Posted: September 1st, 2014

Explain the benefits and risks associated in using the contracting form nominated

Perspective 1: The Owner
I) Explain the benefits and risks associated in using the contracting form nominated.
Include in your discussion factors such as the context, organizational experience,
specifics of the project, risk profile of the project. You should also clearly outline the
anticipated time dimensions for the project and the reasons behind the suggested time
frames [for some of the above projects time frames have been outlined – in this case
you need to provide comments and discussion on the durations and expectations
provided and potentially update the dates such that the deal is current. If your chosen
project does not include contractual dates you first need to nominate them and then
discuss].

II) Detail and discuss the reasons behind the selection of specific contract terms as
generally described in Annexure Part A of the most relevant Australian Standard
General Conditions of Contract, (e.g. AS2124 construct only, AS 4300 design and
– 2 –
construct, AS 4122 consulting agreement, AS 4919 Asset maintenance and service).
A completed Annexure Part A may form an appendix to your assignment.
Perspective 2: The Provider
III) Prepare a briefing document for the Chief Executive Officer of your construction
company detailing the current market conditions associated with bidding for the
project. Your brief is to include details of the general market (as of today 2014), the
economic climate, alignment of the project with your company strategy, your likely
competitors, resourcing, cash flow and other risks associated with proceeding with a
tender for the project. The objective of the briefing note is to have the CEO make a
decision as to whether your company should pursue the tender and develop a bid.
IV) Based on the specifics of your chosen project identify five to ten critical risks and/or
opportunities associated with the project. Sufficient detail is to be provided to justify
the significance of identifying these risks as priorities. Matters for consideration
would include (but not be limited to): the company’s relationship with the Client, the
company’s experience and track record in this type of work, the clarity of the EOI

documentation provided and specific risks associated with the project.
Importantly, the document prepared for parts III and IV of this assignment should be prepared in
accordance with that expected of an internal company briefing note.
Remember, data for this assignment should only be collected from public sources, e.g. current
affairs material.
V) Detail a strategy for your tender. What is going to make your tender a winner? Where
is your commercial advantage? What commitments is your company prepared to
offer to improve your chances of success?
Consideration should also be given to:
 Commercial aspects associated with producing a complying tender.
 Your attitude to seeking later variations and claims.
 Risk management and risk mitigation considerations.
VI) Assume your company has decided to pursue this opportunity. Develop a Tender
Preparation Plan for the preparation and submission of your company’s tender. This
plan is to cover the tender period; it is not a full program for the delivery of the
project.
Your plan should:
 Outline the tasks to be completed as a part of preparing the tender and this
information should be presented as a schedule (a bar chart would suffice).
 Identify the specific resources required during the tender phase and prepare
an organizational chart for these resources.
 Indicate how the final tender price would be developed and then signed of