CONSTRUCTION INDUSTRY COUNCIL Technical Seminar on Construction Procurement Selection of Consultants 27 November 2015
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1 CONSTRUCTION INDUSTRY COUNCIL Technical Seminar on Construction Procurement Selection of Consultants 27 November 2015
2 Background A Task Force established by CIC Comprising Government, Clients, Consultants, Contractors and Professional Bodies Representing the Task Force s general consensus view Good practice
3 Importance of Selecting the Right Consultant Consultant s fee makes up a low percentage of the total project cost Consultant s impact is substantial Good design is fundamental to project success
4 Benefits of Adopting Reference Materials 1. Better project outcome 2. Better relationships 3. Greater transparency
5 Consultant Procurement Process FOUR STAGES: 1. Procurement Strategy 2. Selection of Tenderers and Tendering 3. Tender Evaluation and Contract Award 4. Performance Assessment
6 Stage 1 : Procurement Strategy 6
7 Objectives of a Design Procurement Strategy 1. Achieve project programme and budget 2. Reduce project risks 3. Minimise interfaces 4. Maximise use of contractor s expertise 5. Promote the widest participation 6. Provide open, fair, objective and transparent tender process. 7
8 Key Issues of a Design Procurement Strategy 1. Design Responsibility: Employer/Contractor 2. Consultancy Packaging 3. Form of Contract 4. Tendering Method 5. Tender Assessment Criteria
9 Developing a Design Procurement Strategy Key Issues 9
10 ISSUE 1: Design Responsibility 1. Fundamental issue 2. The most appropriate project delivery whether by employer led design or design and build approach 3. A hybrid is common 4. Decision affects the scope of services for design consultancies
11 ISSUE 2: Consultancy Packaging 1. Minimise design interfaces 2. Opportunity for wider participation 3. Critical or specialist systems 4. Phased development 5. Use of option
12 ISSUE 3: Single/Multi-discipline Consultancy 1. Depends on project complexity and Client s capability 2. Multi-discipline consultancies provide a single point of responsibility 3. Single discipline consultancies provides more direct control over the design but Client takes interface management responsibility
13 ISSUE 4: Use of Framework Agreement Used when the scope of services cannot be pre-defined Term contract with a call off arrangement This provides flexibility and efficiency Fosters long term relationship/retention of knowledge
14 ISSUE 5: Achieving Value for Money 1. Aligning with commercial objectives 2. Appropriate technical emphasis 3. Promoting long term relationship 4. Encouraging wide participation to obtain healthy competition 5. Promoting innovation
15 Stage 2: Selection of Tenderers & Tendering 15
16 Method of Selecting Tenderers 1. Open Tender 2. Selective Tender 3. Single Tender / Sole Sourcing 4. Direct Negotiation 5. Design Competition
17 Choice between Open and Selective Tender 1. Depends on the type and complexity of consultancy 2. Open tender allows tenderers to form their own teams 3. Selective tender allows short-listing of qualified consultants before tender and reduction of abortive tender work
18 Single Tender / Sole Sourcing 1. Exception rather than rule 2. Examples of possible application: highly specialist services competitive tender fails there is a clear advantage in terms of continuity a long term business relation exists to provide confidence of successful performance, etc. speed is critical
19 Consultancy Tender Documents 1. Expression of Interest (EOI) 2. Request for Proposal (RFP) Invitation to Tender Consultancy Agreement Scope of Services Fee Proposal Instructions to Tenderers
20 Tender Submission 1. Form of Tender with Fee Proposal 2. Technical Proposal 3. Financial Information 4. Company Information
21 Obtaining Competitive Bids 1. Robust tender documentation 2. Equitable contract 3. Good communication 4. Sound tendering process
22 Potential Areas for Improvement 1. Classification and banding of Consultants 2. Simplified Requirements on Proposal Documents 3. Lack of Definition in Scope
23 Stage 3 : Tender Evaluation & Contract Award 23
24 Objective and Principles 1. To obtain the most advantageous tender 2. Open, transparent, formal, objective and fair process 3. Selection based on capability with due technical focus 4. Relevance to business needs and requirements 5. Confidentiality 6. Audit trail
25 Tender Evaluation Methods 1. Lowest fee (may include a technical passing mark) 2. Combined technical and fee evaluation (Two envelope system) 3. Combined technical and fee evaluation (Three envelope system)
26 Determining the Appropriate Tender Evaluation Method Depending on complexity of the project: 1. Nature of the works 2. Need for specialist input 3. Number of design disciplines involved / design interface coordination 4. Interface with existing facilities and operations 5. Opportunity for design and build 6. Programme challenge
27 Tender Assessment Team Team leader: To maintain objectivity and provide guidance on objectives Composition Multi-functional team of technically competent members Declaration of interest Preparation of assessment guidelines Expert opinion
28 Tender Assessment Process 1. Form tender assessment team 2. Pre-determine tender evaluation criteria 3. Declare interest before commencement of assessment 4. Complete technical assessment before opening price 5. Hold tender interview / presentation as appropriate 6. Open tender prices 7. Address tender qualifications to maintain level playing field 8. Determine the most advantageous tender
29 Potential Areas for Improvement 1. Consideration of Corporate Experience in Marking Scheme of Technical Proposals 2. Focus on Designated Consultant Team in Technical Assessment 3. Revamp of the Two-envelope System
30 Stage 4 : Performance Assessment 30
31 Performance Assessment Criteria General attributes eg. the project team Concept, feasibility and planning Design development Construction drawings and specifications Tender Construction Commissioning and handover
32 Feedback Into Future Procurement Performance records to be considered in technical assessment of future tenders
33 THANK YOU
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