Hackney Borough Council Tendering Process - Assignment Example

Hackney Borough Council tendering process Author Name University Name Professor Name Course Name & Number Date of Submission Table of Contents Task 1:LO1-INFORMATION REQUIRED PRODUCING A TENDER. 3 Client’s Involvement in Tendering Process 3 Constraints for the project 3 Scope of the contractual documentation 4 Task 2: LO2. Be able to apply the principles and techniques of estimating. 5 Task 3: LO3. Be able to formulate estimates for construction operations. 8 Task4: LO4: Tendering procedures and contractual arrangements 11 Stages Associated With Open And Selective Tendering. 11 Factors that are used to select a list of contractors 12 Different forms of contracts that could be used on the project 13 References 14 Task 1:LO1-INFORMATION REQUIRED PRODUCING A TENDER. Client’s Involvement in Tendering Process In tendering process, some information is required and this can be supplied by the client because he understands the needs of the project. The client will be able to provide the financial limits for the contract, the substance of the contract such as bill of quantities, drawings, contract type, contract period, liability of the contract and schedules for the contract. The client will be in a position to provide this information which is necessary for contract formulation. This information is not with the client but will be organized and paid for by the client. For example bill of quantities will be provided by quantity of surveyors who will be paid by the client. Hackney Borough Council will organize for the drawings and other plans for the contracts which will be inspected by the contractors before making their bids. The client will also provide necessary documentation that shows the projects legality such as title deeds for the land to be used, approval for such usage, tax compliance information and license information. If the client fails to provide such information, the tendering process will abort mid way since some of the information will be lucking. It is important for the client to ensure that this information is provided and available before the tendering process begins. Constraints for the project The construction of the college, development of roads, electricity and telecommunication networks, water supply and drainage system has many constraints which will affect the project completion. The area may not have laid down water and sewerage infrastructure which are necessary for the facility. Environmentalist may also oppose the project because of the impact it will have on the environment. The constraint of availability of expatriate staff, difficulty in disposal of plant and machinery and the mandatory requirement. The project may be characterized with a great deal of ambiguity, which is relative to not only the initial stages of the project. A significant part of the project value cannot be determined because of the existence of uncertainty factors that are not appropriately estimated. Scope of the contractual documentation The tender documents will entail tender particulars which will consist of land development, water supply and drainage, electricity, telecommunication, road network and a new FE college construction documents. The documentation will also have tender Conditions, Schedules and special conditions. In addition engineering aspects will be documented showing each section that will be covered by engineers such as electrical wiring, telecommunication networking, plumbing and road network construction. Task 2: LO2. Be able to apply the principles and techniques of estimating. The data that will be required to build up unit costs for the project- The data that will be required for the construction of the unit cost for the project will be: the width of the trenches to be excavated, the cost of back filling the bottom slab in m3, the amount of concrete that will be used in the foundation, the cost of anti-termites and the m3 to be used. There will be also the cost of steel that will reinforce the columns that will form the frame of the buildings. The frame will consist of Y12, Y8 and R6 bars. This information will be obtained from BS 4449 which will be used in making bill of quantities. The use of standard data documentation - Foundation of the facilities will be on a terrain which is not flat meaning that the ground will be flattened first before any construction. The foundation should have strong steel to ensure there is a strong foundation for the school. It will have a square footing of 3m by 3m for each column. Two method statements for task 2b suitable for compiling unit costs COLLEGE               No. Item Description Unit Qty Rate Amount             Element No. 1 Excavation and Earth Work                       Unless otherwise stated, Rate shall include for                     a) Back filling with selected excavated material & consolidating. Surface treatment; compaction before filling / foundation.                     b) Disposal of surplus soil as directed & keeping all excavations free from water unless otherwise measured separately.                     c) Any additional excavation for working space.                       d) Trees will require protection                       Excavation & Earthworks                     A1 Excavate top soil 150 -200m thick and cart away to dispose as directed on site m² 212.00  172               A2 Excavate strip foundation trenches starting from the stripped level to a depth not exceeding 1.5m deep. m³ 48.00  170               A3 Ditto but to verandah m³ 17.00   60                 Fillings                     A4 Filling under floor beds to make up levels with gravel or other equal and approved good quality imported filling material: spread and compact in layers not exceeding 150mm thick: by rolling with rollers to B.S 95-98% compaction m³ 68.00  60                 Anti-termite treatment                     A5 Anti - termite treatment to fillings and tops of foundations: as " Aldrex" or equal and approved insecticide treatment: applied in accordance with the manufacturer's printed instructions : include for 10 years warranty period. m² 179.00  600                             In Situ Concrete           Concrete class 15/20 in 50mm thick blinding under:                     B1 Strip footings m² 59.00  1650                 Concrete class 20/20 in:                     B2 Strip footings m³ 12.00  2000               B3 Ditto but in 200 x 200mm stub columns m³ 1.00  1500               B4 100mm thick floor beds: laid in bays not exceeding 6m x 6m m² 179.00 900                 Formwork                       25mm thick sawn cypress formwork to:                     B5 Edges of floor slab not exceeding 150mm high m 63.00  450               B6 Sides of stub columns m² 12.00  850                             Steel reinforcement (to BS 4449 and characteristic strength fy = 460N/mm2) and Mild steel reinforcement ( to BS 4449 and characteristic strength fy = 250N/mm2)                     B7 Y8 high yield bars as transverse reinforcement in strip foundations kg 182.00  30               B8 Y10 high yield bars as main reinforcement in strip footings kg 328.00  35               B9 Ditto but in column bases kg 60.00  32               B10 Ditto but in stub columns kg 64.00  32               B11 R6 bars as links to stub columns kg 10.00 22                             Solid concrete block walls: bedded and jointed in cement and sand (1:3) mortar to steps                     C1 200mm thick walls in strip foundations m² 108.00  170   Task 3: LO3. Be able to formulate estimates for construction operations. The bills of quantities format COLLEGE               No. Item Description Unit Qty Rate Amount             1 Excavation and Earth Work                       Excavation & Earthworks                     A1 Excavate top soil 150 -200m thick and cart away to dispose as directed on site m² 212.00  172  15,264             A2 Excavate strip foundation trenches starting from the stripped level to a depth not exceeding 1.5m deep. m³ 48.00  170  8,160             A3 Ditto but to verandah m³ 17.00   60  1,020               Fillings                     A4 Filling under floor beds to make up levels with gravel or other equal and approved good quality imported filling material: spread and compact in layers not exceeding 150mm thick: by rolling with rollers to B.S 95-98% compaction m³ 68.00  60  4,080               Anti-termite treatment                     A5 Anti - termite treatment to fillings and tops of foundations: as " Aldrex" or equal and approved insecticide treatment: applied in accordance with the manufacturer's printed instructions : include for 10 years warranty period. m² 179.00  600  107,400                           In Situ Concrete           Concrete class 15/20 in 50mm thick blinding under:                     B1 Strip footings m² 59.00  1650  97,350               Concrete class 20/20 in:                     B2 Strip footings m³ 12.00  2000  24,000             B3 Ditto but in 200 x 200mm stub columns m³ 1.00  1500  1500             B4 100mm thick floor beds: laid in bays not exceeding 6m x 6m m² 179.00 900  161,100   25mm thick sawn cypress formwork to:         B5 Edges of floor slab not exceeding 150mm high m 63.00  450  2,835 B6 Sides of stub columns m² 12.00  850  10,200   Steel reinforcement (to BS 4449 and characteristic strength fy = 460N/mm2) and Mild steel reinforcement ( to BS 4449 and characteristic strength fy = 250N/mm2)         B7 Y8 high yield bars as transverse reinforcement in strip foundations kg 182.00  30  5,460             B8 Y10 high yield bars as main reinforcement in strip footings kg 328.00  35  11,480 B9 Ditto but in column bases kg 60.00  32  1,920 B10 Ditto but in stub columns kg 64.00  32  2,048 B11 R6 bars as links to stub columns kg 10.00 22  220 C1 200mm thick walls in strip foundations m² 108.00  170  170 Total The critical factors that affect the profit margin- Profit margin for such contracts will be affected by many critical factors such as escalation of cost after the tendering process is complete. The escalation of cost can be influenced by inflation, industrial action, occurrence of a natural act like floods or earthquakes, change of taxation policy and change of interest rates. Effects of health, safety and welfare plan affects the tender- The contactor will be required to have safety manuals to be used during construction. These manuals contain a list of common hazards in that specific this environment and the means and methods to avoid these hazards. This will increase the costs- a tendering process will require the bidders to provide for health, safety, and welfare plans during bidding. Any bidder who does not provide this information will be disqualified. Task4: LO4: Tendering procedures and contractual arrangements Stages Associated With Open And Selective Tendering. Any contract both open and selective has four stages which are; pre-tender, tender evaluation and award stages. Pre award tender stage involves collecting all the information formation for the tendering process that is drawings and specification, cost estimates/ budget, compliance with the law and other preliminaries. The tender stage will entail advertising, choosing the tender period, confirming all documents containing all information, receiving potential contractors in inspecting the site before biding, receiving bids and opening the bids. Evaluation stage involve recording all bids received as well as checking their compliance with the requirements. At this stage any variations that are expected will be renegotiated. The last stage is the awarding of the tender by the selection panel. Open contracts have various stages associated with them in order successful tendering to take place. The stages associated are two types which include two envelopes for technical and financial bids and the second stage is two envelopes for post qualification questionnaire and financial/ technical bids. The stages of selective tender include the selection of a suitable and determination of suitable contractor. A contractor is selected from the list of contractors which have been prepared for the contract. The experience in similar contracts, the financial strength and resources capability will be used to evaluate the contractors before choosing one. Once he has been chosen, negotiation will beginning to determine the contractual price. An agreement will be reached for the price and time taken to complete the project. Factors that are used to select a list of contractors In selecting a list of contractors, various factors are taken into consideration among them the financial strength of the firm in question, the ability of its resources to sustain the workload of the project and the willingness to undertake the tender. The project in question requires the development of infrastructure such as water supply and drainage system, road network, telecommunication network, electricity connection and construction of a college. This requires the following criteria in selecting a list of contractors. huge financial outlay A good history in completing similar projects. Agreement and ability to complete the project within the budget and necessary dates High standard of workmanship The willingness to complete the project Compliance with all laws including labor relationships. Different forms of contracts that could be used on the project It is necessary to select a proper form of contract for such a project to avoid performance and cost risks to the contractor the client. In this type of contract, two types of contracts will be considered; fixed price contract and cost reimbursement contracts. Fixed price contracts will have a fixed price which the contractor will be paid for the entire project. It is upon the contractor to choose a price during bidding that includes the economic value as well as incentives for the project. This form of contracts is ideal for projects which whose value can be estimated with reasonableness as well as cost escalation can be estimated with certainty. Cost reimbursed form of contracts is a contract where the contractor is paid all the cost plus a certain margin. This means that the contract s costs can be estimated with certainty and Hackney Boruogh Council is of the project. In this project, it will not be possible for the council to control the entire project because of the number of human resource and plant and equipment that will be used during the project. This means fixed price form of contract is appropriate for the project. References Augustin, S., 2009. Place Advantage: Applied Psychology for Interior Architecture. New York: John Wiley & Sons. Aubervy, J., 2008. House Building and best practices. London: Oxford Publishers. 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School design: Crisis, educational performance and design applications. Children’s' Environments, 10 (2), 99-112. Nathan, J. & Febey, K., 2000. Smaller, Safer, Saner, Successful Schools. Washington, D.C.: National Clearinghouse for Educational Facilities. Phillips, D., 2004. Day lighting: natural light in architecture Elsevier Read More