Tender and Contract Management for Construction of a Large Thermal Solar Power Plant in NSW

Running Head: TENDER AND CONTRACT MANAGEMENT FOR CONSTRUCTION OF A LARGE THERMAL
SOLAR POWER PLANT IN NSW 1
Tender and Contract management for Construction of A Large Thermal Solar Power
Plant in NSW
Name
Date

TENDER AND CONTRACT MANAGEMENT FOR CONSTRUCTION OF A LARGE THERMAL SOLAR POWER
PLANT IN NSW2
Contents
Introduction.................................................................................................................................................4
Tendering procedures..................................................................................................................................5
Obligations of Tenderers.............................................................................................................................8
Formulation of tender and estimates............................................................................................................9
Financial Arrangements and Financing justification of the project by the Principal:.................................10
Quality Control and Assurance..................................................................................................................12
References.................................................................................................................................................14

TENDER AND CONTRACT MANAGEMENT FOR CONSTRUCTION OF A LARGE THERMAL SOLAR POWER
PLANT IN NSW3
Introduction
Large complex projects are often associated with complex project schedules and
deliverables, and typically last longer time duration, while consuming large sums of money.
Projects involving public projects are particularly challenging because of the need to marry the
requirements for the project and public concerns in including regulations and rules (Eriksson,
2017. As such, the management of such projects must be done creatively and innovatively,
starting from the tendering stage. The Australian authorities have published the AS 4120-1994, a
standards guideline for ethics and methods for how to effectively manage tendering and contract
management for large projects (Tasmanian Government, 2017). This paper describes a large
complex project involving the construction of a solar-thermal power plant in Victoria, Australia.
This paper discusses various aspects of the AS 4120-1994 in the context of the project tendering
process, contract management, quality management, safety, and dispute resolution, as well as the
procedure for inviting the tenderers, tender evaluation, and award of tender after a through tender
negotiation. Ethics has become an increasingly important aspect in contract and tender
negotiations; hence these must be incorporated from the early stages to ensure project success
(Uher & Davenport, 2009)
1. The AS 4120-1994
The AS 4120-1994 main standard to manage tendering for large projects that include the
utilization of public assets, put forth by the Standards Australia Committee on
Construction Industry Practice; this standard supersedes the AS 4120 (Int) 1993, tendering
Code. The AS 4120-1994 sets out and characterizes the commitments and morals of the
bidders and Principal in the process of tendering for construction work. The AS 4120-
1994 applies to the code for choosing contractors and sub-contractors. The Standard
vouches for empowering elevated amounts of moral benchmarks in tendering in the
construction business with the conviction that higher profitability, negligence and
malpractices, better working conditions, and superb construction work will be
accomplished as a result.
1.1 Definitions
Civil construction sector- Industry sector involved in preparatory works at sites such as

TENDER AND CONTRACT MANAGEMENT FOR CONSTRUCTION OF A LARGE THERMAL SOLAR POWER
PLANT IN NSW4
demolition, earthmoving, and excavation for sewerage, water recirculation, drainage,
major and minor roads, dams, and general infrastructure as well as quarrying and related
work
Principal- An initiator or project owner that invites interested parties and receives
proposals or tenders from them
Consultant- A person providing specialist professional services and/or advice.
Contractor- An entity that provides construction and building works as well as services,
and includes suppliers and subcontractors
Industry- Is the Civil Construction Sector/ Industry
Intellectual property- Any registered design, patent, trademark, copyright or name that
includes list of suppliers, trade secrets, manufacturing methods and customers.
Superintendent- Superintendent is a person appointed to oversee a project under the
General Contract Conditions
Tender- Refers to an offer made in writing that includes price/ cost, as a response to
invitations to supply goods, perform works, or associated services
Tenderer-Any party that submits a tender, and includes contractors, suppliers , and
subcontractors
1.2 Statements of Ethics
The contractor/ winning tenderer will agree to perform the construction project with
integrity, fairness, impartiality and efficiency, and will also expect parties they work or
collaborate with to live up to the same principles. The facts given by the tenderers need to
be correct and based on confidence and trust, with a focus on offering best value for the
Principal, including during the process of tendering. The relevant environmental practice
standards as well as the safety standards prescribed by the OHS must be upheld by all the
parties, and accountable industrial relations has to be practiced and encouraged at all
times. This tender guideline is directed by the ethical ideologies of reliability, fairness,
integrity, fair reward, objectivity, accountability and service, as defined in the AS 4120-
1994
1.3
Tendering procedures
1.3.1 Obligations of Principal