Maximum Guaranteed Maximum Price Contract Procurement For the ..

Modified Guaranteed Maximum Price (MGMP) Contracting For the Public Rental Housing Development At Eastern Harbour Crossing Site Phase 4 MGMP Contracting  Risk-reduced Model Developed from Private Sector’s Target Cost and Guaranteed Maximum Price (GMP) Contracting A contracting model which allows for:   Integration of contractor‟s expertise and innovation in design and construction at tender and post tender stage And in doing so, it embraces the feature of - a guaranteed maximum price at main contract award - shared savings during construction  MGMP Contract Procurement Route DESIGN Direct Works Design and Construction Information MGMP Works Packages / MGMP Sub-contract Works Tenderers Issue Tenders for MGMP Sub-contract Works Following HA‟s Tendering Procedures and Guidelines Tenderers Submit Technical Proposals Tender Price Award MGMP Contract Sum TENDER CONSTRUCTION Design Development for GMP Sub-contract Works Based on Technical Proposals Main Contractor Carries Out Works Main Contractor Carries out Works under „Open Book‟ Accounting Arrangement Variations Valuation of Variations Shared Savings Final Account Resolve Disputes Through Adjudication Committee MGMP at Various Stages of Procurement  Design Stage Tender Stage Construction Stage   Appendix A Design Stage  DESIGN Design and Construction Information Direct Works MGMP Works Packages / MGMP Sub-contract Works Key features at design stage • Employer identifies works packages that require integration of contractor‟s input in design, buildability, and procurement TENDER Tenderers Issue Tenders for MGMP Sub-contract Works Following HA‟s Tendering Procedures and Guidelines Tenderers Submit Technical Proposals Tender Price • Employer prepares basic scheme / outlined design and performance specification for works packages Works Packages subject to detailed design development by the contractor Award MGMP Contract Sum CONSTRUCTION Design Development for GMP Sub-contract Works Based on Technical Proposals • Main Contractor Carries Out Works Main Contractor Carries out Works under „Open Book‟ Accounting Arrangement Variations Valuation of Variations Shared Savings Final Account Resolve Disputes Through Adjudication Committee Appendix A Tender Stages  DESIGN Design and Construction Information Direct Works MGMP Works Packages / MGMP Sub-contract Works Key features at tender invitation  TENDER Tenderers Issue Tenders for MGMP Sub-contract Works Following HA’s Tendering Procedures and Guidelines Earmarked for Premier League Contractors  Corporate Strength  Partnering Commitments  Experience on GMP MGMP Sub-contract Packages  Domestic sub-contracts  Back to back contract documentation  Follow HA‟s tendering guidelines MGMP sub-contract tender prices  Ceiling price  Part of the overall contract sum CONSTRUCTION Tenderers Submit Technical Proposals Tender Price Award MGMP Contract Sum  Design Development for GMP Sub-contract Works Based on Technical Proposals Main Contractor Carries Out Works Main Contractor Carries out Works under „Open Book‟ Accounting Arrangement Variations  Valuation of Variations Shared Savings Final Account Resolve Disputes Through Adjudication Committee Appendix A Tender Stages  DESIGN Design and Construction Information Direct Works MGMP Works Packages / MGMP Sub-contract Works TENDER Key features at tender evaluation and award  Tenderers Issue Tenders for MGMP Sub-contract Works Following HA’s Tendering Procedures and Guidelines Tenderers Submit Technical Proposals Tender Price Contractors submit technical proposal for the MGMP Sub-contract works Technical and price evaluation in tender assessment Contract Sum and the technical proposals are binding to the contract Award MGMP Contract Sum CONSTRUCTION Design Development for GMP Sub-contract Works Based on Technical Proposals  Main Contractor Carries Out Works Main Contractor Carries out Works under „Open Book‟ Accounting Arrangement Variations  Valuation of Variations Shared Savings Final Account Resolve Disputes Through Adjudication Committee Appendix A Construction Stage  DESIGN Design and Construction Information Direct Works MGMP Works Packages / MGMP Sub-contract Works Key features at Construction Stage  TENDER Tenderers Issue Tenders for MGMP Sub-contract Works Following HA‟s Tendering Procedures and Guidelines Tenderers Submit Technical Proposals MGMP Subcontracts under “Open Book” accounting arrangement Further savings from improvements in buildability and use of materials would be shared Adjudication Committee to settle differences on MGMP design developments and variations CONSTRUCTION Tender Price Award MGMP Contract Sum  Design Development for GMP Sub-contract Works Based on Technical Proposals Main Contractor Carries Out Works Main Contractor Carries out Works under ‘Open Book’ Accounting Arrangement  Variations Valuation of Variations Shared Savings Final Account Resolve Disputes Through Adjudication Committee Opportunities offered by EHC Site Phase 4  Project  Three site-specific domestic blocks Bus terminus and noise barrier Lift tower cum footbridge   Opportunities offered by EHC Site Phase 4  The Master Layout Plan  Integration of Contractor’s Expertise  Good potential GMP packages for site specific nature of project Proposed packages of works    Bus Stop Specialist External Works (Footbridge and Lift Tower, Covered Walkway, etc.) Plumbing and Drainage Fire Services and Water Pump Installation Electrical Services Installation     Superstructure  Moderation of Benefits and Risks  Opportunities    Integration between building services and reinforced concrete construction Optimization of precast construction Optimization of contractor‟s expertise in specialist design Thank you