The Voice of Consulting EngineeringThe Voice of Consulting Engineering

ProcurementGuideline forConsulting Engineering Services

Supported by

Consulting Engineers South Africa (CESA)

Fulham HouseHampton Park North20 Georgian CrescentBryanstonJohannesburg, South Africa

PO Box 68482BryanstonJohannesburg, South Africa2021

Tel: +27 (011) 463 2022Fax: +27 (011) 463 7383Email: general@cesa.co.za / Web: www.cesa.co.za

Construction Industry Development Board (cidb)

Private Bag X14Brooklyn Square0075 Pretoria

Tel: 086 681 9995Fax: 0866 819 995Email: cidb@cidb.org.za / Web: www.cidb.org.za

Procurement Guideline for Consulting Engineering Services

First Edition, April 2010Second Edition, March 2011

Published by CESA – Consulting Engineers South Africaand

Supported by the cidb – Construction Industry Development BoardApril 2010

Copyright © Consulting Engineers South Africa 2011

This best practice procurement guideline is meant to be a ‘living’ document and is subject toperiodic review. The contents of this publication are presented in good faith and are intended as

general guidance on matters of interest only. The authors and the organisations to which theauthors belong make no presentation or warranties, either expressed or implied, as to the

completeness or accuracy of the contents.

All information is presented on condition that the person receiving it will make their owndeterminations as to the suitability of using the information for their own purposes and on

the understanding that the information is not a substitute for specific technical orprofessional advice or services.

1

Consulting Engineers South Africa (CESA) is the “Proud voice of Consulting Engineers in South Africa”.

Consulting Engineers South Africa (CESA), represents for its members a body that promotes their joint interests and, because of its standing, provides quality assurance for its clients. Over 480 firms employing just on 22 000 staff are members of CESA, with a total fee income of almost R17 billion per annum. CESA offers:

• Adherence to quality management systems, and the basic tenets of commercial viability on which CESA members’ businesses depend, underwrite the quality assurance implicit in membership.

• Member firms are committed to continuous education, and to the upliftment of their staff and the communities they serve. Many firms have affirmative action programmes, contribute to bursary schemes and assist emerging professionals and construction companies to grow. CESA was instrumental in the development of the Construction Industry Charter which has been gazetted in terms of the Broad‐based Black Economic Empowerment Act.

• Members carry a required level of professional indemnity insurance, which provides clients with financial recourse in the event of non‐performance, insufficient design, failure or neglect caused by the engineer.

• Members are required to implement and maintain an approved Quality Management System in terms of CESA’s Code of Conduct

Mission StatementConsulting Engineers South Africa is committed to:

• Enhancing the professional and business interests of its members• Improving the quality of life for all South Africans by the promotion of engineering excellence• Serving clients with professionalism, integrity and independence of judgment

CESA’s Objectives and Major FunctionsCESA’s members commit themselves to the upholding of engineering and professional standards and themaintenance of quality by its members.The organisation seeks to promote the interests of its members and their clients by:

• Arranging regular liaison meetings with clients• Publishing documents relating to the profession• Compiling advisory notes for members and clients• Drafting guidelines to members on professional practice matters• Maintaining peer review and quality management programmes• Publishing the Directory of Firms and members newsletters• Organising seminars, workshops and conventions• Holding Membership of FIDIC (International Federation of Consulting Engineering Associations)

CESA StructureThe activities of the Association are managed by a well‐structured organisation including:

• A President and a Council, elected biennially and annually respectively.• An Executive Committee to organise and oversee activities.• A full-time Directorate based in Bryanston, Johannesburg, to administer the Association.• Twelve Branches that are active in the nine provinces throughout South Africa.

2

Key Focus AreasCESA has identified the following strategic aims for the future of the organisation:

• To educate members and clients on a preferred business model• To build partnerships with government and other stakeholders• To address skills shortages in an expanding economy• To maintain standards of professionalism and quality management• To drive sustainable transformation• To develop an HIV/Aids policy for consulting engineers• To develop and create an awareness amongst consulting engineers of environmental issues affecting the industry

Professionalism and Integrity of MembersOver and above these functions (and perhaps more importantly), through its rigorous screening of applications and ongoing membership requirements, CESA ensures the ‘professionalism and integrity’ of its members for the benefit of Clients and the Public. Just as an Employer takes comfort from employing a professional engineer registered by ECSA so is a Client able to take comfort from employing a consulting engineering firm vetted and ‘registered’ by CESA.

Screening of Applications for MembershipThe ‘rigorous screening of applications and ongoing membership requirements’ ensures that the CESA member:• Is subject to the CESA Code of Conduct, which gives the Client access to the CESA Disciplinary Committee in the

event of non‐compliance• Is registered with CIPRO i.e. is a bona fide company, with directors and governance structures in place• Has been in business for at least 12 months and must be nominated by an existing CESA member i.e. not a ‘fly‐by

night’ venture• Has at least 50% of the applicant’s ownership/directors/principals registered as professional engineers or technologists

i.e. the main business of the applicant/company is engineering• May not undertake any contracting work (as in construction contracting), only consulting work i.e. no conflict of

interests• Has a Quality Management System (QMS) in place or will appropriate and implement the CESA QMS when it joins

CESA i.e. emphasis on quality and business systems• Has a Business Integrity Management System (BIMS) in place or will appropriate and implement the CESA BIMS

when it joins CESA i.e. conducts its affairs with integrity

This high quality of membership has been recognised in that many Clients insist on CESA membership as a condition of appointment.

Kindly visit http://www.cesa.co.za/node/14 for more information on CESA membership. Applications and further enquiries regarding membership can be directed to Ms Gillian Wands at general@cesa.co.za or 011 463 2022.

3

The Construction Industry Development Board (cidb), a Schedule 3A public entity, is the Enabler and regulator for the SA Construction Industry. It was established by Act of Parliament (Act 38 of 2000) to promote a regulatory and developmental framework that builds:

• The construction delivery capability for South Africa’s social and economic growth.• A proudly South African construction industry that delivers to globally competitive standards.

The cidb’s focus is on• Sustainable growth, capacity development and empowerment• Improved industry performance and best practice• A transformed industry, underpinned by consistent and ethical procurement practices• Enhanced value to clients and society

Construction plays a vital role in South Africa’s economic and social development. It provides the physical infrastructure and backbone for economic activity. It is also a large‐scale provider of employment. The legacy of Apartheid has, however, left the South African construction industry with a number of development and transformation challenges. These include:

• Improving effectiveness of public sector spending on physical infrastructure development and maintenance.• Improving labour absorption, labour relations and job stability.• Accelerating sustainable transformation through access to opportunity, finance and training.• Reducing the impact of HIV and AIDS in construction• Ensuring international competitiveness.

The aims of the cidb include:• Promoting sustainable growth of the construction industry and sustainable participation of the emerging sector in the

industry• Promoting improved performance and best practice of public and private sector clients, contractors and other

participants• Promoting procurement and delivery management, the uniform application of policy throughout all spheres of

government, uniform and ethical standards all guided by a Code of Conduct• Establishing the following registers as tools to systematically regulate and monitor the performance of the industry

and its stakeholders• Register of Contractors(RoC)• Register of Projects (RoP)• Register of Professional Service Providers (RoPSP) – which is of particular interest to the Consulting Engineering

profession and supported by CESA.

The cidb Act mandates the Board to:• Establish a national register of contractors and of construction projects to systematically regulate, monitor and

promote the performance of the industry for sustainable growth, delivery and empowerment.• Promote improved delivery management capacity and the uniform application of procurement policy throughout all

spheres of government.• Promote improved performance and best practice of public and private sector clients, contractors and other

participants in the construction delivery process.• Promote sustainable participation of the emerging sector.• Provide strategic direction and develop effective partnerships for growth, reform and improvement of the construction

sector.

4

The Board is comprised of private and public sector individuals appointed by the Minister of Public Works on the basis of their individual industry knowledge and expertise. The Board reports to the Minister. Board members are non‐executive and rely on the executive capacity of the organisation to implement the cidb mandate (http://www.cidb.co.za/about/structure/BoardMembers/default.aspx).

Useful cidb documentation/prescripts including the following are conveniently packaged on the website in a folder called the ‘cidb Toolbox’ (http://www.cidb.co.za/procurement/procurement_toolbox/default.aspx)

• Standard of Uniformity (SFU)• Code of Conduct• Practice notes• Legislation

The cidb Code of Conduct requires certain standards of behaviour including:(http://www.cidb.co.za/procurement/procurement_toolbox/code_conduct/default.aspx)

• Behave equitably, honestly and transparently.• Discharge duties and obligations timeously and with integrity.• Comply with all applicable legislation and associated regulations• Satisfy all requirements established in procurement documents• Avoid conflict of interest• Not maliciously injure/ attempt to injure the reputation of 3rd party

The cidb has a monitoring and sanctioning role in which it is enabled to:• Conduct investigations• Sanction offenders• Suspend offenders from the cidb RoC• Issue fines to Employers up to R100 000• Intergovernmental Relations Framework Act – liaises with:

• Treasury• Public Protector• Auditor General

5

Engineering has played a critical role in increasing the health and quality of life in the last 60 years.

From developing better water supplies, municipal sewer systems, wastewater treatment plants to the design of buildings to protect us from natural hazards and provide health care, to improved agriculture through water resource development and distribution projects to rapid and dramatic changes in transportation systems, engineers have developed the basic infrastructure on which modern society depends. Engineers continue to be dedicated to technology development for the common good and the general public.

Engineers work has helped reduce the death rate dramatically which is one of the principal reasons that population has been able to grow so dramatically in the last 200 years. The improvements in transportation alone have enabled rapid migration of large numbers of people all over the world and increased the volume of raw materials and finished products in international trade 800 times in the last century. Economic output has increased over 20 times, fossil fuel 30 times and industrial production 100 times in the last century.

Sanitation chosen as greatest medical advance since 1840Sanitation is the most important medical advance in the past 150 years, according to a poll conducted by the British Medical Journal.

Clean water supply systems and better sewage disposal led to fewer outbreaks of diseases such as cholera. ‘Sanitation’ was the top choice of 11,341 people worldwide who voted in the medical journal’s survey, receiving 1,795 votes, followed by Antibiotics with 1,642 votes, while ‘Anaesthesia’ took third place with 1,574 votes.

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6

TABLE OF COnTEnTS

InTrODuCTIOn

DEFInITIOnS

ChAPTEr 1 PrOJECT LIFE-CYCLE

ChAPTEr 2 COnSuLTInG EnGInEErInG SErvICES

ChAPTEr 3 PrOCurEMEnT OF COnSuLTInG EnGInEErInG SErvICES 3.1 Legal Environment for Procurement of Consulting Engineering Services 3.2 Objectives of Procurement 3.3 Methods of Procurement 3.4 cidb’s Best Practice Guidelines: Competitive Selection3.5 Points to Note

ChAPTEr 4 SCOPE 4.1 Planning, Studies, Investigations and Assessments 4.2 Scope of Services for Normal Project Design Stages 4.3 The Scope of Work 4.4 Important Considerations

ChAPTEr 5 TEnDEr DOCuMEnTATIOn FOr COnSuLTInG EnGInEErInG SErvICES 5.1 Model for Uniformity 5.2 Guidelines for Compiling the Documentation

ChAPTEr 6 vALuE-ADDED SErvICES 6.1 The Concepts of Financial Offer and Quality 6.2 The Concept of Value 6.3 Guidelines for Pricing of Tenders 6.4 The Relevance of a Benchmark 6.5 The Multipliers 6.6 The Concept of “Value Bidding” 6.7 Points to Note

ChAPTEr 7 EvALuATIOn OF TEnDErS 7.1 cidb’s Best Practice Method 7.2 Evaluation Criteria 7.3 Recommended Approach 7.4 Evaluation Procedure 7.5 Points to Note 7.6 Tables for the Evaluation of Tenders

8

9

11

13

1414 16161718

1919202122

24 2424

2525272730303232

33333333343636

7

ChAPTEr 8 PErFOrMAnCE MOnITOrInG 8.1 Communication and Liaison 8.2 Suggested Performance Monitoring and Evaluation Process 8.3 Points to Note

APPEnDICESAppendix A Integrity Pact

Appendix B The Case for Using Method 4: Financial Offer, Quality and Preference

Appendix C Framework Agreements and Term Contracts

Appendix D The Procurement Cycle - Checklist

Appendix E Examples of International Best Practices in Procurement

Appendix F Example of Scope of Services

Appendix G CIDB Tables to Assist in Compiling Tender Documents

Appendix H Explanatory Notes on Ecsa Guidelines

Appendix I Useful Websites

47474748

8

InTrODuCTIOn

This Guide reflects what is considered best practice today for Clients and Consulting Engineers – to appropriately invite and respond to calls for consulting engineering services and to deliver these services in a true value–added context which will ensure better lives of our communities. It incorporates the requirements of all applicable legislation including the Construction Sector Charter published in terms of Section 9(1) of the BBBEE Act, 53 0f 2003.

The contents of this Guide focus on suggestions to Clients in requesting services and advice to Consulting Engineers in framing their responses to these requests. This has been done in order to better inform the procurement process.

CESA consulted extensively with the Construction Industry Development Board (cidb) in compiling the Manual/Guide for Procurement of Consulting Engineering Services.

Wherever possible the terminology used in the Guide has been aligned to reflect the terminology and methodology contained in the Engineering Council of South Africa (ECSA) and cidb documentation. In addition to the Introduction and definitions, this manual has been laid out in the same order as the typical flow in the procurement process as follows:

CHAPTER 1. PROJECT LIFE‐CYCLE ‐An outline of the typical project life cycle as background.

CHAPTER 2. CONSULTING SERVICES ‐A description of typical consulting services that can be provided by consulting engineers.

CHAPTER 3. PROCUREMENT OF CONSULTING SERVICES ‐ Legislation and objectives of procuring consulting engineering services

CHAPTER 4. SCOPE ‐ An expanded description of various elements of scope.

CHAPTER 5. TENDER DOCUMENTATION ‐ Guidelines for preparing tender documentation for consulting engineering services.

CHAPTER 6. VALUE – ADDED SERVICES ‐ An expansion on the issues surrounding value that is obtained through consulting engineering services and pricing for these services.

CHAPTER 7. EVALUATION OF TENDERS ‐ Guidelines on the evaluation of consulting engineering services tenders for services.

CHAPTER 8. PERFORMANCE MONITORING ‐ Aspects related to monitoring consulting engineering services provision

Cheap Design is Expensive

Cheap design is expensive. Your investment in quality design will enable the most qualified consultant to apply technical knowledge and relevant project experience to develop a functional and cost‐effective facility designed to meet your needs.

If you deal with the lowest bidder, it is well to add something for the risk you run.And if you do that, you’ll have enough to pay for something better

John Ruskin

Article courtesy ACEC Nevada

9

DEFInITIOnS

Terminology used in this Manual has been chosen to reflect the terminology used by the cidb, to facilitate cross‐referencing with cidb documentation. Some of the more important changes are listed below.

In most cases the definitions in this manual coincide with the definitions given in the latest Guideline Scope of Services and Tariff of Fees for Persons Registered in terms of the Engineering Profession Act, 2000 (Act No. 46 of 2000), as well as the Revised Standard for Uniformity in Construction Procurement, published in terms of the Construction Industry Development, Board Act, 2000 (Act No. 38 of 2000)

i. “Bid” see tender below.ii. “Building Project” means a project comprising building work, together with its associated engineering work,

where the engineer is subject to the authority of another professional acting as the Principal Agent while financial and administrative matters are dealt with by another professional.

iii. “Client”, means any juristic person or organ of the State engaging a consulting engineer for services on a project.

iv. “Construction monitoring” means the process of administering the construction contract and overseeing and/or inspecting the works, to the extent of the consulting engineer’s engagement, for the purpose of verification that the works are being completed in accordance with the requirements of the contract that the designs are being correctly interpreted and that appropriate construction techniques are being utilized. Construction monitoring, to whatever extent, shall not diminish the contractor’s responsibility for executing and completing the works in accordance with his contract.

v. “Construction industry”, the broad conglomeration of industries and sectors which add value in the creation and maintenance of fixed assets within the built environment.

vi. “Construction Procurement” means the invitation, tendering, award and carrying out of projects.vii. “Consulting engineer”, for purposes of these rules only, means any professional registered in terms of the

Act, or a juristic person who employs such professional, engaged by a client on a project;viii. “Contract”, means the formal agreement between the client and the consulting engineer also called the Form

of Agreement.ix. “Contract Data”, means the portion of the tender document that relates specifically to the Contract in question

and includes all the applicable conditions and related data in respect of insurances, limits, durations and programme.

x. “Contractor” means any person or a juristic person under contract to a client to perform the works or part of it on a project, including a subcontractor under contract to such contractor;

xi. “cost of the works” means the total final amount (or a fair estimate thereof), exclusive of value added tax, certified or which would, normally, be certifiable for payment to contractors (irrespective of who actually carries out the works) in respect of the works designed, specified or administered by the consulting engineer, before deduction of liquidated damages or penalties, including:• escalation, assuming continuity of the project through to final completion. Where delays occur in the project

cycle the client and consultant should come to an agreement on the escalation that will be applicable to various stages of services.

• a pro‐rata portion of all preliminary and general items applicable to the Works ;( irrespective of who actually carries out the works) and

• the costs of new materials, goods or equipment, or a fair evaluation, of such material, goods or equipment as if new whether supplied new or otherwise by, or to, the client and including the cost or a fair evaluation of the cost of installation (the sourcing, inspection and testing of such will comprise additional services by the consulting engineer);

xii. “Electronic Engineering Services” means services related to the provision of electronic systems and detailing the terminations, signals and interconnections of electronic components as distinct from conventional electrical HV, MV and LV systems and related reticulation.

xiii. “Emerging Enterprise”, means and enterprise that is owned managed and controlled by previously disadvantaged persons as defined in Government Gazette No 30692 1 February 2008.

xiv. “Engineering and Construction Works Contract”, means a contract for the provision of a combination of supplies and services, arranged for the development, extension, installation, repair, maintenance, renewal, removal, renovation, alteration, dismantling or demolition of structures, including building and engineering infrastructures

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xv. “Engineering Project” means a project of which the scope comprises mainly engineering work.xvi. “Expression of interest”, involves both a request for an Expression of Interest and the Consulting Engineer’s

response to the request. The request is for tenderers to register their interest in undertaking a specific contract or to participate in a project or programme and to submit their credentials so they may, in terms of the organization’s procurement procedures, be short listed and invited to submit a tender offer should they qualify or be selected to do so.

xvii. “Financial Offer” see Tender Price.xviii. “Form of agreement”, means a standardised document setting out the formal agreement between the client

and the consulting engineer for the providing the scope of services for the specified scope of worksxix. “Form of offer and acceptance”, the documents that formalise the legal process of offer and acceptance.xx. “Framework contract”, means an agreement between two parties to establish the terms for the provision of

consulting engineering services over a set period of time within a broad scope of work without guaranteeing any quantum of work.

xxi. “Functionality” see quality.xxii. “hurdle” the minimum Quality Criteria score required to proceed to the next stage of the bid evaluation

processxxiii. “list of returnable documents “ means the document that lists everything the employer requires a tenderer

to submit with his tender submissionxxiv. “normal services” means the typical services as set out be ECSA that should be provided on a project and

for which payment in terms of the ECSA guidelines tariffs should normally provide adequate remuneration.xxv. “Pricing instructions” the document that provides the criteria and assumptions which it will be assumed in

the contract, that the tenderer has taken into account when developing his prices, or target, in the case of target cost contracts

xxvi. “Principal Agent” means the Professional Service Provider appointed as such.xxvii. “project” means any total scheme envisaged by a client, including all the works and services concerned;xxviii. “Quality (functionality)” the totality of features and characteristics of a product or service that bear on its

ability to satisfy stated or implied needs.xxix. “Services Contract”, means a contract for the provision of labour or work, including knowledgebased

expertise, carried out by hand, or with the assistance of equipment and plantxxx. “Site information”, means the document that describes the site as at the time of tender, to enable the

tenderer to price his tender and to decide upon his method of working and programming.xxxi. “Scope of Services” means the services which a consulting engineer must provide in relation to the Scope

of Work.xxxii. “Scope of Work” means the portion of the works for which the consulting engineer is engaged.xxxiii. “Stage” means one of six stages of the normal services set out below.xxxiv. “The Act” means the Engineering Profession Act, 2000 (Act No. 46 of 2000);xxxv. “Total annual cost of employment” means the total annual cost of employment as described in Table 6‐2 of

this document.xxxvi. “Submission data”, the document that establishes the respondent’s obligations in submitting an expression

of interest and the employer’s undertakings in the processing of the submissionxxxvii. “Supplies contract” means a contract for the provision of materials or commodities made available for

purchase.xxxviii. “Tender data”, means the document that establishes the tenderer’s obligations in submitting a tender and the

employer’s undertakings in administering the tender process and evaluating tender offers;xxxix. “Tender notice and invitation to tender” means the document that alerts prospective Professional Services

Suppliers to the nature of the supplies, services and engineering and construction works required by the employer and contains sufficient information to solicit comparable responses.

xl. “Tender Price”, means the price submitted for the required services including all other payment conditions and related information in respect of costs and disbursements.

xli. “Threshold”, means a monetary value of a procurement contract established in any legislation governing procurement or by the executive of an institution, below which a procedure may be used.

xlii. “Works” means the activities on a project for which contractors are under contract to the client to perform or are intended to be performed, including the supply of goods and equipment;

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ChAPTEr 1. PrOJECT LIFE CYCLE

The construction industry within South Africa is a well‐established sector that has nationally delivered infrastructure of high standard on a par with the developed world. It is an effi cient and effective ‘machine’ that delivers infrastructure at the right quality, within budget and deadline.

Its primary constraint has not been a lack of capacity and skills but rather a lack of investment by government and the private sector, as well as the complicated procurement regime resulting from a plethora of recent legislation.

The intention of this Manual is to generally guide clients and consulting engineers through this ‘minefi eld’ with regard to their role in the construction project life‐cycle and especially the associated procurement aspects.

The project life cycle involves several elements as shown in the fi gure below.

The fi rst 3 steps in the project life cycle are associated with identifying a potential project and defi ning and selecting the most appropriate feasible project that can meet the need.

The next 3 steps involve developing the project through to the fi nal design stage and procuring a Contractor to construct the project.

Thereafter the project is constructed and handed over to the client who will have processes in place to operate and maintain the resulting facility, as well as a plan to dispose of or renew the facility at the end of its useful life.

1Identifi cation

2Defi nition

3Feasibility

5Design

6Procure

7Construct

8Ops and Maint

9Disposal/Renewal

4Concept and

Viability

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1. IdentificationThe first step in the project life‐cycle is to identify the need to a project. This is normally the result of planning, or operations and maintenance studies that show a need of one form or another that can be met through a construction project. This step normally involves many processes that are initiated or carried out by the owner of infrastructure. Such processes may involve the appointment of specialist consulting engineers or other professional service providers who may assist in identifying the causes and potential solutions to problems and a range of potential projects that may solve the problem while at the same time not making an unnecessary impact on the physical and social environment and also ensuring reasonable project sustainability.

2. DefinitionOnce the potential projects have been identified they will need to be assessed through more detailed planning and investigation studies in order to define the project in more detail. Inappropriate solutions will be rejected and a short list of alternative solutions prepared.

3. FeasibilityOnce the project has been defined the technical and financial feasibility will need to be determined and the definition may need to be adjusted to refine the project and select the most appropriate project option subject to technical and financial constraints.

4. viabilityOnce the feasible project has been defined, procurement of normal consulting engineers’ services or any other services associated with the design and project development can commence. The first stage of these services will be to develop the concept design in more detail and confirm its technical and financial viability in greater detail.

5. DesignOnce the project concept has been finalised detailed design can commence which involves detailing all of the aspects of the project in sufficient detail to obtain competitive prices for construction.

6. ProcurementWhen the design is complete the necessary contract documents are prepared and tenders for construction are solicited. The tenders are evaluated and the Construction Contract is awarded to the wining tenderer.

7. ConstructionConstruction can now commence and proceeds until practical completion when the owner takes possession of the constructed project. The construction contract is finalised when the defects liability period has expired and all defects have been rectified.

8. Operations and MaintenanceThe owner now proceeds with operation and maintenance of the project in accordance with nay manuals and guidelines that are provided and in accordance with the owner’s own processes and procedures.

9. Disposal or renewalThis is an action or set of actions at the end of an Operations and Maintenance period, to decommission or rebuild the project, and either close it down or renew it to serve for another period, in an environmentally acceptable manner.

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ChAPTEr 2. COnSuLTInG EnGInEErInG SErvICES

The services provided by consulting engineers and other professional services providers involve a myriad of services in a range of disciplines and fields. These include amongst others:

• Agricultural Engineering • Geotechnical Engineering• Environmental • Industrial• Electrical Engineering • Marine• Civil Engineering Services • Mechanical Engineering• Chemical • Mining• Construction Management Services • Structural Engineering• Construction Project Management Services • Transportation Engineering

There are also numerous other miscellaneous engineering services including:

• Railway Track Design, • Refuelling Systems, • Materials Handling Systems,• Special Structures, • Asset Management, • Transaction Advisory Services,• Acoustical Engineering, • Building Wet Services, • Cathodic Protection,• Fire Protection and Detection • Lightning Protection, • Contractual Advisory Services,• Airport Design • Landfill Developments • Facade Engineering

The provision of these services can deliver most value in the early steps of the project cycle and therefore functionality and quality of the proposed service is regarded as much more important than cost in steps 1 to 3 of the Project Cycle as shown above.

As the project becomes increasingly well defined the required consulting services become easier to define more precisely and the role of high level expertise reduces while that of more routine skills such as design detailing and correct and comprehensive contract documentation become more important. This is shown conceptually in the table below.

Step in Project Life Cycle required Expertise and Key Attributes for value

1. Identification Strategic concepts and lateral thinking to identify appropriate options.

2. Definition Operational and value options to define projects that are likely to be feasible and cost-effective.

3. Feasibility Identification and elaboration of possible alternatives and cost-effectiveness.

4. Concept and Viability Project optimisation subject to budget and environmental constraints.

5. Design Quick and effective design detailing and incorporation of latest appropriate technological developments.

6. Procurement Good contract documentation, accurate schedule of quantities and appropriate procurement options

7. Construction Conscientious construction administration and monitoring and effective handling of contractual issues

8. Operations and Maintenance Asset management and preventative maintenance

9. Disposal or Renewal Environmentally compliant, dismantling/ demolition or rehabilitation or reconstructing for further use

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ChAPTEr 3. PrOCurEMEnT OF COnSuLTInG SErvICES

Consulting Engineers form an important major pool of skilled technical resources in South Africa that help to ensure that design and construction of engineering works are of excellent quality and cost effective. A high standard of engineering and infrastructure development is vital to the country’s growth, progress and global competitiveness. Through National Treasury policy statements, Government recognises that “it is necessary that certain minimum requirements of quality and efficiency be achieved when appointing consultants”. At the same time a basic policy of competitive selection is to be maintained. In addition the Constitution of South Africa requires that government procurement systems must be Fair, Equitable, Transparent, Competitive and Cost Effective.

3.1 Legal Environment for Procurement of Consulting Engineering ServicesA universally accepted set of objectives or outcomes for a construction procurement system are those based on the Constitution of South Africa of 1996 (Act 108 of 1996) and which have been adopted by the International Organisation for Standardisation (ISO) in the development of the ISO 10845 series of standards for construction procurement.

Table 3-1: Constitutional Procurement Requirements

System requirement Qualitative Description of requirement

Fair

The process of offer and acceptance is conducted impartially without bias, and provides participating parties simultaneous and timely access to the same information.

Terms and conditions for performing the work do not unfairly prejudice the interests of the parties.

EquitableThe only grounds for not awarding a contract to a tenderer who complies with all requirements are restrictions from doing business with the organization, lack of capability or capacity, legal impediments and conflicts of interest.

Transparent

The procurement process and criteria upon which decisions are to be made shall be publicized. Decisions (award and intermediate) are made publicly available together with reasons for those decisions. It is possible to verify that criteria were applied.

The requirements of procurement documents are presented in a clear, unambiguous, comprehensive and understandable manner.

Competitive The system provides for appropriate levels of competition to ensure cost‐effective and best value outcomes.

Cost‐effectiveThe processes, procedures and methods are standardized with sufficient flexibility to attain best value outcomes in respect of quality, timing and price, and the least resources to effectively manage and control procurement processes.

Promotion of Other Objectives

The system may incorporate measures to promote objectives associated with a secondary procurement policy subject to qualified tenderers not being excluded and deliverables or preferencing criteria being measurable, quantifiable and monitored for compliance.

The procurement of consulting engineering services accordingly needs to maintain a balance between reasonable compensation which will ensure continued attractiveness and development of the profession on one hand, while ensuring competition on the other. A legislative framework exists to promote transformation in the new democracy of the country.

15

The key Acts affecting procurement are:

Table 3-2: Primary Legislation Regulating ProcurementAct Applicability What it does in Respect of ProcurementConstitution of the Republic of South Africa, 1996 (Act No 108 of 1996)

All organs of state Provides procurement objectives and establishes government’s policy for preferencing.Establishes requirements for the award of contracts to be lawful, reasonable and procedurally fair.

Public Finance Management Act (Act 1 of 1999)

National and provincialdepartments and stateowned enterprises

Establishes a regulatory framework for supply chain management which includes procurement within national and provincial departments and state owned enterprises.

Promotion ofAdministrative Justice Act (Act 3 of 2000)

All organs of state Establishes fair administrative procedures, permits those affected by unfair administrative action to request reasons for such administrative action within 90 days of, or when they became aware of, such actions and requires administrators to respond within 90 days of receipt of such requests.(Administrative actions are presumed to be have been taken without good cause where an administrator fails to respond within the prescribed period.)Provides for procedures for the judicial review of administrative actions and remedies in proceedings for judicial review including the prohibition of an administrator from acting in a particular manner, setting aside the administrative action, correcting the defective action and the ordering of the administrator to pay compensation.

The Promotion of Equality and the Prevention ofUnfair Discrimination Act, 2000 (Act 4 of 2000)

The state and all persons(natural or juristic person)

Prohibits the state or any person from discriminating unfairly against any person on the grounds of race or gender through the denial of access to contractual opportunities for rendering services or by failing to take steps to reasonably accommodate the needs of such persons.

Preferential ProcurementPolicy Framework Act, 2000 (Act No 5 of 2000)

All organs of state (stateowned enterprises) atdiscretion of Minister)

Establishes the manner in which preferential procurement policies are to be implemented

Construction IndustryDevelopment Board Act, 2000 (Act 38 of 2000)

All organs of state involved in procurement relating to the construction industry.

Establishes the means by which the Board can promote and implement policies, programmes and projects, including those aimed at procurement reform, standardisation and uniformity in procurement documentation, practices and procedures within the framework of the procurement policy of government, through the establishment of:• a national register of contractors (and if required, consultants and

suppliers) to manage public sector procurement risk and facilitate public procurement;

• a register of projects above a financial value with data relating to contracts awarded and completed and a best practice project assessment scheme;

• best practicesEstablishes a code of conduct for the parties engaged in construction procurement.Establishes a national register for Project Service Providers

Broad‐Based BlackEconomic EmpowermentAct, 2003 (Act No. 53 of 2003)

Procurement provisions apply to all organs ofstate.

Establishes a code of good practice and scorecard, provided for industry specific charters such as the Construction Industry Charter, to inform the:

• development of qualification criteria for the issuing of licenses or concessions, the sale of state owned enterprises and for entering into partnerships with the private sector; and

• development and implementation of a preferential procurement policy.

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Table 3-2: Primary Legislation Regulating Procurement (Cont’d)Act Applicability What it does in Respect of ProcurementLocal Government:Municipal FinanceManagement Act, 2003 (Act No 56 of 2003)

Municipalities and municipalentities

Establishes a regulatory framework for supply chain management which includes procurement within municipalities and municipal entities.

Prevention and Combating of Corrupt Activities Act, 2004. (Act No. 12 of 2004).

Public and private sector Makes corruption and related activities an offence, establishes a Register in order to place certain restrictions on persons and enterprises convicted of corrupt activities relating to tenders and contracts; and places a duty on certain persons holding a position of authority to report certain corrupt transactions.

Construction Sector Charter (published in terms of Section 9(1) of BBBEE Act, 53 of 2003 (see above))

All stakeholders operating in the Construction Sector

Provides framework to address:• Broad based black economic empowerment (ownership, control,

employment equity, skills development, procurement, enterprise development and corporate social investment)

• Enhancement of capacity• Increase in productionIt is mandatory for all stakeholders and is effective from 5 June 2009

It is compulsory for organs of state to comply with the principles of this legislation and to comply with the “Standard for Uniformity in Construction Procurement” (SFU) of the Construction Industry Development Board (cidb).

The procedures of the cidb in its SFU are generic and can be readily aligned with World Bank W70 and other international documents.

3.2 Objectives of ProcurementThe development of skilled Professional Services providers takes many years and significant effort by all involved in the industry. Therefore, the procurement of professional services should not be viewed as the purchase of a readily available commodity, but rather the engagement of skilled professionals who should act as trusted advisors in fulfilling the client’s project and other development objectives.

While services should be offered in a competitive manner, the primary purpose of the competitiveness should be to ensure long term value for money and not only short term low cost design. Such long term value does not only encompass value in the project under consideration but also value in developing and having skilled professionals available in the country to meet its needs rather than having to import all skilled services from external sources.

The procurement of professional services in a reasonably competitive manner has exercised the minds of many people over the years with no clear resolution in sight. The best method of procurement within a country is where the selection of the professional service provider is based purely on quality and this is followed with price negotiations to obtain fair value for money. This however, requires a knowledgeable client and mature consulting environment, neither of which exists in abundance in South Africa at the present time.

Therefore, procurement needs to be approached with care in a transparent manner that encourages professionals to develop and maintain the required skills and expertise. The current cidb procurement guidelines can provide the necessary results provided the process is fair and transparent, as required by the cidb code of conduct.

3.3 Methods of ProcurementAgainst this background, Consulting Engineering Services can be procured using one of the following methodsas prescribed by the cidb Standards for Uniformity (SFU):

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Table 3-3: Methods of ProcurementMethod Description

1 Financial Offer

2 Financial Offer and Preference

3 Financial Offer and Quality (Functionality)

4 Financial Offer, Quality and Preference

For consulting engineering services, where cost effective and value–added performance is highly dependent upon innovativeness, expertise and competence, the inclusion of Quality in the criteria for selection is of paramount importance.

It is therefore recommended that in all but a small minority of cases as outlined in the SFU, Method 4 should be used – i.e. Quality and Cost Based Selection (QCBS) with preferencing as dictated the State from time to time.

However this best practice has been frustrated by the “KZN Ruling” which relegates Quality/Functionality to merely a separate hurdle. The points awarded for Quality cannot be added to the combined total score. See Appendix B for further details. It is unfortunate that this has moved current South African procurement practice further away from international best practice; see Appendices B and E for further details

3.4 cidb’s Best Practice Guidelines: Competitive SelectionIt is further recommended that the cidb’s Best Practice Guidelines as contained in the SFU, for competitiveselection procedures and as described below, should be followed (mandatory for Public Bodies).

Table 3-4: Procurement Methods: Competitive Selection ProceduresPP2A (Nominatedprocedure)

Tenderers that satisfy prescribed criteria are admitted to an electronic database. Tenderers are invited to submit tender offers based on search criteria and their position on the database. Tenderers are repositioned on the database upon appointment or upon the submission of a tender offer.

PP2B (Openprocedure)

Tenderers may submit tender offers in response to an advertisement by the organisation to do so.

PP2C (Qualifiedprocedure)

A call for expressions of interest is advertised and only those tenderers, who have expressed interest, satisfy objective criteria and who are selected to submit tender offers, are invited to do so.

PP2D (Quotationprocedure)

Tender offers are solicited from not less that three tenderers in any manner the organisation chooses, subject to the procedures being fair, equitable, transparent, competitive and cost effective.

PP2E (Proposalprocedure)

Tenderers submit technical and financial proposals in two envelopes. The financial proposal is only opened should the technical proposal be found to be acceptable.

PP2F (Proposalprocedure)

A two staged system: Non‐financial proposals are called for. Tender offers are then invited from those tenderers that submit acceptable proposals based on revised procurement documents. Alternatively a contract is negotiated with the tenderer scoring the highest number of evaluation points.

PP2G (Shoppingprocedure)

Written or verbal offers are solicited in respect of readily available supplies obtained from three sources. The supplies are purchased from the source providing the lowest Financial Offer once it is confirmed in writing.

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3.5 Points to noteQuoting cidb Best Practice Guideline A7 (Table A1, SFU): “The procurement of professional services should result in the award of a professional service contract on the basis of demonstrated competence and qualifications for the type of services required, at fair and reasonable Financial Offers. Accordingly, the underlying principle is that professional service contracts are awarded to firms which have both the capacity and capability to provide the quality of the service at a reasonable Financial Offer and not necessarily to those that are the least costly. The Constitution requires that the procurement system be cost effective. This implies that best value procurement outcomes in terms of quality, downstream and life cycle costs, timing and Financial Offer using the least amount of resources necessary to effectively manage and control the procurement process, should be strived for. Clearly selection on the basis of quality should not necessarily mean the best quality available but quality appropriate for the assignment”.

It should also be noted that drawing up tender documents that include Financial Offer and quality as bases for selection require that the scope of work and required services are adequately described so that comparable tenders are received. In addition, the process of preparing a tender can also take up a lot of time and effort on the part of the prospective tenderers.The cumulative total input cost of all tenderers can be considerable and in many cases for small projects can exceed the potential fee, with a negative effect on the finances of the service provider and on the overall economy of the project.

Therefore, as a guideline the potential fee to be earned by the consulting engineer on a project should preferably be 20 times greater than the cost of preparing an individual tender. In other words the cost to prepare a tender should not exceed approximately 5% of the potential fees to be earned. This makes economic sense bearing in mind that the fees earned must cover all staff costs involved in executing the assignment, plus overheads, expenses and profit. This means that tenders should not be solicited for small projects and where a consulting engineer is responsible for drawing up the contract documentation the following procedure should preferably be adopted:

• Preferably consider grouping small projects together.• Requesting proposals for term contracts where the consulting engineer can support the client on a

partnership basis for all small to medium projects (typically less than R3 million) over say a three year period. The advantage of this approach is that it assists with identification and implementation of projects over the three year period and also provides less cyclical and more effective employment of scarce engineering resources within the consulting engineering firm and the country. See also Appendix C.

• Listing manuals and procedures as requirements so that long‐winded technical proposals are not required, only details of the proposed staffing and track record.

Appendix D, “The Procurement Cycle – Checklist” sets out the key steps to be taken by the Client (inviting tenders) and the Consulting Engineer (submitting tenders) to ensure an orderly and compliant procedure over the full procurement cycle.

While this chapter advocates the most suitable methods of procurement for South Africa, by highlighting therole of quality, it is worthy of note to compare this with International best practice, exemplified in Appendix E,where contract award is frequently finalised by negotiations with the highest scoring tenderer.

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ChAPTEr 4. SCOPE

The scope of services and scope of work for which a consulting engineer or any other professional service provider is appointed need to be clearly defined to ensure proper pricing and a clear and unambiguous understanding of what needs to be done.

It is important to distinguish between the scopes of services and the scope of work as set out in the definitions above. This is because in many instances the both elements are not set out explicitly in the tender documents resulting in uncertainty and inappropriate pricing and expectations. This is described in more detail below.

Besides describing the services, the scope should list the “Deliverables to be produced by the Consulting Engineer”, i.e. the products of the Consulting Engineer’s work, in form of studies, reports, designs, drawings and documents. In other words, the objective of the scope of services must be to reduce to a minimum the level of uncertainty concerning the services required, for which the Consulting Engineer must develop an understanding of what is required in order to submit a Financial Offer.

4.1 Scope of Services for Planning, Studies, Investigations and AssessmentsThere are many steps related to identifying or defining and determining the overall feasibility of a project that need to be undertaken prior to appointing a consulting engineer for normal project services. In many instances, with well‐resourced clients, these identification and feasibility steps will be carried out internally as part of the client’s normal project identification and project definition processes. For example, within a road authority, roads requiring rehabilitation or resealing or complete reconstruction may have been identified and the projects defined as part of the road management system. In the case of a water authority, water demand or operational problems may result in the need for a new purification plant being identified and defined in broad terms.

As indicated earlier the first 3 steps of the project cycle involve planning and studies. The typical services relate to carrying out these studies and investigations as well as the preparation and submission of reports embodying preliminary proposals or initial feasibility studies and will normally be remunerated on a time and cost basis. The typical services will involve:

i. Consultation with the client or client’s authorized representative.ii. Inspection of the site of the project.iii. Preliminary investigation, route location, planning and a level of design appropriate to allow decisions on

feasibility.iv. Consultation with authorities having rights or powers of sanction as well as consultation with the public and

stakeholder groups.v. Advice to the client as to regulatory and statutory requirements, including environmental management and

the need for surveys, analyses, tests and site or other investigations, as well as approvals, where such are required for the completion of the report, and arranging for these to be carried out at the client’s expense.

vi. Searching for, obtaining, investigating and collating available data, drawings and plans relating to the works.

vii. Investigating financial and economic implications relating to the proposals or feasibility studies.viii. Clause (vii) does not normally apply to civil and structural services on Building Projects, where these

services are provided by a Quantity Surveyor, except as far as the interpretation of cost figures the Engineer’s scope of work is concerned.

Deliverables will typically include:• Collation of information.• Reports on technical and financial feasibility and related implications.• List of consents and approvals.• Schedule of required surveys, tests, analyses, site and other investigations.

Once the project has been properly identified and its location, form, size and function are defined, then procurement can proceed for normal project services outlined below.

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4.2 Scope of Services for normal Project Delivery StagesAfter the Client has established the project definition and requirements, the execution of the assignment canbe separated into six broad Stages. The 6 typical project design stages are shown in the figure below:

Figure 4‐1: Project Design and Implementation Stages

These individual stages are elaborated upon in more detail below:

Stage 1: Inception ‐ Establish client requirements and preferences, assess user needs and options, appointment of necessary consultants, establish the project brief including project objectives, priorities, constraints, assumptions aspirations and strategies

Stage 2: Concept viability/ Preliminary Design ‐ Prepare and finalise the project concept in accordance with the brief, including project scope, scale, character, form and function, plus preliminary programme and viability of the project)

Stage 3: Design Development/ Detailed Design ‐ Develop the approved concept to finalise the design, outline specifications, cost plan, financial viability and programme for the project)

Stage 4: Documentation and Procurement ‐ Prepare procurement and construction documentation, confirm and implement the procurement strategies and procedures for effective and timeous procurement of necessary resources for execution of the project.

Stage 5: Contract Administration and Inspection ‐ Manage, administer and monitor the construction contracts and processes including preparation and coordination of procedures and documentation to facilitate practical completion of the works

Stage 6: Close‐out ‐ Fulfil and complete the project close‐out including necessary documentation to facilitate effective completion, handover and operation of the project)

More detailed examples of the scope of service pertinent to each Stage are contained in Appendix F that also shows the typical scope of services associated with carrying out the duties of the Principal Consultant where it is appropriate to appoint the consulting engineer to carry out these duties.

6 Close Out

5

4 and Procurement

3 Design Development/ Detailed Design

2. Concept & Viability / Preliminary Design

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4.3 The Scope of WorkThe scope of work is the portion of the works for which the consulting engineer is engaged or the document that specifies and describes the supplies, services, or engineering and construction works which are to be provided and any other requirements and constraints relating to the manner in which the contract work is to be performed.

For example a client wishing to construct a Casino complex consisting of three distinct components being the Building, a Parking Area and an access road, may appoint a consulting engineer to undertake Stages 3‐6 of the normal engineering services for the Parking Area. In this case the scope of services can be defined as set out in Appendix A while the scope of work may only involve the Parking Area. Some thought will have to go into preparing the scope of work as it interfaces with other works such as stormwater runoff from the building and the interface with the access road and gate house.

The scope of work for each service provider should be carefully determined to ensure that no overlaps and duplication in terms of scope of work exist. In some cases the consulting engineer will be required to appoint specialist sub‐consultants in which case the consulting engineer will ensure that no duplication in terms of scope occurs.

A few examples of scope of work are provided below for clarity.

Table 4‐1: Examples of Scope of WorkBuildings The work in respect of site boundaries and fencing, foundations, electrical, air conditioning, wet

services, fire protection, structural, roofing, waterproofing, stormwater, etc should be clearly allocated. If the design is to be undertaken by a multidisciplinary professional team (Architect, Quantity Surveyor, Engineer, etc.) the responsibilities of the consulting engineer in such a team must be clearly indicated.

roads The beginning and end of the road should be indicated, whether the scope includes structures, hydrological analysis and drainage, stormwater, roadside furniture, pavement layer works, traffic analyses, selection of borrow pits, road marking, signage etc. It should also be indicated who will be responsible for liaison with interested and affected parties and for ensuring public participation.

Structures The scope of work should be clearly indicated in respect of site investigations, foundations, interaction with other structures and facilities, design review, and similar.

Electrical The scope of work should be clear in respect of bulk services provision, power lines, substations, power connections and liaison with utilities, backup power, earthing, lightning protection, security services, access control, data and telephony, lighting, electrical reticulation and switchboards, etc.

Mechanical Clarify, if air conditioning, wet services, pumps, lifts, escalators, fire protection etc. are to be performed by one or more specialist engineers.

Dams The Scope of Services and Scope of Work should be described, in detail to enable tendering consultants to identify the level of accreditation of design staff to be identified. The Scope of Work should be clear in respect of geological and hydrological investigations to be undertaken prior to preliminary and detail design, plus the extent of design to be undertaken by contractors, and likewise the Scope of Work in the electrical and mechanical disciplines.

MunicipalServices

The Scope of Services and Scope of Work should be clearly described for the consulting engineer to accurately identify the range of services to be designed by him (e.g. Roads, Stormwater Drainage, Sewerage, Water Supply, etc.) and which are to be designed by others, including the extent of simultaneous working and coordination required. The extent of construction to be undertaken by emerging contractors or using labour‐based methods should also be clear.

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4.4 Important ConsiderationsThe anticipated Professional Services Providers Register to be published by the cidb will have to be taken into account when compiling the Scope of Services.

The examples of Scope of Services provided in Appendix F, are comprehensive, but generic. Items should be extracted from the generic scope or modified in each stage of the project in which the Client requires services to be performed by the Consulting Engineer. These examples also show additional services where the client requires the Consulting Engineer to perform PA/PM duties in addition to the consulting engineering services (especially if the Consulting Engineer is the sole consultant). In such cases the selected duties from the PA/PM scope must be added to those of the Consulting Engineer, for the Consulting Engineer to act as PrincipalConsultant in addition to acting as Consulting Engineer.

If it is necessary for the Client’s Scope of Services to be more specific to the discipline(s) of the Consulting Engineer (e.g. Civil, Structural, Electrical or Mechanical) then suitable items should be added to the generic scope, either alongside the generic items or in place of them, as appropriate.

In the preparation of the Scope of Services a number of key factors, common to every Scope, need to be borne in mind and taken into account when framing the tasks required in each Stage:

Table 4‐2: Key Factors in Developing ScopeObligations of the parties

The tasks required and listed by the Client should clearly all fall within the obligations of the Consulting Engineer (the successful tenderer). If a listed task falls within the Client’s obligations but requires a Consulting Engineer to perform it, it should be described as being “on behalf of the Client” to avoid implying it is solely the Consulting Engineer’s obligation and accord with the obligations of the parties as stated in the intended contract for the services

health and Safety Legislation such as the OHS Act lays down comprehensive actions to be taken by parties responsible for safety. This includes the Client, who may wish to delegate specific actions or tasks to an OHS practitioner. The previous practice where the Client simply nominated the Consulting Engineer as the Safety Agent is no longer permitted due to conflict of interest.

Sustainability Environmentally sustainable design and energy efficiency are becoming a common underlying requirement in every project, with obligations on the Client and consulting engineer. The Client’s sustainability policy should be made known to the consulting engineer, who in turn should be tasked with advising the Client on the project sustainability and/or assisting to set sustainability targets.

Information available The execution of the assignment will be based on information available at its commencement, which may have to be augmented in order to perform the services required. It is important that the extent of information available to the consulting engineer, and information yet to be obtained by him, be clearly identified at the outset, to avoid any misconceptions. Where the client is unable to define the scope accurately, for example if the assignment is an investigation or study whose nature and extent are unknown, then it is important to tell the tenderers what the client has allowed for, by way of budget or estimate of manhours

In all cases the Scope of Services must reflect the Client’s full intentions and be sufficiently described so as to enable the tendering Consulting Engineer to identify all the tasks required of him, in a manner which will enable him to estimate the times to be spent by his personnel allocated to each task and hence to quantify his tender.

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Failure by the Client to prepare the Scope of Services in sufficient detail and with sufficient clarity will cause the tendering Consulting Engineer to make assumptions and/or misinterpret the Client’s requirements, and price unnecessarily for risks which could be avoided with a sufficiently detailed scope. Misinterpretation could result in the consultant pricing too low or too high. Either way, will not be in the interests of the Client, the Consulting Engineer, or the project.

It frequently arises that clients need to procure consulting engineering services before being able to write a specific Scope of Work and Scope of Services for the project or projects. These circumstances favour “Framework Agreements” through which a consulting engineer’s services are retained for a set period and the consulting engineer is employed as required for suitable projects within the period. Alternatively using “Term Contracts” consulting engineers can be individually appointed in advance to execute selected projects when their scopes can be defined (see Appendix C).

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ChAPTEr 5. TEnDEr DOCuMEnTATIOn FOr COnSuLTInG EnGInEErInG SErvICES

The purpose of this chapter is to guide consulting engineers and clients in the drawing up of documentation for the procurement of consulting engineering services in line with the principles and documentation of the cidb. An aim of this guide is to achieve reasonable uniformity in respect of documentation and content in the interests of a more efficient industry.

5.1 Model for uniformityThe Construction Industry Development Board (cidb) and in particular the SFU, has been in the forefront of initiatives for uniformity in procurement documentation and the guidelines which follow have drawn on the recommended sequences and standardised documents contained in the cidb’s “Construction Procurement Toolbox”. These items have been adapted to be generic to consulting engineering services and to construction services and to be relevant to the compiler, be he/she client or consulting engineer.

The procurement of services takes place within the process of offer and acceptance which results in a contract being entered into. Procurement documents provide tenderers with the necessary inputs to allow them to complete their tender submissions. These submissions are in turn inputs into the contract to be concluded following acceptance of a tender offer. Uniformity in the documentation is based on the principle that there be a complete separation in the component documents making up the tender enquiry – namely, conditions of tender, conditions of contract, specifications or scope and methods of measurement and payment. This allows for instance, different contract conditions, or also payment conditions to be used without affecting the remaining component documents.

5.2 Guidelines for Compiling the DocumentationA full listing in a standard sequence taken from Section 4 of the SFU is attached as Appendix G. It should be noted that in all Professional Service provider documentation, quality or functionality should play a prominent role.

The completion of tender enquiry documentation which is complete and appropriate to its purpose is critical to the project’s success, in terms of efficiency and cost effectiveness of the procurement process.

It recommended the references below be consulted for further information regarding procurement documentation endorsed by the cidb:

i. Revised Standard for Uniformity in Construction Procurement (SFU)ii. cidb Construction Procurement Best Practice Guideline C3 – Adjudicationiii. Standard Professional Services Contracts by cidb, NEC, and FIDICiv. General Conditions of Contract GCC 2010, BCC, NEC and FIDICv. Other references:

i. PROCSA Form of Agreementii. CESA Short Form of Agreement

Consulting Engineers should note that when their assignment includes tender documentation for construction services, the cidb prescripts herein applying to tender documentation for procuring professional services, apply equally to the procurement of construction services.

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ChAPTEr 6. vALuE – ADDED SErvICES

The purpose of this chapter is to guide the consulting engineer towards an appropriate and effective method of determining the Financial Offer to be quoted in his tender.

Through emphasis on clarity of the client’s requirements to be priced for and the “value” to the client of the services being offered, the consulting engineer will be better equipped to demonstrate when and how acceptance of his Financial Offer will give the most value to the client.

Clearly, acceptance of the lowest financial offer quoted will deny the client the opportunity of assessing the value added to the project through other offers.

6.1 The Concepts of Financial Offer and QualityIn accordance with the Constitution a procurement process shall be Fair, Transparent, Competitive and Cost effective. Consulting Engineers are accustomed to tendering under competitive conditions with submission of a tender Financial Offer, but unlike products or goods which are well known and well defined in terms of size and quality, tendering for delivery of professional services involves intangibles, in form of activities and deliverables which are specific to the project and need to be carefully described in the Scope of Services and Scope of Work.

Even when this is accepted, the tendency is often for clients to rely on the Financial Offer alone, neglecting quality (Treasury uses “functionality” and cidb uses “quality”), and award contracts to the tenderers with the lowest Financial Offer. Clients need to remember that they are not procuring “products” from consulting engineers, but “services” to develop or produce a product, in form of the project. Such projects invariably have costs associated with them which go far beyond the purchase price – such as operating, maintenance, or other life cycle costs.

The methods which only use the financial offer as a basis for evaluating tenders for professional services is not appropriate for consulting engineering services as it encourages shortcuts and cannot be used where there are no clear and binding specifications for the quality of the work to be provided. It inevitably leads to poorer quality services with resulting higher life cycle costs.

It is also not sufficient to ask for a tender based on a price alone and then to assume that professionals will deliver a quality service because they are “professionals”. It is well known that remuneration systems should reward desirable performance. Therefore, if the desirable performance is a low price then this will be delivered, but always with a concomitant reduction in quality. Examples of this would be to design a building by only analysing the most critical elements and copying the result to all less critical elements, or in the case of a road neither optimising the alignment nor maximising the use of available materials and instead adopting the simplest alignment from the point of view of design and using only commercially available materials for the pavement.

If the Scope could be defined accurately and the quality specified for every item in the schedule, such as in a conventional construction contract, then competition based on price alone will be acceptable. However, this is difficult to achieve in a request for professional services in the construction industry in view of the uncertainties associated with the Scope during the project development process.

The tender Financial Offer must therefore reflect a reasonable effort to be expected from the consulting engineer to optimise all such costs. This is seldom, if ever, reflected in the lowest Financial Offer received for services as described above. The words quoted by John Ruskin are as relevant today as they were over a hundred years ago:

“It is unwise to pay too much, but it is worse to pay too little. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing

you bought it to do.”

John Ruskin (1819‐1900) i

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To put the matter in perspective, if one considers the total life‐cycle costs of a project as 100%, this will comprise:

“Engineering design” typically represents 1 to 2 percent of the overall lifecycle cost of a project, with construction accounting for approximately 6 to 18 percent of the cost. All the rest ‐ 80 to 93 percent of the lifetime asset cost ‐ is accounted for by operations, annual and capital maintenance and decommissioning. Depicted on Chart 6‐1 below.

note: the Consulting Engineer’s fee can be of the order of 10% of project cost, but this will be less than 2% oftotal life‐cycle costs. This 2% can dictate the outcome of 98% of the total costs!

Chart 6‐1: Typical Life‐Cycle costs

While one should not necessarily always accept the lowest Financial Offer, accepting a higher Financial Offeralso has limits. Consider the graph in Fig. 6‐1 below:

Figure 6‐1: Price – Quality Curve

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There is a direct relationship between Financial Offer and Quality or Effort, but it is not a linear one. At “A” The pressure on the financial offer with no quality emphasis will generate less engineering effort. This will result in sub‐optimal designs and higher life‐cycle costs. Put simply, the client “gets what he pays for”.

At “B” the consultant has no constraints whatsoever on his engineering input and this can result in maximum quality and minimum life‐cycle costs. However the price for this will come at a premium. Note that the graph is asymptotic towards B, ie significant further increases in financial offer will not render significantly better quality or lower life‐cycle costs. In other words, focus on quality alone can result in waste.

The optimum position to be targeted is at “C”, where engineering input is not constrained by lowest price considerations alone, and it is recognised that consideration of quality will allow the tendering consulting engineer to offer the client the full benefit of his experience, calibre of staff, soundness of methodology, innovation and enterprise.

In the context therefore of professional consulting engineering services the concept of “financial offer” is inextricably linked to that of “quality” of the service. Together these aspects determine the “Value” contained in and around the tender financial offer. Also refer Practice Note 8, version 2, SFU, as clients may wish to make multidisciplinary appointment.

6.2 The Concept of valueAccepting that the procurement of the services is done in a manner which is fair, transparent, competitive and cost effective, the client or employing authority needs the assurance that the services being procured for the financial offer tendered will be commercially viable; in other words, the services will add sufficient value to the intended project to justify the award of a contract at the tendered Financial Offer.

This introduces the concept of the “Value” of the services offered in the consulting engineer’s tender, which has many interpretations in the context of consulting engineering services and can best be expressed as “the optimum combination of financial offer and quality”. “Value” should:

• Secure for the client value‐for‐money services,• Achieve minimum life cycle costs (i.e. long term value for money) and• Should ensure that the project will fulfil its intended purpose.

Adequate opportunity must be given in the procurement process to enable the consulting engineer to show convincingly that:

• Value‐for‐money services are offered• Minimum life cycle costs are critical to the success of the project and• The Financial Offer will demonstrate the value of the inputs which are offered.

In summary, the Client must receive value for the money he will pay, and the consulting engineer must be paid adequately for the value he will provide.

It follows therefore that Value is a factor which should be quantified in the consideration of tenders by clients and employing authorities. This too is open to various interpretations; however the most straightforward method to quantify Value is the determination of the Tender Score in terms of Preference, Quality and Financial Offer being individually assessed and then scored in a manner appropriate to the nature, size, and complexity of the project. This is described more fully in Appendix B.

6.3 Guidelines for Pricing of TendersThe success of a project depends at the outset upon the acceptance by the client or employing authority and the consulting engineer of the Financial Offer tendered and the contractual conditions attached thereto. The consulting engineer needs to be sure his interests are protected and the client comfortable with the financial arrangements in the contract. Without these there will be no basis upon which good relations between the parties – essential for a smooth‐running contract and a successful project – can be built.

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This section is devoted to assisting the consulting engineer to realistically and appropriately develop the tender Financial Offer, while at the same time providing a useful indication to the client of the financial commitments and risks facing the consulting engineer. For the consulting engineer there are essentially three “golden rules” to be followed:

6.3.1 Golden rule no 1 ‐ Know the project requirementsIt can safely be stated that in the procurement of consulting engineering services, no two projects are exactly the same, i.e. each project is unique. Therefore the offer of services to execute the assignment must be tailored to suit the project. This is where the consulting engineer can demonstrate his understanding of the project requirements and differentiate his services such that the client can accept his financial offer with confidence and with knowledge of the value to be added.

Central to understanding the requirements of the project is a clear and unambiguous Scope to be supplied by the client. These terms must state all the client’s requirements for the project including scope of services, scope of work, deliverables, standards and constraints. The Scope must be sufficient for the consulting engineer to identify all the task areas and sub‐tasks required, in order to price realistically for them, with minimum assumptions, with clear understanding of the risks, and without any omissions.

If the client is using a procurement system based on prequalification and short listing of tenderers, a call for Expressions of Interest will be followed by requesting priced proposals (tenders) from the shortlisted firms. The prequalification criteria will not be project‐specific and only request details of similar experience and capacity in order to select pre‐qualified tenderers. Thereafter a request for proposals including a clear scope will be issued for pricing.

Procedures whereby a client uses a generic set of criteria or blanket functionality requirements to admit potential tenderers to a standing list or panel and thereafter invite only priced proposals as and when the Scope can be detailed are also acceptable for smaller, repetitive projects.

The consulting engineer should demonstrate his knowledge of, and familiarity with the project and its technology, through selection of staff ideally suited to the tasks and by displaying the necessary track record. Where required, the consulting engineer can also expand upon the value to be added through a write up of methodology or plan of work indicating innovative techniques, value‐added procedures and optimal use of resources. It is vital for the consulting engineer to give these aspects close attention, since this is where evaluation of the tender on grounds of quality will focus. The consulting engineer would be wise to take carefully the client’s quality evaluation criteria for the project into account, towards maximising his quality score.

Lastly, if the Scope is unclear in any area, the consulting engineer is advised to seek clarity from the client. Clarification opportunities are frequently given in the tender period, but if not, the rule should be “if in doubt – ask!”

6.3.2 Golden rule no 2 ‐ Know your costs involvedThe approach most frequently used to determine the financial offer is termed Cost‐Based Pricing. Crucial to this exercise is a clear understanding of the costs involved. The generation of an accurate manpower schedule or resources programme is ideal, but it will fail as a basis for financial offer determination if correct costs are not known. The following items should be considered, in a “zero‐based” budget approach:

• For consulting engineers, costs generally comprise two components – Staff Costs, and Company Overhead. Together these add up to the total costs of operating the firm. Staff Costs must include the person’s total remuneration (“cost to company”). A multiplier is then applied to cater for all Company Overhead costs, including cost of unproductive (unbillable) time. The value of the multiplier for officebased staff, excluding unproductive time, is typically of the order of 2, i.e. total costs = Staff costs x 2. The overhead multiplier should however be checked at regular intervals within the firm. To these total costs can then be added a percentage for profit, selected for the tender. The total of these “costs plus profit” per annum divided by the number of productive billable hours per year will give the chargeable hourly rate for the person concerned.

• Note that office‐based staff usually attracts a higher overhead than site‐based staff.

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• A useful guide to the value of the multiplier is the historic “cents per hour per hundred Rand of salary” method recommended to determine hourly based Time Charges by consulting engineers. Depending on the person’s seniority/responsibility in the fi rm these ranged from 16.5c, 17.5c to 22 “cents per hour for each R100 or part thereof of annual salary plus bonus” of the person (for the latest fi gures kindly refer to Clause 4.4 of the ‘Guideline Scope of Services and Tariff of Fees for Persons registered in terms of the Engineering Profession Act, 2000’ available on the ECSA website at http://www.ecsa.co.za/documents/20090101_TimebasedFees.pdf). It is emphasised that this is a comparative guide – there is no substitute for knowing one’s own true costs.

• If contract staff, not in‐house, or subconsultants are proposed, their total cost to the company should be determined plus a mark‐up for administration and profi t. Again an hourly rate should be arrived at.

• Reimbursable expenses need to be estimated for the above resources, in form of travelling, accommodation, printing/reproduction, communications and similar costs, based on the tasks involved, the scheduled manpower and the programme.

• The cost of special services such as surveys, investigations and tests should be estimated and itemised, to be included if necessary in the tender Financial Offer.

It is important in this phase to comply with three key requirements, which at fi rst glance appear confl icting:• Ensure nothing is omitted,• Offer only what is asked for• Adequately assess the infl uence of factors beyond one’s control.

For this purpose the tasks can be broken down by:• Function (e.g. technical, administrative) or• Stage (inception, concept and viability, design development, etc.) or• Activity (meetings, design, checking, training,) as best suits the tender.

A useful guide to determine your costs is provided in the following table:

Table 6‐2: Calculating Charge‐out RateUnbillable HoursAuditing and AccountingMarketingTransportInterest and Finance ChargesAdmin SalariesHead Offi ce ChargesMaintenance and DepreciationRates, Electricity and Water etcInsurancesRentals and Leases

Company Overheads= multiple of staff cost

added to Staff Cost Company Overheads+

Staff Costie Total Cost

divided by billable hours= rate/hour

add for Profi t= Charge‐out Rate/hour

Skills LeviesAllowancesOvertimeSubscriptionsCompany Contributions(Medical Aid, Pension, UIF)Leave PayBonusesBasic Salary

Staff Cost= Cost to Company

orTotal cost of Employment

6.3.3 Golden rule no 3 ‐ Know the Client’s situationThe consulting engineer who has mastered a knowledge of the project and knowledge of his costs may consider it irrelevant to “know the client”. In reality this is not so; no two clients can be said to be identical in all respects – there will be differences in structure, strategies, resources, policies, and procedures for procuring consulting engineering services.

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It is therefore valuable for the consulting engineer to know the client insofar as this can affect the manner inwhich he performs his assignment. For example, the following typical aspects within the client’s ambit need to be considered:

• Capability to produce, and adhere to, a clear and sufficient Scope• Ability to fund, or to timeously procure funding for the project• Adequate resources to administer the contract• History of payment of fee invoices on time• Sufficient technical capability for reviews and to grant approvals• Need to be offered training or mentoring• Experience in frequent use of consulting engineering services• Ability to responsibly evaluate and award consulting (and construction) contracts

These aspects can materially influence the level of Financial Offer to be aimed at in the tender concerned and the consulting engineer tendering will need to make adjustments for items such as the following:

• Profit mark‐up• Pricing for contingencies or risk• Pricing for work not called for but necessary, in expectation of not done by client• Pricing for unrealistically tight (or slack) deadlines• Pricing for work assumed, but not confirmed required• Adding a margin in lieu of qualifying the tender• Provision for productivity delays to be expected in executing the work for the client

The aspects above are discussed further below

6.4 The relevance of a BenchmarkA benchmark is useful for both the Client , who needs to have a yardstick against which to compare all tender Financial Offers received and so test these against a norm, and also for the Consulting Engineer, who seeks an indication as to the adequacy of his Financial Offer for the project services. For this purpose it is beneficial to both parties to use a “benchmark” for evaluating the Financial Offer.

An appropriate benchmark is the Guideline Scope of Services and Tariff of Fees prepared by the Engineering Council of South Africa (ECSA) and published annually in the Government Gazette. This has for many years been used to calculate a recommended fee which is equitable in normal circumstances, using a recognised scope of services in various stages and engineering disciplines.

The fee calculation is based on a percentage of the cost of the project (which is not a ‘ceiling fee’); the lower the project cost the higher the percentage, and vice versa. Furthermore the ECSA percentage‐based fees can be adjusted by recommended factors to cater for complexity of the work, for partial services, and for high material cost relative to engineering effort, e.g. railways and certain types of road. The ECSA recommendations also include hourly rates for work done on a “Time and Cost” basis, for various levels of engineering practitioner.

The ECSA benchmark is most effective when determined for the estimated or given cost of the project in question, to give a “Benchmark/Yardstick Fee”. This can be then further adjusted up or down with a multiplier to take into account the particular project circumstances as seen by the tendering consulting engineer, and so give a ”Yardstick Fee” appropriate to the tender Financial Offer being quoted by him.

6.5 The MultipliersTypical circumstances for which a multiplier can be used in answering typical circumstantial questions are discussed below:

The multiplier should be at the Consulting Engineer’s discretion, say in the range 0.60 to 1.60 as follows:

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Table 6-3: Multiplier rangeMultiplier Circumstances0.6 – 1.0 “favourable” circumstances

1.0 ”normal” or “reasonable” circumstances;

1.0 – 1.6 “negative” circumstances

Typical questions to be asked by the Consulting Engineer are:• Is Scope complete and clear?• Is the client well versed in procuring consulting engineering services?• Does client have adequate resources for competent tender evaluation?• Does the consulting engineer have a record of successful projects with the client?• Can hours be saved from earlier similar work done or previous experience?• Is the staff proposed reasonably priced, ideally suited to the project and able to meet the task durations

assumed?• Is the consulting engineer better placed than most for specialist services?• Is the project location clearly advantageous for the consulting engineer?• Will the risks perceived be easy to manage or be very difficult to handle?• Is the level of complexity of the project normal or will it be very complex?• Does the consulting engineer have a low order book and need the work?• Will the project start date and duration require tender Financial Offer adjustment, if no provision for

escalation?

By selecting and applying a suitable multiplier for each circumstance, a particular “Adjusted Benchmark Fee”can be determined for each case. The average of the sum of all the particular fees used can give an indication ofthe “Yardstick Fee” for the tender being submitted by the consulting engineer.

Table 6-4: Example: Calculating an “Adjusted Benchmark”Specific Circumstances Benchmark MultiplierFavourable (0.6 – 1.0), reasonable (1.0), negative (1.0 – 1.6) F r n

Scope complete and clear 1.0

Informed Client 0.9

Previous appointments 1.2

Savings – previous experience 0.6

Project location 1.0

Staff – cost suitable and competent 0.8

Risks – perceived to be easy or difficult to manage 1.3

Project complexity level – low, normal or high 1.0

Consulting Engineer has low order book and needs the work 0.7

Average Multiplier (for this example) 0.94

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6.6 The Concept of “value Bidding”Value Bidding, developed in the USA, represents an unusual treatment of competitive bidding theory which refocuses the traditional bidding model from fee‐based selection criteria to one with value‐based selection criteria.

The system uses an established market research methodology, “conjoint analysis”, to establish the probability of winning, considering client priorities, competitors’ attributes and market conditions. The resulting analytical model enables engineers to analyse market conditions, client preferences, track competitors, while maximising the probability of winning, thereby maximising profit and optimising Financial Offer.

The model relies heavily on assumptions and requires a dedicated effort to apply it. Its greatest value probably lies in pricing consulting services for large and complex projects. A reference on the subject is given at end of this chapter.

6.7 Points to noteUnderstanding how a tender Financial Offer is made up is of benefit to both client and consulting engineer. Clients need to be made aware of the “Value” offered by tenderers in terms of a combination of quality and Financial Offer.

The definition of Scope of Services which is appropriate for the project and sufficient to tender upon are in the client’s and consulting engineer interest. If professional assistance is required to achieve this, the engagement of a consulting engineer by the client is advised.

To submit a fair Financial Offer, the consulting engineer needs to know:• the project• this costs and• the client.

This applies especially if the Scope is vague in the risks to be assumed.

Prequalification to a consultants’ panel using generic criteria followed by pricing only from panel members will only ensure value for the client when a proper definition of Scope accompanies the RFP.

The use of a recognised “Benchmark” as a yardstick, against which both client and consulting engineer can evaluate the Financial Offer, is considered essential. The ECSA recommended guideline fees as gazetted should be used for this purpose.

There is no such thing as a “discounted fee” – rather a benchmark fee adjusted up or down for various projectspecific circumstances relating to the scope of services to be offered.

reference:“Addressing Pricing: Value Bidding for Engineers and Consultants” by C S Sturts and F H Griffis. Journal of Construction Engineering and Management, ASCE, June 2005.

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ChAPTEr 7. EvALuATIOn OF TEnDErS

This chapter sets out recommended steps to be taken in framing enquiry documents suited to evaluation, and steps to evaluate tenders, with Quality consideration being an essential part of the evaluation process (as taken from the SFU).

7.1 cidb’S Best Practice MethodA standardised method for Evaluation of Tenders, again following the cidb documentation (Table 2, SFU), is mandatory. The method that is generally appropriate for consulting engineering services is Method 4 that is outlined below:

Method 4:FinancialOffer plusQuality andPreference

1. Score Quality, rejecting all offers that fail to score minimum points for quality, stated in Tender Data

2. Score tender evaluation points for financial offer.3. Confirm tenders eligible for preferences claimed and if so score tender evaluation points for4. preferencing5. Calculate total tender points6. Rank tender offers from highest number of tender evaluation points to lowest7. Recommend tender with highest tender evaluation points for award unless compelling

reasons not to do so

7.2 Evaluation CriteriaIt is essential for the enquiry documents to state clearly the evaluation criteria and scoring systems that will be used in the tender adjudication process. If the tender document states that a criterion will be used to evaluate the tenders then clarity must be provided on exactly how that criterion will be adjudicated and weighted relative to other criteria.

Section 4.4.3 of the SFU, Tender Data, requires the Client to provide information, usually in the Tender Data section of the documents, on the following items:

• The method to be used in evaluation of tenders• The weighting between financial offer (NFO), quality (NQ) and preference (NP)• Quantified descriptions of the preferences, including conditions associated with granting of preferences, and

the manner in which preferences will be scored. It is recommended that clients and consulting engineers in the construction sector make use of the Construction Scorecard as contained in the Construction Industry Charter, which was promulgated on 5 June 2009 http://www.publicworks.gov.za/PDFs/documents/Charters/Construction_Charter_Version_6‐Final%20‐26‐01‐06.pdf

• Details of the quality criteria and sub‐criteria which are to be evaluated, and the manner in which quality is to be scored

To ensure a fair, equitable transparent and cost effective procurement system, the:• quality of the outputs or deliverables of the service must satisfy client requirements and expectations• service must come with the reasonable skill and care that is normally used by professionals providing such

services and• advice is independent of any affiliation, economic or otherwise, which may cause conflicts between the

service provider’s interests and those of the client.

7.3 recommended ApproachFor Consulting Engineering services, the nature of the project can influence the criteria selected for Quality. For example, for “Repeat” or Straightforward” projects, the work can probably be carried out by less well qualified and less experienced staff while quality in terms of cost‐effective design will still be important. Therefore, the Quality criteria will lean towards the firm’s previous experience and cost effective design capabilities. In the case of feasibility studies or other projects requiring strategic and complex or innovative thought processes and designs, the staff qualifications and experience as well as the firms experience and capacity to undertake the work will all be very important.

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Similarly, the weighting of the Quality relative to the Financial Offer may be less for simple projects than for more complex projects.

It is recommended that all tenders for engineering services contain a minimum number of quality points to qualify to have the tender evaluated any further and that all tenderers that do not meet the minimum offer be excluded from further evaluation and informed as such.

Overall, the relationship between Financial Offer and Quality plus Preferences is also dependent on the value of the project as specified in the Preferential Procurement Framework Act. By way of example, for consulting assignments valued at less than R500 000, a ratio of 80:20 is mandatory; for higher value assignments, the mandatory ratio is 90:10.

These aspects are illustrated by means of the tables below which are based on recommendations in the cidbpublications referenced at end of this chapter concerning Evaluation of Quality in Tender Submissions, but with certain differences as follows:

• The differences relate to the Scoring against the Ratings, ‘Very Good/ Good/ Satisfactory/ Poor’ being 100/90/70/40 by the cidb, but 100/70/50/0 in this CESA Guide.

• This is firstly because the “Poor” rating implies the offer is “unsatisfactory”. The descriptions of “Poor” also state inter alia “the technical approach and/or methodology is unlikely to satisfy project objectives or requirements….etc.” On these grounds CESA recommends the tender should not be awarded the contract because it will not meet the client’s requirements. Hence a zero is used.

• Secondly, “Good” and “Satisfactory” mean nearly the same in terms of acceptability, so the rating for “Good” is decreased from 90 to 70. At the same time this sets “Very Good” at 100 apart from the other criteria, which is appropriate because this is within the bounds of excellence.

• Finally, it is important to note that the actual result of applying the stated weighting of Quality relative to the Financial Offer also depends on the relative values of the two criteria. For example, if all quality scoring is in a very narrow range of – say – 80 to 85 and the financial scoring gives a much higher range of say 50% to 100% then the financial scoring will far outweigh quality even with a high relative weighting for quality.

• Clearly it is essential for reviewers to have had experience in such evaluations. If the necessary resources do not exist within the client organisation, specialists or other consulting engineers not connected with the tender should be retained to assist with evaluations.

7.4 Evaluation ProcedureThe first step in the evaluation procedure is to evaluate the score for quality offered by prospective tenderers using 3 quality reviewers (appropriately professionally and technically qualified officials ‐ see Treasury Regulations) and adjusting these scores if required due to major scoring differences as shown in Table 7.6.

The next step is to reject all tenders that do not make the minimum quality score (if one has been specified) and inform them of this fact in writing.

If a two‐envelope procedure is being used, the third step is to inform all qualified tenderers of the time and date when the Financial Offers will be opened and evaluated, and to announce these offers at that meeting. With a single envelope procedure, the third step is to evaluate the Financial Offers which have crossed the “Quality hurdle”.

The next step is to calculate the final evaluation score in line with the cidb SFU as summarised below forMethod 4: Financial offer, Quality and Preferences evaluations.

The following definitions and formulas apply for the Public Sector or Organs of State:

nT = WC + nP where,NT = Total score awarded to the tenderer under consideration (max 100).WC = Score for Quality and financial offer (max 90/80).NP = Score for Preferencing (max 10/20).WC = W3 X [1 + (S ‐ Sm)] Sm

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W3 = the number of tender evaluation points available for quality and financial offer and equals 90/80,S = the sum of percentage scores for quality and financial offer of the submission under consideration.Sm = the sum of percentage scores for quality and financial offer of the submission scoring the highest number of points.

Scoring financial offersnFO = W1 X A where,NFO = the percentage score achieved for financial offer,W1 = The percentage score given to financial offer and equals(refer to Table 7‐2 or 7‐3 for level of project percentage score according to the nature of projects)A = PM /PPm = the comparative offer of the most favourable tender offerP = the comparative offer of the tender offer under consideration.

Scoring preferencesnP = nOP X EP/100 where,NP = number of preference points achieved,NOP = maximum tender evaluation points provided for in the Regulations pertaining to the Preferential Procurement Policy Framework Act (Act 5 of 2000) (100 ‐ W3 evaluation points),EP = the percentage of equity ownership by HDIs within the business enterprise.

Scoring Quality (functionality)WQ = W2 X SO /100 where,WQ = the percentage score achieved for quality,W2 = the percentage score given to quality and equals to (100 – W1)SO = the score for quality allocated to the submission under consideration.

The following definitions and formulas apply for the Private Sector

NEV = Total evaluated score.Nm = Score for Price.NQ = Score for Quality.NP = Score for Preferencing.W1 = Weight assigned to price.W2 = Weight assigned to quality.

Andnm = W1 x Pm /Pwhere Pm is the lowest price received from qualified tenderers and P is the tender under consideration. (calculated to 2 decimal places)nQ = W2 x S/Mswhere MS is the maximum possible quality score and S is the quality score for the tender underconsideration. This formula simplifies to: nQ = S if W2 and Ms are the same as suggested in the tablesbelow.

AndnEv = nm + nQ + nPFinally rank tender offers from the highest number of tender evaluation points to the lowest and award thework to the tenderer scoring the highest number of tender evaluation points, unless there are compelling and justifiable reasons not to do so.

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7.5 Points to noteIt is recommended that only a few appropriate criteria be selected for judging a consulting engineer to limitduplication ie select mutually exclusive criteria.

The involvements of women and black persons should not be evaluated in the form of quality in public contracts. This must be addressed in the preferencing points allocated.

The indicators in Tables 7‐1 to 7‐6 below which are used to score tendered offer against Quality criteria illustrate the attributes of the consulting engineer which will bring enhanced value to the client’s project.

At the time of writing, the evaluation procedures have been frustrated by the “KZN Ruling” which relegates Quality/ Functionality to a separate hurdle. The points awarded for Quality cannot be added to the combined total score for Price and Preference. See Appendix B.

In these circumstances, a higher than normal hurdle level should be considered when Quality is of paramount importance in the services being tendered for, clearly depending on the particular nature of the project.

references:cidb Best Practice Guideline No. A4, Evaluating Quality in Tender Submissionscidb Inform Practice Note No. 9, Evaluation of Quality in Tender Submissions

7.6 Tables for the Evaluation of Tenders

Table 7-1: Nature of ProjectsThis table gives guidelines for determining the nature of the project. Five project types, Feasibility Studies and Investigations, Innovative, Complex, Straightforward and Repeat projects are defined in the table. The Descriptions show that for all except Repeat projects, the experience and capability of the tenderer will be key.

nature of Project DescriptionFeasibility studies and investigations

These projects may be large or small and require specialised skills depending on the nature of the study / investigations. While some of the inputs may be readily identifiable or known, this may not be true of the outputs. These projects may require skills other than normal engineering such as economics, environmental, sociological etc. The deliverable is most probably a report with recommendations on the way forward.

Innovative projects Innovative projects may also be large or small and require a very high degree of specialised skills or knowledge in a specific field. The work will be technically complex and will call for considerable innovation, creativity, expertise and / or skills. The need for specialist advice may often only be identified by the already appointed consulting engineer once a project has commenced and a client should respect his consulting engineer’s advice in this regard. Some examples of specialist assignments are certain geotechnical investigations, forensic engineering, mediations, etc.

Complex projects Complex projects may also be small or large but are of such a nature that they require a higher level of technical skills and greater resources. Both inputs and outputs may not be readily identifiable or known. These projects may require skills other than normal engineering, such as management, policy and social development, strategic planning and research. The consulting engineer must be able to present a high level of technical skills and resource for the particular application.

Straightforward projects These are projects where the tasks are of a straightforward nature involving mainly standard technologies, in terms of which inputs are relatively well known and outputs can be readily defined. Larger projects may require the consulting engineer to have a greater capacity and resources to undertake the work.

Repeat projects These are projects where the tasks are also of a straightforward nature involving mainly routine and periodic maintenance activities typical to a Client’s obligation to maintain assets that require inputs from Professional Service Providers. These projects may entail the appointment of a PSP for a fixed term period.

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Table 7-2: Quality Criteria and Points Scale ‐ 20 Points for PreferenceThis table shows an example of Quality Criteria and Points Scale for small projects, using a Quality plus Financial Offer / Preference ratio 80:20. Note that the more complex the project, the higher the proportion of points for Quality. Also, of the 9 Quality Criteria, it is recommended that not more than 6 criteria, suited to the project type, be selected to avoid double counting from overlap between the 9 criteria. Within the 6 selected criteria, the allocation of points can be varied as shown to give the client’s weighting to each criterion, but always totalling the maximum Points for Quality for that project type.

Quality Criteria Feasibility studies

and investigations

Innovative Projects

ComplexProjects

Straight‐forwardProjects

repeat Projects

Maximum Points for BBBEE

20 20 20 20 20

Maximum points for Quality and Financial Offer

80 80 80 80 80

Maximum Points for Financial Offer

15 15 20 30 30

Maximum Points for Quality

65 65 60 50 50

1. Adequacy of proposed work plan and methodology

10 10 10 5 5

2. Qualifications and Competence of key staff in relation to the scope of work

20 20 15 10 15

3. Demonstrated experience (past performance) incomparable projects

10 10 10 10 10

4. Approach proposed to attain the employer’s stated objectives (including training)

10 10 10

5. Demonstrated experience with respect to specific aspects of the project

10 10 10 10

6. Sound knowledge of the employer’s policies or work procedures (or both)

10

7. QA systems which ensure compliance with employer’s stated requirements

5 5 5 5

8. Organisation, logistics and support resources

10 5

9. Demonstrable managerial ability appropriate to size and nature of the work

5

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Table 7-3: Quality Criteria and Points Scale ‐ 10 Points for PreferenceThis table indicates an example of the Quality Criteria and Points Scale for large projects. Note the 90:10 Quality plus Price / Preference ratio. The allocation of points for Quality and selection of Quality Criteria are similar to the above Table.

Quality Criteria Feasibility studies

and investigations

Innovative Projects

ComplexProjects

Straight‐forwardProjects

repeat Projects

Maximum Points for BBBEE

10 10 10 10 10

Maximum points for Quality and Price

90 90 90 90 90

Maximum Points for Financial Offer

15 15 20 35 35

Maximum points for Quality

75 75 70 55 55

1. Adequacy of proposed work plan and methodology

10 10 10 10 5

2. Qualifications and Competence of key staff in relation to the scope of work

25 25 20 10 10

3. Demonstrated experience (past performance) in comparable projects

15 15 20 15 15

4. Approach proposed to attain the employer’s stated objectives (including training)

5 5

5. Demonstrated experience with respect to specific aspects of the project

10 10 10

6. Sound knowledge of the employer’s policies or work procedures (or both)

10 10

7. QA systems which ensure compliance with employer’s stated requirements

10 10 10

8. Organisation, logistics and support resources

10 10

9. Demonstrable managerial ability appropriate to size and nature of the work

5

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Table 7-4: Indicators to be used when Scoring Tenderers on Quality CriteriaThis table shows how the nine Quality Criteria shown in these example tables can be rated. Four ratings for scoring, Poor, Satisfactory, Good and Very Good are used and a description of each of these ratings for each of the nine Quality Criteria is presented. Here it will be noted a score of zero is recommended against a “Poor” rating. For the nine Quality Criteria the Evaluation Indicators use descriptors such as “unlikely to satisfy project requirements”, key staff not adequately qualified”, limited experience”, “limited knowledge”, “does not have a Q.A. system”’ and similar, which justifies the unacceptability of the criterion concerned.Criteria rating Scoring Evaluation Indicators1 Adequacy of

proposed work plan and proposed methodology

Very Good 100 The important issues are approached in an innovative and efficient way, indicating that the tenderer has outstanding knowledge of state‐of‐the‐art approaches

Good 70 The approach is specifically tailored to address the specific project objectives and methodology and is sufficiently flexible to accommodate changes that may occur during execution

Satisfactory 50 The approach is generic and not tailored to address the specific project objectives and methodology. The approach does not adequately deal with the critical characteristics of the project

Poor 0 The technical approach and/or methodology is poor / is unlikely to satisfy project objectives or requirements. The tenderer has misunderstood certain aspects of the scope of work and does not deal with the critical aspects of the project

2 Qualifications andcompetence of the key staff (assignedpersonnel) in relation to the scope of work

Very Good 100 The tenderer demonstrates that key staff are exceptionally well qualified and competent in the application of their skills that relate to the scope of the project

Good 70 The tenderer demonstrates that key staff are adequately qualified and competent in the application of their skills that relate to the scope of the project

Satisfactory 50 The tenderer demonstrates that key staff are reasonably well qualified and competent in the application of their skills that relate to the scope of the project

Poor 0 The tenderer was not able to demonstrate that key staff are reasonably well qualified and competent in the application of their skills that relate to the scope of the project

3 Demonstratedexperience (past performance) in comparable projects

Very Good 100 Key staff have outstanding experience in comparable projects

Good 70 Key staff have adequate experience in comparable projects

Satisfactory 50 Key staff have reasonable experience in comparable projects

Poor 0 Key staff have limited experience in comparable projects

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4 Approach proposed to attain the employer’s stated objectives (including training)

Very Good 100 An innovative approach is presented that illustrates the tenderer’s approach has been tailored to be relevant and meet the client’s objectives in all aspects

Good 70 The approach presented illustrates that the tenderer will adopt an approach that meets the client’s objectives

Satisfactory 50 The tenderer proposes a generic approach that will meet the client’s objectives in most aspects

Poor 0 The approach presented does not meet the client’s expectations and will not result in the objectives of the project being fully realised

5 Demonstratedexperience with respect to specific aspects of the project

Very Good 100 Key staff have outstanding experience in specific aspects of the project that were defined as key components of the assignment in the SOW

Good 70 Key staff have adequate experience in specific aspects of the project that were defined as key components of the assignment in the SOW

Satisfactory 50 Key staff have reasonable experience in specific aspects of the project that were defined as key components of the assignment in the SOW

Poor 0 Key staff have limited experience in specific aspects of the project that were defined as key components of the assignment in the SOW

6 Sound knowledge ofthe employer’s policies or work procedures (orboth)

Very Good 100 The tenderer has outstanding knowledge of the employer’s policies and work procedures

Good 70 The tenderer has adequate knowledge of the employer’s policies and work procedures

Satisfactory 50 The tenderer has reasonable knowledge of the employer’s policies and work procedures

Poor 0 The tenderer has limited knowledge of the employer’s policies and work procedures

7 Quality assurancesystems which ensure compliance with stated employer’srequirements

Very Good 100 The tenderer is certified to maintain an internationally accepted quality assurance system

Good 70 The tenderer’s quality assurance system meets the quality assurance requirements set by the employer for the project

Satisfactory 50 The tenderer employs a reasonable quality assurance system

Poor 0 The tenderer does not have a quality assurance system

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8 Organisation, logistics and support resources

Very Good 100 The tenderer convincingly illustrates that extensive organisational, logistic and support resources will be available for execution of the project

Good 70 The tenderer convincingly illustrates that sufficient organisational, logistic and support resources will be available for execution of the project

Satisfactory 50 The tenderer reasonably well illustrates that sufficient organisational, logistic and support resources will be available for execution of the project

Poor 0 The tenderer fails to illustrate that sufficient organisational, logistic and support resources will be available for execution of the project

9 Demonstrablemanagerial abilityappropriate to the size and nature of the work

Very Good 100 The tenderer illustrates extensive knowledge and experience in the project management of projects of similar size and complexity

Good 70 The tenderer illustrates adequate knowledge and experience in the project management of projects of similar size and complexity

Satisfactory 50 The tenderer illustrates reasonable knowledge and experience in the project management of projects of similar size and complexity

Poor 0 The tenderer illustrates limited knowledge and experience in the project management of projects of similar size and complexity

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Table 7.5. Refers specifically to the Quality criterion no. 2, “Qualifications and competence of Key Staff (assigned personnel)”. It is completed by the client when issuing tenders for the project, and indicates, for six typical staff positions, the Preferred and Minimum points required for each of six attributes of qualifications and experience. In addition suggested points values are shown for each project type described in Table 4.1 in the example at top of the table.

nature of project

required for project

Qualification Years experience after qualification

Professional registration

Years experience after registration

Involvement in comparable projects – state number in past ten years

Project value of comparable projects in past six years – state r’000

Y/n Pref Min

Offe

r

Pref Min

Offe

r

Pref

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

This refers specifically to the Quality criterion no. 2, “Qualifications and competence of Key Staff” (assigned personnel). It is completed by the client when issuing tenders for the project, and indicates, for six typical staff positions, the Preferred and Minimum points required for each of six attributes of qualifications and experience. In addition suggested points values are shown for each project type described in the example at top of the table below.)

Table 7-5. Examples of Qualification and Competence of Key Staff

nature of project

required for project

Qualification Years experience after qualification

Professional registration

Years experience after registration

Involvement in comparable projects – state number in past ten years

Project value of comparable projects in past six years – state r’000

Y/n Pref Min

Offe

r

Pref Min

Offe

r

Pref

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

Proj

ect L

eade

r

Feasibility studies and investigation

Y Deg Deg 15 10 Y 10 7 5 3 ?

Innovative Projects

Y Deg Deg 15 10 Y 10 7 3 1 ? ?

Complex Projects

Y Deg Tech 10 8 Y 5 3 5 2 ? ?

Straight forward Projects

Y Deg Tech 8 5 N N/A N/A 5 2 ? ?

repeat Projects

Y Deg Tech 5 5 N N/A N/A 5 2 ? ?

Des

ign

Engi

neer

Feasibility studies and investigation

Innovative Projects

Complex Projects

Straight forward Projects

repeat Projects

Mat

eria

ls E

ngin

eer

Feasibility studies and investigationInnovative Projects

Complex ProjectsStraight forward Projectsrepeat Projects

43

Table 7.5. Refers specifically to the Quality criterion no. 2, “Qualifications and competence of Key Staff (assigned personnel)”. It is completed by the client when issuing tenders for the project, and indicates, for six typical staff positions, the Preferred and Minimum points required for each of six attributes of qualifications and experience. In addition suggested points values are shown for each project type described in Table 4.1 in the example at top of the table.

nature of project

required for project

Qualification Years experience after qualification

Professional registration

Years experience after registration

Involvement in comparable projects – state number in past ten years

Project value of comparable projects in past six years – state r’000

Y/n Pref Min

Offe

r

Pref Min

Offe

r

Pref

Offe

r

Pref MinO

ffer

Pref Min

Offe

r

Pref Min

Offe

r

This refers specifically to the Quality criterion no. 2, “Qualifications and competence of Key Staff” (assigned personnel). It is completed by the client when issuing tenders for the project, and indicates, for six typical staff positions, the Preferred and Minimum points required for each of six attributes of qualifications and experience. In addition suggested points values are shown for each project type described in the example at top of the table below.)

Table 7-5. Examples of Qualification and Competence of Key Staff

nature of project

required for project

Qualification Years experience after qualification

Professional registration

Years experience after registration

Involvement in comparable projects – state number in past ten years

Project value of comparable projects in past six years – state r’000

Y/n Pref Min

Offe

r

Pref Min

Offe

r

Pref

Offe

r

Pref MinO

ffer

Pref Min

Offe

r

Pref Min

Offe

r

Proj

ect L

eade

r

Feasibility studies and investigation

Y Deg Deg 15 10 Y 10 7 5 3 ?

Innovative Projects

Y Deg Deg 15 10 Y 10 7 3 1 ? ?

Complex Projects

Y Deg Tech 10 8 Y 5 3 5 2 ? ?

Straight forward Projects

Y Deg Tech 8 5 N N/A N/A 5 2 ? ?

repeat Projects

Y Deg Tech 5 5 N N/A N/A 5 2 ? ?

Des

ign

Engi

neer

Feasibility studies and investigation

Innovative Projects

Complex Projects

Straight forward Projects

repeat Projects

Mat

eria

ls E

ngin

eer

Feasibility studies and investigationInnovative Projects

Complex ProjectsStraight forward Projectsrepeat Projects

44

nature of project

required for project

Qualification Years experience after qualification

Professional registration

Years experience after registration

Involvement in comparable projects – state number in past ten years

Project value of comparable projects in past six years – state r’000

Y/n Pref Min

Offe

r

Pref Min

Offe

r

Pref

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

Con

trac

ts E

ngin

eer

Feasibility studies and investigationInnovative ProjectsComplex ProjectsStraight forward Projectsrepeat Projects

res

iden

t Eng

inee

r

Feasibility studies and investigationInnovative ProjectsComplex ProjectsStraight forward Projectsrepeat Projects

Ass

t r

esid

ent E

ngin

eer

Feasibility studies and investigationInnovative ProjectsComplex ProjectsStraight forward Projectsrepeat Projects

45

nature of project

required for project

Qualification Years experience after qualification

Professional registration

Years experience after registration

Involvement in comparable projects – state number in past ten years

Project value of comparable projects in past six years – state r’000

Y/n Pref Min

Offe

r

Pref Min

Offe

r

Pref

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

Pref Min

Offe

r

Con

trac

ts E

ngin

eer

Feasibility studies and investigationInnovative ProjectsComplex ProjectsStraight forward Projectsrepeat Projects

res

iden

t Eng

inee

r

Feasibility studies and investigationInnovative ProjectsComplex ProjectsStraight forward Projectsrepeat Projects

Ass

t r

esid

ent E

ngin

eer

Feasibility studies and investigationInnovative ProjectsComplex ProjectsStraight forward Projectsrepeat Projects

46

The table below represents a worked example for a Complex project, in the 90:10 Points System range taken from Table 7‐3, showing the evaluation results of 3 Reviewers, using the same 5 of the 9 Quality Criteria, and the same weightings, as in Table 7‐3.The Ratings between Reviewers should not differ by more than one step from each other. In the Initial Assessment however, in Quality Criterion 1, Reviewer 3’s rating of “Poor” differs markedly from “Good” and “Very Good” of Reviewers 1 and 2. Similarly, in Quality Criterion 3, Reviewer 2’s rating of “Satisfactory” differs markedly from “Very Good” of Reviewers 1 and 3.Because of these “outliers” tabled by Reviewer’s 3 and 2, such significant deviations merit discussion and further consideration by the Reviewers, towards increased consensus. The second sheet of this table shows this has been done. Although some Ratings changed in the re‐assessment, there were finally no outliers.

Table 7-6. Assessment Example: Complex Project. Bid Value in The 90:10 Points System Range

Initial Assessment of Quality Criteria Weight

reviewer 1 reviewer 2 reviewer 3AverageScore

Points for

Qualityrating Score rating Score rating Score

1. Adequacy of proposed work plan and proposed methodology

10 VG 100 G 70 P 0 56.67 5.7

2. Qualifications and competence of key staff(assigned personnel) in relation to the scope of work

20 G 70 S 50 G 70 63.33 12.6

3. Demonstrated experience (past performance) in comparable projects

20 VG 100 S 50 VG 100 83.33 16.7

5. Demonstrated experience with respect to specific aspects of the project

10 S 50 P 0 S 50 33.33 3.3

7. QA systems which ensure compliance with stated employer’s requirements

10 P 0 S 50 P 0 16.67 1.7

Maximum points for Quality 70.0 Points for Quality of tenderer under consideration 40

Final Assessment of Quality Criteria(after panel discussion) Weight

reviewer 1 reviewer 2 reviewer 3AverageScore

Points for

Qualityrating Score rating Score rating Score

1. Adequacy of proposed work plan and proposed methodology 10 VG 100 G 70 G 70 80.0 8.0

2. Qualifications and competence of key staff (assigned personnel) in relation to the scope of work

20 G 70 S 50 G 70 63.33 12.6

3. Demonstrated experience (past performance) in comparable projects

20 G 70 S 50 G 70 63.33 12.7

5. Demonstrated experience with respect to specific aspects of the project

10 S 50 P 0 S 50 33.33 3.3

7. QA systems which ensure compliance with stated employer’s requirements

10 P 0 S 50 P 0 16.67 1.7

Maximum points for Quality 70.0 Points for Quality of tenderer under consideration 38.3

47

ChAPTEr 8. PErFOrMAnCE MOnITOrInG

Since its establishment in 1952, the S.A. Association of Consulting Engineers (today known as Consulting Engineers South Africa – CESA) has been committed to upholding and advancing the standard of services offered by its member firms. It is currently a requirement that every member firm shall have its own Quality Management System (QMS) which complies with the international standard for quality ISO 9001: 2008. Many firms have obtained ISO certification of compliance with the standard, including CESA itself.

To strengthen the integrity of members and combat fraudulent practices in the Construction Sector, CESA has recently introduced the Business Integrity Management System (BIMS) into its Code of Conduct, to which members are required to adhere.

Clients and employing authorities frequently wish to know that the performance of consulting engineers employed by them do indeed meet the CESA standards. CESA encourages the use of a performance evaluation mechanism by clients as this can indicate to the client whether his choice of consulting engineer was correct. Some clients maintain a database recording the performance of their consulting engineers, which assists them in their selectionprocesses. With feedback from the client monitoring the consulting engineer’s performance, evaluations can enhance the standard of services in the industry in the longer term.

The focus of this chapter is on the presentation of a suggested standard evaluation system, which can be used or adapted by clients to monitor a consulting engineer’s performance to meet the objectives above. Table 8‐1 show a typical Consulting Engineering Performance Scorecard as recommended by CESA.

8.1 Communication and LiaisonIf the consulting engineer is to provide the client with the standard of service required then it is essential that there be good and ongoing communication between the parties. This process should begin at the award of the contract to the successful tendering consulting engineer. At this time the brief to the consulting engineer must be confirmed by the client, with confirmation of the requirements given in the tender Scope or if these are to be modified, withnegotiation and contractual agreement on the terms of the contract.

The Scope must inter alia include items such as all technical requirements, financial conditions, budget constraints, programme requirements and approval processes. The consulting engineer is advised to prepare his own list of questions beforehand, towards ensuring a brief which is complete. The need for a comprehensive brief appropriate to the project cannot be overstated – it will form the basis of the working relationship between the parties and minimise the risk of misunderstandings which can lead to problems or disputes later.

The client should also advise the consulting engineer of his intention to monitor the latter’s performance. It is highly likely that the consulting engineer’s own quality management system requires completion by the client of a “Client’s Satisfaction Questionnaire” during and/or at end of the assignment. In such cases it is desirable for the parties to collaborate on the framework of the evaluation system so that it meets the requirements of both parties. Table 8‐2 shows a typical Customer Satisfaction Questionnaire from the Quality Management System of a smaller Consulting Engineering firm.

Where the client finds serious or repetitive cases of inadequate performance or transgressions of the CESA Code of Conduct by a member firm, this should be reported to the Executive Director of CESA who will investigate the matter and take action against the member if necessary. Alternatively, complaints against individuals (not firms) registered with the Engineering Council of South Africa may be lodged by the client with ECSA.

Clearly, the implementation of a process of regular performance monitoring should avoid the need for such drastic steps.

8.2 Suggested Performance Monitoring and Evaluation ProcessThe process suggested is based on the client’s consideration of key activities by the consulting engineer and using a scorecard system to evaluate the consulting engineer’s performance.

48

The scoring system uses categories of evaluation that have been found through research to be important to clients and uses selected sub‐categories as shown in Table 8‐3. Clients could modify or add sub‐categories to suite their own particular needs, if required and still divided by the total maximum possible score to come up with a comparable percentage final rating.

8.3 Points to noteStrictly speaking this chapter on monitoring the performance of consulting engineers is not part of the procurement process. It is however relevant to include it as a sequel to procurement, because arising from the emphasis on quality in the evaluation of tenders submitted by consulting engineers, the monitoring of their performance will assist to ensure that the highest standards of quality are maintained. The facility of client feedback giving ongoingopportunity for improvement in the quality of services is furthermore vital in this process that will maximise benefits of services to our society.

The recommended methods for monitoring as described above represent an initiative of CESA – Consulting Engineers South Africa, delivered in the interests of the procurement of professional services by the client body.

Many consulting engineering firms will have in their QMS a procedure to record Client Satisfaction, as required by ISO 9001:2008 and this can be used for monitoring the Consulting Engineering Performance in place of Table 8-1. A typical Client Satisfaction Survey form is included here as Table 8‐2.

Table 8-1: Consulting Engineering Performance ScorecardPerformance rating Scale

1Very Poor

2Improvement

Required

3Satisfied

4Above Average

5Excellent

Guide for Scoring ‐ Criteria for EvaluationVery Poor Client extremely unhappy; not prepared to use firm again unless vast improvement.

ImprovementRequired

Client not happy and dissatisfied, but would use firm again, provided key issues addressed.

Satisfied Client generally satisfied he has received value for money; would use the firm again.

Above Average Client received more than contracted value, firm went beyond brief. Would re‐use them.

Excellent Client highly impressed; firm went the extra mile, adding significant value. Would definitelyprefer to use the firm again.

Item Description (Qualitative Criteria) Score1 Quality of Design

1.1 Creativity / Innovation and Appropriateness

1.2 Understanding Client & Legal Requirements

1.3 Documentation and Drawings

1.4 Environmental Issues / sustainability.

1.5 Health and Safety Issues

1.6 Life Cycle Costs

49

Item Description (Qualitative Criteria) Score2 Adherence to Time Constraints

2.1 Completion of Work Stages

2.2 Response to Queries

3 recognition of Cost

3.1 In Designs

3.2 Protecting Client Interests

3.3 Accurate Costs and Forecasts

3.4 Scope control

4 Project Administration

4.1 Record Keeping

4.2 Legal and Financial

4.3 Programme

4.4 Minutes and Reporting

4.5 Handling Variation Orders and Claims

5 Communication and Interfaces

5.1 Jurisdictions / Stakeholder Consultations

5.2 Client, other Consultants and Contractors

5.3 Managing investigations, monitoring and testing

6 Construction and Post Construction

6.1 Monitoring during construction

6.2 Documentation and ‘As-Built Drawings’

6.3 Oversight during maintenance period

6.4 Contract Administration

7 General

7.1 Staff competency

7.2 Head Office Support

7.3 Discipline A

TOTAL SCOrE

FInAL rATInG : [AvErAGE SCOrE = Total Score/number of line items scored]

50

Table 8-2: Client Satisfaction Survey

Client Contact

Consulting Engineer Contact

Project Number andDescription

We would be grateful if you could spare a few minutes to complete this Client Satisfaction Survey to help us ensurethat our standard of professional services exceeds expectations whenever possible.Please tick the appropriate box to indicate your degree of satisfaction where:

1Very Poor

2Improvement

Required

3Satisfied

4Above Average

5Excellent

Guide for Scoring ‐ Criteria for EvaluationVery Poor Client extremely unhappy; not prepared to use firm again unless vast improvement.ImprovementRequired

Client not happy and dissatisfied, but would use firm again, provided key issues addressed.

Satisfied Client generally satisfied he has received value for money; would use the firm again.Above Average Client received more than contracted value, firm went beyond brief. Would re‐use them.Excellent Client highly impressed; firm went the extra mile, adding significant value. Would definitely

prefer to use the firm again.

Service Attributes 1 2 3 4 5 Comments and SuggestionsCommunication andInterfaces

Contract And ProjectAdministration

Technical Competency

ProjectManagement

TimeBudgetQualitySupportandFeedback

Do you have any comments or suggestions that would help us improve our quality of professional services?

Signature of Client: Date:

51

Table 8‐3: Guide for Scoring ‐ Criteria for Evaluationnote Each Category E to A has 8 aspects. Those aspects appropriate to the project

should be used to evaluate each of the Activities in each Project Stage on Table 8‐1 and 8‐2. The Score for A, B, C, D, or E is then assigned to each activity on the above mentioned tables.

E. very Poor Did not identify project objectives, omitted to deal with all aspects of the brief.(Max score = 1) Key staff very inexperienced, unable to deal with all aspects of the project.

Key staff insufficiently skilled and not competent to undertake the work.Virtually no knowledge of client policies/procedures, minimum support and communication.No Quality Management System evident, adherence to Quality inadequate.No proper organisational, logistic and support resources deployed to the project.Virtually no knowledge and experience in management of similar type projects.Failed to meet all critical deadlines and budgets, minimal senior staff involved.

In Summary: Client extremely unhappy; not prepared to use firm again unless vast improvement.

D. Improvement required Did not satisfy project objectives, critical aspects of brief not dealt with properly.(Max score = 2) Key staff lacked sufficient competence, did not apply their skills correctly.

Key staff lacked adequate experience to deal with key aspects of the project.Limited knowledge of client policies/procedures ‐ insufficient support, poor communication.Not enough organisational, logistic and support resources deployed for project.Limited knowledge and experience in management of similar type projects.Failed to meet some deadlines, some budgets exceeded, insufficient senior staff involved.

In Summary: Client not happy and dissatisfied, but would use firm again, provided key issues addressed.

C. Satisfactory Used a generic approach to the brief, critical aspects inadequately dealt with.(Max score = 3) Key staff reasonably well qualified and competent to apply skills to the project.

Reasonable knowledge of client’s policies and work procedures, support and communication evident.Use of an in‐house QMS, generally able to meet most client requirements.Indication of sufficient organisational, logistic and support resources available and deployed.

In Summary: reasonable knowledge and experience in management of similar type projects.

B. Above Average Approach tailored to meet project objectives, with flexibility to meet changes.(Max score = 4) All key staff adequately qualified and competent to apply skills to project scope.

Key staff showed adequate experience in comparable projects, applied to this project.Adequate knowledge of client’s policies and work procedures, supported by good communication.Consulting Engineers QMS meets the client’s quality assurance requirements for the project.Sufficient organisational, logistic and support resources convincingly used.Adequate knowledge and experience in management of similar type projects, competently applied.All deadlines met and budgets held, clear evidence of senior staff involvement.

In Summary: Client received more than contracted value, firm went beyond brief. Would reuse them.

A. Excellent Important issues handled innovatively and efficiently, in a state‐of‐the‐art manner.(Max score = 5) Key staff exceptionally well qualified and competently applied their skills to the project.

Key staff showed outstanding experience in comparable projects, to benefit of this project.Outstanding knowledge of client’s policies and work procedures, excellent support and

communicationConsulting Engineer’s QMS internationally certified and meets all client’s QA requirements.

Extensive organisational, logistic and support resources convincingly used.

Extensive knowledge and experience in management of similar type projects, expertly applied.

Deadlines and budgets met with significant time/cost savings, strong involvement of senior staff.

In Summary: Client highly impressed; firm went the extra mile, adding significant value. Would definitely prefer to use the firm again.

52

APPEnDIX A: InTEGrITY PACT

IntroductionDeveloped by Transparency International (TI) during the 1990s, the integrity pact is a tool aimed at preventing corruption in public contracting. The pact is essentially an agreement between a government or government department (at the national, sub‐national or local level) and all bidders for a public contract. It stipulates rights and obligations to the effect that neither side will: pay, offer, demand or accept bribes; collude with competitors to obtain the contract; or engage in such abuses while executing the contract.

TI has seen the pact tried and tested over ten years in hundreds of contracts in over 15 countries. What makes it a unique tool is the introduction of an independent monitoring system under the leadership of civil society, which ensures increased accountability of public resources.

What is an integrity pact?1. A written agreement between the government/government department and all bidders to refrain from briberyand collusionBidders are required to disclose all commissions and similar expenses paid by them to anyone in connection with the contract. If the written agreement is violated then the pact describes the sanctions that shall apply. These may include:

• Loss or denial of contract;• Forfeiture of the bid or performance bond and liability for damages;• Exclusion from bidding on future contracts (debarment); and• Criminal or disciplinary action against employees of the government.

2. A monitoring system that provides for independent oversight and increased government accountability of the public contracting processIn most cases, monitors are members of civil society or experts appointed by (and reporting to) the TI Chapter and its civil society partners. The independent monitoring system aims to ensure that the pact is implemented and the obligations of the parties are fulfilled. The monitor performs functions such as:

• Overseeing corruption risks in the contracting process and the execution of work;• Offering guidance on possible preventive measures;• Responding to the concerns and/or complaints of bidders or interested external stakeholders;• Informing the public about the contracting process’s transparency and integrity (or lack thereof).

Why use an integrity pact?• Companies can abstain from bribing safe in the knowledge that

A. their competitors have provided assurances to do the same, andB. government procurement, privatisation or licensing agencies will follow transparent procedures and

undertake to prevent corruption, including extortion, by their officials• Governments can reduce the high cost and distorting impact of corruption on public procurement, privatisation or

licensing in their programmes, which will have a more hospitable investment climate and public support.• Citizens can more easily monitor public decision‐making and their government’s activities.

Integrity pacts in practiceIntegrity Pacts have already been successfully utilised in several countries worldwide including Argentina, Colombia, Germany, India, Indonesia, Italy, Latvia, Mexico, South Korea, Pakistan, and United Kingdom.

Article taken from Transparency International (the global initiative against fraud and corruption) website at http://www.transparency.org/global_priorities/public_contracting/integrity_pacts

53

APPEnDIX B: ThE CASE FOr uSInG METhOD 4: FInAnCIAL OFFEr, QuALITY AnD PrEFErEnCE

In October 2009, a court in KZN ruled that that when evaluating government or quasi‐government tenders, the points awarded for Quality (aka Functionality) could not be added to the points awarded for Price and Preference to arrive at the Total Points awarded for the tender.

The ruling effectively said that the PPPF Act (which disallowed Quality, Price and Preference scores to be combined) takes precedence over the PPPFA Regulations (which allowed Quality, Price and Preference scores to be combined).This set the cat amongst the pigeons because this is directly opposed to what the cidb prescribes in its Method 4 contained in its Standard for Uniformity (see http://www.cidb.org.za/Documents/KC/cidb_Publications/Stand_Codes_Other/Stand_codes_gg33239_28May2010.pdf) ie evaluators must add the points for Quality, Price and Preference and the tender is awarded to the tenderer with the highest number of Price plus Preference points (excluding points for Quality).

National Treasury issued a circular on 13 September 2010 (see below) saying that Quality can be used a ‘hurdle’ which tenderers must first overcome before their tenders are considered under the Price and Preference criteria. For example, tenderers must achieve a quality rating of 70% before their Price and Preference points are added together and the tender is awarded to the tenderer with the highest number of points.

The circular goes on to say that persons in the construction sector are obliged to follow the prescripts of the cidb which in turn must follow the laws of SA. This means that unless the cidb can get an exemption to the KZN Ruling it must also require that Quality/Functionality be evaluated on a ‘hurdle’ basis and thereafter all qualifying bidders are to be evaluated on Price and Preference where highest score ‘wins’ the bid.

The cidb facilitated a workshop on 16 September 2010 amongst construction sector stakeholders which reached unanimity on the following points:

• cidb SFU Method 4 should be retained in the long term as its withdrawal will have a major impact upon certain types of procurement

• The drafting of the Act left a lot to be desired and no reason could be found why method 4 could not be applied at face value

• One cannot apply Method 4 as the combining of Quality points to Price and Preference points has been disallowed by the KZN Ruling.

• Support for cidb’s approach to restricting the use of Method 4 to certain types of procurement if necessary• Support for cidb approaching the Minister to apply for an exemption to the application of a formula which leads

to negative results• Agreed that an amendment had to be made to the SFU, which as a minimum withdraws the requirements relating

to the invalid Preferential Procurement Regulations• Support for a range of interventions including the granting of exemption from the Act for Method 4 to amending

the Act.

It was clear at the workshop that stakeholders firmly believe that the score for Quality must be combined with the scores for Price and Preference so that tenderers are encouraged to develop their Quality aspects beyond the bare minimum, which point of view CESA strongly supports.

In the interim clients and consulting engineers will have to implement National Treasury’s ruling to the effect that:

Quality must be used a ‘hurdle’ which tenderers must first overcome before their tenders are considered under the Price and Preference criteria. For example, tenderers must achieve a quality rating of 70% before their Price and Preference points are added together and the tender is awarded to the tenderer with the highest number of points.

It is recommended that Clients specify a higher ‘hurdle’ score for Functionality/Quality to ensure that bids/tenders are not won on Price and Preference alone, with scant regard for the quality of engineering services delivered.

54

APPEnDIX C: FrAMEWOrK AGrEEMEnTS AnD TErM COnTrACTS

It frequently arises that clients need to procure consulting engineering services before being in a position to identify specific projects and hence being unable to write a detailed, project –specific Scope of Services and Scope of Work. Inthese circumstances the procurement of consulting engineering services by means of a “Framework Agreement” or “Term Contract” provides a more feasible approach, which can give a more expeditious means of appointing a consulting engineer. The Framework Agreement is designed to allow the client to invite tenders from consulting engineers to carry out work on an “as instructed” basis over a set term. Generally The Framework Agreement is between two parties that establishes their terms for services over a set period of time, within a broad scope of work, without guaranteeing any quantum of services. The rationale behind using such agreements is that it saves the client from having to procure from the market each time a service, covered by the Framework Agreement, is required. This results in savings in procurement time and costs whenever a delivery requirement (also called a Task Order or Call‐off contract) is to be made for a specific project.

Framework Agreements are only entered into with consulting engineers who have the resources and capability to carry out the services envisaged and must include the means by which the consulting engineer is remunerated for the instructed work. Hence the evaluation of tenders for Framework Agreements must be based on quality as well as price – and not price alone. The Client’s quality criteria and basis of remuneration of the consulting engineer must accordingly be clearly indicated in the tender document. An example is given below :

Client: A major Metropolitan MunicipalityPurpose: Creation of a pool of consulting engineers to be allocated Task OrdersRequired: Framework Agreements with selected consulting engineers, for 3 yearsScope of Services: 26 different “Service Areas” described – e.g. OHS Assessments, Gravel road maintenance andconstruction, Urban roads (large works), Traffic engineering, Electrical engineering (Buildings) etc., etc.Scope of Work: Described in general terms for each Service AreaQuality criteria: Tenderers satisfying the following specific criteria per Service Area become eligible :

• Suitable in‐house capabilities• 50% of Directors and Members professionally registered• Primary business is consulting engineering• Minimum total turnover and turnover within Framework scope• Professional Indemnity insurance

Further particular Quality criteria• Tenderer’ s experience in relation to the Service Area• Adequacy of resources for the service• Knowledge of issues pertinent to the service• Experience of tenderer for the last 5 years• Value added by tenderer (Aspects by client, responses by tenderer)

Pricing Requirements• Key staff categories required by client, e.g. Principal Consultant (Rate/hr), Professional (Rate/hr), Salaried staff

(Cents/hr/R00 of TACE), Site staff (TACE {Total Annual Cost of Employment} X Factor)• Client’s allocation of staff to each Service Area• Client’s formula to reduce prices to a common comparative base

Returnable Schedules Include• Experience of Principal Consultant• Experience of tenderer, last 5 years• Value added: responses by tenderer to aspects named by client• Tender Assessment schedule, formula by client

55

Of the four forms of contract endorsed by the cidb, the NEC is the most suitable for use as a Framework document. Subsequent to the Framework Agreement it can be used for different types of contract for Task Orders – notably Target Contracts.

A type of contract similar to the Framework Agreement can also be used where a client has determined the project types to be delivered in an ensuing period (say two or more financial years), but the Scope of Services and Scope of Work in each case cannot yet be clearly defined. Tenders are invited for the “Provision of Professional Engineering Services” for the period concerned. To be eligible, a tenderer must inter alia have a local office, plus specified key personnel (e.g. Project Leader, Project Engineer, Resident Engineer etc.) and carry a stated minimum P.I. insurance cover.

The Scope of Services is the Normal Services set out in the ECSA Guideline Tariff of Fees plus certain Additional Services. This approach does not utilise subsequent Task Orders or Call‐off contracts; appointments for the ensuing projects can be made directly, based on successful responses to this tender. A typical example is given below:

Client: A major Metropolitan MunicipalityPurpose: To procure Professional Engineering Services for 8 projectsRequired: Agreements with selected consulting engineers selected for the projectsScope of Services: Normal Services + some Additional Services of the ECSA Guideline Tariff of Fees (described)Scope of Work: Description of each of 8 projects envisaged, e.g. Basic Sanitation, Extension to Water and Sewer systems,Rehabilitation of streets, Major Road widening, etc. In addition specifications given for ancillary services such aslaboratory services, GIS services, Contract documentation, Construction Supervision, Design criteria, Client approvals.Quality criteria: For each project, names of staff available in each category named by client plus comparable projects inlast 5 years entered on schedulePricing requirements: Based on Percentage‐based fees in ECSA Guideline Tariff using Activity schedules to be priced for each project, consisting of:

1. Estimated contract amount (given)• Primary fee• Secondary fee• Markup + or – on Primary and Secondary fees by tenderer

2. Extra over fees for stated additional services (e.g. Resident Engineer) with unit/rate/quantity/amount3. Recoverable Expenses for stated items (e.g. printing) with unit/rate/quantity/amount4. Provisional cost sums named by client (e.g. laboratory services) with % markup by tenderer5. Total of Subtotals (1) to (4)

Tenders are evaluated on the basis of Quality + Price + Preference.

56

APPEnDIX D: ThE PrOCurEMEnT CYCLE – ChECKLIST

Item no. Task Principal Actions By Guidance1 Establish what is to be procured

1.1 Identify the Service

1. Clarify what is to be procured Client Get confirmation to proceed

1.2 Prepare broad Scope of Work

1. Develop a title for identification of the project2. Describe Employer’s objective for the

services3. Describe the services, what must be

provided4. Describe extent of the services, including

deliverables

Client Have scope approved

1.3 Estimate financial value of proposedprocurement

1. Estimate cost of service for budget purposes (allow for VAT, Escalation and Contingencies)

Client Ensure budgetary provisionis made in appropriate year(s)

1.4 Commenceprocurementprocess

1. Go/no go decision, based on scope and estimates

2. Obtain procurement reference number. If in a major capital project, do an evaluation

Client Obtain approval to proceed tocomply with MFMA

2 Decide on Procurement Strategies2.1 Confirm the

preferentialprocurement policy

1. Identify specific goals to be pursued2. Identify broad implementation procedures

Client Comply with relevant policy, of Organisation, Provincial,National

2.2 Confirm contract and Pricing strategies

1. Choose appropriate Type of Procurement PP2A‐F depending on nature of the assignment

2. Choose suitable form of contract for pricing fees e.g. Lump sum, Time Charge, % fees with markup etc.

Client See cidb Best Practice GuideA1, Procurement ofProfessional Services.Consider if Normal, Framework, or Term Agreement desirable

2.3 Agree Targetingstrategy

1. Select best methodology to implement preferential procurement policy, to comply with PPPFA.

2. Define goals and method of preferencing

Client Unbundling into smallercontracts. Support emerging firms J.V.s Established/emerging firms

2.4 Agree Targetingstrategy

1. Select best methodology to implement preferential procurement policy, to comply with PPPFA.

2. Define goals and method of preferencing

Unbundling into smallercontracts. Support emerging firms, Joint Ventures Established/emerging firms

2.5 Finalise Procedure

1. Obtain approval of final procurement procedure to invite Tenders and conclude Agreements

Client Confirm in line with officialprocurement policies

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Item no. Task Principal Actions By Guidance3 Invite Tender Offers

3.1 Prepare tenderdocuments

1. Include documents to prequalify respondents, to obtain tender offers and set terms and conditions of the contractual Agreement

2. Compile documents in accordance with standards.

3. Describe Scope of Services in fullest detail, and ditto, Scope of Work, to reduce unnecessary risk.

4. List Returnable documents and include Returnable Schedules, also Pricing instructions and schedules.

5. Complete Tender Data with ref. to Conditions of Tender, including tender validity period.

6. Complete Contract Data section, incl. obligations of Employer and Consulting Engineer, for Agreement.

7. State applicable Tender Evaluation Criteria.

8. Decide and state Quality criteria with weighting to each criterion and maximum Quality points for Project.

9. List Key Staff and expand their quality criteria.

10. Draw up Preferencing Schedule, as cidb SFU.

11. Follow standard sequence and colour of sections.

Client Employer can accept/rejectoffers but to wait 6 months ifno tenders accepted, before reinviting bidsMust allow tenderers toidentify tasks required and toprice them.Include both technical,financial, and commercialinformation.State Method 4 for EvaluationGenerally 8 or 12 weeks max.Understand which risksassumed by Employer andConsulting Engineer.Incl. Scoring: Quality, Price,Pref. Total Quality + Pricepoints 80/90 unless Qualityscore is a “ hurdle”Minimum requirements eachposition.Annex D,E, Forms 1 ,2, or 4

3.2 Approval of Tender Docs.

1. Review docs. Show amendments, give approval

Client By authorised person(s)

3.3 Confirm Budget 1. Confirm financial provision for the services exists

Client By authorised person(s)

3.4 Invite Tenders 1. Issue/advertise Tender Notice, including dates for Briefing (state if compulsory), Closing date and address for delivery, plus contact for clarifications

Client Provide a reasonable period for tenderers to obtainclarifications and preparerealistic offers

3.5 Hold Briefing and Site Inspection (if required)

1. Chair/conduct Briefing meeting and Site Inspection

2. Note queries and need to issue Addenda to tender.

3. Set closing date to receive queries

Client Issue minutes and List ofattendees to all who drewdocuments.Issue Addenda, answers to all.

4 Preparation and submission of Tender4.1 Receive all

documents1. Confirm in principle decision to proceed2. Do Risk Assessment, decide tender

strategy, incl. JV partners and/or Specialist Subconsultants.

3. Attend Briefing meetings and Site Inspections Heads of Agreement with JV Partners, Subconsultants.

Con.Eng.

Management decision (policy)Consider special capabilities or resources required, w.r.t. Scope.Note queries raised, getminutes.Agree Task, Responsibility areas.

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Item no. Task Principal Actions By Guidance4.2 Prepare Tender 1. Appoint “Bid Manager” and assign tasks to

team.2. Draw up programme for preparation of

tender.3. Study Scopes of Services and Work, list all

tasks.4. Study List of Returnable Docs., get all

schedules.5. Study Evaluation criteria, prepare relevant

information pertinent to Client’s Quality requirements.

6. Consider Addenda and clarifications issued.

7. Study Pricing Instructions, follow “Golden Rules”.

8. Calculate Price in elemental/breakdown form, with task/time/rate and total price to be considered.

9. Derive final Tender Price after adjustment and comparison with Yardstick, % deviation from ECSA

10. Complete Form of Offer and Schedule of Deviations.

11. Pre‐calculate Tender score (cidb Method 4)

Con.Eng.

Inc. tasks to JV and subconsultantsAllow float and time for approvals.Assign tasks to team members. e.g. Tax, BBBEE certificates, etc.Includes relevant location,experience, appropriate keystaff skills.Revise strategy qualificationsKnow the Project, Costs andClient.Compare total with % Fees, also ECSA rates, (“Benchmark Fee”)Adjusted Benchmark =Yardstick. No such thing as a“Discount”.Client Quality, Price,Preferences

4.3 Assemble, deliver tender

1. Confirm complete ‐ all Client requirements met.

2. Obtain all necessary in‐house and JV approvals.

3. Print and assemble documents with copies required.

4. Deliver in good time. Late delivery inexcusable!

Con.Eng.

Check Instructions to TenderersIncluding Price and QualificationsInclude own and JV copiesProvide delivery backup ifrequired.

4.4 Actions in TenderPeriod

1. Conclude detailed agreements with JV Partners.

2. Prepare justification for qualifications in tender

3. Put Project Manager, team members on standby.

Con.Eng.

Also subconsultancyagreements.If called for clarification,negotiationInclude in forward resourceplanning.

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Item no. Task Principal Actions By Guidance5 receive Tenders

5.1 Open and record tenders

1. In public or in presence of minimum 2 officials and record pertinent details, confirm all returnables are received and notify all interested parties. Includes:

2. Open in presence of tenderer’s agents if permitted.

3. Withdrawn or late tenders left unopened and returned.

4. Announce names of tenders opened and prices, if cidb Standard Conditions of Tender followed, see clause F 3.4.2

5. Non‐ disclosure of Evaluation and Award information.

6. Grounds for rejection or disqualification.7. Clarification of any tenders (clear

ambiguity), can include rates breakdown and arithmetical corrections.

8. If a 2‐envelope system, open only technical bids.

Client See cidb Best Practice GuideA3 Evaluating Tender Offers.Also prefs. Claimed, completion time stated.(Available on request to tenderers if not given in public)Disclose after tender awarded.Includes corrupt, fraudulentacts.Also places obligation on the tenderer to disclose and clarify.Announce names of tenderers.

5.2 Confirm tenderscomplete

1. Compare submissions against List of Returnables

2. Request tenderers to complete incomplete docs and record what is incomplete in each tender.

Client Identify which missing/incomplete.Only those documents required for tender evaluation purposes.

5.3 Confirm which tenders are responsive or not.

1. Test for responsiveness includes :2. Tender Conditions met, tender fully signed3. Check for material deviations from tender

terms.4. Reject tenders with unacceptable

deviations.5. Confirm compulsory briefings, inspections

attended Confirm any tenderer’s alterations are permitted. Confirm conditions for any alternative offers are met. Confirm the tender covers Client’s Scope of Work. Confirm tenderer has observed Pricing instructions. Note reasons for declaring a tender non‐responsive.

Client Done prior to Evaluation.Affects scope, risks,competitive?Corrections not allowed.

6 Evaluation of Tenders6.1 Reduce tenders

to comparative offers

1. Review Price and correct discrepancies , see Standard Conditions of Tender clause F 3.11.

2. Notify tenderers, invite to confirm offer or corrected total. Identify parameters in Returnable Docs. that affect Price e.g. life cycle costs, escalation, contract period and quantify impact on Price tendered. Reduce all tender offers to a common base.

Client Amount in words governsIgnore non‐firm prices,discounts.

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Item no. Task Principal Actions By Guidance6.2 Of tender offers 1. Judge reasonableness of all financial

offers2. Ascertain reasons for unrealistic offers

(interview?)3. Reject tenders with unreasonable financial

offers

Client Unrealistic = not economicallypossible to execute assignment at that price.

6.3 Review claims for Prefs.

1. Confirm tenderers eligible for Preferences claimed.

2. Confirm tendered contract participation goals are reasonable. Reject claims where tenderers not eligible for such preferences.

Client Review any TargetedDeclaration.Affidavits, to confirm Targeted Enterprise.Women and Black persons to be

6.4 Points for Financial offer

1. Score to 2 decimal points according to criteria in Tender Data specific wording.

2. Use formula for Method 4, (Financial Offer, Quality and Preferences) for Public or Private sectors

Client See clause 4.5 of cidb SFU for public sector constructionprocurement.Public sector mandatory, see cidb SFU proforma Form 2.

6.5 Award points forQuality

1. Assemble and brief minimum 3 reviewers.Score each Quality criterion in tender.

2. Determine average scores and overall Quality points.

3. Check for “outliers”, if so re‐determine scores.

Client Agree scoring, VG, G, S, PVG 100, G 70, S 50, P 0.Gives Quality points for tender.Reviewers confer, then rescore.

6.6 Award points forPreferences

1. Score for Targeted Enterprise status (Appendix D) and Direct Participation of T.E. and/or labour (Ann. E)

Client See cidb Best Practice Guide clause 5.6

6.7 Total Points and rankTenders

1. Follow applicable Method (Method 4 above) or combine scores Quality + Financial Offer if required, or combine scores Quality + Financial Offer if required, or use Quality as Hurdle for eligible Financial Offers

Client Either Financial Offer + Quality + Preference, or combine scores Quality + Financial Offer.Comply with Client Policy.Set high hurdle for high Quality

6.8 Risk Assessment 1. Confirm that highest ranking tenderer:a. Can participate unrestrictedly in public

procurement.b. Has required competence, resources

and equipment,c. Has legal capacity to enter into contract

agreement,d. Is not insolvent or have any conflicts of

interest,e. Rates not unacceptably high or low to

Employer,f. Gives no risks from Employer’s

Contract Data,g. Gives no risks from Returnables

submitted.

Client Bank rating A, B, C acceptable.

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Item no. Task Principal Actions By Guidance6.9 Evaluation Report

andRecommendation

1. Use Headings and Forms in Ann. 1 of cidb Best Practice Guideline A3

2. Refer report to Person(s) authorised to confirm or amend Report

Client Report Contents : Summary,Overview of tender evaluation,Tender Evaluation Forms,Reasons for tenders eliminated,Recommendations for Award.

7 Acceptance of successful tender7.1 Confirm Award

to theSuccessful Tenderer

1. Complete Form of Acceptance2. Advise unsuccessful tenderers.3. Prepare Contract Agreement

Use NEC or cidb ProfessionalServices Contract.

references:cidb Standard for Uniformity in Construction Procurement (Board Notice 86 of 2010) incl. Ann. F: Standard

Conditions of Tender

cidb Best Practice Guideline A1 ‐ The Procurement Cycle

cidb Best Practice Guideline A3 ‐ Evaluating Tender Offers

cidb Best Practice Guideline A7 ‐ The Procurement of Professional Services

cidb Inform Practice Note 6 ‐ Competitive Selection of Professional Service Providers

cidb Inform Practice Note 8 ‐ Remunerating Professional Service providers

cidb Inform Practice Note 15 ‐ Framework Agreements

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APPEnDIX E: EXAMPLES OF InTErnATIOnAL BEST PrACTICES -PrOCurEMEnT OF COnSuLTInG EnGInEErInG SErvICES

World Bank FIDIC hong Kong Government

The united StatesGovernment (egFlorida Department of Transportation)

Publication Consultant Guidelines– II and III. Methods of Selection

Quality BasedSelection FIDIC

Selection andremuneration ofEngineering andassociated Consultants.

Professional Services ‐ Summary ofProcedures

Method ofSelection

II Quality‐ and Cost‐Based Selection(QCBS)III Othersa. Quality‐Based

Selection (QBS)b. Selection under a

Fixed Budgetc. Least‐Cost

Selectiond. Selection Based

on Consultants’ Qualifications

e. Single‐Sourcef. Selection

Quality‐BasedSelection (QBS)Othersa. The two envelope

methodb. The cost weighted

methodc. The budget

methodd. Design competition

with pricese. Price negotiation

Quality‐ and Cost‐Based Selection (QCBS)

Two Stage Process

a. By law, consultant services for federal work are procured by Qualification Based Selection (QBS)

b. The vast majority of the individual States also require the QBS system for consultant services.

QualityCriteria

a. Consultant’s specific experience: 5 to 10 points

b. Methodology: 20 to 50 points

c. Key personnel: 30 to 60 points

d. Transfer of knowledge: 5 to 10 points

e. Participation by nationals: 5 to 10 points

Total: 100 points

a. Professional competence and experience

b. Managerial abilityc. Availability of

resourcesd. Professional

independencee. Professional

integrityf. Quality assurance

systemg. Fairness of fee

structure

For short listing FIDIC apply more specific Quality Criteria, see overleaf.

a. Consultant’s experience: 10 – 20%

b. Response to brief: 15 – 25%

c. Approach to cost effectiveness: 15 – 20%

d. Methodology and work programme: 15 – 20%

e. Ability and experience of key Staff: 30 – 40%

f. Past performance: 10 – 20%

a. Professional qualifications necessary for satisfactory performance of the required services

b. Specialized experience and technical competence in the type of work required.

c. Capacity to accomplish work in the required time

d. Past performance on contracts with Government agencies and private industry.

e. Location of officesf. Subcontracting

plans

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World Bank FIDIC hong Kong Government

The united StatesGovernment (egFlorida Department of Transportation)

FIDIC Short listing factors:

• Relevant experience on similar assignments

• Technical and Managerial skills to match the size and type of project

• Proven past performance on client contracts

• Methodology • The number of qualified professional and managerial personnel committed to the project team

• Access to support resources

• Capacity to complete the work • location of the firm’s office, or local knowledge in relation to the work

• Quality assurance system

Weighting the qualityand cost

Except for the type ofservices specified inSection III, the weightfor cost shall normallybe in the range of 10to 20 points, but in nocase shall exceed 30points out of a totalscore of 100

FIDIC recommendsthat the weightedvalue of the priceshould be 10 percentas an absolutemaximum.

a. Multidisciplinary projects, inc. complex Feasibility studies and Investigation‐stage consultancies: 80% technical : 20% fee.

b. Less complex Feasibility Studies and Investigation stage consultancies, and Design Construction consultancies of above average complexity: 70% technical : 30% fee.

c. Technically straightforward Design and Construction consultancies: 60% technical : 40% fee

Firms are ranked according to qualifications

Award ofContract

The firm obtaining thehighest total scoreshall be invited fornegotiations.

The firm with thehighest technicalscore is invited tonegotiate anappropriate fee

Similar to the WorldBank, the firm obtaining the highest total score shall be invited for negotiations.

The number oneranked consultant isrequested to providea fee proposal for theproject.

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Quality Based Selection (QBS) World WideThe QBS system is advocated and/or used effectively by the following organizations around the world:

• The Association of Consulting Engineers Australia• The Australian Council of Building Design• Asian Development Bank• Association of Consulting Engineers of Canada• Inter‐American Development Bank• The International Federation of Consulting Engineers• Association of Japanese Consulting Engineers• American Council of Engineering Companies• The World Bank• American Public Works Association• Associated General Contractors of America• Association for Consultancy and Engineering ‐ UK• The German Government prohibits selection of most

consulting services on a price basis, and requires QBS with fees negotiated on published schedules.

• The Government of New South Wales ‐ Australia, based on its independent study, concluded that QBS is the appropriate procurement system for public works projects.

• Since 1972, the United States Government requires by law that consultant services for federal work are procured by QBS. The vast majority of the individual States also require the QBS system for consultant services.

• The Regional Municipality of Ottawa‐Carleton serving the National Capital of Canada enjoys efficient project delivery from the consulting industry through QBS procurement.

• The Government of Japan advocates QBS for consulting services.

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APPEnDIX F: EXAMPLES OF SCOPE OF SErvICES1. Stages Typically Included as Services for normal Project Delivery Stages (ECSA)

STAGE 1. InceptionEstablish client requirements and preferences, assess user needs and options, appointment of necessaryconsultants, establish the project brief including project objectives, priorities, constraints, assumptions aspirationsand strategiesTypical Activities Typical Deliverablesi. Assist in developing a clear project briefii. Attend project initiation meetingsiii. Advise on procurement policy for the projectiv. Advise on the rights, constraints, consents and

approvalsv. Define the scope of services and scope of work

requiredvi. Conclude the terms of the agreement with the client.vii. Inspect the site and advise on the necessary

surveys, analyses, tests and site or other investigations where such information will be required for Stage 2 including the availability and location of infrastructure and services

viii. Determine the availability of data, drawings and plans relating to the project

ix. Advise on criteria that could influence the project life cycle cost significantly (financial design criteria)

x. Provide necessary information within the agreed scope of the project to other consultants involved

• Agreed scope of services and scope of work• Signed agreement• Report on project, site and functional requirements• Schedule of required surveys, tests, analyses, site and

other investigations• Schedule of consents and approvals

STAGE 2. Concept and viability / Preliminary DesignPrepare and finalise the project concept in accordance with the brief, including project scope, scale, character, formand function, plus preliminary programme and viability of the project)Typical Activities Typical Deliverablesi. Agree documentation programme with principal

consultant and other consultants involvedii. Attend design and consultants’ meetingsiii. Establish the concept design criteriaiv. Prepare initial concept design and related

documentationv. Advise the client regarding further surveys, analyses,

tests and investigations which may be required Establish regulatory authorities’ requirements and incorporate into the design

vi. Refine and assess the concept design to ensure conformance with all regulatory requirements and consents

vii. Establish access, utilities, services and connections required for the design

viii. Coordinate design interfaces with other consultants involved

ix. Prepare process designs (where required), preliminary designs, and related documentation for approval by authorities and client and suitable for costing

• Concept design• Schedule of required surveys, tests and other

investigations and related reports• Schedule of required surveys, tests and other

investigations and related reports• Process design• Preliminary design• Cost estimates as required

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STAGE 2. Concept and viability / Preliminary Design (cont’d)Typical Activities Typical Deliverablesx. Provide cost estimates and life cycle costs as

requiredxi. Liaise, co‐operate and provide necessary information

to the client, principal consultant and other consultants involved

Note:In the event that the consultant, who undertakes Stage 1 or Stages 1 and 2, is not appointed for the remainingStages, the deliverables emanating from Stages 1 and 2 should be made available to the consultant appointedto undertake the remaining Stages.STAGE 3. Design Development / Detail DesignDevelop the approved concept to finalise the design, outline specifications, cost plan, financial viability and

programme for the project)Typical Activities Typical Deliverablesi. Review documentation programme with principal

consultant and other consultants involvedii. Attend design and consultants’ meetingsiii. Incorporate client’s and authorities’ detailed

requirements into the designiv. Incorporate other consultant’s designs and

requirements into the designv. Prepare design development drawings including draft

technical details and specificationsvi. Review and evaluate design and outline specification

and exercise cost controlvii. Prepare detailed estimates of construction costviii. Liaise, co‐operate and provide necessary information

to the principal consultant and other consultants involved.

ix. Submit the necessary design documentation to local and other authorities for approval

• Design development drawings• Outline specifications• Local and other authority submission drawings and

reports• Detailed estimates of construction costs

STAGE 4. Documentation and ProcurementPrepare procurement and construction documentation, confirm and implement the procurement strategies andprocedures for effective and timeous procurement of necessary resources for execution of the project.Typical Activities Typical Deliverablesi. Attend design and consultants’ meetingsii. Prepare specifications and preambles for the worksiii. Accommodate services designiv. Check cost estimates and adjust designs and

documents if necessary to remain within budgetv. Formulate the procurement strategy for contractors

or assist the principal consultant where relevantvi. Prepare documentation for contractor procurementvii. Review designs, drawings and schedules for

compliance with approved budgetviii. Assist in calling for tenders and/or negotiation of

prices and/or assist the principal consultant where relevant

ix. Liaise, co‐operate and provide necessary information to the principal consultant and the other consultants as required

• Specifications• Services co‐ordination• Working drawings.• Budget construction cost• Tender documentation• Tender evaluation report• Tender recommendations• Priced contract documentation

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STAGE 4. Documentation and Procurement (cont’d)Typical Activities Typical Deliverablesx. Assist in the evaluation of tendersxi. Assist with the preparation of contract documentation

for signaturexii. Assess samples and products for compliance and

design intent

STAGE 5. Contract Administration and InspectionManage, administer and monitor the construction contracts and processes including preparation and coordination ofprocedures and documentation to facilitate practical completion of the works

Typical Activities Typical Deliverablesi. Attend site handoverii. Issue construction documentation in accordance

with the documentation schedule including, in the case of structural engineering, reinforcing bending schedules and detailing and specifications of structural steel sections and connections

iii. Carry out contract administration procedures in terms of the contract

iv. Prepare schedules of predicted cash flowv. Prepare pro‐active estimates of proposed variations

for client decision makingvi. Attend regular site, technical and progress meetingsvii. Inspect works for conformity to contract

documentationviii. Adjudicate and resolve financial claims by

contractor(s)ix. Assist in the resolution of contractual claims by the

contractorx. Establish and maintain a financial control system.xi. Clarify details and descriptions during construction

as requiredxii. Prepare valuations for payment certificates to be

issued by the principal agentxiii. Witness and review of all tests and mock ups

carried out both on and off sitexiv. Witness and review of all tests and mock ups

carried out both on and off sitexv. Check and approve contractor drawings for design

intentxvi. Update and issue drawings register.xvii. (xvii) Issue contract instructions as and when

requiredxviii. Review and comment on operation and

maintenance manuals, guarantee certificates and warranties

xix. Inspect the works and issue practical completion and defects lists

xx. Assist in obtaining statutory certificates

• Schedules of predicted cash flow• Construction documentation• Drawing register• Estimates for proposed variations• Contract instructions• Financial control reports• Valuations for payment certificates• Progressive and draft final account(s)• Practical completion and defects list• Electrical Certificate of Compliance• Where a quantity surveyor is included in the project

team in building works, activities (iv), (v), (viii), (x) and (xii) and related deliverables will not be required from the engineer.

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STAGE 6. Close‐OutFulfil and complete the project close‐out including necessary documentation to facilitate effective completion,handover and operation of the project)

Typical Activities Typical Deliverablesi. Inspect and verify the rectification of defectsii. Receive, comment and approve relevant payment

valuations and completion certificatesiii. Prepare and/ or procure operations and maintenance

manuals, guarantees and warrantiesiv. Prepare and/ or procure as‐built drawings and

documentationv. Conclude the final accounts where relevant.

• Valuations for payment certificates• Works and final completion lists• Operations and maintenance manuals, guarantees and

warranties• Operations and maintenance manuals, guarantees and

warranties• As‐built drawings and documentation• Final accounts

2. Additional Services as Principal ConsultantThe Consulting Engineer generally has the resources and capability to act as Principal Consultant to the Clientin addition to the consulting engineering function and is frequently appointed as such. In such a case someor all of the following services will need to be added.

STAGE 1. Inception as Principal ConsultantTypical Activities Typical Deliverablesi. Assist in developing a clear project brief.ii. Attend project initiation meetings.iii. Advise on procurement policy for the project.iv. Advise on the rights, constraints, consents and approvalv. Define the scope of services and scope work required.vi. Conclude the terms of the agreement with the client.vii. Advise on the necessary surveys, analyses, tests and

site or other investigations where such information will be required for Stage 2 including the availability and location of infrastructure and services

viii. Determine the extent of information, data, drawings and plans relating to the project available at commencement

ix. Provide necessary information

• Project brief• Agreed scope of work• Agreed services• Project procurement policy• Signed agreements• Integrated schedule of consents and approvals• Project initiation programme• Record of all meetings

STAGE 2. Concept and viability as Principal ConsultantTypical Activities Typical Deliverablesi. Assist the client in the procurement of the other consultantsii. Advise the client on the requirement to appoint a health

and safety consultantiii. Communicate the project brief to the other consultants and

monitor the development of the concept and viabilityiv. Agree the format and procedures for cost control and

reporting by the otherconsultantsv. Prepare a documentation and indicative construction

programmevi. Co‐ordinate the concept and viability documentation for

presentation to the client for approvalvii. Facilitate the approval of the concept and viability by the

clientviii. Facilitate the approval of the concept and viability by

statutory authorities

• Signed consultant/client agreements• Indicative project documentation and construction

programme• Approval by client to proceed to Stage 3

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STAGE 3. Design Development as Principal ConsultantTypical Activities Typical Deliverablesi. Agree and implement communication processes and

procedures for the design development of the projectii. Assist the client in the procurement of the necessary other

consultants including the clear definition of their roles and responsibilities

iii. Prepare, co‐ordinate, agree and monitor a detailed design and documentation programme

iv. Conduct and record consultants’ and management meetings

v. Facilitate input required by the health and safety consultantvi. Facilitate design reviews for compliance and cost controlvii. Facilitate timeous technical co‐ordinationviii. Facilitate client approval of all Stage 3 documentation

• Additional signed client/consultant agreements• Detailed design and documentation programme• Record of all meetings• Approval by client to proceed to Stage 4

STAGE 4. Tender Documentation and Construction Procurement as Principal ConsultantTypical Activities Typical Deliverablesi. Recommend and agree the procurement strategy for

contractors, subcontractors and suppliers with the client and other consultants

ii. Prepare and agree the project procurement programmeiii. Advise the client, in conjunction with the other consultants

on the appropriate insurancesiv. Co‐ordinate and monitor the preparation of the

procurement documentation by the consultants in accordance with the project procurement programme

v. Manage the procurement process and recommended contractors for approval by the client

vi. Agree the format and procedures for monitoring and control by the cost consultants of the cost of the works

vii. Co‐ordinate and assemble contract documentation for signature

• The procurement strategy• Procurement programme• Tender/contract conditions• Record of all meetings• Obtain approval by client of tender recommendation(s)• Contract documentation for signature

STAGE 5. Contract Administration and Inspection as Principal ConsultantTypical Activities Typical Deliverablesi. Arrange the site handover to the contractorii. Establish the construction documentation issue processiii. Agree and monitor the issue and distribution of

construction documentationiv. Instruct the contractor on behalf of the client tov. Appoint subcontractorsvi. Conduct and record regular site meetingsvii. Monitor, review and approve the preparation of the

construction programme by the contractorviii. Regularly monitor the performance of the contractor

against the construction programmeix. Adjudicate entitlements that arise from changes required to

the construction programmex. Receive, co‐ordinate and monitor approval of all contract

documentation provided by the contractor(s)xi. Agree the quality assurance procedures and monitor

the implementation thereof by the other consultants and contractors

xii. Monitor the preparation and auditing of the contractor’s health and safety plan and approval thereof by the health and safety consultant

• Signed contracts• Approved construction programme• Approved contractual claims• Construction documentation schedule• Payment certificates• Progress reports• Record of meetings• Certificate(s) of practical completion

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STAGE 5. Contract Administration and Inspection as Principal Consultant (cont’d)Typical Activities Typical Deliverablesxiii. Monitor the preparation of the environmental management

plan by the environment consultantxiv. Establish procedures for monitoring scope and cost

variationsxv. Monitor, review, approve and issue certificates.xvi. Receive, review and adjudicate any contractual claimsxvii. Monitor the preparation of financial control reports by

other consultantsxviii. Prepare and submit progress reportsxix. Facilitate and expedite occupation certificatesxx. Coordinate, monitor and issue the practical completion

lists and the certificate of practical completion

STAGE 6. Close out as Principal ConsultantTypical Activities Typical Deliverablesi. Co‐ordinate and monitor the rectification of defectsii. Manage the procurement of operations and maintenance

manuals, guarantees and warranties.iii. Manage the preparation as‐built drawings and

documentationiv. Manage the procurement of outstanding statutory

certificatesv. Monitor, review and issue payment certificatesvi. Issue the completion certificatesvii. Manage the agreement of the final accountsviii. Prepare and present the project closeout report

• Completion certificates• Record of necessary meetings• Project closeout report

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APPEnDIX G: CIDB TABLES TO ASSIST In COMPILInG TEnDEr DOCuMEnTS

Table B‐1: Documents relating to the TenderT1 Tendering proceduresT1.1 Tender Notice and invitation to Tender Alerts tenderers to the nature of services required by the

client; should contain sufficient information to enable an appropriate response.

T1.2 Tender Data States applicable conditions of tender and establishes the rules applying from the time tenders are invited to the time a tender is awarded.

T2. Returnable documentsT2.1 List of Returnable Documents Ensures that everything the client requires a tenderer

to submit with his tender is included in his tender submission.

T2.2 Returnable Schedules Contains documents the tenderer is requested to complete for the purpose of evaluating tenders and other schedules which upon acceptance become part of the subsequent contract.

Table B‐2: Documents relating to the Form of AgreementC1. Agreements and Contract DataC1.1 Form of Offer and Acceptance Formalises the legal process of offer and acceptanceC1.2 Contract Data States applicable conditions of contract and associated

contract specific data, which collectively describe the risks, liabilities and obligations of the contracting parties and the procedures for administration of the contract.For consulting engineering services this would be an Agreement, as opposed to General Conditions of Contract used for construction services.

C2. Pricing DataC2.1 Pricing Instructions Provides criteria and assumptions, which it will be

assumed (in the contract)C2.2 Activity Schedule or Schedule of Tasks Records the Financial Offers to provide the services,

which are described elsewhere ‐ in the Scope section.C3. Scope of Services and Scope of WorkC4. Site InformationThis is generally not required in procurement of consulting engineering services, being applicable to construction services contracts only. However to ensure uniformity in tendering, available information on prior studies, existing services etc should be included.

note: For ease of identification of the various sections each section should be colour coded with differentcoloured pages or separated with coloured paper as suggested by SANS 10403 (see tables below).

T1.1 ‐ Tender notice and Invitation to Tender ‐ White formsThis is a statement alerting tenderers to the request for proposals which should include the closing date anddelivery address for tenders as set by the client as well as any other references or markings to identify thetender.It should be in a form which can be published as an advertisement to tenderers.Note that the Public and Municipal Finance Management Acts require minimum periods betweenadvertising and closing dates.

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T1.2 ‐ Tender Data ‐ Pink formsThis establishes the rules to apply from the time tenders are invited to when they are awarded. The rules:

• bind client and tenderer to behave in a certain manner• include requirements for a compliant tender,• require provision of feedback on the outcomes of the process.• state the tendering procedures to be observed• state documentation to be submitted with tenders• indicate how the client will conduct the process of evaluating tenders• indicate that tender offers may only be evaluated in accordance with the evaluation criteria stipulated in the

procurement documents.For consulting engineering services Quality criteria used in evaluation of tender offers should form an integral part of the tender offer and hence the outcome of the procurement.T2.1 ‐ List of returnable Documents ‐ Yellow formsThis List is to ensure that everything the client requires a tenderer to submit with his tender is included. It indicates exactly what is wanted and is useful in determining at the outset if a tender is responsive to the client’s requirements.

It is costly and time consuming to prepare tenders; therefore only information which is essential for evaluation purposes of the tender concerned should be listed. It is always possible to obtain further information from short‐listed tenderers.T2.2 ‐ returnable Schedules ‐ Yellow formsThis section must contain documents which the tenderer must complete for the evaluation of tenders and other schedules which upon acceptance become part of the subsequent contract. The Municipal Finance Management Act specifically requires particulars concerning company details, tax clearance, and disclosure relating to individuals connected with the tenderer being in service of the state.

The inclusion of the cidb‘s Compulsory Enterprise Questionnaire will enable these and other legal requirements to be satisfied.

C1.1 ‐ Form of Offer and Acceptance ‐ Yellow formsThis formalises the legal process of offer and acceptance and contains

• firstly the offer to provide the services for a Financial Offer,• secondly the Client’s acceptance, thus creating a contract, and• thirdly a schedule of deviations recording changes agreed between receipt of offer and award of contract.

The cidb’s Standard for Uniformity in Construction Procurement provides wording for the Form of Offer and Acceptance to be used with the schedule of deviations. This schedule serves as a record of the outcomes of any negotiations between offer and acceptance. Note this applies only to deviations from the tender documents as issued by the client prior to closing date.

A tenderer’s covering letter should not be included, but any matter in such letter constituting a deviation and the subject of agreement reached during the offer/acceptance process, should be included, and any other matter arising from the process which is agreed by the parties as being an obligation of the contract, must be included.

The start date of the contract should be identified in this section, but this must be aligned with the contract start date defined in the Agreement, see Section C.1.2

C.1.2 ‐ Contract Data ‐ Yellow formsReference must be made here to the contract conditions in the Agreement applying to the services being procured. This should preferably be one of the standard industry agreements applicable to consulting engineering services, such as published by Consulting Engineers South Africa (CESA) or FIDIC, or the NEC.

Note that for consulting engineering services in South Africa, the cidb Standard Professional Services Contract may also be employed. Note also that if a standard form of agreement is used it may be referenced, and need not be included in the contract documents.

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C.1.2 ‐ Contract Data ‐ Yellow forms (cont’d)The Contract Data must :

• Identify applicable standard of contract plus all contract‐specific variables appendices etc.• be divided into two parts – Data provided by client and Data by the consulting engineer (if required)• not provide for variations and additions which change the intended usage of the identified standard form of

contract• provide for Financial Offer adjustments (usually if the contract period exceeds one year)• include interest on monies due to the consulting engineer, to deter late payment.• where payment is on a basis of time + cost, or cost + a fee, include mechanisms to allow audit of costs and

Financial Offers• allow realistic delivery periods and time frames for completing the work• provide for cost‐effective dispute resolution procedures, preferably through mediation, adjudication,

or arbitration (with litigation as a last resort) The procedures advocated by the cidb in its Construction Procurement Best Practices, or in the standard contract conditions of the bodies above, should be referred to in this regard.

C1.3 ‐ Form of Guarantee/ Securities ‐ White formsFor consulting engineering services a guarantee should not normally be required since the client’s interests can be protected by the Professional Indemnity Insurance policy of the consulting engineer. The client may however state the minimum level of professional indemnity insurance cover to be provided by the consulting engineer for the project in question.C1.4 ‐ Adjudicator’s Contract – White formsDispute resolution by means of Adjudication is most frequently applied in construction contracts but Adjudication can be used in procurement of consulting engineering services, particularly for large, complex or multidiscipline assignments.

The adjudicator is appointed by both parties, who share the costs of adjudication, therefore the Adjudicator’s contract should be included in the contract document between client and consulting engineer. Adjudication can be done by an individual, or a single or three person Dispute Adjudication Board (DAB).

The formalities for appointing the Adjudicator or DAB should if possible be completed when the contract is signed. The actual appointment of the person(s) should preferably be done at start of the contract, for adjudication to be most effective, as opposed to waiting until a dispute manifests itself, then having to develop the contract and agree whom to appoint.

Typical forms of contract for the Adjudicator are to be found in cidb Practice Guide No. C3, or in thedocumentation issued by the SAICE (GCC), FIDIC, JBCC, or NEC.

C.2.1 ‐ Pricing Data/ Instructions ‐ Yellow formsThe pricing data contains the pricing assumptions describing the criteria and assumptions which the tenderer has used in developing his Financial Offers.

The cidb Standard Conditions of Tender address issues such as Taxes in rates, VAT, currencies, nonerasable ink and correction of arithmetic errors.

For consulting engineering services the above requirements apply in principle; Pricing Data is defined in the cidb Standard Professional Services Contract as data that establishes criteria and assumptions taken into account when developing the Contract Price and the record of the components that make up the Contract Price.

Other Professional Services Contracts provide for payment mechanisms according to the risk allocation options adopted by the client. For instance the NEC 3 Professional Services Contract allows risk allocation Options A, C, E, and G and the compiler is referred to the guidance notes and flow charts which accompany the NEC3 PSC for details.

The Councils for the various built environment professions are empowered through legislation to publish annually in the Gazette, after consultation, guideline professional fees. For consulting engineering services there are two

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C.2.1 ‐ Pricing Data/ Instructions ‐ Yellow forms (cont’d)documents of reference – the Guideline Scope of Services and Tariff of Fees for persons registered in terms of the Engineering Profession Act, 2000, and the Indicative Time Based Fee Rates.

In the context of tendering, consulting engineers are not bound by the gazetted fees and are free to Financial Offer for their services as they deem fit. The gazetted fees are nonetheless referred to, in order to provide a benchmark against which to compare tender Financial Offers received and to gauge the ”Value” of the Financial Offers..

C2.2 ‐ Activity/Work Schedule ‐ Yellow formsFor consulting engineering services this is generally in the form of activity schedules or schedules of tasks to be undertaken in each Stage of the assignment. The pricing data must reflect the selected pricing strategies. Commonly accounted strategies as described in the cidb’s Compiler guidance notes of the Construction procurement Toolbox can be used as a guide.

C3 ‐ Scope of Services/ Scope of Work ‐ Blue formsAs stated above, “Scope of Services” describes the types of services to be provided by a consulting engineer responsible for design and/or construction monitoring of the project being constructed.

Where “Scope of Work” is used in context of consulting engineering services, this applies to the manner and extent to which the services are applied to the project in question.

The Scope of Services to be provided by a consulting engineer is described in detail in Chapter 3 of these Guidance Notes. This is based on nationally recognised stages of planning, design and construction of the project, with listing of key tasks required of the consulting engineer both as design professional and additionally as principal consultant of the client. For both cases, typical deliverables are also listed (also refer Section 4.4.7 of the SFU)

C4 ‐ Site Information ‐ Green formsThis section is used for engineering and construction works contracts only, and is compiled specifically for the project. Consequently it is not dealt with here (however to ensure uniformity in tendering, available information on prior studies, existing services etc should be included).

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APPEnDIX h: EXPLAnATOrY nOTES On ECSA GuIDELInES

1. IntroductionThis section is based on a paper drafted by the Association of Consulting Engineers of Namibia (ACEN) in July 2007. Ithas been amended for the Engineering Profession Act (46/2000): Engineering Council of South Africa: Guideline Scopeof Services and Tariff of Fees for Persons registered in terms of the Act (also commonly known as the ‘ECSA Fee Guideline’ and hereafter referred to as the ‘Guideline’). The section aims to raise awareness of the correct use of the Guideline and clarify the calculation and payment of Professional Fees.

The Guideline is updated annually by the Engineering Council of South Africa (ECSA) according to the recommendations of one of its Committees established for this purpose. The recommendations typically entail the revision of the fees in line with official inflation indices and minor changes to definitions and legal requirements in response to complaints and suggestions received during the preceding year.

The latest and previous copies (back to 2003) of the Guideline can be found on the ECSA website at http://www.ecsa.co.za/index.asp?x=rates. For information regarding Fees etc prior to 2004, Consulting EngineersSouth Africa (CESA) can be contacted at 011 463 2022 or general@cesa.co.za.

2. Consulting Engineers’ FeesIt is essential that the Client and Consulting Engineer agree the basis and method of calculation of the fee and scope of services and scope of work at the time of appointment of the Consulting Engineer. Such agreement must include the commercial terms setting out the timing and method of payment.

The Guideline describes the following categories for the payment of Fees as follows:1. Percentage based fees (see http://www.ecsa.co.za/documents/Guideline_Scope_Services_Tariff_fees2010.pdf)2. Fees for services that are additional to those provided for in (1) above3. Indicative time based fees (see http://www.ecsa.co.za/documents/Indicative_Timebased_fees_2010.pdf)4. Disbursements (see http://www.ecsa.co.za/documents/Disbursement_2010.pdf)

The fees described in the Guideline are purely an indication to provide a guideline to determining a fee to be paid for engineering services, which experience over many years has proved are fair and equitable to all parties. The actual feemay be determined on any competitive basis and should, in any event, be negotiated and adjusted, up or down, between the Client and Consulting Engineer at the time of appointment and to suit the circumstances of the particular project.

Where the location, size, character, form and function of the works has been defined through previous studies and investigations that have either formed part of the client’s normal business practices or have been the subject of previous separate appointments paid for on a time and cost basis the remuneration can be determined using the guideline tariffs that are based on the cost of the works.. This provides a convenient way to express the fee payable if the scope of work is somewhat uncertain. The typical range of percentage fees applicable to different size projects and services provided are shown in the graph below.

The graph shows that the fee can range from 6% for a large project up to 20% for a small project. The fee can also fall within the shadowed area on either side of the band depending on the complexity factors that are expanded upon in paragraph 4.1. These factors are normally converted into multipliers that range from 0.3 to 1.5 and that are applied to modify the overall percentage fee and agree on a fair and reasonable fee for the service to be provided.

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3. General Principles for Percentage Based Fees

The principles listed below apply to all the fee tables in the Guideline (essentially pages 25 – 33).• The ‘cost of the works’ is the estimated cost of the works until the project is completed when the final cost of works

is known and becomes the ‘cost of works’. If the project is not completed for whatever reason the ‘cost of works’ remains the estimated cost of works for calculation purposes

• The estimated cost is normally the cost estimate for the agreed Consulting Engineer’s scope of the work prepared by the Consulting Engineer and submitted to the Client, or a figure agreed between the Client and Consulting Engineer. Where no agreement can be reached on the estimated cost it may be necessary to obtain advice from an independent third party.

• The Fee is calculated as the sum of the Primary Fee plus the Secondary Fee (given percentage x cost of works)• The Primary Fees are used as given in the tables and are not interpolated between values• The purpose of the Primary Fee is not to act as a basic or upfront payment. The sole purpose of the Primary Fee

is to balance out the fees where one bracket joins the next; the Primary Fee simply serves to smooth the fees at the point of each bracket (prevents sharp jumps in fees)

• Note that the factors by which the Fee is multiplied according to the high or low demands of the category of work, do not apply when the fee is paid on a lump sum or time basis.

• Since the Fee relates to a professional service, Value Added Tax at 14% must be added.• Fees for carrying out initial studies and investigations during the report stage of a project prior to the commencement

of the actual project are normally calculated on a time and cost basis and are paid to the• Consulting Engineer over and above the normal fee.• The Consulting Engineer is entitled to recover expenses and costs (disbursements) incurred during the rendering

of the service. Such expenses and costs typically include travel, accommodation, and subsistence, and costs of document and drawing production and copying.

• The Consulting Engineer may also recover costs related to the employment of specialist sub‐consultants, surveys and investigations and land acquisitions, way leaves and servitudes. Provided that the need for such costs must be agreed with the Client before they are undertaken.

• The Consulting Engineer is entitled to add an administration charge, typically 10%, to the above expenses and costs.

• Where the Consulting Engineer provides “additional” services over and above the normal services described in the Guideline, he/she is entitled to adjust the fee or to charge additional fees on whatever basis may be agreed between the Client and Consulting Engineer and as described in the Guideline.

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4. The overall fee process

These steps are discussed further below:

5. Categories of projects

The Guideline divides engineering services into two basic groups:• Services relating to Building projects• Services relating to Engineering projects

In addition each group is further broken down into the specific divisions of Civil, Mechanical, Electrical and Electronic Engineering services.

For the Engineering services there is an additional fee payable for reinforced concrete and steel portions of the work.

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Each category has a separate fee schedule. For each category a table of factors is provided which are applied to the basic fee to cater for various different situations, such as work making high or low demands, fragmented work, works in different categories, alterations and the like. In general, a Building Project is normally classified as such where the project is of a building nature and a multidisciplinary professional team is involved. The professional team may, for example, include a Project Manager, Architect, Engineer(s), Quantity Surveyor, and one of the professionals is appointed as the Principal Agent. Each professional has a clearly defined scope of service based on the scope of work under his control.

Engineering projects normally involve projects of a purely engineering nature where the Consulting Engineer(s) ‘s scope of service and responsibility includes the entire scope of works. Certain types of project, such as industrial projects, are normally classified as engineering projects, but may be classified as building projects, depending on the makeup of the professional team.

Each category with the appropriate Guideline fee schedule is listed below:

6 Cost of WorksNote that professional fees are always calculated on the cost of works excluding VAT.

6.1 Civil, Structural, Mechanical, Electrical or Electronic Engineering Services for Engineering ProjectsIn this case the Engineer is responsible for the whole scope of the works. The Cost of the Works includes thefollowing:

• The total final amount ( or the agreed estimate thereof), exclusive of VAT, certified or normally payable to contractors in respect of works designed, specified or administered by the consulting engineer. Note that it does not matter who actually performs the work, only that it must have been specified designed or administered by the consulting engineer. Therefore, for example, the cost of the work may include the value of builders work specified by the consulting engineer related to the electrical works.

• The cost of the works is determined prior to deduction of penalties, retention and the like.• Escalation if this is included in the payments to the contractor(s), but this may be affected by discontinuity in the

project cycle.• Fair evaluation if the contractor receives free labour or free or second hand material etc.• The cost of any specialist work etc for which the consultant is responsible that is not paid elsewhere.• A pro rata portion of all preliminaries, profit and attendance that may be applicable to the scope of works forming

part of the consulting engineer’s scope of service.

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6.2 Structural and Civil Engineering Services for Building ProjectsHere the Engineer is not responsible for the whole scope of the works. The Cost of the Works includes the following:

• The total final amount ( or the agreed estimate thereof), exclusive of VAT, certified or normally payable to contractors in respect of works designed, specified or administered by the consulting engineer. Note that it does not matter who actually performs the work, only that it must have been specified designed or administered by the consulting engineer.

• The cost of the works is determined prior to deduction of penalties, retention and the like.• Escalation if this is included in the payments to the contractor(s), but this may be affected by discontinuity in the

project cycle.• Fair evaluation if the contractor receives free labour or free or second hand material etc.• The cost of any specialist work etc for which the consultant is responsible that is not paid elsewhere.• Temporary works specified• Excavations and foundations if specified• Reinforced concrete, formwork, structural members etc if specified inclusive of cladding, decorative work, builders

work and inserts• Cladding, decorative work, builders work and inserts, if specified.• The cost of any specialist work, such as drilling etc for which the consultant is responsible that is not paid

elsewhere.• A pro rata portion of all preliminaries, profit and attendance that may be applicable to the scope of works forming

part of the consulting engineer’s scope of service.

6.3 Mechanical, Electrical or Electronic Engineering Services for Building ProjectsThe Engineer is responsible for portion of the overall scope of the works. The Cost of the Works includes the following:

• The total final amount ( or the agreed estimate thereof), exclusive of VAT, certified or normally payable to contractors in respect of works designed, specified or administered by the consulting engineer. Note that it does not matter who actually performs the work, only that it must have been specified designed or administered by the consulting engineer. Therefore, for example, the cost of the work may include the value of builders work specified by the consulting engineer related to the electrical works.

• The cost of the works is determined prior to deduction of penalties, retention and the like.• Escalation if this is included in the payments to the contractor(s), but this may be affected by discontinuity in the

project cycle.• Fair evaluation if the contractor receives free labour or free or second hand material etc.• The cost of any specialist work etc for which the consultant is responsible that is not paid elsewhere• A pro rata portion of all preliminaries, profit and attendance that may be applicable to the scope of works forming

part of the consulting engineer’s scope of service.• The cost of builders work specified by the Engineer required in connection with the works

7 Interim AccountsThe following table indicates how the fee may be apportioned over the various stages of a typical project. The actual proportions may vary according to the circumstances of the particular project and should be discussed and agreed between the Client and the Consulting Engineer.

Stage of Services Typical percentage points for each stageCivil Engineering Projects:• Inception• Concept and Viability• Design Development• Documentation and Procurement• Contract Administration and Inspection• Close‐Out

5252515255

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Stage of Services Typical percentage points for each stageStructural Engineering Projects:• Inception• Concept and Viability• Design Development• Documentation and Procurement• Contract Administration and Inspection• Close‐Out

5253010255

Civil Building Projects:• Inception• Concept and Viability• Design Development• Documentation and Procurement• Contract Administration and Inspection• Close‐Out

5252515255

Structural Building Projects:• Inception• Concept and Viability• Design Development• Documentation and Procurement• Contract Administration and Inspection• Close‐Out

5253015205

Mechanical, electrical and electronic projects:• Inception• Concept and Viability• Design Development and Documentation and

Procurement• Contract Administration and Inspection• Close‐Out

515304010

Where not all the stages of the normal services are provided by the consulting engineer, the fee is, subject to clause 4.1 (7), calculated as a percentage of the total fee calculated in terms of this clause, which percentage is the sum of the percentage points appropriate to each stage as set out in the above table against those stages of the services provided by the consulting engineer, typically plus 10 percentage points to allow the engineer to become familiar with the project.

The following principles apply for all categories:• Interim fees may be claimed on any basis as agreed between the Client and Consulting Engineer, either on

the basis of a fixed cash flow, progress payments, or after each stage of the service is completed using the percentages in the above table, or any other method that may be agreed.

• Interim payments during the preliminary design an design and tender stage are often based on the percentages from the table and only claimed at the end of each stage, while the interim fees during the construction stage are usually based on the proportion of work completed.

• Prior to construction, fees should be based on the estimated contract amount (excluding contingencies, and escalation) calculated in accordance with the principles relating to the ‘cost of works’ as defined above. For electrical and mechanical appointments relating to building works, this would in effect be the value of the provisional sum allowed for these works plus allowance for PandG items. A pro rata share of preliminaries, profit and attendance, and the value of builders’ work, if applicable.

• On award of the tender the value of the accepted tender, the value of a negotiated tender or failing award, an agreed revised estimate should be used.

• The fees for reinforced concrete and structural steelwork should be factored into the overall fees at the appropriate stage.

• Where the Consulting Engineer’s scope of service does not include all the stages described in the above table, the fee is reduced according to the above table, and the resultant “partial” fee is increased by ten percentage points.

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• If, at any time during the project, the whole or part of the works is cancelled, postponed, or abandoned for a period of more than six months, the consulting engineer should be remunerated for all the stages, or part thereof, completed, plus a surcharge of ten percent of the full fee which would have been payable had his services been completed in terms of his original appointment.

• Throughout the Guideline the following terminology is used:• The Basic Fee is the fee obtained by multiplying the Secondary Fee by the cost of works and adding the

Primary Fee• The Basic Fee may be increased or decreased by various factors depending on the type of work included

in the service.• The Basic Fee is based on the current estimated value of the works and may change throughout the course

of the contract• An Interim Fee is a fee calculated for interim purposes based on the Final Fee before the final contract

amount is known.• The Full Fee is the final value of the fees calculated in the same way as the Basic Fee except using the final

contract amount obtained at the end of the construction period.• The sum of the Interim Fees may not exceed the Full Fee.• It must be stressed that in all cases these fees refer to the percentage based fees appropriate to the project.

8 Adjustment of normal FeesThe fees for “normal services” suggested in the Guideline can be applied to many projects and have proved over along period of time to provide fair compensation to the Consulting Engineer. However the factors that influence thefee are complex and depend on many contributing factors, some examples of which are described in the Guideline(Clause 4.1 (4) (a) – (l), as follows:

4) While the tariff of fees contained in this Schedule can be applied to many projects the factors that influence the feesto be paid for design services on a project are complex and depend on a number of contributing factors These contributing factors that should be taken into account may include, inter alia, all or any of the following:

a. Project complexity: Projects may range from relatively simple projects where the designs are based on well established, common practices to more complex projects where the works call for the application of new, unusual or untried techniques, designs, systems or applications.

b. Monetary value of the works: This may range from a situation where the value of the work is very high relative to the services being rendered to a project where the value of the works is abnormally low relative to the services required from the consulting engineer.

c. Time duration: This may involve projects where the works are executed over appreciably shorter or longer periods than would normally be expected for any of the stages defined in 3.1.

d. Level of responsibility, liability and risk: These may range from relatively low levels of responsibility and/or risks to projects with unusually high responsibilities and/or risks that are expected to be carried by the consulting engineer.

e. Level of expertise, qualifications, skills and experience: Some works do not require a high degree of expertise while other works may require more specialized expertise or substantial skills and experience that cost more to develop and retain.

f. Level of technology required and changes in technology that may influence the costs of the services providedg. Whether aspects related to labour intensive works need to be considered in the design.h. Level of effort: Some projects do not call for substantial effort as the works can be designed without extensive

investigations or field measurements while others may call for unusually high effort on the part of the consulting engineer because of, for example, research required or integration with existing works or repairs to existing infrastructure where the status quo needs to be investigated in considerable detail and these need to be accommodated within the design.

i. Potential value added: In some instances the design, no matter how sophisticated will not add much value to the overall project while in other cases greater design optimization can lead to considerable savings in capital, maintenance or operations costs, or add value to the final project.

j. Client Requirements: Some clients have relatively few requirements and/or many standard details and the consulting engineer’s designs are accepted at face value. Other clients require considerable details to be investigated during design development to satisfy their own, often complex, internal processes.

k. Business Strategy: Some firms may decide to offer a low price to enter a market segment at a low cost or to keep employees busy while waiting for economic upswings.

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l. Project Definition: In some projects the design concept and scope is self evident and does not require much further investigation and analysis of options, while in other projects the design development requires extensive analysis and testing of various options.

Other factors which could influence the calculation of the fee include:• Where the scope of services includes more than one category of engineering, ie civil, structural, mechanical,

electrical, or electronic, then the fee is calculated separately for each category using the value of work for the category and the applicable fee table.

• Where the work takes place on different sites, or is discontinuous, or fragmented in any way, then a separate fee is calculated for each portion of the work.

• The reduced fee for “Duplication” only applies in a situation where a complete design unit is reused, such as a bridge or a building. It is not to be applied to components of a design. The duplication factor applies only to that portion of the fee applicable to the design stage.

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APPEnDIX I: uSEFuL WEBSITES

The following table contains useful references relating to the Procurement of Consulting Engineering Services:

No. Reference Downloadable at Weblink1 Advisory Notes (approx 100) (CESA) http://www.cesa.co.za/node/19

2 Benefits of Membership (CESA) http://www.cesa.co.za/public_downloads/CESA4page.pdf

3 Best Practice Procurement in Construction andInfrastructure in New Zealand

http://www.nzcic.co.nz/CIC_Procument_document_internet.pdf

4 Biennial Economic and Capacity Report (CESA) http://www.cesa.co.za/node/21

5 Bills, Acts, Government Gazettes (GG)etc http://www.info.gov.za/view/DynamicAction?pageid=528

6 Broad Based Black Economic Empowerment Act(53 of 2003)

http://www.info.gov.za/view/DownloadFileAction?id=68031

7 Business Integrity Management Guidelines (CESA) http://www.cesa.co.za/public_downloads/100119%20‐%20CESA%20Business%20Integrity%20Management%20System%20‐%20October%202009.pdf

8 Capital Asset Management Framework – BritishColumbia

http://www.fin.gov.bc.ca/tbs/camf.htm

9 cidb Act (38 of 2000) http://www.cidb.org.za/Documents/KC/cidb_Publications/Leg_Regs/other_leg_regs/leg_regs_gg21755_cidb_act_38_2000.pdf

10 Code of Conduct (CESA) http://www.cesa.co.za/public_downloads/code_of_conduct.pdf

11 Code of Conduct (cidb) http://www.cidb.co.za/Documents/PDM/Toolbox/Code_of_conduct.pdf

12 Constitution of Republic of South Africa http://www.info.gov.za/documents/constitution/1996/a108‐96.pdf

13 Construction Charter (Govt Gazette 5 June 2009) http://www.info.gov.za/view/DownloadFileAction?id=102535

14 Construction Procurement Manual http://www.scotland.gov.uk/Publications/2005/11/28100404/04095

15 Consultant’s Performance Information Systemand Management of Consultant’s Performance –Hong Kong / March 2009

http://www.devb.gov.hk/filemanager/technicalcirculars/en/upload/298/1/c‐2009‐02‐0‐1.pdf

16 Consultants Guidelines (Dept of Public Works – DPW) http://www.publicworks.gov.za/consultantsguidelines.html

17 FIDIC Presentation – Best Practice Procurement of Engineering Services

http://www.scribd.com/doc/35384010/FIDIC‐Power‐Point

18 Guideline on the Briefing and Engagement forConsulting Engineering Services – NZ / January2004

http://www.acenz.org.nz/Category?Action=ViewandCategory_id=522

19 Guideline for the Selection of EngineeringServices – Professional Engineers of Ontario

http://www.peo.on.ca/public/selection_eng_services.pdf

20 Guideline Scope of Services and Tariff of Fees(ECSA)

http://www.ecsa.co.za/documents/Guideline_Scope_Services_Tariff_fees2010.pdf

21 Guidelines: Selection and Employment ofConsultants by World Bank Borrowers

http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,contentMDK:50002392~menuPK:93977~pagePK:84269~piPK:60001558~theSitePK:84266,00.html

22 How to Select a Consulting Engineer (CESA) ‐ 2006 http://www.saace.co.za/public_downloads/guide_appoint_consult.pdf

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No. Reference Downloadable at Weblink23 InfraGuide ‐ Selecting a Professional Consultant ‐

Canadahttp://www.cebc.org/library/libraryfiles/DMIP_11_Selecting_a_Professional_ConsultantWEB.pdf

24 Inform Practice Notes (8‐24) (cidb) http://www.cidb.co.za/knowledge/publications/practice_notes/default.aspx

25 Integrity Pact (overview of status quo) http://www.transparency.org/global_priorities/public_contracting/integrity_pacts

26 Joint Venture and Subcontracting Arrangements (cidb) http://www.cidb.co.za/procurement/procurement_toolbox/best_prac_lib/joint_venture/default.aspx

27 Mediators, Arbitrators and Adjudicators (CESA) http://www.cesa.co.za/public_downloads/MEDS_ARBS_ADJ.pdf28 Municipal Finance Management Act (56 of 2003) http://www.info.gov.za/gazette/acts/2003/a56‐03.pdf29 National Treasury website http://www.treasury.gov.za/#30 Preferencing Policies (cidb) http://www.cidb.co.za/procurement/procurement_toolbox/best_

prac_lib/preferencing/default.aspx31 Preferential Procurement Policy Framework Act

(5 of 2000)http://www.info.gov.za/view/DownloadFileAction?id=68218

32 Preferential Procurement Regulations 2009(draft) (GG 14 Aug 2009)

http://www.info.gov.za/view/DownloadFileAction?id=105525

33 Prevention and combating of Corrupt Activities Act(12 of 2004)

http://www.info.gov.za/acts/2004/a12‐04/index.html

34 Principles of Best Practice – ConstructionProcurement in New Zealand

http://www.nzcic.co.nz/Best_Practice_Guideline_2006.pdf

35 Procurement Best Practice Guidelines (cidb) http://www.cidb.co.za/procurement/procurement_toolbox/best_prac_lib/policies/default.aspx

36 Procurement Documentation (cidb) http://www.cidb.co.za/procurement/procurement_toolbox/best_prac_lib/procurement_doc/default.aspx

37 Procurement Guideline for Consulting Engineers–April 2010 (CESA)

http://www.saace.co.za/public_downloads/100119%20‐%20Guide%20‐%20Procurement%20of%20Consulting%20Eng%20Services%20in%20Construction%20Industry%20‐%20Jan%202010.pdf

38 Procurement of Consulting Engineering Servicesmanual

http://www.cesa.co.za/public_downloads/100119%20‐%20Guide%20‐%20Procurement%20of%20Consulting%20Eng%20Services%20in%20Construction%20Industry%20‐%20Jan%202010.pdf

39 Procurement Toolbox (cidb documentation) http://www.cidb.co.za/procurement/procurement_toolbox/default.aspx

40 Professional Services Consultant WorkPerformance Evaluation – Florida / Nov 2010

http://www2.dot.state.fl.us/proceduraldocuments/procedures/bin/375030007.pdf

41 Promotion of Administrative Justice Act (3 of 2000) http://www.acts.co.za/prom_admin_justice/whnjs.htm42 Promotion of Equality and Prevention of Unfair

Discrimination Act (4 of 2000)http://www.justice.gov.za/legislation/acts/2000‐004.pdf

43 Public Finance Management Act (1 of 1999) http://www.info.gov.za/view/DownloadFileAction?id=7057744 Qualification‐based selection promotes

excellence and saves millions – ACEC / 2010http://www.acecny.org/PDF/QBS2010.pdf

45 Quality Begins with Quality‐Based Selection(QBS) ‐ Nevada

http://www.acecnv.org/App_Images%5CQBS.pdf

46 Schedule of Disbursements (ECSA) http://www.ecsa.co.za/documents/Disbursement_2010.pdf47 Selection and Remuneration of Engineering and

Associated Consultants – Hong Kong / March 09http://www.cedd.gov.hk/eng/publications/handbook/index.htm

48 Standard for Uniformity (cidb) http://www.cidb.co.za/knowledge/publications/standards/sfuinfo/default.aspx

49 Time‐based Fees (ECSA) http://www.ecsa.co.za/documents/Indicative_Timebased_fees_2010.pdf

The Voice of Consulting EngineeringThe Voice of Consulting Engineering

ProcurementGuideline forConsulting Engineering Services

Supported by

Consulting Engineers South Africa (CESA)

Fulham HouseHampton Park North20 Georgian CrescentBryanstonJohannesburg, South Africa

PO Box 68482BryanstonJohannesburg, South Africa2021

Tel: +27 (011) 463 2022Fax: +27 (011) 463 7383Email: general@cesa.co.za / Web: www.cesa.co.za

Construction Industry Development Board (cidb)

Private Bag X14Brooklyn Square0075 Pretoria

Tel: 086 681 9995Fax: 0866 819 995Email: cidb@cidb.org.za / Web: www.cidb.org.za