Procurement and Tendering

Presentation to [NAME OF CLIENT]

[YOUR NAME]

[DATE]

Agenda

1. OAA - Background2. Procurement of Architectural Services3. OAA Model Procurement Documents4. Industry Tendering Practices5. CCDC 2, 2008 Stipulated Price Contract

OAA - BackgroundSelf-Regulating, Self-Governing profession established under the Architects Act.

• OAA governs its members and regulates the practice of architecture in the public interest

• 3,316 architects; 1,385 intern architects; and 140 associates

• Establishes standards of qualification for license• Set standards of practice, performance and conduct and entry

to the profession• Supports profession with tools & resources to ensure

continued competence

Procurement of Architectural Services

How Do We Achieve:

• Engagement of the most suitable consultant(s)

• Long-term savings through reduced life-cycle costs?

• Timely delivery?

• Quality and sustainability?

• Innovation and added value?

• Improved economic, social and environmental quality of life?

• Taxpayer confidence?

TIMELYDELIVERY

FISCAL RESPONSIBILITY

QUALITY &INNOVATION

SOCIETAL NEEDS

The Challenge of Delivering Projects

Opportunities to Improve OutcomeLe

vel of

Influ

en

ce

Time

Construction

Design

Operations &

Maintenance

100%

0%

50%

$ of Opportunities to Improve Outcome

Time

Cos t

of

Mak i

ng

Changes

Construction

Design

Operations &

Maintenance

• Establishing common objectives; agreeing on desired outcome

• Understanding cost-benefit-risk relationships

• Clarifying roles and responsibilities (trusted advisor)

• Selecting the right A/E team for the job (qualifications)

• Determining needed resources (fees and schedule)

Procurement is Key

OAA Model Procurement Documents

• Statement of Qualifications - SoQ

• Request for Proposals - RFP

• Quality Based Selection Guide - QBS• A Guide to Determining Appropriate Fees for the Services of

an Architect• OAA Document 600, 2008 - Standard Form of Contract for

Architect’s Services

• Evaluate and pre-qualify Consultant Team Architects and Engineers (A/E)

• Shortlist of firms proceeding to RFP stage

• Solicit interest from Qualified firms

Step One: S of Q

What’s in the S of Q?

• Project Preliminary Overview• Scope of Services Required• Terms & Conditions of the Contract • Specifics of the SoQ Submission

Requirements• Evaluation Criteria• Details of Evaluation Process

• Document to solicit offers for Consulting Services from Architectural Firms.

• Specific details for RFP will vary from one project to another.

• Content and structure for RFP is critically dependant on the type of services requested

• OAA has created user-friendly template documents to assist Procurement Officer

Step Two – The RFP

What’s in the RFP?

• Project Details

• Terms & Conditions of the RFP phase

• Specifics of the RFP submission reqm’ts

• Proposal and evaluation criteria

• Details of Evaluation Process

• Professionals compete based on qualifications and client’s needs •Client ranks proposals: best service to achieve project objectives• A detailed scope established with preferred proponent: including deliverables• Appropriate fees and schedule: that achieve the client’s objectives• www.oaa.on.ca ‘Selecting an Architect’

How does QBS Work?

OAA Model Procurement DocumentsA Guide to Determining Appropriate Fees for the Services of An Architect

• Nationally endorsed document produced by the Royal Architectural Institute of Canada (RAIC)

• Developed to assist clients and architects in determining appropriate fees

• Design projects vary widely and provisionof services have evolved considerably – fees vary

Sco

pe o

f se

rvic

es

mat

rix

Architecture/

A/E Services are a good Investment

Procurement and Fees

What’s Wrong with the Lowest Price

• Rewards firms for using fewer resources on behalf of the client (e.g. less experienced and less senior staff)

• Penalizes firms with greater appreciation of the client’s needs

• Penalizes firms that accurately anticipate complications or that propose innovation

• Increased cost to client (more staff time and resources)

OAA Document 600, 2008

Standard Form of Contract for Architect’s Services

• Fair and balanced• Industry recognized terms &

conditions - efficient• User friendly and accessible on

OAA web-site• Schedules allow for easy identification and understanding • Current & coordinated with

other industry docs (CCDC 2 etc.)

Best Practices – What’s in it for the client?

The client gets: • Right team for right job

• More realistic schedules and budgets

• A more efficient building

• Fewer change orders and disputes

• Better business relationship between client/consultants/contractors/external agencies

• Better service, better quality & better value for taxpayers

Supply Chain Guide

• Government’s Supply Chain Guideline for Ontario’s broader public sector organizations has meant changes to existing procurement policies and procedures

• The OAA tools evolved to facilitate ease of use and implementation in conjunction with Guideline.

Industry Bidding & Tendering Practices

• Client, with the help of the architect, selects the contractor

• CCDC 23 – A Guide to Calling Bids and Awarding Construction Contracts

• Architect’s responsibilities: “assist and advise the Client in obtaining bids and negotiated proposals and in awarding and preparing contracts for construction.”

• Contract A / Contract B• Preparing Bid Documents• Instructions to Bidders• Bid Form, Contract breakdown• List of subcontractors and prices• List of Bid documents• Contract Requirements

• Calling for Bids• Bid Solicitation• Document Availability• Bid Period and Scheduling• Meetings and Enquiries

• Receiving Bids• Closing date/time• Procedures

• Contract Award

CCDC 2, 2008

Stipulated Price Contract

• Industry recognized construction contract prepared by national joint Committee

• Parties to contract are Client and General Contractor• Architect responsible for administration of the contract,

however not a signatory• CCDC 20 – Guide to use of CCDC 2• Three sections: Agreement, Definitions, General Conditions

+ Supplementary Conditions

OAA/OGCA recommended supplementary Conditions:

• developed in consultation and agreement with the Ontario General Contractors Association (OGCA)

• in alignment with supplementary conditions previously established in consultation with specific owner groups and industry partners.

• OGCA has issued it to their members with the advice that they were developed in consultation with the OAA

• Issued to ensure fair and balanced contract for all• Accessible on OAA and OGCA Web sites• OAA Practice Tip 23.1 provides explanation to each SC