ADMINISTRATIVE POLICY
POL_I_ENR_008
Engineering
Roads
PLANT HIRE POLICY
Version 3 Adopted on 10/12/2014 by Council Resolution 1214/013
1.
PURPOSE
The purpose of this Policy is to –
a)
set out the method for the hiring of plant;
b)
set out the information to be made publicly available; and
c)
identify the responsibilities of all parties under this policy.
2.
PRINCIPLES
The principles underpinning this policy are the sound contracting principles set out in the Local Government Act
2009. These principles are –
a)
value for money;
b)
open and effective competition;
c)
the development of competitive local business and industry;
d)
environmental protection; and
e)
ethical behaviour and fair dealing.
3.
SCOPE
This policy applies to the hiring of all plant by Council.
4.
RESPONSIBILITIES
It is the responsibility of the Director of Engineering to ensure strict compliance with this policy. Any noncompliance must be referred to Council for consideration.
5.
DEFINITIONS
CEO means the Chief Executive Officer.
Council means the elected members of Carpentaria Shire Council.
DOE means the Director of Engineering.
Plant means the machinery required for hire by Council.
Preferred Supplier means those contractors appointed to a pool as preferred suppliers to undertake works
following evaluation and assessment of the tenders.
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6.
POLICY
6.1
Calling of Tenders
6.2
a)
Tenders will be called annually for the hire of plant.
b)
Advertisements will be placed pursuant to the Local Government Act 2009 (the “Act”) tendering
requirements with allowance for a tender period of a minimum of three weeks.
c)
Separate tenders will be called for each item of plant and separate tenders must be submitted for
each item of plant, including full supporting documentation for each item of plant.
d)
Council will determine what items of plant are required prior to the calling of tenders.
e)
Late or non-conforming tenders may be accepted at the discretion of Council. Late or nonconforming tenders will be evaluated, assessed and included in the report to Council. Such tenders
will be clearly identified in the report as late or non-conforming, together with the details of why the
tender was late or the nature of the non-conformance. To avoid any doubt, Council may refuse to
consider late or non-conforming tenders despite the abovementioned evaluation and assessment.
Opening of Tenders
Tenders will be opened at Council’s office at Normanton. The opening of the tenders will be open to the public.
All tenderers must be advised of the date and time for the opening.
6.3
Evaluation and Awarding of Tenders
a)
Tenders will be evaluated and assessed by a panel of at least four officers chaired by the DOE or
delegate, or independent consultants engaged by Council.
b)
Tenders will be evaluated and assessed for eligibility to become a Council Preferred Supplier.
c)
The evaluation criteria against which tenders will be evaluated and assessed are:i.
Tendered Rate pursuant to Council’s Local Preference Policy
90%
ii.
Tender Response, Information and Demonstrated reliability of Plant and Contractor
10%
d)
The awarding of the Preferred Supplier Pool will be approved by Council.
e)
No changes to the Preferred Supplier Pool must be made without prior approval by Council.
f)
No contractor will be engaged from outside of the Preferred Supplier Pool without prior approval by
the Mayor and unless there are extenuating circumstances outlined in writing by the DOE.
g)
Where contractors are engaged from outside the Preferred Supplier Pool, details of any
engagements, including the contractor’s rates, will be reported to the next monthly Council meeting
in the Director’s report. Any contractor engaged outside of the list will be replaced by a contractor
from the Preferred Supplier list once they become available.
Council will publish –
h)
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i.
the priority order of engagement for each item of plant;
ii.
tendered rates;
iii.
for each contractor – a copy of the contractor’s evaluation and assessment report; and
iv.
any other information considered relevant by Council in the awarding of the tenders;
To ensure open and transparent governance.
7.
i)
In publishing tendered rates, it is recognised that the tendered rates comprise only one of the
evaluation criteria. The overall priority order of engagement is the main factor determining the
engagement of plant. To avoid any doubt, tendered hourly rates do not solely decide the priority
order.
j)
The CEO or delegate may accept further Tenders after the closing date from preferred suppliers
for a change of plant which has already awarded preferred supplier status. The priority order in the
Preferred Supplier Pool will not be altered if the replacement plant provided is of the same or higher
standards and the terms of conditions of tender remain the same.
k)
The CEO may, after consulting the Mayor, remove plant from the Preferred Suppliers Pool should
there be a change in circumstances with respect to the criteria on which the eligibility was initially
determined. In the interests of natural justice and before making any decision, the CEO must give
an affected contractor a show cause notice in order to allow the contractor to make written
representations as to why the plant should not be removed form the Pool.
l)
In all cases, where plant is removed from the Pool, a report must be prepared detailing the reasons
why the plant was removed and be provided to Council for Council’s endorsement or otherwise.
METHOD OF HIRING PLANT
a)
The acceptance of a Tender does not guarantee any level of work during the year. Council will hire
plant, having regard to the specified evaluation criteria, on a needs basis.
b)
Once plant from the Preferred Supplier list is engaged on a particular job, the plant will not be
replaced on that job unless there are extenuating circumstances approved by the DOE. The DOE
must keep a written record of the reasons for the decision to replace the plant and provide a written
update to Council in the monthly Engineering Road Report.
c)
Wherever possible, plant of contractors will be placed in the same crew. It is recognised that there
will be many occasions where such an arrangement is not possible due to operational requirements,
but it is the responsibility of the DOE to reasonably facilitate this approach.
d)
The DOE will authorise the hiring of plant in conjunction with operational supervisors.
e)
Where practicable, Council plant is to be utilised prior to the engagement of other plant.
f)
If a contractor unreasonably refuses a job or leaves a job without, in the opinion of the DOE, a
satisfactory reason, the contractor may be placed at the bottom of the priority order for all of the
Contractor’s plant in Council’s Preferred Supplier Pool. In the interests of natural justice and before
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making any decision, the DOE must give an affected contractor a show cause notice in order to
allow the contractor to make written representations as to why the contractor should not be placed
at the bottom of the priority order.
g)
8.
If the tenderer is not the owner of the tendered plant, Council reserves the right to not allocate the
10% local preference award for the tendered rate.
COMPLAINTS
Prior to making a complaint, contractors will be encouraged to first discuss any concerns regarding plant hire
with the DOE and/or the Works Manager.
All complaints in relation to the hire of plant must be made in writing to the CEO setting out the grounds of the
complaint and the facts and circumstances in support of the complaint.
Complaints made to Councillors or verbal complaints will not be investigated.
The CEO may remove a contractor from the Preferred Supplier Pool if the CEO reasonably believes that a
complaint is made without sufficient grounds or is made only to cause annoyance. In the interests of natural
justice and before making any decision, the CEO must give an affected contractor a show cause notice in order
to allow the contractor to make written representations as to why the contractor should not be removed from the
Preferred Supplier Pool.
9.
REVIEW
Council will review the tender specification for plant hire prior to the calling of annual tenders.
10. LEGAL PARAMETERS
Local Government Act 2009.
11. ASSOCIATED DOCUMENTS
Plant Hire tender documents.
12. RESOLUTION
Adopted
by
Council
on
the
10
December
2014
by
Council
Resolution
1214/013.
_________________________
Chief Executive Officer
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