Tenders Subcommittee
– Terms of Reference
A Subcommittee of
the Works and Services Committee
Fields of
Activity
The Tenders Subcommittee is responsible for assisting
council in its general overview of procurement and tender activity by accepting
tenders which exceed the Chief Executive’s delegated authority to approve,
for projects previously approved by Council or a Standing Committee within the
delegated authority.
Membership
Chairman appointed
by the Council
4 members
appointed by the Council
Chief Executive
Group Manager:
Asset Management
For the avoidance
of doubt the references in this delegation to the ‘Chief Executive’
and ‘Group Manager: Asset Management’ extends to include any
persons from time to time appointed in writing to those roles in an acting
capacity.
Quorum – Any four members.
Delegated
Powers
Authority to accept tenders for individual projects previously approved
by the Council or a Standing Committee of the Council up to a value of
$8,000,000
Responsibility to provide oversight and direction on tendering
processes in general and/or specific issues relating to a particular project
The Committee
reports to the Works and Services Committee
HASTINGS DISTRICT COUNCIL
Tenders Subcommittee MEETING
Thursday, 28 September 2017
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VENUE:
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Guilin Room
Ground Floor
Civic Administration Building
Lyndon Road East
Hastings
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TIME:
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9.00am
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A G E N D A
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1. Apologies
At the close of the agenda no
apologies had been received.
Leave of Absence had previously
been granted to Councillor Travers.
2. Conflict
of Interest
Members need to be vigilant to
stand aside from decision-making when a conflict arises between their role as a
Member of the Council and any private or other external interest they might
have. This note is provided as a reminder to Members to scan the agenda
and assess their own private interests and identify where they may have a
pecuniary or other conflict of interest, or where there may be perceptions of
conflict of interest.
If a Member feels they do
have a conflict of interest, they should publicly declare that at the start of
the relevant item of business and withdraw from participating in the
meeting. If a Member thinks they may have a conflict of interest,
they can seek advice from the Chief Executive or Executive Advisor/Manager:
Office of the Chief Executive (preferably before the meeting).
It is noted that while Members can
seek advice and discuss these matters, the final decision as to whether a
conflict exists rests with the member.
3. Confirmation
of Minutes
Minutes of the
Tenders Subcommittee Meeting held Thursday 14 September 2017.
(Previously circulated)
4. CON2017065
Maraekakaho Road (Southampton Street to Francis Hicks Avenue), Windsor Avenue
(Ada Street to Grove Road) and Railway Road/State HIghway 2 Intersection 5
5. Additional
Business Items
6. Extraordinary
Business Items
7. Recommendation
to Exclude the Public from Items 8, 9, 10 and 11 11
8. External Credit
Rating Services
9. CON2017071
Anderson Park BD1108 Sportsgrounds Changing Room Upgrade
10. Te Mata Park Toilets and
Shelter Construction - CON2017079
11. Havelock North Trunk Water
Main - Direct Engagement of Steelpipe NZ for Pipe Supply
REPORT TO: Tenders
Subcommittee
MEETING DATE: Thursday 28
September 2017
FROM: Transportation Asset Manager
Marius
van Niekerk
SUBJECT: CON2017065
Maraekakaho Road (Southampton Street to Francis Hicks Avenue), Windsor Avenue
(Ada Street to Grove Road) and Railway Road/State HIghway 2 Intersection
1.0 SUMMARY
1.1 The
purpose of this report is to gain the Subcommittee’s approval to award
CON2017065 – Road Reconstruction - Maraekakaho Rd (Southampton St
to Francis Hicks Ave), Windsor Ave (Ada St to Grove Rd) and Railway Rd /
SH2 Intersection.
1.2 Tenders
were called under the Hastings District Council’s prequalification
system. The work was classified as Class 1, with a work category of Road
Construction Complex A, Stormwater Simple B and Waste Water Simple B.
1.3 Tenders
were invited under the “Lowest Price Conforming” method. Three
tenders were received.
1.4 This
report concludes by recommending that CON2017065 – Road Reconstruction
- Maraekakaho Rd (Southampton St to Francis Hicks Ave), Windsor Ave
(Ada St to Grove Rd) and Railway Rd / SH2 Intersection be awarded to Russell
Roads Ltd at the price of $1,085,126.75 (excl. GST).
2.0 BACKGROUND
2.1 This
project involves road reconstruction of Maraekakaho Rd, Railway Rd/SH2
Intersection and Windsor Ave.
2.2 Work
activities include earth works, pavement construction, Asphaltic Concrete (AC)
paving, chipseal surfacing, kerb and channel and footpath works, grass berm
works, gravity sewer construction, tree pit installations, minor storm water
works, tree removal and fence installation.
2.3 The
work is included in the HDC annual plan.
2.4 The
Windsor Ave site was tendered as provisional, subject to funding and decisions
regarding wider Council water infrastructure requirements.
2.5 The
Maraekakaho Road site is programmed to start on 16 October 2017 and Windsor Ave
on 12 February 2018.
2.6 The
Railway Road site intersects SH2 and is subject to a memorandum of
understanding between Hastings District Council (HDC) and NZTA with regards to
funding. This site was programmed to start on 6 November 2017 but will no
longer proceed.
2.7 Only
Tenderers qualifying for the highest work category may tender for the Contract,
in this case Road Construction Complex A. The Prequalified Tenderers invited to
submit tenders are listed below.
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Invited Tenderers
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Higgins Contractors
Ltd
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Russell Roads Ltd
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Downer NZ Ltd
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Fulton Hogan Ltd
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Quality Roading and Services (Wairoa) Ltd
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3.0 TENDERS
RECEIVED
3.1 Tenders
for the above contract closed at 4.00pm on Wednesday 16 August 2017 and were
opened in the presence of Jackie Evans, Democratic Support Manager, and Lydia Mueller, HDC Business Support: Asset Management.
3.2 The
tenders were recorded by Jackie Evans as follows:
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Name
of Tenderer
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Tendered
Price
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1. Russell Roads Ltd
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$1,279,846.75
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2. Downer NZ Ltd
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$1,490,919.08
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3. Fulton Hogan Ltd
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$1,577,555.00
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3.3 The
Engineer’s Estimate for the tendered works was $1,626,306.50.
3.1 The
comparison with tendered prices showed the differences were throughout the
rates.
4.0 TENDER
PROCESS
4.1 Tender documents indicated that the successful
Tenderer would be determined based on the Prequalification - Lowest Price
Conforming Method in accordance with the Hastings District Council Procurement
Manual.
5.0 TENDER
EVALUATION PROCESS
5.1 The
evaluation was carried out by Des Parkinson (Certified Evaluator - Stantec),
Ansonica Botha (HDC), and Derek Bensemann (Stantec).
5.2 The
Tender Evaluation Team (T.E.T.) confirm that none of them have personal
relationships with any owners, directors or employees of the companies listed
above, or any financial or commercial interest in any of the companies that
would create a conflict of interest with respect to this tender evaluation
process.
5.3 A
copy of the evaluation information is appended to this report.
6.0 RAILWAY ROAD/SH2
INTERSECTION SITE
6.1 A
memorandum of understanding exists between HDC and NZTA that the costs of work
on intersections that are maintained by the two roading authorities will be
shared.
6.1 Following
discussions with NZTA, it was decided that construction of the Railway Road/SH2
Intersection site would not proceed due to NZTA funding constraints and be
re-programmed for the 2018 -19 financial year.
6.2 On
this basis this site is to be removed from the contract.
6.3 In
discussions between the Engineer to the Contract and the tenderer with the
lowest price, Russell Roads Limited, it was agreed that were they to be awarded
the tender, there will be no claim relating to the removal of the Railway
Road/SH2 Intersection site from the tender.
6.4 The
value of the works for the Railway Road/SH2 Intersection site tendered by
Russell Roads Ltd was $194,720.00. Removing these works will reduce the total
value of the tender from $1,279,846.75 to $1,085,126.75 (excl. GST).
7.0 WINDSOR
AVE SITE
7.1 Tenderers
were advised that the Windsor Ave site was a Provisional Item and that it was
subject to funding and decisions regarding wider Council water infrastructure
requirements.
7.2 Following
the Request for Tender, it has been confirmed that the work is to be undertaken
as there are alternative routes for any future water infrastructure
requirements.
8.0 FINANCIAL
IMPLICATIONS
8.1 The
works identified in this contract are to be funded from Council’s budget
allocations for roading, wastewater and parks and properties.
8.2 The
table below shows project costs for the 2017/18 financial year and compares the
costs anticipated as a result of this tender to the allocated funds. The
allocated funds are based on officers’ preliminary estimates for the
individual projects to develop the renewals budgets plus any adjustments made
by the Asset Managers to the project budgets in the interim as the work
programme is delivered.
8.3 The
funds Officers assigned for this Project for the Maraekakaho Rd and Windsor Ave
sites are shown below:
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Budget Area
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Tender Price
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Material Costs
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Ancillary Costs
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Total Project Cost
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Funds Allocated
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Variance
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Subsidised Roading
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$843,218.00
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$108,004.00
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$951,222.00
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$960,000.00
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$8,778.00
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Unsubsidised Roading
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$193,880.75
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$193,880.75
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$200,000.00
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$6,119.25
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Wastewater
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$48,028.00
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$11,000.00
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$59,028.00
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$60,000.00
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$972.00
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Parks & Property
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$2,700.00
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$2,700.00
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$5,000.00
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$2,300.00
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Total
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$1,085,126.75
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$2,700.00
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$119,004.00
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$1,206,830.75
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$1,225,000.00
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$18,169.25
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8.1 A
Contract contingency of $140,000 (Maraekakaho Rd & Windsor Ave only) has
been included in the above costs.
8.2 The “Ancillary
Costs” items include design fees and auxiliary works by others outside
the contract.
8.3 Following the award of
the contract at the tendered price the Railway Rd / SH2 Intersection site will
be removed in accordance with the Conditions of Contract.
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9.0 RECOMMENDATION
A) That the Transportation Asset Manager’s report titled
“Tender Recommendation: CON2017065 – Road Reconstruction
- Maraekakaho Rd (Southampton St to Francis Hicks Ave), Windsor
Ave (Ada St to Grove Rd) and Railway Rd/SH2 Intersection be accepted.
B) That the tender for Contract CON2017065 – Road
Reconstruction - Maraekakaho Road (Southampton St to Francis Hicks Avenue),
Windsor Avenue (Ada Street to Grove Road) and Railway Road/State Highway 2
Intersection from Russell Roads Limited at the tender price of $1,279,846.75
(excl. GST) be accepted.
C) That the removal of the Railway Road/SH2 Intersection site, with
the value of $194,720.00 (excl. GST), from the scope of works of Contract
CON2017065 – Road Reconstruction - Maraekakaho Road (Southampton Street
to Francis Hicks Avenue), Windsor Avenue (Ada Street to Grove Road) and
Railway Road/SH2 intersection be authorised.
D) That Contract CON2017065 – Road Reconstruction - Maraekakaho
Road (Southampton St to Francis Hicks Avenue), Windsor Avenue (Ada Street to
Grove Road) and Railway Road/SH2 Intersection, as amended by the withdrawal
of the Railway Road site, be awarded to Russell Roads Limited at the price of
$1,085,126.75 (excl. GST).
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Attachments:
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1
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Tender evaluation form
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cg-14-17-00067
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HASTINGS DISTRICT COUNCIL
Tenders Subcommittee MEETING
Thursday, 28 September 2017
RECOMMENDATION TO EXCLUDE THE PUBLIC
SECTION 48, LOCAL GOVERNMENT OFFICIAL INFORMATION AND
MEETINGS ACT 1987
THAT the public now be excluded from the
following part of the meeting, namely:
8. External
Credit Rating Services
9. CON2017071
Anderson Park BD1108 Sportsgrounds Changing Room Upgrade
10. Te
Mata Park Toilets and Shelter Construction - CON2017079
11. Havelock
North Trunk Water Main - Direct Engagement of Steelpipe NZ for Pipe Supply
The general
subject of the matter to be considered while the public is excluded, the reason
for passing this Resolution in relation to the matter and the specific grounds
under Section 48 (1) of the Local Government Official Information and Meetings
Act 1987 for the passing of this Resolution is as follows:
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GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED
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REASON FOR PASSING THIS RESOLUTION IN RELATION TO
EACH MATTER, AND
PARTICULAR INTERESTS PROTECTED
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GROUND(S) UNDER SECTION 48(1) FOR THE PASSING OF EACH
RESOLUTION
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8. External
Credit Rating Services
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Section 7 (2)
(h)
The withholding
of the information is necessary to enable the local authority to carry out,
without prejudice or disadvantage, commercial activities.
Cost information
was provided as confidential.
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Section
48(1)(a)(i)
Where the Local
Authority is named or specified in the First Schedule to this Act under
Section 6 or 7 (except Section 7(2)(f)(i)) of this Act.
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9. CON2017071
Anderson Park BD1108 Sportsgrounds Changing Room Upgrade
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Section 7 (2)
(h)
The withholding
of the information is necessary to enable the local authority to carry out,
without prejudice or disadvantage, commercial activities.
Costs provided by
the Tenderers are confidential.
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Section
48(1)(a)(i)
Where the Local
Authority is named or specified in the First Schedule to this Act under
Section 6 or 7 (except Section 7(2)(f)(i)) of this Act.
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10. Te
Mata Park Toilets and Shelter Construction - CON2017079
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Section 7 (2)
(i)
The withholding
of the information is necessary to enable the local authority to carry on,
without prejudice or disadvantage, negotiations (including commercial and
industrial negotiations).
Costs provided by
the Tenderers are confidential.
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Section
48(1)(a)(i)
Where the Local
Authority is named or specified in the First Schedule to this Act under
Section 6 or 7 (except Section 7(2)(f)(i)) of this Act.
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11. Havelock
North Trunk Water Main - Direct Engagement of Steelpipe NZ for Pipe Supply
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Section 7 (2)
(i)
The withholding
of the information is necessary to enable the local authority to carry on,
without prejudice or disadvantage, negotiations (including commercial and
industrial negotiations).
Contract
negiotations for the supply of materials.
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Section
48(1)(a)(i)
Where the Local
Authority is named or specified in the First Schedule to this Act under
Section 6 or 7 (except Section 7(2)(f)(i)) of this Act.
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Hastings District
Council