Description: COAT-ARM Hastings District Council

 

Civic Administration Building

Lyndon Road East, Hastings

Phone:  (06) 871 5000

Fax:  (06) 871 5100

WWW.hastingsdc.govt.nz

 

 

 

 

Open

 

A G E N D A

 

 

Tenders Subcommittee MEETING

 

 

 

Meeting Date:

Thursday, 8 February 2018

Time:

9.00am

Venue:

Landmarks Room

Ground Floor

Civic Administration Building

Lyndon Road East

Hastings

 

Subcommittee Members

Chair: Councillor Travers

Mayor Hazlehurst (Ex Officio)

Councillors Lyons, Nixon, Redstone and Watkins (Deputy Chair)

Chief Executive and Group Manager: Asset Management

 

Officer Responsible

Group Manager: Economic Growth & Organisation Improvement – Craig Cameron

(Quorum = 4)

Committee Secretary

Christine Hilton (Extn 5633)

 


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, 8 February 2018

 

VENUE:

Landmarks Room

Ground Floor

Civic Administration Building

Lyndon Road East

Hastings

TIME:

9.00am

 

 

A G E N D A

 

 

 

1.       Apologies

At the close of the agenda no apologies had been received.

At the close of the agenda no requests for leave of absence had been received.

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 25 January 2018.

(Previously circulated)

4.       CON2018010 - Blacks and Tois Bridge Upgrade                5

5.       CON2017109 Havelock North Trunk Water Main              11

6.       Additional Business Items

7.       Extraordinary Business Items 

 

 

     


File Ref: 17/1220

 

 

REPORT TO:             Tenders Subcommittee

MEETING DATE:       Thursday 8 February 2018

FROM:                       Bridge Engineer

Anu Ileperuma

SUBJECT:                 CON2018010 - Blacks and Tois Bridge Upgrade        

 

 

1.0     Summary

1.1     The purpose of this report is to seek approval from the Tenders Subcommittee to award Contract No. CON2018010 Bridge Strengthening - Blacks and Tois Bridge.

1.2     This tender recommendation is submitted to the Tenders Subcommittee for approval because the value of the contract is significant.1.3      Tenders were invited under the contractor pre-qualification for physical works system, category Bridge Construction Complex B.  One tender was received.

1.4     The contract is expected to run for 16 weeks from 26 February to 18 June 2018.

1.5     This report concludes by recommending that Contract CON2018010 be awarded to Downer NZ Ltd at the tendered price of $1,189,956.09 (excl. GST).

2.0     Background and Scope of Work

2.1     This work has been included in the long term plan as part of high productivity motor vehicles (HPMV) bridge strengthening programme.

2.2     This contract is for the strengthening of two bridges (Blacks and Tois) on the Taihape Road to HPMV loading. The work involves strengthening decks of both bridges using concrete overlays, new bridge approaches, installing compliant guardrails and kerbing.

2.3     The works require the precise installation of shear connectors which need to be drilled through the existing deck and beam to provide the necessary strength and connection to the new deck.

2.4     Two bridges (Pukehamoamoa and Kawera) have been strengthened to date and with the strengthening of Blacks and Tois bridges (this contract) and the Kuripapango Bridge, this will complete the programme required for Taihape Road to be a HPMV route.

2.5     This type of work has been categorised as Class 1 Work Complex B for Bridge Construction works as specified in Council’s Pre-Qualification Manual. Following contractors were invited to tender:

·     Downers NZ Ltd

·     Fulton Hogan Ltd

·     Concrete Structures Ltd

 

2.6     A request for tender for the same Pre-Qualification category was called for this project previously on the 22nd November 2017. Tender conditions were identical to this tender and three tenders were received.

2.7     However, the lowest conforming tender was withdrawn due to errors in their submission. The next conforming tender exceeded available budget. Tender evaluation team held negotiations with the tenderer, though this was unsuccessful (said tender was $136,000 more than current tendered price).

2.8     A decision was made to reject all tenders received and re-advertise as the price was unfavorable to the project.

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, relocation of utility services, working at height, working near water and the environmental risk of contamination of the waterway.

3.4     Downer NZ Ltd’s submission satisfactorily described how these risks will be mitigated.

4.0     Communications and public relationships management

4.1     This works will be carried out in rural Taihape Road, hence the risks related to communications are low when compared to urban projects.

4.2     The contractor is required to provide details of how they will liaise with community to keep them informed of work activities. The submission from Downer NZ Ltd, provide a clear plan to erect site signage, liaise with affected land owners and relevant stakeholders (overweight vehicles, road transport association) of the progress.

4.3     Furthermore, regular updates of the progress will be sent to stakeholders through the officers managing the project (Bridge Engineer, HDC and Senior Contracts Manager, Stantec). Council website and Facebook pages will be updated with relevant details regarding the works.

5.0     Tenders Received

5.1     Tenders were sent to the appropriate pre-qualified contractors via GETs. One tender was received by the closing date of Wednesday 24 January 2018.  This is summarised in Table 1 below:

The table below shows the price of the tender received:

Name of Tenderer

Tendered Price

TAGS

Yes / No

1.   Downer NZ Ltd

$1,189,956.09

No

                                                    Table 1 - Summary of Tender Prices

 

 

6.0     Tags, Errors or Omissions

6.1     Downer NZ Ltd’s tender had no tags, errors or omissions.

7.0     Tender Evaluation

7.1     In accordance with the conditions of tendering, tenders were evaluated in line with the Lowest Price Conforming Method by the tender evaluation team (TET) consisting of Steven Ward, Senior Contracts Manager (Stantec), Des Parkinson, Acting Alliance Manager (Stantec) and Anu Ileperuma, Bridge Engineer (HDC).

7.2     The TET confirms that none of them have any interest in the company, financial or commercial, as well as personal relationships with any owners, directors or employees that would create a conflict of interest with respect to this tender evaluation process.

7.3     In this contract the value of Provisional Sums is $85,000 with a contingency of $100,000.

7.4     The Tender Evaluation Sheet is attached (Attachment 1).

7.5     As mentioned previously Downer NZ Ltd holds pre-qualification under Council’s physical works category to be undertaking bridge works (Bridge Construction - Complex B). Furthermore, it is the TET’s opinion that, Downer NZ Ltd has the expertise, resources and financial viability to deliver this project to meet required standard set in the tender documents.

8.0     Budget

8.1     Council’s Budget Allocation for this Project is as follows:

Budget Area

Tender Cost

Material Cost

Other Costs

Total Project

Cost

Budget

Variance

HPMV Bridge Investigations

$  41,749.00

$     41,749.00

$     41,749.00

 $            0.00

HPMV Bridge Strengthening

$   988,043.66

$   988,043.66

$   990,000.00

 $     1,956.34

Minor Safety Improvements

$   201,912.43

 

 

$   201,912.43

$   200,000.00

-$     1,912.43

Rural Structural Bridge Inspections

 

 

 

 

$     50,000.00

 $   50,000.00

Total

$ 1,189,956.09

$  41,749.00

$1,231,705.09

$ 1,281,749.00

 $   50,043.91

Table 3

Note:  Other Costs include: Design Fees, Auxiliary Works, and Site Investigation Works etc.

 

8.2     NOTE: that New Zealand Standards (NZS) 3910:2013 provides for certain events and circumstances to be treated as variations, resulting in additional costs and time extensions. The price includes a Contingency Allowance of $100,000.

8.3     The variance of $50,000 is reserved for unforeseen circumstances or variations which exceeds the contingency allowance above.

8.4     As the design costs of $41,749 were set, remaining budget have been reallocated to other projects.

9.0     Implementation Issues

9.1     There are no expected implementation issues with this contract.

 

10.0    RECOMMENDATION

A)    That the report of the Bridge Engineer titled “CON2018010 - Blacks and Tois Bridge Upgrade” dated 8/02/2018 be received.

B)    That the tender from Downers NZ Ltd for Contract No. CON2018010 Bridge Strengthening - Blacks and Tois Bridge in the sum of $1,189,956.09 excl. GST be approved.

C)    That delegated authority be granted, on behalf of the Council, to the Group Manager: Asset Management to award cumulative contract variations to Contract No. CON2018010 Bridge Strengthening – Blacks and Tois Bridge up to the value of the contingency sum of $100,000 plus GST and up to $50,000 plus GST over the contingency sum.

 

Attachments:

 

1

CON2018010 Bridge Strengthening - Blacks and Tois Bridge - Tender Evaluation Sheet

PRJ16-2-0205

 

 

 

 


CON2018010 Bridge Strengthening - Blacks and Tois Bridge - Tender Evaluation Sheet

Attachment 1

 

PDF Creator


File Ref: 17/1328

 

 

REPORT TO:             Tenders Subcommittee

MEETING DATE:       Thursday 8 February 2018

FROM:                       Special Projects Engineer

Scott Estcourt

SUBJECT:                 CON2017109 Havelock North Trunk Water Main

        

 

 

1.0     SUMMARY

1.1     The purpose of this report is to seek approval from the Tenders Subcommittee to award Contract No. CON2017109 – Havelock North Trunk Water Main.

1.2     The primary driver for the project arises from the requirement to provide an alternative means of potable water to Havelock North to enable the Brookvale supply source to be abandoned.

1.3     In accordance with the agreed procurement plan, Council has completed an Expression of Interest process. As a result of this process March Construction Ltd and Fulton Hogan Ltd were selected to tender for the works.

1.4     Tenders were then invited from March Construction Ltd and Fulton Hogan Ltd, and evaluated in accordance with the Lowest Price Conforming method.

1.5     Contract CON2017109 includes three separate tenders.  The Tenders Subcommittee has authority to accept tenders for individual projects previously approved by Council or a Standing Committee of the Council up to a value of $8,000,000.  Each of the three separate tenders is under the $8,000,000 threshold.

1.6     The Tenders Subcommittee in their recommendations for this report has the option to approve or decline each or all of the three separate tenders that are proposed to be bundled into Contract CON2017109.

1.7     This report concludes by recommending that each of the three tenders bundled into Contract CON2017109 for the construction of the Havelock North Trunk Water Main be awarded to March Construction Ltd for a total contract sum of NZD$9,762,567.94 exclusive of G.S.T.

2.0     BACKGROUND

2.1     The contract works comprise 3 separate portions of work, being;

·    Tender 1: Water Trunk Main

·    Tender 2: Wastewater Upgrade

·    Tender 3: Cycleway

2.2     The wastewater and cycleway works been included in the contract as they are in close proximity to the alignment of the water trunk main.

Tender 1: Trunk Water Main

2.3     Resource consent WP170474Ta authorises the abstraction of water from 3 bores along Brookvale Road, Havelock North, for the purpose of using the water as part of the public water supply network. The consent was granted in August 2008 and expires on 31 May 2018.

2.4     Leading into the current renewal process, Council was considering retaining the borefield in a reduced capacity. However, new information (arising from the aquifer investigations associated with the August 2016 contamination event) highlighted risks to the aquifer water quality as well as a stronger connection between groundwater and stream flows than previously understood. As a result, Council has made the decision to withdraw from the Brookvale source completely.

2.5     A resource consent application has been lodged with the HB Regional Council to enable the continued use of BV3 until the alternative supply is in place and operational at which time the consent will be surrendered, and the bore and water treatment plant will be disestablished.

 

Tender 2: Wastewater Upgrade

2.6     In addition to the water trunk main, wastewater network improvement works have been identified to address existing capacity deficiency in the vicinity of Louie Street and to provide for the servicing of the future Howard Street development area.

2.7     Significant sections of the existing wastewater pipeline along the alignment need to be relayed regardless in order to enable the construction of the water supply pipeline.

2.8     That portion of the proposed wastewater works has been included within the scope of the contract works.

 

Tender 3: Cycleway

2.9     As part of the Council’s Urban Cycleway Programme, a jointly funded programme between the Council and the New Zealand Transport Agency, a shared pathway is proposed on St Georges Road between Havelock North and Crosses Road.

2.10    The cycleway is along the proposed pipeline route which provides an opportunity to incorporate this project within the scope of works.

2.11    That portion of the shared pathway along St Georges Road between Crosses Road and Howard Street form part of the contract works, and will be undertaken as part of the reinstatement for the construction of this section of the water main.

2.12    The remaining section of cycleway between Howard Street and Havelock Road will be constructed as part of contract CON2017107

3.0     SCOPE OF WORK

3.1     The contract works comprise 3 separate portions of works including;

1.  Water Trunk Main: 4824m of water supply pipelines

2.  Wastewater Upgrade: 898m of wastewater pipelines

3.  Cycleway: 750m of cyclepath

3.2     Attachment 1 shows the location and extent of the proposed works.

4.0     TENDER EVALUATION

4.1     Tenders were invited from March Construction Ltd and Fulton Hogan Ltd, and closed on 13 December 2017.

4.2     A summary of the tender prices follows;

 

 

March Construction Ltd

Fulton Hogan Ltd

Tender 1: Water Trunk Main

$7,719,263.71

$8,211,502.11

Tender 2: Wastewater Upgrade

$1,488,362.11

$1,766,727,40

Tender 3: Cycleway

$449,914.24

$447,986.84

TOTAL (Excl GST)

$9,657,540.06

$10,426,216.35

 

              Table 1 - Summary of Tender Prices

 

4.3     In accordance with the conditions of tendering, the tenders were ranked lowest to highest and the lowest priced tender submitted by March Construction Ltd was evaluated against the non-price attribute requirements set out in the Request for Tender.

4.4     The tender evaluation team has found that the tender information provided by March Construction satisfies the requirements as set out in the Request to Tender, and has therefore been deemed to be compliant with the conditions of tendering.

4.5     The tender evaluation sheet is attached (Attachment 2).

5.0     NEGOTIATIONS

5.1     The conditions of tendering provided for negotiations to be undertaken with the preferred tender for the purpose of confirming the Contractor’s ability to complete the contract works, and to identify opportunities of added benefit to Council.

5.2     Through this process, Council identified an opportunity to further extend the wastewater rising main along Howard Street as part of the contract works. This has resulted in an increased cost of $105,028 to the tendered price.

5.3     It was recognised that preliminary and general costs were not properly apportioned across the 3 separate components of the works. Preliminary and general costs have been redistributed with no net effect to the total contract value.

5.4     Additional non-price attribute information was provided by March Construction Ltd during this phase in support of their ability to undertake and complete the contract works to a suitable standard.

6.0     HEALTH AND SAFTEY

6.1     March Construction Ltd’s tender submission included their Health and Safety Policy Statement, and evidence of their Health and Saftey processes and controls. During the negotiation phase March Construction Ltd provided further information as to how health and safety risks specifically relating to the contract works will be managed.

6.2     During the negotiation phase March Construction Ltd staff walked the alignment of the works with Council and Stantec staff. Through this exercise March Construction Ltd gained a good understanding of the specific health and safety risks of the contract works.

6.3     The Tender Evaluation Team are satisfied, from the information provided, that March Construction Ltd has a good understanding of the health and safety aspects of the contract works, and they are able to properly manage these.

6.4     The specifications of the contract require that detailed methodology statements including a health and safety plan shall be submitted for approval before undertaking specific aspects of the contract works.

7.0     COMMUNICATIONS AND PUBLIC RELATIONS MANAGEMENT

7.1     March Construction Ltd and Council officers are acutely aware of the requirement for a robust communications plan for the whole of the project works.

7.2     Council has established a communications team, which includes Council, Santec and contractor staff with specific roles and responsibilities.

7.3     The communications team recognises that residents, businesses, Schools and road users must be properly informed to minimise disruption and concern.

7.4     March Construction Ltd have confirmed that they will have a fulltime dedicated public relations person based on site and will be committed to meeting their requirements as set out in the Communications Plan.

8.0     RISK MANAGEMENT

8.1     The information contained within March Construction Ltd’s tender submission, and subsequent information provided during the negotiation phase has demonstrated that March Construction Ltd is able to deliver the project works to the specifications of the contract within the timeframe allocated.

8.2     The committee may opt to award any, or none of the separate portions of work. However, this would then require negotiations to recommence with the tenderer or tenderers for the reduced scope of works.

8.3     Not awarding all portions of the contract works would likely result in increased tender costs, delays to the program of works and additional disruption to residents, businesses and road users.

 

9.0     BUDGET

9.1     Council’s budget allocation for this project is as follows:

 

Budget Area

17/18

18/19

Total

Tender 1: Water Trunk Main

Stage 1A

$7,238,500

$6,500,000

$13,738,500

Tender 2: Wastewater Upgrade

St Aubyn St E-Windsor to Park Rd

$550,000

$650,000

$1,200,000

Howard Street

$700,000

$800,000

$1,500,000

Total

1,250,000

$1,450,000

$2,700,000

Tender 3: Cycleway

Model community collector

$960,739

-

$960,739

Table 2 – Financial summary

9.2     Projected project costs are as follows:

 

Tender Price

Other Costs

Total Project Cost

Budget

Remainder

Tender 1: Water Trunk Main

$7,915,670

$2,400,000

$10,315,670

$13,738,500

$3,422,830

Tender 2: Wastewater Upgrade

$1,545,643

$100,000

$1,645,643

$2,700,000

$1,054,356

Tender 3: Cycleway

$301,255

$650,000

$951,255

$960,739

$9,484

Total

$9,762,568

 

 

 

 

 

Note:  Other costs include:  Other committed works, direct supply of materials, fees, auxiliary works, provision of power and site investigation works, project management costs etc.

 

9.3     The remainder of the costs relating to water supply are allocated to the construction of the Havelock North Booster Pump Station and the Wilson Road Water Treatment Plant.

9.4     The remainder of costs related to wastewater are allocated to the construction of the Howard Street wastewater pump station.

9.5     There are no further cycleway works programmed in the17/18 year.

 

9.6     NOTE: NZS 3910:2003 provides for certain events and circumstances to be treated as variations, resulting in additional costs and time extensions.  The price includes a Contingency Allowance of $530,000.

 

10.0    RECOMMENDATIONS AND REASONS

A)  That the report of the Special Projects Engineer titled “CON2017109 - Havelock North Trunk Water Main” dated 8/2/2018 be received.

B)  That contract CON2017109 for Tender 1 for the Water Trunk Main be awarded to the tenderer with the lowest priced conforming tender which was March Construction Ltd in the sum of NZD$7,915,670.33 exclusive of G.S.T.

C)  That contract CON2017109 for Tender 2 for the Wastewater Upgrade be awarded to the tenderer with the lowest priced conforming tender which was March Construction Ltd in the sum of NZD$1,545,643.08 exclusive of G.S.T.

D)  That contract CON2017109 for Tender 3 for the Cycleway be awarded to the tenderer with the lowest priced conforming tender which was March Construction Ltd in the sum of NZD$301,254.53 exclusive of G.S.T.

E)  That delegated authority be granted, on behalf of the Council, to the Group Manager: Asset Management to award cumulative contract variations to Contract No. CON2017109 Havelock North Trunk Water Main up to the value of the contingency sum of $530,000 plus GST.

 

Attachments:

 

1

CON2017109 Havelock North Trunk Water Main - TSC Feb 2018

PRJ17-73-0103

 

2

CON2017109 Havelock North Trunk Water Main - Tender Evaluation Attachment 2 TSC

CG-14-17-00134

 

 

 

 


CON2017109 Havelock North Trunk Water Main - TSC Feb 2018

Attachment 1

 

PDF Creator



CON2017109 Havelock North Trunk Water Main - Tender Evaluation Attachment 2 TSC

Attachment 2

 

PDF Creator