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Project Tendering Assignment On Designing An Office Space

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. You are strongly encouraged to discuss your ideas with your business and student colleagues on the course discussion forum, before drawing your conclusions and submitting your assignment.

Answer

1. Reflection of AS 4120-1994
1.1 Definitions made: As per the context of AS 4120-1994, it is mentioned in this project tendering assignment that it is necessary to take decisions while preparing the tender. There are some major aspects included having definitions in terms of the contract. Additionally, these typical terms are also having a great role in taking the decision point the typical terms that are included while defining the reflection of AS 4120-1994 are:

  • Tender: The contract that is designed by the tenderer for the client or the party going to hire the organization for completing the project is Tender(Axelsson et al. 2018).
  • Client: The party who is going to accept the contract and terms given by the tenderer
  • Contract: The documents include all the terms and conditions regarding the project to be completed by the hired organization.

1.2 Statements of Ethics
Along with all the financial aspects, there are several ethical consideration required to be determined by the organizations while completing the tender and the project as well. The ethical statements included are:

  • The organization must follow every legal aspect
  • All the financial transactions will be recorded formally
  • Every activity will be measured with legacy
  • The distribution of profits and other financial transactions will be done according to the terms and conditions recorded in the statements.
  • They will be transparency in the project

1.3 Tendering procedures covered in project tendering assignment, including:-
1.3.1 Obligations of the Principal:-

  • The obligations of the principal include all the duties and responsibilities that are required to be followed by both parties (Novak et al. 2015).
  • The obligations include an act from the agent with the motive to control the factors
  • The agent discharge their duties with appropriate care
  • No personal interest will be determined while completing the project

1.3.1.1 Project definition: The project illustrated in this project tendering assignment is for designing an office space for or an infrastructure company. It will be a five storey building having around 25 separate and appropriate office space. The project manager will be having the responsibility of handling every detail of the project along with focusing on the contract details, financial details, and other requirements for completing. The company that is going to field in the tender is HANS Construction Company and company for which the tender is going to be filled is ABC solutions. The project manager will be having the responsibility of analyzing every detail and submit it to the management and the management will finally submit the tender to the board of directors in the meeting that will be held for the appropriate project. All the details regarding the stakeholders and the budget and other factors will be included in the tender. According to the contextual tender designed, the project will be completed by 2024 at the total cost estimate is around 4 billion dollars.

1.3.1.2 Tender documents: Documents will include all the papers having details regarding the project along with the stakeholders and the people or the staff that is going to be worked on the project. The tender documents will include details regarding the financial transactions that how much money is required for each activity to be completed(Lewis, 2016). Additionally, all the details regarding the staff members required, including the project manager, construction manager, IT manager, finance manager, and others will be included in the tender documents. Apart from this, the period required to complete the project will also be recorded.

1.3.1.3 Selecting tenders: Company HANS solutions bill collector tenders based on the details mentioned in it. While selecting the tinder, several factors will be taken into consideration like the period the organization is going to take for completing the project, that it has set up for completing the project, and other important details regarding the quality assurance (Karlsson and Kindbom 2018).

1.3.1.4 Call for tenders: There will be several activities and tasks included to complete the project. Additionally, several other details will be recorded like the starting of the tender, closing of the tender, details regarding the hiring company and the hired organization along with the team members and the staff going to be a part of the project and also the financial aspects. After analyzing every factor, the client will call for the tender and finalize it.

1.3.1.5 Tendering methods: There are three types of tendering methods in the infrastructure and construction industry. The three methods are open tendering, selective tendering, and negotiated to tender. In the open tendering discussed in this project tendering assignment, the hiring company advertising regarding the proposed project. It allows the contractors to bid regarding the project. In the selective tendering, the hiring organization calls the contractors for the project and then selects based on their Bids. Finally in the negotiated tendering is done when the tenderer accepts to complete the project according to the wish of the Client's company (according to the financial conditions designed by the client)

1.3.1.6 Tendering inquiries: Tendering Enquiries will comprise of several questions that will be asked by the client to the company filing the tender. The inquiries will comprise of the following:

  • The financial recordings
  • If the company filing the tender genuine or not
  • All the legal formalities of the tender filing company are completed or not
  • Is there any error or omission in the tender documents
  • All the details regarding the financial transactions along with the deadlines are recorded or not
  • is the company is having appropriate resources that the project can easily be completed with quality
  • The record of statistics of the company filing the tender

1.3.1.7 Amendments to tender documents: Majorly, the amendments in the tender get done regarding the creating, designing, developing, commissioning, and maintenance (Brown and Loosemore 2015).

1.3.1.8 Receipt of tenders :The Receipts of the tenders discussed in this project tendering assignment includes all the documents regarding the financial aspects recorded in the tender.

1.3.1.9 Closing of tenders: In closing tender, the project gets final, and the work on the appropriate project gets started. In this, the tenderer gets the project and then starts working on the same according to the terms and conditions settled down.

1.3.1.10 Evaluation of tenders: In this stage, all aspects and factors recorded in the bidding contract get recorded.  Both the parties evaluate every factor and aspect regarding the transactions, terms, conditions, rules, and other requirements.

1.3.1.11 Negotiation and selection: After the evaluation of the project, the tendering company selects the tenderer and then tries to negotiate regarding the financial transactions recorded.  In the construction industry, Negotiating tendering plays an important role. After negotiating, the company decides about hiring the tendered for starting up the project decided (Urquhart et al. 2017).

1.3.2 Obligations of the Tenderers:-
1.3.2.1 Genuine belief: It is the genuine belief of both the parties that every term and condition mention in the tender or contract must be followed. Additionally, in case any term or condition missed, then the other party has the rights to sue the guilty party, either the client or the tenderer.

1.3.2.2 Return of documents: After finalization of the tender, the two copies of the documents get prepared. The tendering company handles one copy, and another copy of the Tender gets sent to the Tendered. The final copy includes all the details that are recorded by both the parties, including the tenderer and the tendering company.  Additionally, each party ensures that they have duly understood and signed the tender documents (Grzybowska and Kovács 2017).

1.3.2.3 Evaluation of tender documents: After getting the Tender documents, both the parties and their legal authorities make every point and term clear so that no ambiguous situation may occur in the future. Additionally, after evaluating if any issue occurred, then a proper notice gets transmitted to the second party.

1.3.2.4 Formulation of tender and estimates with respect to:-
1.3.2.4.1 Project labor: The Project Labour details include information regarding human resources or the workers who are indulged in the completion of the project. In order to complete the construction of Office Space, it is necessary to have an adequate and skilled workforce(Villa et al. 2017).

1.3.2.4.2 Project plant: The project Plant details explored in project tendering assignment will include all the information regarding the resources that will be used to complete the tasks like the types of machinery along with the place or space where the building is going to be constructed.

1.3.2.4.3 Project materials: The project materials will include all the resources like the construction material, workers, site material, papers, documents, IT resources, Measuring material, safety gears for the workers and the managers, and others. Additionally, all the details regarding the materials used in the completion of the small as well as the large tasks will be included.

1.3.2.4.4 Project sub-contractors: Since the Tender will be filled by one company, and it will be sanctioned by one company, but several other contractors will be a part of the project and will participate in its completion. After getting the tender, the tenderer company will hire contractors for different tasks, and those will be categorized as Sub Contractors(Richardson, 2016).

1.3.2.5 Submission of tenders: The tenders will not only be submitted officially but legally as well. Along with transferring the details with each other, both the parties need to submit the tender details with the legal authorities as well. 

1.4 Confidentiality
In tender Submission, confidentiality plays a vital role. The details mentioned by the tenderer must be kept confidential before the final selection. In the case of carelessness, the data can be theft and lead towards a loss for the tenderer.

2. Financing justification and financial arrangements of the project by the Principal, including: -
2.1 Source of funds, i.e. capital funds or operational expenses: In every tender, the major factor to be considered is the financial resource and its management. The tenderer must justify every detail regarding financial management, including the sources from which the company will get the funds raised.  Both the Capital Funds and the Operational Expenses mentioned in this project tendering assignment are also required to be included in the tender. The capital fund will be the whole amount to be invested in the completion of the project, and the operational expenses will include details regarding the funds required for handling each task individually. The details regarding the operational expenses will help in maintaining transparency (Singh, 2018).

2.2 Project selection criteria

Financial soundness

    Money related solidness 

    FICO assessment. 

    Banking courses of action and holding. 

    Money related status. 

Technical ability

    Experience. 

    Plant and gear. 

    Workforce. 

    Capacity. 

Management capability

    Past execution and quality. 

    Task the board association 

    Experience of specialized staff. 

    Board learning. 

Health and safety

    Wellbeing 

    Experience alteration rating 

    Occurrence rate. 

    The board security responsibility. 

Reputation

    Past disappointments. 

    The timeframe in business. 

    Past proprietor/contractual worker relationship. 

    Different connections.

 

3. Contractual terms, including:-
3.1 Nature of Contract: The nature of contract comprises of several factors including:

  • Consent Of The Parties,
  • Competent To Contract
  • Lawful Consideration
  • Formulation Of Trade,
  • Business And Commercial Relations

3.2 Service of Notices: While carrying on the project, it is mentioned in project tendering assignment that it is necessary to deliver the information to all the entitled entities. The member involved in the project, including the client's company and the tenderer, must be given appropriate information regarding the project. The project details will include the decision regarding the project, the financial decisions, and changes in the strategies, any modification required, and others (Hinton and Hamilton 2015).

3.3 Assignment and Subcontracting: In this stage, the tasks will be assigned to the authorized persons, and also contractors will be hired according to the requirements. In subcontracting, the external entities also get hired for taking part in the project and completing the particular task.

3.4 Statutory Requirements: The statutory requirements are also important in the project to be completed. The requirements will be fulfilled with the involvement of legal authorities. Getting an official approval, a license, or a permit that is required by Legal authorities for getting engaged in a certain activity.

3.5 Examination and Testing: Every aspect before getting applied practice needed to be examined and tested. If the planned procedure passes the examining and testing phase, then the practical execution gets done (O'mahony et al. 2015).

3.6 Progress and Programming of the Works within this project tendering assignment: While the process going on, every phase need to be measured on the scale of progress. Additionally, the methods for measuring the factors must also be recorded in the ender so that the transparency can be maintained even while executing the task.

3.7 Suspension of the Works: Suspension situation acres if the owner of the project instructs the tender company or that tender company e instruction the contractors to stop working on the particular portion of the segment of the project for a temporary period. This usually happens when any sort of financial issues occur or any modifications in the planning required (Chan and Owusu 2017).

3.8 Delay or Disruption Costs: In most cases, the projects get disturbed due to the Delay or Disruption Costs. The Delay or Disruption Costs may occur from any party. If the hiring party does not pay on time, then it becomes problematic for the tenderer parties to carry forward the project. Financial resources play a prominent role in the completion of the tasks. 

3.9 Defects Liability: While sending the tender to the client company, the tenderer company must involve the defect liability clause in the documents. The defect liability clause States about the security that is required to be kept for covering any salt of defects or repairs found in the infrastructure that is designed by the contractor. There is a particular period given for the defect liability, and if in that period any salt of defect or repair found then it will be the opportunity for the contractor to repair the defect (Karlsson and Kindbom 2018)

3.10 Variations: In order to complete the project with creativity, it is mentioned in this project tendering assignment that an organization needs to have some variations. Variations must not only be done based on plans to be executed but also on the infrastructural level.

3.11 Certificates and Payments: While the execution of the project, it is necessary that every process must be certified and tested by the experts. The experts will state the exact position and situation of the project to be executed. Additionally, to carry on the projects, the organization needs to complete the payments on time.

3.12 Default or Insolvency: In case the project fails or does not work accordingly, then it will become the responsibility of the tenderer to pay the debts; otherwise, it will be considered as the Defaulter. In case the organization is not able to pay the debts, then the legal authorities will start evaluating the assets of the organization and recover the losses of the debtors from it. If the evaluation of the assets does not fulfill the credit requirements, then the organization will be regarded as insolvent (Hastie et al. 2017).

3.13 Termination: In case, any condition or term is not followed by any of the party or any fraud is being done by the client or the tenderer, then the project will be led towards termination. Termination is the end of the project without getting completed. In the termination situation, the project gets canceled, and all the debtors will be paid their invested amount.

3.14 Claims: It is another contractual term that will be included in the tender. Claims will include two aspects first, the accidental claim that will be done with the motive to get recovered from any future damage. The second aspect discussed in this project tendering assignment is that if any of the parties make any fraud in the project, and then the second or the affected party may claim for the same.

3.15 Dispute Resolution and Arbitration: In case, any dispute occurs between the contractual parts is then the resolution will be done by accepting the legitimate terms. It is necessary to maintain the legacy of the project. In case of dispute, both the parties will be required to present their thoughts and his and then the board of directors will take the right decision.

4. Quality Assurance and Control requirements, including: -
4.1 Customer quality focus: In order to complete the project and lead the organization towards success, quality is one of the major factors that need to be assured. The organization needs to focus on customer quality. In case, quality factors are not assured, then it will not be possible to satisfy the customers and lead the project in the right direction.

4.2 Quality leadership: The leaders of the project need to handle their teams in such a manner that no sort of clash or disputes. Additionally, every task should be assigned to the team members according to their skills and requirements as well. Apart from this, it is the major responsibility of the leader of the project to handle that every team member must know his responsibilities, and the tasks must be clear in their mind as well.

4.3 Involvement of people: People mean that team members and the customers as well. Majorly to lead the project towards success, the organization must involve all the team members in the decision making the process. Every team member must understand what the actual process requires and what they are required to provide to the project.

4.4 Process approach: The organization and the team members must control the process approach. The approach of the process discussed in this project tendering assignment must be towards the positive direction and also every team member must know where the process needs to be needed.

4.5 Systems approach: System approach mentioned in this project tendering assignment focuses on the factor that every department should be focused on one goal only. The approach of the whole system must be the same.

4.6 Continuous improvement: In order to complete the project with the best result, the organization needs to improve continuously. Even if the plan is already designed, then also some steps should be taken by the organization for improving it in a better way.

4.7 Mutual benefit: While completing the project, it is necessary to take the benefit of both the parties into consideration. Not only the hiring party should be benefited, but also the tenderer party must be benefited. Additionally, the people who are involved in the project apart from the hired organization and the hiring organization must also be assigned the task in such a manner that they can easily avail the benefits. The concept of mutual benefit will help the organization in completing the task with more motivation.

5. Safety requirements, including: -
5.1 Safety management review: In the construction business, safety is one of the major factors that need to be reviewed properly. The laborers working on the site must be provided all the years that is important for their safety. Additionally, all other safety considerations must be taken.

5.2 Safety measurement and evaluation: While planning and executing the plans, it is necessary to measure the entire safety factor. Every factor should be evaluated in such a manner that in case any salt of damage or accident occurred then it can be handled easily.

5.3 Safety implementation: Safety implementation mentioned in this project tendering assignment consists of the processes that should be added in the project so that the safety of the laborers and the team members working on the project can be insured easily. It is important to implement all the factors in such a manner that the team members can easily work on the site without getting injured or having any accident.

5.4 Safety planning: In the construction industry, safety planning plays a necessary role. Safety planning includes all the processes that are adopted by the organization to keep the team members and the workers safe while working on the project. Interior Designing Institutes in India includes the measures that will be taken into consideration by the organization for handling future accidents and damage as well.

5.5 OHS policy: The OHS policy mentioned in this project tendering assignment is the occupational health and safety policy. It is an oath taken by the employer, through which the employer promises about the safety and security of the team members and the workers.

Reference List
Axelsson, J., Fröberg, J. and Eriksson, P., 2018, June. Towards a system-of-systems for improved road construction efficiency using lean and Industry 4.0. In 2018 13th Annual Conference on System of Systems Engineering (SoSE) (pp. 576-582). IEEE.

Brown, J. and Loosemore, M., 2015. Behavioural factors influencing corrupt action in the Australian construction industry. Engineering, Construction and Architectural Management, 22(4), pp.372-389.

Chan, A.P. and Owusu, E.K., 2017. Corruption forms in the construction industry: Literature review. Journal of Construction Engineering and Management, 143(8), p.04017057.

Grzybowska, K. and Kovács, G., 2017. The modelling and design process of coordination mechanisms in the supply chain. Journal of Applied Logic, 24, pp.25-38.

Hastie, J., Sutrisna, M., and Egbu, C., 2017. Modeling knowledge integration process in early contractor involvement procurement at tender stage–a Western Australian case study. Construction Innovation, 17(4), pp.429-456.

Hinton, M.A. and Hamilton, R.T., 2015. Competitive tendering and individual behaviour in the construction industry: convenient immorality at work. Project tendering assignment Construction management and economics, 33(11-12), pp.880-889.

Karlsson, A. and Kindbom, I., 2018. Collaboration between project owners and contractors during the tender process in the construction industry.

Karlsson, A., and Kindbom, I., 2018. Collaboration between project owners and contractors during the tender process in the construction industry.

Lewis, C., 2016. Assessment of tender evaluation criteria in the construction industry (Doctoral dissertation).

Novak, A., Tracey, L., Nguyen, V., Johnstone, M., Le, V. and Creighton, D., 2015, December. Evaluation of tender solutions for Aviation Training using discrete event simulation and best performance criteria. In 2015 Winter Simulation Conference (WSC) (pp. 2680-2691). IEEE.

O'mahony, B., Noone, D. and Prihodova, L., 2015. Survey of coagulation factor concentrates tender and procurement procedures in 38 European Countries. Haemophilia, 21(4), pp.436-443.

Richardson, J., 2016. Improving the transition of a successful tender from estimating to project management phases.

Singh, S., 2018. Impact Assessment Of Judicial Approach Towards Tender Process In India.

Urquhart, S., Whyte, A. and Lloyd, N., 2017. The development of a more efficient internal tender procedure framework for Australian construction contractors. In Proceeding of the 33rd Annual ARCOM Conference (pp. 693-702).

Villa, V., Di Giuda, G.M., Giana, P.E., Tagliabue, L.C. and Ciribini, A.L.C., 2017. Project tendering assignment Lean construction applied to a BIM process: how to control point attribution in MEAT tender process. Tema: Technology, Engineering, Materials and Architecture, 3(1), pp.35-44.

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