Escolar Documentos
Profissional Documentos
Cultura Documentos
704205
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Contents
1. Introduction and Purpose......................................................................................... 2
2. The Owner perspective Melbourne Water................................................................2
2.1 Contract Benefits and Risk evaluation..................................................................2
2.1.1 Time Frame of the Project.............................................................................. 3
2.1.2 Reasons behind the Time Frame.....................................................................4
2.2 Contract Term Evaluation using Australian Standard General Conditions...............4
3. The Contractor perspective....................................................................................... 6
3.1 CEO Briefing document....................................................................................... 6
3.2 Analysis of Risk and Opportunities.......................................................................9
3.3 Tender Strategy................................................................................................. 10
3.4 Tender Preparation Plan..................................................................................... 11
3.4.1 Tender Gantt chart....................................................................................... 11
3.4.2 Bid Team organization.................................................................................12
3.4.2 Develop Tender Price (Flow chart)................................................................14
This report discusses the tendering preparation for Supply and delivery of thirty
(estimated) floating surface aerators to the Melbourne Water Western Treatment Plant
(WTP) site in Weribee, Victoria. The project objectives are to oxygenate the lagoon to
enhance wastewater treatment and circulate water to mix the contents into the lagoon.
The lagoon design reduces organic and inorganic pollutants (reduces odour) and
pathogens to acceptable levels (Stenstrom and Rosso, 2008).
This assignment will explain two separate perspective for this tender preparation:
Principal and provider, in this case Melbourne Water and H20 respectively. The first
perspective aims to discuss and analyses the Procurement strategy and the selection of
specific contract terms, both tasks are focus on evaluate the Principals needs and risks
associated with this project. The second perspective purposes to prepare the bidding
process for this project. During this process is crucial elaborate a market evaluation,
analyses contract conditions, risk and elaborate a planning program for the tender.
IV.
V.
Budget: Contract price is known before the supply of goods and services.
Melbourne Water can set in advance the budget.
Experience: Important experience with this contract and tend to reduce the
mistake during the tendering process. Might reduce cost caused by decreasing
number of amends.
Potential Low Risk: The Principal prepares the scope of the project and the risk
of design and supply lie to the Contractor. Melbourne Water pay a fixed price for
goods and service, any risk might affect the delivery and supply during the
project, the Contractor undertake the risk.
Competition: Large number of potential tenders might increase the price
competition. The market has interest to apply this contracts.
Stakeholder Plan: The principal can manage stakeholder engagement during the
execution of the project.
Risks:
I. High price: The Contractor retains the risk of the constructability of design and
fitness for purpose so the price may be high.
II. Innovation: Low incentive for innovation.
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III.
IV.
Flexible: Tend to be less flexible for manage any change of the scope of the
project. New requirements need to re-negotiate with the Contractor, and it can
affect the schedule of the contract.
Quality: The quality of the contractors work can be compromised, if the principal
does not know the value of the risk contingency for the project. The performance
operation and quality of WTP can compromise in long terms, when tenders tend
to compete by price. The Value money become less important and increase the
risk operation in WTP.
Risk reduction
Melbourne Water Western Treatment Plant, should delete any conditions that the
contractor can use to claim any adjustments or variations of the price. To satisfy this
requirement, the following points should be reviewed:
I.
II.
III.
Determine the level of risk of the project; when the risk is low, a Fixed price
strategy should be implemented.
To provide accurate information during the tendering process to reduce
uncertainty, errors and omissions. Prepare accurate project documentation
including drawings, specifications and technical requirements.
Minimize the ability to vary the design of the project.
Risk
High price
Low Innovation
Flexibility
Low Quality
Likelihood Consequence
D
Moderate
C
Minor
C
Moderate
C
Catastrophic
Management
Significant
Moderate
Moderate
High
Activities
Project Definition and
Scoping
Selection Process for
Tenderers
Tender Documentation
Dates
18/05/201
5
28/05/201
5
12/6/2015
22/06/201
5
29/06/201
5
Documentat
ion
29/06/201
5
02/07/201
5
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Amendments to Tender
documents
Submission and Closing of
Tenders
Tender Analysis
Tender
Evaluatio
n
Tender Clarifications
Tender Selection & Award
Site inspection
Delivery of aerators
Delivery
of Goods
and
service
Installation of Aerators
Test and analysis
Firm acceptance of
Aerators
Maintenance operations
Finish or Renew Contract
10/07/201
5
24/07/201
5 4pm
8/10/2015
10/11/201
5
28/12/201
5
22/03/201
5
30/04/201
6
30/5/2016
5/6/2016
4/6/2016
2.
3.
4.
5.
6.
7.
The next table explain some items and clause of AS 4911-2003.(Details Appendix A)
Ite
m
6
Name
Clause
Description
1, Item
6
Qualifying cause of
delay, causes of
delay for which EOTs
will not be granted
(page 3,
subparagraph (b)(iii)
of clause 1 and
sublcause 17.2)
17.2
23
Liquidated damages
17.5
21
Public liability
insurance
13.1
13.2
20
Insurance of the
Equipment
13.1
32 /
36
Payment and
variations
23.1 ,
23.2
22
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28/12/2015
30/04/2016
Lump sum or Milestone payment.
$20 million
SWOT Analysis
General Market
The Water supply market are provided under diverse industry structures, which are
divided by states and local government ownership. The Water Utilities market is
integrated for 81 companies around Australia. New South Wales and Victoria represent
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more than 60% of these companies (National Water Commission, 2014). 28 days
define the negotiation of the contract and 14 days to sign the contract for both parties.
Table 1.1: Utilities reporting in the 201213 Urban NPR
The
aeration
essential part of
treatment plants.
cost is a relevant
consider,
as
consume 45 to
plant energy cost
and Rosso, 2008).
floating
aerator
of solar energy
effective solution
energy cost for this market. Unfortunately, it is not possible estimate
aerators operating in Australia.
process is an
wastewater
The
energy
factor
to
aerators can
75% of the
(Stenstrom
The design of
with the use
can be an
to reduce the
the number of
Economic expectation
Increase population growth: In 2006 The Australian Bureau of Statistics, as well as
CSIROs Water Book, stated that the national population would increase to 35 million by
2056. (National Water Commission, 2014). The increase on water demand for municipal
purposes, which is related to population growth, will increase the pressure on the water
market, especially in water suppliers and wastewater treatment services.
Low investment in water Infrastructure: Since 2000s, the investment in water
infrastructure has been relatively small in comparison with other services. Recently, the
Government has increased the level of investment and has encouraged the use of
sustainable energy into the wastewater market. The Water Smart Australian program
has also invested $1.5 billion in sustainable and productive solutions in Water Market
since 2005.
Company Strategy
In order to evaluate if this tender is a worthwhile opportunity for the company, it is
necessary to consider the following points:
Product Differentiation strategy: our product Floating Solar-Aerator (anchored) is a
viable solution for MWT to reduce their energy cost. This new system has been
operating in East Gippsland since 2010. In addition, this hi-tech alternative can reduce
greenhouse gas emissions by up to 100 tonnes a year and decrease the consumption
of energy by around 20% (McKean, Waddell, 2010).
Compliance: H20 can comply with the conditions of the contract. The insurance
Policies are in place for this bid. Also, our company has been certificated in Quality
Assurance (ISO 9001),OHS (OHSAS 18001) and Environmental Management Systems
(ISO 14001).
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Viability: The Company has high expectation to win this bid, our principal advantages
are Technology, I&D, resources and an experienced labor force.
Profitability: The revenue of this tender is acceptable, approximately 10%.
Competitors Analysis
Company Name
Aquatec-Maxcon
Pty Ltd
Overse
as
YES
Size
Large
YES
Magytec Australia
Pty Ltd
YES
Mediu
m
Small
Patrick Charles
Pty Ltd
Veolia Australia
YES
Large
YES
Large
ABB Australia
YES
Large
Alfa Laval
Australia Pty Ltd
NO
Mediu
m
Registrati
Strengths
on ASIC
1981
Experience,
Design and
Quality
2013
Partnership with
RWL Water Int.
2012
Partnership with
Siemens and
Waterix
1988
Experience and
Design
1993
Experience,
Design and
Quality
1987
Experience,
Design, Structure
and Quality
1926
Experience and
Design
Weakness
Price and
Experience
Structure
Price
Price
Technology
Resourcing
In financial aspect: According to the cash flow statement and our financial situation,
there is enough funding and capital to bid for the work.
The workload: The Company can arrange sufficient resources for this work. We have
several experienced project managers and enough engineers for this project.
The Labor force: Vertically integrated Civil, mechanical and electrical from design and
construction. The company provides intensive training along career paths. Over 200
permanent staff of different disciplines. The capability of the manufacturing operation is
divided between Australia and overseas
Finance
The company was debt free last year. The Net Assets is over $ 23 million. In addition,
the financial capability permits it to fund Goods and services Contracts and BOOT
projects. The organization has Liability Insurance Cover value over than $50 million.
Recommendation
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Conseque
nce
Managem
ent
Delayed goods
Major
Significant
Contract
and
Operation
Minor changes to
principal
requirements
Minor
Moderate
Contract
Change of scope
of procurement
strategy
Moderate
Moderate
Bid not
profitable
Poor
Stakeholder
Engagement
plan
Major
Moderate
Moderate
Moderate
Insignifica
nt
Low
Likelih
ood
Conseque
nce
Managem
ent
Minor
Moderate
Insignific
ant
Low
Moderate
Moderate
Moderate
Moderate
Minor
Moderate
Typology
Contract
Risk
Financial
Contract
Financial
and
Contract
Need to involve
Sub-contractor
Description
Risk Operation
Typology
Risk
Low dissolved
Oxygen (DO)
Operation,
Maintenan
ce and
Quality
Labor
Safety
Water weeds
and Sludge
build up
Poor periodic
maintenance
Corrosive
Environmental
Safety
operation
Description
Reduction of effectiveness
during the operation. Old
aerators and blowers.
Reduce the turbulence
produced by obstructions.
Low performance of aerators.
Problems with lubrication,
adjustment and replace
spares.
Materials not suitable for
operation in high level of
corrosion.
Unclear Manuals and poor
training.
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Opportunities
Accumulate Experience
Description
This tender can be an excellent opportunity to
increase the experience and promote our
high-tech solution into other Wastewater
treatment plants.
This relationship may provide skills transfers
and experience. H20 can offer consultancy
and support service (Integrate service).
submission. The evaluation of RFT, construction method and programming and bidreview
are
the
most
important
process
in
this
bid.
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The following table identified the principal role of the bid team.
Table N1: Principal Roles of the Bidding team.
Bid Manager
Internal Departments
Consultant
Commercial Specialist
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In addition, during the tendering process, it is crucial that the Owner, Bid Manager,
Commercial Manager and Project Manager integrates a Team review. This team
evaluates and review the commercial, technical tender and risk that complies with the
evaluation criteria.
3.4.2 Develop Tender Price (Flow chart)
The price of the bid is the result of estimating process, which is influenced by
procurement planning, work scope, evaluation and calculation. H2O creates a
monitoring and post evaluation process for bids. In this process is important analyses
the cause of unsuccessful bids for further bidding. The follow flow chart explains the
estimating price process.
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References
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Sharkey, J, Bell, M, Jocic, W, & Marginean, R 2014, Standard Forms of Contract in the
Australian Construction Industry: Research Report, Parkville : Melbourne Law School,
June 2014. APPENDIX A
ANNEXURE A: AS 4910-202
1
The Purchaser:
ACN and ABN
Purchasers address:
The Supplier:
ACN and ABN
Suppliers address:
8
9
Victoria
10
Currency
Place for payments
Place of business of bank
Australian dollar
Purchasers Address
Victoria
11
N/A
Lower Limit
N/A
Supplier's security
Form (Claus 3)
Amount or maximum percentage of Contract
sum *If nothing stated, 5% of the contract
sum
If retention moneys, percentage of each
progress certificate (clause 3 and subclause
24.1)
N/A
Retention
5 % contract sum
N/A
12
Purchaser's security
Form (Claus 3)
N/A
N/A
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15
16
28 days
17
18
19
20
21
22
23
24
25
26
Delay damages
a) Other compensable causes (page 1,
paragraph (b) of clause 1 and subclause
17.6)
(b) rate (subclause 17.6)
All works
N/A
24 months from commissioning or 26
months from delivery whichever comes
Before the Supplier commences performance of the
Contract.
yes
$20 million
For the duration of the contract.
yes
$20 million
For the duration of the contract.
N/A
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27
28
20 business days
31
32
33
N/A
29
30
34
35
36
38
5 Business Days
5 Business Days
6% per annum
Mark Hunter
Rules 518 of the Rules of The Institute of Arbitrators
& Mediators Australia
for the Conduct of Commercial Arbitrations
President of the Institute of Arbitrators & Mediators
Australia.
$ 20 million
$5 million
$5 million
The contractor fixed Price as adjusted pursuant to the
contract.
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Contract
Consequence
Likelihood
Almost Certain
Likely
Possible
Unlikely
Rare
E
D
C
B
A
Minor
Conditions
of the
contract
Moderate
Problems
with claims
and
payments
Catastro
phic
Major
Redefinition
Contract.
Insignific
ant
Minor
Moderate
Major
1
2
3
4
Moderate Significant Significant
High
Low
Moderate
Significant
High
Low
Moderate
Moderate
Significant
Low
Low
Moderate
Significant
Low
Low
Moderate
Moderate
Contract
severely
affected.
Dispute
pay
damage
Catastro
phic
5
High
High
High
Significant
Significant
Legend
H = high risk, detailed research and management required at
senior
S = significant risk, senior management attention needed
M = moderate risk, management responsibility must be
specified
L = low risk, manage by routine procedures
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Insignificant
Minor
Consequence
Major
Catastrophic
Moderate
Labor Safety
Injuries not
requiring
Medical
assistant
First Aid
treatment
Serious injury/
Treatment
Multiple
serious
injuries
Hospitalization
Contract
Minor
change
without
impact
Conditions
of the
contract
Problems with
claims and
payments
Re-definition
Contract.
Minor delay
with minor
impact
Re-scheduling
some tasks,
delayed less
than 1 week
Operation, Maintenance
and Quality
Financial
Consequence
Likelihood
Almost Certain
Likely
Possible
Unlikely
Minor delay
without
impact
1% Bid price
Replace
minor
equipment
or redesign
the
Maintenance
Guideline
2.5% Bid
price
Insignificant
Minor
Minor
adjustment
in operation
without
impact
1
E
D
C
B
Moderate
Low
Low
Low
Timing se
Repetitive
problems in
operation.
Service is
degraded.
>10% Bid
price
Moderate
Major
Catastrophic
Inconvenient
but not client
service
compromise
2
Significant
Moderate
Moderate
Moderate
Delivery
delayed in 1
week.
Service failur
Significant
Significant
Moderate
Moderate
High
Significant
Significant
Significant
Si
Rare
A
Low
Low
Moderate
Legend
H = high risk, detailed research and management required at senior
management
S = significant risk, senior management attention needed
M = moderate risk, management responsibility must be specified
L = low risk, managed by routine procedures
Moderate
Si
Likelihood Rating
Almost Certain
E
Likely
D
Possible
C
Unlikely
B
Description
Is expected to occur in most circumstances
Will probably occur in most circumstances
Might occur at some time
Could occur at some time
Rare
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