HASTINGS DISTRICT COUNCIL
Tenders Subcommittee MEETING
Thursday, 19 April 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
An apology from Councillor Redstone
has 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 5 April 2018.
(Previously circulated)
4. CON2018011
Urban Minor Safety Programme 2017/18 5
5. Additional
Business Items
6. Extraordinary
Business Items
REPORT TO: Tenders
Subcommittee
MEETING DATE: Thursday 19
April 2018
FROM: Acting Traffic Engineer
Kirsty
Horridge
SUBJECT: CON2018011
Urban Minor Safety Programme 2017/18
1.0 Summary
1.1 The purpose of this report is to provide supporting information for
the Acting Road Safety Engineer to gain the Subcommittee’s approval to
award CON2018011 – Urban Minor Safety Programme 2017-18.
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. One tender was received.
1.4 This report concludes by recommending that CON2018011 – Urban
Minor Safety Programme 2017-18 be awarded to Russell Roads Ltd at the
price of $743,547.75 (excl. GST).
2.0 Background and Scope of Work
2.1 This project involves the construction of a roundabout at Nelson
St/Eastbourne St, a pedestrian refuge in Maraekakaho Rd (immediately south of
Lowe St) and a pedestrian refuge in Karamu Rd (outside Karamu Holden).
2.2 Work activities include earth works, pavement construction,
Asphaltic Concrete (AC) paving, chipseal surfacing, kerb and channel and
footpath works, roundabout and traffic island construction, pedestrian refuge
island and kerb returns construction, gravity sewer construction, watermain
renewal and minor storm water works.
2.3 The work is included in the Hasting District Council’s (HDC)
annual plan.
2.4 The Maraekakaho Rd and Karamu Rd sites were tendered as provisional,
subject to funding.
2.5 Construction of the works are programmed to start on 7 May 2018.
3.0 Tenders Received
3.1 This type of work has been categorised as Class Roading Construction
Work Complexity A for works as specified in Council’s
Pre-Qualification Manual. Tenders were sent to the appropriate pre-qualified
contractors via GETS with three sets of documents being uplifted. One tenders
were received by the closing date of Wednesday 4 April 2018. These are
summarised in Table 1 below:
3.2 The table below shows the Prices received for the contract:
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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. Russell
Roads Ltd
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$779,255.50
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No
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Table
1 - Summary of Tender Prices
4.0
Tags,
Errors or Omissions
4.1 There
are no tags, errors or omissions in this tender.
5.0 Tender Evaluation
5.1 In accordance with the conditions of tendering, tenders were
evaluated in line with the Lowest Price Conforming Method in accordance with
the Hastings District Council Procurement Manual.
5.2 The tenderer passed all non-price attributes. The Tender Evaluation
is attached.
5.3 Scores for the non-price attributes were determined on the basis of
information provided in the tender and the information gathered from referees
nominated by the tenderers.
5.4 The evaluation was carried out by Des Parkinson (Certified Evaluator
- Stantec), Steve Ward (Stantec), and Derek Bensemann (Stantec).
5.5 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
5.6 Russell Roads Ltd have undertaken several projects of a similar
nature to the tendered works, including Maraekakaho Road and Windsor Area Wide
Pavement Treatment Programme and The Village Exchange Project. They have
extensive experience in Water and Roading activities and are prequalified to
carry out this work.
5.7 The results of the tender evaluation as shown that the tender
submitted by Russell Roads Ltd are the only tender. This tender price is the
lowest priced tender and is 1% above the pre-tender contract estimate.
5.8 Reference checks on Russell Roads Ltd indicate that they are an
experienced, highly skilled and well-resourced contractor able to meet the
challenges of this project.
6.0 Value Engineering and
Negotiations
6.1 Council’s tender documents provide for the opportunity to
enter into discussion with the highest scoring tenderer or tenderer submitting the
lowest price to explore possible value engineering opportunities, which could
benefit the Council.
6.2 In this instance, the following issues have been explored and
discussed in detail with Russell Roads Ltd:
6.3 An additional item for service investigations (item 110) was issued
as a notice to tenderers (NTT-01). Russell Roads Ltd did not allow for this
item in their tender submission but confirmed that the work will be undertaken
as part of the tendered sum.
6.4 The rate for item 401.1 Supply and lay 150mm diameter Polyvinyl chloride (PVCU)
sewer main has been reduced from $971.75/m to $885/m. This reduction has
removed $4,597.75 from the tender price.
6.5 All sewer works are to become provisional items to provide Council
with the flexibility to negotiate further savings as there is the opportunity
to amend the scope of work.
6.6 Maraekakaho Road and Karamu Road sites are removed from the
tender. The value of the works tendered by Russell Roads Ltd for the
Maraekakaho Rd site was $22,475.98 and for the Karamu Road site was $8,634.02.
6.7 With the removal of the Maraekakaho Road and Karamu Road sites, the
price is reduced to $748,145.50, and with the reduction in price for the sewer
the revised tender price is $743,547.75.
7.0 Budget
7.1 The works identified in this contract are to be funded from
Council’s budget allocations for roading, wastewater and water.
7.2 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.
7.3 The funds Officers assigned for this Project for the Nelson
St/Eastbourne St site is shown below:
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Budget
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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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Roading
Minor Safety
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$663,103.90
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$129,074.00
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$792,177.90
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$795,000.00
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$2,822.10
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Roading
Minor Improvements – Street lighting
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$21,815.20
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$21,815.20
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$22,000.00
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$184.80
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Wastewater
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$74,043.85
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$7,886.00
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$81,929.85
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$82,000.00
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$70.15
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Water
Supply
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$6,400.00
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$6,400.00
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$7,000.00
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$600.00
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Total
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$743,547.75
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$0.00
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$158,775.20
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$902,322.95
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$906,000.00
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$3,677.05
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Table 2 – summary of budget streams
Note: Other Costs include: Fees, Auxiliary Works, and
Site Investigation Works etc.
7.4 Council supplied materials for this project are valued at $0 (excl.
GST).
7.5 NOTE: that 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 $75,000.00.
8.0 Risk mangement
8.1 The project team have highlighted that there is a risk that adverse
weather conditions could potentially affect the construction of the roundabout.
8.2 The Request for Tender included a risk register which identified the
key health and safety risks for the tenderers to consider when preparing their
tender submission.
8.3 The Contractor will be required to provide a Site Specific Health
and Safety Plan upon contract award which addresses all aspects of health and
safety related to the contract works.
8.4 The Contractor will need to prepare and submit a temporary traffic
management plan (TTMP) that will be reviewed and if found acceptable will be
approved by Council. The TTMP will consider vehicle as well as pedestrian
access, including access to private properties during construction. The
Contractor will then be required to comply with the requirements of the
approved TTMP.
9.0 communication
9.1 Local businesses have been consulted and informed through every
stage of this project.
9.2 This project will require a road closure which has already been
discussed with affected parties.
9.3 There has been overwhelming support for the project with 96% in
favor through the council through the councils ‘My Voice My
Choice’.
9.4 A letter drop is planned once the contract has been signed for
inform all business and stakeholders in the area that work will commence on the
7th May.
9.5 Council and the Contractor will work closely with local business to
make sure they are not adversely affected during construction.
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0.0 RECOMMENDATION
A) That
the report of the Acting Traffic Engineer titled “CON2018011
Urban Minor Safety Programme 2017/18 ” dated 19/04/2018 be received.
B) That
the tender from Russell Roads Ltd for Contract No. 2018011 – Urban
Minor Safety Programme 2017/18 be accepted.
C) That the Maraekakaho Road and Karamu Road sites, with a combined
value of $31,110.00 (excl. GST), be removed from the scope of works of
Contract CON2018011 – Urban Minor Safety Programme 2017-18.
D) That delegated
authority be given to the Wastewater Asset Manager to further negotiate the
scope and price of the sewer works.
E) That
Contract CON2018011 – Urban Minor Safety Programme 2017-18, as amended
by the removal of the Maraekakaho Rd and Karamu Rd sites and the negotiated rate
for item 401.1 Supply and lay 150mm diameter Polyvinyl chloride (PVCU) sewer
main, be awarded to Russell Roads Limited at the negotiated price of
$743,547.75 (excl. GST) including a contingency sum of $75,000.
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Attachments:
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1
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CON2018011 Urban Minor Safety Programme 2017/18
tender evaluation russell roads Ltd
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PRJ18-10-0063
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Hastings District
Council