NEC3 Engineering and Construction Contract

(April 2013)

INSTRUCTIONS FOR TENDERERS

A138 (Old A12) CHELMER VIADUCT REPLACEMENT

February 2014
TENDER ISSUE, Rev 0
Engineering and Construction Contract Instructions for Tenderers

List of Contents

1. THE TENDER PERIOD PROCESS............................................................3

1.1. General.......................................................................................................3
1.2. Documents..................................................................................................4
1.3. Tender communications..............................................................................4
1.4. Meetings......................................................................................................5
1.5. Inspections..................................................................................................5
1.6. Tender Programme.....................................................................................5
1.7. Cancellation of Tender................................................................................5
2. SUBMISSION OF TENDERS......................................................................7
2.1. General.......................................................................................................7
2.2. Quality Statement........................................................................................7
2.3. Key people submission...............................................................................8
2.4. Methodology statement...............................................................................8
2.5. Programme.................................................................................................9
2.6. Activity Schedule.........................................................................................9
2.7. Resource cost schedule..............................................................................9
2.8. Financial information...................................................................................9
2.9. Other information.......................................................................................10
3. TENDER ASSESSMENT PROCEDURE..................................................11
3.1. Evaluation Method.....................................................................................11
3.2. General.....................................................................................................11
3.3. Quality Marking.........................................................................................12
3.4. Financial Scoring.......................................................................................13
3.5. Combining quality and financial scores.....................................................13
3.6. Validating the Quality submission..............................................................13
3.7. Validating the financial information............................................................14
3.8. Determining the Preferred Bidder..............................................................14
3.9. Sustainability check...................................................................................14
3.10. Team Confirmation....................................................................................15
4. NOT USED................................................................................................16
5. TENDER AWARD.....................................................................................17
5.1. General.....................................................................................................17
ANNEXES................................................................................................................ 18
Annex A - Tender Documents...............................................................................19
Annex B - Tender Query Form..............................................................................22
Annex C - Indicative Tender Period Timetable......................................................23
Annex D - Quality Statement Requirements..........................................................24
Annex E - Quality Assessment..............................................................................31
Annex F - Determination of Successful Tender.....................................................37
Annex G - Proforma for Fee Schedule..................................................................40
Annex I - Form of Key People Schedule...............................................................41
Annex J - Form of Risk Register...........................................................................41
Annex K – Fair Payment Charter..........................................................................42
Annex L – Anti Bribery Code of Conduct...............................................................43
Annex M – Anti Fraud Code of Conduct................................................................45
Annex N – Activity Schedule.................................................................................47

Tender Issue, Revision 0 Page 2 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

1. THE TENDER PERIOD PROCESS

1.1. General

1.1.1 These Instructions for Tenderers apply to the submission of tenders for A138
(Old A12) Chelmer Viaduct Replacement. The tender process is carried out
under the restricted procedure following the publication of contract notice no
2013/S 200-345086 dated 15 October 2013.
1.1.2 The process seeks to determine the most economically advantageous tender
to the Highways Agency. This will be a compliant and sustainable affordable
bid with a validated overall score higher than any other Tenderers’ overall
score.
1.1.3 Tenders must be submitted in accordance with these Instructions. Tenders
not complying with these Instructions may be rejected by the Highways
Agency whose decision in the matter will be final. These Instructions will not
form part of the proposed contract.
1.1.4 For enquiries contact the Highways Agency via the e-Sourcing portal
https://highways.bravosolution.co.uk for A138 (Old A12) Chelmer Viaduct
Replacement. The Procurement Officer for this competition is Steven Bissell
at the Highways Agency. Contact with the Procurement Officer must be made
via the e-Sourcing portal only. Except where otherwise directed in these
Instructions, Tenderers must not contact any person in relation to this
competition other than the Procurement Officer or, if nominated, their
designated deputy. The name of any designated deputy will be confirmed in
writing.
1.1.5 Tenderers are to identify a single point of contact in their organisation to
communicate with the Procurement Officer. The name and email address of
the contact are to be provided within one week of the Invitation to Tender.
1.1.6 The tender must be treated as private and confidential. Tenderers should not
disclose the fact that they have been invited to tender or release details of the
tender documents, other than on an "in confidence" basis to those who have
a legitimate need to know or whom they need to consult for the purpose of
preparing the tender. Tenderers should not release information concerning
the invitation to tender and/or the tender documents for publication in the
press or on radio, television, screen or any other medium.
1.1.7 Under the Freedom of Information Act 2000, Public Contracts Regulations
2006 (as amended) and the Environmental Information Regulations 2004
(EIR) the Highways Agency may be obliged to disclose information relating to
the tender process including any tenders received.
1.1.8 Under the Cabinet Office Efficiency Reform Group’s Guidance Note dated
December 2010 entitled “Transparency – Publication of New Central
Government Contracts”, the Highways Agency is obliged to publish the
responses to this tender and the provisions of any contract let pursuant to it,
excluding only information which is exempt from disclosure pursuant the
Freedom of Information Act 2000. The Highways Agency’s initial view is that
the only materials likely to be excluded from publication on this basis are as
follows :
 Part B of the Quality Statement

Tender Issue, Revision 0 Page 3 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

 CVs for the persons listed in the key staff schedule

 Build-ups of the prices in the activity schedule with a resource cost
schedule (but not the total prices)
 Build-ups of the fee percentages and the Working Areas overhead
percentage (but not the total percentages)
1.1.9 Tenderers are invited to request that certain information is not disclosed or
published if to do so would prejudice their legitimate commercial interests or
is otherwise exempt from disclosure under the Freedom of Information Act
2000. Requests for non-disclosure under the Freedom of Information Act
2000 must accompany the tender and include:
 Clear and substantive justification
 A time limit when any confidential information could be disclosed
The terms of any confidentiality agreement would, if requested, be available
for disclosure. Any request by the Tenderer under this paragraph is for
information only and will not be taken into account in the tender assessment
process, nor will it form part of any contract between the Highways Agency
and the Tenderer.
1.1.10 Tenderers must advise the Highways Agency if
 their ownership or the ownership of any member of their tendering
consortium (or their parent company) changes, or
 any organisation involved in the preparation of this contract is
acquired by them or by any member of their consortium (or an
associated company).
If the Highways Agency considers that a change in ownership on either
ground referred to in this paragraph has created a potential conflict, the
Highways Agency may exclude a conflicted Tenderer from the tender
assessment. If excluded, the Tenderer will be notified by the Procurement
Officer.
1.2. Documents

1.1.11 Instructions relating to documentation are contained in Annex A.

1.1.12 Any drawings, prints, specifications, data, calculations and analyses issued to
Tenderers in connection with this tender remain the property of the Highways
Agency. All such information issued to Tenderers may only be used for the
purpose of tendering. Such information should not be disclosed to persons
unconnected with the tender and should be returned to the Highways Agency
on completion of tender procedures. These provisions apply equally to
drawings and other information supplied for the purpose of the tender, the
property rights of which vest in a third party.
1.3. Tender communications

1.1.13 Any queries from Tenderers regarding the tender documents must be made
via the e-Sourcing portal on the form supplied in Annex B and sent to the
Procurement Officer via the e-Sourcing portal no later than 14 days prior to
the date of return of tenders.

Tender Issue, Revision 0 Page 4 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

1.1.14 All tender queries made in accordance with paragraph 1.3.1 will be answered
by the Procurement Officer. If any answer requires a change to the tender
documents then a tender amendment will be issued.
1.1.15 Tender amendments are changes to the tender documents that are made in
writing by the Procurement Officer and issued to all Tenderers. Only in
exceptional circumstances will tender amendments be issued after tenders
have been submitted. In such circumstances, the Procurement Officer will
notify all Tenderers of the required action.
1.1.16 Highways Agency officers and their consultants do not have the authority to
make any change to the tender documents except through a tender
amendment issued by the Procurement Officer. If a statement is made at any
meeting that a Tenderer considers is not in accordance with the tender
documents then the Tenderer must refer the matter to the Procurement
Officer as a tender query.
1.4. Meetings

1.1.17 Tenderers will have the opportunity to meet the members of the Highways
Agency team at the tender presentation meeting set out below. The
proposed date for this meeting is set out in Annex C. Other meetings will not
normally be held unless specifically required to deal with a matter raised by a
tenderer
1.1.18 A meeting will be held to explain, discuss and answer questions on the tender
process. During this meeting, the following presentations will be given by the
Highways Agency.
 A presentation on the proposed contract by the HA Project Leader,
identifying and explaining any project specific issues of importance to
the tender submission
 A presentation by the Procurement Officer, setting out the tender
process and timetable
 A presentation on risk, focussing on the tender return requirements
 An explanation of the tender marking system
1.1.19 Tenderers will have an opportunity to ask questions at this meeting. Any
tender queries must be submitted in accordance with the procedure set out
above.
1.5. Inspections

1.1.20 Tenderers wishing to visit any land or property associated with the contract
must notify the Procurement Officer. Liability for any damage or disturbance
caused to such land or property rests with the Tenderer.
1.6. Tender Programme

1.1.21 The tender programme is included at Annex C.

1.7. Cancellation of Tender

1.1.22 If the Highways Agency decides

 to cancel the tender or evaluation process at any stage

Tender Issue, Revision 0 Page 5 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

 not to proceed with any proposal made in response to this Invitation

to Tender or
 not to accept a tender for any reason
the Highways Agency is not liable to reimburse any costs or losses incurred
by the Tenderer in considering or submitting a tender in response to this
Invitation to Tender or otherwise in connection with this competition.

Tender Issue, Revision 0 Page 6 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

2. SUBMISSION OF TENDERS

2.1. General

1.1.23 Tenders and supporting documents must be written in English.

1.1.24 Tenders must be submitted in accordance with the tender documents
including any tender amendments. Tenders must not be qualified or
accompanied by statements or a covering letter that might be construed as
rendering the tender equivocal. Unauthorised alterations or additions must not
be made to any component of the tender documents. The Highways Agency’s
decision as to whether or not a tender complies with these Instructions will be
final.
1.1.25 Tenders not received by the Highways Agency by the tender return date and
time may be excluded from further consideration and returned to Tenderers.
Offers should remain open for acceptance for 180 calendar days from the
tender return date.
1.1.26 The Tenderer must sign and return the Highways Agency
 Fair Payment Charter included at Annex K,
 Anti Bribery Code of Conduct included at Annex L and
 Anti Fraud Code of Conduct included at Annex M
before the Tender can be accepted.
1.1.27 The Form of Tender will be incorporated with the questions on the e-Sourcing
portal, any response in the negative may lead to the rejection of the tender.
The tender should be returned via the Highways Agency e-Sourcing portal for
A138 (Old A12) Chelmer Viaduct Replacement in the volumes set out in
Annex A. Documents are to be in Microsoft Office 2003 format. When
uploading tender submissions upload the electronic files for each volume
separately. No file is to be larger than 20Mbytes. Label each file using the
naming convention Name of tenderer/Volume no/ document title.
1.1.28 Further notes on the contents of these documents are given below.
Volume 1
2.2. Quality Statement

1.1.29 The Quality Statement must follow the structure set out and cover the Items
described in Annex D. The Quality Statement must present each Item in two
separate parts: Part A, the proposed approach to the contract; and Part B,
evidence from previous projects undertaken by the Tenderer to demonstrate
that the proposed approach is likely to be successfully delivered.
1.1.30 The approach to this contract is to be described in Part A of the Quality
Statement in the form of proposals and quality procedures. The proposals are
to consist of material explaining how, if awarded this contract, the Tenderer
intends to Provide the Works. The quality procedures are to set out how the
proposed activities are to be carried out. The quality procedures are required
to be incorporated into the successful Tenderer’s Quality Plan, and are limited
to statements that will become contractual obligations. The evidence in Part B
of the Quality Statement is to consist of verifiable statements showing how

Tender Issue, Revision 0 Page 7 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

the approach proposed in Part A has been developed from the successful
delivery of similar work.
1.1.31 The Quality Statement must not exceed the page limit, which is 25 sheets of
A4 paper (50 sides) for parts A and B combined.
1.1.32 Tenderers may use A3 paper in lieu of A4, but each A3 sheet will be counted
as two A4 sheets. Text must be presented in “Arial” font and be no smaller
than 11 point, single-spaced with the margins set at 2.5cm. Text no smaller
than 8 point can be used for drawings, diagrams and flow charts. The page
limit and font size relate to the entire Quality Statement including, title pages,
drawings, diagrams, flow charts and annexes. The pages of the Quality
Statement must be numbered. Page numbers and other header or footer
information may be included in the margin space
1.1.33 If the submitted Quality Statement does not comply with the submission
requirements then the tender will normally be rejected.
1.1.34 If Tenderers consider that the page limit is insufficient to provide the
information required by these Instructions then a tender query should be
raised. No guarantee can be given that the page limit will be increased.
2.3. Key people submission

1.1.35 Tenderers are to provide an organisation chart and a description of their

intentions for managing the contract together with the key people schedule.
1.1.36 The organisation chart should identify the posts and proposed location of key
people and their teams. The skills, training and experience needed by the key
people should be described. The submission must explain how the Tenderer
intends to fill these posts and must demonstrate that the people named in the
key people schedule meet the stated requirements. Emphasis must be placed
on how these people will use their skills to successfully deliver the Employer’s
objectives
1.1.37 The submission should include the key people schedule in the form set out in
Annex I, listing the key people proposed for this contract, and identifying any
additional posts which Tenderers consider will be critical to the success of the
project. CVs and other evidence that the people identified meet the
requirements for their posts are to be provided for the named key people. The
minimum period of availability is to be given for each named person.
1.1.38 The submission must not exceed the page limit, which is 10 sheets of A4
paper (20 sides), presented in accordance with paragraph 2.2.4 above. The
page limit does not include the key people CVs.
2.4. Methodology statement

1.1.39 The methodology statement is to provide:

a) A programme providing the information required by the contract
to be shown on the first programme.
b) A schedule of the resources planned for the contract in
sufficient detail to identify individual resources and the total proposed
resources for each operation on the programme.

Tender Issue, Revision 0 Page 8 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

c) A method statement for each operation on the programme,

describing the approach proposed for that activity.
d) A register of risks, in the format shown in Annex J, identifying
and describing the risk, to include the estimated effect of the risk on
programme and cost, and describe the actions proposed to avoid or
reduce the risk. It must not include any reallocation of risks.
The statement is to include an assessment of the effect of the proposed
approach on other costs that will be incurred by the Highways Agency.
2.5. Programme

1.1.40 The programme is to be provided on 1 side of A0 paper, and the

accompanying details must not exceed the page limit, which is 10 sheets of
A4 paper (20 sides), presented in accordance with paragraph 2.2.4 above.
2.6. Activity Schedule

1.1.41 A priced activity schedule is to be provided. The activity schedule is located in

Annex N.
1.1.42 The Prices are to be based on the forecast Defined Cost of the work required
for each activity on the Activity Schedule plus the Fee. A tender that is priced
on any other basis will be rejected. A separate activity schedule is to be
provided listing the risk allowances included within the prices.
1.1.43 The Prices should be accompanied by a fully itemised bill of quantities in
accordance with the 'Method of Measurement for Highway Works'
2.7. Resource cost schedule

1.1.44 Tenderers are to provide a resource cost schedule including subcontractors

setting out the Defined Cost plus Fee of the resources included in the
methodology submission. It is to provide unit costs for each resource, the total
cost of each resource, and the total for all resources on each operation on the
programme. Substantiation is to be provided for the costs of the resources,
including detail of the basic and overhead costs of people.
2.8. Financial information

1.1.45 The tender is to include

a) a Fee Schedule for each fee percentage, consisting of a build up of
the fee percentages quoted in the Contract Data, which must follow
the layout shown in Annex G.
b) substantiation of the percentages entered in the Fee Schedules, in
sufficient detail to demonstrate which elements of cost have been
included in the fee percentage. The substantiation must be based on
verifiable costs
c) a build up of the Working Areas overhead quoted in the Contract Data,
which must follow the layout shown in Annex H. This must be
supported by verifiable calculations of the forecast cost

Tender Issue, Revision 0 Page 9 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

2.9. Other information

1.1.46 Every Government Department is required to take suitable precautions to

safeguard its information. Information Assurance is the confidence that
information and communications systems will protect the information they
handle, and will function as and when they need to under the control of
legitimate users. Tenderers are to provide a description of their proposals for
handling information so that the suitability of their proposed Information
Assurance solutions can be assessed.
1.1.47 Tenderers are to submit either
a a certified copy of the Board minutes from the Ultimate Parent
Company clearly and unambiguously confirming that they will enter
into the Parent Company Guarantee when requested, or
b a letter signed by the Company Secretary and a Director (or two
Directors) clearly and unambiguously confirming that they will enter
into the Parent Company Guarantee when requested.
If the Tenderer does not return a certified copy of the minutes or a signed
letter then the tender will be rejected.
1.1.48 In addition to the above, Tenderers must return the other information set out
in Annex A.

Tender Issue, Revision 0 Page 10 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

3. TENDER ASSESSMENT PROCEDURE

3.1. Evaluation Method

1.1.49 The Highways Agency’s assessment of tenders will be carried out in three
stages. In the first stage, the Procurement Officer will check for tender
compliance and panels will judge tender submissions, based wholly on the
contents of the tender submission which must therefore contain all the
information which Tenderers wish to be considered. The second stage will
involve the validation of the quality submission and financial information. The
final stage involves the sustainability check and confirmation of the availability
of key people. A flow chart of the evaluation process is set out in Annex F.
1.1.50 The Financial Assessment Panel and the Quality Evaluation Panel will work
independently and will not have access to each other's assessments until
after the verification of the quality submission and financial information.
1.1.51 The assessors will keep in mind four key questions when reviewing
submissions:
 Confidence: Do the proposed team, organisation and proposals give
reassurance that the Tenderer is likely to deliver a flexible, driven,
well balanced and improving service in a sustained manner meeting
the objectives of the HA?
 Value: Do the proposals provide best value to the HA?
 Risk: Has the submission identified all the risks presented by the
proposal in delivering specified service levels and meeting HA
objectives? What has been put in place to control these risks and
have contingencies been applied where appropriate?
 Collaboration; Do the proposed team, organisation and proposals
give reassurance that the Tenderer is able to work collaboratively to
deliver a continually improving and sustainable service?
3.2. General

1.1.52 An equivocal tender or a tender which does not comply with the tender
documents, including any tender amendments, may result in the tender being
rejected.
1.1.53 The Highways Agency will assess whether the Information Assurance
solutions submitted provide adequate protective security for personal and
confidential information. The Procurement Officer may refer any concerns to
the appropriate Tenderer, and unless the Tenderer is able to demonstrate
that its proposals can be relied on, the tender will be rejected.
1.1.54 The Highways Agency will assess whether adequate resources are identified
to provide confidence that the Highways Agency’s CDM responsibilities can
be adequately met. The Procurement Officer may refer any concerns to the
appropriate Tenderer, and unless the Tenderer is able to demonstrate that its
proposals can be relied on, the tender will be rejected.
1.1.55 Clarifications are statements requested from Tenderers by the Procurement
Officer to remove any ambiguity from tenders. Clarifications will be recorded
in writing. If a clarification provides information not requested by the

Tender Issue, Revision 0 Page 11 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Procurement Officer then this information will not be accepted and may lead
to the rejection of a tender.
3.3. Quality Marking

Quality Statement

1.1.56 A Quality Evaluation Panel will mark the Quality Statement. The Panel will
determine which Quality Statement provides the Highways Agency with the
most confidence that the Employer’s objectives will be delivered and continual
improvement achieved. In marking the Quality Statement, the panel will take
into account all the material supplied in Volume 1.
1.1.57 The Quality Evaluation Panel will award marks for the assessment criteria
using the marking system given in Table 1 of Annex E and determine the total
mark by completing Table 2 of Annex E.
1.1.58 Any uncertainty over the meaning of the Quality Statement will be removed
via clarifications before the Quality Evaluation Panel complete their marking.
No further requests for clarifications on the Quality Statement will be made
after the marking is completed.
Key people submission
1.1.59 The Quality Evaluation Panel will mark the key people submission. The
Quality Evaluation Panel will award marks for the assessment criteria using
the marking system given in Table 4 of Annex E
Methodology submission
1.1.60 The Quality Evaluation Panel will assess the methodology submission. The
Quality Evaluation Panel will award marks for the assessment criteria using
the marking system given in Table 5 of Annex E.
Combining the Quality Scores
1.1.61 The Quality Statement will be given marks out of a maximum of 100. The key
people submission and the methodology submission will each be given marks
out of a maximum of 10. These marks will be normalised to a mark out of 100.
1.1.62 The minimum quality requirement for this contract is to reach a threshold of
60 in the normalised mark for each part of the quality submission. A tender
that has failed to achieve the minimum quality requirements may not be
considered further in the tender assessment, and if excluded, the Tenderer
will be notified by the Procurement Officer. If the tender is not excluded the
normalised marks achieved by the tender will be used in subsequent
calculations.
1.1.63 The marks for the Quality Statement, key people submission and
methodology submission will be combined in the ratio of 55:15:30 respectively
after they have been normalised. The combined mark will be rounded to one
decimal place
1.1.64 The tender with the highest total mark will be given a score of 100. The score
of other Tenderers will be calculated by deducting from 100 one point for
each full percentage point by which their mark is below the highest.

Tender Issue, Revision 0 Page 12 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

3.4. Financial Scoring

1.1.65 A Financial Assessment Panel will determine a price for each Tenderer who
has not been excluded on the following basis:
a) the total of the Lump Sum prices in the activity schedule;
b) an allowance for compensation event assessments including the
tendered fee percentages
1.1.66 Any uncertainty over the meaning of the financial submission will be removed
via clarifications before the Financial Assessment Panel complete their
marking part of their assessment.
1.1.67 The lowest price will be given a score of 100. The score of other Tenderers
will be calculated by deducting from 100 one point for each full percentage
point by which their price is above the lowest.
1.1.68 The estimates, allowances and adjustments in 3.4.1 b) above are estimates
for tender assessment purposes only and there is no guarantee that work to
assessment values will be carried out during the contract period.
3.5. Combining quality and financial scores

1.1.69 The quality and the financial scores will be combined in the ratio 60:40
applied to the quality and financial scores respectively. The combined score
will be rounded to one decimal place.
1.1.70 An affordability review of the highest scoring tender, will be carried out. If the
price of the highest scoring tender is considered to be unaffordable then the
Highways Agency may:
a revise the scope and request all Tenderers to submit new tenders,
or
b cancel this Invitation to Tender and evaluation process
1.1.71 The tender with the highest total score and an affordable price will be
validated. In the event of more than one Tenderer with the same total score,
these tenders will be validated.
1.1.72 The Procurement Officer will inform Tenderers whether or not they have been
identified for validation. Such notifications must not be taken as inferring
acceptance of any tender.
Stage 2
3.6. Validating the Quality submission

1.1.73 The Quality Evaluation Panel will validate Part B of the Quality Statement to
determine whether the Tenderer can substantiate its Part B evidence.
1.1.74 The Quality Evaluation Panel will not reconsider the Part A information or
scores, nor will they seek or permit any further clarifications in relation to the
Quality Statement. The tender cannot be modified during the validation
stage, and therefore Part B marks cannot be increased above those
assessed in Stage 1.
1.1.75 In validating Part B of the Quality Statements, the Quality Evaluation Panel
will use any practical means, and may approach any person or organisation

Tender Issue, Revision 0 Page 13 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

named in the Quality Statement as part of the validation. The validation may
include meetings with the Tenderer.
1.1.76 The Quality Evaluation Panel will interview the key staff identified in the
tender. The key staff will be required to demonstrate their understanding of
the project requirements and show how their skills and experiences have
been applied to successful outcomes on previous relevant projects. Records
of training, skill achievement and past experience are to be produced if
requested by the Panel.
1.1.77 The Quality Evaluation Panel will reconsider their Part B marks and the marks
for the key staff in the light of their findings. If lower marks are awarded then
the overall scores will be re-calculated.
3.7. Validating the financial information

1.1.78 The Financial Assessment Panel will validate the tender to check that the
costs included in the Contractor’s resource cost schedule are representative
of the likely costs to be incurred.
1.1.79 The Financial Assessment Panel will establish whether the Tenderer has
satisfactorily demonstrated that the Working Areas overhead percentage
calculations and the build up in the Fee Schedule demonstrate that the
figures stated are representative of the likely costs to be incurred.
1.1.80 As part of this validation the Financial Assessment Panel may ask to be
provided with original evidence that demonstrates that the allowances made
are based on costs actually incurred. The team may wish to interview
appropriate accounting staff to provide the level of satisfaction required.
1.1.81 Failure to provide satisfactory evidence to support any part of this aspect of
the tender may result in the tender being rejected.
3.8. Determining the Preferred Bidder

1.1.82 Following validation, if the Tenderer’s score remains the highest, then that
Tenderer becomes the Preferred Bidder. If
 validating the financial information has led to the rejection of
the tender, or
 the Tenderer’s score has been changed, and is no longer the
highest score,
an affordability review will be carried out on the tender with the highest total
combined score. If this tender is considered to be affordable then the tender will
be validated
This process continues until a Tenderer with a validated score higher than other
bidders has been identified. This Tenderer becomes the Preferred Bidder.
1.1.83 The Procurement Officer will inform Tenderers whether of not they have been
identified as the Preferred Bidder. Such notifications must not be taken as
inferring acceptance of any tender.

Tender Issue, Revision 0 Page 14 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Stage 3
3.9. Sustainability check

1.1.84 The Contract must operate as a viable business for both partners. The
Highways Agency seeks to have the required level of service at an affordable
cost, whilst providing a reasonable profit for the Tenderer. Excessively low or
high tenders will be subject to scrutiny, and may be rejected if considered not
sustainable over the contract period or not affordable.
1.1.85 The Quality Evaluation Panel and the Financial Assessment Panel will jointly
review the material submitted with the tender to verify that the resources
proposed are likely to deliver the level of service set out in the quality
submission.
1.1.86 During this stage of the assessment, the Quality Evaluation Panel and the
Financial Assessment Panel may seek further clarification from the Preferred
Bidder to enable them to understand the submission better. These
clarifications may be sought in writing or at a meeting called for that purpose.
1.1.87 Failure to provide satisfactory evidence to support any part of this aspect of
the tender may result in the tender being rejected.
3.10. Team Confirmation

1.1.88 Following validation and before a contract is awarded the Highways Agency
will require confirmation that the team offered in the key people schedule is
available to start the project.
1.1.89 Failure to offer a compliant team may lead to the rejection of the tender.

Tender Issue, Revision 0 Page 15 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

4. NOT USED

Tender Issue, Revision 0 Page 16 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

5. TENDER AWARD

5.1. General

1.1.90 The Highways Agency reserves the right not to proceed with any proposal
made in response to this invitation.
1.1.91 Tenderers will be given feedback on their tender shortly after the assessment
has been completed.
1.1.92 Prior to the award of any contract the Preferred Bidder must provide evidence
that insurance required by the contract is in place.
1.1.93 The contract will be executed as a Deed under seal.
1.1.94 Details of the Contract Award will be published in the Official Journal of the
European Union.
1.1.95 Any drawings and other documents not returned with the tender should be
deleted from the Tenderer’s computers and all hard copies destroyed.

Tender Issue, Revision 0 Page 17 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

ANNEXES

Tender Issue, Revision 0 Page 18 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex A - Tender Documents

1 List of Documents with Invitation to Tender

1.1 The following documents are included with this invitation:-

Volume 1
1. Instructions for Tenderers (IFT) including:
a. Highways Agency Motivating Success Toolkit (Version 5)
b. Highways Agency Fair Payment Charter (IFT Annex K)
c. Highways Agency Anti Bribery Code of Conduct (IFT Annex L)
d. Highways Agency Anti Fraud Code of Conduct (IFT Annex M)
e. Data handling Policy
f. Records Policy
2. Contract Data Parts 1 and 2
3. Form of Tender
4. Works Information

Volume 2: Specification Appendices

Refer to Specification Appendix 0/3

Volume 3: Drawings
Refer to Specification Appendix 0/4

Volume 4: Site Information

Please refer to the Excel version of this annex for the Site Information
Index.

1.2 The following parts of the tender documents are included in a form to allow
electronic preparation of the information required:-
1. Tender Query form (Annex B)
2. Form of Tender
3. Contract Data Part 2
4. Form for Fee schedule (Annex G)
5. Form for build up of Working Area Overhead (Annex H)
6. Form for key people schedule (Annex I)
7. Form for Risk register (Annex J)
8. Activity Schedule (Annex N)

2 NOT USED

Tender Issue, Revision 0 Page 19 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

3 List of Document to be returned with the Tender.

3.1 The following documents are to be completed and returned by Tenderers with
their Tenders in volume 1:
1. The Quality Statement.
2. The key people submission, including the key people schedule.
(Annex I)
3. The methodology statement.
3.2 The following documents are to be completed and returned by Tenderers with
their Tenders in volume 2:
1. Completed Form of Tender.
2. The completed Contract Data part 2.
3. A priced activity schedule. (Annex N)
4. The Prices should be accompanied by the following:
 Fully itemised bill of quantities in accordance with the Method of
Measurement for Highway Works';
 Estimating build-ups for every item, showing resources with prices,
usage/output and waste; also details of gang build-ups if
composite items/assemblies are used;
 Estimate Resource Summary, showing the total quantity and
waste used for each resource;
 Copies of full sub-contract quotation;
 Copies of full materials quotation;
 Copies of full plant hire quotation;
 A full build-up to temporary works.
5. A resource cost schedule.
6. Three copies of the completed Fee Schedule, one for the direct, one
for the subcontracted and one for the Associated Company fee
percentage.
7. A build up of the Working Areas overhead quoted in the Contract
Data.
8. A description of the proposed Information Assurance solution.
9. Summary of relevant insurance policies including certificates where
appropriate.
10. Statement undertaking responsibility for dealing with insurance claims
or parts of such claims within the excess amount.
11. Status of registration under the Construction Industry Scheme
Regulations.
12. Statement confirming their willingness, if awarded the contract, to
accept the appointment and duties of principal contractor.
13. Evidence of their competence to carry out the role of principal
contractor.
14. Completed Fair Payment Charter. (Annex K)

Tender Issue, Revision 0 Page 20 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

15. Completed Anti Bribery Code of Conduct (Annex L)

16. Completed Ant Fraud Code of Conduct (Annex M)
17. Any request for non-disclosure under the Freedom of Information Act
18. A certified copy of the Ultimate Parent Company Board Meeting
minutes or letter signed by the Company Secretary and a Director (or
two Directors) clearly and unambiguously confirming that they will
enter into the Parent Company Guarantee when requested.
19. Risk Register (Annex J)
3.3 When uploading tender submissions, the following naming convention should
be used for each document: Name of tenderer/volume no/document title

Annex B - Tender Query Form

Tender queries are to be entered in electronic form as below via the Highways
Agency e-Sourcing portal. All details are to be included on this form, and no further
attachments are to be sent. One question should be asked for each row; insert
additional rows if necessary.

Please refer to the Excel version of this annex for the Tender Queries Submission
Sheet.

Annex C - Indicative Tender Period Timetable

Item Activity Date

1 Issue Tender Documents 26/02/2014
2 Tender Presentation 05/03/2014
3 Last Date for Tender Queries 01/04/2014
4 Tender Return 09/04/2014
5 Marking of the quality submission part A and B 14/04/2014 – 05/06/2014
6 Financial Scoring 14/04/2014 – 04/06/2014
7 Tenders for validation identified 06/06/2014
8 Validating the quality submission 03/07/2014 – 07/07/2014
9 Validating the financial information 03/07/2014 – 07/07/2014
10 Preferred Bidder identified 08/07/2014
11 Confirm availability of team with Preferred
08/07/2014
Bidder
12 Minded to Award Notification 11/07/2014 – 17/07/2014
13 Standstill period 18/07/2014 – 29/07/2014
14 Award Contract 30/07/2014
15 Inaugural Meeting 04/08/2014

Tender Issue, Revision 0 Page 21 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex D - Quality Statement Requirements

The Quality Statement is to be presented in two separate parts (A and B), as

described below. The first part is to provide the Part A statements and the second the
Part B evidence.

Part A – Proposed Approach

Part A is to set out the proposed approach to deliver the contract objectives by
maximising performance against each performance criterion listed in table 1 below
and delivering continual improvement.

The proposals and procedures in Part A are to set out how the people, partnering
and processes to be implemented on the contract will control the identified risks.
Under each risk heading, the statement should deal with the issues listed.

Tenderers should also identify any additional issues affecting the listed risks which
they consider will be critical to the success of the project, and set out how they
propose to manage them.

Part B – Evidence to Support the Proposed Approach

Part B is to identify the evidence from other projects to provide the Highways Agency
with confidence that the proposed approach is likely to be successfully delivered.

The evidence is to consist of verifiable statements showing how the approach

proposed in Part A has been developed and has contributed to the successful
delivery of similar services.

A schedule outlining details of all projects used to provide evidence should be

included at the end of Part B. It should include the following details:

 Project title
 Client
 Value
 Contractor or designer
 Role played
 Dates

Structure of statement

Table 1 below identifies the performance criteria taken from the Highways Agency
motivating success toolkit, and lists certain risks to meeting those criteria. Tenderers
should take account of the material in this toolkit for guidance as to the issues which
need to be considered in addition to any contract specific issues listed. The Quality
Statement must be structured to follow the headings and sub headings in the table
below, using the numbering system in the table, and cover each numbered risk
separately.

Some issues may be common to several risks; if this is the case then duplication
should be avoided by the use of cross references.

Tender Issue, Revision 0 Page 22 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Table 1 – Quality Statement structure

Risk item Issues

1. Client Satisfaction – Product

1.1 To construct a scheme which satisfies HA  Management of construction operations so as to fully recognise constraints
requirements in construction of working within a floodplain, a conservation area, working adjacent to a live
carriageway, and the environmental mitigation works;
 Access for construction personnel and vehicles on a site split by the River
Chelmer with only access / egress from one point onto Chelmer Village Way;
 Maintaining access for local residents during the works;
 Advising local residents and businesses on TM stages;
 Co-ordinating road space bookings, TTRO and conflicts with other works on
the local network.

1.2 Not Used

2. Client Satisfaction – Service

2.1 To maintain effective engagement, communication  Managing effective communications during all phases of the Contract,
and collaboration with the Project Manager, including interaction with the HA’s Project Team, Essex County Council
Integrated Project Team, NDD, NetServ and other (ECC), Chelmsford City Council (CCC) and key stakeholders reporting on
HA directorates progress, programme, costs, social impacts and other matters as necessary.
 Managing effective communications during all phases of the Contract,
including effective engagement with NDD-East Area 6 Asset Support
Contractor (ASC) and ECC on maintenance strategy on existing Viaduct.
 Managing effective communications during all phases of the Contract
including effective engagement with HA NetServ, ECC, CCC on any further
departures from standard and environmental mitigation strategy.

Tender Issue, Revision 0 Page 23 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Risk item Issues

2.2 Not Used (Combined with 2.1)

2.3 To maintain effective engagement, communication  Establish early engagement with relevant supply chain partners so as to
and collaboration with the Contractor’s supply progress the scheme to maximise the works undertaken prior to the first
chain - tier 2 and tier 3 winter period in the Construction programme when the River Chelmer has
the potential to flood and the groundwater table rises.

2.4 Not Used

2.5 To maintain effective engagement, communication  Develop effective strategy for maintaining good communication and
and collaboration with external stakeholders managing customer care and relations with a range of stakeholders,
including the following:
o Private and public landowners upon whose land the proposed Viaduct
will be built;
o Chelmsford City Council in the discharge of planning conditions;
o Essex County Council who will be adopting the Viaduct upon completion;
o Essex Waterways who has jurisdiction over the river and its navigation;
o Statutory Undertakers whose assets will be impacted;
o Peer Delivery Partners;
o Local community;
o Local stakeholders whose public transport, public footpaths and roadway
links will be affected by the works.

2.6 Not Used

2.7 To manage sustainability effectively during  Use of materials, reducing waste, value engineering, reducing carbon
Construction footprint and environmental management.

2.8 To manage risk and opportunities effectively  Creating and maintaining a working risk/opportunities register and effective
implementation of identified mitigation.

Tender Issue, Revision 0 Page 24 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Risk item Issues

o There is a risk of National Grid placing constraints on construction in the

vicinity of the 12” high pressure gas main that crosses beneath the
northern section of the existing and proposed Viaduct alignments.
National Grid will be diverting the 12” HP main. Details are anticipated to
be available in April 2014.

2.9 To manage The Reliability Measure within the

constraints agreed with NDD or the Project
Manager

2.10 To facilitate continuous improvement through  Scope to introduce innovation to key elements of the scheme such as
innovation earthworks and traffic management.

3. Right first time

3.1 To deploy and manage quality processes  Ability to successfully develop and implement a fully integrated quality
system compliant with ISO9001, ISO14001 and BS OHSAS 18001 covering
construction and handover stages, which assists to minimise the impact of
the Viaduct’s construction on the local stakeholders and to avoid
unnecessary delays and environmental incidents.

3.2 To demonstrate effectiveness of quality processes

through independent audit  Ability to implement audit processes and systems that:
o Improve processes and reduce waste;
3.3 To ensure that key information and actions do not o Avoid reworking;
require avoidable rework

Tender Issue, Revision 0 Page 25 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Risk item Issues

3.4 To minimise and manage non conformance or o Manage and minimise non compliance; and
defects in Construction o Implement effective resource planning.

3.5 To measure the effectiveness of resource

management in Construction

4. Cost

4.1 To complete the phase/scheme within the scheme

budget  Ability to maintain and provide clear cost and accounts information for
measurement of work done;
4.2 (Combined with 4.1)  Agreement of system processes for effectively and efficiently handling early
warnings and compensation events;
4.3 To achieve the Cost Performance Index (CPI)  Accuracy in monthly cost forecasting covering entire life of contract;
target for the Development and Construction  Measurement of financial performance;
phases
 Ability to demonstrate value for money to HA.
4.4 To forecast reliably for the current financial year

4.5 To ensure that Compensation Events are priced

accurately in Construction

5. Time

5.1 To complete the phase/scheme within the agreed

timescale  Ability to manage scheme programme and to demonstrate the measures
that would be taken to ensure the overall construction programme will not be
5.2 (Combined with 5.1) compromised – with particular emphasis on addressing the issues identified
in Risk Item 2.3 and 2.8, above.
5.3 To achieve the Schedule Performance Index (SPI)

Tender Issue, Revision 0 Page 26 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Risk item Issues

target for the Development and Construction

phases.

5.4 To ensure timely response to key information and

action required by HA and other relevant
stakeholders within the period.

6. Health & Safety

6.1 Not Used

6.2 To manage health and safety processes in  Is main Contractor registered and compliant with a pre qualification scheme
Construction. which is a member of SSIP (Safety Schemes in Procurement) (Stage 1
Assessment);
6.3 To confirm effectiveness of Health & Safety  Experience, health and safety competence and resources of the key
management through independent audit. members of staff who will be allocated to the project (Stage 2 Assessment).

6.4 To minimise reportable accidents (RIDDORs) in  Develop clear methods of working and safety procedures for the following
Construction. site activities which demonstrate that the management of health and safety
issues has been considered:
6.5 To ensure safety of road users and members of • General site works;
the public in connection with Temporary Traffic • Tie in points from the works to the A138;
Management and signing in Construction. • Temporary closures of the public footpaths adjacent to and traversing the
construction area;
• Temporary closures of the river navigation;
• Management of contractors supply chain; and
• Allowing blue light emergency access across the existing Viaduct during
temporary Viaduct closures.

Tender Issue, Revision 0 Page 27 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Tender Issue, Revision 0 Page 28 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex E - Quality Assessment

The quality submissions will be marked using the assessment standards in Tables 1,
4 and 5.

Marks for the Quality Statement will be awarded for each of the assessment criteria
set out in table 2. The assessment criteria are equally weighted. The mark given for
each assessment criterion will be the lower of the individual marks for Part A and
Part B.

The mark is a measure of the Highways Agency’s level of confidence that the
Tenderer will deliver the project objectives and continually improve. The higher the
total mark, the lower the risks to delivery and the more confidence the Highways
Agency will have that best value will be delivered. To illustrate this point, the
relationship between the Part A and B marks and the risks to delivery of are shown in
Table 3

Tender Issue, Revision 0 Page 29 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Table 1:
Marks awarded for Approach

How well does the proposed approach demonstrate an

Proposed understanding of the project objectives and address the
Mark
Approach main management and technical risks relating to the
project?

The approach fails to demonstrate an adequate understanding

Weak of the project objectives and fails to address adequately the 1-4
main management and technical risks
The approach demonstrates an adequate understanding of the
Acceptable project objectives and covers the main management and 5-7
technical risks to an acceptable standard
The approach demonstrates a good understanding of the
project objectives. It deals fully with the main management and
Good 8-9
technical risks and provides for delivering continual
improvement over the life of the project
The approach has been tailored specifically to suit the project
objectives, uses innovative approaches to deal
Excellent comprehensively with the main management and technical 10
risks, and is likely to maximise performance against Key
Performance Indicators and deliver continual improvement

Table 1:
Marks awarded for Evidence

How well does the evidence from previous projects

Supporting
provide confidence that the proposed approach is likely to Mark
Evidence
be successfully delivered?
There is little evidence that the proposed approach has been
Weak 1-4
influenced by experience on other projects
There is an adequate level of evidence that the proposed
Acceptable approach has been developed as a result of successful 5-7
experience on other projects
There is substantial evidence that the proposed approach has
Good been developed from other projects using formal continual 8-9
improvement processes
There is substantial evidence that the approach has been
developed using continual improvement processes, which are
Excellent 10
routinely used to develop approaches and deliver the
objectives successfully on all projects.

Tender Issue, Revision 0 Page 30 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Table 2: Assessment of the Quality Statement

Quality assessment criteria Part A Part B Lower

Marks Marks of Mark
A and B
Approach Evidence
Client Satisfaction – Product
1.1 To construct a scheme which satisfies HA
requirements in construction

Client Satisfaction – Service

2.1 To maintain effective engagement,
communication and collaboration with the
Project Manager, Integrated Project Team,
NDD, NetServ and other HA directorates
2.3 To maintain effective engagement,
communication and collaboration with the
Contractor’s supply chain - tier 2 and tier 3
2.5 To maintain effective engagement,
communication and collaboration with
external stakeholders
2.7 To manage sustainability effectively during
Construction
2.8 To manage risk and opportunities
effectively
2.9 To manage The Reliability Measure within
the constraints agreed with NDD or the
Project Manager
2.10 To facilitate continuous improvement
through innovation

Right First Time

3.1 To deploy and manage quality processes

3.2  To demonstrate effectiveness of quality

thru processes through independent audit
3.5  To ensure that key information and
actions do not require avoidable rework
 To minimise and manage non-
conformance or defects in Construction
 To measure the effectiveness of
resource management in Construction

Tender Issue, Revision 0 Page 31 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Quality assessment criteria Part A Part B Lower

Marks Marks of Mark
A and B
Approach Evidence

Cost
4.1  To complete the phase/scheme within
thru the scheme budget
4-5  To achieve the Cost Performance Index
(CPI) target for the Development and
Construction phases
 To forecast reliably for the current
financial year
 To ensure that Compensation Events
are priced accurately in Construction

Time
5.1  To complete the phase/scheme within
thru the agreed timescale
5.4  (Combined with 5.1)
 To achieve the Schedule Performance
Index (SPI) target for the Development
and Construction phases.
 To ensure timely response to key
information and action required by HA
and other relevant stakeholders within
the period.

Health & Safety

6.2  To manage health and safety processes
thru in Construction.
6.3  To confirm effectiveness of Health &
Safety management through
independent audit.
6.4  To minimise reportable accidents
thru (RIDDORs) in Construction.
6.5  To ensure safety of road users and
members of the public in connection with
Temporary Traffic Management and
signing in Construction.

Subtotal

Total mark (Subtotal x 100/24)

Tender Issue, Revision 0 Page 32 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Table 3: Relationship of delivery risk to Part A and Part B Marks

Minimal
Risk
10

Low
9

Risk
Evidence – Part B marks

8
7

Medium
Risk
6
5

High
4

Risk
3
2

1 2 3 4 5 6 7 8 9 10

Approach – Part A Marks

This chart identifies the relationship between Part A and Part B marks, and the
perceived risk to the Highways Agency from a tender submission. A Mark is
awarded for the proposed approach given in Part A. Part B gives the level of
confidence that the approach set out in Part A will be delivered. Thus the Part A
mark is the highest that can be scored.

Tender Issue, Revision 0 Page 33 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Table 4 – assessment of key staff submission

How well do the training, skills and experience

requirements for the posts identified in the key staff Mark
schedule meet the needs of the contract?

The training, skills and experience requirements are not

Weak 1-4
sufficient to deliver the Employer’s objectives

The training, experience and skills requirements are sufficient to

Acceptable deliver the Employer’s objectives and the people named in the 5-7
key staff schedule meet the stated requirements

The approach to filling the posts in the key staff schedule has
been well developed, and the named people have adequate
Good 8-9
ability to achieve continuous cost reductions and deliver the
Employer’s objectives
The proposed team have demonstrated that they can work
together and collaboratively with the Employer to deliver the
Excellent 10
Employer’s objectives and to achieve significant and continuous
reductions in cost resulting in savings on the Employer’s budget

Table 5 - Assessment of methodology statement

How well do the proposals meet the contract requirements

and demonstrate an understanding of the risks to the Mark
work?

The approach has not considered fully the requirements of the

Weak contract and fails to demonstrate appropriate cost and risk 1-4
control.

The proposed resources and programme are adequate for the

Acceptable methodology described, and risk management procedures are 5-7
acceptable.

The proposals show a well thought out balance between the

Good resources required to carry out the work and the resources and 8-9
approach proposed to mitigate the risks to the work.

The proposals include specific project initiatives which give a

Excellent 10
high confidence of completing the work and minimising risks.

Tender Issue, Revision 0 Page 34 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex F - Determination of Successful Tender

Flow Chart showing the Tender evaluation process

Action by:

Quality Financial
Procurement
Evaluation Assessemnt
Officer
Panel Panel

Open tenders
Issue information to Panels

Stage 1

SEPARATION OF
Mark quality submissions Determine financial score

PANELS
Check tender compliance – if non-
compliant rectify or reject tender
Report to Procurement Report to Procurement
Officer Officer

Combine quality and price and

identify Tenderer for validation

Stage 2 Validate part B evidence and SEPARATION OF

Validate financial information
key staff submission PANELS
Notify tenderers of validation
status
Report to Procurement Report to Procurement
Officer Officer

Determine if financial information

acceptable, review quality/ price
and identify Preferred Bidder

Stage 3

Notify Tenderers of Sustainability assessment

Preferred Bidder

Report to Procurement Officer

Confirm key people availability or

identify proposed changes

Review any proposed

changes for suitability and
acceptability

Record any changes and carry

out contract award procedures

Tender Issue, Revision 0 Page 35 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Worked Example

Quality assessment

Assume 5 tenderers have been marked for quality as follows:

Mark for
quality key people
Tenderer statement submission methodology
       
A 60 7 8
B 63 5 4
C 83 9 9
D 71 7 7
E 85 8 9

These marks are normalised to:

Normalised mark for

quality key people methodolog
Tenderer statement submission y
       
A 60 70 80
B 63 50 40
C 83 90 90
D 71 70 70
E 85 80 90

Tenderer B’s mark is less than 60 in at least one of the quality submissions and is
therefore not considered further.

Combining the normalised marks gives the total score for each
Tenderer

Proportion of normalised mark

quality key people
statement submission methodology Total combined Quality
Tenderer (55%) (15%) (30%) mark score
           
A 33.0 10.5 24.0 67.5 79
 
C 45.7 13.5 27.0 86.2 100
D 39.1 10.5 21.0 70.6 82
E 46.8 12.0 27.0 85.8 100

Tender Issue, Revision 0 Page 36 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Financial assessment

Assume the tendered prices are as follows, converted to a financial score

Financial
Tenderer Price score
   
A 27,001,585 100
     
C 31,136,455 85
D 30,021,033 89
E 29,854,676 90

Combined scores

The final score is given by combining quality and financial scores

Proportion of score
Quality Financial
Tenderer score (60%) Score (40%) Total score
       
A 79 100 87.4
 
C 100 85 94.0
D 82 89 84.8
E 100 90 96.0

Tenderer E has the highest score and is validated.

Tender Issue, Revision 0 Page 37 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex G - Proforma for Fee Schedule

1. The fee percentages inserted in Contract Data Part Two by the Tenderer is to
be supported by the details in the following table.
2. Where a listed constituent of fee cannot be separated then “Included” is
inserted. It must be made clear in which other constituent of the fee the
constituent is included.
3. Other constituents can be separately listed, and a separate explanation of
these is to be provided.
4. Three copies of the Schedule are to be provided; one for the subcontracted
fee percentage covering the Fee on subcontracted work subcontracted to an
Associated Company, a second for other subcontracted work, and a third for
the direct fee percentage
5. Note that in this contract clause Z21 deletes bonuses and incentives and
severance related to work on this contract from the Schedule of Cost
Components. Therefore these components of cost should be included in the
Fee.

(Please refer to the Excel version of this annex for the Fee Schedule Proforma).

Annex H - Proforma for Build up of Working Areas Overhead Percentage

1. The working areas overhead percentage inserted in Contract Data Part Two
by the Tenderer is to be supported by the details in the Build up of Working
Areas Overhead Percentage Fee Proforma.
2. Where a listed constituent of fee cannot be separated then “Included” is
inserted. It must be made clear in which other constituent of the fee the
constituent is included.
3. Three copies of the Schedule are to be provided; one for the subcontracted
working areas overhead percentage covering the Fee on subcontracted work
subcontracted to an Associated Company, a second for other subcontracted
work, and a third for the direct working areas overhead percentage.

(Please refer to the Excel version of this annex for the Build up of Working Areas
Overhead Percentage Fee Proforma).

Tender Issue, Revision 0 Page 38 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex I - Form of Key People Schedule

Tenderers should identify the key people for the listed posts, and add any further key
people. The minimum period of availability of each member of staff must be stated. A
CV for each person should be included. The maximum length of CV is 2 sides of A4
paper. The CV should emphasise the key skills relevant to this particular project.

(Please refer to the Excel version of this annex for the Key People Schedule).

Annex J - Form of Risk Register

Tenderers should describe the action proposed to deal with the risks included in the
Risk Register by the Project Manager. Tenderers should also identify additional risks
for the project and describe the action proposed to deal with the additional risks. Add
lines as required.

(Please refer to the Excel version of this annex for the Risk Register).

Tender Issue, Revision 0 Page 39 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex K – Fair Payment Charter

Tender Issue, Revision 0 Page 40 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex L – Anti Bribery Code of Conduct

Highways Agency Anti Bribery Code of Conduct

The Highways Agency, working with its suppliers in good faith and in a spirit of mutual
trust and respect, is committed to meeting the principles of anti bribery, as enacted in
the Bribery Act 2010 and Ministry of Justice guidance.
The Commitment
As a supplier to the Highways Agency we confirm that we will meet the commitments
set out below and will embed the principles throughout our supply chain.
1. We are committed to ensuring that our business operates with the utmost integrity.

2. We, and those employed by us will not:

 Offer, promise, pay or provide bribes* to any person

 Request, agree to accept or receive bribes
 Offer hospitality to Highways Agency staff that would breach the
requirements of Annex A
 Commit any act of bribery that would cause the Highways Agency to be in
breach of any anti bribery laws

3. We are committed to having robust procedures and controls in place within our
business to minimize the risk of bribery with the aim of preventing bribery and confirm
that we:

 Have a zero-tolerance of bribery offences throughout our organisation;

 Conduct risk assessments to identify and monitor potential bribery risks;
 Adopt due diligence measures to vet and approve third parties performing
services on our behalf;
 Have clear, practical and accessible policies and procedures to address
potential risks of bribery, and to prevent bribery;
 Provide education and awareness to all our employees on anti bribery
 Have a mechanism in place to allow employees to report potential bribery
issues in confidence and have a process to deal with reports protecting the
reporting individual;
 Deal effectively with any occurrences of bribery; and
 Act at all times in good faith, impartially and in accordance with a position of
trust.

4. We agree to:

 keep accurate and up to date records showing all payments made and
received and all other advantages given and received and permit the
Highways Agency to inspect those records as required; and
 immediately notify the Highways Agency of any breach of paragraph 2 above.

Tender Issue, Revision 0 Page 41 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

* A bribe for this purpose being the provision of any financial or other advantage to
encourage or induce that person to perform their functions or activities improperly or
to reward that person for having already done so. Bribes can include money, gifts,
hospitality, entertaining, commissions, expenses, reciprocal favours, political or
charitable contributions, or any direct or indirect benefit or consideration.

Company name Representatives name Signature

…………………. …………………………. ……………………

Position Date

………………………….. ……………………

Annex A

Offer no -

 Gifts other than low-value items such as diaries or calendars (up to £10
in value). Calendars, diaries or other small items of office equipment may
be offered and accepted but the gift must bear the company's name or
insignia and can legitimately be regarded as being in the nature of
advertising material
 

 Benefits and/or hospitality and / or entertainment such as cocktail

parties, meals, receptions, presentations and conferences; and also
invitations to social, cultural and sporting events

 overnight accommodation and travel to and from a venue at which an

event is being held

Tender Issue, Revision 0 Page 42 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex M – Anti Fraud Code of Conduct

Highways Agency Anti Fraud Code of Conduct

The Highways Agency, working with its suppliers in good faith and in a spirit
of mutual trust and respect, is committed to working fairly, honestly and with
integrity and transparency. The Highways Agency does not tolerate any form
of fraud.

Fraud is a dishonest act, through false representation, failure to disclose

information or abuse of position, with the intent of causing a gain for self, or
loss to another.

Fraud does not necessarily result in direct or immediate financial benefit for
the individual(s) committing fraud but may cause a loss and/or a negative
reputational impact to another.

The Commitment

As a supplier to the Highways Agency we confirm that we will meet the

commitments set out below and will embed the principles throughout our
supply chain.

1. We are committed to ensuring that our business operates with the utmost
integrity.

2. We, and those employed by us, will not commit any fraudulent acts or carry out
any of the following acts which could amount to fraud including, but not limited to:

 Submission of false or inflated claims or invoices for payment or

reimbursement;
 Intentional distortion of financial statements or other records;
 False or fraudulent financial reporting or making false or fictitious entries
concerning accounts, equipment or supplies;
 Forgery or alteration of any documents such as cheque, bank draft or any
other financial documents including destruction or removal of records;
 Impropriety in the handling or reporting of money or financial transactions;
 Theft or misappropriation of assets or funds;
 Disclosure of confidential information to third parties without authority for
personal gain; and
 The payment of excessive prices or fees where they are not justified.

3. We agree to:

 Keep accurate and up to date records showing all payments made and received and
all other advantages given and received and permit the Highways Agency to inspect
those records as required; and
 Immediately notify the Highways Agency of any breach of this Code.

Tender Issue, Revision 0 Page 43 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Company name: Representative’s name: Signature:

…………………… ………………………… ......................

Position: Date:

……………………….. ……………….

Tender Issue, Revision 0 Page 44 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement
Engineering and Construction Contract Instructions for Tenderers

Annex N – Activity Schedule

Please refer to the Excel version of this annex for the Activity Schedule.

Note: Costs should be allocated to the activities to facilitate monthly reporting of

costs.

The Prices should be accompanied by:

 Fully itemised bill of quantities in accordance with the ‘Method of
Measurement for Highway Works';
 Estimating build-ups for every item, showing resources with prices,
usage/output and waste; also details of gang build-ups if composite
items/assemblies are used;
 Estimate Resource Summary, showing the total quantity and waste used for
each resource;
 Copies of full sub-contract quotation;
 Copies of full materials quotation;
 Copies of full plant hire quotation;
 A full build-up to temporary works.

Tender Issue, Revision 0 Page 45 of 45 February 2014

A138 (Old A12) Chelmer Viaduct Replacement