Tendering of works 3.7

Tenders required 3.7.1

Our conforming tender is the schedule of rates tender outlining our drainage items to be constructed. Tenders must be submitted at least seven days prior to the pre-commencement meeting.

The lowest acceptable tender will form the basis of any reimbursement unless, in our opinion, the Company providing the tender doesn't comply with other key selection criteria.

The owner may elect to use another contractor than the lowest tenderer, but there'll be no additional payment from us.

The following requirements apply when tendering for our projects:

  1. Where the works are estimated to be less than $20,000, the reimbursement is to be based on our standard refund rates.
  2. We require tenders sought for our projects be competitive and reflect true market value for the works. Two options are available to developers when seeking tenders:
    a. By invitation
    The developer or consultant may have a list of preferred contractors they're familiar with who have proven themselves over time to be suitably qualified to complete the works. In obtaining tenders this way, the developer needs to be satisfied all the tenderers meet the criteria set out in Section 3.7.5. To ensure sufficient tenders are obtained, we suggest at least four tenders be sought for works up to $1 million and at least five tenders be sought for works over $1 million.
    b. Public advertising
    If seeking public tenders by advertising, the developer or consultant needs to assess each tenderer in line with the criteria set out in Section 3.7.5. Tenderers not meeting this criteria shall be deemed non-compliant and be eliminated from any further deliberations.

Preparing the schedule of quantities for our capital works 3.7.2

Having received details of the three tenders (PDF format), we'll calculate the reimbursement applicable to the project.

The consultant is to itemise separately those components of the works that form part of our asset. To assist us to provide a prompt and accurate assessment of the reimbursement, the consultant should:

  • arrange the data into a readily importable electronic format (Excel with column headings Item, Description, Quantity, Unit, Rate, Amount)
  • confirm arithmetic of all submissions
  • crosscheck for inconsistencies between tenderers (for our scope of works)
  • identify items they believe are reimbursable in delivering our scope of works

By providing the information this way, the consultant will be better placed to manage the developer's expectations, as:

  • the tenders will have been reviewed for omissions, avoiding the need for variation claims later
  • an estimate for the reimbursement amount will already have been made, which gives the developer a realistic appraisal of the financial situation before our formal response
  • our reimbursement proposal will be available sooner

Special conditions for tenders 3.7.3

Changes to design prior to the closure of tenders

If changes are required to the scope of the works during the tender period, an addendum is to be issued to all tenderers. If the amendment is significant, the tender may require an extension of the tendering period, re-advertising or re-issuing at the discretion of the developer's consultant.

The consultant's procedures and documentation must be able to support compliance if audited.

Lodgement of tenders

All projects estimated to be above $450,000 are to be lodged at Tenders VIC website

The procedure is as follows:

Step 1

Contact the Procurement team on 131 722 and email the following information to [email protected] before contractors lodge tenders on the website:

  • title or description of the tender
  • consultant contact name, phone number and email address
  • closing time and date
  • list of invited tenderers, contact name, phone number and email address. If possible, provide the name of the tenderer's Tenders VIC registered person who will submit the tender online (the system will notify the tenderer's registered person of the tender)
  • tender number (consultant reference)

The consultant/developer is to advise the tenderers to register with Tenders VIC well before attempting to lodge their tender online.

Step 2

The consultant/developer is to include the following wording in the tender documentation:

Front cover:

Please note: Tenderers are advised to register on Tenders VIC website in order to submit their tenders.

Please submit your tender response well before the tender closing time and allow time to upload or re-upload. It's recommended to start the tender response upload two hours prior to the closing time.

Please check the receipt issued by Tenders VIC carefully to ensure all files have been uploaded. If you haven't received a receipt from Tenders VIC, you must resubmit your tender response prior to the closing date and time.

Internet Explorer Version 10 users, please enable Active Scripting on your Internet Options setting to lodge tender responses.

Please take note of the ‘elodgement File Conventions Notes’ on the Tenders VIC homepage prior to lodging a tender (file naming and size conventions).

If you encounter any difficulties in lodging your tender or any technical problems please call the helpdesk on (03) 9651 1671 between 9.00am and 5.00pm AEST or email [email protected].

Within the tender submission:

Tenderers are deemed to accept the online user agreement applying to the website and must comply with the requirements set out on the website.

Late tenders:

Tenders lodged after the closing time or lodged at a location or in a manner that is contrary to that specified in this request for tenders will be disqualified from the tendering process and will be ineligible for consideration. However, a late tender may be accepted where the tenderer can clearly demonstrate to the satisfaction of us that late lodgement of the tender was caused by a system interruption in case of the eTender system or that access was denied or that a major/critical incident hindered the delivery of their tender documents (tenderers must contact the Tenders VIC helpdesk (prior to the closing time) to lodge the issue before contacting our representative) and, in either case, that the integrity of the tendering process will not be compromised by accepting a tender after the closing time.

We'll inform a tenderer whose tender was lodged after the closing time of its ineligibility for consideration.

Step 3

Our procurement team will notify and forward the consultant the obtained tenders for the project via email or on a portable USB device.

Step 4

The consultant will be required to assess the obtained tenders in conjunction with the developer and make a recommendation on the successful tenderer.

If the developer has obtained tenders for a project without using the above procedure and the tendered cost of the works is greater than $500,000, then the tendering process should ensure systems are in place to protect confidentiality between tenderers. Tenders shouldn't be accepted after the due date and time. In these situations, we'll request details of the tender process employed. If we find evidence the tendering process was inadequate, re-tendering may be requested.

Inability to provide three conforming tenders 3.7.4

In some instances three tenders can't be provided (e.g. one or more contractors are unavailable or unable to commit to the project). The inability to provide three conforming tenders should be expressed in writing to us. If the reasons are found to be valid, we will then require the developer to seek comparative rates/prices based on one of the following (in order of acceptability):

  1. Seek comparative tenders from other projects to demonstrate that the contractor’s price is in line with current market value.
  2. Accept two conforming tenders provided the costs are relatively similar.
  3. Obtain a quote from an independent contractor or company (based on the same schedule of quantities) who has previously been successful in constructing similar works.
  4. Calculate an estimate works based on our standard refund rates.

If no reasonable comparison can be made, the developer may be required to re-tender the project and obtain more prices.

If a re-tender is required, all previous tenderers must be given the opportunity to submit new bids.

Our tender evaluation process 3.7.5

Reimbursements will be calculated using the rates submitted in the lowest conforming tender. The developer's consultant will be advised of the proposed reimbursement and be requested to raise any issues regarding its calculation prior to us formally committing funds for the reimbursement.

Although the selection of a contractor is a matter for the developer, we suggest the tenders be evaluated in the following criteria:

  1. Occupational health and safety record
  2. Price
  3. Financial stability
  4. Technical capabilities
  5. Management systems
  6. Prior experience and performance

We'll acknowledge receipt of the tender documents in writing upon advising of recommended reimbursement. For soft-engineering projects, the owner will also be notified of our acceptance of the contractor.

Alliance contracts 3.7.6

Alliance contracts or performance-based contracts utilise evaluation mechanisms that aren't heavily based on price. As a result, the contract may not necessarily be awarded to the lowest tenderer.

In some instances, the developer may establish an 'alliance contract' with a single contractor. This option becomes possible when a development consists of a large number of stages to be constructed sequentially over a relatively short period of time. Based on conceptual drawings for the development, the developer will seek tenders from prospective contractors to undertake all of the works within the development.

The successful tenderer will then provide detailed cost estimates for each of the stages of works as they progress, based on detailed design plans and the rates supplied in the original tender.

We're to be informed of the developer's intention to enter into such an arrangement as soon as possible. We're to be advised of the successful tenderer and the range of competing prices as soon as possible. Details of the tenders will need to be provided so we can be satisfied the items quoted are competitive.

Where subsequent pipeworks within the estate are to be reimbursed by us, a comparison will be made between the contractor's price and the cost of works based on our standard refund rates. The reimbursement will be based on the lower of the two values.

Where bulk earthworks are involved (i.e. the construction of a retarding basin, floodway or wetland), we'll obtain an independent assessment of the costs based on the design plans and the schedule of quantities. This assessment will be carried out our cost. A comparison will be made between the contractor's price and the above assessment with the reimbursement being based on the lower of the two values.

Although our approval to the arrangement may be obtained at the start of the process, separate approval will be required for each stage before any actual reimbursements are made. The developer will continue to be taking a financial risk if works commence prior to approval being granted by us.

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Last updated:
28 May 2018