Procurement Notes
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Different organizations have different objectives when seeking a construction project. E.g.,
Ministry of Education, NZTA and Ryman Healthcare will all have different objectives.
There is no co-relation between cost and quality in construction.
What drives the client?
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Functionality (Fit for Purpose), Profit, Necessity, sustainability, practicality, location,
Resilience, survivability (can it withstand a seismic event) , security (prisons)
Reputational risk is a major driver in the public sector, i.e., Local Authorities and Councils are
not too concerned about cost – they are more concerned about how this is reported in the
press.
Tendering Terminology
General Conditions of Contract
published conditions of the contract
Contract Period
Fixed Price Contract
Price on the job is fixed for a determined scope
of work. A variation on the scope of work
Tag
an exclusion, not included in the contract price.
Schedule of Quantities
List of items for which you would be expected
price
An estimate figure provided where not enough
information provided. It covers a covers work
that may need to be completed
An item that will be needed in the build, but it
is not confirmed yet what the item is, excluding
labor which does not change
Provisional Sum
P C Sum (Prime Cost Sum)
Steps in Tendering
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GETS ( New Zealand Government Electronic Tenders Service) – Published tenders by different
GOVT organizations.
Tender Link – contractors subscribe to gain access
Personal Contacts
Personal Reputation
List of building consents issued – you can contact the Architect who can confirm if a builder
has been assigned or if the job is going out for tendering
Networking Groups
When assessing the bid, it is not the company that’s reviewed but the bid itself.
Estimates
-The estimator must calculate rate + quantity to justify their estimate.
Procurement Bundles
Tender rules:
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Submission date
Submission - how to submit tender (drop box)
Assessment criteria – how many stages for submission and how do they decide who wins the
contract.
Contact
Conditions – what information to include with the tender
Document checklist
NTT (Notice to Tender) - changes.
Contract
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Instead of listing conditions, a statement can be put in to say the conditions of NZS3910 are
imposed and add special details such as company name etc.
 Special conditions
Works Information
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Specifications
Drawings
Programme
S.O.P – Schedule of Prices
Geotechnical report
NOVATION Information - Nominated sub-contractors.
Building constant – conditions of consent, surveyor certificate
Resource Consent conditions (runoff , soil erosion etc)
Engineers Report
Health and Safety Plan