Q.

10/91 - Discuss the merits and disadvantages of allowing contractors to submit alternative
proposals involving modifications to the engineer's design of the works. What
procedures would you recommend for the submission and assessment of such
alternatives.
Kelvin Au Yeung 6/91

1.0 INTRODUCTION

In the planning and design of civil engineering projects, there are often different
options available in achieving the same purpose. It is indeed rare if only one unique solution
exists. As good professional practice, the Engineer should consider different options with regard
to the site constraints and the requirements of the Client. At times, the Engineer may encounter
contractors who have their own ideas, particularly with the choice of methods of construction,
which might entail modification of the original design. Contractors, depending on their
background, may be in a position to offer better solutions, basing on his own field of
specialization and resources. By allowing them to submit alternative proposals involving changes
to the Engineer's design, it may lead to savings in time and money as well as improvement of the
quality of works. These alternative proposals may be submitted at the tendering stage or during
the course of the works. However, in the following context, I will concentrate on the merits,
demerits and procedures of those proposals submitted during tendering.

2.0 MERITS OF ALLOWING ALTERNATIVE PROPOSALS

Allowing alternative proposals is advantageous when the method of construction or

form of structure is a major consideration of a scheme. When the works nature is in the area of
speciality of a contractor, he can contribute better ideas in the use of new construction methods
and materials through his long-accrued experience. By modifying the Engineer's design to adapt
to his available resources and expertise, he can offer to construct the works at a very competitive
price while maintaining the functional requirements and quality of the works.

For large capital projects of international interest, allowing alternative proposals may
attract large foreign contractors to bring in advance technology both in terms of better materials
and more efficient construction methods. This advanced technology has a definite advantage in
enhancing the technical standard of the local construction industry.

As the contractor formulates his own design, he will be more aware of the
construction sequence and the possible difficulties. He will hence be in a better position to tackle
promptly any problems that arise. He can also work out a more realistic works programme and
control the activities in an effective way. Delay and hindrance of the works will therefore be
markedly minimized and an early completion can be achieved.

Moreover, when the alternative proposal is accepted after careful scrutiny, the
occurrence of future claims for cost reimbursement or time extension can be minimized. As the
contractor devised the proposal himself, there would be little excuse for him to claim for extra
cost or time in relate to design faults or missing of details if the design criteria and requirements
have been mutually agreed.

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3.0 DISADVANTAGES OF ALLOWING ALTERNATIVE PROPOSALS

Allowing alternative design would inevitably increase the tender period and delay the
project commencement because time is required for the contractors to prepare and the Engineer
to check the proposals. This would increases the resources requirements of both the contractors'
and the Engineer's offices. Moreover, a failed tender will render the design work abortive and
incur financial losses to the contractor.

As most of the alternative proposals are prepared and assessed hastily during the
tender period, some of the details are bounded to have been left out by all parties. Besides, the
contractor may not have yet conceived a full and accurate understanding of the client's
requirements before submitting his tender. All these may lead to future disputes and claims.

In the case that the contractor has proposed the use of some newly developed
construction technology, the Engineer may not have the required expertise to check and
supervise these works. Extra cost may be incurred in the employment of a sub-consultant in
checking and supervising these works.

4.0 RECOMMENDED PROCEDURE FOR SUBMISSION

In order to compare all the tenders on a common basis, it is essential that every
tenderer, with or without alternative proposals, should submit a conforming tender in the format
prescribed in the tender documents without the incorporation of any alteration. Clear instructions
should be laid down in the Conditions of Tender, Conditions of Contract and Particular
Specification to allow for the submission of alternative designs by the contractors. Details of the
Engineer's requirements and the relevant information necessary for the preparation of alternative
design should be included in the tender documents. In addition, It may sometimes warrant to
extend the tender period, with the consent of the client, so that tenderers are given sufficient time
to prepare the schemes.

As it is generally not possible for the tenderer to submit the works proposal in full
details within the tight tendering schedule, the proposal should cover adequate information for
the Engineer's appraisal. A report listing all salient features of the alternate scheme should be
compiled to facilitate easy comparison with the Engineer's original design. Such report should
consist of a preliminary design based on the Engineers requirements, a method statement of
construction, a works programme with details of labour and plant schedule, a proposed method
of payment, cost estimates and supplementary specifications. The Engineer must also obtain
information concerning the contractor's experience, particularly on those related to the proposed
scheme, to illustrate his competence.

Independent checking of the technical aspects of the alternative design is also

recommended as the Engineer can save a lot of time in checking the design details and hence
reduce the tender analysis period.

5.0 RECOMMENDED PROCEDURE FOR ASSESSMENT

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 After all tenders have been checked for correctness and compliance with the
Conditions of Tender, the three lowest conforming tenders should be determined. If any
alternative tender sum is lower than any of the three, the suitability and merits of the alternative
designs shall then be established. During the tender assessment period, detailed discussions with
individual tenderers may be necessary and particular problems should be brought out to their
notice.

In assessing alternative proposals, the advantages and disadvantages should be

carefully scrutinized both on the technical and economical ground. Comparison of future
maintenance cost and appearance vis-a-vis the Engineer's design are necessary. The works
programme should match with the contractor's resources and not to be too optimistic. Alternative
proposal may impose additional site problems, upon which the corresponding effects and any
proposed counter measures should be closely examined. Some organisation, authorities or
neighbourhood may be affected by the schemes and frequent liaison is necessary to ensure that
the interest of all the parties are channelled. Particular attention should be paid to any
environmental impact arisen. Very often cost and time will be saved at the expense of
environmental conditions or public convenience.

As these alternative proposals will eventually form part of the permanent work, it is
imperative that the client be kept informed and approval be obtained from him if concessions
with the tenderers have to be made during the course of tender assessment. To ensure better
understanding, communication channels among client/engineer/tenderer have to be established to
bring any problem out into the light at an early stage.

Finally, a report embracing all the above considerations should then be submitted to
the client with a recommendation on the most appropriate tender for the contract.

6.0 CONCLUSIONS

It can be seen that there are certain merits and demerits in allowing contractors to
submit alternative proposals which involve modification to the Engineer's design of works. The
Engineer should compare all the factors to see if the savings in time and cost can justify the
adoption of an alternative scheme. However he should borne in mind that contractors, as any
other business man, have strong desire in striving as high a profit as possible in running a
project. Thus the Engineer must ensure that there is no trade off with the sacrificing of the
quality of the works, the public's interests and the safety standard. In preparing the contract
document, clear instructions are important to give guidance to contractors who wish to submit
alternative design. Furthermore, the Engineer must check the feasibility of such modifications
with due regards to technical and functional requirements, overall economy, public convenience
and environmental impacts.

(1317 words)

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 SUMMARY

1.0 INTRODUCTION

- different options available in achieving the same purpose.

- saving of time and money or improved quality

2.0 MERITS

- better ideas in the use of new construction methods & materials

=> very competitive prices
- enhancing the local construction industry
- contractor in a better position to solve site problems & can organise a more realistic
works programme and control the activities
- little excuse for the contractor to claim for extra cost on design faults

3.0 DISADVANTAGES

- increase the tender period and delay the project commencement

- proposals are prepared and assessed hastily => disputes and claims
- Engineer may not have the expertise to check and supervise these works

4.0 PROCEDURES FOR SUBMISSION

- should submit conforming tender with alternative bid

- give clear instructions, details of the requirements and relevant information to the
contractors.
- may extend tender period for tenderers' preparation of submissions
- request any information which facilitate engineer's assessment
- the proposal should cover adequate information for the Engineer's appraisal => give
salient features
- essential coverage may include but not limited to :
- preliminary design
- proposed method of construction
- works programme
- plant schedule
- method of payment
- cost estimate
- specifications
- contractors relevant experience in proposed alternative design

5.0 PROCEDURES FOR ASSESSMENT

- check for correctness and compliance

- detailed discussion with individual tenderers

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- check on technical, economical and environmental feasibility
- check future maintenance cost and appearance
- channel the interest of all parties
- client should be kept informed of the situation
- final recommendation

6.0 CONCLUSIONS

- compare all the factors

- no trade off with the lowering of quality and safety standard
- clear instruction in contract documents
- check feasibility on technical and functional requirements, overall economy and
environmental impact