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 or for which funds are allocated to the Council
by the Provincial Growth Fund (and related parties).
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 $10,000,000
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, 13 December 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.
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 General Counsel or the Democratic Support Manager (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 15 November 2018.
(Previously circulated)
4. CON2018101
Maraekakaho Road Stormwater Upgrade Extension 5
5. Additional
Business Items
6. Extraordinary
Business Items
7. Recommendation
to Exclude the Public from Item 8 11
8. CON2018050 CCTV
and Trenchless Repair
REPORT TO: Tenders
Subcommittee
MEETING DATE: Thursday 13
December 2018
FROM: Project Manager
Ansonica
Botha
SUBJECT: CON2018101
Maraekakaho Road Stormwater Upgrade Extension
1.0 Summary
1.1 The purpose of this report is to seek approval from the Tenders
Subcommittee to award CON2018101 – Maraekakaho Road Stormwater Upgrade
Extension.
1.2 Tenders were invited under the Lowest Price Conforming tender method.
Three tenders were received.
1.3 The contract is expected to run for 10 weeks.
1.4 This report concludes by recommending that:
1.4.1 The tender from Fulton Hogan
Limited for CON2018101 - Maraekakaho Road Stormwater Upgrade Extension in the
sum of $484,888.19 plus $72,733.13 GST, totaling $557,620.69 be approved.
2.0 Background and Scope of Work
2.1 Flooding occurs on Maraekakaho Road during storm events on a regular
basis. Recent investigations, including hydraulic modelling, has identified that
the existing stormwater drainage network along Maraekakaho Road does not meet
the Council’s stormwater Level of Service (LOS) requirement for pipe
capacity of a 5-year recurrence interval (ARI) rain event.
2.2 Network upgrades have been identified to achieve the required level
of service that includes 380m of 300/375 mm diameter main connecting into an
existing stormwater main in Kaiapo Road.
2.3 The contract period is 10 weeks, from 21 January 2019 to 1 April 2019.
The objective is to reduce flooding issues and improve the level of service for
stormwater conveyance/management, while minimising disruption during
construction.
2.4 Maraekakaho Road is a busy urban road that will require careful
traffic management. Existing underground services will need to be located and
protected as part of the works.
3.0 Tenders Received
3.1 This type of work has been categorised as Class 1, Complex A
Stormwater works as specified in Council’s Pre-Qualification Manual.
Tenders were sent to the appropriate pre-qualified contractors via GETS. Three
tenders were received by the closing date of Wednesday 28th November
2018. These are 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 Limited
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$484,888.19
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No
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2. Drainways
Contractors Limited
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$517,716.97
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No
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3. Higgins
Contractors Limited
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$582,600.71
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No
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Table
1 - Summary of Tender Prices
4.0 Tender submission
4.1 Two of the tenders included errors in the Schedule of Prices, with
quantities not in accordance with Notice to Tenderers numbers 2 and 3. Also one
of the tenders had a small arithmetic error in the Schedule of Prices. None of
these errors had a material impact on the tender evaluation.
5.0 Health & saftey and risk
Management
5.1 The Request for Tender included a risk register which identified the
key health and safety risks for the tenderers to consider when preparing their
tender submission.
5.2 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.
5.3 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.
5.4 Additional Contract risks were identified in the Request for Tender
and adequately addressed as part of the Tenderer’s proposed methodology
including managing risks around working in close proximity to underground services,
potential excavation collapse and management of rain
events during the works.
5.5 A communication plan is being developed but Council is not expecting
significant effects on traffic as generally two lanes of traffic will still be
available.
6.0 Tender Evaluation
6.1 In accordance with the conditions of tendering, tenders were
evaluated in line with the lowest price conforming method. These procedures
require that the lowest price tender is assessed for conformance to tender
requirements. Other tenders are not assessed unless the lowest price is
non-conforming.
6.2 The tender requirements to be met included a conforming statement of
attributes, detailing the proposed methodology for construction of the works.
The results of the tender evaluation were that the tender submitted by Fulton
Hogan Ltd was conforming and is therefore the lowest price conforming tender.
6.3 The Tender Evaluation is attached as Attachment 1.
6.4 The tender submitted by Fulton Hogan Limited is 6.5% below the
pre-tender contract estimate of $518,894.00. A review of the schedule of
prices did not identify any significant low rates or price amounts and the
overall tender price received is assessed as reasonable.
6.5 The Project Manager confirms that the evaluation team have no personal
relationships with any owners, directors or employees of the companies listed
below, or any financial or commercial interest in any of the companies listed
below, that would create a conflict of interest with respect to this tender
evaluation process.
7.0 Budget
7.1 Council’s Budget Allocation for this Project is as follows:
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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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720.6651.202996.00
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$484,888.19
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$-
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$175,000
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$659,888.19
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$693,000
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$33,111.81
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Total
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$484,888.19
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$-
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$175,000
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$659,888.19
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$693,000
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$33,111.81
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Table 3
Note: Other Costs include: Fees, Auxiliary Works, and
Site Investigation Works, Contingency Amount.
7.2 NOTE: that NZS 3910:2013 provides for certain events and
circumstances to be treated as variations, resulting in additional costs and
time extensions. The total project cost includes a Contingency Allowance
of $50,000, additional to the Tender cost.
8.0 Implementation Issues
8.1 There are no expected implementation issues with this contract.
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9.0 RECOMMENDATION
A) That the report of the Project Manager titled “CON2018101
Maraekakaho Road Stormwater Upgrade Extension” dated 13/12/2018 be
received.
B) That the tender from Fulton Hogan Limited for CON2018101 -
Maraekakaho Road Stormwater Upgrade Extension in the sum of $484,888.19 plus
$72,733.13 GST, totaling $557,620.69 be approved.
C) That authority to enter into CON2018101 - Maraekakaho Road
Stormwater Upgrade Extension on behalf of Council be delegated to the Group
Manager: Asset Management.
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 CON2018101 - Maraekakaho
Road Stormwater Upgrade Extension up to the value of the contingency budget
allowance of $50,000 plus GST.
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Attachments:
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1
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CON2018101 Maraekakaho Road Stormwater Upgrade
Extension - Tender Evaluation Form
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PRJ18-93-0023
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TRIM File No. CG-14-17-00237
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HASTINGS DISTRICT COUNCIL
Tenders Subcommittee MEETING
Thursday, 13 December 2018
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 CON2018050
CCTV and Trenchless Repair
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 CON2018050
CCTV and Trenchless Repair
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Section 7 (2)
(b) (ii)
The withholding
of the information is necessary to protect information where the making
available of the information would be likely to unreasonably prejudice the
commercial position of the person who supplied or who is the subject of the
information.
The reports
contains sensitive information.
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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
