LA018492 CPCCBC5005A: Subcontractor Selection Report - TAFE NSW

This report details the selection process for a subcontractor, focusing on a specific construction project, evaluating various firms based on criteria such as professional qualifications, past performance, time efficiency, cost-effectiveness, employee relations, environmental management, and overall firm qualifications. The analysis includes a comparative assessment of multiple firms, highlighting the strengths and weaknesses of each based on their tender submissions, hidden costs, and ability to meet project requirements. The report further provides a subcontractor pre-award interview template covering aspects of health and safety standards, performance monitoring, quality assurance, insurance coverage, and environmental management. The scoring system and procedure for subcontractor selection, along with communication protocols and performance management methods, are also outlined. The report concludes with an evaluation framework, assessing subcontractors based on motivation, methodology, time, cost, quality, and risk mitigation, including penalty and notice-to-cure mechanisms.

Assessment 4
LA018492
CPCCBC5005A
TAFE NSW – WSI

Part two: Select subcontractors
The selection of subcontractor is awarded to Ultimate Concrete
Services Pty Ltd (refer to appendices) for an overall score of 680
points based on the criteria (1) Professional Qualification (2) Past
Performance (3) Time efficiency (4) Cost Effective (5) Employee
and Industrial Relations (6) Environment Management, and (7)
Qualifications of Firm (SAI GLOBAL, 1998 ).
In the dimension of professional qualifications, the firm has
exquisitely stated the requirement, meeting all details from
supply to finish and testing compliance. Other firms omitted
portions of the construction requirements.
All firms rate equally in the category of past performance and
qualifications of the organisation because these organisations
have former subcontractors of the project.
Ultimate Concrete Services Pty Ltd is the only firm that looks
into employee and industrial relations with provisions for lunch
and toilet facilities (EL-SABAA, S, 2018). It also scores highest in
environment management (THOMAS, I.G., 2005), taking into
account rubbish disposal, hoisting and termite control (SHOLARIN,
E.A. and J.L. Awange, 2015).
For effective time management, the firm takes 70days for
completion of the task, when Professional Formwork and
Concreting Services Pty Ltd stated only 53 days but has left out
concrete testing, curing or hoisting, sand blinding, 'Fortecon' slab
underlay, termite control or rubbish removal; which are time
consuming activities that can exceed the expected duration,
especially when these are not inclusive in the calendar (AL-HAJJ,
A. and Zraunig, M.M., 2018). Even for the simple task of materials
procurement, when these are not on the calendar, there is a
possibility of delay and realignment of the entire schedule. So far,
only Ultimate Concrete Services Pty Ltd noted details of the
activities over the entire construction process (JAINENDRAKUMAR,
T.D., 2015).
In the aspect of cost effectiveness, the hidden cost to complete
the requirement and the percent of liquidating damages
recoverable is examined alongside the tender price. Concrete
Services Pty Ltd has the second to the lowest tender at 467,120,
which is below the original estimate of 484,376, shows no hidden
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costs and recovers 66% of the tender through liquidating
damages, in case of a falling out.
On the contrary, Professional Formwork and Concreting
Services Pty Ltd has the lowest bid at 313,765, this actually
accounts for only 52% of the work required. The tender does not
include materials such as concrete and steel reinforcement,
curing of concrete, removal of rubbish and hoisting tasks. The
tender amounts to 599,335 when the estimated expenditure to
have this done is added up. In other words, the liquidating
damages cover roughly 39% of project expenditure in using the
services of Professional Formwork and Concreting Services Pty
Ltd.
The remaining two firms have price quotations between
463,330 and 488,512 and have hidden costs between 3.5 and 4.5
percent. These hidden costs include allowances for supply of
membrane, curing of concrete, concrete testing, hoisting of
materials or supply of workers sheds, and removal of rubbish
(SAILAJA, A., Basak, P.C., and Viswanadhan, K.G., 2015).
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Part Three: Subcontractors Pre Award
Interview Template
SUBCONTRACTOR DETAILS
Is your organisation a member of any industry organisation? If
so, please state.
How many contracts has your organisation completed within the
last seven months?
Percentage in backlogs at the moment?
Is your organisation a subsidiary or do you have a subsidiary? If
so, please state
What is your longest duration of down time between jobs?
What is the worst building experience of your organisation?
What has been your best building experience?
REFERENCES
HEALTH AND SAFETY STANDARDS
What inspection or testing practices does your
organisation have to safeguard construction
equipment or tools used by workers on site are in safe
condition?
What inspection or testing practices does your
organisation have to safeguard lifting equipment or
accessories used on site by workers are in safe
condition?
What inspection or testing practices does your
organisation have to safeguard scaffolding; MASTs and
height platforms are in safe condition?
Number of fatalities in the last three years?
Number of days-away incident rate?
Recordable incident rate within the past three years?
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What corrective measures has your organisation put
into place to prevent future incidents?
Has your organisation received OSHA citations within
the last three years? What type of violation and
corresponding penalties? Were these citations
vacated?
Are occupational safety and health programs in force?
Any Occupational Physician, Certified Industrial
Hygienist, Certified Safety Professional, or Certified
Health Practitioner retained by your company?
Please indicate
trainings provided
by your
organisation and
most recent date
o Asbestos
o Blasting/Explosives
o Blood borne
Pathogens
o Confined Space
Entry
o Cranes Operations
o Electrical Safety
o Excavation
Competent Person
o Fall Protection
o Fire Extinguishers
o First Aid/CPR
o OSHA Certified 10
or 30 hours
o Hazardous Waste
(40-hour)
o Hearing
Conservation
o Heavy Equipment
Operation
o Laboratory Safety
o Ladder/Scaffolding
o Lead
o Lockout/Tag out
o Personal Protective
Equipment
o Powder-actuated
Tools
o Process Safety
Management
o Radiation
Protection
o Respiratory
Protection
o Welding/Cutting
o Forklift Operations
Is a program in place for disciplining workers whose
perform work practices are unsafe?
Does your organisation have written accident
investigation procedures?
Is there a Hazard Communication Standard program in
effect your organisation?
Is there an accident prevention program currently in
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effect your organisation in compliance OSHA
regulations?
Are health surveillance program for workers on
hazardous waste sites implemented for hazardous
chemicals: As, Mg3Si2O5(OH)4, C6H6, CH2O and Pb
Is tailgate or toolbox safety meetings practiced
regularly in your organisation
Is there an alcohol and substance abuse policy
statement in force in your organisation?
Does your organisation policy prevention for alcohol
and substance abuse include the following?
PERFORMANCE MONITORING AND QUALITY ASSURANCE
Safety Inspection schedules
Safety Audit schedules
Quality Inspection schedules
Quality Audit schedules
Does your company document and log all inspections?
Does your company have a person responsible for
safety management
Any third party accredited quality management
protocol? ISO 18001 or 9001?
Are all incoming materials and supplies inspected upon
receipt? Are materials acceptance or rejection criteria
defined?
Does your organisation have a quality policy
statement?
Does your company have a responsible person for
quality control
ADEQUACY OF INSURANCE COVERAGE
Does your organisation have a Public Liability
Insurance Coverage?
Do your workers have adequate Health Insurance
Coverage?
Does your organisation have a Professional Indemnity
Insurance Coverage?
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Does your organisation Employer Liability Insurance
Policy for all activities undertaken in this project,
confined space working or working at height?
ENVIRONMENTAL MANAGEMENT
Does your company have a person responsible for
environment protection
Does your organisation have a third party accredited
environment protection protocol? ISO 14001?
Does your organisation have an environmental
protection policy statement?
Has your organisation been prosecuted for incidents
involving pollution or breach of environmental
legislation?
Is your organisation a registered to transport waste?
Points basis of rating
10 Exceptional Contractor tender specifies first-rate
conformance with stated requirements in competence footing,
systematic effort and efficient use of resources.
8 Good Contractor proposal shows appropriate conformance
with stated requirements in competence footing, systematic effort
and efficient use of resources.
6 Average Contractor proposal specifies middling conformance
with stated requirements in competence footing, systematic effort
and efficient use of resources.
4 Below Average Contractor proposal directs inappropriate
conformance with stated requirements in competence footing,
systematic effort and efficient use of resources.
2 Poor Contractor proposal specifies low conformance with
stated requirements in competence footing, systematic effort and
efficient use of resources.
0 Unacceptable
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Contract Specifications Scoring
Ultimate
Concrete
Services
Pty Ltd
Professiona
l Formwork
and
Concreting
Services
Pty Ltd
Quality
Concreting
Pty Ltd
P & W
Concreting
Services
Pty Ltd
PROFESSIONAL
QUALIFICATION
10x 10
=100
10x 8
=80 10x 6 =60 10x 6 =60
PAST PERFORMANCE 10x 10
=100 10x 10
=100
10x 10
=100
10x 10
=100
EFFECTIVE TIME
MANAGEMENT
10x 8 =80
70 D/ $68
10x 10
=100
53 D/ $70
10x 8 =80
70D/ $75
10x 6 =60
72 D/
COST EFFECTIVE
10x 10
=100
467,120.0
HC 0
LD 66%
10x 6 =60
599,335.4
HC 48%
LD 39%
10x 8 =80
488,512.4
HC 4.5%
LD 64%
10x 8 =80
463,330.7
HC 3.5%
LD 69%
EMPLOYEE AND INDUSTRIAL
RELATIONS
10 x 10
=100 10x 4 =40 10x 4 =40 10x 4 =40
ENVIRONMENT MANAGEMENT 10 x 10 10x 10
=100
10x 4 =40 10x 4 =40
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=100
QUALIFICATIONS OF FIRM 10 x 10
=100
10x 10
=100
10x 10
=100
10x 10
=100
TOTAL  680 580 500 480
Procedure for Subcontractor selection
 Professional Qualification. Do a verification of company and
professional licenses, business and company registration with SIC
and Agencies concerned. Verify validity of Professional Indemnity
Insurance coverage. Score proposal appropriateness
 Past Performance. Verify at least two previous contract
engagements in terms of quality of work and work ethics. Verify
for any violations, litigations and disputes
 Cost Effective quotations should surmise the hidden costs and
stated costs over the value of liquidating damages. Cost effective
is further examined against the overall time because there are
costs incurred in case of potential delays.
 Employee and Industrial Relations. Check for any violation,
breach or cure notices in relation to the labour code, look up the
validity of work safe certification, employer liability insurances,
training provision for quality and safety.
 Environment Management. Verify any violations or breach of
legislation. Inspect cleanliness and orderliness of current jobsites.
 Protocols and Codification of Procedures. All company policies
and procedures should adhere to work quality and safety and
environment protection. Verify accident investigation protocols.
 Test for conflict of interest and responsiveness of the
organisation
Communication process onsite
A subcontractor begins with a contract, followed by a kick off
meeting and site induction. Over the coursework of construction,
a subcontractor must submit weekly progress reports and
monthly summary reports. Subcontractors shall hold weekly
meetings with workers, and daily toolbox talks before break up.
Monthly site assembly are conducted to discuss safety inspection
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results and finding of random quality spot checks (TAN, Yongtao &
Xue, Bin & Ting Cheung, Yim., 2017).
Communication includes sensitive matters such as security
protocols, worker policy, safety procedures, and emergency
response. Daily reminders of one of these policies, procedures or
protocols: one policy a day, shall be sent via SMS. Minutes of all
meetings shall be emailed to all subcontractors. Telephone,
internet and radio facilities shall be made available onsite
(LUTHRA, A. and Dahiya, R., 2015).
All printed communication shall be signed receipt. All emails
should be acknowledged upon receipt. Call messages shall be on
log data with correspondence through post.
Performance management of subcontractors
A well-managed construction site comprised of multiple
subcontractors is ideally managed with open communication
supported by documentation accuracy. Any project backlog is a
result of ineffective communication and weak performance
monitoring methods, such as the regular update of Gantt charts.
Nonetheless, on first instance the subcontractor is called for
discussion, on second instance the subcontractor received formal
notification, and on the third instance the subcontractor is
penalised. When a subcontractor is penalised more than once, a
pre-termination memo is issued and the contract either enters
into renegotiation or is cancelled (TRIPATHI, K. K. and Jha, K. N.,
2018).
There are five aspects for evaluation at the end of contract (1)
Motivation (2) Methodology (3) Time Performance (4) Cost
Performance, (5) Quality performance and (6) Risk Mitigation.
MOTIVATION COST PERFORMANCE
1 2 3 4 1 2 3 4
METHODOLOGY QUALITY PERFORMANCE
1 2 3 4 1 2 3 4
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TIME PERFORMANCE RISK MITIGATION
1 2 3 4 1 2 3 4
NOTICE TO CURE Yes
None
PENALTIES INCURRED
Yes None
REMARKS
Motivation is characterised as the enthusiasm to achieve client
satisfaction, industry awareness and subcontractor effective
communication. Effective communication across all level of the
project minimises misunderstanding, develops good exchanges
and raises productivity (QUEENSLAND GOVERNMENT, 2018).
Methodology is described as the technical approach,
functionality and level of productivity. A subcontractor approach
and expertise to craft good methodology adds value to the project
(SOUTH CAROLINA STATE GOVERNMENT, 2014).
Time Performance relates to on time completion of the project
schedule. This entails close monitoring of the critical path and
alterations over durations of slack. Project delay incurs huge
financial loss and impacts on the overall performance (SWEIS, G.
and Sweis, R., 2008).
Quality Performance is associated with workmanship and
durability of installations. Workmanship ensures the shelf life of
the built environment and minimises maintenance expenditure.
At the same time excellent workmanship standard foster goodwill
that can lead to opportunities (KUMARASWAMY, M.M. and
Mathews, J.D., 2000).
Cost Performance would mean cost savings, adherence to
budget, resource utilisation and attitude to claims.
Risk mitigation includes the management of weather changes
across the project duration, the circumvention of breach or
violation of any environmental legislation and effective
emergency response. Risk mitigation involves the upkeep of
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health standards, security protocols and safety practices (SÖZEN,
Z. and Küçük, M.A., 1999).
Conflict resolution relates to the relationship in time of dispute
and stems from good problem identification, responsiveness and
prompt resolve.
In a paper for project evaluation, the level of importance these
criteria scored 98 points for cost performance, time performance
and health and safety. Quality and Technical Performance follow
after (YIN, H.Y., Tserng, H.P. Toong, S. N. and Ngo, T.L., 2014).
Site induction checklist
SUPERVISOR DETAILS COMPANY DETAILS
THIS SECTION MUST BE COVERED WITH COPIES OF DOCUMENTS
PROVIDED WHERE REQUIRED
Persons responsible for
health and safety Union membership conditions
Person responsible for
emergency responses
Codification of evacuation
plan, fire extinguishers and
exits
Person responsible for
reporting and protocols
for workplace hazards.
Space for administering first
aid and basic equipment
Incident /accident
reporting procedures
Contractor certification and
licences
Plant / equipment
certification /
registration
Workers compensation/
personal accident insurance
Submit copy of PTW,
Permit-to-work
Protocols during tag out / lock
out
Site management
strategy for perimeter
traffic and environment
Worker IDs provided
Policy and procedures Public liability insurance
Roles and Professional indemnity
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