Common use of Procurement Strategy Clause in Contracts

Procurement Strategy. The Employer intends entering into a framework agreement with a limited number of contractors, following a competitive selection process (qualified procedure). The NEC3 Engineering and Construction Contract (ECC), Option F: Management contract will form the basis of the framework agreement entered into with the Employer. The management contractor’s responsibilities for construction work are the same as those of a contractor working under one of the other options provided in the NEC3 ECC for engineering and constructions works. However, the management contractor performs only a limited amount of construction works typically relating to site establishment and de-establishment and may be called upon to provide the DWS Construction Unit with resources. The remainder of work will be contracted from local sub-contractors and suppliers who will be subcontracted through direct contracts with the contractor, who acts as a management contractor. The management contractor tenders his Fee and is paid on a cost reimbursable basis i.e. Defined Cost uplifted by his Fee percentage. Defined Cost includes subcontract amounts and the prices of the work done by the Contractor himself less Disallowed Cost. Disallowed Cost incudes costs not justified by accounts and record, costs not in accordance with a Subcontractor’s contract, costs incurred because procedures were not followed and payment to a Subcontractor for work which the Contractor is to do himself and the Contractor’s management. The management contractor is responsible for supplying management services. The management contractor’s Fee will increase if subcontractors’ prices (part of Defined Cost to the contractor) increase due to compensation events. However, he will not receive separate payment for his work in dealing with compensation events and he will not receive any additional Fee for work on compensation events which does not lead to an increase in subcontractors’ prices. The NEC3 ECC will be modified to accommodate the range of works required in addition to engineering and construction works i.e. the supply and delivery of goods, materials, equipment and plant to a delivery place, the provision of professional services and the management and provision of a service to support the work of an Employer’s Construction Unit or for an affected property for a period of time. Such works will also be undertaken on the basis of Defined Cost uplifted by a Fee. The Respondents will be evaluated in a two-phase process. • Phase 1 will be this document; the Expression of Interest for the framework agreement. This will be evaluated and all respondents who comply to the requirements as set out will be requested to complete a second document. • Phase 2: Respondents who are invited to submit tenders will be evaluated on the basis of financial offer, preference, quality and other requirements. Tenderers will be required to tender their direct fee percentage and subcontracted fee percentages. These parameters will be reduced to a comparative offer in terms of a tender assessment schedule. A framework agreement will be entered into with the highest scoring tenderers.

Procurement Strategy. The Employer intends entering into a framework agreement with a limited number of contractors, following a competitive selection process (qualified procedure). The NEC3 Engineering and Construction Contract (ECC), Option F: Management contract will form the basis of the framework agreement entered into with the Employer. The management contractor’s responsibilities for construction work are the same as those of a contractor working under one of the other options provided in the NEC3 ECC for engineering and constructions works. However, the management contractor performs only a limited amount of construction works typically relating to site establishment and de-establishment and may be called upon to provide the DWS Construction Unit with resources. The remainder of work will be contracted from local sub-contractors and suppliers who will be subcontracted through direct contracts with the contractor, who acts as a management contractor. The management contractor tenders his Fee and is paid on a cost reimbursable basis i.e. Defined Cost uplifted by his Fee percentage. Defined Cost includes subcontract amounts and the prices of the work done by the Contractor himself less Disallowed Cost. Disallowed Cost incudes costs not justified by accounts and record, costs not in accordance with a Subcontractor’s contract, costs incurred because procedures were not followed and payment to a Subcontractor for work which the Contractor is to do himself and the Contractor’s management. The management contractor is responsible for supplying management services. The management contractor’s Fee will increase if subcontractors’ prices (part of Defined Cost to the contractor) increase due to compensation events. However, he will not receive separate payment for his work in dealing with compensation events and he will not receive any additional Fee for work on compensation events which does not lead to an increase in subcontractors’ prices. The NEC3 ECC will be modified to accommodate the range of works required in addition to engineering and construction works i.e. the supply and delivery of goods, materials, equipment and plant to a delivery place, the provision of professional services and the management and provision of a service to support the work of an Employer’s Construction Unit or for an affected property for a period of time. Such works will also be undertaken on the basis of Defined Cost uplifted by a Fee. The Respondents will be evaluated in a two-phase process. • Phase 1 will be this document; the Expression of Interest for the framework agreement. This will be evaluated and all respondents bidders who comply to the requirements as set out will be requested to complete a second document. • Phase 2: Respondents who are invited to submit tenders will be evaluated on the basis of financial offer, preference, quality and other requirements. Tenderers will be required to tender their direct fee percentage and subcontracted fee percentages. These parameters will be reduced to a comparative offer in terms of a tender assessment schedule. A framework agreement will be entered into with the highest scoring tenderers.