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Recorded: 16 September 2021
The tendering process is a critical step to ensure the commercial and quality outcomes of a construction project meet your aims.
It is imperative to know where the risks lie when selecting the right builder for the job.
The Urban Developer proudly presents a practical guide to the essential construction, legal and commercial considerations to successfully tendering a construction project.
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COURSE OUTLINE
1. THE TENDER ENVIRONMENT
The current tender environment
- National outlook
- State-by-state outlook
- Outlook for the sector
Understanding the market
- The construction cycle
- A review of construction costs for the previous year
- Forecast escalation for the year ahead
Other strategic considerations
Speaker: Matthew Hemming—Partner, Mitchell Brandtman
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2. DRAWING AND DOCUMENTATION
Documentation required for a tender
- Demolition contracts
- Early works contracts
- Construct only
Early contractor involvement (ECI)
- Considering constructibility issues upfront
- Ideas on other methods of construction
How to risk profile a project
- Complexity of project types
- Considering risk v potential reward
Market cycle indicators
- Timing
- Tendering v negotiating
Speaker: Paul David—Head of New Business, Hutchinson Builders
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3. THE TENDER PROCESS
Selecting the right builder
- Cultural alignment
- Relevant experience
- Key personnel
- Financial health
- EBA v non-EBA builders
Obtaining the best commercial outcome
- Lump sum (fixed) price
- Guaranteed maximum price
- Cost plus / open book
- Lowest price v value for money
Tendering options available
- Early contractor involvement (ECI)
- Single stage competitive tender
- Two stage competitive tender
- Value management opportunities
- Conforming v non-conforming tenders
Other commercial considerations
- Share of savings mechanism
- Early completion bonuses
- Separable portions and staged handovers
- Client nominated suppliers and contractors
Speaker: Rob Clarke—Director, Point Polaris
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4. THE CONTRACTUAL PROCESS
Contract types
- Consultancy agreements
- Demolition contracts
- Early works contracts
- Construct only
- Design and construct
- Management contracts
- Operation and maintenance
- Facilities management
Contract and negotiation strategies
- Get your risk profile right for the project
- Separate legal and commercial wants and needs
- Consider any contract departures in general contract conditions
- Amendments
- Special contract conditions
- Responsibility matrix
Understanding who accept what risks
- Programme delays
- Cost overruns: delay damages and liquidated damages
- Authority delays
- Latent conditions (unforeseen issues)
- Defects and warranties
- Design errors, omissions and discrepancies
- Legislative changes
- COVID-19 impacts
- Industrial action
- Client (design) changes
- Third parties
- Mitigation of risks
Speaker: Jennie Baker—Special Counsel, McCullough Robertson
The presentations will be followed by an interactive Q&A moderated by Adam Di Marco, founder and CEO of The Urban Developer.
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Disclaimer
The Urban Developer cannot accept any liability or responsibility for loss occurring as a result of anyone acting or refraining from acting in reliance on any material contained in this presentation.