Bren Questions for Conversation Flashcards
Novated
Pressure for WM to be novated to Hawkins from the UoA’s perspective.
Schedules -
Without PM - how to determine not applicable
Contractors bond
Not Applicable - in discussion with Client.
Architect running - would be our recommendation to the Client whether they were necessary or not
Form of Principal’s bond - going to Client asking them to provide a bond is questioning his integrity
BM has been in this position. During the tender, tenderers asked for a bond from the Principal, who was a local authority, reputation of being dodgy in Auckland.
They went to Main Contractor and recommend this is not a good idea.
Main Contractor went broke at end of project.
Contractors bond most common. Gastro $100K. Contractors bond in lieu of retentions was N/A.
Special Conditions
Schedule 1 - Specific conditions of contract and
Schedule 2 - Other conditions of contract
I need to fill in each of the specific information
in discussion with Client only - not with the contractor.
Filled in before you have a Contractor on board. Part of the Tender documents. Issued with the Form of Tender and Schedules to Conditions of Tender. Issued with General conditions of contract. Sometimes can leave out the general condition and make reference to them. But still need to fill out the specific conditions.
Discuss with Client - all of the items
Insurances -
- Types of Insurance
- How to you arrive at the values? Who’s in the position to provide the values of cover?
Let’s assume you’re doing a new building from scratch and you need to go out to tender, how would you arrive at these values?
Putting tender docs out within the coming day and the Client has come back with their values ?
Why do they need to know the insurance values?
Client is overseas?
- Main issue - Who takes out the insurance / risk - Why is there a difference between Client vs. contractor taking the responsibility
Why Principal takes out for existing and Why Contractor does for new
- Construction
Existing structures and contents
Plant
Public Liability
Motor vehicle third party liability
Professional Liability - Size, location and complexity of the project would influence the value. Who comes up with the number?
First port of call - talk to the Client’s insurance broker.
Need to know the insurance values to be able to put a cost against it when tendering.
fundamental - go back to Client
Tenders can proceed to price -
Insurance is fundamental term of the contract as is in specific section
Minor - then make amendment - prepare NTT - issue to all tenderers
Not committing anything until have a signed contract, but need a fair basis on which the tender can price that item.
- Exclude from tender value and negotiate later separately
- Value against it, say it is provisional until such time it is confirmed by the Client - open for negociation. Tenders can base insurance values based on values nominated.
BM discussed with QS, arrived at some values, told the Client this is what we’re doing. - Issue as a NTT a week prior to tenders closing - buys another 3/4 weeks depending on size of job. (This is the preferred)
- defer it in a way that does not disadvantage the client. Being able to think on your feet.
Not to delay the project as Engineer to the Contract. - Consult others in the office who have been through this process. Go back to NZIA for advice to ring. Being part of NZIA.
- Existing building being renovated or new.
Understand who takes responsibility for those insurances.
Gastro - Existing hospital - Principal - Occupation - will have insurance cover on the building to start with - then need to notify Insurance there is work being done by others - Client would get tweak in premium. With new this issues does not arise.
New - some clients decide they will take out the insurance rather than the contractor, but default position is normally the contractor takes out the risks.
Contractors initiate - Want Bond rather than retentions ask for Tender Phase - when would you agree to this? What is your recommendation to the client
What if the Client lost the bond check?
When is the performance bond released?
interview - Comment on Gastro’s bond
Worth putting this in the case study as is a break from the normal and this is how it was dealt with.
Generally prefer retentions, have money in our hand, rather than bond.
SCC 3910 has calcs for retentions are preferred default
If Contractor has a really good price, based on the giving your a bond rather than money.
Issue may come up in Constructions Contracts Act.
Retentions held in trust accounts - starts to complicate matters
Bond provided by a bank, need to hold on to the check either the PM, Architect or Client. Bond needs the original, sign off on the original that we no longer need this bond, please release it.
Performance bond released on Practical Completion
Gastro process.
Bond was put in place, Contractor didn’t perform, was terminated, presumably withheld the bond. Bond would be used to complete the contract. PM needed to resolve the bond. Contract was completed by another Contractor. Assume this is what the bond is there for, for poor performance, call it up and use money to resolve.
Tender deposits on documents
Set up a trust account in eg 2019 may finish in 2024, you may or may not be around.
RCP should have an envelop with a check in their files
Variations
Actual costs vs P&G
Was the Contractor entitled to p&g costs?
Variation delay caused by Covid.
Deemed a variation then entitled to P&Gs nominated in the contract. Debate whether the contractor is entitled to it, like wet weather , it is beyond the control of both parties. Argument - having to negotiate it out,
Contractor got half of what he’s entitled to, got other projects in the office, where contractor is paid the p&g for covid. No one has agreed. Might have been government policy to pay out?
Agreed this was how to deal with Covid, when there was no rules, dealt with by RCP, this was the process.
Neogiciating special conditions
In charge of administering the contract, then decisions I make are to avoid litigation and avoid contractual fights. Smooth it over and get satisfactory solution to both parties wearing impartial hat.
If it is too complex then ask for legal advice.
Looking through the issues and deciding what’s a reasonable outcome. Judgement as to when to get a lawyer involved. Engaged to make these judgements to facilitate the contract going forward.
Bill of Quantities is part of the Contract?
What are the Bill of Quantities used for?
Tend not to be a contract document now.
Good list of information
Process - I would be making a recommendation, discussion with QS as to whether the document they have been engaged to produce is worth using as part of the conditions of contract/contract docs to be signed, then have discussion with Client when you go through the contract documents.
Agree with the QS whether they have done a detailed schedule that can be used as a contract document in which case variations would be assessed against. Decisions to make as part of the specific conditions.
Ensured clarity of scope, fair on both parties.
CMDHB requested/may have a policy on this? or did we recommend? Could then get a tender based on fair representation of scope, therefore reflected scope accurately.
SCC schedules, another one attached
List of the contract documents.
Who writes P&G
Beca PMs, were subconsultant’s to Architect
Administering our Architect’s behalf.
What does develop commercial offer?
What the tenderer provides. What they provide you back is the commercial offer
Evaluation - excluded kitchen joinery?
Others have included?
How do you deal with it?
trade by trade
or common tag, how each tender
Someone may have allowed something additional to the documents
Evaluate the tender - ask for clarification of the tender on a particular item
Evaluate the tender
Matrix - need to include a value to bring it back up to match other tenders.
Post tender negociation - as tender to provide clarity on the tender breakdown. Delicate exercise. Have to give everyone the same opportunity. As soon as they see it, they will know someone hasn’t allowed for it, those who have allowed for it can’t change their tender. Architect put value based on other tenders.
Ethics -
How would you treat late tenders?
If you evaluate the tenders and someone if missing plumbing and are the lowest tender, raise it with the tender, and he says just raise another $50K to cover it. How would you deal with it?
Notifying other architects if taking over a job.
Can’t accept them, unless there were exceptional circumstances, such as crash on motorway.
Showing understanding to be fair. Ring and say stuck on bridge, responses is, give me the tender over the phone, you get the hardcopy to me as soon as you can and I’ll see if they match up. If they do, then it would be justification on crash on bridge rather than going to another meeting. Ways of maintaining the fairness.
Month of work going into the tender. Maintain the fairness to all tenders.
This can not be accepted.
Tender - can’t change the tender, but can be given the option is accept original tender stands as it is or to withdraw.
Include an average of the plumbing from other tender submissions to bring it up to the same level.
- Novation - design and build
- GMP
PPP
- Contractor ends up being your client
- Driven by QS, very big projects
PPP - prison work and hobsonville schools.
Open tender - disadvantages of open tender
Publicly notify compared to selective
Selective you’ve worked with them before, have more surety
Open tender could get any one and more work to assess.
30 responses to open tender - how do you thin them down? 3/4 were out of their depth.
Ways and means - tender docs will include a performance bond of $Xmillions will scare off some contractors
Evaluation has to be a reflection of the tender documents
I would remind the Principal the risks of a non-competitive tender as the usual due-diligence checks were not as thoroughly undertaken. However, a negotiated tender removed the risk of the unknown for the client.
