MANAGEMENT

 

SYSTEM

 

 

Standard Operating

Procedures

 

Revision Control

 

Issue Date

 

Day

16

30

 

 

 

 

 

 

Month

09

06

 

 

 

 

 

 

Year

12

13

 

 

 

 

Ref

Title

Owner

Revision

SOP-0

Introduction & Use of Manual

 

0

1

 

 

 

 

SOP-1

Marketing

Senior Business Development Manager

0

1

 

 

 

 

SOP-2

Bid Preparation

General Manager, Group Projects

0

1

 

 

 

 

SOP-3

Bid Review

General Manager, Group Projects

0

1

 

 

 

 

SOP-4

Bid Submission

General Manager, Group Projects

0

1

 

 

 

 

SOP-5

Post Tender Activities

General Manager, Group Projects

0

1

 

 

 

 

SOP-6

Appointing the Project Team

General Manager, Group Projects

0

1

 

 

 

 

SOP-7

Arranging Bonds & Insurances

Project Manager

0

1

 

 

 

 

SOP-8

Project Review

General Manager, Group Projects

0

1

 

 

 

 

SOP-9

Handover Meeting

General Manager, Group Projects

0

1

 

 

 

 

SOP-10

Controlling Job Documents

Commercial Manager

0

1

 

 

 

 

SOP-11

Preparing & Managing the Project Management Plan

General Manager, Group Projects

0

1

 

 

 

 

SOP-12

Safety & Health Management

Safety, Quality & Training Co-ordinator

0

1

 

 

 

 

SOP-13

Quality Management

Safety, Quality & Training Co-ordinator

0

1

 

 

 

 

SOP-14

Environmental Management

 

0

1

 

 

 

 

SOP-15

Planning & Tracking the Job

General Manager, Group Projects

0

1

 

 

 

 

SOP-16

Resourcing the Job

General Manager, Group Projects

0

1

 

 

 

 

SOP-17

Purchasing – Project Materials & Services

Commercial Manager

0

1

 

 

 

 

SOP-18

Awarding & Administering Subcontracts

General Manager, Group Projects

0

1

 

 

 

 

SOP-19

Financial Management

Commercial Manager

0

1

 

 

 

 

SOP-20

Client Communication

General Manager, Group Projects

0

1

 

 

 

 

SOP-21

Managing the Work

General Manager, Group Projects

0

1

 

 

 

 

SOP-22

Internal Reports

General Manager, Group Projects

0

1

 

 

 

 

SOP-23

Completion Certificates, Retentions & Bond Release

Commercial Manager Group Projects

0

1

 

 

 

 

SOP-24

Post Contract Review

General Manager, Group Projects

0

1

 

 

 

 

SOP-25

Training 

Safety, Quality & Training Co-ordinator

0

1

 

 

 

 

SOP-26

Design

General Manager, Group Projects

0

1

 

 

 

 

SOP-27

Capital Purchases

General Manager, Group Projects

0

1

 

 

 

 

SOP-28

Personnel Management

Safety, Quality & Training Co-ordinator

0

1

 

 

 

 

SOP-29

Risk Management

General Manager, Group Projects

0

1

 

 

 

 

 

 

1    Introduction & Use of Manual

1.1   Purpose of the Manual

1.     To ensure that the [Building Bridges Ltd] Business Unit and the Projects it undertakes are managed in a systematic manner that:

1        ensures that the [Building Bridges Ltd] business unit is successful in meeting the objectives of it’s Business Plan,  and

2        delivers projects that meet or exceed customer requirements, and

3        delivers projects that meet or exceed the community’s environmental requirements

4        realises the profit potential of projects taking into account the importance of building long term customer relationships, and

5        facilitates the profitable involvement of other [Building Bridges Ltd] business units in major projects.

6        gives effect to the Corporate Quality Policy (particularly) and other Corporate Policies (generally)

7        assures compliance with legislative requirements

These Standard Operating Procedures are a blend of mandatory requirements (shall) and best practice advice. Whilst it is not intended that innovation and creativity be stifled by an inflexible implementation, employees should abide by these procedures unless there is good reason to deviate.

1.2   Sample Documents

 

1.3     Linked documents pre-fixed with an asterix risk are sample documents, all others are mandatory

1.4   Key Principles

1.   Customer Focus

2.   Leadership

3.   Involvement of People

4.   Process Approach

5.   System Approach to Management

6.  Continual Improvement

7.  Factual Approach to Decision Making

8.  Mutually beneficial Supplier Relationships

1.5   Context

 

 

1.6   Key Corporate Policies

 

 

 

1.7   Distribution of Manual

1.    The manual is planned to be available online. (In the interim, CD copies will be issued to all on the distribution list). Hard copies are neither issued nor controlled. Notification of revision shall be forwarded to the Group Project all email Alias.

1.8   Manual Composition and Use

1.   The Manual comprises procedures for 5 basic sections:

 

Category

Procedure Numbers

Fundamental Involvement

Procurement of Work

SOP-1 - SOP-5

Senior Business Development Manager/Bid Manager/Estimator

Managing Work

SOP-6 - SOP-23

Project Director/Project Manager

What did we learn & How can we improve

SOP-24, SOP-25

General Manager, [Building Bridges Ltd]/ Project Director/Project Manager/Estimator

Design

SOP-26

Bid Manager/Estimator

Administration

SOP-27 - SOP-30

Commercial Manager [Building Bridges Ltd], General Manager, [Building Bridges Ltd]

 

 

2.   Three key premises are:

 

1        The appointment of the Bid Manager (in SOP-1) and the Project Manager (in SOP-6) each with clear responsibility for the success of the each phase of the job.

2        Each job shall be set up with a Job File using the standard Job File System (SOP-10)

3        A Project Manager’s checklist <SOP-00A PM's Checklist.xls> has been developed and this shall be completed at the commencement of a contract.  This checklist lists the responsibilities for a Project Manager under this SOP and shall also include Conditions of Contract and any Special Condition responsibilities.

 

3.   In each section the following appears: 

1        Records: These are the completed quality records that shall be available as evidence of implementation of that procedure.

 

4.    Responsibilities are allocated to Functional Roles.

Any one person may fulfil one or more functional roles (for instance the Bid Manager may also be the Estimatorand may go on to be the Project Manager once a contract had been awarded.)

1.9   Delegation

1.   Notwithstanding delegation, the incumbent of the functional role shall remain responsible for the fulfilment of all procedures.

Whilst responsibility is allocated to a functional role (typically the Project Manager), it is implicit that many tasks will actually be delegated by the functional incumbent to other parties. Nevertheless, the functional incumbent remains responsible for ensuring that the procedure is followed.

1.10 Management Responsibility

1.   The GM, [Building Bridges Ltd] has the responsibilities of Quality Management Representative for the Business:

2        He is responsible for ensuring the continuing suitability and the implementation and improvement of the Quality Systems.  This applies both in terms of the company wide generic systems in addition to those specific to [Building Bridges Ltd].

3        In this role he is responsible for the integrity of the ISO 9001 Certified Quality Systems. Any changes to the scope of the systems affecting the certification, will be reviewed and advice given to the Safety, Quality & Training Co-ordinator  who in turn will advise the certification body.

4        As part of Management Review he will report to the CEO NZ Contracting in regard to the Quality Management System.

1.11 Definitions

Term

Definition

Cost Code

A unique budget cost code

EER

Environmental Effects Register

EMT

Environmental Monitoring Team

EQSM

Environmental Quality Systems Manager

ESCP

Erosion & Sediment Control Plan

FH

[Building Bridges Ltd] Limited

FM

Foreman

GMGP

General Manager, [Building Bridges Ltd]

ITP

Inspection and Test Plan

ITT

Invitation to Tender

PD

Project Director

PENG

Project Engineer

PMAN

Project Manager

PMP

Project Management Plan

PPI

Prospective Project Information

PQP

Project Quality Plan

SENG

Site Engineer

SQR

Standard Quality Record

SQT

Safety, Quality & Training Co-ordinator

Take-Off

Measurement of Quantities

TBA

To be advised

1.12 Review

1.      A SOP Review Committee shall be established to review these Standard Operating Procedures on an annual basis.

1.13 Audit

1.   The overall business system documented by these SOP’s shall be audited in accordance with the Audit Schedule attached hereto.

1.14 Records

1        Minutes of SOP Review Committee

2        Audit reports

 

2    Marketing & Bid Initiation

2.1   Purpose

1.    To procure new work via

1        Direct Negotiation

2        Competitive Bidding

3        Contract Variations

2.    To identify potential partners whose attributes compliment and strengthen the company’s own attributes.

2.2   Procedure

2.2.1   Monitoring of Opportunities

1.   The GM, [Building Bridges Ltd] shall maintain the Register of forthcoming Major Projects. <SOP-01C Projects Database.xls>

2.   In consultation with the GM, [Building Bridges Ltd], the Senior Business Development Manager shall appoint a Bid Manager who shall be responsible for monitoring the project status, documenting the scope of works and maintaining contact with the client and/or consultant.

2.2.2   Identification of Partners

1.   In consultation with the GM, [Building Bridges Ltd], the Senior Business Development Manager shall identify what partnerships may strengthen the company’s team (or be beneficial or expedient in other ways).

Early identification of the scope of the project is critical to identifying and linking with appropriate design and/or construction partners

2.2.3   Approval to Proceed with Major Contract procurement

1.   Project Authority Procedures <SOP-01E Project Authority Procedures.doc> sets out the approval process for commitment to major contracts. A  document outlining the scope of works and proposed alignment with partners shall be submitted on form Major Project Information <SOP-01F Major Project Information.doc> for approval as follows:

For Projects up to $30 million - CEO NZ Contracting for EMG approval

For Projects over $30 million - to the Managing Director to obtain FH Board of Directors approval

2.2.4   Joint Ventures

1.   The formation of a Joint Venture arrangement requires the approval of the FH Board of Directors (Project Authority Procedures <SOP-01E Project Authority Procedures.doc>).

2.   The GM, [Building Bridges Ltd] or the Senior Business Development Manager shall negotiate with the intended partner as to the form of the any planned association.

3.   Where a joint venture is proposed, a Joint Venture Pre-Bid agreement  <SOP-02D JV Prebid Agreement.doc> outlining the proposed form of the Joint Venture and the respective responsibilities of each partner in the preparation of the bid will be executed.

4.   Within the context of a Joint Venture, these SOP’s may need to be modified or adapted to suit the needs and practices of the Joint Venture partner. Any such changes should be identified by the Senior Business Development Manager and notified to all affected parties.

2.2.5   Registration of Interest

1.   When required, the Bid Manager shall prepare and submit a detailed Registration of Interest (or Statement of Interest & Ability).

2.2.6   Document Collection

1.   The Bid Manager arrange for document collection, complete details on the PPI form (SOP-1A), and establish a Bid file as per SOP-10.

2.   When required, the Bid Manager shall nominate document deposit details on the PPI screen (SOP-1A) and generate a Request for Document Deposit (SOP-1B). The Request for Document Deposit shall be forwarded to the Commercial Manager [Building Bridges Ltd].

2.2.7   Preliminary Decision to Bid

1.   The PPI form shall be completed by the Bid Manager as detailed in SOP-02. The completed PPI shall be emailed to the GM, [Building Bridges Ltd].

2.   Upon receipt of documents, the GM, [Building Bridges Ltd] shall decide whether to bid based on:

1        Assessment of competitiveness

2        conformance with the current business plan

3        availability of construction resources

4        availability of bidding resources

5        financial viability and reputation of the client

3.   If the GM, [Building Bridges Ltd] wishes to proceed with the bid, he shall confirm the existing or appoint a new Bid Manager who shall have overall responsibility for the preparation of the bid.

2.2.8   Design & Build

2.   For appointment based on their relevant experience, track record and expertise in the type of work under consideration. He shall engage in discussions with the preferred design consultant and reach an Agreement in Principle on the approximate scope of work, subconsultant requirements and fee structure for all phases of the designer’s inputs. The Agreement in Principle may be verbal provided this is followed promptly by a formal Heads of Agreement <SOP-01D Heads of Agreement.doc>. Early selection is important to ensure that the best consultant is chosen for the particular contract. This may take place up to a year, or more, in advance of major tenders.

3.   The GM, [Building Bridges Ltd], or his delegate, shall reach a similar Agreements in Principle with key subconsultants. In this case, the preferred design consultant shall be provisionally nominated as the Head Consultant.

4.   As soon as the scope and tender evaluation method have been reasonably well understood, the GM, [Building Bridges Ltd], or his delegate, shall enter into a Heads of Agreement (HoA) with the preferred design consultant. This HoA shall reflect, as closely as is possible at that early stage, the conditions of the future Professional Services Agreement (long form <SOP-26A ACENZ long form.doc> or short form <SOP-26B ACENZ short form.doc> with Appendices <SOP-26C Professional Services Agreement Appendix.doc>).

 

 

2.3   Records

1        (SOP-01C) Register of forthcoming Major Projects.

2        (SOP-02D) Joint Venture Pre-Bid Agreement

3        (SOP-26A) ACENZ Long Form Professional Services Agreement

4        (SOP-26B) ACENZ Short Form Professional Services Agreement

5        (SOP-26C) Professional Services Agreement Appendix

 

3    Bid Preparation

3.1   Purpose

1.   To ensure that Bids submitted are an accurate estimation of costs and that risks are identified and appropriate allowance made.

2.   That bids are prepared in a manner that facilitates budget preparation for successful bids.

3.2   Procedure

3.2.1   Bid Planning

1.   The Bid Manager shall assemble the bid team including, as appropriate:

1        the Estimator - responsible for the preparation of the bid price

2        the Design Co-ordinator - responsible for management of external design consultants.

3        the Submission Coordinator - responsible for preparation of the submission document

2.   The Bid Manager shall schedule deliverable requirements for all members of the bid team.  This shall generally be in the form of a bid programme and shall provide sufficient time for milestone reviews, final changes, compilation and binding.

3.   The Bid Team shall review the documents, undertake a preliminary appraisal of the project and confirm the details on the PPI form (SOP-1A).

4.   The Bid Manager shall prepare a Bid Management Plan <SOP-02I Bid Management Plan.doc> for all bids commensurate with the scope of the project. The Bid Management Plan shall document the bid team structure, roles and responsibilities, bid office/s locations/s, bid programme, secretarial support, document control, drawing register and IT requirements such as hardware (PC’s, printers, servers), software (additional licences, web-based server for communication with more than one office). The Bid Management Plan shall be updated as required and circulated to all bid personnel so that they are informed about their role and its relationship with others in the bid.

5.   The Bid Manager shall prepare a summary detailing cost, risk P & G, recommended margin prior to close-off. (Project Authority Procedures <SOP-01E Project Authority Procedures.doc>)

 

3.2.2   Bond Requirement Notification

1.    The Bid Manager shall complete the Bond Information Worksheet <SOP-02H Bond Information Worksheet.doc> and email it to the Company Secretary in Dunedin together with a copy of the “Form of Bond”.

3.2.3   Insurance Notifications

1.   The completed PPI form together with a completed Insurance Information Worksheet <SOP-02G Insurance Information Worksheet.doc> shall be emailed to the Company’s Insurance Brokers together with:

1        Scope of Work

2        General Layout Drawings

3        Insurance Provisions of the Contract

3.2.4   Preliminary Review & Budget Estimate

1.   The Estimator shall review the plans & specifications and prepare a preliminary budget estimate. The budget estimate should:

1        Indicate likely overall cost

2        Identify critical elements

3        Consider potential areas for innovation and value engineering

4        Identify Risks

3.2.5   Clarifications

1.   The Estimator shall seek clarification of any issues that he considers may be unclear or ambiguous in the contract documents.

It is a matter of judgement whether communication in this regard is better on a formal or informal basis. Responses to formal communications are likely to be distributed to all tenderers.

3.2.6   Alternatives

1.   In consultation with the GM, [Building Bridges Ltd], the Bid Manager shall conclude which, if any, alternatives should be progressed.

The Bid Manager shall identify the design requirements and control the design process in accordance with SOP-26.

3.2.7   2.2.7               Subcontractor Invitations to Tender

1.   In consultation with the GM, [Building Bridges Ltd], the Bid Manager shall decide which components shall be solicited from subcontractors:

1        solely from internal sources

2        from both internal and external sources

3        solely from external sources

2.   The Bid Manager  shall prepare Invitations to Tender (ITT) for suppliers and subcontractors as appropriate.

3.   These ITT’s (SOP-2A) should detail the scope of work, what documentation is to be sent out, and what documentation is available for inspection at our offices. Invitations to Tender should be sent out at the earliest practicable time to enable subcontractors have sufficient time to prepare their bids.

Where appropriate, advertisements should be placed for new suppliers and subcontractors in the “tenders” section of the national or local area newspaper

3.2.8   Site Visits

1.   The Bid Manager and/or the Estimator shall visit the site prior to submitting the bid  and collect appropriate information.

2.   Photos and/or videos should be taken during the site visit whenever possible.

3.2.9   Take-Off’s

3.2.9.1    2.2.9.1           Lump Sum:

1.   A detailed take-off must be performed and checked for all items of work.

3.2.9.2    2.2.9.2           Measure & Value

1.   Quantities should be taken off for all major items to assess unmeasured items (eg form work areas, rebar quantities) and to forecast where items are under and over measured. Major discrepancies should be noted and raised during Bid Review (SOP-03)

3.2.9.3    2.2.9.3           Design & Construct

1.   Wherever practicable, quantities shall be taken-off by [Building Bridges Ltd] staff familiar with the nature of the works.

Although Design Consultants may offer their services in this regard, it is more likely that [Building Bridges Ltd] staff will better appreciate the construction methodologies to be employed, a number of which may impact on the quantities of work.

3.2.10 Records

1.   The Bid Manager  shall establish and maintain a bid file and the first four sections of the Job File System (SOP-10A) shall be used.

2.   All relevant information from any Notice to Tenderer’s (NTT’s) received should be physically transferred into the bid documents, and the face sheet endorsed with the number, date of incorporation and initialled by the Bid Manager .

3.   The original of any NTT’s should be filed in the Job File.

4.   Copies of all ITT’s sent out shall be filed in the Job File and incoming quotations shall be filed directly behind the original ITT.

5.   Original copies of the Bid Documents shall be filed in the Job File.

6.   Superseded documents shall be retained and marked clearly as superseded with a superseded date.

3.2.11 Preliminary Program

1.   The Estimator shall prepare a preliminary program (time schedule) using CPM scheduling methods outlining the likely construction period and highlighting areas needing additional effort or the mobilization of additional resource. He should also identify the critical tasks key to the successful project delivery.

Many Estimators prefer to put a lot of time into this phase and find that once a detailed program has been prepared, the actual pricing of the work is relatively straightforward.

3.2.12 Pricing

1.   All bids for new work shall be prepared using the division’s computerised estimating system. All items shall be priced in detail at cost (Zero Based Cost Estimate).

2.   Clarifications and Tags should be identified and detailed during the course of estimate preparation.

3.   Risks should also be noted during this phase and listed in the Risk Analysis Form <SOP-02F Margin.Risk.Commercial.xls> as they are identified.

4.   The Bid Manager  shall take into consideration the effects of Notice to Tenderers and adjust the bid accordingly.

The relevant sections of both the technical specification and the method of measurement and basis of payment (MOMBOP) clauses should be read prior to pricing an item.

5.   The Estimator shall assess Subcontractor and supplier quotations using the Subcontract Adjudicator (CCS System) or Subcontractor Comparison Sheet <SOP-02B Subcontractor Comparison Sheet.xls>. The cost of any tags should be carefully evaluated.

3.2.13 Non Priced Attribute Submission

6.   The Submission Co-Ordinator shall plan the structure of the submission document in terms of dividers and cover formats, and shall arrange for the early preparation of the folders, dividers, tabs, covers and spines.

Presentation of the submission document shall be considered, with as much use of colour, photographs, graphics, tables, and illustrations as possible.  One such feature should be targeted for each page, space permitting.

 

7.   The Bid Manager shall determine the skills required to carry out the contract, as well as the Team Structure, including subcontractors.

8.   The Submission Co-Ordinator shall ensure that all team CV’s are up to date and specifically focussed on the particular bid, and that they are consistent with the descriptions provided in Technical and Management Skills.

9.   The Bid Manager  shall develop a checklist of key issues to be confirmed with the Principal or tender evaluation team, wherever possible. This is particularly important for innovative ideas that have not been used previously, but includes such issues as confirming the acceptability of key personnel and subcontractors.

Attributes should:

Be concise

Highlight how potential weaknesses have been addressed (instead of covering them up)

Exploit our strengths

Not merely specify that we will achieve compliance, but rather how we will achieve compliance - check with the “so what” question

Focus on benefits to the Principal, not necessarily benefits to [Building Bridges Ltd]

 

3.2.14 Risk Management

1.   The Estimator shall prepare a risk analysis for all projects estimated.  Attached is a Sample risk analysis report <SOP-02F Margin.Risk.Commercial.xls>.

3.2.15 Joint Venture Operations

1.   Approval shall be obtained from the FH Board of Directorsprior to proceeding with any Joint Venture proposal.

2.   A draft Joint Venture Agreement <SOP-02E JV Agreement.doc> shall be agreed with any Joint Venture party prior to submission of the Joint Venture bid.

3.2.16 Mark up, Margin, Contingency, Profit

1.    Profit, Overhead, Risk and Contingency should be calculated by Bid Team and spread through the rates and P & G items as appropriate.

No simple rule can be established for the calculation of suitable margin, but in suggesting a margin, the Bid Manager should consider a host of factors including sales margin, return on assets, risk coverage and market conditions. SOP-2F <SOP-02F Margin.Risk.Commercial.xls> provides some guidance on the calculation of a minimum margin.

3.3   Records

·     (SOP-02A) Invitation to Tender Letters

·     (SOP-02B) Subcontractor Comparison Sheets

·     (SOP-02C) Site Visit Checklist

·     (SOP-02D) Completed Joint Venture Pre-Bid Agreement

·     (SOP-02E) Draft Joint Venture Agreement

·     (SOP-02F) Completed Risk Analysis

·     (SOP-02G) Insurance Information Worksheet

·     (SOP-02H) Bond Information Worksheet

 

 

 

4    Bid Review

4.1   Purpose

1.   To ensure that tenders are reviewed for accuracy and completeness prior to submission.

2.   To evaluate risks and determine the commercial strategy.

3.   To approve the margin applied to the Bid

4.2   Procedure

4.2.1   Price Review

1.   The Bid Manager shall arrange a time and location for a bid review meeting. (SOP-1A)

2.   The Bid Manager shall agree with the GM, [Building Bridges Ltd] the composition of the Bid Review Panel, the appointment of a Bid reviewer and advise participants accordingly. (Project Authority Procedures <SOP-01E Project Authority Procedures.doc>)

Ideally this will also include the prospective Project Manager where known in advance.

3.   A comprehensive review shall be conducted 5 days before the tender closes in accordance with the Bid Review Agenda <SOP-03A Bid Review Agenda & Minutes.doc> and critical items will/shall be minuted.

4.2.1.1    3.2.1.1           Hard Copy Method

1.    The Bid Manager shall print out a hard copy of the complete estimate. 

2.    The review copy of the estimate shall be marked up with the changes agreed by the Bid Review Panel.

3.    On completion of the bid review, the Bid Manager  shall update the computerised estimate in accordance with the marked up review copy of the estimate. The marked up bid review copy of the estimate shall be filed in the bid file.

4.    When all amendments have been made to the computerised estimate, the Bid Manager  shall initial the "amended" field on the front page of the review copy of the estimate.

4.2.1.2    3.2.1.2           Data Show Method

1.   The estimate will be reviewed "live" using the Data Show Projector and agreed changes incorporated directly into the bid during the meeting. After this review, the Bid Manager shall print out a hard copy of the complete estimate. This copy is endorsed as the "Review Copy" and is filed in the Bid File.

4.2.2   Risk Evaluation

1.   The Risk Analysis Report <SOP-02F Margin.Risk.Commercial.xls>  will be reviewed by the Bid Review Panel and an assessment of the Projects Risks and Opportunities made. This assessment will be taken into consideration when setting the bid margin.

4.2.3   Establishment of Bid Margin

1.   The GM, [Building Bridges Ltd] in consultation with the Bid Review Panel shall set the bid margin.

4.2.4   Review of Bid Submission

1.   The Bid Manager and the Bid Team shall review the Bid Submission for accuracy, and compliance with the Bid Requirements.

4.2.5   Review of Construction Program

1.   The Bid Manager shall review the Bid Construction Program for accuracy, achievability and compliance with the Bid Requirements

4.3   Records

1        (SOP-03A) Bid Review Minutes

2        (SOP-02F) Risk Analysis

5    Bid Submission

5.1   Purpose

1.   To ensure that the intent of the Tender inquiry is fully met and all requirements of the Instructions to Tenderers are complied with.

5.2   Procedure

5.2.1   Submission

1.   The Bid Manager shall ensure that the submission includes all required Documents

5.2.2   Covering Letter

1.   The Bid Manager shall prepare a covering letter and executive summary if appropriate to be submitted with the bid. Unless otherwise provided within the bid, the covering letter shall include all tags, clarifications and conditions of the bid, together with an acknowledgement of Notice To Tenderers received.

5.2.3   Schedule of Prices

1.   Where appropriate, the client’s schedule shall be printed out for incorporation into the bid submission

5.2.4   Form of Tender

1.   If included in bid documents, the client’s Form of Tender shall be completed manually and signed by the Bid Manager, or his/her nominee.

5.2.5   Tender Schedules & Submittals

1.   The Bid Manager  shall check the printed schedule against the client supplied schedule for transcription errors and missed NTT amendments prior to submission.

2.   Client supplied tender schedules; attributes, bid program and other client requested information shall be completed as appropriate and bound into the bid submission.

3.   The Bid Manager shall make a full copy of the complete submission for retention in the bid file.

5.3   Records

1        Bid Submission

6    Post Tender Activities

6.1   Purpose

1.   To ensure that all post tender communications and negotiations are fully documented and resolved prior to award of contract.

6.2   Procedure

6.2.1   Requests for Bid Clarifications

1.   The Bid Manager shall document and respond to client requests for clarifications in consultation with the GM, [Building Bridges Ltd].

6.2.2   Successful Tenders

1.   The Bid Manager shall advise the Commercial Manager [Building Bridges Ltd] of the success of the bid and advise the appropriate persons of the Bond and Insurance requirements.

2.   The Bid Manager  shall assemble all bid documentation into the Job File System <SOP-10A Job File System.doc> for handover to the appointed Project Manager.

3.   In consultation with the Project Administration Manager, the Project Manager shall prepare a *Cost to Complete (CTC) <SOP-19C CTC Template2.xls>  in accordance with the Section 19.2.4.

6.2.3   Unsuccessful Tenders

1.   The Bid Manager shall archive both the electronic and physical bid files and arrange recovery of tender and/or document deposits.

6.2.4   Bid Evaluation

1.   The Bid Manager shall seek a formal debrief from the Client or the Client’s representative for both successful and unsuccessful bids

For major bids, the Bid Manager shall prepare for the debrief by developing a list of questions that seeks to determine both the positive as well as the negative aspects of the tender submission. This list of questions shall systematically cover every aspect of the bid submission including each non-price attribute and alternative. The Bid Manager shall send this list of questions to the tender evaluators in advance of the meeting to enable them to prepare meaningful reponses prior to the meeting.

The outcome from the debrief shall be recorded on *Bid Evaluation <SOP-05A  Bid Evaluation.doc> and circulated to all Projects personnel who are involved in writing bid submissions.

 

The purpose of this formal debrief is to learn from the previous bids so that we may reinforce good practices and improve on poor practices.  It also provides an insight into client and individual evaluator’s preferences in submissions.

6.3   Records

2        (SOP-5A) Bid Evaluation

3        (SOP-10A) Job File System

4        (SOP-19C) Cost to Complete

 

7    Appointing the Project Team

7.1   Purpose

1.   To ensure that a Project Manager is appointed and has clear responsibility for the success of the contract.

2.   To ensure that a project team is appointed to support the Project Manager.

7.2   Project Manager Appointment and Responsibilities

1.   The GM, [Building Bridges Ltd] shall appoint a Project Directorand a Project Manager as soon as possible after acceptance of the bid and prior to the handover meeting.

2.   The Project Team will be appointed by the Project Director in consultation with the Project Manager and the GM, [Building Bridges Ltd].

3.   The Project Director will be responsible for preparing a *Job Description <SOP-06A Job Description PM.doc>for the Project Manager.

4.   Division of responsibility amongst the project team members shall be clearly documented by the Project Manager.

5.   It is the responsibility of the Project Manager to prepare job descriptions for his/her staff.

 

Responsibilities will be typically documented in the *Project Management Plan (SOP-11) <SOP-11A Project Management Plan.doc>

7.3   Records

1        (SOP-06A) Job Description

2        (SOP-11A) Project Management Plan

8    Establishing Bonds and Insurance

8.1   Purpose

1.   To ensure that all Bonds, Insurances and Guarantees are in place where required by the Contract Documents.

8.2   Procedure

8.2.1   Bonds

1.   Where a Performance Bond or Bonds in Lieu of Retentions are required by the Contract the Project Manager shall advise the Company Secretary to execute the Bond arrangements as advised on the completed Bond Information Worksheet <SOP-02H Bond Information Worksheet.doc>. A copy of this shall be filed in the job file.

2.   Upon receipt of the Original completed Bonds, the Project Manager shall forward the original Bond Document under covering letter to the appropriate recipient and file a copy in the Job File.

3.   The Project Manager shall request release of Bonds, in writing, at the earliest appropriate time and forward copies of that request to the Commercial Manager [Building Bridges Ltd] .  See also SOP-23

4.   The Commercial Manager [Building Bridges Ltd]  shall periodically check that the Bonds have been released as required.

8.3   Insurance

1.   The Project Manager shall forward all insurance information from the contract documents to the Insurance Broker <mailto:This email address is being protected from spambots. You need JavaScript enabled to view it.> for actioning and request written confirmation that all necessary Insurance is in place where required. This confirmation shall be forwarded to the appropriate authority, with a copy filed in the Job File System <SOP-10A Job File System.doc>

2.   The Project Manager shall advise, and keep informed, the project’s Insurance Brokers of any event that may give rise to a claim under any policy.

8.4   Records

1        (SOP-07A) Bond Application/Release Form

2        (SOP-02H) Bond Information Worksheet

3        (SOP-10A) Job File System

9    Project Review

9.1   Purpose

1.   To monitor project performance against management objectives

2.   To provide direction for implementation of performance improvements

3.   To focus on problem areas and provide guidance to the site team in finding a solution

4.   To co-ordinate additional resource where required

5.   To identify and manage risks associated with the project

6.   To bring an extensive range of experience and knowledge to support the project team

9.2   Procedure

9.2.1   Review Team Appointment

1.   The GM, [Building Bridges Ltd] in consultation with the CEO NZ Contracting shall appoint a Project Review Team of 3 - 5 persons which will include the Project Director within 2 weeks of contract award. An experienced administration person will be one of the appointments to the team

2.   The Project Director will act as chairman of the Project Review Team who will have the following responsibilities:

1        Set *Review Agenda <SOP-08A Project Review Agenda.doc>

2        Appoint a person to keep meeting minutes

3        Co-ordinate meeting dates

4        Ensure reports are provided by the project team in an acceptable format and timeliness

9.2.2   Meetings

1.   The Project Review Team will meet monthly with the Project Manager and senior site staff.

2.   Meetings can be either on the Project site or by Teleconference.

3.   Minutes including action items with designated responsibility and time to complete should be distributed by email to the all participants within 5 days following the meeting.

4.   A report from the Project Manager shall be distributed to all Review Team members at least 1 full day prior to the scheduled meeting which will include:

·     Written report *Project Review Report <SOP-08B Project Review Report.doc>

·     Updated Construction programme showing progress to date for each task

·     Updated *Risk and Opportunity Register <SOP-02F Margin.Risk.Commercial.xls>

·  Financial report to end of previous month including *Cost to Complete <SOP-19C CTC Template2.xls> and cash flow.

Review members should be encouraged to add items of concern or interest to the agenda

9.3   Records

1        (SOP-8A) Review Agenda

2        (SOP-8B) Project Review Report

3        (SOP-02F) Risk and Opportunity Register

4        (SOP-19C) Cost to Complete

 

10 Handover Meeting

10.1 Purpose

1.   To ensure that all relevant contract information, including the Estimator’s intentions, are transferred to the Project Manager, and that the Project Manager fully understands the contract requirements and the strategies developed for project delivery during the Bid phase.

2.   This procedure may also be used to assist with any changeover in Project Management staff during the course of a project.

10.2 Procedure

1.   The Project Manager will obtain the Job File from the Bid Manager and review it prior to the Handover Meeting.

2.   The Project Manager will then arrange the Handover Meeting with the Bid Manager, the Project Director the Project Administration Manager and other key staff who were involved in the preparation of the bid, or who may be involved in the project.

3.   Where job appointments have been made, Engineers, Supervisors and other key job staff should be involved in the Handover Meeting.

4.   The suggested *Handover Meeting Agenda <SOP-09A Bid Handover Meeting Agenda.doc> is appended and shall be used by the Project Manager to record minutes of the Handover Meeting and to highlight the following:

1        meeting date and attendee’s

2        critical estimate assumptions (including productivity rates vs. resources)

3        project KPI’s

4        key risk and opportunity factors

5        contingency planning for above

6        things which will ensure success

7        critical path activities

8        other key issues

5.   The Project Manager will review these minutes and agree on any action required. This review should occur before any significant resources are committed to the job.

6.   At the Handover Meeting the Bid Manager will describe the job, intentions and methods to achieve the customers requirements, and identify key issues including risks and opportunities. The Project Manager will seek clarification or explanation of any requirements that appear onerous, incomplete, inaccurate or unclear.

8.   The records produced above shall be filed in the Job File System. <SOP-10A Job File System.doc>

10.3 Records

1        (SOP-09A) Handover Meeting Agenda

2        Handover Meeting Minutes

11 Controlling Job Documents

11.1 Purpose

1.   To ensure that job documents are kept secure and are available when and where they are required.

2.   To ensure a systematic system of filing all documents for each project.

11.2 Definitions

1.   Contract Documents: The original documents which make up the contract agreement. They typically include:

1        Form of Agreement

2        General and Special Conditions of Contract (including Appendices)

3        Specifications and Standards

4        Drawings

5        The Tender (offer)

6        Pre-award correspondence

7        Acceptance letter

2.   Job File: The working file(s) for managing the job. It shall contain the following:

·               Copies of relevant information from the Bid File

The estimator will have assembled this into the Job File System prior to Handover Meeting

1        A copy of the signed Contract Documents (when original documents are not readily accessible by the Project Manager).

2        Other documents defined in the Job File System. <SOP-10A Job File System.doc>

11.3 Procedure

11.3.1 Signing and Storing the Contract Documents

1        Where it is required that the Contract Documents be signed they shall be reviewed for completeness and correctness by the Project Manager  prior to signing.

2        Where the documents for signing differ from the bid set the Project Manager shall resolve the difference with the client/client’s representative.

3        The contract documents shall be signed in accordance with the Project Authority Procedures <SOP-01E Project Authority Procedures.doc> and the contract requirements.

4        The Project Manager shall ensure that the signed Contract Documents are stored securely.

11.3.2 Maintaining the Job File System

1.   The Project Manager shall maintain the Job Documents in the format defined by the Job File System. <SOP-10A Job File System.doc> This mechanism ensures that all the correct documentation for the job is in place and allows:

1        Ready review of the contract

2        Ease of transfer of control of the job to another Project Manager

3        An audit trail for verifying the quality of management applied to that job

11.3.3 Correspondence, Specifications, Drawings

1.   The Project Manager shall ensure that the latest or pertinent issues of all relevant information (eg. Project Quality Plan, Inspection and Test Plans, work procedures, drawings, specifications, instructions etc.) are available when and where they are needed. Superseded copies shall be clearly marked as such, and retained for historical reference.

All superseded documents (including drawings) shall be marked with two diagonal lines and the word Superseded across the drawing together with the current date 

2.   Outgoing/Incoming correspondence shall be referenced with a unique Job/Site code, recorded in a correspondence register <SOP-10C Correspondence Register.xls> (with appropriate flags set to identify potential variation claims) and filed as soon as possible. All outgoing correspondence shall be sequentially numbered.

3.   All incoming correspondence, specifications, drawings etc. should be either date stamped, or initialled and dated on arrival and shall be promptly passed to the Project Manager. The Project Manager shall review these, take the appropriate action and/or issue copies as required to affected parties (eg suppliers, subcontractors, site supervisors etc.)

4.   Outgoing correspondence having substantive contractual or commercial implication shall be reviewed with the Project Director.

5.   All client issued documents and instructions shall be carefully reviewed to ensure that they are complete, accurate, and unambiguous. Clarification shall be sought from the client where necessary to ensure that the requirements are clearly documented and understood. Any clarifications shall be confirmed in writing including requirements that differ from those in the bid. Should the Project Manager consider that the company is unable to meet any client requirement, he shall immediately notify the Project Director. 

6.   Where part or all of the work is to be Sub-Contracted the Project Manager shall ensure that the subcontractor receives all relevant documentation.

7.   The Project Manager shall ensure that the Tender Drawings are clearly marked or stamped as “Tender Drawings” and kept separate from the “Construction Drawings”to avoid inadvertent use as Construction drawings.

8.   The Project Manager shall maintain a master set of current drawings and specifications for the job. Any changes identified by the Project Manager between the Tender Set and subsequent drawings or specifications shall be clarified with the client. Where applicable, changes shall be claimed as variations.

9.   Where required by the contract a clean set of drawings shall be kept for marking up as "As-Builts".

11.3.4 Storage & Disposal

1.   The Master Job File must be kept in a secure environment. Documents shall be filed within the relevant sections. The Master Job File will be held by the Project Manager at a secure Site Office or failing such security, at the Regional Office. The decision on where the Master File shall be held shall rest with the Project Manager.

2.   When the Master File is held at Regional Office, the Project Managermay also set up an appropriate Job File using the Job File System for the site office containing relevant information.

3.   Following job completion the Job File shall be archived by the Project Manager in the Regional storeroom for a period of seven years. The Project Manager shall clearly mark the disposal date (year) on the Job File with permanent marker or sticker.

11.4 Records

1        (SOP 10A) Job File System

2        (SOP-10C) Correspondence Register

12 Preparing And Managing The Project Management Plan

12.1 Purpose

1.   To ensure that the specific management requirements of a project are identified and that procedures are planned and documented to address those requirements.

2.   To ensure that the procedures embodied in the Project Management Plan are implemented.

12.2 Procedure

12.2.1 Preparing the Project Management Plan (PMP).

1.   The Project Manager shall produce a *Project Management Plan <SOP-11A Project Management Plan.doc> (PMP) that is appropriate for the size and complexity of the job and in accordance with the Client’s requirements.

 

2.   The Project Management Plan is essentially a “container” for more detailed sub-plans and will typically include the following:

1        *Project Safety Management Plan <SOP-12A Project Safety Management Plan.doc>

2        *Project Quality Management Plan <SOP-13A Project Quality Management Plan.doc>

3        *Project Environmental Management Plan

4        Project Traffic Management Plan <\\KERMIT\CONSTRUC\Online\ManagementSystems\Master Documents - Don't Change or Delete\Traffic Management Plan.doc>

5        Earthworks Management Plan

6        Other Plans relevant to the project

4.   The Project Management Plan shall include:

i.              Management structure

ii.             Management responsibilities

iii.            Project meeting schedule

iv.            Key Performance Objectives (refer SOP20)

v.             Audit Schedule

12.2.2 Implementing the Project Management Plan

1.   The Project Manager will issue a controlled copy of the PMP to the client’s representative.  All staff and subcontractors shall  be inducted into the key requirements of the PMP

2.   A complete systems audit of the PMP should be undertaken annually to ensure its continued compliance

3.   The Project Manager will review the PMP on a regular basis to ensure effectiveness.

4.   The trends or common causes of non-conformance should be evaluated and appropriate preventative or improvement action taken in accordance with Opportunity for Improvement <SOP-11B Opporunity for Improvement.doc> procedure.

12.2.3 Audit

1.   An audit schedule shall be developed and included in the Project Management Plan

12.3 Records

1        (SOP-11A) Project Management Plan (PMP)

2        (SOP-11B) Opportunity for Improvement

3        (SOP-12A) Project Safety Management Plan

4        (SOP-13A) Project Quality Plan

5        (SOP-14A) Project Environmental Management Plan

6        Project Traffic Management Plan

13 Safety & Health Management

13.1 Purpose

1.   To ensure that the safety, health and well being of all personnel, on and around the project site, is maintained.

2.   To ensure that each job is managed in compliance with the requirements of the HASE Act 1992 and other requirements as outlined in the [Building Bridges Ltd] Health & Safety Manual <fh health & safety manual.doc>.

3.   To minimise or prevent potential loss or damage to property, plant and equipment.

4.   To ensure that the project operations and activities do not adversely effect the health and safety of the public.

13.2 Procedures

13.2.1 Planning

1.   Prior to work commencing the Project Manager, in consultation with the key project staff, shall determine the specific project safety requirements for the job and prepare a *Project Safety Management Plan <SOP-12A Project Safety Management Plan.doc>. This Project Safety Management Plan shall meet the requirements of the [Building Bridges Ltd] Health & Safety Manual <fh health & safety manual.doc>.

This Project Safety Management Plan is the pivotal element of [Building Bridges Ltd]’s Site Safety Procedures, so further definition is not attempted here.

13.3 Implementation

1.   The Project Manager has overall responsibility for ensuring the implementation and periodic review and audit of the Project Safety Management Plan and those responsibilities together with those of all staff are outlined in the *Project Safety Management Plan <SOP-12A Project Safety Management Plan.doc>.

2.   Company Employment & Induction procedures are covered in sections 25 - Training & 28 -    Personnel Management. Project Inductions procedures  shall be covered by the Project Safety Management Plan.

13.4 Records

·     FH Health & Safety Manual

·     (SOP-12A) Project Safety Management Plan Records, including:

i.    Hazard Identification - list of hazards and controls

ii.    Workplace Inspections records

iii.   Accident / Incident /Property Damage Reports

iv.   Evacuation Plan

v.   Tailgate/Group Meeting Minutes

vi.   Emergency procedures plan

vii.  Material Safety Data sheets

viii. Sub Contractor(s) Safety Plan(s) / Records

ix.   Audit Results

 

14 Quality Management

14.1 Purpose

1.   To ensure that products and services delivered meet the customer’s specified requirements

2.   To minimise or prevent waste, loss and rework.

14.2 Procedures

14.2.1 Planning

1.   Prior to work commencing the Project Manager, in consultation with the key project staff, shall determine the specific project quality requirements for the job and prepare a *Project Quality Management Plan <SOP-13A Project Quality Management Plan.doc>.

2.   The Project Quality Plan shall include:

i.             

ii.             Quality objectives/key performance indicators

iii.            Control of subcontractors or suppliers (Note 1)

iv.            Inspection and test plans (ITPs)

v.             Non-conformance Control

vi.            OFI Forms

vii.           List of quality records to be kept for the job

Either ensure the Subcontractor has adequate quality systems in place or provide extra supervision or continue to include them into [Building Bridges Ltd] quality systems. This may require provision of ITP’s, work methodologies etc.

3.   Inspection and Test Plans (ITPs) shall cover the inspections and tests required for materials and workmanship in the following areas:

1        incoming material/equipment

2        during work operations

3        on completion of work

4        client supplied product

4.   For each inspection or test (outlined in the ITPs), the following shall be specified as a minimum:

1        the name of the material/equipment

2        the characteristic requiring inspection or test

3        the acceptance criteria

4        the specification reference (if applicable)

5        the frequency or no. of tests/inspections

6        hold points/ witness points

7        the person responsible for the inspection or test

5.   Where the client supplies material/equipment for incorporation into the job the Quality Plan shall document procedures for identification, verification, and storage or protection as appropriate to prevent damage or loss. It shall also identify the requirement to report damage/loss, shortfall or oversupply to the client.

14.3 Implementation

1.   The Project Manager has overall responsibility for ensuring the implementation and periodic review and audit of the Project Quality Management Plan and those responsibilities together with those of all staff are outlined in the *Project Quality Management Plan <SOP-13A Project Quality Management Plan.doc>

14.4 Records

1        (SOP-13A) Project Quality Management Plan Records, including:

i.   

ii.    Inspection & Test Plans

iii.   Site Check Sheets

iv.   Laboratory Test Records

v.   Sub Contractor(s) Quality Records

vi.   Audit Results

 

 

15 Environmental Management

15.1 Purpose

1.   To ensure that the impact of our operations on the environment is minimised.

2.   To ensure that the concept of sustainability is considered in our operations

15.2 Procedure

15.2.1 Planning

1.   Prior to work commencing the Project Manager, in consultation with the key project staff, will determine the specific project environmental requirements for the job by reference to the contract requirements and prepare a *Project Environmental Management Plan <SOP-14A Project Environmental Management Plan.doc>.

2.   The Project Manager has overall responsibility for ensuring the implementation and periodic review and audit of the Project Environmental Management Plan and those responsibilities together with those of all staff are outlined in the *Project Environmental Management Plan

This Project Environmental Management Plan is the pivotal element of [Building Bridges Ltd]’s overall Environmental Management systems, so further definition is not attempted here.

15.2.2 Regulatory Compliance

1.   The Project Manager shall ensure compliance with the requirements of the Resource Management Act 1991 and all regulations passed under that Act.

15.2.3 Implementation

1.   The Project Manager has overall responsibility for ensuring the implementation and periodic review and audit of the Project Environmental Management Plan and those responsibilities together with those of all staff are outlined in the *Project Environmental Management Plan <SOP-14A Project Environmental Management Plan.doc>

15.3 Records

2        (SOP-14A) Project Environmental Management Plan Records, including:

i.    Hazard Identification - list of hazards and controls

ii.    Workplace Inspections records

iii.   Incident Reports

iv.   Tailgate/Group Meeting Minutes

v.   Emergency procedures plan

vi.   Material Safety Data sheets

vii.  Sub Contractor(s) Environmental Plan(s) / Records

viii. Audit Results

 

 

16 Planning And Tracking The Job

16.1 Purpose

1.   To ensure that the sequence of activities and resources required to complete a job are identified and documented prior to work commencing, so that the work can be managed and resources used efficiently.

2.   To identify critical path activities to ensure sufficient resources are applied to the key tasks.

16.2 Procedure

1.   The Project Manager shall study the bid programme and consider the rationale on which it is based.

2.   The Project Manager shall plan the job prior to work commencing. A Critical Path Network Program, bar chart or suitable action list may be prepared. A printed copy of the ‘baseline’ program should be stored in the Job File. Programs will be produced using computer software. A software baseline shall be set against which progress may be monitored.

3.   The approved method statements shall be taken into account in developing the program.

4.   The program should be prepared in the sequence:

3        list tasks

4        calculate task durations

5        link task with appropriate dependencies where logically constrained

6        allocate resources

7        accord task priorities

8        set task constraint dates

9        resource level program

10    set baseline

5.  

16.2.1 Program and Resource Planning

1.   The Project Manager shall monitor the rate of progress against the Job Program with particular regard to critical operations. The Project Manager shall take appropriate actions required to maintain the program. These may include:

1        review and improve methodology

2        adjust level of resources

3        extend the hours of work

4        claim time extensions where applicable

2.   Particular regard shall be taken of the cost effectiveness of these actions.

3.   The program shall be updated regularly to take account of:

1        progress to date

2        changes in the contract, including variations, which have an impact on time

4.   The client shall be advised of these updates along with other parties (eg Subcontractors/Suppliers) as determined by the Project Manager.

5.   The Project Manager shall monitor the resource usage for all activities (particularly critical items) against the resources allowed for that activity in the job budget. In the event that usage exceeds the budgetary allowance he shall review work methods and resources and take corrective action to improve the position.

16.3 Records

1        Critical Path Network Programme, Bar Chart

2        Action Lists

 

17 Resourcing the Job

17.1 Purpose

1.   To ensure that the job is resourced with staff and equipment in the most effective way.

2.   To ensure optimal use of FH resources

17.2 Procedure

17.2.1 Staff

1.   The Project Manager shall ensure that the job is adequately resourced with staff having the appropriate skills.

2.   When suitable internal staff are not available, the Project Manager shall discuss his/her requirements with the Project Director who shall in turn discuss those requirements with the GM, [Building Bridges Ltd] if necessary.

3.   If it is decided that new staff should be recruited, the employment process as outlined in section 28,     Personnel Management procedures shall be followed.

17.2.2 Plant & Equipment

1.   With regard to cost effectiveness and availability, equipment shall be sourced by the Project Manager as follows:

1        within the company

2        hire

3        purchase (in accordance with approved CAPEX programme)

2.   The Project Manager shall advise the Project Administration Managerof the terms and conditions of hire.

17.3 Records

1        Nil

 

18 Purchasing - Project Materials & Services

18.1 Purpose

1.   To ensure that all products and services purchased for inclusion in the project conform to customer specifications and company requirements for cost effectiveness and timeliness

Procedures for purchasing larger services are covered in section 18- Awarding and Administering Subcontracts

Procedures for purchasing Capital Items are covered in section 27 - Capital Purchases

18.2 Procedure

1.   Purchasing authority and responsibility rests solely with the Project Manager and includes checking correct delivery and product quality. The Project Manager may delegate part of this authority to other staff on the Project Team.

18.2.1 List of Preferred Suppliers

1.   Where commercially practicable, and generally in the case of smaller uncontested purchases, existing corporate vendors and Preferred Suppliers <SOP-17B Suppliers.xls> should be used to avoid unnecessary proliferation of vendors.

18.2.2 Project Purchases

1.   Before placing any order, the Project Manager shall review all supplier offers, which were obtained at bid stage. This will enable him/her to ensure all purchase expenditure is within the assigned budgets. Significant variations above the budget must be referred to the Project Director.

18.2.3 Major Supply Components

1.   A Supply Agreement shall be drawn up for materials supply where the order is greater than $250,000.

2.   Requests for supplier quotation will be made using the Invitation to Tender (SOP-2A).

3.   Quotes shall be compared using the Subcontractor Comparison Sheet <SOP-02B Subcontractor Comparison Sheet.xls>, and final selection shall be based on both price and ability to perform to contract requirements. Preference will be given to those suppliers used in the Bid preparation and final approval to place a supply order for materials in excess of $250,000 shall be authorised on SOP-2B by the Project Director or the GM, [Building Bridges Ltd].

4.   The [Building Bridges Ltd] standard External Supplier Agreement <SOP-17A External Supply Agreement.doc>shall be used as the general conditions of supply for external suppliers.

5.   Special conditions will need to be developed to meet the specific needs of the project. The proposed agreement, together with all supplementary information shall be reviewed by the Project Manager before it is forwarded to the supplier.

6.   The Project Manager shall forward two unsigned copies of the Supply Agreement to the Supplier for signing together with a covering letter outlining the signing/endorsement requirements.

7.   Once signed by the Supplier a check shall be made by the Project Manager to ensure that the Supplier has made no alterations to the documents.

8.   An original set will be returned to the Supplier, the other Original filed in the Office and a working copy provided to the Project Manager.

9.   The following documents shall either be included as Special Conditions or attached as appendices to the External Supplier Agreement:-

2        Invitation to Tender (SOP-2A).

3        the Supplier’s quotation

4        close-off date for accounts

5        retention details (if specified)

6        other relevant documents (if specified)

The Supply Agreement shall mirror the requirements of the Head Contract wherever practicable.

18.2.4 Capital Purchases

1.   Capital Items shall be purchased in accordance with section 27 Capital Expenditure.

18.2.5 Purchase Order Numbers

1.   The appropriate job number, object and subsidiary shall be quoted as the purchase order number to all vendors.

18.3 Records

1        (SOP-17C) External Supplier Agreement

 

19 Awarding & Administering Subcontracts

19.1 Purpose

1.   To ensure that Subcontract works meet the specified requirements of the client and that the interests of [Building Bridges Ltd] are protected.

19.2 Procedure

19.2.1 Awarding Subcontracts

1.   A Subcontract Agreement shall be drawn up for all physical works onsite except when value of work is less than $20,000 or with the approval of the Project Director.

2.   Requests for subcontractor quotation will be made using the Invitation to Tender (SOP-2A).

3.   Quotes shall be compared using the Subcontractor Comparison Sheet <SOP-02B Subcontractor Comparison Sheet.xls>, and final selection shall be based on both price and ability to perform to contract requirements. Preference will be given to those subcontractors used in the Bid preparation and final approval to use a subcontractor shall be in accordance with company delegated authorities.

4.   Prospective subcontractors shall be required to complete a Subcontractor Capability Assessment <SOP-18E SubcontractorCapabilityForm.doc> prior to Pre-Award discussions.

5.   Immediately prior to award the Project Manager shall arrange a pre-award meeting with the Subcontractor proposed to ensure a mutually clear understanding by both parties. The *Subcontractor Pre Award Meeting Agenda <SOP-18A Subcontractor Pre Award Meeting Agenda.doc> shall be used as the basis for the meeting and to record agreements reached.

6.   Subject to a satisfactory Pre-Award meeting, the subcontractor shall be notified using a *Subcontract Notification of Award <SOP-18B Subcontractor Notification of Award.doc> letter.

7.   The [Building Bridges Ltd] standard Subcontract Agreement <SOP-18C External Subcontract Agreement.doc>and the associated Subcontract Conditions <SOP-18Cb External Subcontract Conditions.doc> shall be used as the general conditions of contract for all subcontractors. Special conditions will need to be developed to meet the specific needs of the subcontract. The proposed subcontract, together with all supplementary information shall be reviewed by the  Project Manager before it is forwarded to the Subcontractor.

8.   The Project Manager shall forward two unsigned copies of the Subcontract Agreement to the Subcontractor for signing together with a covering letter outlining the signing/endorsement requirements.

9.   Once signed by the subcontractor a check shall be made by the Project Manager to ensure that the Subcontractor has made no alterations to the documents.

10. An original set will be returned to the Subcontractor, the other original filed in the office and a working copy provided to the Project Manager

11. The following documents shall either be included as Special Conditions or attached as appendices to the Subcontract Agreement:-

2        Invitation to Tender (SOP-2A).

3        the subcontractor’s quotation

4        minutes of pre-award meeting (if held) (SOP-17A

5        Subcontract Notification of Award Letter (SOP-17B).

6        close-off date for accounts

7        subcontractor’s Performance Bond (if specified)

8        evidence of subcontractors insurance (if specified)

9        retention details (if specified)

10    other relevant documents (if specified)

The Subcontract Agreement shall mirror the requirements of the Head Contract wherever practicable.

19.2.2 Administering Subcontracts

1.   In setting up subcontracts, it is critical that the Project Manager ensures the adequacy of the Subcontractor’s management systems and/or makes provision to incorporate them into [Building Bridges Ltd] systems (Further detail is covered in SOP-11, SOP-12, SOP-13 & SOP-14

2.   The subcontractor shall not commence any works until evidence of compliance with insurance requirements has been submitted to the Project Manager.

3.   The Project Manager shall ensure that the progress of subcontractors is regularly monitored. This shall include holding regular review meetings to record progress, quality and safety performance, and resolve any other matters. The Project Manager shall minute these meetings. A typical Subcontractor *meeting agenda <SOP-18H Subcontractor Review Agenda.doc> attached.

4.   The Project Manager shall fax/mail/email all relevant information which has an impact on subcontractors from any Notice to Contractor (NTC) to the respective subcontractors, together with a covering fax/letter detailing the NTC’s information to ensure that subcontractors have a complete understanding of the information contained within the NTC’s.

5.   *Notices to Subcontractors <SOP-18G Notice to Subcontractor.doc> shall be sequentially numbered.

19.2.3 Dispute Resolution

1.   The Project Manager shall make every effort to settle contentious issues promptly without compromising the company’s position. All relevant discussions, actions and meetings shall be carefully documented.

2.   Where a Subcontractor or Principal notifies Adjudication under the Construction Contracts Act, then the Project Manager shall notify the General Manager, [Building Bridges Ltd] within 24 hours, and the General Manager, [Building Bridges Ltd]  shall bring the issue to the notice of the CEO NZ Contracting for direction. 

19.2.4 Subcontract Payments

1.   It is critical to note that no payments shall be made to a subcontractor until

·               the Sub Contract Agreement is executed and

·               evidence is provided that all requisite Subcontract insurance policies and bonds are in place.

2.   Progress claims from subcontractors are required in the first 3 days of the month to allow payments to be certified, processed and paid on the 20th.

3.   Within the first 10 working days of each month, the Project Manager shall certify a Subcontractor payment schedule <SOP-18I Payment Schedule - Version B1.xls> taking into account amounts certified under the head contract and forward a copy to the Project Administration Manager. Provision shall be made in the Subcontract Progress Certificate for the recovery of contra charges

4.   The subcontractor shall be advised that he should not submit an invoice until such time as he receives the subcontract progress certificate.

19.2.5 Practical Completion

1.   The Project Manager shall issue a Certificate of Practical Completion to the subcontractor and shall request a final account from the Subcontractor at that time.

19.3 Records

1        (SOP-02B) Subcontract Comparison Sheet

2        (SOP-18A) Subcontractor Pre Award Meeting Agenda/Minutes

3        (SOP-18B) Subcontract Tender Acceptance Letter

4        (SOP-18C) External Subcontract Agreement

5        (SOP-18Cb) External Subcontract Conditions

6        (SOP-18D) Internal Subcontract Agreement

7        (SOP-18E) Subcontractor Capability Assessment

8        (SOP-18G) Notice to Subcontractor

9        (SOP-18H) Subcontractor Meeting Agenda

10    (SOP-18I) Subcontractor Payment Schedule

20 Financial Management

20.1 Purpose

1.   To ensure systematic and accurate financial reporting on the status of each project.

2.   To allow accurate comparisons of actual costs against budgeted costs.

3.   To comply with FH policy in regard to reporting standards and timeframes for payment of creditors.

4.   To enable forecasting of the Project final out-turn cost.

20.2 Procedures

20.2.1 Cost Management

20.2.1.1  Project Set Up

1        Following award of the Project the Bid Manager will provide the Project Administration Managerwith the detailed estimate in an appropriate format for setting up the Project budget.

2        The Project Administration Managerwill proceed to allocate Job # and Cost codes and send the Project Manager a copy of the final Budget complete with cost codes for use in coding expenses to the project.

3        The Project Administration Manager will prepare a project administration pack including information flow charts which will be customised for the particular project.

20.2.1.2  Ordering

1        When services and materials are ordered for the project the correct cost codes should be quoted to the Supplier to ensure costs are coded correctly.

20.2.1.3  Creditor Approvals

2        Creditor posting schedules will be available electronically through the “JDE” accounting system every Friday.

3        These posting schedules shall be checked and approved weekly by the Project Manager.

4        The Project Manager shall advise the Project Administration Managerof any corrections required to coding or alterations to the payment by the 14th of each month.

5        Special payments (subcontractor payment certs & expense claims) must be provided to the Project Administration Manager by 12 noon Wednesday on the week which payment is due.

All Posting Schedules MUST be signed off prior to the cheque run on the 14th of the month.

20.2.2 Revenue Management

20.2.2.1  Progress Claims

1.   The Project Manager is responsible for the preparation of progress claims in accordance with the contract documents within the first four working days of each month for work executed in the previous month.

2.   Progress claims shall be prepared in accordance with the requirements of the Construction Contracts Act using a Payment Claim form <SOP-19A Payment Claim - Version B1.xls>.

3.   A copy of the progress claim shall be provided to the Project Administration Manageralong with the Work in Progress (WIP) assessment (including any advance payments)

4.   The extent to which any portion of the claim may be in dispute or overstated shall be drawn to the attention of the Project Administration Manager.  

5.   Tax invoices will be issued for the certified amount on receipt of the contract payment certificate.  Note: an invoice will not be required if the Client issues a “Buyer Created Tax Invoice”.

20.2.2.2  19.2.2.2         Collecting Revenue.

1.   The Project Manager is responsible for ensuring that certificates are issued by the engineer and payments are made by the client in accordance with the contract, and in any case, at the earliest possible time.

2.   The Project Administration Managerwill enter the claim into the “JDE” Accounting System.

It is axiomatic that a key business goal is to make profit, and the maximization of profit and the timely receipt of payment shall be seen as a crucial performance indicator for the Project Manager

20.2.3 WIP

1.   The Project Manager shall prepare a schedule of cost and revenue accruals relating to the previous month and forward this schedule to the Project Administration Managerwithin 4 working days of the end of the month. Such schedule shall record:

1        Costs that will not yet have been recorded in the General Ledger, but for which Revenue has been claimed. (Cost Accrual)

2        Costs which have been recorded in the General Ledger, but that relate to future revenue (Completed work not claimed).

3        A conservative estimate of revenue not claimed for which costs have been recorded in the General Ledger. (Revenue Accrual or WIP)

4        Revenue claimed for which no costs have been recorded in the General Ledger. (Claimed in Advance)

20.2.4 Forecasting

1.   The Project Administration Managerwill prepare a *Cost to Complete (CTC)  <SOP-19C CTC Template2.xls> report for all projects.

2.   The Project Administration Managerwill extract costs from the JDE Accounting System and complete the “Cost to Date” column in the CTC.

3.   The Project Manager will review the cost to date for each for each item of the CTC and revise the project *Cost to Complete (CTC)  <SOP-19C CTC Template2.xls> in accordance with his/her assessment of work to complete at the time.

4.   This assessment will be completed by the 11th of each month (prior to running P&Ls) and forwarded to all members of the Project Review Team prior to the Project review meeting.

5.   The Project Manager shall advise the Project Director of any substantial variation from the original budget.

20.3 Records

1        (SOP-19A) Payment Schedule

2        WIP schedule

3        (SOP-19C) Cost to Complete

 

21 Client Communication

21.1 Purpose

1.   To ensure that:

1        clear lines of communication are established and maintained with the client or their authorised representative throughout the contract, and to ensure that all communications are documented

2        the satisfaction of the client is measured and evaluated on a continuing basis

3        the client responsibilities and obligations under the contract are met and the company’s position is not compromised.

21.2 Procedure

21.2.1 Communications and Commercial Details

1.   As soon as practicable after award of contract the Project Manager shall establish and document the specific communication requirements and commercial details with the client.

e.g.

1        name(s) of client’s agent and authorised site representative (if applicable)

2        name(s) of [Building Bridges Ltd] representative(s)

3        location, contact details (telephone, pager, fax, e-mail, address etc.) for both parties

4        names of personnel authorised to issue and receive instructions

5        claims/invoicing procedures and format

6        method and timing of payments

7        format and procedure for contract instructions and variations

8        agreement on variation processing fee

9        retention and/or bonding requirements

2.   All essential communications to the client will be in writing and issued through the Project Manager using a *Notice to Engineer <SOP-20A Notice to Engineer.doc> as appropriate. Such notices shall be sequentially numbered. Where this is not possible the Project Manager shall ensure that communications are drawn to his/her attention as soon as practicable. Any significant verbal communication shall be recorded and immediately confirmed in writing. (Particularly those affecting time, cost, quality and safety). Outgoing correspondence having substantive contractual or commercial implication shall be reviewed with the Project Director  (see also 10.3.3)

3.   Where the client has engaged an agent, all instructions to and from the client shall be through the nominated agent or his/her authorised representative.

4.   If the Project Manager considers an item or work may be a variation, he shall, where practicable, seek written instructions from the Client prior to commencement. Should the Client fail to provide such written instruction, the Project Manager shall confirm in writing his/her or her understanding of the issue with the client or his/her agent.

5.   All instructions from the client shall be checked to ensure that his/her requirements are clear, accurate and complete. If it becomes apparent that they are not clear, then the Project Manager shall seek written clarification from the client before proceeding with the instruction.

21.2.2 Contract Meetings

1.   The Project Manager shall meet regularly with the client as required by the contract or as appropriate to the size of the job.

2.   The agenda of such meetings may include:

1        safety issues

2        customer satisfaction

3        progress to date/delays/forward program

4        interface with others

5        quality of service

6        commercial matters

7        variations

3.   The Project Manager shall ensure that all meetings are documented either in site diaries or as formal minutes with copies distributed to relevant parties, and a copy filed in the Job Folder. Minutes taken by the client must be checked for contractual correctness and challenged and revised where necessary.

4.   The Project Manager should offer to take minutes of all project meetings and distribute them.

The Project Manager should keep notes of his/her own whether or not minutes are taken by others.

5.   The Project Manager will ensure that relevant information is passed on to subcontractors, suppliers, or other relevant third parties.

21.2.3 Managing Disputes

1.   The Project Manager shall make every effort to settle contentious issues promptly with the other party (Client, Engineer, Subcontractor, Supplier) without compromising the company’s position. All relevant discussions, actions and meetings shall be carefully documented. (Note that NZS3910 General or Special Conditions of Contract may specify strict time frames for certain actions - these must be adhered to).

2.   All items in dispute shall be referred to the Project Director.

3.   Where a Subcontractor or Principal notifies Adjudication under the Construction Contracts Act, then the Project Manager shall notify the General Manager, [Building Bridges Ltd] within 24 hours, and the General Manager, [Building Bridges Ltd]  shall bring the issue to the notice of the CEO NZ Contracting for direction. 

It should be noted that [Building Bridges Ltd] jealously guards it’s record of never having taken a client to arbitration: contentious issues should be resolved, not escalated.

21.2.4 Client Satisfaction Survey

1.   Refer section 24.2.1,      External Review on page 24-1

21.3 Records

1        (SOP-19A) Notices to Engineer

2        Notices to Contractor

3        Contract Meeting Minutes

 

22 Managing the Work

22.1 Purpose

1.   To ensure that work is carried out in a manner that:

1        meets the contract requirements

2        realises the profit potential of the job with due regard to longer term customer relationships

22.2 Procedure

22.2.1 Job Briefing

1.   Prior to commencing the work the Project Manager shall ensure that all staff are fully briefed and are provided with or have access to all the requisite information and resources. The information required may include the latest issues of:

1        drawings

2        specifications

3        management plans

4        work procedures/instructions ([Building Bridges Ltd] and/or Subcontractors)

5        inspection and test plans

6        quality assurance procedures and quality control check sheets

2.   As approved new documents are issued, the Project Manager shall ensure that superseded copies are clearly marked as such, and prevented from inadvertent use. Refer Controlling Job Documents (SOP-10) for further details.

22.2.2 Critical Productivity Targets

1.   The Project Manager shall identify the critical performance areas on the job and shall establish the key productivity targets based on the program prepared in Planning & Tracking the Job (SOP-15).

2.   The Project Manager shall prepare actual vs planned progress in graphical form and monitor progress against these targets.

22.2.3 Site Records

1.   Project Diary: A diary maintained by the Project Manager detailing on site events. They typically include:

1        Weather

2        Site Visitors

3        Instructions Received

4        Instructions Issued

5        Weekly Progress Targets

6        Disciplinary notes

7        Plant Maintenance Requirements

22.2.4 Health & Safety

1        The Project Manager is responsible for ensuring that the site is managed in accordance with the *Project Safety Management Plan <SOP-12A Project Safety Management Plan.doc>.

22.2.5 Quality

2        The Project Manager is responsible for ensuring that the site is managed in accordance with the *Project Quality Management Plan <SOP-13A Project Quality Management Plan.doc>.

22.2.6 Environmental

3        The Project Manager is responsible for ensuring that the site is managed in accordance with the *Project Environmental Management Plan <SOP-14A Project Environmental Management Plan.doc>.

22.2.7 Methodology

1.   Specialist construction methodology shall be developed by the construction team prior to the start of operations.

2.   The Project Manager will then develop and document work method statements in a suitable format, where required. These will be communicated clearly to construction staff and subcontractors as appropriate.

22.2.8 Internal Meetings

1.   The Project Manager shall hold meetings appropriate to the size of the contract, with Project staff and Subcontractors to discuss and resolve issues including:

4        safety

5        quality

6        environmental

7        costs and revenue

8        client satisfaction

9        progress/program/performance

10    resources

11    technical

12    contractural

13    staff related issues

2.   Agreed actions shall be documented and clearly communicated. The Project Manager shall ensure that these are actioned.

22.3 Records

1        Productivity Targets

2        Method Statements

3        Minutes of Meetings

23 Internal Reports

23.1 Purpose

1.   To ensure that required reports are prepared to an agreed format in a timely fashion.

23.2 Procedure

23.2.1 Scheduled Reports

1.   The Project Manager shall prepare a *Project Summary Report <SOP-22A Monthly Project Report.doc> monthly.

2.   Project Reports shall be completed and forwarded to the Executive Secretary at Corporate Office by the 5th working day after end of month for consolidation into the “Blue Papers”.  A copy of this report is to be forwarded to GM, [Building Bridges Ltd].

3.   The GM, [Building Bridges Ltd] shall submit the Business Sector Report to the Board by the 10th working day of the month.

23.2.2 Project Review Reports

1.   Project Review reports shall be prepared by the Project Manager  in accordance with section 8,     Project Review.

23.2.3 Post Contract Reports

1.   Post Contract Review reports shall be prepared by the Project Manager  in accordance with section 24,      Post Contract Review.

23.3 Records

1        (SOP-22A) Project Summary Report

2        GM, [Building Bridges Ltd]’ monthly report

24 Completion Certificates/Retentions & Bond Release

24.1 Purpose

1.   To ensure completion Certificates are certified in a timely manner

2.   To ensure Retention monies are released when due under the Contract conditions

3.   To ensure Bonds are released in a timely manner.

24.2 Procedure

1.   See SOP-7 Establishing Bonds & Insurance for Bond initiation procedure

2.   The Project Manager shall apply for Certificate of Practical Completion (or Sectional or partial Completion) or its equivalent in accordance with the Contract Conditions as soon as the works are believed to qualify.

3.   The Project Manager shall request release of Bonds, on form Bond Application Release Form <SOP-07A Bond Application.Release Form.doc> in writing, at the earliest appropriate time and forward copies of that request to the Commercial Manager [Building Bridges Ltd] .

4.   On receiving the original bond document he shall pass it on to the Company Secretary who will arrange for its cancellation by the Bondsman.

5.   The Project Manager shall ensure that any outstanding work items are completed within the maintenance period and that the Maintenance Certificate is applied for at the earliest opportunity.

6.   On making a claim for issue of the Maintenance Certificate the Project Manager shall ensure that a claim is made for the release of final retention money (or the Retention’s Bond where in place).

7.   The Commercial Manager [Building Bridges Ltd] shall monitor project and bond status to ensure compliance with the above requirements.

24.3 Records

1        (SOP-07A) Bond Application/Release Form

25 Post Contract Review

25.1 Purpose

1.   External Review: To evaluate the level of customer satisfaction and identify opportunities for improvement.

2.   Internal Review (Contract Debrief): To evaluate the overall success of the contract and identify key opportunities for improvement.

3.   The actions arising from both reviews will provide a basis for ongoing improvement of the unit’s Management Systems.

25.2 Procedure

1.   The Post Contract Review will comprise both external (client) and internal review.

25.2.1 External Review

1.   The Project Director shall arrange for the customer satisfaction survey to be carried out using the Customer Satisfaction Survey <SOP-24A Customer satisfaction Survey.doc>. It may be sent to both the client and his/her agent and contact will be made with the client to thank him/her for his/her feedback and to clarify any opportunities for improvement. The Key Performance Objectives identified earlier under Preparing and Managing the Project Management Plan (SOP-13) will be taken into account when preparing the survey.

2.   A copy of the customer satisfaction survey shall be forwarded to the chair of the SOP Review Committee.

25.2.2 Internal Review

1.   The Project Manager shall produce a Final Project Report <SOP-24C Project Rpt Sample.DOC> and evaluate the key performance areas of the contract including:

2        Results of Customer Satisfaction Survey

3        Client “PACE” evaluation (if available)

4        Financial

5        Safety , Environmental and Quality

6        Timeliness

7        Methods and productivity

8        Subcontractor/supplier performance

The opportunity to involve the client in this post contract review meeting may also be taken.

2.   This review <SOP-24B Post-Contract Review.doc> shall involve key project team members, the GM, [Building Bridges Ltd] and the Project Director. This must be undertaken within one month of practical completion of the respective project.

3.   The Project Manager shall ensure that suitable corrective action is taken within an agreed time frame in accordance with the company Opportunity for Improvement procedures.

25.3 Records

1        (SOP-24A) Client Satisfaction Survey

2        (SOP-24B) Minutes of Post Contract Review

3        (SOP-24C) Final Project Report

26 Training

26.1 Purpose

1.   To ensure that [Building Bridges Ltd] personnel are adequately trained and have the appropriate skills, experience and qualifications to carry out their current and future roles on the organisation.

2.   To ensure that personnel are familiar with Safety, Environmental & Quality objectives and procedures.

3.   To provide [Building Bridges Ltd] personnel with opportunities for personal and professional development.

4.   To identify training needs and to record and review training progress.

26.2 Procedures

1.   The Safety, Quality & Training Co-ordinator will be responsible for coordination and recording of all training for [Building Bridges Ltd] personnel.

2.   It is the responsibility of the employee’s Manager to ensure the appropriate induction is carried out using the following induction packages:

Permanent Temp <SOP-25BPermanent Temp.doc>

Casual Transferring <SOP-25C Casual Transferring.doc>

Subbie-Plant Hire <SOP-25D Subbie-Plant Hire Induction Pack.doc>

3.   It is the responsibility of the employee’s Manager to ensure appropriate induction.

4.   The induction form must be signed by the employee and the Manager and recorded on the Employee’s Personal File.

5.   The Manager in consultation with the employee is responsible for completing a training assessment and training plan annually Staff Training Plan <SOP-25A - Staff Training Plan .xls> for each employee reporting to him.

6.   Annual Training plans shall be submitted to the GM, [Building Bridges Ltd] for approval prior to implementation.

7.   Approved plans will be forwarded to the Safety, Quality & Training Co-ordinator for implementation and filing.

8.   Training will be delivered by the following methods:

1        On the job training with experienced staff

2        In-house training sessions and seminars

3        External courses conducted by appropriate organisations

Prior to and following attendance at training courses the employee and Manager should meet to discuss the training objectives and training effectiveness.

It is the responsibility of the Safety, Quality & Training Co-ordinator to ensure training records including copies of certificates; licenses etc shall be retained on the employee’s personnel file.

26.3 Records

1        (SOP-25A) Annual Training plan

2        (SOP-25B) Permanent / Temp Induction Package

3        (SOP-25C) Casual / Transferring Induction Package

4        (SOP-25D) Subbie / Plant Hire Induction Package

27 Design Control

27.1 Purpose

1.   To ensure the design process is proactively managed - that is, planned, documented and controlled in order to meet the requirements of the tender documents and of [Building Bridges Ltd].

27.2 Scope

1.   This procedure shall apply to the management of design by external design consultants.

2.   This procedure has been developed to cover the requirements of a full Design & Construct Project.

3.   This procedure applies equally to design and construct components of traditional tenders / contracts, although the procedures may be simplified, as agreed with the Project Director, to be commensurate with the scale of the design and construct element/s.

4.   This procedure shall be read in conjunction with Appendix to the Professional Services Agreement. <SOP-26C Professional Services Agreement Appendix.doc>

5.   This procedure shall be consistent with the requirements of the Tender Management Plan.

27.3 Procedure

27.3.1 Design & Development Planning

1.   The Bid Manager shall appoint a Design Co-ordinator as early as possible to assume responsibility for the design procedure.  The Bid Manager shall be responsible for this procedure until the Design Co-ordinator has been appointed.

2.   The Design Co-ordinator shall reach agreement with the Consultant on Professional Services Agreement (PSA) <SOP-26C Professional Services Agreement Appendix.doc> prior to the issue of tender documents.  Following the receipt of the tender documents, the Design Co-ordinator and the Consultant shall confirm that the details of the PSA reflect the requirements of the tender documents and of [Building Bridges Ltd], and agree on amendments to the draft PSA, if necessary.  The Design Co-ordinator shall affect the signed PSA within one week of receipt of tender documents.

3.   The PSA shall:

1        Be based on the Association of Consulting Engineers New Zealand Short Form Agreement <SOP-26B ACENZ short form.doc> for services having a fee less than $25,000 and the Model (Long Form <SOP-26A ACENZ long form.doc>) Conditions of Engagement for services having a fee more than $25,000.

2        These COE should be provided by the Design Consultants and are also available from the Institution of Professional Engineers New Zealand (<http://www.acenz.org.nz/pubframe.htm>).

3        The PSA shall include an Appendix to the Professional Services Agreement that provides for requirements of this procedure.

4        Provide for exclusivity of consultant and subconsultant engagement, unless agreed otherwise with the Project Director.

5        Provide for the strict confidentiality of the consultant and subconsultants.

Confidentiality and security shall be emphasised at the first review meeting.

 

27.3.2 Bid Stage Services

1.   The Design Co-ordinator shall require the Consultant to appoint a Consultant’s Design Team Leader who shall be responsible for managing the design process.

2.   The Design Co-ordinator, shall in conjunction with the Design Team Leader, confirm the detail of the Scope of Design Services on which the design fees will be based.

3.   The Design Co-ordinator shall, in conjunction with the Consultant, prepare a Design Organisation Chart that reflects the roles of the Consultant/s and/or subconsultants, and that is consistent with the Bid Management Organisation Chart.

4.   The Design Co-ordinator shall provide the Head Consultant with details of the roles and responsibilities of the Bid Manager, the Design Co-ordinator, and the Consultant’s Design Team Leader.

5.   The Design Co-ordinator shall, in conjunction with the Consultant, prepare a Design Brief for each design package. The Design Brief shall include:

a.             Specific reference to the design inputs including

i.    design standards

ii.   statutory requirements (resource consents, Health and Safety)

iii.   a requirement for the review of these inputs (and documentation of this review)

b.             A description of deliverables and the standards of the deliverables, (such as plans, longitudinal sections, cross sections and relevant scales)

c.             Consideration of alternatives

d.             A Risk and Opportunity Assessment for each design package

e.             Participation in review meetings

6.   The Design Brief shall provide for the following reports at milestones or hold points for each design package to be signed off and released by the Design Co-ordinator:

a.             A 15% Report that describes the design concept as well as alternatives to be assessed in the preliminary design. Sufficient detail shall be provided in terms of risks, benefits, disbenefits and whole of life costs to enable the Design Co-ordinator to shortlist the alternatives for further assessment.

b.             An 85% Report that provides sufficient detail of the final output that will be submitted with the submission, including details of alternatives.

c.             A Draft Preliminary Design for review prior to finalisation.

d.             A Final Preliminary Design for inclusion in the bid submission.

2.   The Design Co-ordinator shall ensure that the Bid Program is sufficiently detailed so that both [Building Bridges Ltd] and the Consultant are aware of the timing and interdependence of their respective responsibilities. Specific emphasis shall be given to:

a.             Programming requirements of the tender documents.

b.             Milestones or hold points for each design package to be signed off and released by the Design Co-ordinator:

c.             Early definition of the geometric alignment as this generally dictates the requirements of the other design packages and pricing details.

d.   Submission (and definition) of pricing details required in advance of the preliminary design

e.             Inclusion of changes subsequent to the initial pricing details in the preliminary design for pricing and submission.

3.   The Design Co-ordinator shall arrange regular Design Review Meetings, generally on a weekly basis to:

a.             Monitor the progress of the design packages and tender submission

b.             Monitor the fees to date and fee forecasts

c.             Provide interaction with [Building Bridges Ltd]’s construction personnel to ensure that the design takes account of preferred construction techniques, and available plant and equipment.

4.   The Design Co-ordinator shall ensure the following reviews are documented:

 

Reviews and assessments of alternatives

Assessed in 15% Reports

Design inputs

Listed in designer’s quality plan

Risk and Opportunity Assessment

May be simple correspondence or minutes of design review meetings for simple bids or a full Workshop for complex bids

Value Management Assessments

May be simple correspondence or minutes of design review meetings for simple bids or full Workshop for complex bids

Constructability

May be simple correspondence or minutes of design review meetings for simple bids or full Workshop for complex bids

Progressive assessment and confirmation of the principal’s requirements

May be correspondence with the principal or minutes of meetings with the principal

 

5.   The Consultant’s Design Team Leader shall prepare a Design Quality Plan before the commencement of the design that takes account of the requirements of this section, and describes the Consultant’s own design verification (internal or external review) procedures.

6.   The Design Co-ordinator shall document the validation by the client of the bid design prior to submission of the bid.  This validation may take the form of:

1        Confirmation at meetings

2        Approval of design reports

27.3.3 Pre-Award Stage Services

1.   The PSA shall:

a.    include a requirement for the Head Consultant and Subconsultants to provide support, as required, to meet the tender requirements for pre-award presentations and requests for additional information.

b.    include details of payments for fees during this period.

 

27.3.4 Detailed Design Stage Services

1.   The Design Co-Ordinator, in conjunction with the Consultant, shall confirm the scope of work for this Stage.

2.   The Design Co-Ordinator shall update the Construction Team Organisation Chart and shall require that the Consultant do the same for the Design Team.

3.   The Design Co-ordinator shall, in conjunction with the Consultant, update the Design Brief for each design package. The Design Brief shall include:

a.  Specific reference to the design inputs including

i.    design standards

ii.   statutory requirements (resource consents, Health and Safety)

iii.   a requirement for the review of these inputs (and documentation of this review)

 

b.  A description of deliverables and the standards of the deliverables, (such as plans, longitudinal sections, cross sections and relevant scales)

c.  Consideration of alternatives

d.  A Risk and Opportunity Assessment for each design package

e.  Participation in review meetings

4.   The design brief shall provide for the following reports at milestones or hold points for each design package to be signed off and released by the Design Co-ordinator:

a.   A Design Confirmation Report, that, prior to commencing the detailed design, addresses new ideas or alternatives that may have come to light during the pre-tender stage, including changes from the tender design that may have been agreed with the Client. The purpose of this report is to confirm the design to be developed in the detailed design, as well as to confirm that the design may be constructed for the tender budget.

b.   A Construction Confirmation Report that provides sufficient detail of the final construction detail for review and approval by the Bid Manager of construction methods and budget. It is expected that this report shall be prepared and submitted when the detailed design is between 30% and 50% complete.

c.   A Draft Detailed Design for review prior to finalisation. The purpose of this report is to review the design with sufficient time to enable amendments to be made prior to construction. 

d.   A Final Detailed Design that is expected to consist only of construction drawings for final approval.

5.   The Design Co-ordinator shall include a Design Programme within the overall Construction Programme so that both [Building Bridges Ltd] and the Consultant are aware of the interdependence of their respective responsibilities.

7.   The Design Co-ordinator shall arrange regular Design Review Meetings, generally on a weekly basis to:

a.   Monitor the progress of the design packages

b.   Monitor the fees to date and fee forecasts

c.   Provide interaction with [Building Bridges Ltd]’s construction personnel to ensure that the design takes account of preferred construction techniques, and available plant and equipment.

8.   The Design Co-ordinator shall ensure the following reviews are documented:

 

Reviews and assessments of alternatives

Assessed in 15% Reports

Design inputs

Listed in designer’s quality plan

Risk and Opportunity Assessment

May be simple correspondence or minutes of design review meetings for simple bids or a full Workshop for complex bids

Value Management Assessments

May be simple correspondence or minutes of design review meetings for simple bids or full Workshop for complex bids

Constructability

May be simple correspondence or minutes of design review meetings for simple bids or full Workshop for complex bids

Progressive assessment and confirmation of the principal’s requirements

May be correspondence with the principal or minutes of meetings with the principal

These reviews are likely to shorter than those carried out during the Bid Stage as the design concept is likely to be largely determined at this stage.

8.   The Consultant’s Design Team Leader shall prepare a Design Quality Plan before the commencement of the design that takes account of the requirements of this section, and describes the Consultants’ own design verification (internal or external review) procedures.

9.   The Design Co-Ordinator shall document the validation by the client of the detailed design prior to construction. This validation may take the form of:

·              Confirmation at meetings

·              Approval of design reports and drawings

·              Acceptance of Design Producer Statements

27.3.5 Construction Stage Services

1.   The Design Co-ordinator shall require that the Consultant submit details of their construction verification requirements that they may require to certify the Construction Producer Statements and any other contractual requirements, as well as the resolution of queries from the site related to the design.

2.  The Project Manager shall document the validation by the client of the detailed design prior to construction. This validation may take the form of:

1        Confirmation at meetings

2        Acceptance of Construction Producer Statements

27.3.6 Fees

1.   The Design Co-ordinator shall agree a fee with the Consultant for each stage of the consultant’s services, that is, bid services, pre-tender award services, detailed design and construction services, as appropriate. This early agreement is intended to provide early, and a greater level of price certainty and to avoid dispute at a later stage once [Building Bridges Ltd] is committed to the Consultant. It recognises that changes in the Consultants scope of work may be necessitated by subsequent design development, and that these changes may necessitate variations to the fee agreements.

2.   The following guidelines shall be considered when negotiating the Design Fees:

a.             Input by the Consultant into the non-price attributes of the submission document (including the Registration of Interest or Statement of Interest and Ability) is generally regarded as a marketing exercise, and is not reimbursable, unless agreed otherwise with the Project Director.

b.             Bid Stage Fees for key consulting services are normally paid at a % of normal rates, with a success fee equal to 2 x the amount (%) the consultant agrees to reduce their normal fee rates on award of the tender -

                      ie.        Bid Fee = 70%,

                                  Success fee = 2x30% = 60%

                                  Total fee = 130% if successful

c.             Details for reimbursement of disbursements shall be agreed.

d.             The mark up on disbursements and subconsultants fees shall be agreed.

e.             The manner in which services for assessment and development of alternatives shall be reimbursed.

f.              A contingency shall be allowed in the [Building Bridges Ltd] design fee budget for design development, alternatives and unexpected costs.

27.3.7 Design Changes

1.   The Project Co-Ordinator shall document all design changes. These changes may be to the scope of the work or concepts that have previously been approved or agreed.

2.   The changed shall be documented in terms of:

1        Scope or details of change

2        Impact on fess, programme and standards

3.   The Project Co-Ordinator shall approve the change prior to its implementation

4.   The Project Co-Ordinator shall communicate the change to all affected parties.

 

28 Capital Purchases

28.1 Purpose

1.   To ensure that capital expenditure items are purchased in accordance with company policy.

28.2 Definition

1.   Capital Expenditure is defined as any fixed or mobile plant or equipment purchase exceeding $500.

28.3 Procedure

1.   A capital expenditure plan will be prepared annually and submitted to the board for approval.

2.   Requests for capital expenditure of individual items on the approved capital expenditure program must be made on Corporate Capital Expenditure Form <SOP-27A Capex.xls> and submitted to the GM, [Building Bridges Ltd] for approval.

3.   Once approved, the Capex form will be forwarded to the Commercial Manager [Building Bridges Ltd] for processing.

4.   Application for capital not on the approved program must be supported by a business case with full financial analysis. This proposal will reviewed by the NZ Executive who will decide on a recommendation to the FH board.

28.4 Records

1        (SOP-27A) Corporate Capital Expenditure Form

 

29 Personnel Management

29.1 Purpose

1.   To ensure that staff recruited have the appropriate attributes for the proposed job

2.   To ensure that appropriate disciplinary action is taken when required

3.   To ensure that staff is managed in accordance with the requirements of the Employment Relations Act.

29.2 Procedure

29.2.1 Recruitment

1.   Recruitment of staff for Projects is the responsibility of the Project Director in consultation with the GM, [Building Bridges Ltd].

2.   Staff may be recruited either:

·   Internally

·   Through employment agencies

·   By advertising

29.2.2 Employment Process

1.   Prior to employment, staff shall:

·   Be reference checked <SOP-28E Reference Check.doc>

·   Be interviewed to assess suitability

·   Undergo a pre-employment medical which shall include a drug screening test <SOP-28N Consent for Drug Testing.doc> in accordance with the FH Alcohol/Drug Policy.

2.   An Employment Offer <SOP-28J Employment Offer.doc> shall be forwarded to the candidate for consideration together with:

·   The Employee Record Card <SOP-28C EmployeeRecord.doc>

·   A Pre-Employment Health Questionnaire <SOP-28K Pre-employment Medical.doc>

3.   The Employment Offer <SOP-28J Employment Offer.doc> shall include advice that a Drug & Medical test shall be required of the successful applicant.

4.   The Project Manager shall complete and forward to the corporate payroll office the following documentation:

·              IR330 Tax Code Declaration <IRD330 Tax Code Declaration.pdf>

·   Completed Employee Record Card <SOP-28C EmployeeRecord.doc>

·   Signed Employment Agreement (latest copy to be obtained from Public Folders

·   An Internet Useage & Security Policy <SOP-28l Internet Policy.doc> form

·   Completed and signed Pre-Employment Health Questionnaire

·   Signed acknowledgement of Company Rules Booklet <SOP-28B CompanyRules.doc>.

5.   Where a change of status is proposed for any employeethe Project Manager shall complete an Employee Payroll Change <SOP-28D ChangeAdvice.doc> or Employee Transfer Advice <SOP-28I Transfer Advice.doc> as appropriate and forward it to the Commercial Manager [Building Bridges Ltd]for approval. When approved, the Commercial Manager [Building Bridges Ltdshall advise the corporate Pay Office for processing.

6.   Upon notification of resignation or termination, the Direct Manager shall complete a Termination Checklist <SOP-28H Termination Checklist.doc> and forward immediately to the corporate Pay Office.

29.2.3 Performance Appraisals

1.   Managers shall conduct formal performance reviews <SOP-28M Performance Review.doc> with their direct report staff. Such reviews shall be carried out at 12 monthly intervals.

29.2.4 Personnel Record Maintenance

29.2.4.1  Leave

1.   Completed Leave applications <SOP-28A Leave Application.doc> shall be forwarded to the Employees Manager for approval. Once approved the form will be forwarded to the Corporate Pay Office for processing and recording.

29.3 Records

2        (SOP-28A)            Leave Applications

3        (SOP-28B)                        Company Rules

4        (SOP-28C)            Employee Record Card

5        (SOP-28D)            Employee Payroll Change

6        (SOP-28E)            Reference Check

7        (SOP-28F)            Permanent Employment Agreement

8        (SOP-28G)            Casual Employment Agreement

9        (SOP-28H)            Termination Checklist

10    (SOP-28I)              Employee Transfer Advice

11    (SOP-28J)             Employment Offer

12    (SOP-28K)            Pre-Employment Health Questionnaire

13    (SOP-28L)            Internet Policy

14    (SOP-28M)            Performance Review

15    (SOP-28N)            Consent for Drug Screen

16    (SOP-28O)           Police Check

17    IR330 Tax Code Declaration

30 Risk Management

30.1 Purpose

1.   To ensure that risks are actively managed and that the impacts of downside risks are minimised, and that the impacts of upside opportunities are maximised.

30.2 Definition & Scope

1.   Risks are potential events that will have a negative impact on Project Objectives.

2.   Opportunities are potential events that will have a positive impact on Project Objectives.

30.3 Procedure

30.3.1 Proactive Management

1.   The Project Manager shall review and update the *Risk Analysis <SOP-02F Margin.Risk.Commercial.xls> prepared during the Bid phase and save that Analysis as a live Risk and Opportunity Register.

2.   The Project Manager shall update the Risk and Opportunity Register <SOP-02F Margin.Risk.Commercial.xls> on a monthly basis and incorporate it as an element of the Monthly Project Review

3.   Significant issues arising shall be brought to the attention of the Project Director at the earliest opportunity.

4.   For projects larger than $25M the monthly risk analysis shall be undertaken using statistical analysis software (eg “@ Risk”, “Pertmaster”)

30.3.2 Reactive Management

1.   The Project Manager shall execute such insurance as may be required by the contract and such further insurance as may be agreed with the Project Director.

2.   All significant changes to the risk profile shall be notified to the Company’s Insurers Brokers at the earliest opportunity.

30.3.3 Claims Management

1.   The Project Manager shall advise, and keep informed, the project’s Insurance Brokers of any event that may give rise to a claim under any policy

30.4 Records

1        Risk and Opportunity Register

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