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GUIDELINES FOR TENDERING POLICY

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					GUIDELINES FOR TENDERING POLICY
GOV0023

Policy Register

Wollondilly Shire Council PO Box 21 Picton NSW 2571 62-64 Menangle St Picton NSW 2571 Tel: 02 4677 1100 Fax: 02 4677 2339 DX: 26052 Picton

Email: council@wollondilly.nsw.gov.au
Vision 2025 – Rural Living www.wollondilly.nsw.gov.au

GUIDELINES FOR TENDERING
1. LEGISLATIVE PROVISIONS

The Local Government Act 1993, defines requirements for tendering. Council must invite tenderers before entering the following contracts:1. 2. 3. 4. 5. A contract to carry out any work directed or authorised by or under any Act, to be carried out by the Council. A contract to perform a service or to provide facilities directed or authorised by or under any Act to be formed or provided by the Council. A contract for providing goods and materials to Council. A contract for disposal of a property to Council. A contract requiring the payment of instalments by or to the Council over a period of two (2) or more years.

Section 55 (3) provides a number of exceptions to the above requirements, including a contract for less than $100,000.00 or such other amount as may be prescribed by the regulations.

2.

TENDER DOCUMENTATION

Tender Documents:* * * * * * Must clearly define the contractual obligations of the parties; Must provide full details of all work covered by the tender; Must draw attention to any special conditions or obligations under the contract which depart from the client’s normal practice; Must designate any supporting information required from tenderers; Must nominate a person for the provision of additional information; Should provide a positive encouragement to tenderers, allowing them the option, in addition to submitting a conforming tender, to show maximum innovation while still adhering to the client’s commercial and technical objectives; and Must identify the criteria on which the assessment of tenders will be based.

*

PROCEDURE Tender document must include the following passage:“All tenderers must comply with the New South Wales Government Code of Practice for the Construction Industry. Lodgement of a tender will be evidence of the tenderer’s agreement to comply with the code for the duration of any contract that may be awarded. If any tenderer fails to comply with the code, the failure may be taken into account by the Principal when considering this or any subsequent tender and may result in this or any subsequent tender being passed over.”

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 1 of 9

GUIDELINES FOR TENDERING
3. TYPES OF TENDERS

The Local Government (Tendering) Regulation 1993, describe various ways to undertake tendering:A. Open tendering method by which tenderers for the proposed contract are invited by public advertisement. If Council undertakes an open tendering process, it must publish an advertisement in a relevant newspaper, inviting tenders for the proposed contract. The advertisement must have:a. b. The purpose of the proposed contract. Details of when and where tender documents relating to the proposed contract can be obtained. An invitation to any person willing to fulfil a requirement for the contract to submit a tender by the deadline specified in the advertisement. The deadline must have a specified time on a date that is at least 21 days after the first publication of the advertisement.

c.

B.(i)

The selective tendering method, by which the invitations to tender for a proposed contract are made following a public advertisement asking for expressions of interest. a. This method follows the previous guidelines (a, b and c). Every advertisement must include a brief description of the works, goods, facilities, services or private property concerned. The name of the persons to whom requests for information. The deadline for submitting applications. Again the deadline must be a specified time or on a date at least 21 days after the date of publication. Council must consider all applications made in response to such an advertisement. After considering the application, Council may either:i. Send indications in writing to all applicants. ii. Decline to invite tenders from any of the applicants.

b. c.

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 2 of 9

GUIDELINES FOR TENDERING
B.(ii) The selective tendering method by which recognised contractors listed by the Council are invited to tender for a particular proposed contract. In this regard, Council must advertise as per the original proposal. a. b. The experience of the applicants and fulfilling the requirements. Their capacity to undertake similar contracts. Council may again either list the applicants as a recognised contractor, or reject the applications.

In seeking tenders for a proposed contract, the Council may invite some or all the recognised contractors listed. In each of these, Council must consider all applications made in response to such an advertisement and in doing so take into account the experience of the applicants in fulfilling the requirements of, and their capacity to undertake, similar contracts. 4. SHORTER TENDER PERIOD

If Council believed through exceptional circumstances, that tendering must have an inappropriate deadline, then a shorter period below 21 days can be made. However, the earlier deadline must specify the time and date that is at least seven (7) days after:1. 2. The date of the publication. The date of the invitation.

Note: Council must record in its minutes the circumstances requiring an earlier deadline to be specified. 5. EXTENDED TENDER PERIOD

If having specified a deadline for a tender and the General Manager becomes aware of circumstances to show the deadline may not allow enough time for tendering, it can extend the deadline to suit. 6. PREPARATION AND CONSIDERATION OF TENDERS

A tender must be in writing and must be enclosed in a sealed envelope. Note: a tender may be submitted by telex or facsimile, in which case an appropriate person must place a tender in a sealed envelope and Council must provide a secure tender box and ensure all tenders submitted are in a tender box and the tender box kept in a safe, secure place.

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 3 of 9

GUIDELINES FOR TENDERING
PROCEDURE The tender box is positioned on the front counter of the Customer Services Section, Ground Floor, Wollondilly Shire Council. It has “Tender Box” displayed on the front side of the box. 7. OPENING OF TENDERS

At a time specified for the close of tenders, the appropriate person must remove the envelopes containing the tenders and open in the presence of: 1. 2. At least two (2) persons designated by the General Manager; or Sub-tenderers and members of the public that wish to attend the opening.

A member of the public who attends the opening of the tenders for the proposed contract, is entitled on request, to be informed as to whether the Council has received a particular tender and a number of tenders received. But it is not entitled to receive any information about the tenderers. 8. ACCEPTANCE OF TENDERS

As soon as practicable after the tenders for a proposed contract have been opened, the appropriate person: 1. 2. must record the amounts that appear to have been tendered for the contract but do not disclose these amounts to the public or tenderers. must prepare a tender list specifying, in apparent order of those amounts, the names of the tenderers. (Only the names of the tenderers is to be on the list).

Immediately after preparing a tender list, the appropriate person must display the list in a place where it can be readily seen by members of the public. That person may add to the list such information as he or she considers appropriate. PROCEDURE Tender Report Format The proposed format for the tender reporting would include the following major items:1. 2. 3. Identify the allocation of funds for the appropriate item which Council has ratified in the Business Plan. Detail the date the tender was advertised and the tender period. Summarise the tenders with the amount tendered and a precedent list, accepted for consideration, ranked in priority order, with regard to:(i) Plant (a) (b) (c) Company name Make Model

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 4 of 9

GUIDELINES FOR TENDERING
(d) (e) (f) (ii) Cost Changeover cost Remarks

Materials/Service (a) (b) (c) (d) Company name Type of material/service Cost Remarks

4. 5. 9.

Identify the reasons for determining the specification for plant or material/service and discussion of tenders. Recommendation of appropriate tender. VARIATION OF TENDERS

Tenders may be varied in certain circumstances. At any time before a Council accepts any of the tenders that it has received for a proposed contract, a person who has submitted a tender may vary the tender: (a) (b) by providing the Council with further information by way of explanation or clarification; or by correcting a mistake or anomaly in a tender.

The variation of the tender is subject to the variation being made either: (a) (b) at the request of the Council; or with the consent of the Council at the request of the tenderer, but only if, in the circumstances, it appears to the council reasonable to allow the tenderer to provide the information or correct the mistake or anomaly.

If a tender is varied in accordance with this clause, the Council must provide all other tenderers whose tenders have the same or similar characteristics as that tender with the opportunity of varying the tenders in a similar way. A Council must not consider a variation of a tender made under this clause or the variation would substantially alter the original tender. 10. CONSIDERATION OF TENDER

The tenders must be considered as soon as practicable after the tenders are opened. Council must not consider a tender that is not submitted to the Council by the deadline of the closing of the tenders. Council must consider a tender submitted by a telex, facsimile machine or other telegraphic device, but only if it is received before the deadline of the closing of the tenders. If the relevant tender documents issued by Council specified that a tender will not be considered unless formal tender documents are submitted, then a telex, facsimile machine or telegraphic device will not be accepted unless:

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 5 of 9

GUIDELINES FOR TENDERING
1. 2. The tenderer is able to satisfy the Council the formal tender documents were posted or lodged at a post office or recognised delivery agency before the closing date. The Council actually receives these documents within such a period as decided reasonable in the circumstances. Council must also consider a tender received within such a period after the deadline for the closing of tenders if the tenderer satisfies that the tender documents and all other information were posted or lodged at the post office or a recognised delivery agency in sufficient time to enable the documents to have been received by Council.

After considering the tenders submitted for a proposed contract, the Council must either accept the tender which, having regard to all the circumstances, is the most advantageous or decline to accept the tenderers. 11. TENDER NOT ACCEPTED

If Council decides not to accept any of the tenders for a proposed contract, the resolution must: 1. 2. 3. 4. Postpone or cancel the proposal for the contract. Advertise for fresh tenders. Enter into negotiation with any person with a view to entering into a contract, whether or not the person was a tenderer. Carry out requirements of the contract itself.

If Council resolves to enter into negotiations referred to above, the Council resolution must state the reasons for declining to advertise for or invite fresh tenders as referred to as soon as practicable after entering into a contract or deciding not to accept any of the tenders for the proposed contract. 12. NOTIFICATION OF ACCEPTANCE OF SUCCESSFUL TENDERER

Council must send by post to all tenderers whose tenders were not accepted, notices to the effect that their tender was unsuccessful or, as the case may be, none of the tenders for the proposed contract were accepted. PROCEDURE Within fourteen (14) days from the time of Council’s resolution of acceptance or non-acceptance, a letter must be forwarded to each tenderer. Display of Tenders If none o f the tenders were accepted, or if a tender is accepted, a notice to that effect must be displayed in a conspicuous place that is accessible to members of the public. In the case of a tender being accepted, the notice is to indicate the name of the tenderer whose tender was accepted and the amount of the successful tender.

Tenders will be displayed in the front foyer of the Council Chambers within a maximum seven (7) days from the Council resolution for acceptance/non-acceptance.

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 6 of 9

GUIDELINES FOR TENDERING
The required format for display is to be a copy of the resolution of Council for the tender. 13. CONFIDENTIALITY OF TENDERS

Council must take all practicable steps to ensure that: 1. 2. The information contained in the tenders is submitted to the Council. The information contained n a document not related to such tenders is not disclosed to a person without the permission of the tenderer.

This does not apply to disclosure whenever it is necessary or desirable for the conduct of a Council or Committee of Council meeting. 14. SELECTIVE TENDERING

The competitive tendering process should extend to the engagement of Consultants to undertake specialised services for Council. Council currently invites tenders for specialised services with information on the total amount Council has to perform the works. The following is the suggested changes to this practice. 1. 2. An expression of interest for services be called once every three (3) years. Companies submitting an expression of interest to Council be assessed on the basis of: a) b) c) d) e) 3. Qualifications Experience Personnel Relevant projects Financial standing, etc.

A list of suitable consultants for the appropriate fields be established and this list be used as part of a select tender process with consultants tendering on a detailed brief.

The purpose of this format of tendering is to eliminate the need to evaluate the tenders on ability to perform the work on each separate occasion Council advertises tenders. The suggested format is one which is followed by most State Government Departments and larger Councils. PROCEDURE Selective Tendering Format 1. 2. 3. Identify the relevant specialised services which Council may utilise over the next three (3) years. Detail the date the tender was advertised and the tender period. Summarise the tenders in relation to (a) Qualifications

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 7 of 9

GUIDELINES FOR TENDERING
(b) (c) (d) (e) 4. 5. 15. Experience Personnel Relevant projects Financial standing, etc.

Identify the reasons for determining the criteria required for selection. Recommendation of suitable consultants for the appropriate fields. SCHEDULE OF RATES CONTRACTS

Due to the extensive time involved with preparing contract documents for the smaller type works and in order that the contract documents are of a constantly high standard, it is proposed to implement a system of Schedule of Rates Contracts to be called on an annual basis, in order to minimise the lead time in the preparation of tender documents for smaller type works. The contractors having submitted Schedule of Rates for specific works with uniformly prepared tender documents, comparative costings from each of the tenderers can be assessed and the most appropriate tenderer accepted for the proposed works. In the Schedule of Rates Contracts Format the extent of documentation is minimised to Plans, Bill of Quantities and Scope of Works. Such documentation as the General Conditions of Contract, Special Conditions of Contract, General Specifications, Special Specifications, etc are deleted as they are common to the original Schedule of Rates Tender. An additional benefit to this method is an increase in the database for costing purposes in order that estimates may be prepared for works. Schedule of Rates Contract The proposed format for Schedule of Rates reporting would include the following major items: 1. 2. 3. 4. 5. 16. Identify the total individual work components to be undertaken during the next twelve (12) months. Detail the date the tender was advertised and the tender period. Summarise the tenders in relation to the item of works and list the contractors in order of minimum cost. Identify the reasons for deferring the criteria required for selection. Recommendation of suitable consultants for the appropriate item of works. CODE OF PRACTICE

The Council must ensure that reasonable investigations and planning have taken place so the project can be clearly defined for preparation of tender documents. The Tenderer should thoroughly familiarise themselves with the document and the site upon which the project is to be constructed. Councils require a demonstrated commitment to: • Achieving industry best practice in relation to:

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 8 of 9

GUIDELINES FOR TENDERING
− − − − • • − − • • • • • • staffing levels timely completion value for money quality of product Occupational Health and Safety Minimising the disruption of inclement weather through: the adoption of a reasonable approach to the interpretation of the award definition of inclement weather which allows work to proceed wherever possible, subject to health and safety considerations. the efficient management of the work such as redevelopment of staff to unaffected areas. Co-operation with Councils and County Councils in the administration of contracts to enable those bodies to fulfil their contractual obligations. Ensuring that overruns are mitigated by co-operative efforts to solve problems so that they do not develop into claims or disputes. Ensuring the timely progress of contractual claims. Ensuring an appropriate level of competence in staff appointed to administer contracts. Responding promptly to reasonable requests for advice and information. Ensuring that a non-adversarial approach to dispute resolution is adopted and that litigation is reserved as a last resort.

17.

REQUIREMENTS ON THE PART OF COUNCIL

The Government requires Council to have a commitment to: • Co-operating with contractors, consultants and suppliers in the administration of the contract to enable the contractors, consultant or supplier to fulfil their contractual obligations. Dealing with contractual claims in a timely manner. Ensuring an appropriate level of competence in staff appointed to administer contracts Protecting commercial-in-confidence information. Responding promptly to reasonable requests for advice and information. Compliance with the NSW Government Code of Tendering for the Construction Industry. Ensuring that a non-adversarial approach to dispute resolution is adopted and that litigation is reserved as a last resort.

• • • • • •

Date first Adopted by Council: 26 February 2001 Most recent adoption by Council: 21 March 2005

Due for next review: May ’07

Page No 9 of 9


				
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