Mw-2 2004 - Update Executive Summary - at a Glance

MW-2 2004 - UPDATE EXECUTIVE SUMMARY - AT A GLANCE

20 January 2017

1. Introduction

The suite of the standard form ITR, RFT, contract and other documents related to MW-2 2004 has been significantly amended.

The primary purpose of these amendments has been to address legislation and policy changes, responses to current industry issues, lessons learnt and other matters requiring amendment.

Although the intent has not been to materially alter the existing MW-2 2004 risk allocation, this has been the unavoidable consequence of the amendments that have been otherwise necessary.

This means that it is critical for anyone using the standard forms (whether within CFI, a PMCA or a registrant or tenderer) to read the entirety of the latest versions of the relevant documents and understand the extent of the amendments.

To assist (but not supplant) this process, CFI has prepared:

(a)a detailed "Update Summary" which identifies each of the amendments made to the various documents relevant to MW-2 2004; and

(b)this "Update Executive Summary - At a Glance" - which provides a snapshot of the key changes made to the various contract documents.

1. ITR
2. Key ITR Changes

In summary, the key changes to the standard form ITR are:

(a)to reflect that an ITR may be published on AusTender;

(b)communication during the ITR process will primarily be by email, although communication by post is still permitted in certain circumstances;

(c)confirmation that the distinction between "information documents" and "addenda" remains, despite AusTender terminology;

(d)various revisions to the evaluation criteria and corresponding schedules;

(e)new information security provisions (including evaluation criteria, ITR conditions and schedule);

(f)updated Building Code 2016 provisions (including ITR conditions and schedule);

(g)updated WHS accreditation scheme provisions;

(h)updated Indigenous Procurement Policy (IPP) provisions;

(i)new material change and Defence strategic interest provisions (including ITR conditions, registration of interest form and schedule).

2.2Other ITR Changes

In summary, the other changes to the standard form ITR include various changes to:

(a)reflect AusTender terminology/use;

(b)the evaluation process and conforming bid requirements;

(c)the clarification process;

(d)the schedules (to be submitted by registrants); and

(e)other drafting throughout the ITR.

1. RFT
2. Key RFT Changes

In summary, the key changes to the standard form RFT are:

(a)to reflect that the RFT may be published on AusTender;

(b)communications during a tender process will primarily be by email, although communication by post is still permitted in certain circumstances;

(c)confirmation that the distinction between "information documents" and "addenda" remains, despite AusTender terminology;

(d)provision for individual "1-on-1" tenderer meetings to be held at the time of the industry brief;

(e)a two-envelope tender structure, which means that the contract price (Tender Schedule L) and alternative proposal (Tender Schedule M) are submitted in a separate envelope;

(f)new evaluation criteria (and tender schedules) for quality, information security and IPP;

(g)various other revisions to the evaluation criteria and corresponding schedules;

(h)deletion of the "buildability" provisions;

(i)deletion of the option of letters of acceptance (to award a contract);

(j)updated Building Code 2016 provisions (including provision of a Workplace Relations Management Plan) (including tender conditions and schedule);

(k)new information security provisions (including tender conditions schedules);

(l)new financial viability provisions, including requirements for a solvency statement and other detailed financial information, and a financial viability assessment by an independent financial adviser;

(m)new material change and Defence strategic interest provisions (including tender conditions and schedules);

(n)new IPP provisions (including tender conditions and schedule); and

(o)updated WHS accreditation scheme provisions.

3.2Other RFT Changes

In summary, the other changes to the standard form RFT include various changes to:

(a)reflect AusTender terminology/use;

(b)the evaluation process and conforming bid requirements;

(c)the clarification process;

(d)the schedules (to be submitted by registrants); and

(e)other drafting throughout the RFT.

1. Contract - MW-2 2004
2. Key Contract Changes - Conditions of Contract

In summary, the key changes to the standard form Conditions of Contract are:

(a)deletion of the option of letters of acceptance (to award a contract);

(b)new optional monthly meeting and contractor's monthly report provisions;

(c)updated security provisions- security held on a section basis;

(d)updating of the insurance provisions;

(e)a requirement to design the Works in accordance with any preliminary design solution;

(f)requirement for design certificates at time of submission of design documentation;

(g)clarification of the contractor's entitlement to extra costs for latent conditions;

(h)clarification of the contractor's entitlement to extra costs for valuable, archaeological or special interest items;

(i)amendments to reflect WHS requirements (including updated WHS accreditation scheme provisions);

(j)clarification of the contractor's entitlement to extra costs for changes in law;

(k)amendments to the project plan requirements;

(l)deletion of the requirement for maintenance during DLP (by moving it into the special conditions);

(m)new requirements for quality assurance;

(n)updated payment provisions including new conditions precedent to payment; revised payment statement requirements; revised payment requirements; updated NSW legislation requirements for payment of workers and administrators;

(o)amendment to the default and termination provisions;

(p)provision for all notices to be issued by email, with notices in relation to disputes or termination also to be delivered by hand or sent by prepaid express post;

(q)new IPP provisions;

(r)updated Building Code 2016 provisions (including compliance with the Workplace Relations Management Plan);

(s)new information security provisions;

(t)new material change and Defence strategic interest issue provisions;

(u)new financial viability provisions;

(v)new estate information provisions (including a detailed schedule setting out all information requirements); and

(w)new annexure on design documents.

4.2Special Conditions

The key changes to the special conditions are:

(a)they are now embedded in annexure 2 of the Conditions of Contract;

(b)new conditions dealing with hazardous substances, asbestos; ACM and GHS;

(c)deletion of the buildability provisions;

(d)amended prior work and WHS provisions regarding Contractor entitlements; and

(e)insertion of provisions for maintenance during the DLP (from the Conditions of Contract).

1. Collateral Documents

5.1Key Collateral Documents Changes

The Collateral Documents have generally been updated to reflect the changes to the underlying suite.

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