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Module 2

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97 views

Module 2

Uploaded by

LaiTinYat
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© © All Rights Reserved
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BXSURCOTraining a BiAsiaPacific@ © NEG PRO) Presented by Dr. Brenda Yip PRO MIE MHS MRICS M08 MHKICM MCICES RPE MODULE TWO - Tenders, Documents, Project Setup 2a eae es [Sine fon someone bck sean peal ‘nosed ay bcp nose mon pomason et OES na : BeAsiaPacific OF Certiea NEC Profesional Training Course (CNPC-190712) Mode 2 copii fe i fees loge orn ee tine eid y BE SURCO La ‘ty yep nay yee iy ue py tw he wen prion BE SURED a BXSURCOTraining Module 2 - AGENDA Certified NEC Professional Training Course (CNPC-190712) Mode 2 [Staph oor na, nse ah ft nts wooed re ing dy BK RCO Ld ‘ity bp ar way odin yb ly hoe en peso oF SURO La. BXSURCOTraining “+ Datos Na -Mirthing and» Proper Tender Docent Batnng Chet Obectra” ” LetotconrsconiSoppies + Establish Budget Funding for» Prepare Evalution Mods theplanned expenditure, sue nvtations to Tender and + Establish Project Team (Note "Documents potential for EC Receive and Evaluate tender = Agree Project Procurement post render Strategy "How to Procure the naaeisten eay Negotiton/oscusincaie + Develop Project Requirements + Finals /Confiem Svategy Contact Aword ; Bence CCertied NEC Profesional Training Course (CNPC-190712) Module 2 {© Cpint tne ss ne it the townie ein at ne eed y BE SURCO LA ‘diay myst rote ya odin pe dig wate ten ea oR SURCD Ua BXSURCOTraining NNEC/ECC Tender Documents ECC printed documents - Incorporated by reference Instructions to Tenderers — including AS Form of Tender ~ Client drafted ( example Guide Notes) Contract Data Part One Contract Data Part Two ~ proforma for tenderer completion Bill of Quantities ( Options B & D) ‘Scope ~ Contractor's baseline for CE's Site Information ~ Contractor baseline for CE's Health and Safety Plan (usually required) fi BxAsiapocic OS LA NS eee NEC Tendering 1 Open tendering ~ Bid quality Selective tendering - recommended + Negotiation — Probity/Governance issues + Framework ~ Long term intermittent works + Single stage ~All works 1» Two Stage - Part works, second stage as design progresses . BeAsiaracic OE (Ceried NEC Profesional Tralning Course (CNPC-190712) Module 2 BXSURCOTraining NEC Tendering 2 et E » Selective Tendering + Invite expressions of interest ~ open or restricted lst + Outine briefing documentation for tenderer information + Conduct Contractor briefing meetings include info on Nec + Receive iil ET submissions ~ Approach, Fee levels, Staffing, Programme, Risks, Design inputs, Track core + Filter and select List of 5/6 contractors for tender or 3/4 for Design and Build + Assign adequate tender period or Contractor selection Beasiaratic OE ‘Certied NEC Professional Talning Course (CNPC-190712) Module 2 ‘cipro oe ie ahi ee onic ein we ini ei ty BRSURCO tl sn my tbe n ay ne ay gy woe wie ein =f BK SUROO Le BXSURCOTraining NEC3/4 ECC Contract Structure and Options ECC Option A Uses where = Scope is well-defined and fixed » BQ cost, preparation and complexity not required » Limited Change is anticipated » No payment to Contractor for quotations » SSCC can make S/C pricing complex. » Firm outturn cost is required » Where low Client Price-Risk is important » For Design and Build '» Where Design is Secondary to Function/Cost BeasararcOS al Training Course (CNPC-190712) Module 2 toons hin ome ign ei y 3 SURCO Lat pay et tan prise of A SURED Li {Scop fe es BXSURCOTraining Ea ECC Option B Uses where » Client wishes to retain control of design development Traditional competitive procurement required with Visibility on tender differences + Firm price is required but some design-development ‘quantity changes are anticipated » Relatively low risk projects with limited change » Client requires a BQ for tender comparison/cost control/forecasting purposes » Not recommended where extensive design change is anticipated . Bensiaractic OS GR ECC Option C Uses Where the Works scope cannot be fully defined at Tender and change is expected = Where the works are complex and risky '» Where the Client wants to engage the Contractor in creating design/material options for mutual benefit » Where 2 reliable budget can be produced and risk/opportunity can best be managed by a combined Contractor/Client team working together . BeAsroctic OG Certified NEC Professonal Training Course (CNPC-199712) Module 2 (Oconee na no iw rt be nao ang ain eng by BKSURCO tal shy mynediad we tes em BK SURCO La BXSURCOTraining ECC Option D Uses ‘Where the Works extent cannot be fly defined at Tender ard some design development is expected ‘Where the Client quires a greater degree of certainty a5 tothe key accuracy ofthe inal Target than with an AS Where the bulk ofthe works are Cllent-designed Where the Client wants to engage the Contractor in rating ‘desig mateil options for mutual Benefit ‘Where a reliable budget using an approximate BQ can be produced and rsk/oppertunity cn best be managed by & ‘Combined Contractor/Client team working together ‘Where a 8 has been prepared and the Clients prepared to take-on the budgetary risk of changes in quantities : Bersiaraciic OS Po rea eae) ECC Option E Uses Where works definition is particularly uncertain ‘Where an early start/completion to construction required Where time to complete, work quality or safety is more relevant to project success than cost certainty (often used’ in conjunction with early completion onus) eg. revenue generating projects such as. ‘gaming hall trading floors and high risk works For emergency works For works of a unique or specialist nature BeAsiaraciic OS raining Course (CNPC-190712) Module 2 BXSURCOTraining ECC Option F Uses where ‘There can be time/cost/performance benefits from using ‘the experience and services of a management contractor Where the Client does not have the resources or ‘experience to directly manage a contract, and a Main Contractor is required to do certain works Where competitive procurement is required, not all design packages have been finalized and an early start fn site is required Where Client wishes to retain single-point responsibility for timely completion BeAsiaacrc OF, ECC Short Contract Structure Retains NEC format/philosophy in much simplified form Mutual Trust and Co-operation and Ery Warnings {dea for well defined werk cope with minimal interfaces Use not determined by value but complesity Underused and merits wider usage : BeAsiorainc OF CCertied NEC Professional Training Course (CNPC-190712) Module 2 {Copii fame, no ah ofthe rs owned i a nig icine K SURCD Lk BXSURCOTraining NEC ECC Contract Secondary Option Clauses Only “secondary” in terms of their inclusion will be considered after Primary selection of main contract option. Not lesser clauses (no order of precedence) Pre drafted options of which one or all may be selected Wide range of important matters Can significantly alter balance of contractual risk Details contained in Contract Data Part One BinsirecicOS | NEC ECC structure Secondary Option Clauses + XA. Price adjustment fori Reduces Contractor Risk For Options A-D only For E&F Cost reimbursable contracts Cli Conventional formula/index based fluctuation clause For C&D inflation adjustments increase Target Source of Data in Contract Data together with proportions Base date is normally 4 to 6 weeks before latest tender date ‘Non adjustable element = Worked examples in Guidance Notes _ BtAsiaPainc (Ceritied NEC Profesional Training Course (CNPC-190712) Mode 2 ‘Scone ac, no if mt colo’ rein 9 SURED Lot Sndey yt el ny al yay wit er wre ein OK SURCD Lk BXSURCOTraining NEC ECC structure Secondary Option Clauses X2- Changes in the law Removes Contractor risk of changes in law which occur after the Contact Date which become compensable CE Only changes which affect Contractor costs Examples: employment tax, MPF, import duties Lams defined in guidance notes (authoritative? ~ See Page 1 ‘of Guidance Notes) Change becomes compensation event Not used under latest government Z clauses * Bensiaractic OS | NEC ECC structure Secondary Option Clauses 1X3 - Multiple currencies Reduces Risk of Currency Fluctuations Used only with Options A & 8 ‘Based on World Bank procedure for development funded projects Protects Contractor from post contract currency rate changes For Options C&D covered in Main Contract Clauses Sets out payments in overseas currencies and exchange rates ‘Adjustment may be required where used with Option . BeAserectc OG ‘Course (CNFC-190712) Module 2 (© Cpipfte sens igh e atiswnid n tinngeeid ySURCO ta ‘edhe atte mated aya or dina pe gy wi i on masce f SURCO La BXSURCOTraining Perc NEC ECC structure Secondary Option Clauses X4~ Ultimate Holding (Parent -NEC3) Company Guarantee Reduces Client Rsk Client protection against default of Contractor which isa subsidiary company ofa larger corporate entity, PCG Should be provided by Contract Date If not provided within four weeks ofthis date then PM can notify of default Scope provides format of PCG Can be separately priced ifneeded * BeAsiePactic OS NEC ECC structure GeconfanOnvontcleuses gD Fe Son Conplecen Facilitates multiple separate completion dates with disincentives for non completion ‘Should be included when Client requires parts of works to 'be completed in advance of main completion Parts called sections defined in CD1 Client takes on risk of loss or damage upon taking over Different to Key Dates aso set out in CD1 which do not represent sectional completion (CDi also defines bonus and or damages applicable BeAsiaradticOS Certifed NEC Professional Training Course (CNPC-190712) Module 2 Cait i fa at a a aso indy SCO BXSURCOTraining NEC ECC structure Secondary Option Clauses X6 - Bonus for early Completion Used where Completion as eal as possible would benet Used to financially motivate the Contractor Contractor may also benefit from reduced prelims Can be cost-neutal for Clients on Target Cost Contracts Used for full Completion or Sections Bonus figure stated at rate per day ‘Completion needs tobe well defined Payable on completion or taking over whichever i earlier . BeAsiaPaciic OE NEC ECC structure Secondary Option Clauses X7 - Delay damages Pre-ascertaned damages payable by Contractor for delays in achieving Completion Motivates contractor to complete timeously, but increases risk and ‘can reduce cllaboration Payable on completion or taking ver whichever serie {not incuded then genera (united) damages would apply ‘Should be genuine pre-estimate of los (nota penalty) 1W Option X7 is included but no gure included (or ‘i then damages may not be recoverable If damages levied but completion date changed later then damages repayable with interest 7 Bensiarctic OG Certified NEC Professional Training Course (CNPC-I90712) Module 2 (hpi tne ns ns he the ip fe ho oi enti tn by BE SURCO tal BXSURCOTraining NECA - New Secondary Options Subcontractors ‘+ X9=Transfr of Rights (NECA Only) ‘ocho + X10~Information Modeling (NECS Only) + Provisions for the introduction ofan Information Contactor to achieve the Mode! + Changes tothe Plan due to CEs are reimbursable + AL Termination By Client (NECS Only) Cause. NEC ECC structure ‘Secondary Option Clauses x12 - Multparty Collaboration (Partnering -NEC3) May include common faites, procedures ee May also include financial incentives inked to stat CCetied NEC Professional Training Course (CNPC-190712) Module 2 ‘Capit fen, hn 8 it fe son winged Oe we ‘tay psu any ay odin ps iy mt he en em > XB-Undertakings to the client or Others (NECA Only) + Provisions relating to Cllateral warranties fom Contactor and + Provisions for the Transfer of Right for designs and other matters project and the provision ofan information Execution Plan forthe + Allows Client to terminate fr any Reason Previously in Core ‘supplemental partnering arrangement for ports oan NEC Contractor eres of contract to enter int estuctured and ‘managed srangement for defiing/ocleuing common team goas Provision fr erss-contat goal setting and incentivsation Used fr partnering between more than two parties the Schedule of Parnes) onthe same projector programme of projects Partners work together to achive Clients objective Gr CD1) anda other Parnes’ objectives in a spirit of mutual trust and co-operation Partnering information referenced in CD orin an instruction Model ofthe Bessie ted goals BeAsieracic OS, seca y 2 SURCO Lid BXSURCOTraining NEC ECC structure Secondary Option Clauses X13 - Performance bond Reduces Client sk but increases project cost Used whee Gent equies a fhanclgurate inthe event Should be provided by Contract Date If not provided within four weeks ofthis date then PM can notify of default ‘Scope provides format of Performance Bong Can be separately priced if needed NEC ECC structure ‘Secondary Option Clauses X14 - Advanced payment to the Contractor Intended to assist projec cashflow where Contractor has heavy investment at outset of project Reduces risk and cost to Contractor (but Advanced Payment bond) Eg. for major items of equipment “Amount stated in Scope Paid within 4 weeks of Contract Date or r, within 4 weeks of receipt of Advance Papyment bond (if required) Repaid in instalments asset out in CD1 picracrc$, ‘Certined NEC Professional Tralning Course (CNPC-190712) Modile 2 ‘Ocinrigo ow le ee ip oe mt one an et neg, tnd y BE SURCO tl sy mented ny a el yey wie le em SURED Ea BXSURCOTraining NEC ECC structure Secondary Option Clauses XA5 - The Contractor's Design (Limitation ofthe Contractors Tabiliy for his desig to reasonable sil and care ~ NEC3) Reduces Contractor liblity and rik for design faults and his ‘ongoing design lability insurance cost ‘otherwise desig lability could amount to fess for purpose State or reasonably infeed which sa higher standard 2X15 reduces Contractor lability and desig isk to reasonable sll ‘and care which ie mor incurable and lowers risk 1a design defect becomes apparent and the Contractor can show ‘he used reasonable sland cae in designing that part of the ‘rks then rectification would become 2 compensation event BAsiaci if NEC ECC structure Secondary Option Clauses X16 - Retention Used asa security for Client and additonal motivation for Contractor to complete the works. Increases supply chain costs Provisions forthe Client to retain a percentage of amounts due Retention-free amount option in CD Half retention released on Completion or take-over Final release in assessment following Defects completion BeAsiarsciic OE CCertited NEC Profesional Talaing Course (CNPC-190712) Modile 2 ‘Scop on 0 ir ah afte ts coed reat inl, ied by BK SURCO Ls BXSURCOTraining NEC ECC structure Secondary Option Clauses X17- Low performance damages Provides for liquidated damages inthe event of the Perfomance othe works nose ang to meet certain pre- stormed enter stated in the Scope Therefore the value of the completed works ess than cnginly agreed representing sles forthe Cheek £9, outputs of completed faites ‘Amounts and deals of Low Performance Damages are sated incor Should bea genuine pe-estimate of loss Increases contractor risk and motivates to ensure competed {acy meets pre-set performance rena : BeAsiaraitc OS NEC ECC structure Secondary Option Clauses ane Seana Pi Sn mi oe edness : BeasiraincOS (Certied NEC Profesional Training Course (CNPC-190712) Madule 2 ites et i fe te rd et i dy BESO a 7 BXSURCOTraining NEC ECC structure Secondary Option Clauses te X20~ Key Performance Indicators “Motivates Contractor to improve performance Establishes an incentive scheme for the achievement Client objectives by establishing clearly specified targets for Contractor and bonuses to be payable upon achievement Intended to act az an incentive for good performance Can be specified in CD1 or set out in Tender proposals. Not required where X12 is used Reporting procedure requires regular forecasts of achievement for monitoring purposes a BeAsiaraciic OS i NEC4 - New Secondary Options + X21-Whole Life Cost (NEC4 Only) Provides for Contractor to make Proposals for Reduction of Whole life Costin exchange fora changein the Prices and or CCompietion and Key Dates » X22 Early Contractor Involvement (NECA Only) + Formally published as a separate Guide + Allows for CI to be used with Options C and E + ECHis Stage 1 for which a budget s produced witha share cf Stage t savings + Client may appoint others fr Stage 2 . BeAsioPactic OS (Ceried NEC Profesional Training Coutse (CNFC-I90712) Module 2 iho yar ens ad rit ied SURO at BXSURCOTraining cx Use of Z Clauses a eau | @) Pema Saraki cone rene ea usually be required Cee ie ener arene ee Rebar ear aialand Fert hw tol be mre Se, fi of Module 2- AGENDA 1 one Satay 2 nctoptnsere i Beart O& fed NEC Profesional Training Course (CNPC-190712) Module 2 [con ft mans ns ara hep ther ree en mining seine by URED ‘ity ay tee ny my 19 BX See By een a. aS E BeAiaracic@E Assessing Tenders - NEC Guidance Notes +» Aim is to identify tenderer most likely to help Client to achieve his aims for the project - usually on time, within budget, safely and to the required quality standard » For design and construct tenders emphasis will be on Contractor's design » For construct only focus will be on methodology, construction efficiency, resource selection and usage and fee +» Essential for selection criteria to be set out in tender document . BeAsiaPacic Certied NEC Professional Training Course (CNPC-190712) Mode 2 ‘Sony ote nes se ra if tracfone i y 3K SURCO La {ost neon many ay ee ype yo rn prin of BH SURED Ei. BXSURCOTraining ECC Tender Selection Criteria +» Needs to be objective - Weighted Analysis including : = Bid Quality - Planning, Risk Analysis, Methods, Staffing Levels, Organisation Price - Overall Level, Consistency, Credibility » Collaborative Mindset - Open, Co-operative, Claims » Engineering/Design Quality Capability Value Engineering/Contractor Design + Project Track Record » Programme Quality » Safety, Environmental Record » Subcontractor Procurement a BeAsiaracic OS ol Successful NEC Tendering * Appropriate Main, Secondary Option selection Clear, unambiguous and fair risk allocation » Maintain Key NEC principles - Minimize Z clauses + Use Adjudication - Speedy DR and behavior mo« » Robust and comprehensive contract documentation » Contract Data and Scope - Get it ight + Initial programme, Early Warning Register with tender + Qualitative tender assessments: Staffing, Programme, Risk Appreciation, Track Record, Collaboration + Tender Interviews = Meet Site and Head Office management NEC Training and Awareness . Besar OS Ceried NEC Protesslonal Training Course (CNPC-190712) Module 2 ‘Sony fe nae oe a hei of ees ove ee ini eine y BK SURED Lt BXSURCOTraining Pe a Starting an NEC Project - Duties = Certain administrative issues will require immediate attention atthe start ofan NEC project. These include: + Execution of formal contrac agreement in accordance withthe agreed terms and documentation + fa communication sytem is specified inthe Scope then the ‘Contractor should implement the system in acordance withthe Scope requirements in order to salty the requirements of ‘louse 132 + PM to prepare Early Warning Register within one week and ‘onvere ft early warning meeting within two weeks ofthe Storing date in aecrdance wih 152, Therester meetings tobe held at intervals not longer than stated in CD1p79| + Contractor to undertake a review ofthe Scope and to advee on ‘the practcal implications ofthe design in accordance vith ‘lause 203 (Option CF) 7 Besar Porn Starting an NEC Project - Duties 2 + Certain administrative issues wil require attention atthe start of an NEC project. These include ; + Contractor to advise on subcontracting arrangements in ‘accordance with the Scope and Clause 203 (Option C-P.No time fame stated which may be amped in Scope as appropriate. + Contractor and PM to agree format of Defined Cost forecasting Inaccordance withthe provisions ofthe Scape and Conactarto Submit to PM as required by Clause 204 within the interval Stated in CD1pB1 after the staring date (C-) + Contractor to provide deta of his design asset out inthe ‘Stope fr acceptance by the PM in accordance with Cause 21.2 and approval by others in accordance with Clouse 272. The Contactor doesnot proceed with work that he designs uti accepted bythe PM b BeAsiaracic Certified NEC Professional Training Course (CNPC-190712) Module 2 ‘Cony ft me i te te wag he we lig, tad BE SURCO La BXSURCOTraining Starting an NEC Project — Duties 3 » Certain administrative issues will require attention atthe stat cof an NEC project. These include * PM to instruct and Contractor to provide detis of his tems of Equipment if required by the PM in accordance with Claure 231. * Contractor to provide the key personne ste in CO2p81 or iteratively alterativs for aeceptance by the PM in acordence with clause 24 + Contractor to check Scope forthe obtaining or preparation of Information tottom Others a required by use 354. * Contractor to submit names and required documentation of Proposed Subcontractors for approval im aecordance with cause 262,263 and 264. 7 Besarectic OE Starting an NEC Project - Duties 4 = Certain administrative issues will requite attention atthe start, ‘of an NEC project. These include : + PM checks health an safety requirements in Scope to ensure Convactr compliance in secrdance wth Clause 27.4 ‘Signfiant noncompliance can be grounds for termination In accordance with Clase 313 + Contractor commences work after the fist access date in sccordance with Cause 301 + Contractor to prepare fist programme for seceptance bythe PM in accordance with Clause 31.1 and wthin prio stated in {Coipa0 ater the Contract Date PM responds within to. ‘5 Clouse 313. Once accepted the Contractor shoud verify that the Activity Schedule doet not require updating in acordance ith the provisions of Clause 55 310ption A) : Bersaraenc OS Certied NEC Professional Training Course (CNPC-190712) Module 2 (hpi tat ns fr we ii ofthe tesa are tine tend y BK SURCO Lad ‘dey mote eel yay dn ay pe py tt he men on of SURCO Li BXSURCOTraining a Starting an NEC Project — Duties 5 Certain administrative issues wil require attention atthe start ‘of an NEC project. These includ + The Clent provides acces tothe stein accordance withthe requirements of dause 33.1, the work included inthe contract and the acess dates stated in CD1p80. Flue to provie the necessary acces willbe a CEin accordance with Clause 6012) + Contractor to prepare quality poy statement and quality pen for acceptance by the PM in aecordance with Clsuse 40.2 and coipso + The Contractor and Client, PM and Supervisor establish testing nd inspection programme so asthe comply with the Fequrements of the Seope and Clause 41.2 + PM to st fist assessment date fr payment in accordance with {dause 50.1 this being not ater than the asessment interval ater the stating date “ BiAsiaPaciicGS EY Starting an NEC Project - Duties 6 + Certain administrative issues will quire attention atthe srt of an NEC project. These include + Contacor and lent organize isurances which are theie ‘erponsliy prior to stating date n accordance with Gauss ores + Option x4 sled provide the Utiate Holding Company Garant whi four west ofthe Cont Date + option xii slcted the Contractor provides the Infrmaton Extn Plan within the ped tated at CDIpST + option x12 selected the Contractor provides the Perfomance Bond win four weeks of te Sarg date BeAsiaractiOE BXSURCOTraining ‘Starting an NEC Project - Duties 7 + Certain aoinstratve iste will require etiertion a the sat of en NEC projet These inh + option 14 sleced and an Advance Payent Bondi Teed the Contr poder aio ety prodng (Su adres pent Bt for econ bythe PH +f option X22 sleted the Contactor prepares feasts the Bint of Sage neon dT Pre Cost tte ioe tated Cpe Thank you for Attending ‘Corte NEC Professional Training Course (CNPC-190712) Madule 2 ‘Ocenia ies ees owe ein hiner eine y BK SURCO ‘hy meyotbeec y y o elyagywao he i pre of BK SURED Lk 45 | NEC Pro Certified Training ~ Case Studies Module 2 Preparation of Tender Document regarding Risk Allo: 1) During the formulation of tender documents, the Client notes that the level of a river adjacent to the site, during periods of exceptionally heavy rainfall will exceed 2.6m in height at a nearby measuring point. When this occurs the site will flood. How should the Client advise the tenderers ofthis? b)The Contractor notices when preparing his tender that the site information indicates that because of previous site usage there is likely to be contaminated ‘ground within the site, How should the Contractor advise the Client ofthis? ©) Who takes contractual responsibility or the risks identified above? <2) What should the Contractor allow in his tender? 6) Ifthe Client wished to take the time and cost risk of these events how could he do 0? Why might the Client do this? c ° (M2 P27) BX

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