2015-05-04 Attachment 1 to Item 1 General Committee Agenda - MCU14 0009 Referral Agency Response

GENERAL COMMITTEE MEETING AGENDA                                                        4 MAY 2015


Upon close of tenders, a further tender submission was received as follows:

Contractor                                                   Tendered Price
Hutchinson Builders                                          $1,131,558.85
Delaney Constructions                                        Did not tender
JMAC                                                         Did not tender

All three contractors showed initial interest, however, following a more detailed review of the
documentation, two of the three contractors withdrew from making a submission. The reasons
were similar to the initial tender in that the works did not fit within existing commitments ahead of
the end of financial year.

A post tender comparison of the consultant’s estimate and Hutchinson Builders price indicates
that the cost for works is well aligned with the estimate however the contractor has priced in
higher preliminaries and overheads for dealing with the constraints of constructing within the
residential area. Post tender discussions have identified items within the contractor’s allowances
that may be negotiated during the contract with an initial $15,000 saving offered.

Hutchinson Builders comprehensively addressed the requirements set out in the tender
specification. On this basis, the evaluation team considers the offer from Hutchinson Builders Pty
Ltd to be most advantageous to Council.

Pending approval from Council to award the contract, it is understood that that the preferred
contractor, Hutchinson Builders will be able to commence onsite within 48hours. The duration of
the project is estimated at 11 weeks, weather permitting and unforeseen delays.

Previous Council Consideration

Nil

Finance & Risk

Noosa Council’s budget for Shire Wide Flood Mitigation is $2,802,970. The budget component
for the Daintree Estate Flood Mitigation project was $1,295,000 based on an estimate developed
at early concept development in March 2014.

A breakdown of the contract and other costs compared with the project budget as a component
of the total budget is shown below;


Shire Wide Flood Mitigation (Daintree Estate component)

Hutchinson Contract Price             $1,116,558.85 (Price reflects initial negotiated savings)
Contingency 5%                        $55,827.94
Staff allocation                      $7,500
Design engineer attendance            $5,250
Superintendent                        $7,500
Cost to date (Stage 1)                $250,000
SUBTOTAL                              $1,442,636.79

Budget component                      $1,295,000.00

NET    Shortfall                      -$147,636.79 (say $150,000)




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