ENGM90006 Engineering Contracts and Procurement

Assignment, Semester 2, 2014

Tender Preparation
This years assignment is to be undertaken as your own individual work. Assume you are the
leader of a companys Tendering Team for one of the following projects:
1. The Design and Construct Contract for the Regional Rail Link Deer Park to
Werribee section Work Package E..
2. Construct only (AS2124) Registration of Interest (ROI) for Head Contractor H.M. Prison
Barwon - New High Security Unit.
3. ICT Network & Systems, Expression of Interest (EOI) for Royal Victorian Eye and Ear
Hospital Redevelopment Project. Assume this is being delivered using AS4300 as a base
level contract.
4. Agreement for Professional Services for the Provision of Cathodic Protection
Services, Organisational specific consulting agreement (Consula Contract)
5. Energy Performance Contract, assumed facility is a tertiary educational institute, use
Higher Education Template as a guide and the DTF standard form of contract.
6. Latrobe Regional Hospital - Stage 2, assume being done under AS 4122-2010: General
Conditions for Consultants.
NB: a) It is not permissible to replace the above projects with one you may be working on in a
corporate environment.
b) Do not contact any of the actual project teams as part of this exercise. If this happens you
will receive zero for the assignment.
It is anticipated that you will select a project of relevance to your engineering domain or that you
will select the project based on a particular form of contract. Regardless of which project you
select the task will be the same. You are to modify the project dates to be current and you are to
assume that you have been short listed and invited to prepare a detailed proposal.
The assignment will be undertaken from two (2) separate perspectives. The first is from the
perspective of the Owner and the second from the Providers perspective.
Perspective 1: The Owner
I)

Explain the benefits and risks associated in using the contracting form nominated.
Include in your discussion factors such as the context, organizational experience,
specifics of the project, risk profile of the project. You should also clearly outline the
anticipated time dimensions for the project and the reasons behind the suggested time
frames [for some of the above projects time frames have been outlined in this case
you need to provide comments and discussion on the durations and expectations
provided and potentially update the dates such that the deal is current. If your chosen
project does not include contractual dates you first need to nominate them and then
discuss].

II)

Detail and discuss the reasons behind the selection of specific contract terms as
generally described in Annexure Part A of the most relevant Australian Standard
General Conditions of Contract, (e.g. AS2124 construct only, AS 4300 design and

construct, AS 4122 consulting agreement, AS 4919 Asset maintenance and service).

A completed Annexure Part A may form an appendix to your assignment.
Perspective 2: The Provider
III)

Prepare a briefing document for the Chief Executive Officer of your construction
company detailing the current market conditions associated with bidding for the
project. Your brief is to include details of the general market (as of today 2014), the
economic climate, alignment of the project with your company strategy, your likely
competitors, resourcing, cash flow and other risks associated with proceeding with a
tender for the project. The objective of the briefing note is to have the CEO make a
decision as to whether your company should pursue the tender and develop a bid.

IV)

Based on the specifics of your chosen project identify five to ten critical risks and/or
opportunities associated with the project. Sufficient detail is to be provided to justify
the significance of identifying these risks as priorities. Matters for consideration
would include (but not be limited to): the companys relationship with the Client, the
companys experience and track record in this type of work, the clarity of the EOI
documentation provided and specific risks associated with the project.

Importantly, the document prepared for parts III and IV of this assignment should be prepared in
accordance with that expected of an internal company briefing note.
Remember, data for this assignment should only be collected from public sources, e.g. current
affairs material.
V)

Detail a strategy for your tender. What is going to make your tender a winner? Where
is your commercial advantage? What commitments is your company prepared to
offer to improve your chances of success?
Consideration should also be given to:
Commercial aspects associated with producing a complying tender.
Your attitude to seeking later variations and claims.
Risk management and risk mitigation considerations.

VI)

Assume your company has decided to pursue this opportunity. Develop a Tender
Preparation Plan for the preparation and submission of your companys tender. This
plan is to cover the tender period; it is not a full program for the delivery of the
project.
Your plan should:
Outline the tasks to be completed as a part of preparing the tender and this
information should be presented as a schedule (a bar chart would suffice).
Identify the specific resources required during the tender phase and prepare
an organizational chart for these resources.
Indicate how the final tender price would be developed and then signed off
by your company. A flow chart of the approval process may be useful.

The assignment is due by 9am on Wednesday the 8th October 2014 and it is to be submitted
via Turnitin in LMS.

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The whole assignment will be worth 45% of your subject result.

The cumulative length (adjusted, i.e. not including face sheet or appendices) of the submissions
should be no more than 3000 words. NB: Material provide in the appendices is only supporting
information and does not need to be considered in the marking process

Late submissions will be penalized by 5% for each day late. Special conditions should be
advised in accordance with university policy, else they will be time barred from
consideration.
Assignment cover sheets are to be attached to your submission.

ENGINUITY Performance
Five marks will be granted for successful completion of the ENGINUITY game, i.e. 8 rounds of
bidding. A group contribution sheet is to be submitted via turnitin in LMS by 9am 15 October
2014.
Bonus marks will be granted to members of the teams that perform best as follows:
Winning team, 3 marks bonus
2nd place, 2 marks bonus
3rd place, 1 mark bonus
(Group, 5 marks +)

Colin F. Duffield
Released 13 August 2014

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