LANDSCAPE PROJECT MANAGEMENT

AND PROFESSIONAL PRACTICE

ASSIGNMENT 5- QUESTION PAPERS

SUBMITTED BY:

- AYESHA MATHUR

- TENZING SHERPA

LANDSCAPE ARCHITECTURE- 4th SEMESTER

SCHOOL OF PLANNING AND ARCHITTECTURE

Question: Write notes on Contract Procedure; Criteria for selecting contractors: the process of calling
tenders. Comparison of various kind of tenders with regard to objectives, utility and appropriateness

Answer:

Contract Procedure

Criteria for selecting contractors.

It is problematical to select a suitable contractor. Bid evaluation is one of the major challenges that face
owners and consultants in the public and private sectors. On the other hand, there are objective means
to gauge the ability of a contractor to properly manage the business aspects of the construction project.
Some models and frameworks have been created to evaluate contractors’ bids and select the most
suitable one.

Financial soundness

• Financial stability.
• Credit rating.
• Banking arrangements and bonding.
• Financial status.

Technical ability

• Experience.
• Plant and equipment.
• Personnel.
• Ability.

Management capability

• Past performance and quality.

• Project management organization
• Experience of technical personnel.
• Management knowledge.

Health and safety

• Safety.
• Experience modification rating.
• Management safety accountability.

Reputation

• Past failures.
• Length of time in business.
 • Past owner/contractor relationship.
• Other relationships.

In actuality, contractor evaluation is regularly performed by industry professionals using their

accumulated experience and judgment. There are variations in the amount of effort expended in the
process. An important step in evaluation is to examine the contractor’s system for handling project
information regarding work tasks. The contractor’s approach to safety and what actions it takes to
achieve desired results should be closely scrutinized. Many factors should be considered during the
contractors’ qualification screening. The following list includes most of the components that should be
examined when conducting a contractor qualification.

(1) Financial standing, such as financial stability, turnover, profit, obligations, amounts due, and owned
financial funds.

(2) Technical ability, such as experience, plant and equipment, and personnel.

(3) Management capability, such as past performance and quality, quality control policy, quality
management system, project management system, experience of technical personnel, and management
knowledge.

(4) Quality, safety, senior management, including experience, tenure with firm, and division of
responsibilities.

(5) Current projects/backlog, including number, size, and location of projects, percent of capacity being
utilized, and status and expected completion, past failures in completed projects, number of years in
construction, past client relationships and cooperation with contactors.

One way to collecting the data necessary to perform contractor evaluations is to conduct
questionnaires. But in this way, contractors will be tempted to answer in a way that puts them in the
best light. For instance, one commonly used questionnaire asks contractors if safety is a priority in their
business.

The process of calling tenders.

Once it has been decided that tenders are required from a number of Landscape Consultants, the Client
will need to draw up a short-list of suitable Practices. Each Practice invited to submit a tender should be
fully and equally acceptable to the Client on all other criteria in order that fee price should be the sole
criterion for selection. There are a number of ways of drawing up a short-list.

1. Selection of Consultants from the Client’s own approved lists;

2. Advertisement for Practices who would be interested in undertaking the project. In this case,
responses to the advertisement will need careful evaluation;

3. The Landscape Institute will provide information and advice on suitable Practices on request.
Examples of work and further Practice information may be requested, and references from past Clients
may be taken up. It may be desirable to interview the Principal of the Practice and to meet members of
the Practice’s staff who are likely to be involved in the project.

Each short-listed Practice should be sent a preliminary enquiry and invited to reply by a particular date
confirming willingness to be considered. The number of tenderers to be invited should be stated at this
stage.

From the replies to the preliminary enquiry, a final list of Consultants should be drawn up.

Those originally invited but not finally selected should be notified.

Normally it is recommended that not more than three Landscape Consultancies should be included on
the final tender list and invited to submit fee tenders.

4. The Client should simultaneously provide each Landscape Consultant with identical information, and
with standard envelopes. Each Consultant should be given the same timescale in which to submit a fee
tender. The timescale should be sufficient to allow the Consultants to visit the site, assess the brief, raise
any questions and submit a tender.

5. The tender period will vary according to the scale and complexity of the project, and should not
normally be less than four weeks. Where the Landscape Consultant is asked to submit a technical
document as well as a fee proposal, this period may need to be extended.

6. If the tender invitation contains ambiguities or lacks specific information, it is probable that tenderers
will raise questions which should be answered fully to avoid the submission of qualified tenders. Any
questions and their answers should be notified to all competing Consultants during the tender period.

7. All tendering Consultants should be advised by the Client if, as a result of questions, issues are
identified which could materially affect the range of services required or the budget or timescale for the
project. In these circumstances, it may also be necessary for the Client to extend the period for tender.

8. For fair competitive tendering, it is essential that all the competing Landscape Consultants base their
tenders on identical sets of documents. Tenderers should not attempt to introduce variations to the
basic brief by qualifying their tenders. The allowance of questions during the tender period is intended
to obviate the need for qualifications.

9. In the event of a qualified tender being submitted, the tenderer should be given the opportunity to
withdraw the qualification. If the tenderer fails to do so, the qualified tender should be rejected.

10. A specific date and time should be set for submission of sealed tenders. The tender envelope should
not identify the sender. Tenders should be opened as soon as possible after the time of receipt. Any
tenders received after that time should be returned unopened as invalid. All valid tenders should be
opened at the same time.

As soon as one Landscape Consultant has been appointed, the Client should advise all the tenderers of:

• The successful consultant

• Whether the lowest tender figure was the one accepted
• The other tender figures received
Comparison of various kind of tenders with regard to objectives, utility and appropriateness.

Kinds of tendering

When we talk about tendering, it is involved to some kind of complicated process and procedure. Before
any tendering process can be done, professional team and employer must make sure all necessary
tender documents have been prepared, checked and approved. The source of the funding also must
have been identified and the project financing put in place. The procedures for subsequent stages
should have been established with the express consent of the employer to ensure the tendering process
will go smoothly.

What types of tendering that employer want to choose is depends on nature of contract, complexity of
the construction, expertise needed and several reasons. But usually for the government project all over
the world, is tend to make open tender to ensure the procurement and works to be done in fairly
manner without prejudice. Open tender is one of the types of tendering that commonly used in this
world. Actually there are several types of tender including open tender, selective tender, negotiated
tender, serial tender and term tendering.

1. Open tender

Open tendering is the main tendering procedures employed by both the government and private sector.
The client advertises the tender offer in the local newspaper giving detail and key information of the
proposed works and inviting interested contractor to tender. In the legal sense such tender notices
constitute invitation to treat, a mere request by the employer for suitable contractor to submit their
bids or offers.

If the pre-requisite to tendering on the form of possession of the necessary registration has been
identified in the tender notice, then the advertisement is directed to only that particular class of the
public having the said qualifications. In order to reduce number of enquiries, earnest money is deposited
(for private project). Until the receipt of a bone fide tender selected then it will be returned. Although
price is very important in the decision on which tender or bid to accept, it is not the only factor taken
into account. Client does not bind to accept the lowest or any offer. The advantages and disadvantages
of open tender are stated below:

It allows any interested contractor to tender. Therefore, it gives opportunity for an unknown contractor
to compete for the work.

The tender list can be long as too many contractors tendering for one job.

Allowing the tender list to be made without bias. Client will obtain the bargain possible. No favoritism in
selecting contractors.

Uneconomic use of source.

Ensuring good competition not obliged to accept any offers.

Public accountability may be questioned if the lowest offer is not accepted.

Traditional method of tendering, familiar to all sector of the engineering and construction industry.

Does not attract reputable and established contractor unless they are forced to, due to lack of work.
 2. Selective tender

Selective tendering is the one alternatives developed to address the limitations of the open tendering
procedure. In this method, a short list of contractors is drawn up and they are invited to submit tenders.
The purpose of the elective tendering is to improve the quality of the bids received, to ensure that
contractors with the necessary experience and competence are given the opportunity to submit the
necessary bids, due to urgency work involved, for specific reasons of the employer, eg security reasons
in government projects. etc. and to make the tendering procedure more manageable and less a burden
on the parties involved. Such list may be prepared through recommendation from the Client's
professional adviser whom have knowledge of the Contractors undertaking the work in the past or
advertisement through the newspaper (prequalification). The advantages and disadvantages of the
selective tendering are stated below.

Only the competent contactors were invited to tender, then the lowest can be accepted.

Reduces the availability of work for other contractors especially new contractors.

It reduced the cost of tendering (economic use of resources, reduced tender documentation, shorter
tender periods, better management of the tender process, etc.)

Tender Price may invariably higher than would have been in open tendering.

Greater chance of collusion.

Tendering period longer because it involved two distinct stages.

Favoritisms may occur in the short listing.

Two Stage Selective Tender

Two stage selective tendering combined elements of competition and negotiation into a formula where
the employer could utilize the contractor's expertise at an early stage of the project cycle so as to
maximize innovation, ingenuity and quality and simultaneously optimize cost, time and resource input.
A contractor is selected competitively early in the design process. The tender documents contain
approximately quantities of the major value items. As design and planning proceed, the final tender is
developed from cost and priced data supplied with the initial tender. Two stage selective tendering was
very popular in developed countries. It was different from selective tendering because has two (2)
distinct stages namely:

• Selection of suitable contractor

This involves the selection of a suitable contractor and the establishment of a level of pricing for
subsequent negotiations.

The objective is to select suitable contractor as early as possible is to work together with the
professional team and to establish a level of pricing for subsequent negotiation.

The criteria for short listing is normally confined to items such as technical and financial capability,
experience in similar works and extent of resources (manpower, plant and equipment).

The pricing document should be flexible enough to cater for adjustment of price fluctuation for the
period between two stages and the pricing of the second stage.
In selecting a suitable candidate, a basis for pricing the subsequent second stage should be established
accordingly.

• Determination of Contract Price

Once a suitable contractor is selected, he will work together with the project team start contributing to
the pre-contract process in his capacity as unbiased but independent construction expert. This
contractor will contribute the following:

Contribution as a Technical Advisor to the Design Process

Practical Skills and Buildability

Minimization of Project Delay

During this stage, a negotiation to reach an agreement on the final contract price is undertaken and the
pre-contract process is perfected.

If no agreement being reached, the employer has an option to abandon the tendering exercise and re-
tender the works using any other tendering procedure.

The application of two stage selective tendering might be appropriate where the works are a very
complicated nature, where at the time of selection of the contractor, the magnitude of the work may
not be known with sufficient certainty and where it is an essential pre-requisite for works to be finished
by an early completion date. Table below are some advantages and disadvantage of two stages selective
tendering.

Benefit of the contractor's expertise in buildability, specialist knowledge in proprietary systems, project
scheduling, etc resulting in value for money.

Its application requires a high level of familiarity and commitment on the part of employers and
contractors.

Early commencement of work at site even when the magnitude of the works is not known with
sufficient certainty at the time of site possession.

Owing to a relatively smaller element of competition, but on the other hand higher negotiations
content, the tender process is relatively more expensive and longer than other common procedures.

Savings of time due to the overlap of the design and tendering stage.

Should the second stage be deadlocked or result in no acceptable agreement being reached, the tender
process has to be initiated all over again, albeit, through a different route. This incurs a time and cost
penalty to the project as a whole.

The procedure utilizes the best aspects of both competition and negotiation to arrive at the most
favourable arrangement at an optimum firm price before work commences.

This procedure requires a high level of commitment, integrity and good faith on the part of both sides
which sadly is usually lacking, hence the apparent failures encountered to date.
Since the contractor is part of the project team at a very stage of the project, this results in better
communication and information flow.

Generally, there will be fewer claims and disputes in the post contract award stage due to the
contractor's involvement at the design / pre-contract stage. Experience has shown that the contractor
has a clearer understanding of the requirements and a better appreciation of the intricacies of the
design and contract documentations.

3. Negotiation Tender

Negotiation tendering is extensively used in the engineering and construction industry commencing
from tendering till dispute resolutions, i.e. under the styles of pre-contract negotiations and post
contract negotiations. Usually with single contractor but may be up to three contractors. Negotiation
process involves are as follows:

Identification by the employer of a suitable contractor to negotiate with. The contractor can be selected
either from the employer's own list of preferences or on the advice of the professional team.

The contractor being apprised of the work scope.

The selected contractor is issued with details such as the scope of work involved, relevant drawings,
design and /or information to enable him to appreciate the extents of obligations and the employer's
actual needs. Some employers prepare and issue to the contractor proper tender documents inclusive of
a nominated bill of quantities to assist contractor in pricing the works for the forthcoming negotiations.
Negotiations can be applied to the following type of contract:

In Partnering type of contracts under the so-called win-win formula.

Where the employer has a long-term business relationship with the contractor.

In situations where the parties are in a relationship of holding and subsidiary companies.

Where the contractor is involved in the financing of the project.

In situations where the employer finds it advantages to employ the same contractor to continue an
initial or existing contract for the new works

Where there is a pressing need to have a very early start of work on the site and to complete the works
on a fast tract basis.

In special circumstances e.g. Security reasons, emergencies etc where it is expedient to secure the
services of a particular contractor only.

Where there is only a single contractor who is the only one available or with ether the special skill or
resources to carry out the particular works.

The employer's resources are either limited or constrained thereby making the use of the other
tendering impractical.

Some advantages and disadvantages in this type of tendering are:

Only reputable contractors are invited for negotiation.

The cost work is likely higher than competitive tender.

The Contractor can contribute his expertise during design stage.

Reduces the availability of work for other contractors.

Early Commencement of work on site. It shortens the period involved in appointing the contractor.

Should the negotiations be deadlock or prove eventually unsuccessful, this causes wastage of valuable
resources on both sides and loss of time for the employer, thereby delaying the overall selection of
suitable contractor.

Reduce risk of failure

Best alternatives for the employer to adopt is special circumstances such as emergencies, security
reasons and etc.

Experience has shown that contracts let out this basis result in fewer disputes and claims during the
construction stage.

4. Term Tender

Term tendering normally used on major maintenance projects. It may be awarded to a contractor to
cover a range of different buildings in different locations. It is often limited to a fixed time scale,
although the needs of the client may often require this to be extended. It is like a standing offer to
undertake a loosely defined extends of work usually within a fixed time period. The type of work is
usually specified and priced in a schedule of rates. The contractor will initially be offered the work to
cover a number of different trades usually on the basis of prices contained in a schedule prepared by the
client. Where the client supplies the rates for the work, the contractors are given the option of quoting a
percentage addition or deduction from these rates depending upon their desire to win the project. The
contractor offering the most advantageous percentage to the client will then be awarded the contract.
An indication of the amount of work expected over the specified period of time will assist the
contractors in the consideration of the percentage to be quoted.

2016 Q1(iii)- Write a short note on various kinds of estimate

Answer: A cost estimate is the approximation of the cost of a program, project, or operation. The cost
estimate has a single total value and may have identifiable component values.

All projects, both construction and environmental restoration, require cost estimates to plan and budget
the project efficiently. Numerous estimates are often prepared sequentially for a given project as the
project matures, and the level of information and detail available to the estimator increases. A problem
with a cost overrun can be avoided with a credible, reliable, and accurate cost estimate.

Followings are common types of estimate –

1. PRELIMINARY OR APPROXIMATE ESTIMATE:

Early in the planning stages of a project, both owners and designers need, and often demand, an
indication of the cost of the project at completion. Since the project has not yet been designed,
estimates prepared at this time have a low expectation of accuracy. One of the important purposes of
these preliminary estimates is to provide information to an owner or client so that a decision can be
made to proceed with the project. The expected accuracy is no better than within 20-30%. Project
comparison is a method of preparing preliminary estimates when cost data for comparable completed
projects is available. After preparing the comparison estimate, estimator makes adjustment for variation
of proposed project with the completed projects

Preliminary or approximate estimate is required for studies of various aspects of work of project and for
its administrative approval. It can decide, in case of commercial projects, whether the net income
earned justifies the amount invested or not. The approximate estimate is prepared from the practical
knowledge and cost of similar works. The estimate is accompanied by a report duel explaining necessity
and utility of the project and with a site or layout plan. A percentage 5 to 10% is allowed for
contingencies.

In case of building works, the following are the methods used for preparation of approximate estimates-
a) Plinth area method

b) Cubical contents methods

c) Unit base method.

2. ABSTRACT ESTIMATE:

The cost of each item of work is worked out from the quantities that already computed in the details
measurement form at workable rate. But the total cost is worked out in the prescribed form is known as
abstract of estimated form. 4%of estimated Cost is allowed for Petty Supervision, contingencies and
Unforeseen items

3. DETAIL ESTIMATE:

This type of estimate includes everything that needs to complete the project as well as overhead and
contractor’s profit. For this type of estimate, an estimator needs complete set of drawing and
instruction manual of the project. This estimate shows required materials, labor, time to complete the
project, complete cost details and overhead and also contractor profit. It also includes insurance, bond,
equipment and other necessary things that need to complete the project. Estimator for this type of
estimating should be experienced person because complete project budget, time duration and
contractor profit depend on his visualization.

The detailed estimate should be accompanied with:

i) Report
ii) Specification
iii) Drawings (plans, elevation, sections, details)
iv) Design charts and calculations
v) Standard schedule of rates.
 Factors to be considered While Preparing Detailed Estimate:

i) Quantity and transportation of materials: For bigger project, the requirement of materials is
more. Such bulk volume of materials will be purchased and transported definitely at cheaper
rate.
ii) Location of site: The site of work is selected, such that it should reduce Damage or in transit
during loading, unloading, stocking of materials.
iii) Local labor charges: The skill, suitability and wages of local labors are considered while
preparing the detailed estimate.

4. BOTTOM UP METHOD:

The bottom-up method is considered to be the most accurate method for generating project estimates.
It is used to determine budget or definitive estimates during the planning phase and at the start of each
project stage. The method uses the Work Breakdown Structure (WBS) developed during the planning
stage of the project. Estimates are created for all tasks at the lowest level of the WBS and then these are
accumulated to determine the estimates for the whole project.

5. MODEL ESTIMATE:

This type of estimate (mostly used in architecture) is prepared based on a model project estimate which
is developed before. Preparing this type of estimate needs answering several key questions depending
on model project. Such as length and width of building, number of base, size of base, floor height,
number of bath etc. Keep in mind that proposed project should be similar to model project. This type of
estimate may prepare a detail estimate of whole project or a part of project depending on the model
project.

6. PARAMETRIC ESTIMATE:

In this type of estimate, an estimator uses equations to prepare the estimate. This equation is the
relationship between “parameters” and “cost” of a project. This estimate is like unit-based estimate but
more complex than unit-based estimate. This type of estimate is done for getting concept of proposed
project cost.

2017Q7b- Write a short note on virtual completion and defects liability period.

Answer: VIRTUAL COMPLETION

Also known as substantial completion is one of the more significant milestones in a construction project,
affecting the rights and responsibilities of the owner and contractor. The impact may include release of
retained contract funds, responsibility for insurance, and commencement of statutory claim limitation
periods.

It refers to a stage of a construction or building project or a designated portion of the project that is
sufficiently complete, in accordance with the construction contract documents, so that the owner may
use or occupy the building project or designated portion thereof for the intended purpose. It is the point
where the owner can make use of the building or facility and ordinarily only minor work remains.

The date of virtual completion is important as it determines the date that a contractor is no longer fully
liable for delayed completion or for minor incomplete details. After substantial completion, the owner
again becomes responsible for the property, i.e., security, utilities, etc. A contractor can still breach the
contract, but any breach subsequent to substantial completion will only be a minor breach. This is also
the date that triggers:

• Retainage release
• The warranty periods
• Determination of any actual or liquidated damages
• The running of the statute of limitations and repose

DEFECTS LIABILITY PERIOD

Construction contracts usually include a defects liability period during which the contractor is
responsible for repairing or rectifying defects that appear in the works. The period usually commences
upon practical completion of the works and runs for a specified time frame (sometimes also known as
the maintenance period.

Purpose of a defects liability period

Under a construction contract, one of the contractor's primary obligations is to carry out and complete
the works to the standard set out in the contract. The defects liability period is intended to complement
this liability by setting out how and when the contractor must remedy defective work which becomes
apparent during the defects liability period. In effect, the defects liability obligation recognises that
defects will arise in the period following completion and includes the obligation to repair those defects
in the general obligation to complete the works to the required standard.

The defects liability period provides a practical mechanism to the employer for the repair or making
good of defects which may not be apparent before completion, without resorting to dispute resolution.
Making the contractor responsible for carrying out the repairs is usually cheaper and more efficient than
either the employer repairing the defect itself or engaging a third party to repair the defect.

In most contracts, the employer will retain either a proportion of the contract sum (cash) or a reduced
performance bond as surety for performance of the contractor's obligations during the defect liability
period.

Elements of a defects liability clause

A defects liability clause will set out the length of the defects liability period, the scope of defects the
contractor is obliged to remedy and any part of the contract sum retained by the employer as surety for
the performance of the remedial work (although this may be dealt with in the general clause dealing
with the provision of security).
A defects liability clause may also deal with the procedures for notifying the contractor of the defects,
the circumstances under which the defects liability period may be extended and any caps on such
extensions to the defects liability period.

Length of the defects liability period

Typically, the defects liability period starts on the completion of the works, which in many contracts will
be signaled by the employer's representative's issue of a practical completion certificate. The actual
period will vary depending on the nature of the contract; for straightforward building projects it is
usually six or 12 months. For complex engineering projects such as a power station, it can be as long as
24 or 36 months. The defects liability clause may also provide for sectional completion, for example:

"The defects liability period is the period of 12 months commencing on the date of practical completion.
If the works are taken over by the employer in sections, the defects liability period for each section must
commence on the date of practical completion for that section."

However, sectional completion is to the contractor's benefit. An owner will not want sectional defects
liability periods, but rather will want the period to commence on completion of the last section.

Scope of defects

A defects liability clause will require the contractor to repair or make good defects which are the result
of the contractor's default. Contractors will generally seek to exclude liability for defects not owing to
the contractor's default, for example:

"The contractor is not responsible for the repair, replacement or correcting of any defect or of any
damage to the works arising out of or resulting from any of the following causes:

• Any acts or omissions of the employer, its employees, agents and contractors (other than the
contractor).
• Improper operation or maintenance of the works.
• Use and operation of the works outside the specification.

Defects are generally regarded to include any deficiency in the quality of the works including defects due
to faulty material or workmanship. This may extend to design where it is part of the contractor's
responsibilities (for example, in EPC contracts).

The defects liability period usually does not include an obligation to repair defects which occur as a
result of fair wear and tear. However, for the avoidance of doubt it is prudent, from a contractor's
perspective, to expressly specify this in the defects liability period clause.

Contractor's right to remedy works and notification

If the contractor fails to commence the work necessary to remedy the defect or any damage to the
facility caused by the defect within a time agreed with the employer under clause, the employer may
proceed to do the work, or engage another party to do the work and the costs, including incidental
costs, incurred by the employer as a result will be a debt due and payable to the employer on demand
and may be deducted from any payments otherwise due from the employer to the contractor. The
employer may also have recourse to the security and retention provided under this contract

The employer is generally required to give the contractor notice of the defects as soon as practicable,
stating the nature of the defect and supporting evidence.