The tender conditions for this contract have been prepared according to the Principals’ obligations as defined in the Australian AS 4120-1194 standards code. The AS 4120-1994 sets the obligations and ethics of both the Tenderers and the Principal for tendering in the construction industry. The Principal and the Tenderers are obligated to comply with the AS 4120-1994 requirements (Yang and Chang, 2005); for this tender, specific attention is drawn to the Tenderers obligations in how you prepare and submit of your tender for this project. With no limitations to the above mentioned obligations;
Tenderer's may not submit their tender without a firm and assured intention to proceed should they be awarded. Tenderers are prohibited from canvassing, either directly or indirectly form any elected or appointed representatives of Hammer Fishing Cooperative (Yang and Chang, 2005).
Tenderers are prohibited form engaging in any acts that may be deemed collusive
Background of the Project
The Hammer Fishing Cooperative, made up of locals native to Hamersley, have to take their catch to Perth for processing; some of the processed fish is then sold in Hamersley. Due the high demand for fish in Hamersley, the cooperative, with a grant from Lloyd's Bank would like to put up a fish processing plant in Hamersley, at the junction of Erindale and Beach road, in Hamersley. The Hammer Fishing Cooperative, has recently purchased the piece of land referred to as Plot 104/111H at the junction of Erindale and Beach road. The Cooperative intends to build a fish processing plant at this site to meet the needs of members and serve the local population, who are served by fish processing plants located in Perth. The work is to be delivered to the Elected Representatives of the Cooperative, who in turn act on behalf of the Cooperatives members, that number 230 as of March 2017.
Tender Process and Justification
The tender is aimed at engaging a single lead contractor who will be the Principal, working with a consortium of sub contractor and sub consultant arrangements, if necessary, to deliver the multiple and diverse facets of design and construction works. If there are several other businesses and entities that may be involved in the project, the Cooperative, herein referred to as the Principal, shall deal only with the lead agency/ Principal contractor as the successful tenderer. Any agreements with sub contractors and sub consultants will only be done between those parties and the Tenderer as per clause 10. The works will be delivered in lump-sum as specified in the Tender Form, and will be performed according to the latest relevant Australian Standards edition, as well as relevant national, regional, and local Standards. The successful tenderer will become the ‘Principal Contractor’. Upon submitting your tenders, all applicants will be invited for the official opening of the tenders at the Cooperatives Offices as provided in the address in this tender document. The applicants or Tenderers or their representatives will witness the official opening of the tender documents that will be done in June 1st 2017. The applications will be reviewed at the first sitting on June 3rd, and qualified applicants shortlisted. The final review will be done on 13th June 2017, based on the technical, financial, and legal qualification standards. The successful applicant will then be awarded and notified in writing within three days of the award, after which an official contract will be signed
The Cooperative, being the client, will organize and arrange all the necessary funding for this project. The Tenderer shall be paid a 30% deposit of the contract sum, a further amount of 30% shall be paid upon completion of 50% of the works, and the final 40% shall be paid upon completion of the works and project delivery. The project will have a 10% emergency financing to be arranged by the client. Insurance to be fulfilled as outlined in Clause 18.
Project Conditions and Team
The Principal Contractor shall be responsible for the design of the plant, based on the equipment that will be used (to be supplied by the Client), its layout, construction, fixtures and fittings, and handing over the complete project after a two test runs to the client. The chairman of the Cooperative, together with the CEO and the secretary will be the project sponsors/ owners. The project will have a project team consisting of a project manager to be competitively hired by the Principal Contractor, who will work with the Cooperative liaison officer, to be nominated by the client. Intellectual property rights will be governed under Clause 13.2 while legislative requirements the Contractor must fulfill are defined in Clause 14.1 (Evans & Peck Pty Limited, 2006)
The design must be approved based on the Development Application and Operational Works; the design must have a design report by a PREQ and the completion of Module 10-1-1 paperwork detailing the project and its impact of the construction upon the environment. The minimum alloted time for design and approval for the plant is 12 weeks and all the works for design and approval are covered by the Lump Sum total for the contract. After design approval process, the process shall proceed. The principal contractor will establish, maintain, and clear the site upon completion of the works. The Principal Contractor shall provide, and show proof of insurance for employees and insurance of the works. The Principal shall provide security for a specified amount, according to Clause 5.2. (Bailey & Bell, 2008)
The Lump Sum total for the entire project is $ 400000 for the design, and construction of the plant, as well as fixtures and fittings. The Principal Contractor shall determine the amounts to pay the sub contractors and sub consultants, while the liaison officer will be paid by the Cooperative. A further 10% will be provided as emergency or the project, for a total of $ 40000. Clauses 5.5 and 42.1 shall define the retention moneys to be progressively deducted
Requirements For Changes in Project
All changes, either to contract terms or design must be approved by all parties, after a one week notice to inform. The changes must be approved by relevant authorities if it involves design changes. Works by consultants and others cannot be subcontracted without prior approval, as defined in Clause 9.2
Quality Assurance and Quality Control
The Principal Contractor must demonstrate having a quality assurance standard that is independently certified, a copy of which must be attached in the tender submission documents. The quality assurance must cover the entire scope of works and be in conformity to the local, regional, and national standards (Sharkey et al., 2014).
Document Management, Reporting, and Governance
Based on Clause 8.3, the Principal shall provide three copies for any document
Estimated Lump Sum and the documents to be provided are based on Clause 8.4. The parties will sign the Formal Agreement Instrument, as well as the tender form; the Principal Contractor must fill a particular form to include bankers and security guarantees (Sharkey et al., 2014).
Occupational Health and Safety
There must a contact person nominated by Contractor to advice on workplace injuries and liaise with the insurer. The principal contractor must have an independently certified Occupational health and Safety and show proof as well as an OH&S policy statement. There will be an employee safety officer at the site at all times, and the contractor must show a policy on drugs and alcohol at the workplace. The contractor will show safe working requirements and knowledge such as weights to carry, over what distances and for what periods of time (Forsyth & Stewart, 2009).
Dispute Resolution and Management
Disputes will be manage under the Payment disputes and the Construction Contracts Act of Western Australia; a claimant must commence the process through lodging an adjudication claim under Construction Contracts Act 2004. The respondent will respond in writing before an adjudicator is appointed to decide on the matter (Governmet of Western Australia, 2017).
Evans & Peck Pty Limited (2006). Guidelines for Tendering. [online] Australian Constructors Association. Available at: https://www.constructors.com.au/wp-content/uploads/2006/08/Guidelines-for-Tendering-11-August-20061.pdf [Accessed 16 May 2017].
Bailey, I. H., & Bell, M. (2008). Understanding Australian construction contracts. Pyrmont, N.S.W., Thomson Reuters.
Forsyth, A., & Stewart, A. (2009). Fair Work: the new workplace laws and the Work Choices legacy. Annandale, N.S.W., Federation Press.
Governmet of Western Australia (2017). Payment disputes and the Construction Contracts Act. [online] Governmet of Western Australia. Available at: https://www.commerce.wa.gov.au/building-commission/payment-disputes-and-construction-contracts-act [Accessed 16 May 2017].
Sharkey, J., Bell, M., Jocic, W. and Marginean, R. (2014). Standard Forms of Contract in the Australian Construction Industry. 1st ed. [ebook] Melbourne: University of Melbourne, pp.4-6. Available at: https://law.unimelb.edu.au/__data/assets/pdf_file/0007/1686265/Research-Report-Standard-forms-of-contract-in-the-Australian-construction-industry.pdf [Accessed 16 May 2017].
Yang, J. and Chang, W. (2005). Building education and research. 1st ed. London: E&FN Spon.