Construction Tender Essentials

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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