Towards Agreed Expectations - Department of Treasury and Finance

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Figure 2: The project delivery cycle involving a typical D&C contract with effectivecollaboration 62.4 Objectives of a buyer and a supplierThrough each of the project delivery phases, the buyer and supplier have, at times, differingobjectives which must be considered in understanding likely problems and defining possiblesolutions. The primary objectives of the buyer and supplier through each project delivery phase ofthe D&C model are shown in Table 2 (see also Table 4, section 5.3 for further elaboration duringthe tender phase):6Note that the Tender Phase can include a prequalification process in some jurisdictions14
Table 2: Primary Objectives of the Buyer and Supplier during the Project CyclePhase Buyer SupplierInceptionPlanningTenderPhaseDeliveryOperate andMaintainIdentify resource and non resource solutions tomeet the specific Service NeedDevelop the design for the capital assetsolution, including development of the Scope /Performance SpecificationDevelop the budget to deliver the solutionAgree the preferred delivery / procurementstrategy to match the risk profile of the solutionand buyer’s appetiteProduce and gain endorsement of the BusinessCaseProduce EOI and RFT documents that clearlyarticulate and define the purpose of the projectwithin the context of the Service Need. Enablebetter understanding of the project by suppliersto maximise the number of bids that arecompliant and thereby provide for bettercompetitionDevelop and implement a selection evaluationprocess so that a contract is awarded thatprovides certainty of outcome (in meeting theService Need) at best value for money from themarketIdentify a preferred supplier that will providegreatest likelihood of the Business Caseobjectives being delivered at acceptable cost,time, risk, etc.Enhance reputation by demonstrating ability torun a professional procurement process thatmeets all probity requirementsCapital project delivered to or below budgetCapital project delivered early or on timeCapital project delivered to prescribed quality(including safety, environment and communityoutcomes) so that Scope Statement /Performance Specification metRelationships with the market and stakeholdersare enhanced, trust is built and supplierenhances reputation by doing what it said itwould doObjectives set out in the business case metAchieve the Service NeedN/AEnhance project understandingincluding project drivers andconstraintsUnderstand and influence deliverystrategyProduce a winning bid strategyIdentify and develop relationships,including the client, possible vendors,possible partners (contractors,designers, etc)Understand the purpose of the capitalproject and it’s fit into the Service NeedcontextProduce the ‘winning offer’ thatprovides value to the client, whilstdelivering acceptable margin, risk andcontract terms and conditionsoutcomesMinimise tender/bid costsProduce a clear delivery strategywhich maximises opportunity andminimises risk post awardEngage and influence key decisionmakers / stakeholdersMaximise profitDeliver project to prescribed quality(including safety, environment andcommunity outcomes) so that ScopeStatement / Performance SpecificationmetCapitalise on opportunities andmitigate risksEnhance reputation with supplier andwithin the market (increase potentialfor repeat business)Enhanced relationships with supplierand stakeholders (including othersuppliers)Meet warranty obligations15
Page 1 and 2: Department ofTreasury and FinanceTo
Page 3 and 4: Table of ContentsEXECUTIVE SUMMARY
Page 7 and 8: 1. IntroductionThis chapter sets ou
Page 9 and 10: Figure 1: The scope of this investi
Page 11 and 12: 2. Procurement models in contextThi
Page 13: At contract award, these different
Page 17 and 18: scope changes due to client request
Page 19 and 20: 3. Effective collaboration - unders
Page 21 and 22: Foundation success factors3 It is o
Page 23 and 24: Foundation success factors8 The cli
Page 25 and 26: Figure 4: Setting the context for a
Page 27 and 28: Figure 5: Different levels of defin
Page 29 and 30: 4.8 Project Risks vs “Poor Planni
Page 31 and 32: and work together as a team to buil
Page 33 and 34: In a D&C tender process, collaborat
Page 35 and 36: 5.6 The appropriate application of
Page 37 and 38: 6. Collaboration optionsThis Chapte
Page 39 and 40: misunderstandings by tenderers abou
Page 41 and 42: Once the collaboration sessions wit
Page 43 and 44: Whilst the client will need to resp
Page 45 and 46: 8.3 Ground rules for Collaboration
Page 47 and 48: The client should also consider whe
Page 49 and 50: CostSimilarly, the D&C contracts is
Page 51 and 52: NSW AECOM MeetingBaulderstoneBHP Bi
Page 53 and 54: Appendix C:Examples of traditionalm
Page 55 and 56: Schedule of Rates (a “Construct O
Page 57 and 58: Appendix D:Case Study - SydneyWater
Page 59 and 60: ContentsEXECUTIVE SUMMARY 51. INTRO
Page 61 and 62: 1. Sydney’s Desalination ProjectT
Page 63 and 64: performance requirements for safety
Page 65 and 66:
In Sydney Water’s experience of c
Page 68 and 69:
Appendix 2: Tender process and sche
Page 70 and 71:
Sydney Water recorded the decisions
Page 72 and 73:
Request For Tender - Evaluation Cri
Page 74 and 75:
Stage 4 - Mandatory Criteria Review
Page 76 and 77:
TABLE 1.2..1 TENDER EVALUATION SCOR
Page 78 and 79:
Issue clarification question if req
Page 80:
Appendix 6: Independent Verifier (I
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Towards Agreed Expectations - Department of Treasury and Finance

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