Question        

 

You have been engaged as the architect to design and prepare contract documents for a new winery cellar door close to McLaren Vale for which Development Approval has been granted. For this project you consider that four or five contractors should be invited to tender. You have worked with four reputable contractors and are in a position to recommend them. Your client requests that a contractor known to them also be included in the list and asks for your opinion. You have not previously worked with the contractor.

 

(a):  Outline what actions you should undertake to determine the suitability of the prospective tenderer for this project and list four (4) pieces of information you should obtain from them.  

 

 

(b) Which relevant ACUMEN Guide Letter would you use as a guide for any correspondence with the prospective tenderer?          

 

Enter your answer here

 

After taking this action, you advise your client you are satisfied with the suitability of this tenderer, and now have five tenderers who have agreed to tender for this project.  

 

(c)  Included in the information to be submitted with the tender is a schedule of rates and a cost breakdown by trades. Explain how this information will be helpful to you in administering the contract.            

 

     

As agreed, the owner is present at your office at the close of tenders, and witnesses the opening of the five tenders. During the meeting, one of the tenderers urgently calls your office to advise they have significantly underquoted in their tender and wishes to withdraw it. You have already opened the tenders and the quote from the tenderer is the lowest of the five received.

 

(d) Can the tenderer withdraw their tender? Why or why not?      

 

 

Another tender received is within the pre-tender estimate range prepared by the quantity surveyor.  However, this tender is based on moving the location of the building on the site without otherwise changing its design.  The tenderer has confirmed they will meet the required date for practical completion. You advise the client that it is a non-conforming tender, and you do not recommend it being considered. The client is keen to commence building work as soon as possible, is happy with the tenderer’s proposed new location, and instructs you to advise the tenderer and arrange for execution of the contract without delay.

 

(e) You advise the client that their decision to proceed with the tenderer may have multiple cost and time implications. List three (3) of these possible implications below.    

 

 

(f) After considering your advice, the owner agrees and decides to proceed to negotiate with the lowest conforming tenderer. Which ACUMEN Guide Letter would you use as a reference in preparing your advice to the unsuccessful tenderers?        

 

 

(g) What could you require in the Conditions of Tendering to ensure this situation does not occur in future projects?