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, 25 January 2018
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VENUE:
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Landmarks 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 Redstone
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 21 December 2017.
(Previously circulated)
4. CON2017046 Omahu
Industrial Bulk Water Services 5
5. Additional
Business Items
6. Extraordinary
Business Items
REPORT TO: Tenders
Subcommittee
MEETING DATE: Thursday 25
January 2018
FROM: Stormwater Manager
Matthew
Kneebone
SUBJECT: CON2017046
Omahu Industrial Bulk Water Services
1.0 Summary
1.1 The
purpose of this report is to seek approval from the Tenders Subcommittee to
award Contract No. CON2017046 – Omahu Industrial Bulk Water Services.
1.2 Tenders
were invited under the Open Tender – Lowest Price Conforming method.
One tender was received from Fulton Hogan Ltd.
1.3 The
contract is expected to run for 38 weeks, between January 2018 and September
2018.
1.4 This
report concludes by recommending that Contract CON2017046 be awarded to Fulton
Hogan Ltd at the tendered price of $4,145,369.20 (excl. GST).
2.0 BACKGROUND
AND SCOPE OF WORK
2.1 This
project is one of the major growth projects listed in the Long Term Plan.
The construction of new water and wastewater pipelines are needed to service
the recently rezoned Omahu Road Industrial area.
2.2 This
contract is for the supply and installation of water and wastewater pipelines,
wastewater pump stations and other associated works. The scope of work includes
the construction of:
· 2078m of wastewater
pipeline
· 2868m of water
pipeline
· two wastewater pump
stations
· associated manholes,
valves, chambers and vents
· connections to
existing mains
· 2072m long access
road (6m wide) along the new service corridor for firefighting access and
maintenance purposes.
2.3 Attachment
1 shows the location and extent of the proposed works.
2.4 Council
has purchased a 24m wide service corridor along the rear of the land rezoned
for industrial use. The new water and wastewater pipes will be laid in a
predetermined 7m wide corridor. The remaining 17m wide strip will be used
for the construction of infiltration basins for onsite stormwater
disposal. The stormwater infiltration basins will be constructed by land
owners when their property is being developed. There are no stormwater
works as part of this contract.
3.0 Health
and Safety and Risk Management
3.1 The
Request for Tender included a risk register which identified the key Health and
Safety risks for the Tenderers to consider when preparing their submission.
3.2 The
Contractor will be required to provide a detailed Site Specific Health and
Safety Plan upon Contract award. This plan will address all Health and Safety
aspects related to the contract works.
3.3 The
main risks associated with this project is working with and managing live
traffic, unidentified utility services, confined space work, public health and
contamination of the water pipeline.
3.4 Fulton
Hogan Ltd’s submission satisfactorily described how these risks will be
mitigated.
4.0 TENDERS
RECEIVED
4.1 Tenders
were publicly advertised on GETS with 2 sets of documents being uplifted. One
tender was received by the closing date of Wednesday 22 November 2017, as summarised
in Table 1 below:
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Name of
Tenderer
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Tendered Price
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TAGS Yes / No
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1. Fulton
Hogan Ltd
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$4,231,434.50
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No
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Table
1 - Summary of Tender Prices
5.0 TAGS,
ERRORS OR OMISSIONS
5.1 There
were no errors or omissions in the tenders.
6.0 TENDER
EVALUATION
6.1 In
accordance with the conditions of tendering, tenders were evaluated in line
with the lowest price conforming method.
6.2 The
tender requirements to be met included a conforming statement of attributes
detailing the proposed methodology, track record and relevant skills/experience
of the tenderer for the construction of the works. The results of the
tender evaluation were that the tender submitted by Fulton Hogan Ltd was
conforming and therefore is the lowest price conforming tender.
6.3 The
Tender Evaluation report is attached as Attachment 2.
7.0 TENDER
NEGOTIATION
7.1 Council’s
tender documents provide for the opportunity to enter into discussion with the
preferred tenderer to negotiate changes including scope and price which could
benefit the Council.
7.2 Savings
of $86,065.30 were achieved relating to the water and sewer mains, sewer
manholes and pump chambers.
7.3 The
revised negotiated total tender price is $4,145,369.20 ( excl. GST)
8.0 Budget
8.1 Council’s
Budget Allocation for this Project is as follows:
|
Budget Area
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Tender Cost
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Material Cost
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Other Costs
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Total Project
Cost
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Budget
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Variance
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Wastewater
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$2,644,751.50
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$ N/A
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$490,000
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$3,134,751.50
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$3,874,000
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$739,248.50
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Water Supply
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$1,500,617.70
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$ N/A
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$255,000
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$1,755,617.70
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$1,770,000
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$14,382.30
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Total
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$4,145,369.20
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$ N/A
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$745,000
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$4,890,369.20
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$5,644,000
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$753,630.80
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Table 2 – Summary of total cost and
budgets.
Note: Other Costs include: Fees, auxiliary works, provision
of power and site investigation works etc.
8.2 NOTE:
NZS 3910:2013 provides for certain events and circumstances to be treated as
variations, resulting in additional costs and time extensions. The tendered
price includes a Contingency Allowance of $250,000.
8.3 The
forecast budget variance will be retained as part of the overall project budget
as a provisional variation sum until completion of the project.
9.0 IMPLEMENTATION
ISSUES
9.1 Council
has entered into a legal agreement with one landowner (Hustler) to provide
services by 30 May 2018. If the contract works required to service this
property are not in place at this time, Council will be obligated to provide an
interim servicing solution at Council’s own cost.
9.2 The
estimated cost of such an interim solution could be in the order of $20,000 for
which funding is available from the existing project budgets, which may be
undertaken as a variation to the contract.
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10.0 RECOMMENDATION
A)
That the report of the Stormwater
Manager titled “CON2017046 Omahu Industrial Bulk Water Services
dated 25/01/2018 be received.
B)
That the tender from Fulton Hogan Ltd
for Contract No. CON2017046 – Omahu Industrial Bulk Water Services in
the sum of $4,231,434.50 plus $634,715.18 GST, totaling $4,866,149.68 be
approved.
C)
That authority to enter into Contract
No. CON2017046 – Omahu Industrial Bulk Water Services on behalf of
Council be delegated to the Group Manager: Asset Management
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D) That delegated authority be granted, on behalf of the Council, to
the Group Manager: Asset Management or Alliance Team Manager to award cumulative contract variations to Contract No. CON2017046
– Omahu Industrial Bulk Water Services up to the value of the
contingency sum of $250,000 plus GST
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Attachments:
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1
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CON2017046 Omahu Industrial Bulk Water Services location
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PRJ16-119-0021
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2
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CON2017046 Omahu Industrial Bulk Water Services
Tender Evaluation
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PRJ16-119-0022
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Hastings District
Council
