State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

1.Consultants
Consultantservicesmayberequiredforany,orall,ofthefollowing:
q q q q

q q

ProjectManager(usuallyengagedforprojectsinexcessof$5M) Architect QuantitySurveyor Engineers r BuildingServices(mechanical,electrical,hydraulics,communications,etc.) r Structural/Civil r FireRiskAssessment BuildingSurveyor OtherSpecialists r Acoustics r Asbestos r Auditors r Environmental/Energy r Ergonomics r HealthServicePlanning r InteriorDesign r InvestmentEvaluation r IndustrialHygienists r KitchenConsultants r Landscaping r PostOccupancyEvaluation r ProbityAuditors r TownPlanning r TransportationPlanner r ValueManagementFacilitating r WaterManagement

TheHealthService/AgencyandtheDepartmentwilljointlybeinvolvedindeterminingtherequirementsandthe selectionprocessoftheconsultant(s)tobeappointed. Thetypeofconsultant(s)required,compositionoftheconsultancyteamandscopeofserviceswillbe determinedbytheProjectControlGroup(PCG)(refertoTable:Consultantsgenerallyrequiredforprojects costinglessthan$5million).This,togetherwiththeselectionprocess,willbeinfluencedbythefollowing:

q q q q q q q

Sizeandcomplexityofproject Previousworkundertaken Outcome(s)ofpreviousstudies Specialtyofprojectorprojectcomponents Procurementmethod Projecttimeline Deliverablesrequired.

Backtotop
Consultantsgenerallyrequiredforprojectscostinglessthan$5million

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State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

Activity PlanningBriefandMaster Plan FunctionalBriefand FeasibilityStudy SchematicDesign DesignDevelopment ContractDocumentation Tender Construction PostOccupancyEvaluation Project Manager Optional Optional Complex projects Complex projects Complex projects Complex projects Complex projects Complex projects Architect Value Quantity and Management Surveyor Engineers Consultant Optional Optional

Generallyconsultantswillbeengagedtocarryoutservicesthatenableaprojecttobesuccessfullymanaged throughtheprojectdeliveryprocess.Thisprocesswillrequireprofessionaldutiestobecarriedoutinthe variousphasesofaprojectincludingsomeorallofthefollowingservices:

q q q q q q q q q q q q q q q q q q q

AssetAssessment AssetManagementPlanning BusinessPlanningandGatewayReviews Commissioning ContractAdministration ContractDocumentation CostEstimatingandControl Decommissioning DesignDevelopment EnergyandWaterAudits FeasibilityStudy FunctionalBrief MasterPlanStudy PlanningBrief PostOccupancyEvaluation SchematicDesign ServicePlanning* Siteselection TenderandEvaluations

*ServiceplanningmaybecarriedoutbytheHealthService/Agencypriortotheconsultantengagement. TheDepartmentorPCGmayreviewtheprojectatanystage,specificallyengineeringservicedesignand documentation,priortotendering,byengagementofanindependentconsultant. RefertofurtherCapitalDevelopmentGuidelinesfordetailsofprocessandexpectedoutcomesofeachstageof theproject.

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State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

Thisguidelineprovidesinformationonthescopeofservices(refertoSampleBrief)andfeesthatmaybe offeredbyConsultants.However,theDepartmentshouldbeconsultedpriortocommencingtheConsultant selectionprocessformajorprojects.

2.ScopeofServices
ThefollowingisageneraldescriptionoftheservicesusuallyprovidedbytheConsultantsthroughoutthe variousphasesoftheproject. Phase1 Phase2 Phase3 Phase4 Phase5 Phase6 Phase7 MasterPlan* FeasibilityStudy* SchematicDesign DesignDevelopment ContractDocumentation ContractAdministration PostOccupancyEvaluation

*Phase1and2areoftencombined. DependentuponthenatureoftheprojectandtheperformanceofaConsultanttheymaybeengagedforall phasesorpartthereof. Whenconsultantsaretobeengaged,thefollowingissueswillneedtobeclarifiedpriortotheirappointment:

q

q q

Thescopeofservicerequiredfortheproject.Adetaileddescriptionoftheconsultant(s)servicestobe providedfromtheinitialplanningstagesthroughtothefinalisationofthecontract. Timelinesforexecutionoftheservicesinaccordancewiththeapproval,fundingandworksprogram. Theconsultantsareexpectedtowarrantthatdesignsanddocumentationarefitforpurposeasrequired forthedeliveryofservicesandthattheestimateiswithintheapprovedbudget. Thefeestructureandanycircumstances,whichwouldrequireafeeadjustmenttogetherwiththefees requiredatdesignmilestones. Theformsofprocurement.Ifthisisnotdeterminedpriortoconsultantengagementthenthe consultantsaretobasetheirproposalontheuseofthestandardGovernmentformoflumpsum contractAS21241992withspecialconditions. Theconsultantsareexpectedtoprovideinputandparticipateinthereviewsandreportsassociatedwith Gateway,ValueManagementandPostOccupancyEvaluation.

DetailsoftheProjectManagerscopearesetoutintheattachedsamplebrief. TheDepartmentalsorequirestheprovisionofengineeringservicesdatainsuitablehardcopyandcomputer format.

ProjectManager
TheProjectManageristheteamleaderandisusuallyaseparateappointmentforprojectsinexcessof$5 million,sensitiveorcomplexprojects.AppointmentofaProjectManagerpreferablyoccurspriortoanydesign workhavingbeenundertaken.TheProjectManagerisexpectedtomanageandcoordinateallaspectsofthe projectduringplanning,design,documentation,construction,equippingandcommissioningstages.

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State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

Generallytheprojectmanagersserviceswillentailthefollowingactivities:
q q q q q q q q

q q q

q q q q

Establishproceduresandreportingrequirementsforliaisonwithclientandconsultantteam Ifrequiredassistintheselectionofsite,procurementmodelandclientrepresentation. Assistintheselectionandengagementoftheconsultantteam Manageandcoordinateallconsultants Developandmanagetheapprovedprogramandbudget Reviewandwhereappropriate,amendtheprojectbrief ProvideregularreportstoandmakerecommendationstothePCG ConductbusinessplanningstudiesincludingGatewayreviewofparticipationofPrivateSector assessment Prepare,manage,coordinateandensurecontractdocuments Tender,evaluateandrecommendconstructionworks Ensureappropriatequalityassuranceprocessincludingmeetingsustainabilityandriskmanagement objectives OverseeconstructionworksandrepresenttheprincipalasSuperintendent Managethecommissioningprocess Reviewandreportonoutcomes Undertakethepostoccupancyevaluation(12monthsafterhandover).

Backtotop

Architect
Theextentofservicesprovidedwilldependonthenatureoftheprojectandtheprojectdeliverymethod. Forprojectslessthan$5M,thearchitect/principalconsultantisgenerallyresponsiblefortheengagementof subconsultantsotherthanthequantitysurveyor.Thesubmissionoftendersistoincludeadescriptionof feesandservicesforthepreferredsubconsultants.Formajorprojects(inexcessof$510M),thebuilding servicesengineerswillgenerallybeappointedseparately. Theagreedscopewilldeterminetheworksandactivitiesthearchitectwillcarryout. ForprojectswherethereisnoProjectManager,thearchitectwillundertaketheresponsibilitiesasstatedunder theprevioussection.Servicesprovidedbythearchitectincludethefollowing:
q

q q q q q

q q

q q q

Prepareplansanddesignsappropriatetothebrief(s)andclientrequestsincludingmeetingbuilding requirementssuchaspassivedesigninitiativesassociatedwithenergyefficiencyandlowmaintenance assess Coordinatesubconsultantsworkwhichwillhaveimpactonplans/designs Carryoutserviceswithinapprovedprogramandbudget Undertakeexistingconditionsaudit Ensuretheworkscomplywithregulatoryrequirements Liaisewithusergroupsandattendmeetingsofthedesignteamandwhereappropriate,thePCGand supportpreparationofkeydocumentationsuchasBusinessPlans LiaisewithandprovideprogressreportstotheProjectManager AdministertheconstructioncontractandperformfunctionsofSuperintendentortheSuperintendents Representativewhereappropriate Manageorsupportthecommissioningprocessanddefectsliabilityperiodactivities Participateinreviewsandthepostoccupancyevaluation(12monthsafterhandover) ConsultantsaretopreparedesignsanddocumentationinaccordancewithEnvironmentalSustainable Developmentprinciplesthatembodyobjectivesofenergyefficiency,greenhouseemissionreductionand wasteminimisation.

EngineeringServices
Thescopeofservicesforengineeringshouldbeappropriateateachstagetoensureallengineeringand

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Engagement of Capital Consultants

buildingsystemsoptionsareconsideredintheplanninganddesignprocesses. Wheretheprojectsareinexcessof$510M,theDepartmentwillindependentlyappointthebuildingservices engineers. Engineeringservicesnormallyincludecommunications,environmental,firesafety,mechanical,electrical,civil, structuralandhydraulics.Asaprojectprogresses,itisnormalfortheengineeringrequirementstobecome moredetailedanditispossiblethatadditionalspecialistconsultantsmayberequired. Engineeringservicesusuallyentailthefollowing:
q

q q q

Inresponsetothebriefandapprovedplans,preparedesignsthatresultinthemostresourceandcost efficientandeffectiveoutcomes Undertakeexistingbuildingservicesandstructuralconditionsaudit(includingfiresafetyrequirements) andidentifykeyinfrastructureissuesaffectingthesite Providelifecyclecostanalysisrecurrentandcapitalcostestimates r Thefacilitiesshouldmakeeffectiveandefficientuseofscarceresourcessuchasfossilfuelsand water r Engineeringsystemsselectedshouldpromoteuseofrenewableenergysuchassolarwithparticular applicationtorelevantlocationssuchasnorthofthedivide Undertakedesignsanddocumentationofbuildingsystems,materialsandengineeringinfrastructurethat arerobustandlowmaintenanceandreflectsoundengineeringdesignprinciples Attenddesignteammeetings Commissionandadministercontracts Participateinthepostoccupancyevaluation(12monthsafterhandover).

Backtotop

QuantitySurveyor
TheDepartmentwilldirectlyengagethequantitysurveyorasanindependentconsultant,exceptforminor workprojects. TheDepartmentexpectstheproceduresoftheAustralianInstituteofQuantitySurveyors(AIQS)CostControl ManualtobefollowedandtheprojectdevelopmentstagesarerelatedtoNPWCCostPlans.Inrelationtocost control,theDepartmenthasdevelopedforuseCapitalManagementGuideline2.3,CostPlansandReports. Generallythequantitysurveyorwillberesponsiblefor:
q q q q q q q

Costmanagementandcontrol CostestimatingincludingpreparationofBillofQuantitieswhenrequired Assess,reviewandverifyindependentlythebuildingengineeringservicesestimates Costplanningandwarrantthepretenderestimateiswithintheapprovedbudgetallocation Monitoringandreportingoffinancialprogressincludingvariationsandcontingencies Identifyingcontingentliabilities(atcompletionoftenderdocumentation) Participateinthepostoccupancyevaluation(12monthsafterhandover).

TheDepartmentalsorequirestheprovisionofcost/plandatainsuitablecomputerformattoallowdata, lodgement,transfersandaccessforanalysis.

BuildingSurveyor
Theservicesofabuildingsurveyorareengagedtoarrangecertificationofdocumentationandissuanceofan occupancypermit/certificateasrequiredbytheBuildingAct1993. UndertheAct,thebuildingsurveyorisrequiredtocertifyalltenderdocumentspriortoconstruction

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State Government of Victoria, Australia, Department of Health

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commencingandissueacertificateofoccupancyatthecompletionoftheproject.Inthoseinstanceswhere exemptionfromcompliancewiththeregulationsisrequired,thebuildingsurveyoristoarrangeforseekinga modification. Followinginitialcertificationanysubsequentamendmentstothedocumentsaretobecertifiedpriortochanges beingimplemented.

OtherSpecialistConsultants
Insomeprojectsitmaybenecessarytoappointspecialistconsultantstoprovideadviceandinputon particularaspects.Theseconsultantsmaycoverareassuchastownplanning,environmentaldesign, landscaping,security,asbestos,ergonomics,telecommunication,hazardousmaterialssuchasasbestosand interiordesign.Thescopeofservicerequiredwouldusuallybedefinedbythespecificproblemencountered.

CommencementofServices
NocontractistocommencewithouttheapprovaloftheMinisterortheappropriatedelegatedDirector, SecretaryorExecutiveDirector.TheConsultantsrecommendedforappointmentarenottocommencework withoutdocumentationonfileofoneofthefollowing:
q q q

Asignedcontract,or Anapprovaltoenterintoacontractfromanauthoriseddelegate,or Aletterofengagementfollowingan"approvalinprinciple"fromthedelegate.

3.ConsultantSelectionProcess
AppointmentofconsultantsisnormallycarriedoutbytheCapitalProjectsandServicePlanningBranch(CPSP) followingrecommendationbyaselectionpanelincludingHealthService/AgencyandRegional/Divisional representatives.ItisundertakeninaccordancewiththeProjectDevelopmentandConstructionManagement Act1994,MinisterialDirectives1and2,theCodeofPracticefortheBuildingandConstructionIndustryand regulatoryrequirements. TheconsultancymaybenovatedtotheHealthService/AgencyfollowingtheschematicdesignandCostPlanC stages1and2.InthoseinstanceswheretheHealthService/Agencyareselectingconsultant(s),theywillneed toobtainthelatestinformationfromCPSPregardingthetenderingprocessandassociatedresponsibilities. Generally,theappointmentoftheProjectManager(ifrequired),ArchitectandQuantitySurveyorwillbeprior tothecommencementoftheMasterPlanorFeasibilityStudy.Consultant(s)maybeappointedforthewholeof theprojectcomponents.Theengagementsareforservicesidentifiedasphasesandtheconsultantisto completeeachphasesatisfactorilybeforeproceedingtosubsequentphases.

ConsultanciesFinancialCriteria
TheProjectDevelopmentandConstructionManagementAct1994andMinisterialDirectionNo.1,1995: TenderingProvisionsforPublicConstruction,andMinisterialDirectionNo.2,1996:ContractualProvisionsfor PublicConstruction,providesforconsultantengagementsundertakenbytheDepartmentofHumanServices andpublicbodies.ThesedocumentscanbeviewedontheInternetat http://www.buildingcommission.com.au/.
WrittenQuotationRequirements

ProjectValue

NumberofQuotes Required

AdditionalInformation

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Engagement of Capital Consultants

$0$25,000 1writtentender Duediligenceisrequired. Proposalmustbe consistentwithcurrent marketprices.

$25,000$150,000

3writtentendersminimum Theprocessshould 3Tenderersfromalistof incorporateactivitiesset prequalifiedconsultantsor outinTable:Consultancy invitingpublictenders AppointmentFlowchart

$150,000andover

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State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

TheConsultantSelectionProcess

4.ConsultantFeesandOtherIssues
Thefollowingisageneralguidetoappropriatefeestructuresforservices,whichmaybeprovidedbythe variousconsultants. Asaresultofchangingprioritiesorfundingavailability,projectdevelopmentmaynotbecontinuous.Health Services/Agenciesaretoobtainprofessionalservicesinamannerthatwillprovideforconsultingservicestobe interruptedorterminatedrecognisingthestopstartnatureofprojectdevelopment. Asaconsequence,thefeestructureandconsultantscontractshouldreflectthevariousdistinctstagesofa project. ItisthePCGsresponsibilitytoconfirmthatthefeesincorporateallservicesrequiredbyeachConsultant. Suchfeesshouldreflecttheiractualresponsibilities(egmanagement,reporting,design,documentation, contractadministrationsuperintendent,coordination,commissioningetc).

GeneralFeeArrangements
Planning/FunctionalBriefs
Feesforthedevelopmentofplanningandfunctionalbriefsareusuallyafixedlumpsumrelatedtoservicesto beprovided.Thereneedbenocommitmenttotheprojectproceedingbeyondthisstage.

MasterPlan/FeasibilityStudies
Feesforthisstageareanticipatedtobeonafixedfeebasisrelatedtotheservicesprovided.Therewouldbe nocommitmenttotheprojectproceedingtothenextstage.

DesignStage
Thefeeforthedesignstageisgenerally25percentofthetotalpercentagefee.
q

SchematicDesign Feesofapproximately12percentofthetotalpercentagearebasedontheapprovedcostestimateof construction.Thiswillbethenetprojectcost(excludingfees,landacquisitionandprolongationfactors) inaccordancewithCostPlanC(limitofcostestimate). DesignDevelopment Feesofapproximately13percentofthetotalpercentagearebasedonthecostestimateof construction.Thiswillbethenetprojectbuildingcost(excludingfees,landacquisitionandprolongation factors)inaccordancewiththeapprovedCostPlanC,(limitofcostestimate). TheDepartmentorPCGmayreviewtheproject,specificallyengineeringservicedesignand documentation,priortotenderingbyengagementofanindependentconsultant.

ContractDocumentation

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State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

Thefeeforthecontractdocumentationstageisgenerally40percentofthetotalpercentagefee. FeesaremaintainedonapercentageoftheconstructioncostinaccordancewiththeapprovedCostPlanC (limitofcostestimate).Thiswillbethenetprojectcost(excludingfees,landacquisitionandprolongation factors).

ContractAdministration
Thefeeforthecontractadministrationstageisgenerally35percentofthetotalpercentagefee. FeesaremaintainedonapercentageoftheconstructioncostinaccordancewiththeapprovedCostPlanC (limitofcostestimate). Thiswillbethenetprojectcost(excludingcontingencies,fees,landacquisitionsandescalationfactors). Althoughfeesfordesign,contractdocumentationandcontractadministrationareusuallyonapercentage basis,uponcompletionofschematicdesigninwhichthescopeofworksandbudgetwillbedeterminedthe feescanbeconvertedtoafixedfeebasis. Feesforeachstagemaythenbeconvertedintoafixedfeeifanoveralldiscountisprovided.Feesfor additionalworkssuchasclientinitiatedchangesshouldbenegotiatedatprojectcommencementstage.When presentingfeeproposalsconsultantsaretonominatethehourlyratesofkeypersonnel. Backtotop

Disbursements
Inthecourseofprovidingservices,consultantswillincurexpenses,whicharereimbursable.Whenpresenting feeproposalsconsultantsaretoidentifydisbursements.Generallytravel,printing,photocopying, communication,provisionofcontractsandphotographicrecordscostsaretobeincludedintheconsultant percentagefees.Expenses,whichmaybeadditionaltonormalfees,include:
q q q q q q q

FeespaidtoStatutoryAuthorities/GovernmentLevies Advertisementsandpublishednotices Provisionofmorethantheagreednumberofcopiesofdocumentsand/ordrawings Specialservicessuchasdevelopmentofgeneralprototypes,majormodelsormanuals Useofspecialisedequipmentwhererequiredandagreedbyclient CostsassociatedwithaClerkofWorks Travelassociatedwithinspections/studyoffacilitiesnotdirectlyassociatedwiththeproject.

Novation
ConsultantscanbenovatedfromtheDepartmenttoHealthServices/Agencies.Thisactiontransfersthe responsibilitytoactasthePrincipalinthecontract,fromtheDepartmenttoHealthServices/Agenciesfor thoseconsultantswhoarenovated.HealthServices/Agenciesneedtobeawareoftheirresponsibilitiesand obligationsunderthesecircumstances.

ProfessionalIndemnityandPublicLiabilityInsurance
AnyconsultantsigningacontractwiththeDepartmentorHealthService/Agency(knownasthePrincipal)shall provideandmaintainProfessionalIndemnityandPublicLiabilityInsurancetotheminimumvaluesetoutin attachmenttotheconsultantsbriefunlessotherwiseagreed. ThepurposeoftheinsuranceistoindemnifythePrincipaland/ortheStateofVictoriafromandagainstany claim,demand,action,suitorproceedingbyanypersoninrespectofpersonalinjurytoorthedeathofany personorlossofordamagetoanypropertyarisingoutoforasaconsequenceofanactofnegligencebythe

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State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

Consultant,employees,agentsorsubconsultantsandalsofromanycostsandexpensesthatmaybe incurredwithanysuchclaim,demand,action,suitorproceeding.

TerminatingAgreements
StandardDepartmentalconsultantagreementsdetailtheproceduresandreasonsleadingtoterminationof services.Thesemayincludebreachofagreementiftheprojectdoesnotproceed,expirationofserviceorby reasonablenoticeinwriting.Agenciesneedtobeawareoftheirresponsibilitiesandobligationsunderthese circumstances. Whereaconsultantsagreementisterminated,HealthServices/Agenciesneedtoensurethatexpress contractualprovisionismadewithrespecttotheownershipofcopyrightandtheuseofconsultantsplans, documentsandotherrecordsprovidedduringtheperiodengaged. TheDepartmentrecommendsthattheagencyprotectitsrighttotheuseofanymaterialpreparedand documentsintheeventofdisputewithconsultants.

DeferredProjects
Itisthenatureofcapitalworksinthepublicsectorthatthedevelopmentofaprojectmayextendovera numberoffinancialyears.Asaresultofchangingprioritiesorfundingavailabilityprojectsmayneedtobe deferredorsuspendedattheendofanystage. TheDepartmentsstandardcontractprovidesforconsultancy(s)tobeextendedonaprogressivebasisand feeproposalsaretobebasedonthestagesoutlinedinthisdocument.Additionalcostsarenotreimbursable intheeventthattheprojectisdeferredorsuspendedunlesspreviouslynegotiated.

IntellectualProperty
Copyrightandallotherintellectualpropertyrightsinallmaterialpreparedordevelopedbytheconsultantfrom engagementandduringthecourseoftheproject(includingbutnotlimitedtocopyrightinalldocuments, reports,charts,drawings,databases,software,sourcecodes,modelssystems,slides,tapesand specifications)vestintheStateofVictoria. Onorbeforethecompletiondate,theconsultantshalldelivertotheCapitalManagementBranchallmattersin whichpropertyorcopyrighthasvestedintheStateofVictoria. Backtotop

ContingentLiabilities
TheQuantitySurveyoristoidentifyandsignoffcontingentliabilitiesatthecompletionoftender documentation.TheProjectManagerand/orPrincipalConsultantstothePCGpriortotenderingaprojectwill alsoacknowledgesuchliabilities.

TypicalFeeSchedule
Feesforprojectsinthe$35mrangewilllikelyamountto:
q q q

ProjectManagement1.25%2.25%oftheTotalConstructionCost Architectandsubconsultantteam7.5%9.5%oftheTotalConstructionCost QuantitySurveyor1.5%2.25%oftheTotalConstructionCost.

Feesmayvaryinaccordancewithspecificprojectrequirementssuchasthelocation,timing,sizeandamount ofrefurbishmentorredevelopmentworks.

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State Government of Victoria, Australia, Department of Health

Engagement of Capital Consultants

5.SelectionCriteria
Thebroadcriteriausedinconsultantselectionwilltakeintoaccountthefollowing:

ServicesPlanningExpertise
Thiscriterionistobeusedwhererequired.

ProjectExperience
Therelevantexperienceoftheconsultingorganisation/groupinworkingwithoronaprojectofthistype, scaleandenvironmentegdesign,documentation,administrationetc.

GovernmentProcedures
KnowledgeofGovernment/DepartmentofHealthprojectsandprocedures.

Team/Management
Theassignedpeopleontheprojecttheirexperience,expertiseandnominatedtaskshowtheywillbe managedandcoordinated.Considerationhastobegiventotheconsultantsrecognitionoftheirresponsibility totheprojectprocess.

Methodology/Approach
Havingasoundunderstandingoftheissuessurroundingtheparticularprojectandtailoringthesequenceof activitiestoensurethatthedesiredprojectoutcomeisachieved.Theabilitytochallengeandpromotelateral thoughtamongstallpartiesisanimportantconsideration.

Program/Response
Ademonstrationthattheconsultantshaveanawarenessofthetimeconstraintsplacedontheproject,and, havingconsideredtheparticularissuesrelevanttotheproject,haveestablishedthesequenceoftasksand associatedschedulesnecessarytoachieveanypredeterminedtimelines.

ClientResponse
Enthusiasmandprofessionalismofpresentationtheabilityoftheconsultanttoelicitacooperativeand valuablecontributionformtheclientandfamiliaritywithlocalconditions.

QualityAssurance
Theprocessthattheconsultantsputinplacetoensurethecorrectnessofplanning,designand documentation,andcoordinationofthephysicalaspectsoftheproject.

Availability
Firmshistoryandresourcecapabilitytoperformservicesandavailabilityofkeypersonnel.

FeeInclusions

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Engagement of Capital Consultants

Scopeofservicesincludedinthefeeproposalandtheappropriatenessofthequotedamounttoenable optimumserviceprovisionfortheclient.

References
Normallythreerefereesshouldbeprovidedtosupportthesubmissioninrelationtothetypeofwork/role envisaged.

6.ConsultantProfessionalIndemnityInsurance
CMBGuidelinesForEngagement
ProfessionalIndemnityInsurance ContractPhase Predesign TypeofActivity SumInsuredLimits PlanningBrief&MasterPlan FunctionalBrief&Feasibility Study Designand Documentation SchematicDesign DesignDevelopment ContractDocumentation AlliedServicesnotassociated withStatutoryorContractual Obligation(eg.acoustic, ergonomic,interiordesign, kitchen,landscape,town planning,valuemanagement Contract Administration Tender Construction/Contract Administration AlliedServicesnotassociated withStatutoryorContractual Obligation(eg.acoustic, ergonomic,interiordesign, kitchen,landscape,town planning,valuemanagement ThePIlimitsset outabovearea guide.Thelevels canbeadjustedin consultationwith DHSFinance Branch. Ifthereisarequesttoaddress thelevelsotherthanthelevels setoutintheStandardBrief, theapproachshouldbeto: Consultanttoprovideaclear proposalofwhatis Ifprojectvalueexceeds$10Mminimumsuminsured limittobenegotiatedwiththeDepartment. Minimum$2Manyoneclaimunlessprojectvalue exceeds$10M. Minimum$2Manyoneclaimunlessprojectvalue exceeds$10M. Ifprojectvalueexceeds$10Mminimumsuminsured tobenegotiatedwiththeDepartment. Minimum$5Manyoneclaimunlessprojectvalue exceeds$10M.

Minimum$5Manyoneclaimforprojectvalueupto $10M. Minimum$10Manyoneclaimforprojectvalue exceeding$10Mbutlessthan$25M.Ifprojectvalue is$25Mormoreminimumsuminsuredlimittobe negotiatedwiththeDepartment. Minimum$2Manyoneclaimunlessprojectvalue exceeds$10M. InsupportoftherequesttoaddressthePIlevels, theconsultant(s)istosetoutriskprofileand assessmentoftheservicessoughtinaccordance withtheprojectdescriptors,specificrisksassociated withtheprojectsuchasinnovationrequirements, siteoraccessconstraints,restrictedtimeframes, etc.

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Engagement of Capital Consultants

recommended Supportrequestwithan accompanyingrationale Provideinformationfor consideration. Roleofconsultantintermsofprojectdevelopment (e.g.superintendentofcontract)andduringwhich phasedoestheriskexisti.e.design,documentation, tender/award,construction,commissioningand builders'defects. Otherresponsibilitiese.g.PMalsohasresponsibility forcoordinationprogramming,IndustrialRelations, strategicissuesProjectandcontractmanagementof scope,cost,qualityandcashflowaswellas monitoring/reportingtoPCG RiskAssessment(refertoAS4360)relatedtothe consultancysettingoutthemagnitudeandfrequency ofrisks(inasummaryspreadsheetwouldbeuseful). Riskexposureshouldsetouttheimpactoveralle.g. consequencesoferrorsuchasinvolvesvariation negotiationswhichoccurfrequentlyandcanhave substantialimpactonTECthusimpactissignificant. Riskmitigationmeasuresandevidenceofuseon similarprojectssuccessfullycompletedbyconsultant (ifknown)andwhatisdonetocontainthisrisk(e.g. followingDepartmentalprocedures,CPSP supervision,gooddocumentation,checking,QA system, Auditandriskreductionmeasuressuchas3rdparty independentreview&input,trainingandre educationofstaffetc). Theinformationthatwouldbeconsideredas supportiveofestablishingspecificPIcoverlevels wouldinclude: Typeofconsultancyanddemonstratedexperienceby staffassignedtotheproject,thebackup arrangementsandrelevantstructureofthefirm.

Checklist
Thisisthechecklistthatrelatestothecontentofthisguideline.

Checklists
EngagementofConsultants(pdf,54.1KB) TheEngagementofConsultantschecklististobecompletedandsignedwitheachprojectandsenttothe appropriateDHSProjectManager.

ProFormas

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Thesearetheproformasthatrelatetothecontentofthisguideline.

ProFormas
EngagementofConsultantsMajorProjectBrief(MSWord,795.5KB) TheMajorProjectBriefproformaistobeusedasatemplate. ContractDHSStandardContract(MSWord,337.5KB) TheDHSStandardContractproformaistobeusedasatemplate.

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