Department of Defence - Defence Infrastructure Panel 2014 - 2017 - Scope of Services

SCOPE OF SERVICES - COST PLANNING/ QUANTITY

SURVEYOR SERVICES
1. Services Required

1.1 The Consultant may be required to provide cost estimation and cost planning services at
various stages of the Project.

1.2 The Services may include any or all of the following:

(a) development of pre-tender cost estimates for the Project;

(b) development and refinement of the Project's financial year estimate.

(c) development and maintenance of the Cost Plan for the Project;

(d) development and refinement of Net Personnel Operating Costs (NPOC);

(e) development and refinement of tender documentation relating to cost and price
based on those included in the Project Contracts;

(f) review and assessment of Cost Plans provided by Project Contractors and
Other Contractors;

(g) valuation of claims under Project Contracts; and

(h) other, related cost planning services.

2. Pre-tender cost estimates

The Consultant will produce and provide to the Commonwealth a pre-tender estimate of
the cost of the relevant services or the Works in accordance with the format/template
provided by the Commonwealth (or if no format/template is provided by the
Commonwealth, a format/template approved by the Commonwealth's Representative) , as
amended from time to time. and the methodology provided in its Project DCAP.

3. Financial year estimate

3.1 The Consultant [is required/is not required] to assist the Commonwealth to develop and
refine the Project's financial year estimate each financial year, including by having regard
to information provided by Project Contractors and in accordance with the methodology
provided in its Project DCAP.

4. Cost Plan

4.1 The Consultant must prepare and maintain an overall "Cost Plan" for the Project in
accordance with the format/template provided by the Commonwealth (or if no
format/template is provided by the Commonwealth, a format/template approved by the
Commonwealth's Representative) , as amended from time to time. and the methodology
provided in its Project DCAP. This includes co-ordinating and integrating the information
provided by Project Contractors.

5. NPOC

5.1 The Consultant [is required/is not required] to develop and refine the Project's Net
Personnel and Operating Costs (NPOC) for the purpose of the Detailed Business Case.

5.2 If the Consultant is not required to develop and refine the Project's NPOC, Consultant may
be required to independently verify the NPOC estimate produced by any Project
Contractor.

CUFooterText 1
Department of Defence - Defence Infrastructure Panel 2014 - 2017 - Scope of Services

5.3 If the Consultant is required to develop and refine the Project's NPOC, the Consultant
must:

(a) co-ordinate and integrate the information provided by Project Contractors;

(b) provide the Project NPOC at each Milestone in accordance with the cost
confidence required at that Milestone in accordance with the format/template
provided by the Commonwealth (or if no format/template is provided by the
Commonwealth, a format/template approved by the Commonwealth's
Representative) , as amended from time to time and the methodology provided
in its Project DCAP;

(c) have regard to the maintenance requirements of infrastructure (both new and
established) over the life of the structure;

(d) provide detailed planning cost estimates of infrastructure options. Planning cost
estimates are required to provide an indication of likely total construction
costs;

(e) liaise with relevant Commonwealth officers to obtain sufficient data relating to
the development or refinement of NPOC; and

(f) in the absence of applicable relevant data, use accepted industry rates and
practice to determine the NPOC.

5.4 The Consultant will identify broad levels of investment for the proposal based on the
following considerations as applicable:

(a) staff numbers in facility;

(b) capability to be accommodated;

(c) building footprint;

(d) remediation costs;

(e) net operating costs;

(f) ecologically sustainable development; and

(g) specialist consultancies.

5.5 In developing or refining NPOC, the Consultant will provide recommendations on suitable
allowances for items including:

(a) energy consumption;

(b) tariffs;

(c) square metre rates for applicable garrison support services;

(d) major maintenance;

(e) other Whole of Life (WOL) implications arising from the Design
Documentation; and

(f) work health and safety compliance.

5.6 If the Consultant is required to develop and refine the Project's NPOC, the Consultant
acknowledges and agrees that the final NPOC estimates require endorsement by the
relevant approving authority.

6. Development and refinement of tender documentation relating to cost and price

CUFooterText 2
Department of Defence - Defence Infrastructure Panel 2014 - 2017 - Scope of Services

6.1 The Consultant will assist the Commonwealth to develop uniform tender documentation
(eg tender schedules) and provide outline cost estimates for the cost associated with
construction of the Works for the following Project Contracts:

[insert].

7. Review and assessment of Cost Plans provided by Project Contractors and Other
Contractors

7.1 The Consultant will provide analysis of the Cost Plan prepared by the following Project
Contractors and Other Contractors including:

(a) adequacy of the allowance to achieve the Works; and

(b) appropriateness of rates used to develop the Cost Plan,

[insert].

7.2 After completing the analysis, the Consultant will provide recommendations (in a "Cost
Plan Report") to the Commonwealth regarding:

(a) opportunities to obtain efficiency;

(b) suggested alternatives the Commonwealth could reasonably put forward as a

basis of negotiation, and

(c) key areas of risk in relation to each Cost Plan.

7.3 The Consultant acknowledges and agrees that the Commonwealth may provide the Cost
Plan Report to Other Contractors.

7.4 The Consultant may be required to attend on the Commonwealth to discuss the analysis
and recommendations contained in the Cost Plan Report.

7.5 The Consultant may be required to attend on the Project Contractor to collaborate on issues
for resolution between the Commonwealth and the Project Contractor, including those
identified in a Cost Plan Report.

8. Valuation of claims under Project Contracts

8.1 The Consultant will provide advice and assessments of Project Contractor’s claims for:

(a) proposed price changes in response to Variation Price Request or Variation

Orders or other provisions of the Project Contracts; and

(b) payment.

9. Attendance at workshops/reviews

9.1 The Consultant will attend design review workshops at [the following Milestones/at the
following times]:

[insert].

9.2 The Consultant will attend value management workshops at [the following Milestones/at
the following times]:

[insert].

9.3 The Consultant will attend risk management workshops at [the following Milestones/at
the following times]:

[insert]

CUFooterText 3
Department of Defence - Defence Infrastructure Panel 2014 - 2017 - Scope of Services

10. Support to negotiations

10.1 The Consultant will provide all necessary Cost Plan support to the Commonwealth to
transition Project Contracts from the Planning Phase to the Delivery Phase (eg. achieve
Planning Phase Agreement).

11. Skills

11.1 The Consultant will ensure the Services are undertaken by people who hold a qualification
in an appropriate tertiary degree course in quantity surveying, however described, and who
have undertaken work experience which qualifies them for membership of the Australian
Institute of Quantity Surveyors.

11.2 The Consultant will carry out the Services based on accepted practices and its knowledge
and understanding of the building and construction industry.

11.3 In making its assessments and estimations, the Consultant will have regard to:

(a) local market conditions and risks that may account for fluctuations;

(b) proposed material selection and opportunities to manage value in the design;

(c) the design against the functional requirements for opportunities to manage
value;

(d) the cost of compliance with Statutory Requirements, including the WHS
Legislation; and

(e) whole of life performance and alternatives that may assist to manage value.

12. [For other potential Scope of Services, see PM/CA (Planning). Eg start up activities,
early services, meetings, program wide activities.]

13. [If Services are to be phased (eg Initial Planning Phase and Planning Phase, then
Delivery Phase), see PM/CA (Planning) and PM/CA (Delivery).]

14. Interpretation

Unless the context otherwise requires, capitalised terms in the Scope of Services or Brief
will have the meaning given to them by the Defence Infrastructure Panel 2014-2017 Terms
of Engagement, Panel Conditions, Letter of Acceptance, or the meaning given to them by
the Commonwealth as published on the Defence Estate Quality Management System
(DEQMS) website (http://www.defence.gov.au/estatemanagement), from time to time.

CUFooterText 4