2018-03-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                    6 MARCH 2018


The tender evaluation panel undertook an assessment of the tender submissions from the following
respondents, which are listed in alphabetical order:
1)    arete Australia, a division of Kane Constructions;
2)    Midson Construction (Qld) Pty Ltd t/as Midson Construction.
The tenders were evaluated using the following criteria:
    Capability and resourcing;
    Contract experience and track record;
    Timeline and methodology;
    Quality;
    Health and safety;
    Environment and sustainability;
    Contribution to local economy; and
    Price.
The two tender prices submitted were $1,649,850.00 (arete) and $1,833,706.05 (Midson),
excluding GST. Midson also offered a reduced, alternative price of $1,733,446.05 based on an
alternative scope to select elements. However, the panel assessed this as unacceptable as it
unreasonably compromised a number of key design outcomes required from the project.
The tender evaluation team has finalised tender evaluations and further clarifications with arete
Australia and considers that tender to be the most advantageous to Council, and presents the best
value for money.
The tender submission from arete Australia is favourable as they have significant previous
experience with construction of similar projects, a strong track record, they are highly capable, and
have the necessary resources to meet Council’s program to complete these works by October
2018.

4.    Programme & Next Steps
Pending Council approval, arete Australia propose to complete design activities and construct the
project, inclusive of wet weather allowances, within 26 weeks. There is a targeted commencement
of works at the beginning of April 2018 and practical completion to be achieved before the end of
September 2018, in time for Council to begin re-commissioning the library. The programme is
based on staging the construction works so that all activities are completed prior to the summer
holiday period.

5.    Construction Management and Inspections
Under the design-and-construct delivery model, Council will maintain the overall Project
Management role. This will be supported by an externally appointed superintendent. Specialist
architectural and engineering consultants, appointed by the contractor and overseen by Council,
will progressively inspect the works in order to ensure project objectives are met.

Finance
Council has allocated a budget of $1.1 million (excluding GST) in the current capital budget to allow
commencement of construction and other project-related activities, with the balance for project
completion included in the 2018/19 year of the draft 5-year capital program. The overall project
refurbishment budget is inclusive of a number of other separate activities that do not form part of
this tender, including: procurement and installation of RFID technology, purchase of select loose
furniture, and temporary library relocation activities.
In addition, Queensland Government Grant-funding of $805,954.20 was made available for certain
eligible items in September 2017 for the purposes of construction. This funding is 60% of the total
construction cost and was based on a preliminary estimate made by Council at the time and prior
to design finalisation and construction tendering of $1.34 million.

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