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Coal Mining Project Assignment Implicating The Reflection Of As 4120-1994 Guidelines

Question

Task: You should use AS 4120-1994 as the basis of developing a tender request as the principal for a project in the mining, plant and/or large asset industry. The project may be one of your choosing based on your current work practice or may be one selected from a set of possible projects on the Moodle web site. You must ensure that your tender document is consistent with all of the Australian standards referred to in this course.

Should you wish to use a tender template from the organisation you work for then you may do so. However, you must ensure that all of the ten items in the task definition below are included in your tender.

You must obtain the agreement from your lecturer and course coordinator that the subject project scope of your tender is suitable for this course.

Your task is to consider the contents of the course and apply it to a tender request. Your tender must do the following:

1. Define the project in the context of mining, plant, or a large asset;
2. Explain the project justification and contract process;
3. Explain the financing of the project;
4. Identify the project conditions, project team and project processes required;
5. Provide your expected estimates to the tenderer for the project labour, plant, materials, and sub-contractors;
6. Provide your requirements for project changes;
7. Provide your requirements for quality assurance and quality control;
8. Provide your requirements for document management, reporting and governance;
9. Provide your requirements for disputes, arbitration and mediation;
10. Provide your requirements for safety.

The primary purpose of this assessment item is to help you to develop skills for expressing the manner in which a principal normally engages with contractors through a tendering process.

The secondary purpose of this assignment is to give you the opportunity to enhance your analysis, critical thinking and written communication skills; particularly in the areas of argument development and tender writing

Your tender should be as much as practically possible a properly constructed tender However, you must also apply the rigours of an academic essay. Therefore, you must include references within your tender and a reference list formatted in the prescribed Harvard style is compulsory at the end of your tender. Do not include a bibliography.

Answer

Introduction
Mining project illustrated in this mining project assignment is an inevitable property of modernize commercial ventures and outsourcing functionalities as it allows to incorporate efficient flow of goods and underground materials to its fullest functional areas. Mining project is a complex process which consists of various distinct steps while including several demographic characteristics. Tender of mining project helps to outsource various ongoing processes and opportunities for various organizations to incorporate business functionalities. This study deals with coal mining project, initiated by Rio Tinto, a well recognized Australian brand. This study discusses various significant properties of mining tendering while implicating the reflection of AS 4120-1994 guidelines.

1. Reflection of AS 4120-1994
1.1 Definitions made: Mining project tendering is an effective and innovative approach to enhance procurement of underground geographical materials while engaging effective guidelines of tendering process. As 4120-1994 is an integral and efficient guidance provided by the Australian mining organizations, it deals with various distinct steps and possibilities of financial implementation. Reflection of AS 4120-1994 provides a systematic empirical framework for the effective, consistent and innovative management of tendering processes within mining industrial context. Essential components of AS 4120 create various principles that are necessary to practice under tendering processes while considering ethical statements. Successful tendering process confines various effective practices by both parties while understanding the rights and obligations and increasing the likelihood of procurement criteria such as scope, time, quality and cost parameters.

1.2 Statements of Ethics: Tendering processes confines certain sets of ethical statements that each tenderer required to ensure while submitting the application under the guidance of Australian standard code of tendering (As 4120- 1994) and Queensland Government State of Purchasing Policy. Meanwhile, considering Australian standard code of tendering and Trade Act, various ethical principles are needed to focus on, such as,

  • Each step of tendering process must be conducted with honesty and fairness within industrial regulations.
  • Tendering criteria are equal for every tenderers.
  • Tenderers are required to follow legal obligations.
  • Both parties are required to identify ownership of the intellectual property used and appreciate rights.
  • Tenderers must require submitting tender documents with clean prosperity.
  • Tenderers must require to eliminate collusive practice and to engage with constructive approaches.

1.3 Tendering procedures covered, including:-
1.3.1 Obligations of the Principal: Mining tendering procedures consist of various distinct obligations that are necessary for conducting fair tendering process. This legal obligations guided by the Australian standard code of tendering are designed to incorporate transparency and fairness within mining project tender conducted by Rio Tinto.

1.3.1.1 Project definition: A coal mining project discussed in mining project assignment has been initiated by an Australian company, Rio Tinto to provide coal for the thermal power generation station which is situated in Queensland State (Love et al. 2017). The prime duty of the project is to supply efficient and hazard free procurement process of coal. The project also demands effective and efficient excavation and damping services within coal mine.

1.3.1.2 Tender documents: The organization must required to provide various key documents to initiate such tendering process which includes notice to tenderers, conditions of the tendering, tender schedule, contract conditions, specifications, drawing and additional information regarding coal mine project of Rio Tinto. The necessary documents illustrated in mining project assignment need to highlight important dates, capacity, contractor details and financial values.

1.3.1.3 Selecting tenders: Selection of tenders confine 5 necessary part of tendering areas that allows to select potential and authoritative tenderer which includes public tenders, selected tenders, pre qualified, invited and direct negotiations. Rio Tinto needs to engage with selected tender or pre qualified approaches as the project upholds complex functional movements with high risk and cost.

1.3.1.4 Call for tenders: Calling various potential tenderers through the reflection of AS 4120- 1994 guidelines allows establishing a competitive tender field that helps the organization to choose the most efficient tenderers. As mentioned by Peng et al. (2016), the organization needs to invite selected or pre-qualified tenderers who have essential capability and efficiency to undertake the said mining project.

1.3.1.5 Tendering methods: Tendering methods is essential as it influences the organization to choose potential clients and tenderers. Various effective tendering methods such as open tendering, selective tendering and direct tendering methods help the organization to evaluate possibilities and availability of potential tenderers and their capacity and scope of work.

1.3.1.6 Tendering inquiries: Tendering inquiries is an inevitable task for Rio Tinto regarding coal mine project discussed in mining project assignment as it includes various invitation criteria that influences supplies to bid for the opportunity. Inviting potential bidders can be an effective alternative to incorporate productivity and profitability within the organizational context of Rio Tinto.

1.3.1.7 Amendments to tender documents: Various necessary amendments have been provided by the Australian standard code for tendering (As 4120-1994) to complete detailed procurement policies and legal obligations. Various customized provisions and rules are required to consider during the submission of tender documents while ensuring sustainable development.

1.3.1.8 Receipt of tenders: Rio Tinto must require considering effective management process such as PCS tender, internal governance process for the receipt of tenders. As per the view of Zhang et al. (2016), the organization must require to provide effective and appreciate data to the bidders to enhance the process.

1.3.1.9 Closing of tenders: Closing of tendering process is the ultimate step of open tendering as this step helps to confine handful of potential bidders and associated details to initiate further evaluation. This step allows the organization to incorporate quality bidders from applied tendering methods.

1.3.1.10 Evaluation of tenders: Evaluation of the coal mine project tender mentioned in this mining project assignment explains a set of tendering evaluations that allows the organization to evaluate the provided information by various distinct bidders. As suggested by Roeder, (2016), tender evaluation step can be an asset for Rio Tinto to measure capability, potentiality or the availability of effective alternative to undertake major duties.

1.3.1.11 Negotiation and selection: As the final step of the tendering process, negotiation and selection step provides ultimate opportunity and necessary information that can influence Rio Tinto's decision making process. Two or three potential bidders are required to intake as it will help the organization to choose the most efficient tenderer to undertake coal mine project.

1.3.2 Obligations of the Tenderers: The prime perspective of the tender is to create a positive environment for both parties to agree within certain terms and conditions. However, during the submission process of tender, the tenderers are required to follow legal obligations to demonstrate such complex procedures of tendering.

1.3.2.1 Genuine belief: Tendering process confines significant amount of economic and reputational values that are responsible to change various core values of any significant organization. The bidders must require developing certain beliefs and trusting issues on the offerings provided by the clients to commit in the bedding processes. The organization also needs to set transparency and fairness within its services.

1.3.2.2 Return of documents: Returning tender documents sets various empirical frameworks as it allows the organization to conduct the tender process effectively and efficiently. The return documentation process in response to the offerings of the Rio Tinto required enlisting various important numerical figures. The tenderers must need to follow the guidelines of AS 4120-1994 code for tender in order to compete against other stakeholders.

1.3.2.3 Evaluation of tender documents: In order to evaluate tender documents effectively, the tenderers must required to implicate innovative approaches while enlisting necessary criteria such as cost vs price, quality requirements and service details. The tender document evaluation process mentioned in mining project assignment is defined prior to the sending of the bidding or in response to the Request for Proposal.

1.3.2.4 Formulation of tender and estimates with respect to: Tender formulation and cost estimation are designed to provide the utmost quality information and guidance to evaluate certain cost structure and have an enormous impact on the tendering process while approving the mining project. General cost estimation allows the organization to measure work criteria and in the preparation of work planning and strategy making.

1.3.2.4.1 Project labour: Coal mine generally consist of various groups of labor to yield sufficient coal to supply efficient amount of coal to the power generation. Various labor charges, employee salaries are necessary to evaluate to ensure higher profit gain during services.

1.3.2.4.2 Project plant: Coal mine basically confines various sets of employees and equipment which required major portions of budget implication. The organization needs to develop effective and potential project plant to demonstrate business functionalities and operational movements to provide sufficient coal to the thermal plant which demands a major amount of allocated money.

1.3.2.4.3 Project materials: The organization must need to incorporate various modernize equipment such as excavator, hydraulic pump, trucks, dumping tools which costs a significant amount of allocated budget as discussed in this mining project assignment. Implementation of effective and innovative tools can be a driving for to ensure productivity and profitability within organizational context while enhancing sustainable development.

Effective evaluation of cost increases the benefits of competitiveness for the bidders to submit tender documents.

1.4 Confidentiality
According to the Australian standard code of tender, transparent tendering process is the prime requirement of tendering process. Rio Tinto must require implicating necessary strategies to conduct efficient and fair tendering processes. The organization needs to ensure that any bidders are not involved in any deceptive practices or illegal pathway to undertake the mining project (Mills, 2018). The organization also needs to provide equal facilities for each bidder while justifying their capacity and efficiency. In addition, Rio Tinto must needs to mention specific requirements and services in tender documents while ensuring fair judgment and equality.

2. Financing justification and financial arrangements of the project by the Principal, including:- The importance of project finance is prominent as it provides ultimate feasible opportunity to incorporate effective and innovative approaches to conduct cost effectively.

2.1 Source of funds: In business perspectives, source of financial fluidity is inevitable that is necessary to develop business standpoint. Sources of funds can be arranged from the existing resources of the organization while analyzing the in house capital alongwith various money lending process from various financial institutions (Avery and Boyd, 2017). However, during tender submission, the bidder must require to mention the dependable resources of capital flow and adequate amount of allocated budget to conduct the mining project.

2.2 Project selection criteria: Selection of project mainly depends on the organization infrastructure and financial conditions of any organization. In the given scenario of mining project assignment, the tenderer must required to analyze the criteria of the said project while considering economic strengths and efficiency to undertake specific task of providing utmost services. As power generation required an adequate amount coal daily basis, the organization needs to ensure productive performance to meet specific requirements. The organization also needs to develop sufficient procurement process to enhance performative activities.

3. Contractual terms, including:-

3.1 Nature of Contract: Rio Tinto is willing to develop business contract as per fixed price contracts with the undertaken organization in mining project based on the efficiency and performance history of the organization.

3.2 Service of Notices: Rio Tinto is determined to set various provisions and mutual obligations to conduct the services. The notice incorporates various distinct clauses, termination details and communication procedures for both parties (Hay et al. 2017).

3.3 Assignment and Subcontracting: Rio Tinto explored in mining project assignment is willing to provide the authorization to the selected tenderer to establish any subcontractors to enhance outsourcing functionalities. The agreement with third party does not require any additional questionnaires.

3.4 Statutory Requirements: Rio Tinto intends to provide various official approvals in form of working license or permit to conduct coal mine services under the legal obligations of AS 4120-1994, code of tendering processes along with Trade Act of Australia.

3.5 Examination and Testing: The undertaking authority must require considering various performative test and examination to conduct said project. Innovative training and facilities can be provided by Rio Tinto to upgrade service quality.

3.6 Progress and Programming of the Works: Under the contractual agreement, both parties are responsible to monitor the working progress and fulfillment of certain requirements. Implementation of effective management can be an influential aspect to amplify performance ratio.

3.7 Suspension of the Works: The contract must needs to include effective suspension terminologies and obligations to stop a portion of work or whole. Introduction of suspension must require mentioning in contract agreement.

3.8 Delay or Disruption Costs: Significant delay in payment structure may affect the agreement adequately as it has a direct impact on revenue gain access. Disruption cost can be justified by legal terms and mutual obligations.

3.9 Defects Liability: The tenderer must require submitting effective liability insurance to cover various defects during ongoing project. If a defect occurs during the defects liability project, the contractor is notified and provided an opportunity to repair the defects.

3.10 Variations: Variation in contract agreement can be occurred during the project period. The mutual obligations mentioned in mining project assignment can play a fundamental role to incorporate such changes and provides necessary solutions to prevent various issues.

3.11 Certificates and Payments: The undertaking authority must require submitting appropriate documents and certificates to ensure transparency and fairness within services accommodations (Katona et Al. 2019).  The payment structure must required follow as per the mentioned methods in agreement.

3.12 Default or Insolvency: Rio Tinto must require implementing effective payment procedures to ensure quality relationship between both parties. In addition, default in payment Insolvency may affect the contract agreements.

3.13 Termination and Claims: Termination of agreed contract can be applied if any party breaches the contract agreement. In addition, termination can be occurred by the void of duty and inseparable mistakes. Both parties can claim financial values if any components of the said agreement got neglected during service period.

3.14 Dispute Resolution and Arbitration: Rio Tinto and the undertaking organization need to resolve various occurring issues as per the methods and timetable mentioned in the contract agreement. In addition, the introduction of Arbitration agreement is required to consider within contract agreement while keeping litigation costs confidential.

4. Quality Assurance and Control requirements, including:-
4.1 Customer quality focus: Customer satisfaction mentioned in mining project assignment is an asset for business development as it allows incorporating productive involvement within services. Communication between both parties plays an integral part in customer satisfaction as it demonstrates both parties to provide utmost quality services as per the mutual obligations (Zainelabden et al 2016). Rio Tinto must needs to clarify specific demands and services prosperity to cope with uncertain and deceptive involvements in service quality.

4.2 Quality leadership: Legal obligations and contract agreement upholds various potential benefits of quality leadership in mining projects. Quality leadership is an inseparable part of business development as it influences several demographic characteristics such as decision making process, financial statements, budget allocations and creation of legal obligations. Quality leadership also helps to communicate effectively with clients as it incorporates potential attributes to work align with vendors.

4.3 Involvement of people: Coal mining project confines various sectoral departments that deals with ongoing operations and allows monitoring various distinct steps of tendering processes and functional progress (Kumar and Jha, 2017). Both parties are required to implement effective and expertise employees to amplify service quality and cost effective alternatives.

4.4 Process approach and Systems approach: Implementation of effective and innovative contract approaches can be an influential aspect for both parties to measure various business associated programs and features such as negotiation, performance, execution, modification and termination of the contract. System approach helps the organizations to incorporate effective management and procurement process.

4.5 Continuous improvement and Mutual benefit discussed in mining project assignment: Both parties must require sharing collective and collaborative effort and objectives of development to increase sectoral strengths and efficiency. The organizations need to ensure mutual benefits while developing effective communication and strategies.

5. Safety requirements, including:
5.1 Safety management review: Safety management system (SMS) is included with to review system’s performance and improvements that is based on management committee of health and safety regards in the country (Dmp.wa.gov.au, 2019). Safety management regarding the mining project by Rio Tinto has been conducted to identify the basics of several management and processes by measuring the criteria. The system should prioritise risks assessments plan regarding the mining project after the heavy rainfall there. Risks related to the project mentioned in mining project assignment can be reviewed as:

  • Risk controlling and measuring
  • Changing in significant force in the mine
  • Audit performance standards indicating the risk control measure
  • Risk control measure should be evidenced while controlling the risks
  • Health and safety responsiveness in the review
  • Notified incidents such rainfall, dampening in coal contents should be enlisted (Dmp.wa.gov.au, 2019)
  • Worker’s tasks regarding the situation should be measured. 

In Rio Tinto, the safety management is reviewed regarding measuring content of coal and safety concerns of employees and staff in the mine.

5.2 Safety measurement and evaluation
Measuring health and safety in workplaces like mine should have some extra indications to hide and evaluate the potential risks. While introducing the project and initiated in Australia, the major delays have occurred and the problems are found regarding excavation and dampening of the coal content (Xu, 2017). Safety measurement and evaluation should be taken with low incidence of injury and adequate safety a system, which is placed there. In this time, limits of low time injury and frequency of safe for work in Australia is authorised to clean and process the real changes in safety performance. It should be evaluated on overcoming the negative consequences in the free of injury and disappointment of lost time, which has been found as concerns to the health, and safety of workers. In the mining project explore within the study of mining project assignment, the rate of risk and health concerns is high always. In spite of reviewing the health concerns, the cost of severe and manipulation review regarding a particular event can be correlated with both financial and human consequences of work related illness and injury (Chen, Xu & Fan, 2015). It was advocated with positive performance indicators to improve the performance and safety audits, which is conducted adequately with OHS training for the mining project in Rio Tinto.

5.3 Safety implementation: Safety implementation indicates development and performance delivery in the work scenario. As per the case study, measuring health and safety performance for Australia with some amendments and evaluation should be implemented. It is focused on performance and guidelines of OHS as per the workplace risk assessment plans. Guidance on the use of Positive Performance Indicators (2005), Measuring Health and Safety Performance on OHS can be implemented here to measure the risks intensity and concern of mining project plans. After safety reviews and measurements, the Rio Tinto mining project is being considered to take place by reducing damage level of staff as well as materials for the projects. 

5.4 Safety planning: The Work Health Safety Policy mentioned in this mining project assignment is included to measure the safety planning, which can be recorded on identifying responsibility and period for completing and confirming the effectiveness of the control in mines (Mills, 2016). Drug and alcohol management, fatigue management, personal hygiene and protective equipment, extreme heat are measured while the field operation would take place. It is required to comply with WHS legislation for safety measurement. Field operations for mine record book, electrical safety road vehicles equipment, training and competency and site safety rules are implemented and plant while consultation and communications have reported to allow the safety management in the mine. Corrective actions and disciplinary actions are planned due to implementing the policy and work health policies across the mining sector (Xu, 2017). 

5.5 OHS policy: Safe Work Australia leads to develop a national policy for improving the work health and safety with arrangements of regular enforcement of WHS or OHS legislations for the employees (Business.gov.au, 2019). Acts, regulations, regulating agencies and policies are administered with health and safety laws, which inspect workplaces and handle with notices and penalties when necessary. OHS policies discussed in mining project assignment include several benefits and rights of both employers and staff in mining project to make the project safety and less chance of risk. Work Health and Safety Act 2011 (ACT), NT Codes of Practice, Occupational Safety and Health Act 1984 (WA), Work Health and Safety Regulation 2012 and other acts, policies and regulations are implemented to measure and evaluate the safety concerns and assessments in the context of mining projects (Business.gov.au, 2019).

Reference List
Avery, E. and Boyd, C., (2017). Cartel risks in responding to tenders. Australian Resources and Energy Law Journal, 36(1), p.63.

Hay, A., Zuo, J., Han, S. and Zillante, G., (2017). Lessons Learned from Managing a Remote Construction Project in Australia. In Proceedings of the 20th International Symposium on Advancement of Construction Management and Real Estate (pp. 939-948). Springer, Singapore.

Katona, L., Heath, P., Robertson, K. and Thiel, S., (2019). Geological Survey of South Australia: An update. Preview, 2019(201), pp.25-27.

Kumar, N. and Jha, A., (2017). Temperature excursion management: a novel approach of quality system in pharmaceutical industry. Saudi Pharmaceutical Journal, 25(2), pp.176-183.

Love, P.E.D., Zhou, J., Matthews, J., Sing, M.C.P. and Edwards, D.J., (2017). System information modelling in practice: Analysis of tender documentation quality in a mining mega-project. Automation in Construction, 84, pp.176-183.

Mills, P.D., (2018). ASystematic REVIEW OF THE INDIAN MINING REGULATIONS IN COMPARISON TO SASKATCHEWAN MINING LAW WHERE THE FIRST NATIONS HOLDS MINERAL TITLE. mining project assignment Alberta Law Review, 56(1), pp.231-262.

Peng, Y., Ding, Y. and Yu, Y., (2016), April. Grid Project Cost Control Research Based on Data Mining. In 2016 International Conference on Advanced Materials Science and Environmental Engineering. Atlantis Press.

Roeder, R.W., (2016). May I Mine? The Question of Mining Licenses. In Foreign Mining Investment Law (pp. 57-73). Springer, Cham.

Zainelabden, A.A., Ibrahim, A., Kliazovich, D. and Bouvry, P., (2016), June. On service level agreement assurance in cloud computing data centers. In 2016 IEEE 9th International Conference on Cloud Computing (CLOUD) (pp. 921-926). IEEE.

Zhang, Y., Luo, H. and He, Y., (2015). A system for tender price evaluation of construction project based on big data. Procedia Engineering, 123, pp.606-614.


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