Project Assignment: Complete Plan For Preparing A Tender Of 4 Story Shopping Mall

Question

Task: You should use AS 4120-1994 as the basis of developing a tender request as the principal for a project in the mining, plant and/or large asset industry. The project may be one of your choosing based on your current work practice or may be one selected from a set of possible projects on the Moodle web site. You must ensure that your tender document is consistent with all of the Australian standards referred to in this course.
Should you wish to use a tender template from the organisation you work for then you may do so. However, you must ensure that all of the ten items in the task definition below are included in your tender.
You must obtain the agreement from your lecturer and course coordinator that the subject project scope of your tender is suitable for this course.
Your task is to consider the contents of the course and apply it to a tender request. Your tender must do the following:
1. Define the project in the context of mining, plant, or a large asset;
2. Explain the project justification and contract process;
3. Explain the financing of the project;
4. Identify the project conditions, project team and project processes required;
5. Provide your expected estimates to the tenderer for the project labour, plant, materials, and sub-contractors;
6. Provide your requirements for project changes;
7. Provide your requirements for quality assurance and quality control;
8. Provide your requirements for document management, reporting and governance;
9. Provide your requirements for disputes, arbitration and mediation;
10. Provide your requirements for safety.

The primary purpose of this assessment item is to help you to develop skills for expressing the manner in which a principal normally engages with contractors through a tendering process.
The secondary purpose of this assignment is to give you the opportunity to enhance your analysis, critical thinking and written communication skills; particularly in the areas of argument development and tender writing
Your tender should be as much as practically possible a properly constructed tender
However, you must also apply the rigours of an academic essay. Therefore, you must include references within your tender and a reference list formatted in the prescribed Harvard style is compulsory at the end of your tender. Do not include a bibliography. You are strongly encouraged to discuss your ideas with your business and student colleagues on the course discussion forum, before drawing your conclusions and submitting your assignment

Answer

Reflection of AS 4120-1994
1.1 Definitions made: This project within this project assignment will comprise of some typical words which are defined as:

• Client: party finalizing the tender or subcontractor or contractor
• Tenderer: party which will submit the tender
• Contract: will include all the terms and conditions relevant to the tender

1.2 Statement of Ethics: The tender will include some standard of ethics which will be taken into consideration while completion of the project (Boone et al. 2018). Some ethical statements are:

• All the legal obligations will be confirmed to both the parties
• Every activity will be performed with honesty
• Each intellectual property and related details will be clarified in the beginning
• No indirect advantage from the tender will be made
• each requirement of the project will be mentioned in the tender

1.3 Tendering procedures covered, including:-
1.3.1 Obligations of the principal:-
1.3.1.1 Project definition: The project explored in this project assignment will comprise of a 4 story shopping wall. It will get completed with the help of a project manager who will prepare the complete plan for the project. He will focus on every minute detail related to finance, contract details and project completion requirements. It will be an agreement between the two parties namely, Arid construction and the client (Carrillo-de-la-Peña et al. 2015). The project manager which includes all the deliverables required for the construction to be completed in the tender and the client will finalize the whole project. The project manager will define the budget and other stakeholders will help him to decide it. Moreover, the project manager will also clarify the use of resources to the client. In addition to it, the project will get completed by 2022 and it will need approximately $2 million.

1.3.1.2 Tender documents: There are dome documents which have been generated in regards to the requirements of the project and hence include various vital information such as:

• All the details related to the working of the staff and experts such as period, etc.
• detailed and explicit conditions of the tender to be met
• period of the tender to be completed within by the sponsor
• budget allocated to the complete project

1.3.1.3 Selecting tenders: The project explored in this project assignment on large assets which comprises of 4 storey shopping mall will be completed by Arid constructions. It will be done with the help of 50 skilled and talented employees and a team of 10 members comprising of all required managers and other experts who will provide their full efforts to complete the project. All the relevant information will be included in written form and all the sheets will be attached in the file which will be known as tender of the project.

1.3.1.4 Call for tenders: This project will be completed by coordinating various activities and tasks. Moreover, it will also comprise of crucial details such as starting of the tender, closing of the tender, name, address, contact details of the client, and other related information related to the workers who will provide their efforts to complete the tender by the time. It will also include other details such as financial distribution, a period for tasks, etc., the requirement of staff for each task and the estimated delay time if any.

1.3.1.5 Tendering methods: Various methods can help in the completion of this project by the time and thus requires an appropriate method to be selected. These methods include traditional, design and construct, management, patch type (maintenance and service), relationship and finance, etc. The Arid construction will focus on using these methods for designing, constructing, managing, maintaining and financing the construction of the shopping mall (Sokolov et al. 2019). By integrating these methods with the negotiated tendering method, this project will be completed on time.

1.3.1.6 Tendering inquiries: All the information about the tender will be provided to the client who will comprise of:

• There will be minute meeting and the timings will be forwarded to all the tenderers and it will also be a part of the documentation
• The client will be notified about all the inquiries, timings, dates, issues, etc.
• Information provided to one tenderer will also be provided to all other tenderers.
• If there will be a need to amend any error or omission in the tender documents, the issue will be resolved in the written form

1.3.1.7 Amendments to tender documents: When it comes to making amendments in the documents mentioned in this project assignment, the client will focus on:

• Avoiding such kinds of amendments
• Delay the call for tenders instead of issuing such documents which have not been checked properly
• Making the required changes in the documents in the tender period and will be forward to all tenderers
• All the tenderers will be provided with sufficient time to go through the amendments
• To make amendments with the consent of each tenderer
• To make the project manager finalize the amendments in the contract

1.3.1.8 Receipt of tenders: When the tenderers will get the receipt of tender, they will make sure to:

• Check the security and confidentiality of the tender
• Receive the tender in a secure tender box and will be opened in presence of minimum three experts
• Include key information in summarized form
• Send one copy of the tender to each tenderer
• Go through the tender and understand it's every term and condition
• Suggest any changes or omission in the documents, if any
• Provide content for editing the wrong terminology or any incorrect statement

1.3.1.9 Closing of tenders: There will be some priorities mentioned in this project assignment related to closing of tender such as:

• Not to stop the work before 5 pm
• Not to close the work on Monday or day following any holiday
• One week off during Christmas
• Must be completed by the set deadline
• Any delay in the task will result in a delay in the project
• No delay will be entertained in case no issues happened in between
• Only 30 days delay will be entertained in case any issue occurs by default

1.3.1.10 evaluation of tenders: The evaluation of the tender will be done by creating a tender analysis on behalf of the information available. This analysis of project assignment will help in making all the required clarifications and thus after this, the tender will be selected on behalf of each detail if satisfied. Evaluation of bidding price and all related factors will provide a detailed description of the terms and conditions of the project (Wervers et al. 2016). Moreover, it will also provide guidelines to the tenderers about the completion of the task and their duties.

1.3.1.11 negotiation and selection
The tenderers will be made to decide and negotiate some statements such as:

• The price at which they will get the service from the contractors
• Risk allocation, warranty, bonds, bidding procedure, and tender details
• The number of tenderers that will be involved in the project
• Contractors and subcontractors involved in the project
• Hiring the additional staff if required
• Selection of the design, plan, drawings, location and other related things to shopping mall
• Terms and conditions to be involved in the contract

1.3.2 Obligations of the tenderers:-
1.3.2.1 Genuine belief
There will be some genuine beliefs as mentioned in this project assignment before starting the project that will include:

• scope of the project has been made clear
• relevant investigations about the project have been made
• a cost estimate has been made
• risk allocation has been done
• a time estimation has been done
• appropriate budget required for the project has been allocated
• time allotted for the project is sufficient

1.3.2.2 Return of documents
After completion of all the documents of the tender, one copy will be sent to each of the tenderers in the tender box and it will be made sure that each tenderer will go through the details thoroughly (Wolfe et al. 2016). Both the copies will comprise of all relevant data and information and will be attached with appropriate documents. The tenderers will be made to sign the documents after going through them and will return them within three working days back to the project manager.

1.3.2.3 Evaluation of tender documents within this project assignment
Each tenderer will ensure that:

• tender documentation has been done with the help of an appropriate method
• all details have been included in the tender documents
• documents have been prepared in a clear and concise manner
• Copies of terms of the tender, standards, procedures, etc. will be duly attached
• Understanding each term and condition clearly
• Making suggestions regarding editing and omission of the statement of terms
• Signing each document after reading each word and understanding it

1.3.2.4 Formulation of tender and estimates concerning:-
1.3.2.4.1 Project labor
The project explored in this project assignment will help in generating employment opportunities for surrounding people. It will include almost 800+ workers and will help the Australian employees to get employment until 2022 (Wolfe et al. 2016). 

1.3.2.4.2 Project plant
The shopping mall will be situated in the center of the city which will take around 10 minutes to reach there as it is approximation 8 km away from the railway station. 

1.3.2.4.3 Project materials
The material which will require being included in the project to construct the shopping mall will be cement, sand, iron, steel, bricks, water, power, wooden logs and other required materials which will help in the completion of the project (Rukmana and Muslim, 2017).

1.3.2.4.4 Project sub-contractors
Along with project manager, there will be some other contractors which will comprise of owner, constructor, designer, sponsor, client, engineers, workers, team members, and other managers.

1.3.2.5 Submission of tenders
Each tenderer will be made to submit the acknowledgment tan declaration of receiving the copy of the tender and accepting all the statements, procedures, guidelines and terms and conditions by signing the acknowledgment attached to it on its cover page within three working days of the business (Spence, 2017). The tenderer will submit the tender in the tender box sent to them and will submit it only after having signed all the documents and reading them carefully. Any false claim made by them will be entertained and they will be made to pay high compensation for it.

1.4 Confidentiality
In regards to confidentiality, the tenderers will make sure that they will not disclose any information to the third parties until mentioned in the tender terms and conditions such as bid prices, time, budget, cost, etc (Chen et al. 2016). Moreover, it will not contain anything that will constrain the tenderers. The tenderers will be free to discuss the things related to the tender with financial and technical advisors, partners and subcontractors. The things which can make the tender fail at any point will not be revealed at any cost. If so done by any tenderer, then he will be liable to pay the compensation of the whole project and will be terminated from the contract.

2. Financing justification and financial arrangements of the project by the principal, including:-
2.1 Source of funds, i.e. capital funds or operational expenses
The project explored in this project assignment will require almost $2 million and the funds required for operational expenses will be $50000 taken in advance from the sponsor. Further payments will be made from time to time as per the contract. The contractor will be paid after completion of one-tenth of the work with the certificate of completion of work. If the amount of the work done in less than the advance payment made, then no payment will be initiated (Pirnay et al. 2015).

2.2 Project selection criteria
Both the inflow and outflow related to the project will be considered in advance. It will give an approximate idea of the profit that the managers will avail after the completion of the shopping mall. It will also help the managers to make a rough idea about the values of the project such as payback period, return on investment, etc. The tenderers will be made to select the terms and conditions after discussing in the regular meetings and presenting their full consent.

3. Contractual terms, including:-
3.1 Nature of contract
The contract will comprise of an agreement made between both the parties, namely, the contractor and the client. It will be based on the consent of both parties which will be further supported by lawful objectives. The contract will thus include subject matter related to the tender, consent of the parties, all the related terms and conditions and guidelines for tenderer (Dalk?r, 2015).

3.2 Service of notices
It is discussed in this project assignment that each notice related to any terms, condition, guideline, amendment, suggestion, delay, payment or issue will be provided to both the parties in the written form (Martins et al. 2017). No notice will be entertained verbally and needs to be provided within the 10 days of the consent made by another party. A notice would be duly signed by the authorized department and only then it will come into existence.

3.3 Assignment and subcontracting
All the subcontractors related to the project will be made to sign a contract that will ensure their subcontracting. They will be provided with an assignment comprising all terms and conditions related to their terms of contracting.

3.4 Statutory requirements
All the legal formalities will be tried to be completed prior to the tender. There will be no scope for the legal formalities to create constraint in the project (Gordon et al. 2017).

3.5 Examination and testing
The tenderers will go through the documents and the tender and will make sure that all the specifications are as per decided and will conform to it. Moreover, they will also relieve a testing report along with the acknowledgement. After receiving each document duly signed by the subcontractors, the authorized committee will check their reliability and examine each document carefully. 

3.6 Progress and programming of the works
The work under progress will be free to be inspected and supervised by the authority at any time during working hours. It is mentioned in this project assignment that any issues found in the work done related to material or design will not be entertained and the authority will have the power to stop the work on the spot.

3.7 Suspension of the works
If in any case, there occurs a suspension in work or delay in progress, the engineer in charge will be made to safeguard the project completed till now. It must not cause any danger or harm to the work already done and will ensure the project manager to safeguard and properly protect it up to the extent possible. If the suspension of the work will occur due to default on part of the contractor or due to any other reason for the proper execution of the work, then the additional time of 25% of the time required to complete the task will be provided. But this time will not be more than 30 days in any case (Piancastelli et al. 2017).

3.8 Delay or disruption costs
The work can only be delayed due to abnormal weather conditions, strike, lockout, delay in the part of any contractor, non-availability of resources, etc. On happening of any such event the contractor must be required to inform at once in the form of written notice and he will be given an extended period of 30 days but in case of any other reason, no claim of damage of any kind or not informing on time, the contractor will be levied with high compensation that will include deduction of $1000 per day. 

3.9 Defects liability
All the work done in the period of execution must be free to inspect and supervise any time. If the legalized authority finds any defect in the work, any material to be lacked in the quality, any work to be unsound, imperfect or not accordance to the contract, quality of material to be inferior or any other issue, then the contractor shall be demand to provide in written that the work will be done again, the material will be changed completely, and provide other suitable material in place of it (Ekmekci and Kos, 2016). Moreover, it is mentioned in this project assignment that no extra time for the work will be provided and the contractor will be liable to make the need satisfied in the deadline decided.

3.10 Variations
After submission of the tender, if there will be many variations in the price of resources or materials, then the amount of the contract will also be varied accordingly. But the variations will be entertained for a specified period. Moreover, the contractor would be required to submit a notice in 10 days to the variations occurrence. The increase in prices of deliverables ascertained by the contractor will be cross-checked by the price indices issued by the ministry of commerce and industry. If all the information will be found correct, then pro-rata changes will be made in the tender.

3.11 Certificates and payments
The contractor will not be made any payment until it completes its one-tenth works. After the completion of one-tenth works or more, the certificate of completion will be provided and the payment regarding the one-tenth work will be made (Kashyap and Murtha, 2017). It will be done after the submission of all relevant bills and amount receipts. Such records will be presented to the finance manager and the triplicate will be provided to the contractor to keep it as proof for the future. No payments will be made if the advance amount exceeds the work done amount.

3.12 Default or insolvency
If the contractor commits any default relating to labor laws, health priorities, rules related to sanitary requirements, or any other provision, or found to breach any rule or regulation, then he will be made to pay $500 per default. Moreover, for any incorrect statement furnished, made, submitted, filed or breached, he will be made to pay $300 per statement. If the defaults will be more than 5 per month, then the penalty will be enhanced to $800 while if the statements will be found more than 10 then the penalty will be enhanced to $500. The final decision will lie to the project manager.

3.13 Termination
If any subcontractor or worker or any other member related to the contract will find to be involved in the wrong activity or seem to be dangerous or harmful for the project, he will be terminated from the project without any prior notice. All the details related to the termination of any subcontractor for each activity will be included in the contract and no amendments will be made to it if suggested by any subcontractor (May, 2015). 

3.14 Claims
If the contractor finds any issue as mentioned in this project assignment on behalf of the client, he can claim for additional working days or amendments in the contract while if a client finds any issue on the contractor's behalf, he can claim for compensation or penalty as per the condition. Claims will be made as per the penalty decision and the delay in work will also be entertained only if the default will be made by the client. The expansion in the period of more than 30 days will be given only in exceptional cases.

3.15 Dispute resolution and arbitration
If there occurs any dispute related to the work demanded, lack of specifications, dispute over design, instructions, drawings, quality of material, claim, right, thing, matter or any other thing, the same conditions will be followed as per contract. The engineer in charge will be provided 15 days to resolve the matter. If not so, the dispute will be forwarded to the dispute redressal committee, who will finalize the decision in 15 days (Oh and Baek, 2015). The committee will be provided with a list of disputes and it will decide the claim amount if any or any changes need to be made in the work done. The total amount of the claim will not exceed the amount of $20000.

4. Quality assurance and control requirements discussed in this project assignment, including:-
4.1 Customer quality focus
The contractor will focus on providing good quality service and will complete each task as per orders. He will not work just to complete the task as quality will be the priority in each task. Each work will be done by him focusing on ultimate customers. Each activity will be performed by keeping the customers in mind and strict specifications will be made in the project for the benefit of the customers. Customers will be given top priority when the rules and regulations for stakeholders will be generated.

4.2 Quality leadership
The leader, product manager, will make the contractor and the client follow each term and condition. The project manager will show his leadership quality at each stage and will try to resolve each issue on his own. As this project is very complex, thus the autocratic style of leadership will be followed to make it a success (Offenberg and Pirinsky, 2015). Leader will control all the activities and will play a crucial role in resolving disputes over time. Leaders will be given the ultimate authority to resolve the issues by talking only. The dispute will forward to the redressal committee only if the leader will not be able to solve it.

4.3 Involvement of people
Surrounded people and other stakeholders such as customers, government, suppliers, etc. will try to be involved in the project to make the project a success. This project will have an effect on every stakeholder and each stakeholder gets numerous benefits from this project, hence they will be involved directly or indirectly in this project. All stakeholders will be given due priority to maximize the profit and rules and regulations related to each person will be included in the contract strictly.

4.4 Process approach
The staff will try to integrate each process with others. All the processes such as the design process, planning process, development process, innovation process, monitoring process, etc. will be completed with all efforts and will have a direct and indirect effect on each other (Khalid et al. 2017). This approach will be used by the consent of each subcontractor only. Each process will be followed step by step and no process will take more than one month to get completed.

4.5 Systems approach
The contractor will use the system approach in the completion of the whole project. As this project is a lengthy and complex task, thus system approach will help in a division of activities into simpler ones and staff will get a better understanding of its complexity. Tasks will be divided among workers on behalf of their ability and capabilities to do work. Unskilled workers or staff will not be included in any technical or skill require task. Such kind of workers will be allocated with minimum possible tasks.

4.6 Continuous improvement
Supervising and inspecting the process of the work will provide improvement in the project. As this will keep the workers to provide full efforts to their work, thus no objection will be created on regular inspection by the authority during working hours. It will be done by keeping a review report on the performance of each employee (Martins et al. 2016). All required measurements will be included in the contract to keep a check on the performance of the project.

4.7 Mutual benefit
This project explored within the project assignment will get completed by the consent of both parties and will benefit both of them. Only those activities will get included in the tender who will result in mutual benefit. Those activities which will benefit only one party will not get entered into the contract (Ma et al. 2019). All the terms and conditions will be generated after concerning both the parties and no condition will come into existence until accepted by each party. Moreover, the agreement mentioned in this project assignment will be signed by both parties in the presence of each other and all the requirements of one party will be fulfilled by another party as much as possible. 

5. Safety requirements, including:-
5.1 Safety management review
A regular review of the work will be made by the inspection committee to ensure a reduction in risks and check out overall trends. Priority system will be followed in compliance with security systems to manage the security of the workers and staff as well as specifications of the project. It will be done by adding special safety measurements into the contract a special agreement to be signed in case any risk or loss to life or information or emotions occurs in the future (Lai, 2017).

5.2 Safety measurement and evaluation
KPI, also known as key performance indicators will be used to check the performance of the contractor and its team. Moreover, the same tool will be used to keep an eye on safety measurement. Regular inspection and review reports will provide an evaluation of the proper safety measured followed during working hours. All possible safety measurements will be included in the project as workers must have a safe environment to provide their full efforts and potential into work.

5.3 Safety implementation
Workplace safety measurement will include proper planning and training for staff otherwise only trained staff will be taken into consideration to complete the project (Laulund et al. 2017). Moreover, each member involved in the project will be held responsible in case of failure of the project. Thus all safety norms and regulations will be included in the contract and each stakeholder will be attempted to follow them.

5.4 Safety planning
Appropriate plans will be formulated to reduce the chances of risks associated with the project. Developed safety plans will be introduced in the tender and consent of each tenderer will be gained over them. These safety plans will be related to the safety of workers, building, plan, notices, information, confidential data, tender details, etc. This will include:

• Establishment of a safe and healthy environment for workers
• Comply with OHS policy requirements
• Responsibility of each person to maintain a safe environment
• Cooperation between management and employees
• Focus on effective communication and leadership

5.5 OHS policy
An OHS policy mentioned in this project assignment will be integrated into the contract which will define the objectives, vision, and mission of the project. This will provide a complete idea about the project to each stakeholder and thus will help inappropriate planning and focus on the safety of these goals. This policy will specify the nature, scale, and hazards of the project and thus it will be in the written form to eradicate any chances of issues in the future (Zhou et al. 2016).

References

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