESIGN

Undertake a due diligence analysis to identify risks, establish the functionality and risk attenuation requirements together with quality standards, appropriate quantification to measure value for money and delivery time-frames for the particular procurement.

Design and/or scope the procurement and prepare documentation as either –

a draft specification for goods or works procurement; or

a draft project brief for services procurement

– including provisions to address the outcomes of the due diligence analysis.

2.3 DRAWINGS

Drawings are the outcome of the design and scoping process and must always form part of the tender and contract documents for procurement of works and often for procurement of services. Maps and charts are the other documents used to reflect and depict the design and/or scope requirements of a particular procurement.

Drawings and maps should be uncluttered, clear and legible and in the case of civil works or architectural works procurements should be prepared in electronic format and drafted in accordance with the most current editions of –

Australian Standard AS 1100.101 – 1992 “Technical Drawing – General Principles”;

Australian Standard AS 1100.401 – 1984 “Technical Drawing – Engineering Survey and Engineering Survey Design Drawing”; and

ISO 5455: 1979 “Technical Drawings – Scales” and/or

The current drafting standard(s) adopted by the Royal Australian Institute of Architects.



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2.4 BUDGET PROVISION

Ensure that provision has been made in Council’s budget for the procurement or alternatively that appropriate budget arrangements can be made to fund the procurement.

2.5 PREPARE ESTIMATE AND REVIEW BUDGET

In the case of procurement of civil works use the scope and/or design and/or the drawings to determine and accurately quantify materials requirements and prepare a cost estimate for the procurement.

In the case of procurement of architectural works undertake a quantity survey or preferably engage the services of a quantity surveyor to prepare a cost estimate for the procurement.

Review the cost estimate against available budget provision and if necessary adjust –

budget to reflect estimate of costs; or

adjust scope and/or design to reflect available budget; and/or

amend functionality outcome

– to reflect available budget.

Any adjustment decision should have regard to the adage that “functionality should never be compromised” as this action will inevitably result in either –

unacceptable risk issues;

reduced delivery outcomes in terms of public/political expectations;

reduced levels of serviceability (quality is compromised);

reduced serviceable life;

increased whole of life costs; or

a combination of any or all of the aforesaid.

The preferred approach is to maintain functionality and undertake a staged procurement or to defer the procurement until appropriate budget funds are available.

2.6 FINALISE PROCUREMENT SCOPING DOCUMENTATION

Finalise all procurement scoping documentation including –

specification for provision of works or supply of goods;

project brief for provision of services; and

associated drawings, maps, charts and appendices

– to reflect the outcomes of review of estimated cost against budget provision.

In complex procurement situations consideration should be given to appointment of a specialist panel to review scoping documentation.

If a panel is appointed for this purpose the outcome of panel considerations must be documented.

Prepare and document detailed final estimated cost of the procurement.



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3 TENDER PROCESS ARRANGEMENTS

The tendering process adopted for a particular procurement may be undertaken using either the Traditional Tender Process or the Expression of Interest (EoI) Tender Process. The broad arrangements for each process are described hereafter.

3.1 TRADITIONAL TENDER PROCESS

The Traditional Tender Process broadly comprises the following:

a public invitation to tender;

consideration of tenders against evaluation criteria including price; and

the award of a contract.

3.2 EXPRESSION OF INTEREST (EOI) TENDER PROCESS

The EoI Tender Process broadly comprises the following:

a public invitation to submit an EoI in tendering for the procurement;

evaluation of EoI submissions against all evaluation criteria except price;

short listing of submissions;

invitation to tender invited only from short-listed submitters;

evaluation of tenders on the basis of price tendered, local content; and

the award of a contract.

3.3 GENERAL CONSIDERATIONS IN DECIDING WHICH TENDER PROCESS TO ADOPT

In traditional tendering arrangements evaluation criteria are developed (and approved by Council) specific to the particular procurement. Additionally, when tendering for procurement of works particular consideration may also be given to requiring tenderers to be pre-qualified against a recognised Federal or State pre-qualification system. In these circumstances it is necessary to ensure that the pre-qualification criteria of these systems satisfy Council’s specific procurement requirements.

The EoI arrangement has particular merit in tendering for procurement of services because it allows the focus of evaluation of submissions, especially in circumstances where large numbers of submissions are anticipated, to be on qualitative criteria without the distraction of price considerations.

The procedures applicable for these arrangements are detailed in this manual.

3.4 TIMING CONSIDERATIONS IN DECIDING WHICH TENDER PROCESS TO ADOPT

Determination of the tendering period must be decided having regard to the nature, scope and complexity of the particular procurement.

The Senior Procurement Officer, after liaison with the Responsible Officer, will determine the time period to be allowed from the first date of publication of an invitation to tender (or submit an EoI).

Unless agreed by the Chief Executive Officer the tendering period must not be less than three (3) calendar weeks.

It is important to understand that each of the aforementioned Tender Processes require different time spans from date of public invitation to the date of award of a Contract. To assist in this understanding elapsed time considerations are discussed hereafter.



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The following Table demonstrates for a Traditional Tendering Process the time elapsed from date of public invitation to submit a Tender to the award of a contract –

Traditional Tender Process Step Minimum Elapsed Time

Public invitation to close of tender submissions. 3 weeks Evaluation of Tender submissions. 3 weeks Award of contract 2 weeks Minimum Elapsed Time to Award of Contract if using Traditional Tendering Process

8 weeks

If an EoI Tender Process is considered it must be understood that a considerable passage of time will elapse from the date of public invitation to submit an EoI to the award of a contract. The following Table demonstrates the minimum elapsed time that may be anticipated from date of public invitation to submit an EoI to the award of a contract–

EoI Tender Process Step Minimum Elapsed Time

Public invitation to close of EoI submissions. 3 weeks Evaluation of submissions. 4 weeks Invitation to tender to close of tenders. 3 weeks Evaluation of tenders. 2 weeks Award of contract 2 weeks Minimum Elapsed Time to Award of Contract if using EoI Tendering Process

14 weeks

4 CONTRACT REGISTER

The Policy requires that an appropriate Contract Register is maintained by Council. The Contract Register is held in electronic format on Q drive in “read only” format and an example document is included in the Appendix to this Manual.

The Responsible Officer must communicate the intention to proceed with a procurement under a tendering/contract process to the Senior Procurement Officer who will allocate a unique Contract Number and commence the Contract Register record for the particular procurement. The Contract Number must be included in all correspondences and other documentation in all contractual matters, including tendering, associated with the particular procurement.

The Senior Procurement Officer is responsible to maintain the currency and accuracy of the Contract Register. The Responsible Officer is responsible to communicate the details marked “provided by responsible officer” on the Contract Register example document to the Senior Procurement Officer who will upon receipt of same populate and update the Contract Register. To ensure that the Contract Register is current the Responsible Officer is required to provide updating details to the Senior Procurement Officer within 3 working days of occurrence.

5 RECORDS MANAGEMENT

Council’s Records Management System protocols require that separate files be maintained for Tender and Contract Phases of any procurement.



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The Responsible Officer must communicate the intention to proceed with a procurement under a tendering/contract process to Council’s Records Management Co-ordinator who will allocate both a Number for the Records File for the Tender Phase and a separate Number for the Records File for the Contract Phase of the particular procurement.

The Tender Phase File Number must be included on all correspondences and other documentation which forms part of the Tender Phase for a particular procurement. The Tender Phase concludes when a Contract is awarded.

The Contract Phase File Number must be included on all correspondences and other documentation which forms part of the Contract Phase. The Contract Phase begins when a Contract is awarded.

A copy of the letter of award of a contract must be held on both the Tender Phase File and the Contract Phase File for a particular procurement.

6 ANNUAL PROGRAM FOR PROCUREMENT BY PUBLIC TENDER/CONTRACT PROCESS

The Senior Procurement Officer in consultation with Responsible Officers will prepare a draft “Annual Program for Procurement of Goods, Works and Services by Public Tender/Contract Process” for consideration as part of Council’s Budget considerations.

No later than one month after adoption of the Budget for any financial year the Senior Procurement Officer in consultation with Responsible Officers prepare the “Annual Program for Procurement of Goods, Works and Services by Public Tender/Contract Process”.

The Annual Program will be reassessed within one month of the half yearly Budget Review and amended to reflect the outcomes of the Review.

The Senior Procurement Officer will regularly review, monitor and report progress of the program and may recommend amendment to the Program.

The format for the “Annual Program for Procurement of Goods, Works and Services by Public Tender/Contract Process” is provided in the Appendix to this Manual.

7 TYPE OF CONTRACT

The Type of Contract adopted for a procurement contract will be determined by the Senior Procurement in consultation with the Responsible Officer and is largely dictated by the nature of the particular procurement and may be either –

lump sum (and may or may not include Provisional Items);

schedule of rates; or

a combination of lump sum and schedule of rates

– and may include provision for rise and fall of prices.


SECTION III – DOCUMENTATION FOR TRADITIONAL TENDER PROCESS

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SECTION III DOCUMENTATION FOR TRADITIONAL TENDER PROCES

Table of Contents

1 TENDER DOCUMENTS .............................................................................................. 15

2 INVITATION TO TENDER ........................................................................................ 15

3 CONDITIONS OF TENDERING ................................................................................ 17

4 EVALUATION METHOD AND EVALUATION CRITERIA ................................... 17

5 FORM OF TENDER...................................................................................................... 18

6 TENDER SCHEDULES ................................................................................................ 18

7 CONTRACT DEED ....................................................................................................... 22

8 GENERAL CONDITIONS OF CONTRACT AND ANNEXURES ........................... 22

9 CONTRACTUAL TIME-FRAMES ............................................................................... 22

10 LIQUIDATED DAMAGES ............................................................................................ 23

11 SPECIFICATION ........................................................................................................... 23

12 DRAWINGS, MAPS AND/OR CHARTS ...................................................................... 23



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SECTION III DOCUMENTATION FOR TRADITIONAL TENDER PROCESS

1 TENDER DOCUMENTS

The Tender Documents for a Traditional Arrangement (refer SECTION II sub-clause 3.1 herein) must comprise the following –

invitation to tender;

Conditions of Tendering;

evaluation method and evaluation criteria;

form of tender;

tender schedules;

contract deed of agreement

general conditions of contract;

annexure to general conditions of contract;

specification (or project brief) including appendices; and

drawings, maps and/or charts

– which are discussed hereafter.

In some circumstances, particularly procurement of works, integrated Tender Document suites are available and in common use. Council commonly uses the suite of Tender Documentation for Road and Bridge Works prepared by Vic Roads. This documentation has stood the test of time and importantly the road building industry is very familiar with these documents. Council will continue the use of Vic Roads Tender Documents for Road and Bridgeworks.

Council also has access to the suite of Tender Documents prepared by Maddocks Solicitors for use by Local Governments for the procurement of services, goods and works. The Royal Australian Institute of Architects also produces a number of suites of Tender Documents which are often used by Local Governments for procurement of works (Buildings).

The use of these Tender Documents where appropriate is encouraged and will be decided by the Senior Procurement Officer in Consultation with the Responsible Officer.

Simply using one or another of these document suites does not relieve the Senior Procurement Officer or Responsible Officers of their responsibility to understand how the documents operate and to have and apply a working knowledge of the Council’s policy and procedural framework for tendering and contracts. Reading this Manual and the Appendix thereto will assist in this understanding.

The Senior Procurement Officer must ensure that a copy of the Tender Documents for any procurement is held on the Tender Phase File for that particular procurement.

2 INVITATION TO TENDER

(a) General

The Invitation to Tender must comprise –



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a formal invitation statement which describes the works, goods or services Council is seeking to procure;

a statement describing the type of contract adopted;

a statement indicating whether or not a pre-tender explanation meeting will be conducted for intending tenderers and advising the venue, time and date of such meeting;

a statement of requirements for the lodgement of tenders which also advises the location of Council’s Tender Box and the date and time at which tenders close;

a statement advising the Council Officer to whom any enquiries are to be directed and the officer’s contact details; and

advice of any fee for Tender Documents and associated details including whether or not fees are refundable.

The Invitation to Tender documents for Lump Sum and Schedule of Rates Contracts are included in the Appendix to this Manual.

(b) Procedural Matters

To provide clarity, ensure consistency, avoid ambiguities and minimise potential for disputes it is important to ensure that the following matters are addressed –

The description of the works, goods or services included in the invitation statement must be brief, accurate and concise and the same description must be used throughout the Tender Documents wherever a brief description is required.

The statement describing the type of contract adopted must be used throughout the Tender Documents wherever it is necessary to describe the type of contract.

The decision to conduct a pre-tender meeting is largely determined by the scope and nature of a particular procurement. Pre-tender meetings for intending tenderers have applicability in complex procurements or procurements which are unusual and out of the ordinary. If a pre-tender meeting is conducted consideration should be given to making attendance a mandatory pre-qualification for any tender and if adopted this information must be detailed in the Conditions of Tendering. The meeting must be appropriately scheduled with due regard to the extent of the tender period and the time reasonably available to tenderers to prepare a tender. If a pre-tender meeting is conducted it must be accurately minuted. The minutes of the meeting and outcomes emanating from the meeting must be documented and retained in the Tender Phase File and must also be advised to attendees at the meeting and all tenderers.

Ensure that the details provided in the statement of requirements for lodgement and close of tenders are consistently used where required in other parts of the Tender Documents.

All enquiries and queries relating to the tender documents whether verbal or written must be directed to the Officer nominated in the Invitation to Tender.

Document fees are sometimes charged for provision of Tender Documents as a mechanism to recover the costs of document preparation. A decision to apply a document fee for a particular procurement tender and the reasons should be documented and retained in the Tender Phase File. The fee and matters pertaining to the fee must be clearly detailed in the Invitation to Tender.



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3 CONDITIONS OF TENDERING

The Conditions of Tendering must be incorporated in the Tender Documents.

The purpose of including Conditions of Tendering in Tender Documents is to ensure that prospective tenderers are fully informed of the following matters –

The Nature of the Contract;

Interpretation of terms;

Particulars of the Tender Documents – ownership of documents, inspection of documents and document fees (if any) and Tender Schedules included in the Tender Document including advice as to those schedules that will be incorporated into the Contract and/or those Schedules used for evaluation purposes only;

Communications to Tenderers, contact with Council Officers and canvassing Councillors.

In-house bid provisions;

Tenderer to Inform Itself;

Conforming Tender Contents provisions;

Non-conforming and Alternate Tender provisions;

Conflict of Conditions;

Withdrawal of Tenders;

Opening of Tenders;

Disclosure of Tender Information;

Evaluation of Tenders – general provisions, occupational health and safety, evaluation considerations for local content, when In-house Bid is received, methodology lowest conforming tender & weighted attribute method.

Acceptance of Tenders provisions;

Public Statements by tenderers;

Insurance provisions;

Collusive Tendering provisions; and

Goods & Services Tax.

A Conditions of Tendering document incorporating the above matters is included in the Appendix to this Manual.

If using suites of Tender Documents from other sources it is important to ensure that they contain Conditions of Tendering that adequately reflect the above matters.

4 EVALUATION METHOD AND EVALUATION CRITERIA

The Evaluation Method and Evaluation Criteria must be advised to intending tenderers.

The method of Tender Evaluation shall be determined by the Senior Procurement Officer in consultation with the Responsible Officer and may be either –

The Weighted Attribute Method; or

The Lowest Conforming Tender Method.



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The Criteria against which tender submissions will be evaluated must be advised to intending tenderers. If using the Weighted Attribute Method of evaluation the attribute weighting factor (or criterion weightings) must also be advised to intending tenderers.

Evaluation Method and Evaluation Criteria are usually advised via the Conditions of Tendering if this is not the case the document Evaluation of Tenders (included in the Appendix to this Manual) must be used.

5 FORM OF TENDER

The Form of Tender for a particular contract is the principal formal document required to be submitted by the tenderer as part of its tender submission and must be included in the Tender Documents. The Form of Tender must also evidence the Type of Contract adopted (refer SECTION II Clause 7 herein).

The Form of Tender is the tenderers statement of offer to undertake the works or services or to supply goods specified in the Tender Documents for the Contract Lump Sum (or Contract Schedule of Rates) and establishes the means by which the Contract Value is derived.

Form of Tender documents for Lump Sum and Schedule of Rates Contracts are included in the Appendix to this Manual.

6 TENDER SCHEDULES

Tender Schedules are documents that are required to be completed by the tenderer and submitted as part of the tender submission. The extent and scope of Tender Schedules that may be required for a particular procurement is largely dependent on the nature and complexity of that procurement and should be determined having regard to an assessment of the contractual risks pertaining to that specific procurement. The assessment of contractual risks must be determined by the Senior Procurement Officer in consultation with the Responsible Officer.

Having regard to the foregoing the following suite of Tender Schedules is provided in the Appendix to this Manual for inclusion in Tender Documents as deemed appropriate –

Schedule 1 - Schedule of Prices

The schedule of prices is a summary of the prices which comprise identifiable and quantifiable components of a tender and is usually a summary of the more detailed pricings derived from Schedule 3 below. A Schedule of Prices has particular applicability in Tender Documents for procurement of works. Adaptations are often used in Tender Documents for procurement of services and occasionally goods. In the Contract Phase of Procurement this schedule is often used as the basis for processing Contractor payment claims. The Schedule should always form part of the Contract Documents.

Schedule 2 - Rates for Variation Purposes

This schedule has particular applicability in Tender Documents for procurement of works. In the Contract Phase of Procurement this schedule is often used as the basis for pricing variations to a contract. The Schedule should always form part of the Contract Documents.



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Schedule 3 - Schedule of Quantities and Prices

Schedule 3 is a detailed schedule of quantified and priced items that comprise identified components of a tender. The schedule has particular applicability in Tender Documents for procurement of works and may be used in tenders for procurement of services. In the Contract Phase of Procurement this schedule is often used as the basis for processing Contractor payment claims. The Schedule should always form part of the Contract Documents.

Schedule 4 - Day Work Rates – Plant & Equipment

This schedule has particular applicability in Tender Documents for procurement of works. The schedule establishes the rates for the tenderers plant and equipment for use in the calculation and assessment of variations to a contract. The Schedule should always form part of the Contract Documents.

Schedule 5 - Day Work Rates – Personnel

This schedule has particular applicability in Tender Documents for procurement of works. The schedule establishes rates for the tenderers personnel, staff and labour for use in the calculation and assessment of variations to a contract. The Schedule should always form part of the Contract Documents.

Schedule 6 - Delay Costs

This schedule has particular applicability in Tender Documents for procurement of works and in some instances may be used in Tender Documents for procurement of services. Use of this schedule should only be contemplated if a contractual risk assessment points to its necessity. The Schedule if included in the Tender Documents should always form part of the Contract Documents.

Schedule 7 - Statement of Conformance

This schedule or adaptations thereof requires a tenderer to state whether or not his tender is a conforming tender and has applicability to and should be utilised in Tender Documents for all procurements. The Schedule should always form part of the Contract Documents.

Schedule 8 - Receipt of Addenda

This schedule or adaptations thereof requires a tenderer to acknowledge receipt of all Addenda to Tender Documents that the tenderer has received and upon which its tender is based. The schedule has applicability to and should be utilised in for all procurements. The Schedule should always form part of the Contract Documents.

Schedule 9 - Details of Current and Previous Work

This schedule or adaptations thereof provides an opportunity and requires a tenderer to submit details of current and previous work and has applicability to and should be utilised in Tender Documents for all procurements. The schedule is used for tender evaluation purposes in assessment of capability, experience and performance of a tenderer and would not normally form a part of the Contract Documents.



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Schedule 10 - Tender Program

The purpose of this schedule is to ensure that tenderers provide a time frame-work for undertaking the various elements/aspects/phases/milestones of work or services comprising a specific procurement. This schedule or adaptations thereof must be included in Tender Documents for procurement of works or services.

The schedule is infrequently used in Tender Documents for procurement of goods. In goods procurements delivery outcomes are usually a part of the General Conditions of Contract where either a prescribed delivery date is included or alternatively provision is made for a tenderer nominated delivery date as part of a specifically designed tender schedule. An example of a specifically designed tender schedule is included in the Appendix to this manual.

Schedule 11 - Sub-contract Works

This schedule has applicability in Tender Documents for procurement of either works or services. It provides for tenderers to advise the sub-contractors they will engage to undertake various elements of a particular procurement. In procurements for services this will mean specialist service providers for particular aspects of the service and in works procurements specialist sub-contractors. The particular value of the schedule is for procurements that are complex in nature and clearly require engagement specialist providers for elements of the procurement. The value of this Schedule in more mundane procurements is considerably less significant.

Schedule 12 - Management/Supervisory Personnel

The schedule requires tenderers to submit details of the management and supervisory personnel they intend to employ to manage the contract on their behalf. The level of applicability and value of this schedule are very similar to those pertaining to Schedule 12.

Schedule 13 - Spare

Schedule 14 - Quality System

This schedule has applicability in Tender Documents for procurement of either works or services and is a valuable tool in evaluating a tenderer’s capacity and capability to deliver quality procurement outcomes.

Schedule 15 - Occupational Health & Safety Systems

This schedule requires tenderers to provide evidence of and demonstrate their ability and capacity to comply with the provisions of the Occupational Health and Safety Act 2004 by way of completion of a questionnaire and provision of support documentation.

This schedule has applicability in Tender Documents for procurement of either works or to a lesser extent services. The schedule must be included in Tender Documents for procurement of works and may be included in service procurements by the Senior Procurement Officer in consultation with the Responsible Officer.

Schedule 16 - Spare



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Schedule 17 - Materials to be Supplied by the Contractor

This schedule has applicability in Tender Documents for procurement of works and to a lesser extent procurement of goods. The schedule provides for the tenderer to submit evidence to establish that materials will be supplied by reputable suppliers and are of appropriate quality.

Schedule 18 - Spare

Schedule 19 - Tenderer’s Financial Details

This schedule is included in the draft document. The information required to be provided is unlikely to be made available by tenderers and there is no way of verifying the information. A more useful tool for assessing the financial position and capability of a tenderer is to engage an independent agency to undertake a financial viability assessment.

Schedule 20 - Tenderer’s Statutory Declaration

This schedule is particularly relevant in all significant procurements but particularly those identified by a risk assessment to have a susceptibility to inappropriate behaviour. The schedule is a statutory declaration by a tenderer in respect to aspects of collusive tendering, cover bidding and unsuccessful tenderer fees. This schedule is used to demonstrate that reasonable steps were taken in the tender process to discourage inappropriate behaviour by tenderers.

Schedule 21 - Quantities – Special Conditions

This schedule must be included in Tender Documents for procurement of works and possibly services where Council provides quantities that tenderers could be reasonably be expected to use for cost estimation.

Schedule 22 - Spare

Schedule 23 - Industrial Relations

This schedule has applicability for only specific types of procurement eg garbage collection services and its use requires judicious consideration.

Schedule 24 - Spare

Schedule 25 - Insurance Details

This schedule has particular applicability to procurement of works and services and in some instances procurement of goods and is used to establish that tenderers are cognizant of and have taken into account the Contractor insurance requirements of a particular procurement. The schedule must be included in Tender Documents for procurement of works and/or services and in applicable instances for procurement of goods.

Schedule 26 - Spare

Schedule 27 - Spare



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Schedule 28 - Local Content

This schedule is designed to reflect the provisions of Buloke Shire Council – Procurement Policy (FM 1001) No. 124 Sub-section 3.6.2 that will apply when the Weighted Attribute Method of tender evaluation is used.

It is emphasised that when using suites of Tender Documents from other sources it is important to ensure that the extent of tender schedules provided adequately reflects the level of information to be submitted by tenderers.

In the situation where a project brief is used for procurement it is very important to frame the brief in a way that ensures that tender submissions address the elements described above for respective tender schedules.

7 CONTRACT DEED

A pro-forma copy of the deed of agreement in respect to any contract awarded should be included in the Tender Documents for the information of intending tenderers.

A pro-forma Deed of Agreement incorporating the above matters is provided in the Appendix to this Manual for use as deemed appropriate.

8 GENERAL CONDITIONS OF CONTRACT AND ANNEXURES

General Conditions of Contract form the basis for the proper administration of any procurement contract and must be included or referenced in the Tender Documents for the information of intending tenderers.

There is a range of General Conditions of Contract available for use in Council’s procurement activities. These include but are not limited to –

Australian Standard General Conditions of Contract (AS 2124 – 1992)

Australian Standard General Conditions of Contract (AS 4000 – 1997)

VicRoads General Conditions of Contract for Road and Bridge Works 1994 – Part 1 and Part 2.

– together with a variety of General Conditions of Contract incorporated in the suites of Tender Documents prepared by Maddocks Solicitors for use by Local Governments for the procurement of services, goods and works; and the Royal Australian Institute of Architects (RAIA) which produces a number of suites of Tender Documents which are often used by Local Governments for procurement of works (Buildings).

The selection of the General Conditions of Contract and the specific details to be provided in the annexures for any procurement contract is dependent on the nature of the procurement and will be decided by the Senior Procurement Officer in consultation with the Responsible Officer.

9 CONTRACTUAL TIME-FRAMES

Contractual time-frames are usually included in the Annexure to the General Conditions of Contract but may be included in a Project Brief for procurement of services.



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These time-frames include the time for practical completion and the defects liability period for procurement contracts for works; the time of delivery and defects liability period for procurement contracts for goods; and the establishment of milestone times and the time for final provision of documents for procurements contracts for services.

Determination of time-frame provisions requires careful consideration and the application of practical and contractual knowledge.

The Senior Procurement Officer and the Responsible Officer must consultatively liaise in such determinations.

10 LIQUIDATED DAMAGES

The Chief Executive Officer and the Senior Procurement Officer will determine whether or not Liquidated Damages are to be included as a contractual provision in any procurement contract.

Preparation of the pre-estimate of liquidated damages is the responsibility of the Senior Procurements in consultation with the Responsible Officer.

Documents comprising the pre-estimate of liquidated damages are discoverable in the event of a contractual dispute.

Accordingly if liquidated damages provisions are intended to be included in any particular procurement contract they must be carefully pre-estimated by an experienced assessor, documented and verified as to date of pre-estimate.

The liquidated damages pre-estimate documents must be held in the records files for both the tender and contracts phases of the procurement process.

11 SPECIFICATION

The Specification is critical to the success of any procurement contract (refer also to SECTION II sub-clauses 2.2 and 2.6 herein). The Specification must document in clear, precise, concise and unambiguous terms the qualitative and quantitative outcomes to be delivered by the Contractor in the performance of the Contract. Preparation of the Specification is the responsibility of the Responsible Officer.

In complex procurement situations, or procurements of significant value, consideration should be given to appointment of a specialist panel to review the Specification document.

12 DRAWINGS, MAPS AND/OR CHARTS

Drawings, maps and/or charts –

must in the case of procurement of works; and

may in the case of procurement of goods and/or services

– be included in the Tender Documents.

Drawings define the extent and dimension of works and in some instances goods intended to be procured. Drawings are unique to particular procurements and must accurately reflect the outcome



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of the design process for that procurement. Refer also to SECTION II sub-clause 2.3 herein for further details relating to drawings.

Preparation of drawings, maps and/or charts for inclusion in Tender Documents is the responsibility of the Responsible Officer.


SECTION IV – DOCUMENTATION FOR EXPRESSION OF INTEREST (EoI) TENDER PROCESS

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SECTION IV DOCUMENTATION FOR EXPRESSION OF INTEREST (EoI) TENDER PROCESS

Table of Contents

1 GENERAL OVERVIEW ................................................................................................ 26

2 EOI SUBMISSION DOCUMENTS .............................................................................. 26

3 INVITATION TO SUBMIT EOI .................................................................................. 26

4 CONDITIONS OF EOI SUBMISSIONS ...................................................................... 26

5 USE OF SCHEDULES FOR EOI SUBMISSION DOCUMENTS .............................. 27

6 EVALUATION METHOD AND EVALUATION CRITERIA FOR EOI SUBMISSIONS ....................................................................................................................... 27

7 GENERAL CONDITIONS OF CONTRACT AND ANNEXURES FOR EOI SUBMISSION DOCUMENTS .............................................................................................. 27

8 PROJECT BRIEF FOR EOI SUBMISSION DOCUMENTS ...................................... 27

9 DRAWINGS, MAPS AND/OR CHARTS FOR EOI SUBMISSION DOCUMENTS 28

10 TENDER DOCUMENTS FOR INVITED TENDERS ............................................... 28

10.1 GENERAL ................................................................................................................... 28

10.2 INVITATION TO TENDER ........................................................................................... 28

10.3 CONDITIONS OF TENDERING (INVITED TENDERS) ................................................... 28

10.4 FORM OF TENDER (INVITED TENDERS) .................................................................... 28

10.5 TENDER SCHEDULES (INVITED TENDERS) ................................................................ 28

10.6 EVALUATION METHOD AND EVALUATION CRITERIA (INVITED TENDERS) .............. 29

10.7 GENERAL CONDITIONS OF CONTRACT AND ANNEXURES (INVITED TENDERS) ........ 29

10.8 PROJECT BRIEF (INVITED TENDERS) ......................................................................... 29

10.9 DRAWINGS, MAPS AND/OR CHARTS (INVITED TENDERS) ......................................... 29



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SECTION IV DOCUMENTATION FOR EXPRESSION OF INTEREST (EoI) TENDER PROCESS

1 GENERAL OVERVIEW

The EoI Tender Process is usually, but not exclusively, utilised when tendering for procurement of services.

As previously mentioned (refer also SECTION II sub-clause 3.2 herein) this is a multi-stage process requiring the following documentation –

EoI Submission Documents; and

Tender Documents

– which are detailed hereafter.

2 EOI SUBMISSION DOCUMENTS

The purpose of using the EoI process is to evaluate intending tenderers on qualitative and contractual criteria without the distraction of price considerations.

Accordingly EoI Submission Documents usually include but are not always limited to –

Invitation to Submit EoI;

Conditions Pertaining to EoI Submissions;

Submission Schedules;

Evaluation Method and Evaluation Criteria;

General Conditions of Contract and Annexures;

Project Brief (or Specification) including Appendices; and

Drawings, Maps and/or Charts


The Senior Procurement Officer must ensure that a copy of the EoI Submission Documents for any procurement is held on the Tender Phase File for that particular procurement.

3 INVITATION TO SUBMIT EOI

This document is an adaptation of the Invitation to Tender (refer SECTION III Clause 2 herein) and is provided in the Appendix to this Manual.

4 CONDITIONS OF EOI SUBMISSIONS

These conditions are an adaptation of the Conditions of Tendering (refer SECTION III Clause 3 herein) and are provided in the Appendix to this Manual.

The conditions should include an outline of EoI Tendering process and emphasise that pricing must not be submitted with an EoI.

It is important that these conditions are carefully reviewed to ensure that they are appropriate for the procurement contemplated.



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5 USE OF SCHEDULES FOR EOI SUBMISSION DOCUMENTS

It is usual that the qualitative and contractual (except price) requirements of the particular procurement are detailed in the Project Brief with submitters being required to demonstrate and establish their capacity and capability in respect to these matters as part of their EoI submission.

Accordingly use of Submission Schedules is discouraged but if used any schedules must be appropriate adaptations of Tender Schedules 7, 8, 9, 10, 11, 12, 14, 15, 20 and 25 (refer to SECTION III Clause 6 herein).

6 EVALUATION METHOD AND EVALUATION CRITERIA FOR EOI SUBMISSIONS

The Weighted Attribute Method of Tender Evaluation (refer to SECTION V sub-clause 13.3.2 herein) is usually used in the evaluation of EoI submissions.

The Criteria against which EoI submissions will be evaluated must be advised to intending submitters together with the attribute weighting factor (or criterion weightings) for each criterion.

Evaluation Method and Evaluation Criteria are usually advised via the Conditions Pertaining to EoI Submissions or the Project Brief if this is not the case the document Evaluation of EoI Submissions (included in the Appendix to this Manual) must be used.

7 GENERAL CONDITIONS OF CONTRACT AND ANNEXURES FOR EOI SUBMISSION DOCUMENTS

As previously mentioned the EoI tendering process is generally (but not exclusively) used for the procurement of services usually provided by specialist consultants.

The General Conditions of Contract to be used in these circumstances will be –

Australian Standard AS 4122 – 2000 General Conditions of Contract for Engagement of Consultants

– including Annexures thereto.

The specific details to be provided in the annexures to the General Conditions of Contract are dependent on the nature of the procurement and will be decided by the Senior Procurement Officer in consultation with the Responsible Officer.

The other forms of General Conditions of Contract and Annexures (refer to SECTION III Clause 8 herein) may be used for other EoI Submission Documents as appropriate for the particular procurement.

8 PROJECT BRIEF FOR EOI SUBMISSION DOCUMENTS

The Project Brief is critical to the successful procurement of services (refer to SECTION II sub-clause 2.2 herein) and is the culmination of consultative inputs from the Senior Procurement Officer addressing contractual matters, and the Responsible Officer addressing qualitative and quantitative matters respectively for the intended procurement.



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9 DRAWINGS, MAPS AND/OR CHARTS FOR EOI SUBMISSION DOCUMENTS

Drawings, maps and/or charts may be included in the EoI Submission Documents for procurement of particular services.

These documents are used to demonstrate the required procurement outcome for a particular service. The nature and extent of drawings, maps and/or charts required are unique to the procurement of a particular service and must be prepared by the Responsible Officer (refer also to SECTION II sub-clause 2.3 herein).

10 TENDER DOCUMENTS FOR INVITED TENDERS POST EOI

10.1 GENERAL

The Tender Documents used when inviting tenders as part of the EoI tendering process must as a minimum comprise the following –

Invitation to Tender;

Conditions of Tender Post Expression of Interest;

Form of Tender;

Tender Schedules;

Evaluation Method and Evaluation Criteria;

General Conditions of Contract and Annexures;

Project Brief (or Specification) including Appendices; and

Drawings, Maps and/or Charts


10.2 INVITATION TO TENDER

This document is an adaptation of the Invitation to Tender for Traditional Tendering Arrangements (refer SECTION III Clause 2 herein). A copy of this document is provided in the Appendix to this Manual.

10.3 CONDITIONS OF TENDER POST EXPRESSION OF INTEREST

This document is an adaptation of the Conditions of Tendering used for Traditional Tendering Arrangements (refer SECTION III Clause 3 herein). A copy of this document is provided in the Appendix to this Manual.

10.4 FORM OF TENDER

The Form of Tender included in the Tender Documents is as detailed in SECTION III Clause 5 herein.

10.5 TENDER SCHEDULES (INVITED TENDERS)

The Tender Schedules to be included in the Tender Documents are usually only those relating to price as other qualitative and contractual matters have already been provided in the EoI submission.

Tender Schedules that may be included are Schedules 1, 2, 3, 4, 5 & 6 as detailed in SECTION III Clause 6 herein.



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Tender Schedule 28 – Local Content must be included in the Documents to give effect to the provisions of Buloke Shire Council – Procurement Policy (FM 1001) No. 124 Sub-section 3.6.2 that will apply when the Weighted Attribute Method of tender evaluation is used.

It is often the case that the nature of the service procurement and the manner in which the service is required to be delivered demand that a specific Tender Schedule (or Schedules) are designed for a particular procurement. In these instances it is necessary to ensure that the intent of the above Schedules is captured in the specific Schedule (s).

The Senior Procurement Officer in consultation with the Responsible Officer is responsible for preparation of Tender Schedules.

10.6 EVALUATION METHOD AND EVALUATION CRITERIA (INVITED TENDERS)

The evaluation of tenders subsequent to an Expression of Interest process will usually utilise only Tender Price and Local Content criterions. It is possible as a result of the evaluation of EoI submissions that the need for further evaluation criteria becomes apparent. Accordingly these further criteria may be included for the evaluation of tenders invited subsequent to an EoI process. The provisions of SECTION III Clause 4 herein for the lowest conforming tender method apply.

10.7 GENERAL CONDITIONS OF CONTRACT AND ANNEXURES (INVITED TENDERS)

The provisions of SECTION IV Clause 7 herein shall apply for specialist consulting services procurements and the provisions of SECTION III Clause 8 shall apply to all other situations.

10.8 PROJECT BRIEF (INVITED TENDERS)

The provisions of SECTION II sub-clauses 2.2 and 2.6 and SECTION IV Clause 8 herein apply.

10.9 DRAWINGS, MAPS AND/OR CHARTS (INVITED TENDERS)

The provisions of SECTION II sub-clause 2.3 and SECTION IV Clause 9 herein apply.


SECTION V – TENDER PHASE

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SECTION V TENDER PHASE

Table of Contents

1 GENERAL ...................................................................................................................... 32

2 FINALISING TENDER (OR EOI SUBMISSION) DOCUMENTS AND ASSOCIATED ARRANGEMENTS ...................................................................................... 32

2.1 DATE AND TIME FOR CLOSE OF TENDER (OR EOI) SUBMISSIONS ............................. 32

2.2 PLACE FOR LODGING TENDER (OR EOI) SUBMISSIONS ............................................. 32

2.3 CONSULTATION AND ATTENDANCE AT TENDER (EOI SUBMISSION) OPENING ........ 32

3 PREPARATION OF TENDER (EOI SUBMISSION) DOCUMENTS ...................... 32

4 APPOINTMENT OF EVALUATION PANEL ............................................................ 33

5 PUBLIC NOTICE OF INVITATION TO TENDER (OR SUBMIT EOI) ................ 34

5.1 CONTENT OF NOTICE INVITING TENDERS ............................................................... 34

5.2 CONTENT OF NOTICE INVITING EOI SUBMISSIONS .................................................. 35

6 PUBLICATION OF NOTICE ....................................................................................... 35

7 TENDER (EOI SUBMISSION) PERIOD .................................................................... 36

8 MATTERS ARISING DURING THE TENDER (EOI SUBMISSION) PERIOD .... 36

8.1 PRE-TENDER MEETING ............................................................................................. 36

8.2 QUERIES ..................................................................................................................... 37

8.3 QUERIES REGARDING THE VALIDITY OR APPROPRIATENESS OF EVALUATION

CRITERIA .............................................................................................................................. 37

8.4 CLARIFICATIONS AND ADDENDA ............................................................................... 38

9 LODGEMENT OF TENDERS (OR EOI SUBMISSIONS) ........................................ 38

9.1 TENDER BOX ............................................................................................................. 38

9.2 TENDERS (EOI SUBMISSIONS) RECEIVED BY MAIL .................................................... 38

9.3 PROCEDURES FOR OVER-SIZE TENDERS (EOI SUBMISSIONS) .................................... 38

9.4 TENDERS (OR EOI SUBMISSIONS) RECEIVED BY FACSIMILE OR E-MAIL .................... 39

10 CLOSE OF TENDERS (EOI SUBMISSIONS) ............................................................ 39

11 OPENING OF TENDERS (EOI SUBMISSIONS) ...................................................... 40

12 LATE TENDERS (OR EOI SUBMISSIONS) .............................................................. 41

13 TENDER (OR EOI SUBMISSION) EVALUATION .................................................. 41

13.1 THE EVALUATION PANEL .......................................................................................... 41

13.2 ROLE OF THE EVALUATION PANEL ........................................................................... 41



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13.3 METHODS OF EVALUATION ....................................................................................... 42

13.3.1 Lowest Conforming Price Evaluation Method .................................................. 42

13.3.2 Weighted Attribute Method ............................................................................... 42

13.4 PARTICULAR MATTERS ARISING DURING EVALUATION OF TENDERS (OR EOI

SUBMISSIONS) ....................................................................................................................... 43

13.4.1 Alternative and Non-conforming Tenders ........................................................ 43

13.4.2 Negotiations ....................................................................................................... 44

13.4.3 In-house Bids and Competitively Neutral Pricing ............................................ 44

14 STRUCTURE AND CONTENT OF EVALUATION PANEL REPORT .................. 45

15 CONFIDENTIALITY OF EVALUATION PANEL REPORT. .................................. 46

16 REPORTING TO COUNCIL ........................................................................................ 46



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SECTION V TENDER PHASE

1 GENERAL

The Tender Phase whether using the traditional tender process or the EoI Tender Process comprises a variety of activities and tasks which are detailed herein in chronological sequence.

2 FINALISING TENDER (OR EOI SUBMISSION) DOCUMENTS AND ASSOCIATED ARRANGEMENTS

It is important that the matters dealt with hereafter are appropriately addressed at the commencement of the Tender Phase of any procurement and prior to the publication of the invitation to tender or submit an EoI .

2.1 DATE AND TIME FOR CLOSE OF TENDER (OR EOI) SUBMISSIONS

The Senior Procurement Officer is responsible for the determination of the date and time for closing of Tender (or EoI) Submissions. Tenders must not be closed on Mondays or Fridays and unless otherwise decided by consultation the preferred day/time for the closing of submissions shall be 2.00pm. on Tuesday.

The Senior Procurement Officer is responsible to ensure that the date and time for close of tender (or EoI) submissions and the place for lodging submissions is included at the relevant parts of the Tender (or EoI Submission) Document namely the Cover Page (copy of Cover Page is provided in the Appendix to this Manual); Invitation to Tender; Conditions of Tendering; and the Project Brief.

2.2 PLACE FOR LODGING TENDER (OR EOI) SUBMISSIONS

Tender (or EoI) submissions must be lodged in the Tender Box situated in Customer Services Reception Area of the Wycheproof District Office, Buloke Shire Council, 367 Broadway, PO Box 1, Wycheproof Vic. 3527.

Tender (or EoI) Submissions received in the mail shall be deposited unopened into the Tender Box by Records Management staff.

2.3 CONSULTATION AND ATTENDANCE AT TENDER (EOI SUBMISSION) OPENING

The Senior Procurement Officer is responsible to consult and liaise with Records Management, Customer Service and the Responsible Officer and agree the date and time for close of Tender (or EoI) Submissions.

The Senior Procurement Officer, Responsible Officer and a Records Management Officer must be in attendance at the Close of Tender (or EoI) Submissions and for the opening of submissions immediately after submissions close. These arrangements must be determined as a part of this consultation.

3 PREPARATION OF TENDER (EOI SUBMISSION) DOCUMENTS

Preparation of the electronic and hard copies of the Tender (EoI) Submission Documents is the responsibility of the Responsible Officer.

The Senior Procurement Officer must ensure that a copy of the Tender (EoI Submission) Documents for any procurement is held on the Tender Phase File for that particular procurement.



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Note: At this time preparation of an electronic copy of Tender Documents (or EoI Submission Documents) is undertaken only for ease of compilation of the hard copies. At this time Council have not developed agreed protocols to enable electronic copies of Tender Documents to be downloaded from Council’s web page particularly a means of capturing the contact details of those parties who download the documents. This is a particularly important matter in the event of Addenda being issued and ensuring that all intending tenderers are provided with the Addenda and can take into account the impact of the Addenda in the compilation of their Tender and/or EoI submission.

4 APPOINTMENT OF EVALUATION PANEL

The Senior Procurement Officer must liaise with the Responsible Officer in respect to persons to be considered for appointment as Evaluation Panel members for a particular procurement.

The structure of any Evaluation Panel must have regard to the estimated value of the contract and whether or not an in-house bid is to be submitted.

The following tables outline the Evaluation Panel structures that shall generally to be adopted.

(a) Procurement of Goods

ESTIMATED VALUE OF PROCUREMENT

PANEL MEMBERS

=<$150,000 Responsible Officer Senior Procurement

Officer Independent Local

Person

>$150,000 As above plus Independent Person with relevant experience.

(b) Provision of Works and/or Services

ESTIMATED VALUE OF PROCUREMENT

PANEL MEMBERS

IF IN-HOUSE BID ANTICIPATED

NO IN-HOUSE BID

<$1,000,000 Senior Procurement Officer

Manager other than Responsible Officer

Independent Person (with relevant Technical Expertise)

Mayor, or delegate

Senior Procurement Officer

Responsible Officer Independent Person

(with relevant Technical Expertise)

=>$1,000,000 As Above plus Finance Manager or Independent Person (with relevant Financial Expertise)



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The Senior Procurement Officer –

(a) shall ensure that each prospective Evaluation Panel member –

is provided with a copy of the publication “Conflict of Interest – A Guide for members of Council committees” published by Local Government Victoria, Department of Planning and Community Development and available on the web at www.localgovernment.vic.gov.au .; and

if they have not already done so completes and submits both a “Primary Return” and “Ordinary Return” as applicable pursuant to the provisions of Section 81 of the Local Government Act 1989 in the prescribed form; and

(b) shall ensure that all completed Returns are filed on the Records File for the Tender Phase; and further

(c) shall by Memorandum to the Chief Executive Officer recommend the composition of and names of the persons intended to comprise the Evaluation Panel.

The Chief Executive Officer will notify the Senior Procurement Officer of approval or otherwise of the recommended Evaluation Panel. In this latter regard the CEO has an absolute discretionary right to omit or add additional persons to any Evaluation Panel.

The Senior Procurement Officer shall ensure that these actions are documented and recorded in the Records File for the Tender Phase of the procurement process.

Under no circumstances shall any of the Panel have a conflict of interest in any tender likely to be lodged or any consequence of the tender.

5 PUBLIC NOTICE OF INVITATION TO TENDER (OR SUBMIT EOI)

5.1 CONTENT OF NOTICE INVITING TENDERS

The Senior Procurement Officer is responsible for the preparation of the notice that publicly invites Tenders for a particular procurement and to ensure that a copy of the notice is held on the Tender Phase File for any procurement.

The required content of this notice is outlined hereafter –

Buloke Shire Council logo;

Relevant Contract Number;

Name of Contract (be brief);

Words of invitation;

A brief summary of the goods, works, or services to be provided (not more than 50 words – as provided on the Cover of the Tender Documents);

A statement advising that an in-house bid is to be lodged (if applicable);

The date, time and place of any pre-tender meeting (if applicable);

Tender envelope and identification requirements;

Date and time of close of tenders;

Address and location of tender box;

Postal address for lodging of tenders;

Advice regarding the availability of Tender Documents including name, address and contact details of contact person;



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Document fee (if applicable);

A statement advising that faxed and emailed tender submissions and late tenders will not be accepted;

A statement that the lowest or any tender will not necessarily be accepted; and

Name of and title Chief Executive Officer.

A copy of this Notice is provided in the Appendix to this Manual.

5.2 CONTENT OF NOTICE INVITING EOI SUBMISSIONS

The Senior Procurement Officer is responsible for the preparation of the notice that publicly invites EoI Submissions for a particular procurement and to ensure that a copy of the notice is held on the Tender Phase File for any procurement.

The required content of this notice is outlined hereafter –

Buloke Shire Council logo;

Relevant Contract Number;

Name of Contract (be brief);

Words of invitation;

A brief summary of the goods, works, or services to be provided (not more than 50 words – as provided on the Cover of the EoI Submission Documents);

Advice of the intended EoI process including time-frames;

The date, time and place of any pre-submission meeting (if applicable);

Submission envelope and identification requirements;

Date and time of close of submissions;

Address and location of tender box;

Postal address for lodging of submissionss;

Advice regarding the availability of EoI Submission Documents including name, address and contact details of contact person;

Document fee (if applicable);

A statement advising that faxed and emailed submissions and late submissions will not be accepted;

Name of and title Chief Executive Officer.

A copy of this Notice is provided in the Appendix to this Manual.

6 PUBLICATION OF NOTICE

The Senior Procurement Officer shall in consultation with the Responsible Officer assess the nature, technical complexity and estimated value of the procurement and determine the extent of the public notification required.

As a general rule for procurement for goods, works and/or services (valued at less than $250,000) that are readily available from companies or individuals within the Municipality and the region, public notification will only be published in regional newspapers including the local newspapers circulating within the municipality. If the goods works and/or services to be procured are valued in excess of $250,000 public notification must be published in newspapers that circulate daily in the State of Victoria, in addition to local and regional newspapers.



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A list of approved local, regional and Victorian daily circulation newspapers to be used for publication of public notification is provided in the Appendix to this manual.

Public notification using specialist magazines and newspapers shall be confined to those circumstances when the required goods, works and/or services is of a specialist nature and potential suppliers or providers are not likely to be sourced by means of normal newspaper advertisements.

The Senior Procurement Officer is responsible to ensure placement and appropriate co-ordination of all public notifications including checking of proofs provided by newspapers selected for publishing of notices and shall compile an Advertising Schedule for Publication of Public Notifications for any procurement which shall be retained in the Records File for the Tender Phase of the particular procurement process.

Tenders and EoI Submissions for the procurement of goods, works and/or services will also be notified on Council’s website for the duration of the advertising period (ie the Public Notice inviting Tenders or EoI Submissions). Tender and EoI Submission Documents will not be available on the website at this time.

7 TENDER (EOI SUBMISSION) PERIOD

The standard invitation period for Tenders and Expressions of Interest will be 3 calendar weeks from the date of the first publication of invitation, unless the complexity of the documentation or urgency of the issue demands that either a longer or shorter period is warranted. No advertisement is to be placed when the period to closing is less than 10 days from the date of publication.

Where the tendering process involves an Information Session for interested parties, then the closing date shall not be less than 10 working days after the date of the information session.

8 MATTERS ARISING DURING THE TENDER (EOI SUBMISSION) PERIOD

During the period from the date of first inviting Tenders (or EoI Submissions) a number of matters will or could arise. Some of these matters may run to the core of any subsequent Contract and it is very important that these matters for any particular procurement are well documented and copies are held on the Tender Phase File for any procurement.

The more frequently occurring situations are dealt with hereafter.

8.1 PRE-TENDER MEETING

A Pre-Tender Meeting may be a necessary component of the tendering process where Expressions of Interest (EoI) are invited for the provision of particular goods, works and/or services or tenders are invited in cases where the required goods, works and/or services or the nature of the contract to be entered into is particularly complex.

The Chief Executive Officer will, after liaison with the Senior Procurements Officer and the Responsible Officer, determine the necessity or otherwise for a Pre-Tender Meeting for interested parties.

The date, time and location of the Pre-Tender Meeting must be included in the Tender (EoI Submission) Documents. The Pre-Tender Meeting must be held at least five (5) working days after the last published advertisement. The Pre-Tender Meeting will not be held earlier in a day than 10.00am, unless warranted because of technical reasons relevant to the contract.



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The purpose of the Pre-Tender Meeting will be to –

Give an outline of the required goods, works and/or services; Give prospective tenders or interested parties the opportunity to ask questions; and Provide an opportunity for prospective tenders or interested parties guided to inspect sites

and/or facilities relevant to the required goods, works and/or services.

The Senior Procurements Officer shall record the minutes of the Pre-Tender Meeting.

The minutes shall record –

the names of all attendees; the name and address of the organisation each attendee represents; the telephone, facsimile and e-mail contact details of attendees and represented

organisations; details of written questions received; questions asked at the meeting; answers relating to any written questions presented; any warrantees or guarantees given; and any questions that require a follow up after the Pre-Tender Meeting.

A copy of the minutes shall –

be forwarded to all attending parties; be retained in the Records File for the Tender Phase of the particular procurement process;

and form part of the Contract Documents.

8.2 QUERIES

Queries are often raised or sought by intending tenderers (EoI submittors). These may vary from insignificant to very important and must initially be directed to the Senior Procurement Officer who will determine level of significance and may or may not refer the query to the Responsible Officer for advice depending on who is best placed to handle a particular matter.

The Responsible Officer must provide appropriate written advice to the Senior Procurement Officer.

8.3 QUERIES REGARDING THE VALIDITY OR APPROPRIATENESS OF EVALUATION CRITERIA

During the Tender (or EoI Submission) Period, or at a Pre-Tender Meeting, a potential Tenderer (or EoI Submitter) may query or challenge the validity or appropriateness of the evaluation criteria advised in the Tender (or EoI Submission) Documents for a particular procurement process.

These concerns must be dealt with by the Senior Procurement Officer in consultation with the Responsible Officer, appropriately resolved and shall be advised to the Chief Executive Officer by Memorandum a copy of which must be retained in the Records File for the Tender Phase of the particular procurement process.

The Senior Procurement Officer shall notify any amendment to evaluation criteria by a written Addendum to all parties who receive or are registered as having received a copy of the Tender (or EoI Submission) Documents.



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8.4 CLARIFICATIONS AND ADDENDA

Queries which run to the core of the Contract will almost inevitably give rise to a Clarification or Addendum being issued by Council. Clarifications or Addenda together with the query that gave rise to their issue must be documented and copies are held on the Tender Phase File for any procurement.

Clarifications and/or addenda that are issued must be provided to all intending tenderers (EoI submitters).

The Responsible Officer may be required to advise the Senior Procurement Officer in respect to technical matters (i.e. specification, design and/or drawings) but the preparation and issuing of any Clarification or Addenda is the responsibility of the Senior Procurement Officer.

A pro-forma Notice of Addendum is included in the Appendix to this Manual.

9 LODGEMENT OF TENDERS (OR EOI SUBMISSIONS)

9.1 TENDER BOX

The only tender box for the lodging of tenders (or EoI Submissions) is in the Reception Area on the ground floor of the Municipal Offices, 367 Broadway, Wycheproof. Use of Tender Boxes in alternative locations will only be by permission of the Chief Executive Officer.

The tender box must be kept locked at all times except when it is opened for the purpose of removing tenders. The only key to the tender box must be held by Records Management. Opening of the Tender Box shall be for the express purpose of removing Tenders (or EoI Submissions) at the closing time for particular Tenders (or EoI Submissions).

9.2 TENDERS (EOI SUBMISSIONS) RECEIVED BY MAIL

The Invitation to Tender (or submit an EoI) requires that Tenders (or EoI Submissions) must be lodged in a sealed envelope which is clearly endorsed on the outside with the contract number and contract name and also the name of the tenderer.

The Records Management Officer responsible for the receiving inwards correspondence must not open any tender but shall record each tender received by mail in accordance with Records Management protocols. The Records Management Officer who records the receipt of a tender by mail shall then place the unopened tender envelope in the tender box.

If a tender envelope is inadvertently opened, the Tender (or EoI Submission) must immediately be replaced in the envelope and the envelope must then be resealed, endorsed with the words “OPENED IN ERROR” and signed by the Records Management Officer who opened it. The incident shall be recorded by a Memorandum (prepared by the Records Management Officer) which shall be firmly attached to the resealed Tender (or EoI Submission) envelope which shall then be placed in the Tender Box.

9.3 PROCEDURES FOR OVER-SIZE TENDERS (EOI SUBMISSIONS)

In the event that a Tender (or EoI Submission) is too large for the envelope opening into the Tender Box the Records Management Officer shall in the company of another officer of Council open the Tender Box and place the oversize Tender (or EoI Submission) with a Memorandum recording this action attached thereto into the Tender Box.



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The Memorandum shall –

record the information marked on the envelope;

record the date and time the Tender (or EoI Submission) was received;

record the date and time the Tender Box was opened and the oversize Tender (or EoI Submission) was placed in the Tender Box; and

be signed by both officers who dealt with the situation.

In the event that a Tender (or EoI Submission) is too large to fit into the Tender Box such Tender (or EoI Submission) shall be placed in a designated secure place preferably the Council safe in the Wycheproof Office by the Records Management Officer in company with another officer of Council. A Memorandum recording this action shall be placed in the tender box.

The Memorandum shall –

clearly record the action the taken and the location of the oversize Tender (or EoI Submission) in the safe;

record the information marked on the envelope;

record the date and time the Tender (or EoI Submission) was received;

record the date and time the Tender (or EoI Submission) the oversize Tender (or EoI Submission) was placed in the safe; and

be signed by both officers who dealt with the situation.

The above situations are unusual but sometimes occur and it is important to demonstrate the probity of the actions taken. Accordingly the Chief Executive Officer must be advised when these circumstances occur and either of the above actions taken. The Chief Executive Officer shall be provided with a copy of the relevant Memorandum as the circumstance requires.

A copy of the Memorandum must be retained in the Records File for the Tender Phase of the particular procurement process.

9.4 TENDERS (OR EOI SUBMISSIONS) RECEIVED BY FACSIMILE OR E-MAIL

The Tender (or EoI Submission) Documents specify that Tenders (or EoI Submissions) received by either facsimile or e-mail will not be accepted.

If a Tender (or EoI Submission) is received by facsimile or e-mail it must be delivered to the Senior Procurement Officer who must contact the tenderer as soon as practicable and advise that the Tender (or EoI Submission) is not acceptable.

Details of any such advices must be retained in the Records File for the Tender Phase of the particular procurement process.

10 CLOSE OF TENDERS (EOI SUBMISSIONS)

On the day and at the time of close of Tenders (EoI Submissions) the Senior Procurement Officer, Responsible Officer and a Records Management Officer shall attend at the place for lodging of tenders and be present for the opening of Tenders (or EoI submissions).

The opening of Tenders (or EoI submissions) shall take place immediately after submissions close. This requirement may only be varied at the express written direction of the Chief Executive Officer.



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11 OPENING OF TENDERS (EOI SUBMISSIONS)

The procedure to be adopted in relation to the opening of Tenders (or EoI Submissions) is as follows:

On the day and at the time of closing of Tenders (or EoI Submissions), the Records Management Officer will open the Tender Box and remove all relevant Tenders (or EoI Submissions) from the Tender Box. Any Tenders (or EoI Submissions) not scheduled for opening shall be replaced in the Tender Box.

Tenders (or EoI Submissions) shall be opened one at a time by the Senior Procurement Officer. Each Tender (or EoI Submission) must be marked with the date and time of opening and initialled by the Senior Procurement Officer, Responsible Officer and a the Records Management Officer in attendance.

The Records Management Officer shall individually scan each Tender (or EoI Submission) as required by Council’s records Management protocols.

The Senior Procurement Officer or Responsible Officer shall record the name of those parties from whom a Tender (or EoI Submission) was received together with the names of those present at the opening of Tenders (or EoI Submissions) and include this information in the Contracts Register.

The Responsible Officer will be provided with a copy of all Tenders (or EoI Submissions) received for evaluation purposes.

Any member of the public, council staff, or a Councillor may be present at the opening of tenders. However, the only publicly available information issued at the stage will be the names and addresses of Tenderers who lodged a tender and if possible, the “apparent order” of Tenders will be made known to those present. This information will be provided by the Senior Procurement Officer. Under no circumstances will the value of any tender be divulged.

No later than the close of business on the third working day after closing each Tender (or EoI Submission) shall be perused and checked by the Responsible Officer –

(a) to ensure that each –

complies with the Conditions of Tendering (or Conditions pertaining to EoI Submissions) specifically in the case of Tenders that the required Form of Tender and nominated Tender Schedules have been completed, signed and submitted as required

is otherwise complete;

is accurate and free from arithmetic and calculation errors; and

contains all the information relevant to the particular procurement;

and

(b) to identify areas requiring clarification or further information which may be sought prior to the meeting of the Panel.

A Tender (EoI Submission) Check “.xls” spread-sheet template is included in the Appendix to this Manual.

A copy of the Tender Check for each Tender (or EoI Submission) shall be retained in the Records File for the Tender Phase of the particular procurement process.



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A letter of acknowledgment shall be sent to all parties that submitted a Tender (or EoI Submission) no later than the close of business on the third working day after the closing of tenders (or EoI Submissions).

The letter shall –

acknowledge the receipt of the Tender (or EoI Submission);

advise the “apparent order” of Tenders (usually not applicable to EoI Submissions);

seek any necessary clarifications or further information as identified in the Tender Check; and

advise the anticipated date by which a decision will be made on the awarding of the contract.

A pro-forma of this letter template is included in the Appendix to this Manual.

All Tenders (or EoI Submissions) shall be securely stored and no access provided to parties other than the Senior Procurement Officer, Responsible Officer and the Evaluation Panel.

12 LATE TENDERS (OR EOI SUBMISSIONS)

Late Tenders (or EoI Submissions) must not be opened. The Records Management Officer shall mark the envelope with the time and date on which the late Tender (or EoI Submission) was received and forward same to the Senior Procurement Officer who shall return the envelope unopened to the Tenderer.

These actions shall be advised to the Chief Executive Officer by Memorandum a copy of which must be retained in the Records File for the Tender Phase of the particular procurement process.

All late tenders shall be reported to Council as part of the Evaluation Panel Report.

13 TENDER (OR EOI SUBMISSION) EVALUATION

13.1 THE EVALUATION PANEL

Refer to SECTION III SUB-CLAUSE 2.3 and SECTION V Clause 4 herein.

13.2 ROLE OF THE EVALUATION PANEL

The Evaluation Panel must exercise fairness, probity and equity in fulfilling its role and shall meet as soon as practicable after the close of Tenders (or EoI Submissions) to undertake its role as follows –

Evaluate the Tenders (or EoI Submissions) received;

Negotiate with any Tenderer (or EoI Submitter) if necessary and as appropriate;

Ensure that sufficient funds are available to pay the amount that Council would incur in the current financial year if a Contract were to awarded;

Recommend a preferred Tender (or EoI Submission) and state the reason(s) for the recommendation;

Consider the requirements for and apply the principles of Competitive Neutrality when evaluating Tenders in circumstances when an In-house bid is submitted; and

Submit its written Evaluation Panel Report outlining: (a) the evaluation process and method used; (b) the nature and outcome of any negotiations; (c) budget availability; (d) its various determinations; (e) its recommended preferred Tenderer (or EoI Submitter); and



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(f) such other recommendation(s) it considers appropriate.

The objective of the evaluation process is to ensure that the preferred Tenderer (or EoI Submitter) as recommended by the Panel is able to comply with the requirements of the specification (or project brief) at the “best value for money” outcome for Council.

13.3 METHODS OF EVALUATION

The method of evaluation must ensure that all Tenders (or EoI Submissions) received are treated with fairness, probity and equity, and that the evaluation criteria advised in Tender (or EoI Submission) Documents are rigorously applied.

The method of evaluation must address the provisions of Buloke Shire Council – Procurement Policy (FM 1001) No. 124 Sub-section 3.6 Support of Local Business.

The two methods generally used for evaluating tenders are described below:

13.3.1 Lowest Conforming Price Evaluation Method

The Panel will check each tender for conformity against the requirements of the Tender Documents and the evaluation criteria for the specific procurement.

The tendered price of conforming tenders will be subject to adjustment in accordance with the Buloke Shire Council Procurement Policy clause 3.6.1 Purchasing Preference as applicable. Tenders will be evaluated by comparison of adjusted tender prices.

The preferred tender will be the conforming tender with the lowest tendered price after preference adjustment.

This is the simplest tender method and is generally the preferred method to be adopted.

13.3.2 Weighted Attribute Method

The weighted attribute method of tender evaluation utilises the application of predetermined weighting factors for each selection criteria to establish a weighted score for each conforming tender. The weighting factor for each criterion is determined based on the relative importance of each criterion.

The weighted attribute method requires the Panel to undertake the following discrete sequence of steps:

Determine and allocate a raw points score (P) for each of the criteria (except price) for each Tender based on a qualitative assessment of each Tender against each criteria (except price). The raw points score (P) shall be allocated in the range of 0 to 100 in accordance with the following table:

RAW POINTS SCORE

QUALITATIVE ASSESSMENT OF TENDER AGAINST ANY EVALUATION CRITERIA

100 Excellent

80 Very Good

60 Good or Better than Average

40 Acceptable



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20 Marginally Adequate (success likely but not assured)

0 Failed to satisfy required standards

The Panel may interpolate points at its discretion.

Calculate a raw points score for Price for each Tender based on the following

formula – PP = 50 + 100 ($m - $t)/$m

Where

PP = raw points for Price for the Tender being evaluated

$t = Tendered Price of the Tender being evaluated; and

$m = Mean of Tendered Prices for all conforming Tenders.

If the contract is a Schedule of Rates Contract, the Tendered rates will be multiplied by the estimated quantities stated in the Tender Documents to establish an estimated, or theoretical, (extended) lump sum price for the purposes of the formula. PP shall be rounded to the nearest whole number.

Calculate the raw points score for Local Content. The raw points score for Local Content of any tender is determined from the information provided on Schedule 28 in the tender submission. The raw points allotted shall be as calculated in the following formula:

Plocal content = [Total Actual Value of Local Content/Total Value]100

All calculations for Plocal content shall be rounded to the nearest whole number.

For each Tender calculate the Weighted Score for each criteria by multiplying the Raw Points Score for that criteria by the Attribute Weighting Factor for the respective criteria:

Calculate the Total Weighted Score for each Tender by adding the Weighted Scores calculated for each of the criteria for that Tender.

This method has general applicability and is particularly useful in assessing Tenders for “service delivery”, “consultancies” and “facilities management” contracts. The method is also suitable where Council wishes to take into account factors, other than price, which may have a significant but non-quantifiable bearing on qualitative and cost outcomes.

13.4 PARTICULAR MATTERS ARISING DURING EVALUATION OF TENDERS (OR EOI

SUBMISSIONS)

The following procedures apply to particular matters that may arise during the evaluation of Tenders (or EoI Submissions).

13.4.1 Alternative and Non-conforming Tenders

Alternative and/or non-conforming tenders shall only be considered if specifically provided for in the Tender Documents (Conditions of Tendering).



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An alternative (or non-conforming) Tender will only be considered if accompanied by a conforming Tender, or sufficient information for the Evaluation Panel to determine the cost of a conforming Tender.

Where an alternative Tender has been received, the Panel will consider the alternative provision(s) and the benefits, or otherwise, to Council. The panel may negotiate with the Tenderer as it deems necessary.

13.4.2 Negotiations

The Evaluation Panel is authorised to undertake negotiations with any Tenderer during the evaluation process in order to:

Clarify any area of ambiguity;

Remove any qualifications;

Gain a better understanding of the Tenderer and their proposal; and

Further establish the ability of the Tenderer to perform the work.

The following procedures shall apply if negotiations are deemed necessary:

The Senior Procurement Officer may seek written clarification from any Tenderer regarding minor issues. Details of the clarification sought and the information provided shall be recorded, placed on the contract file and shown to all panel members during the evaluation process;

Detailed negotiations should preferably be carried out in person at a meeting between all members of the panel (or a sub-committee appointed by the panel for that purpose) and representative(s) of the Tenderer;

The Senior Procurement Officer shall take and record Minutes of any negotiation meeting;

Any request for additional information or clarification of the Tenderer shall be in writing; and

The above actions must documented by Memorandum a copy of which must be retained in the Records File for the Tender Phase of the particular procurement process.

Under no circumstances shall a Tenderer with whom negotiations are in progress be given any indication of the value of any tenders received from any other Tenderer.

13.4.3 In-house Bids and Competitively Neutral Pricing

The evaluation process must ensure that an In-house Bid has no net competitive advantages as a result of Council ownership. Any In-house Bid submitted must demonstrate to the satisfaction of the Evaluation Panel that it incorporated the competitively neutral costing principles as detailed in “A Guide to Implementing Competitively Neutral Pricing Principles”.

To ensure compliance with the competitively neutral pricing policy an In-house bid must:

(a) be a fully costed bid, including all costs incurred by management in respect to WorkCover, long service leave, superannuation, rent, legal costs, depreciation and interest costs; and

(b) clearly establish the competitively neutral cost by adjusting the fully costed bid for net competitive advantages and disadvantages.



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The competitive advantages and disadvantages and treatment required are tabulated hereafter –

Competitive Advantages

Cost of Capital Tender to include a Rate of Return of either:

11% of relevant assets 10% where there is no significant utilisation of assets, or the relevant market rate, if significantly different

Wholesale Sales Tax In-house team to identify those goods which would be subject to Sales tax if purchased by a private sector business, and then calculate the notional sales tax applicable.

Land Tax Nil adjustment required – no land with site value in excess of $200,000

Council Rates Two options available:

Impute a commercial rent for the relevant land, or Calculate the amount of rate that would apply, except for

exemption.

Stamp Duty Applicable where Output involves conveyances and transfer of property, leases of land, rental and hiring of goods, loans etc.

FID & Debits Tax Where applicable, 0.11% of forecast revenue.

Payroll Tax Tax payable, except for exemption, is 0.07 x (Annual total ‘wages’ paid)

Other Any other advantage that is able to be identified.

Competitive Disadvantages

Superannuation Where the LASB contribution rate applies, it may be a disadvantage compared to the Industry accepted rate.

Other Any other disadvantages that are able to be identified and quantified.

The figures shown in red above must be checked at the time of evaluation and verified as accurate and up-to-date.

The Panel must compare the competitively neutral price submitted by the In-house team against the price submitted by external parties.

14 STRUCTURE AND CONTENT OF EVALUATION PANEL REPORT

The Senior Procurement Officer or the Responsible Officer, as directed by the Chief Executive Officer shall, on behalf of the Evaluation Panel, prepare an Evaluation Panel Report at the conclusion of their deliberations.

The content of the Evaluation Panel Report shall include but not be limited to at least the following information:

The contract number and description;

The closing date of the Tender (or EoI Submission);



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The date for practical completion of the Contract Works (if applicable);

The names and addresses of those parties who submitted a Tender (EoI Submission);

The names only of those parties who lodged a late tenders;

The names of all members of the Evaluation Panel;

The evaluation criteria and methodology used to evaluate the Tenders (or EoI Submissions);

A summary of the Panel Evaluation in respect to each evaluation criterion for each conforming Tender (or EoI Submission; and

The name of the preferred Tenderer (or EoI Submitter) and the (estimated) value of the contract sum.

Each Evaluation Panel member must sign the Report which shall be submitted to the Chief Executive Officer.

The Evaluation Panel Report must be retained in the Records File for the Tender Phase of the particular procurement process.

A template for the Evaluation Panel Report is provided in the Appendix to this Manual.

15 CONFIDENTIALITY OF EVALUATION PANEL REPORT.

An Evaluation Panel Report will contain information of a commercial-in-confidence nature that must not be made available to, or discussed by, any person other than for the purposes of evaluating Tenders (or EoI Submissions).

Where an In-house bid has been received, a copy of the report must not be made available to any staff member involved with the preparation or submission of the in-house bid.

The protocol to be observed when Council is considering the award of tenders is that the Evaluation Panel Report will be held by the Chief Executive Officer for the information of Councillors.

Evaluation Panel Reports are considered to be exempt documents under Section 38A of the Freedom of Information Act (1982). Access to any report shall only be provided following written permission from the Chief Executive Officer.

The Evaluation Panel Report must not be made available to members of the public, any Tenderer (or Submitter), or any staff member unless authorised by the Chief Executive Officer by Memorandum directing the parties to whom and the extent to which the Evaluation Panel Report shall be made available.

A copy of this Memorandum must be retained in the Records File for the Tender Phase of the particular procurement process.

16 REPORTING TO COUNCIL

The recommendations of the Tender (or EoI Submission) Evaluation Panel must be advised to the Chief Executive Officer and reported to Council.

The Evaluation Panel Report (signed-off by panel members) shall be submitted to the Chief Executive Officer.



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The Responsible Officer shall prepare a draft of the report to Council (in the required format) in respect to consideration of tenders. The draft report must reference the recommendations of the Evaluation Panel and make a recommendation(s) to Council in regard to award of a contract. The draft report to Council shall be forwarded to the Chief Executive Officer and the Chief Executive’s Assistant – Governance/Insurance for review.

To preserve commercial-in-confidence matters the Agenda for the Council Meeting at which the report is intended to be considered will list the report for consideration but will not contain the report. The report will be provided to Council at the Council Meeting.


SECTION VI – CONTRACT PHASE

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SECTION VI CONTRACT PHASE

Table of Contents

1 GENERAL ...................................................................................................................... 50

2 AWARD OF CONTRACTS BY COUNCIL RESOLUTION ....................................... 50

3 AWARD OF CONTRACTS BY DELEGATED AUTHORITY .................................... 50

4 NOTIFICATION OF AWARD OF CONTRACT ......................................................... 51

4.1 UNSUCCESSFUL TENDERERS (OR SUBMITTERS)......................................................... 51

4.2 SUCCESSFUL TENDERER (OR SUBMITTER) ................................................................. 51

5 APPOINTMENT OF CONTRACT SUPERINTENDENT AND SUPERINTENDENT’S REPRESENTATIVE .................................................................... 52

5.1 CONTRACT SUPERINTENDENT .................................................................................. 52

5.2 SUPERINTENDENT’S REPRESENTATIVE(S)................................................................. 53

6 INITIAL CONTRACT MEETING ............................................................................... 53

6.1 GENERAL ................................................................................................................... 53

6.2 AGENDA FOR INITIAL CONTRACT MEETING ............................................................. 53

6.3 MINUTES OF INITIAL CONTRACT MEETING .............................................................. 54

7 POSSESSION OF SITE OR AUTHORITY TO COMMENCE SERVICE PROVISION ........................................................................................................................... 54

8 CONTRACT SECURITIES ........................................................................................... 55

9 MANAGEMENT AND MONITORING OF CONTRACTS FOR WORKS, SERVICES AND/OR GOODS PROCUREMENT .............................................................. 55

9.1 GENERAL PERFORMANCE MONITORING ................................................................... 55

9.2 PAYMENT OF PROGRESS CLAIMS ................................................................................ 56

9.3 MANAGING COUNCIL’S BUDGET ................................................................................ 56

10 CONTRACT VARIATIONS .......................................................................................... 56

11 CLAIMS FOR EXTENSION OF TIME ....................................................................... 57

12 SPECIAL PROCEDURES IN RESPECT TO WORKS PROCUREMENT CONTRACTS ......................................................................................................................... 58

12.1 PRACTICAL COMPLETION .......................................................................................... 58

12.1.1 Certification ........................................................................................................ 58

12.1.2 Contract Security ................................................................................................ 58

12.2 DEFECTS LIABILITY PERIOD ...................................................................................... 58

12.3 FINAL COMPLETION .................................................................................................. 59



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12.3.1 Claim for Final Payment .................................................................................... 59

12.3.2 Final Certificate .................................................................................................. 59

12.3.3 Final Payment and Return of Contract Security ................................................ 59

12.3.4 Record of Actions Taken.................................................................................... 59

13 DISPUTES ...................................................................................................................... 60



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SECTION VI CONTRACT PHASE

1 GENERAL

The Contract (EoI) Phase comprises the activities from the award of a contract to final completion of the procurement. The procedures relating to these activities and tasks are detailed hereafter in chronological sequence.

The Senior Procurement Officer must ensure that Council’s Records Department assigns a File Number for the Contract Phase of a particular procurement.

2 AWARD OF CONTRACTS BY COUNCIL RESOLUTION

The Council must by resolution at a Council Meeting award all Contracts that exceed $100,000 in value and all Contracts for which an In-house Bid was submitted regardless of the value of the Contract.

The Responsible Officer must prepare a report for consideration by Council using the established report format.

The report to Council –

(a) must include details of:

the works, services and/or goods to be procured;

conforming and non-conforming Tenders (or EoI Submissions) received;

any late Tenders (or EoI Submissions);

salient aspects of the evaluation;

the evaluation panel’s recommendation(s); and may recommend (b) award of a Contract for the particular procurement; or (c) that no Contract be awarded but must detail by what alternative means the works, services

and/or goods are intended to be procured.

The report to Council will be listed for consideration on the Agenda for the next available Council Meeting. To preserve confidentiality and maintain probity the Agenda will not contain the report or the recommendations therein. (The methodology for presentation of the report to Council will follow present protocols details are to be included in the Final Draft of this Manual). The content of this paragraph must be checked with the Chief Executive Officer.

3 AWARD OF CONTRACTS BY DELEGATED AUTHORITY

Pursuant to Section 98 of the Local Government Act (1989) a Council has power to delegate certain of their powers, duties or functions to a member of its staff. Council may exercise its power to delegate the award of contracts subject to such limitations as it determines.

Buloke Shire Council has exercised its powers and delegated the power and authority to award contracts to the Chief Executive Officer.

Pursuant to the instrument of delegation the Chief Executive Officer has authority to accept the recommendation of the Evaluation Panel and award a Contract (except any Contract for which an In-house Bid is tendered) where the estimated value of the contract sum of is not greater than $100,000 (inclusive of GST).



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The Responsible Officer may request or recommend the exercise of delegated authority to the Chief Executive Officer in respect to a procurement satisfying the aforesaid constraints by written Memorandum. The Memorandum to the Chief Executive Officer must detail the matters set out in 4.5.1(a) herein and may recommend as provided in 4.5.1(b) or (c) herein and must be retained in the Records Files for both the Tender and Contract Phases of the particular procurement process.

The Chief Executive Officer will by Memorandum to the Responsible Officer advise the nature and extent to which delegated authority has been exercised in respect to the award or otherwise of. A copy of this Memorandum must be retained in the Records File for both the Tender and Contract Phase of the particular procurement process.

Templates of the above Memoranda are included in the Appendix to this Manual.

At the next available meeting of the Council the Chief Executive Officer will present a report which details the delegated authority exercised. The report must include as a minimum the following information:

contract description and number; closing date of Tenders (or EoI Submissions); expiry date of the contract (if applicable); names and addresses of those who submitted a Tender (or EoI Submission); names only of those individuals or companies who lodged any late or non-conforming Tender

(or EoI Submission); and name of the successful Tenderer (or Submitter) and the contract sum or estimated value of the contract.

4 NOTIFICATION OF AWARD OF CONTRACT

The Responsible Officer is responsible to ensure that all Tenderers (or Submitters) are advised of the award of a contract. These advices must be in writing and be provided as soon as practicable after the contract is awarded.

4.1 UNSUCCESSFUL TENDERERS (OR SUBMITTERS)

The advice to unsuccessful tenderers (or submitters) must include the name of the successful Tenderer (or Submitter) and the contract sum and the letters must be retained in the Records File for the Tender Phase of the particular procurement process.

A pro-forma letter of advice to unsuccessful tenderers is included in the Appendix to this Manual.

4.2 SUCCESSFUL TENDERER (OR SUBMITTER)

The letter to the successful Tenderer (or Submitter) advising the award of the Contract is a very important document because it is prima facie evidence that a Contract has been entered. A copy of the letter of award must be retained in the Records Files for both the Tender and Contract Phases of the particular procurement process.

The letter of award –

(a) must include as a minimum the following details:

Contract description and number;

the Contract Sum;



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a schedule of prices including Provisional Sums and Provisional Quantity Amounts comprising the Contract Sum;

Council’s Official Order;

the name of and contact details for the Superintendent of the Contract;

date, time and venue of an Initial Contract Meeting; and

Agenda for an Initial Contract Meeting; and (b) may include the grant of possession of site (works procurement contracts).

A pro-forma letter of advice to successful tenderers is included in the Appendix to this Manual.

From this point until the Contract is finalised the successful tenderer must be referred to as the Contractor.

There are several important matters included in the letter of award that demand careful consideration and preparation and are specifically provided for hereafter.

5 APPOINTMENT OF CONTRACT SUPERINTENDENT AND SUPERINTENDENT’S REPRESENTATIVE

5.1 CONTRACT SUPERINTENDENT

The Superintendent has a unique quasi-judicial role in the Contract. The Superintendent is appointed by the Principal but must exercise fairness, equity and probity in fulfilling his/her role in dealings with both the Principal (Council) and the Contractor under the Contract.

Accordingly it is important that Superintendents are suitably experienced, practical and qualified people well versed in contract law and with good organisational and communication (written and verbal) skills.

The Responsible Officer must by way of a Memorandum to the Chief Executive Officer recommend a person for appointment as Superintendent (or a group of several people from whom a Superintendent may be appointed).

If the Chief Executive Officer determines that the role of Superintendent is to be undertaken by a member of Council’s staff the appointment must be confirmed in a written Memorandum to the appointee, the Senior Procurement Officer and the Responsible Officer.

If the Chief Executive Officer determines that the role of Superintendent is to be undertaken by a person who is not a member of Council’s staff the determination must be confirmed in a written Memorandum to both the Senior Procurement Officer and the Responsible Officer.

The Senior Procurement Officer, or Responsible Officer, as nominated by the Chief Executive Officer must by letter confirm an external appointment as Superintendent. The letter of appointment must state the terms of engagement.

A copy of all correspondences relating to the appointment of a Superintendent must be retained in the Records File for the Contract Phase of the particular procurement process.



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5.2 SUPERINTENDENT’S REPRESENTATIVE(S)

The Superintendent may pursuant to most generic General Conditions of Contract appoint by letter of delegation a Superintendent’s Representative (or Representatives) and if such an appointment is made the Superintendent must advise the Contractor in writing of the appointment including the extent of the delegation.

A typical Letter of Appointment and Delegation and a typical Letter Advising Appointment of a Superintendent’s Representative are provided in the Appendix to this Manual. It is important to understand that the content of these letters reflects the General Conditions of Contract and Specification (or Project Brief) for each particular procurement contract. Accordingly these typical letters can and must be adapted to best fit the particular procurement contract.

A copy of all correspondences relating to the appointment of a Superintendent’s Representative must be retained in the Records File for the Contract Phase of the particular procurement process.

6 INITIAL CONTRACT MEETING

6.1 GENERAL

The Initial Contract Meeting establishes the basis of communication and records the agreed outcomes of discussions in respect to each Agenda Item and must be arranged by the Senior Procurement Officer or the Responsible Officer as soon as possible after the award of a Contract.

The meeting will usually be chaired by either the Senior Procurement Officer or the Responsible Officer as agreed between the officers or as directed by the Chief Executive Officer.

6.2 AGENDA FOR INITIAL CONTRACT MEETING

The Agenda for the Initial Contract Meeting shall make provision for –

(a) the following details:

Contract Number and Contract Description;

Contractor’s name and address;

Date and time of meeting and venue details; and

Attendance anticipated; and (b) should include as a minimum the following Agenda Items for consideration:

Formal Deed of Agreement;

Contract Security;

Contractor’s Insurances;

Contract Commencement Date;

Possession of site (very important in works procurement contracts);

Contractor’s working hours;

Contract Duration (in works procurement contracts this is the Date of Practical Completion which is very important);

Program for Delivery of the procurement under Contract;

Contractor’s Representative(s);

Documents to be supplied by Principal (the Council);

Contract Superintendent and Superintendent’s Representative (if any);



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Sub-contractors;

Progress payments;

Variations;

Claims for extras;

Quality Systems;

Occupational Health and Safety;

Industrial Relations;

Important Contract specific matters; and

General Business including provision for matters raised by the Contractor and Other Matters.

The above Agenda Items include important matters which are required to be addressed prior to commencement of either Works or Services procurement Contracts and will subject to adaptation have relevance to Goods Procurement contracts.

The relevant Contract, Specification or Project Brief Clause and the expected outcome should be included for each Agenda Item.

A copy of the Agenda for the Initial Contract Meeting must be retained in the Records File for the Contract Phase of the particular procurement process.

A typical Agenda for an Initial Contract Meeting is provided in the Appendix to this Manual. It is important to understand that this Agenda must reflect the General Conditions of Contract and Specification (or Project Brief) for each particular procurement contract. Accordingly the typical Agenda can and must be adapted to best fit the particular procurement contract.

6.3 MINUTES OF INITIAL CONTRACT MEETING

The Chairperson must record the Minutes of the Initial Contract Meeting and distribute by letter a copy of the minutes to the parties to the Contract (Council being the Principal and the Contractor), the parties present at the meeting and the Chief Executive Officer.

A copy of the Minutes of the Initial Contract Meeting and the Letter of Distribution must be retained in the Records File for the Contract Phase of the particular procurement process.

A typical Minutes of Initial Contract Meeting document and Letter of Distribution are provided in the Appendix to this Manual. It is important to understand that both the Minutes and the Letter must reflect the General Conditions of Contract and Specification (or Project Brief) for each particular procurement contract. Accordingly the actual Minutes and the Letter can and must be adapted to best fit the particular procurement contract.

7 POSSESSION OF SITE OR AUTHORITY TO COMMENCE SERVICE PROVISION

A contract for the procurement of works will require that Principal gives the Contractor possession of the site sufficient to undertake the work under contract.

The Responsible Officer is responsible to issue to the Contractor a letter giving possession of the site –

within the time frame stated; but



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subject to the Contractor satisfying the pre-commencement requirements of the Contract detailed in

– the General Conditions of Contract and/or the Specification.

In similar vein the Responsible Officer will, for a service provision contract, issue to the Contractor a written authority to commence the particular service –

within the time frame stated; but

subject to the Contractor satisfying the pre-commencement requirements of the Contract detailed in

– the General Conditions of Contract and/or the Specification (or project brief).

Copies of letters giving possession of the site or authorising commencement of a particular service must be retained in the Records File for the Contract Phase of the particular procurement process.

8 CONTRACT SECURITIES

Ensure that the Contract Security for a particular contract in the form required under the General Conditions of Contract is arranged, or given or paid by the Contractor to the Principal (the Council) preferably prior to work commencing otherwise prior to or as part of the first progress claim.

A Register of Contract Securities (be they, unconditional Bank Guarantees, Bank Cheques held in escrow, cash payment, or retention amounts) must be prepared and maintained to record and track the receipt, release and return of Securities.

The preparation, monitoring and management of this Register is the responsibility of the Finance Manager after liaison with the Chief Executive Officer.

A copy of the Register of Contract Securities must be held in Council’s Records.

9 MANAGEMENT AND MONITORING OF CONTRACTS FOR WORKS, SERVICES AND/OR GOODS PROCUREMENT

9.1 GENERAL PERFORMANCE MONITORING

It is important for the successful outcome of any procurement under a Contract that the Responsible Officer and the Superintendent regularly liaise in respect to the performance of the contract.

Unless the Responsible Officer is also the Superintendent he/she will have no direct control over the Contractor.

The Responsible Officer must regularly liaise with the Superintendent and deal with any contractual matters raised by the Superintendent that require a response from the Principal (the Council).

Prior to commencement the Contractor must satisfy the pre-requisite and itemised requirements detailed in the Contract and listed under Agenda Items for the Initial Contract Meeting.

The Superintendent (or the Superintendent’s Representative) shall pursuant to the powers ascribed under the General Conditions of Contract and/or to the extent delegated in a letter of delegation monitor – the execution of the works; and/or the provision of services; and/or the supply of goods – to ensure compliance and/or conformity with the time frames and qualitative and quantitative standards detailed in the specification or project brief pursuant to the provisions of the Contract.



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The interaction between the Superintendent and the Contractor and the Superintendent and the Principal (the Council) are established under the General Conditions of Contract and should be strictly adhered to by the parties to the Contract.

Details of all actions, correspondences and outcomes in terms of general performance must be documented by the Superintendent or the Responsible Officer as the case requires and retained in the Records File for the Contract Phase of the particular procurement process.

9.2 PAYMENT OF PROGRESS CLAIMS

The Superintendent shall – if satisfied that the contractor has discharged its obligations under the contract in conformity with the terms, conditions and specification (or project brief) of the contract – certify to the Principal (the Council) namely the Responsible Officer that any claim for payment submitted by the Contractor is due and payable.

A copy of the Contractor’s Claim for payment together with the written advices of the Superintendent in respect thereto must be retained in the Records File for the Contract Phase of the particular procurement process.

The Responsible Officer must by arrangement with the Superintendent prepare a Certificate authorising payment of any Progress Claim submitted by the Contractor. The Superintendent and the Responsible Officer must both execute the Certificate authorising payment of any claim. Certifications must be issued in triplicate – the original will be forwarded to the contractor; a copy will be forwarded to the Finance Manager for payment; and the other copy must be retained in the Records File for the Contract Phases of the particular procurement process.

A template of the Progress Certificate and associated Variation Certificate and Payment History and templates of advisory memorandums to Council’s Finance Department and the Contractor regarding payments are included in the Appendix to this Manual.

The General Conditions of Contract will usually provide a time-frame for the Superintendent to evaluate a claim for payment submitted by the Contractor and it is particularly important to understand that the General Conditions of Contract will provide a time frame within which the Contractor must be paid subsequent to the claim being certified by the Superintendent. Accordingly the Responsible Officer must ensure that the Certification provided to the Finance Manager satisfies established protocols.

9.3 MANAGING COUNCIL’S BUDGET

In the event of a likely budget over-run the Responsible Officer must, by Memorandum, advise the Finance Manager and the Chief Executive Officer immediately the extent of the over-run is quantified.

A copy of this Memorandum must be retained in the Records File for the Contract Phase of the particular procurement process.

10 CONTRACT VARIATIONS

The Council must authorise all variations to the contract which will alter the (estimated) contract sum by more than $50,000 (inclusive of GST).

Delegation levels for the approval in authorising smaller variations are as follows:



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Chief Executive Officer - who has delegated authority to approve any one variation up to $50,000 (inclusive of GST), provided that the new (estimated) contract sum is no larger than the contract sum by $50,000 (inclusive of GST) for the current financial year.

Responsible Officer or Senior Procurement Officer

- who have delegated authority to approve any one variation up to $10,000 (inclusive of GST), provided that the new (estimated) contract sum is no larger than the contract sum by $10,000 (inclusive of GST) for the current financial year.

The Principal (the Council via the Responsible Officer) may authorise the Superintendent to initiate negotiations for a variation to a Contract. The proposal for a variation will be submitted to the contractor in writing by the Superintendent inviting consideration by the Contractor and its response in regard to any additional (or reduced) costs to the Contract Sum and any impacts on the time for practical completion.

The Superintendent will evaluate the Contractors response and submit it to the Principal together with any comments he /she may wish to make.

The Contractor’s response shall be considered by the Council or as delegated above.

If approved the Principal (the Council via the Responsible Officer) will authorise the Superintendent to advise approval of the variation to the Contractor in writing including details of the impact on the Contract Sum and the time for completion of the Contract.

Details of all actions taken, correspondences and outcomes in respect to each variation must be documented by the Superintendent or the Responsible Officer as the case requires and retained in the Records File for the Contract Phase of the particular procurement process.

Templates of a letter to Contractor Proposing a Variation and a letter to Contractor Approving a Variation are included in the Appendix to this Manual however it is important to recognise that a variation is unique and to ensure that all correspondences are appropriate.

11 CLAIMS FOR EXTENSION OF TIME

Any claim for an extension in time must be evaluated by the Superintendent in accordance with the provisions in the General Conditions of Contract and the Specification (or Brief) and any extension deemed appropriate by the Superintendent shall be advised to both the Council and the Contractor. Any approval must be in writing and a copy forwarded to the Contracts Manager.

Details of all actions taken, correspondences and outcomes in respect to a claim for extension to time must be documented by the Superintendent or the Responsible Officer as the case requires and retained in the Records File for the Contract Phase of the particular procurement process.



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12 SPECIAL PROCEDURES IN RESPECT TO WORKS PROCUREMENT CONTRACTS

The following procedures will apply in respect to Contracts for the procurement of works.

12.1 PRACTICAL COMPLETION

12.1.1 Certification

Pursuant to the General Conditions of Contract the Superintendent must certify the date of practical completion by written certification issued to the Principal (the Council via the Responsible Officer) and to the Contractor.

The certificate is an important document because the certified date of practical completion triggers the commencement of the defects liability period of the Contract and will also be used in the event that the Principal (the Council) pursues the Contractor for payment of liquidated damages.

A copy of the certificate of practical completion must be retained in the Records File for the Contract Phase of the particular procurement process.

An example the Certificate of Practical Completion and covering letter to the Contractor is included in the Appendix to this Manual.

12.1.2 Contract Security

The issue of a Certificate of Practical Completion also triggers adjustments to the Contract Securities held by Council usually by a reduction of 50%.

The Responsible Officer in conjunction with the Finance Manager and/or Records Management will reduce the Contract Security held in respect to a particular Contract by returning to the Contractor any security which the Principal (Council) is no longer entitled to hold.

The Finance Manager must amend the Contract Securities Register to record the adjustment(s) made.

The covering letter sent to the Contractor (refer SECTION VI sub-clause 12.1.1 above) provides for advice to the Contractor regarding return of securities. If the security is in the form of a Bank Guarantee or Bank Cheque held in Escrow and is to be returned in part or in full a letter to the issuing bank is also required and examples of these types of letter are included in the Appendix to this Manual.

Details of all actions taken, correspondences and outcomes in respect to adjustment of Contract Security must be documented by the Finance Manager, or Records Management or the Responsible Officer as the case requires and retained in the Records File for the Contract Phase of the particular procurement process.

12.2 DEFECTS LIABILITY PERIOD

The Superintendent (or Superintendent’s Representative) is responsible to ensure that all defects and any minor omissions are notified to the Contractor as provided to in the General Conditions of Contract and that these defects are satisfactorily rectified within the time-frame determined by the Superintendent (or Superintendent’s Representative)under the terms of the Contract.



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The General Conditions of Contract provide remedies available to the Principal in the event that the Contractor fails to rectify defects or to rectify defects within required time-frames.

Details of all actions taken, correspondences and outcomes in respect to rectification of defects must be documented by the Superintendent, Responsible Officer or Records Management as the case requires and retained in the Records File for the Contract Phase of the particular procurement process.

12.3 FINAL COMPLETION

12.3.1 Claim for Final Payment

After the end of the defects liability period and within the time limits prescribed in the General Conditions of Contract the Contractor must give to the Superintendent a Final Payment Claim together with all other claims in connection with the Contract.

12.3.2 Final Certificate

Within the time limits prescribed in the General Conditions of Contract the Superintendent must issue a Final Certificate evidencing all moneys finally due and payable on any account (either Council or Contractor) under the terms of the Contract.

A copy of the final certificate must be retained in the Records File for the Contract Phase of the particular procurement process.

An example the Final Completion and covering letter to the Contractor is included in the Appendix to this Manual.

12.3.3 Final Payment and Return of Contract Security

Within the time limits prescribed in the General Conditions of Contract all moneys owing to the Contractor including Contract Securities shall be paid and/or returned as the case requires. Conversely all moneys owing to the Council shall be paid.

Remedies are prescribed under the General Conditions of Contract in respect to default by either the Contractor or the Council.

The covering letter sent to the Contractor (refer SECTION VI sub-clause 12.3.2 above) provides for advice to the Contractor regarding return of securities. If the security is in the form of a Bank Guarantee or Bank Cheque held in Escrow and is to be returned in part or in full a letter to the issuing bank is also required and examples of these types of letter are included in the Appendix to this Manual.

12.3.4 Record of Actions Taken

Details of all actions taken, correspondences and outcomes in respect to rectification of defects must be documented by the Superintendent or Responsible Officer as the case requires and retained in the Records File for the Contract Phase of the particular procurement process.

The Finance Manager must amend the Contract Securities Register to record the final adjustment(s) made.



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13 DISPUTES

In the event of a dispute between the Contractor and the Superintendent the Chief Executive Officer, the Superintendent, the Responsible Officer and the Contractor shall negotiate on a without prejudice basis in an endeavour to resolve the matter(s) in dispute. If the dispute remains unresolved after this initial negotiation then the dispute resolution mechanism detailed in the General Conditions of the Contract shall be initiated.

Details of the nature of the dispute and the actions taken to resolve the dispute including and written information submitted by the Superintendent and/or the Contractor must be documented by the Responsible Officer and a copy retained in the Records File for the Contract Phase of the particular procurement process and is the responsibility of the Responsible Officer.