Contract and Procurement Management

Question: Discuss about theContract and Procurement Management. Answer: Introduction Central Queensland University, hereinafter referred to as the Employer, invites sealed tenders from contractors for following contract to be funded entirely by the employer from internal sources for the construction of its new Science and Technology Department building situated in the universitys Brisbane Campus at 160 Ann St, Brisbane City QLD 400. Tenders are invited for contractors to undertake Designing and Construction of the new school building including procurement of material, deployment of labour and completing the construction within the stipulated time mentioned in the Tender Contract Document (TCD). Firms and joint venture companies which have already been pre-qualified by the employer are eligible to submit a tender for this proposed contract. Tendering for this contract is to be financed from the internal sources of the employer and the tendering process is open to individuals, firms and consortiums from any country. To be qualified for the award of this contract, all tenderers are required to satisfy the minimum criteria specified in Section of the Instructions to Tenderers (ITT). Tender documents can be obtained from the office of the Representative at the address given below upon paying a non-refundable fee of $50 or its equivalent if paid in a convertible currency. Upon confirmation of the appropriate evidence of the non-refundable fee amount, the undernoted Representative of the employer will dispatched the relevant Tender Contract Documents along with the Instructions to Tenderers (ITT) by courier, however, the employer does not take any liability for the loss or late delivery of the courier. If requested, the above mentioned documents can be arranged to be transferred electronically after the prospective tenderer submits valid proof of having paid the non-refundable fee. However, the tenderer is required to submit a hard copy of the completed TDC with the representative on or before the last date of submission. All tenders are required to be submitted along with a tender security amount of 5% of the value of the contract as stated in paragraph 19.1 of the Instructions to Tenderers (ITT). Tenders must be submitted by hand at the office of the representative at the address given below on or before 6:00 PM of 23 October 2016 at which time the same shall be opened in the presence of the tenderers or their representatives. A register of the tenderers who purchased the tender documents can be inspected at the address below. Prospective tenderers can obtain any further information, inspect and acquire the tender documents directly at the following office: Mr. Antonio Da Costa Cruz (The CQU Representative) Level 5, Building CQU, 160 Ann St, Brisbane City QLD 400. Email: tender@cqu.com.au Phone Number: 17 3032 5454 Date: 7 September 2016 Project Justification and Contract Process The Tender Document consist of three parts, Parts 1, 2, and 3. These include all of the Sections which are listed below and the tenderer should read them in conjunction with any Addenda issued as per ITT 8, say Baum Baum, (2015). Tendering Procedures Section I: Instruction to Tenderers (ITT) Section II: Tender Data Sheet (TDS) Section III: Evaluation and Qualification Criteria Section IV: Tender Forms Section V: Eligible Countries Requirements Section VI: Requirements Contract Section VII: General Conditions of Contract (GCC) Section VIII: Particular Conditions of Contract (PCC) Section IX: Contract Forms The Invitation for Tenders is issued separately by the Employer and does not form part of the Tender Document. Financing of the Project Any advance payments released to the successful tenderer shall be guaranteed by a reputed bank or financial institution and shall be furnished in the form annexed to the Particular Conditions or as specified by the Employer in another approved format, as per Baum Baum, (2015). The certified amount shown in each Interim Payment Certificate shall be ratified within 56 days after the successful tenderer receives the Statement. During the time when a loan from the Bank from which a part of the payment to the Contractor has been made has been suspended by the bank, the amounts so shown in any statement submitted by the Contractor containing any discrepancy shall be rectified within 14 days after submission of such a statement is made, in the next payment to be made to the Contractor, states Hinkel, (2010). Any undisputed amount certified in the Final Payment Certificate should be notified to the Employer within 56 days after the Payment Certificate is issued, assert Sexton Bogusz, (2013). Project Conditions, Team and Processes In accordance with Section III of ITT, the Evaluation and Qualification Criteria establishes the qualifications for the tenderer to perform the contract as per the information provided in Section IV of the Tender Forms. In case such an eventuality is required under the TDS, the tenderer shall also submit the Manufacturers Authorisation by using the form available in Section IV of the Tender Forms in cases where the tenderer is not the manufacturer or producer of the materials used in the project, confirms King, (2015). Further to this, it may also be required as per the TDS, that the tenderer shall submit authentic evidence that it shall be represented through an Agent in the country, who is fully equipped and capable of carrying out the maintenance, repair and provide adequate spare parts prescribed in the Conditions of Contract and Requirements, in case the tenderer does not conduct direct business in the Employers country. assert Kao, Sung Chen (ed), (2014). Project Labour, Plant, Materials and Sub-contractors All the prices as well as the discounts quoted by the tenderer in the Letter of Tender and the Price Schedules must conform to the requirements specified in ITT 14.2. Unless it is specifically provided in the TDS and the Contract by the tenderer, all the prices quoted shall be considered as fixed. Also, the prices quoted in the Letter of Tender, which are in accordance with ITT 12.1, shall be considered as the total prices of the Tender and shall exclude any discounts which the tenderer may offer later, as per McFarlane, Hopkins Nield, (2012). Requirements for Project Changes Unless there is no other way for such eventualities as a natural calamity, the Contractor will not be permitted an extension of time for circumstances for which the relevant delay has already been taken into account by the Employer, say Sexton Bogusz, (2013). In case, there arises the case of determination of a previous extension of time, then any such Cost will not be paid separately if that has already been taken into account while indexing the inputs to the specific task and its adjustment data in accordance with the cited provisions of Sub-Clause 13.8 (Adjustments for Changes in Cost) as explained by Megarry et al, (2012). Requirements for Quality Assurance and Quality Control If the Employer has determined, on the basis of reasonable evidence available, that the successful tenderer has indulged in any type of prohibited practices, during the time of competing for or while execution of the Contract, the Employer reserves the right, after giving a 14 day notice to the successful tenderer, of terminating the Contract and expel the entire team of the successful tenderer from the Site, as per the applicable provisions of Clause 15 read with Sub-Clause 15.2 of the TDS, as per Davis, (2007). Moreover, if any employee or subcontractor appointed by the successful tenderer is determined on the basis of reasonable evidence, in engaging into prohibited practice during the execution of the contract, then that employee or sub-contractor shall be immediately asked to be removed as per the Sub-Clause 6.9 (Contractors Personnel), says Davis, (2007). For the purpose of this Sub-Clause, the following terms are considered as prohibited practices: Coercive Practice, such as impairing or harming or threatening, directly or indirectly, any party or the property at the site. Collusive Practice, which may be an arrangement between two or more people at the site for achieving an improper purpose. Corrupt Practice means offering, receiving or soliciting, either directly or indirectly, anything of value for influencing the actions of the other party, as suggested by Ashworth Perera, (2015). Fraudulent Practice means acts of omission or commission and may include misrepresentation or attempts to mislead another party for obtaining a financial benefit, as per Ashworth Perera, (2015). Requirements for Document Management and Reporting The tenderer is required to prepare one original copy of the tender documents as described in ITT 11 and mark it ORIGINAL. The tenderer is also required to submit copies of the Tender, as per the number specified in the TDS and mark each of them as COPY. The original as well as the copies of the TDS can be typed or hand written using indelible ink and should be signed by a duly authorised person if signing on behalf of the tenderer. The authorisation should be provided in a written confirmation as specified in the TDS and should be attached to the TDS, suggests Megarry et al, (2012). Requirements for Disputes, Arbitration and Mediation The successful tenderer has to ensure that an appropriate grievance mechanism is made available to all the staff as well as the workers and sub-contractors and this should be used by all the affected persons without fear of intimidation or retaliation, as per Megarry et al, (2012). The successful tenderer must also ensure that all the concerned persons are notified about the grievance mechanism and that this forms an integral part of the training imparted to new employees. Information regarding the same should also be posted at important positions in the relevant areas inside the construction site, assert McFarlane, Hopkins Nield, (2012). It is the duty of the successful tenderer to ensure that the grievance mechanism also involves, at an appropriate level, the management of the company and promptly addresses the concerns of those affected, through the use of an understandable and transparent procedure which also provides feedback to the other concerned persons without any retributi on, as per Ashworth Perera, (2015). Requirements for Safety The successful tenderer is also required to provide the Employer a written Health and Safety Policy for all workers at the site. This should be corroborative with a project-specific Health and Safety Plan as provided by the relevant authority, say Baum Baum, (2015). The Plan should include details of the OHS management system, including plans for managing and monitoring the health and safety risks at the construction site. It is also the duty of the successful tenderer to plan, manage and monitor all the construction work carried out by workers under his control in such a way that it ensures, in a reasonable and practical way, the least risk to the health and safety of the workers, suggest Baum Baum, (2015). List of References Ashworth, A. and Perera, S. 2015, Cost Studies of Buildings, 6th ed. Routledge, Oxon. Baum, A. and Baum, Prof A. 2015, Real Estate Investment: A Strategic Approach, 3rd ed. Routledge, Oxon. Davis, T. 2007, The Real Estate Developer's Handbook: How to Set Up, Operate, and Manage a Financially Successful Real Estate Development. Atlantic Publishing Company, Ocala, FL. Hinkel, Daniel F. 2010, Practical Real Estate Law, 6th ed. Cengage Learning, Boca Raton, FL. Kao, J.C.M., Sung, W. and Chen, R. (ed.). 2014, Green Building, Materials and Civil Engineering. CRC Press, London. King, Sarah. 2015, Beginning Land Law. Routledge, Oxon. McFarlane, Ben, Hopkins, Nicholas and Nield, Sarah. 2012, Land Law: Text, Cases, and Materials. Oxford University Press, Oxford. Megarry, Robert, Wade, William, Harpum, Charles, Bridge, Stuart and Dixon, Martin J. 2012, The Law of Real Property, 8th ed. Sweet Maxwell, New York. Sexton, Roger and Bogusz, Barbara. 2013, Complete Land Law: Text, Cases, and Materials Oxford University Press, Oxford.