Project Management Procedures SECTION 3 PROCUREMENT

Property & Campus Services Project Management Procedures SECTION 3 PROCUREMENT Maintainer: pcs-project-office@unimelb.edu.au Page: 1 of 8

3.1 TABLE OF CONTENTS 3.2 INTRODUCTION...3 3.3 SELECTION OF TENDERERS...3 3.4 CONTRACT DOCUMENTS...3 3.5 RETENTION...4 3.6 TENDERS FOR SERVICES AND OTHER SPECIALIST TRADES...4 3.7 TENDER RECEIPT...5 3.8 TENDER EVALUATION AND RECOMMENDATION...5 3.9 INDUCTION OF CONTRACTORS...5 3.10 PREAWARD MINUTES...6 3.11 SAFE WORK METHOD STATEMENTS (SWMS)...6 3.12 PROJECT APPROVAL...6 3.13 BUILDING WORKS COMMENCEMENT NOTIFICATION...6 3.14 BUILDING PERMIT...6 3.15 EH&S ASSESSMENT...7 RELATED DOCUMENTS...8 RESPONSIBLE OFFICER... Error! Bookmark not defined. IMPLEMENTATION OFFICER... Error! Bookmark not defined. REVIEW... Error! Bookmark not defined. VERSION HISTORY... Error! Bookmark not defined. POLICY LIBRARY REQUIREMENTS... Error! Bookmark not defined. Maintainer: pcs-project-office@unimelb.edu.au Page: 2 of 8

3.2 INTRODUCTION The Project Manager is responsible for: Procurement of the works by whatever delivery method is selected, meets the University s requirements as detailed in University s Building Tendering and Purchasing Policy UOM0385 Compliance with the University s Tendering Guidelines for calling and reviewing tenders for all contracts required to deliver projects. Co-ordinating the various resources to complete the project within specified constraints of time, cost and quality and becomes the single point of contact for the client during the course of the project. Maintaining hard copy and electronic files for all projects in up-to-date condition in the format prescribed by the Director, Project Delivery. Progressively entering all relevant information into the Property & Campus Services (PCS) Project Reporting Database. 3.3 SELECTION OF TENDERERS On all projects, the Project Manager shall ensure that a list of tenderers is prepared, in conjunction with the Design Team, for approval by the Construction Manager (refer to Tender Report). Contractors shall be selected to tender for a specific project on the basis of the following criteria:- Previous experience in similar projects Experience working for the University of Melbourne Technical capacity Financial capacity Quality Assurance Time performance Environment, Health and Safety Human resources management Skill formation Price The selection of Contractors to tender shall be made from the Property & Campus Services Contractor Panel for the appropriate category. If it is proposed to invite a Contractor to tender who is not on the Contractor Panel, the Construction Manager may give interim approval whilst the Contractor becomes registered with Property & Campus Services. The Construction Manager shall maintain a list of tenderers, and shall ensure that an appropriate number and range of tenderers are sought for all projects. Procurement Guidelines are to be followed unless otherwise approved by the Construction Manager. Where the guidelines are not followed, reasons must be stated on the Tender Report. 3.4 CONTRACT DOCUMENTS General Conditions of Contract will depend on the project value (refer to Procurement Guidelines), and will be nominated by the Project Manager in consultation with the Design Team and approved by the Construction Manager. The following templates are provided to assist: Maintainer: pcs-project-office@unimelb.edu.au Page: 3 of 8

Letter of Acceptance - Consultancy Services Letter of Acceptance - Trade Contractor Minor Works Contract The Procedure for Contracts details the procedure for preparation and signing of formal contracts related to building works. The General Conditions of Contract for formal contracts will be nominated by the Design Team and approved by the Construction Manager. Reference shall be made in the Contract Documents to the following standard University Documents: Special Conditions of Contract Requirements for Working in University of Melbourne Sites 3.5 RETENTION The University s requirements for retention sums, whether cash, bank guarantee as detailed in Procedure for Contracts. 3.6 TENDERS FOR SERVICES AND OTHER SPECIALIST TRADES For building contracts two alternative tendering methods are acceptable. The decision as to which method is adopted shall be made by the Design Team. ALTERNATIVE 1 SUBCONTRACTORS PROPOSED BY TENDERERS Tenderers will be required to propose Subcontractors with the appropriate skills, experience and capacity to deliver the Services and Specialist Trades in accordance with the detailed and coordinated Tender Documents prepared by the Design Team. This Alternative 1 requires that the Design Consultants are very diligent in completing their design and documentation work so as to avoid the need for variations during the Contract. The Contractor will be fully responsible for the performance of the Subcontractors under this Alternative 1. Alternative 2 SUBCONTRACTORS PROPOSED BY UNIVERSITY A list of approved trade contractors shall be included in the tender documents and the Builder must select from the list for his tender to conform. The services and specialist trades shall be a subcontractor to the builder. An example of the appropriate clause to be included in the tender documents is: The following is a list of approved trade contractors for <<Mechanical Services, Electrical Services, Security Services, Voice & Data, Lift Services etc. - insert trade contractor list as appropriate.>> For a tender to be conforming, tenderers must select from the approved list. The Builder may submit an alternative tender using trade contractors not on the list, provided a conforming tender is submitted. Such alternative tender must nominate the proposed alternate trade contractor, and the benefit to the University in approving the alternative trade contractor. The University reserves the right to accept or not to accept an alternative tender. Maintainer: pcs-project-office@unimelb.edu.au Page: 4 of 8

In this Alternative 2 the Contractor accepts full responsibility for the performance of the Subcontractors but the University bears some responsibility as a result of having provided the list of trade contractors to the tenderers. Alternative 3 SEPARATE CONTRACTS BY UNIVERSITY Tenders are called by the University be called separately for services or other specialist trades. Tenders shall be assessed by the Services Consultant and the University nominates the successful tenders as subcontractors to tenderers of the building works and the tenderers include the Nominated Subcontracts in their tenders prior to closing of building tenders. In this Alternative 3 the Contractor accepts full responsibility for the performance of the Subcontractors but the University still bears some responsibility as a result of having tendered the work of the Nominated Subcontractors without input from the Building Contractor. 3.7 TENDER RECEIPT All Tenders for projects must be delivered to: The Tender Box Reception Property & Campus Services Ground Floor, 625-631 Swanston St University of Melbourne, Carlton Vic 3053 Upon receipt of tender submissions, the Project Manager is required to complete the Tender Box Closing Form. Tenders shall be opened in accordance with the Procurement Guidelines and the Tender Report completed and signed. 3.8 TENDER EVALUATION AND RECOMMENDATION A thorough evaluation of each tender shall be carried out, normally by the Principal Consultant with input from the Design Team, and a tender report submitted to the Project Manager. Tender evaluations shall ensure that:- Late tenders are only considered the approval of the Construction Manager AFTER all conforming tenders have been evaluated AND no conforming tender is considered to be acceptable; All clarifications and qualifications in the received tenders must be withdrawn, priced or adjusted to ensure comparison is like for like; All schedules in the tender documents are completed. Successful AND unsuccessful tenderers shall be advised, in writing, of the decision by the Principal Consultant or the Project Manager after a tender has been accepted. Refer to the Draft Reply to Unsuccessful Tenderers. 3.9 INDUCTION OF CONTRACTORS Only University of Melbourne inducted contractors are permitted to work on building or construction projects. The inductions are conducted in accordance with the University of Melbourne Property & Campus Services Specific Induction (Parkville Campus) booklet. Maintainer: pcs-project-office@unimelb.edu.au Page: 5 of 8

Individual contractors who are not on the list of inducted contractors may be separately inducted by the Project Manager by following the induction booklet format and forwarding the completed forms to the Construction Manager. The name of the contractor will be added to the list of inducted contractors. Should any contractor give cause to be removed from the list of inducted contractors, the Project Manager shall advise the Construction Manager, who shall determine whether or not the cause warrants removal. An induction is only valid for a maximum of 2 years. 3.10 PREAWARD MINUTES Prior to the award of any contract in excess of $10,000.00 the contractor must attend a Pre- Award Interview meeting and sign the minutes. Refer to Pre-Award Interview Minutes template. For projects less than $10,000.00 where a unique EH&S hazard has been identified the Pre- Award Interview meeting is also required. 3.11 SAFE WORK METHOD STATEMENTS (SWMS) Safe Work Method Statements (SWMS) are required for all building works and shall be completed and signed by the Contractor and forwarded to the Project Manager prior to commencing the related work. The Project Manager shall, in consultation with the EH&S department, review the SWMS and return the SWMS to the Contractor for revision and resubmission as required. The SWMS shall be a description of the work methods employed by the Contractor to mitigate or minimise the EH&S hazards, and the control measures employed to ensure compliance with the Safe Work Method Statement. 3.12 PROJECT APPROVAL The Project Manager shall obtain the approval of the authorised delegate by submitting the completed BR file to the authorised delegate. To determine appropriate authorised delegate refer to the University s Building Tendering and Purchasing Policy UOM0385 The Tender Report and the Project Budget shall be completed and attached. On all projects the Project Approval Form shall be completed and attached to the BR file. On projects in excess of $400,000.00 the Project Approval Form together with a Project Approval Summary shall be submitted to the Major Tender Board for approval. 3.13 BUILDING WORKS COMMENCEMENT NOTIFICATION Prior to commencement of building works, the Project Manager shall complete and distribute the Building Works Commencement Notification by Email, using the Projects Notification List (PCS_ConProjectNotification) plus Client Department. Refer to Project Works Commencement Notification for email proforma. 3.14 BUILDING PERMIT Maintainer: pcs-project-office@unimelb.edu.au Page: 6 of 8

Prior to commencement of building works, the Project Manager shall ensure Building Permit has been obtained. 3.15 SAFETY MANAGEMENT PLANS Prior to commencement of building works, the Project Manager shall ensure the relevant Safety Management Plan (SMP) is obtained from the Principal Contractor and has been reviewed by the EHS Department. Maintainer: pcs-project-office@unimelb.edu.au Page: 7 of 8

DOCUMENT CONTROL Approvals Version No. Approval Date Name Title Signature/Email ref 008 18/04/2012 009 25/06/2012 Leo Fincher-Johnson Construction Manager, Major Projects 26 Jun 2012 L. Fincher- Johnson Review history Version No. Review Date Name Title 009 06/06/2012 Brendan Jordan Project Manager Version history Version No. Version Date Summary of Changes Prepared by: 008 18/04/2012 Robert Pollock 009 25/06/2012 New format and content amendments from Robert Pollock's 120418_ProjectManagementProcedures_2012_Ver8.doc Tania Robinson Maintainer: pcs-project-office@unimelb.edu.au Page: 8 of 8