Public Works
Term Maintenance and Refurbishment
Contract PW-CF 11
12th of November 2013
Presented by Paul Dunne FSCSI FRICS
HISTORY AND DEVELOPMENT OF THE CONTRACT
Discussions started 2010
Published 2011 / 2012
Dublin City Council is using the T.M.C. on a wide variety of repair, maintenance
and refurbishment contracts;
Dublin Fire Brigade Emergency maintenance ( 4 million euro's over 2 years)
Voids refurbishment ( 6 million euro's over 2 years across 5 city wide areas )
Refurbishment of residential stock ( houses and apartments - 15 million euro's over 3 years
across 6 city wide areas)
Priory Hall refurbishment
Kevin Street Library refurbishment (1.5 million euro's over 1 year)
Refurbishment of 3 nr. Swimming pool complexes in 1 bundle (1.5 million euro's over 1 year)
Pyrite remediation contracts
Energy retro-fitting works
Travellers accommodation maintenance
Listed buildings, conservation works
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In some situations the Small Works Contract or the Minor Works Contract have been
used where deemed appropriate.
However in some instances, certain factors come into play which favour the use of
the T.M.C., such as;
Impossibility of doing investigation work while property is occupied
Time constraints
SME’s issue/circular 10/10
Location of the work cannot be defined
Work cannot be accurately defined or scoped
Closure of public facilities not a practicable option
Need to do investigation work as the first Task Order
Contracts are always let on the basis of lowest price.
The default DCC position is always CF1 – CF6, but the T.M.C. is gaining increasing
use within DCC
Also being used by other Local Authorities, Government bodies etc.
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DEPARTMENT OF PUBLIC EXPENDITURE AND REFORM
Department updating documentation for inclusion on website.
Updated documentation will include;
- I.T.T. for Open Procedure
- I.T.T. for Closed Procedure
- Standard form of agreement
- Framework agreements
- Tender and Schedule
- Invitation to Tender
- Model Form of Task Order
- Employers note
It is anticipated that all of the above will be uploaded onto
website(constructionprocurement.gov.ie) by Christmas 2013
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The Employers note attached to the contract states that:
“The Term Maintenance and Refurbishment Works Contract may be used to
- address urgent maintenance requirements
- for planned maintenance
- for refurbishment works”
The Employers note also refers to
- unscheduled work
- work cannot be accurately defined in advance
- where other fixed price contracts ( PW-CF 1 to PW-CF6) may not be suitable
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The Employers note outlines that the contract can be used:
- as a stand alone contract
- with a single-operator framework
- with a multi-operator framework
Not going to say too much else about the frameworks.
A formal agreement is signed by the Employer and Contractor.
No contractual obligation arises until the Employer issues a Task Order
No obligation for payment arises until the Task Order is completed to the satisfaction of
the Employer
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SOME POINTS OF INTEREST
1.LIMITS
The limits that apply to the use of the contract are:
- maximum sum shall not exceed € 2 Million
- maximum duration should not exceed 2 years in the case of a multi participant framework
- maximum duration should not exceed 4 years in the case of a single participant framework
So …… when the Maximum Sum or the Maximum Duration is reached……the contract ends.
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2. No Tender figure included in the Form of Tender
“We offer to enter into the above contract on the Terms of this Tender”
One of the consequences of this is that all pricing documents must be opened!
3. Clause 1.1
“ This Contract is for the Contractor to execute work according to Task Orders….issued
from time to time by the Employer. The Employer may procure work in other ways and
does not guarantee the Contractor that any participation work will be procured under this
contract”
4. Clause 1.6
“ Any quantities in the Pricing Document are notional quantities only, included only for
tender assessment purposes, they do not describe the extent of the works to be executed”
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5. Task Orders
“Written order given to the Contractor under Clause 3.1….”
Task Orders can be issued changing previous ones.
Task Orders can define a duration for a task or require a programme from the contractor.
Certificate of Completion must be provided by contractor.
The initial Task Order issued by DCC is often for investigative / exploratory works.
The Employer may request quotations in advance for Task Orders, “using Contract rates and
prices if they apply….”
In some instances DCC and the contractor may engage in negotiation of the Task Order
price.
Clause 5.4, after the Cumulative Amount claimed ....reaches the scheduled percentage of the
Maximum Sum…. the ER may only issue a Task Order which includes a quotation.
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7. Clause 6 deals with payment.
Generally works are “valued using the rates and prices in the pricing document”
And “if there is no rate or price in the pricing document by making a fair valuation”
Or “on the basis of the labour rates tendered in the pricing document….” plus “the
reasonable cost of materials….”
**Very Important to include a General Section
in the Pricing Document.
If there is an accepted quotation, the employer pays the quoted amount.
Interim payments are at the Employers discretion. D.C.C., generally speaking, only pay
for completed tasks.
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8. Pricing Document
Pricing Document must be reasonably representative of the nature, scale and quantum of the works.
Known measurable items should be measured and included in the document.
A detailed Preliminaries section (also included in the Works Requirements – Volume A) should be
included.
As mentioned a General Section should be included:
- Labour rates
- Profit / Attendances on specialist works
- Profit / Attendances on materials invoices
- Emergency call outs
- Security
……… etc. etc.
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9. Dispute resolution
Clause 14.2
Conciliation is the default;
“The Conciliator will consult with the parties in an attempt to resolve
dispute by agreement”
No mention of Arbitration.
DCC experience is that disputes can, and are, resolved without reference to Clause 14.2.
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PROS AND CONS
Advantages
Designers love it (see below!)
Speedy, quick activation
Flexible and adaptable
Need for “full design” not as acute as in other forms of contract
Facilitates the use of SME’s
Cost certainty achieved
Disadvantages
Designers love it! (again)
2 Million euro limit
A lot of paperwork involved in frameworks
Strategic pricing can be an issue
Contractor can be left exposed if contract stopped – see earlier comment re Preliminaries
breakdown
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Dr. Garret FitzGerald was reported
to have frequently asked:
“ It sounds great in practice but
how will it work in theory? ”
……………….so if you have any
experience in using the Contract
or have any issues or concerns,
I’d love to hear them!
[email protected]
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ANY QUESTIONS ?
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