The purpose of this section is to alert Health Services/Agencies and Consultants involved in managing projects of the information to be included in the tender evaluation and recommendation report in order to comply with process, probity and audit requirements.
In accordance with industry practice and government audit requirements, the department will carry out random independent audits of the tendering process used in awarding contracts. The administrative time of all parties involved in the audit process can be minimised if relevant information is included in the tender evaluation and recommendation report.
The Code requirements need to be adequately covered. Requirements may be included in the body of the report, as attachments or as summaries as applicable.
Tender / Scope
Pre Tender Estimate
Type of Tender
Key Selection Criteria
Addenda (and Clarifications) Issued During Tender Period
Tender Validity Period
Note: To prevent tenders from lapsing, it shall be the responsibility of the Principal Consultant to seek, on the Agency's behalf, confirmation from tenderers for an extension of the validity period if a tender is not awarded before the expiry of the original validity period.
An analysis of tenders against each predetermined key criteria including:
Where a Health Service/Agency or department is to enter into a contract they should confirm that their financial and legal advisers are satisfied with the financial and legal status of the recommended tenderer.
For a contract perceived to be high risk, complex or large ($5M or more) an independent assessment of financial viability is to be undertaken; and the level of surety (generally in the form of unconditional bank undertakings) is to be set accordingly.
Several studies of disputes in the building and construction industry have revealed that a major cause of disputation (including litigation) results from the poor management of risks. Disputes are costly, often cause project delays, and should be avoided wherever possible through the pro-active management of risk. Major causes of disputes arise from:
Project risks exist at all stages of a capital works project and the PCG or governance group should identify and incorporate key risks into a Project Risk Register. The Register should identify risks and have strategies for risk mitigation; it should be kept up to date throughout the project.
The SP shall re-visit the Risk Register to confirm that identified risks associated with tendering have been effectively managed; with specific attention to risks identified for the tendering process.
The experience and qualifications of the proposed contractor's management, supervision and other staff is an important risk factor. Other risks include issues of probity, transparency, timeliness, security, schedule of rates and charges etc. Risks are usually managed through inclusion in the key selection criteria and may affect the required level of contract security to be incorporated into the contract.
Contractor related risks should be ascertained at the EOI stage and at the RFT for a two stage tender process, and should be considered in the tender evaluation.
Timeliness is important to the Principal and occupiers of facilities. The experience of the department and project consultants should be used to develop a realistic project timeframe covering all stages from feasibility study to the end of occupied commissioning. As a project progresses, the project timeframe is revised and this permits more detailed planning by the occupiers for example regarding fit-out, commissioning and occupation.
At the tender stage, a tentative program will be sought from tenderers, showing how they intend to deliver the project within the contract period and the level of allowable delays called ‘float' in their program. The contract program should include allowances for expected delays caused by seasonal weather conditions and unexpected site conditions.
The contract conditions cover how delay and slippage are managed during the contract stage, but where time is critical to the Agency, Health Service or department negotiations at the tender evaluation stage may include the tenderers capacity to accelerate activities to make up for lost time.
The tender evaluation should consider value for money as a key evaluation criterion. This will include factors such as life cycle costs, alternative details/finishes offered, etc. Operations and maintenance costs can be more significant where the facility needs to be decanted or service delivery is interrupted while replacements or upgrades occur and the inclusion of a cheaper initial tender price may need to be critically appraised when considering the wider implications for the agency. This may result in the lowest tender not being recommended for acceptance.
All non-conforming tenderers are to be noted with reasons provided, for example:
Attachments to be Included
The following attachments are to be included as an appendix to the tender recommendation report: