Mcc 1 2003 - Update Executive Summary - at a Glance

MCC1 2003 - UPDATE EXECUTIVE SUMMARY - AT A GLANCE

20 January 2017

1. Introduction

The suite of the standard form ITR, RFT, contract and other documents related to MCC-1 2003 has been significantly amended.

The primary purpose of these amendments has been to address legislation and policy changes, responses to current industry issues, lessons learnt and other matters requiring amendment.

Although the intent has not been to materially alter the existing MCC-1 2003 risk allocation, this has been the unavoidable consequence of the amendments that have been otherwise necessary.

This means that it is critical for anyone using the standard forms (whether within CFI, a PMCA or a registrant or tenderer) to read the entirety of the latest versions of the relevant documents and understand the extent of the amendments.

To assist (but not supplant) this process, CFI has prepared:

(a) a detailed "Update Summary" which identifies each of the amendments made to the various documents relevant to MCC-1 2003; and

(b) this "Update Executive Summary - At a Glance" - which provides a snapshot of the key changes made to the various contract documents.

2. ITR

2.1 Key ITR Changes

In summary, the key changes to the standard form ITR are:

(a) to reflect that an ITR may be published on AusTender;

(b) communication during the ITR process will primarily be by email, although communication by post is still permitted in certain circumstances;

(c) confirmation that the distinction between "information documents" and "addenda" remains, despite AusTender terminology;

(d) various revisions to the evaluation criteria and corresponding schedules;

(e) new information security provisions (including evaluation criteria, ITR conditions and schedule);

(f) new "collaborative contracting" table and other disclosure requirements relating to previous performance;

(g) updated Building Code 2016 provisions (including ITR conditions and schedule);

(h) updated WHS accreditation scheme provisions;

(i) updated Indigenous Procurement Policy (IPP) provisions;

(j) new material change and Defence strategic interest provisions (including ITR conditions, registration of interest form and schedule).

2.2 Other ITR Changes

In summary, the other changes to the standard form ITR include various changes to:

(a) reflect AusTender terminology/use;

(b) the evaluation process and conforming bid requirements;

(d) the schedules (to be submitted by registrants); and

(e) other drafting throughout the ITR.

3. RFT

3.1 Key RFT Changes

In summary, the key changes to the standard form RFT are:

(a) to reflect that the RFT may be published on AusTender;

(b) communications during a tender process will primarily be by email, although communication by post is still permitted in certain circumstances;

(c) confirmation that the distinction between "information documents" and "addenda" remains, despite AusTender terminology;

(d) provision for individual "1-on-1" tenderer meetings to be held at the time of the industry brief;

(e) a two-envelope tender structure, which means that the financial model (Tender Schedule L) and alternative proposal (Tender Schedule M) are submitted in a separate envelope;

(f) new requirements for a minimum resource schedule for each of the Planning Phase and Delivery Phase;

(g) new evaluation criteria (and tender schedules) for quality, information security and IPP;

(h) various other revisions to the evaluation criteria and corresponding schedules;

(i) deletion of the option of letters of acceptance (to award a contract);

(j) updated Building Code 2016 provisions (including provision of a Workplace Relations Management Plan) (including tender conditions and schedule);

(k) new required statement regarding availability, capacity and ability and identifying any matter, risk or thing having a material effect;

(l) new information security provisions (including tender conditions schedules);

(m) new financial viability provisions, including requirements for a solvency statement and other detailed financial information, and a financial viability assessment by an independent financial adviser;

(n) new material change and Defence strategic interest provisions (including tender conditions and schedules);

(o) new IPP provisions (including tender conditions and schedule); and

(p) updated WHS accreditation scheme provisions.

3.2 Other RFT Changes

In summary, the other changes to the standard form RFT include various changes to:

(a) reflect AusTender terminology/use;

(b) the evaluation process and conforming bid requirements;

(d) the schedules (to be submitted by registrants); and

(e) other drafting throughout the RFT.

4. Contract - MCC-1 2003

4.1 Key Contract Changes - Conditions of Contract

In summary, the key changes to the standard form Conditions of Contract are:

(a) Delivery Phase Agreement to replace Planning Phase Agreement and amendments reflecting this change throughout Conditions of Contract;

(b) deletion of the option of letters of acceptance (to award a contract);

(d) updating of the insurance provisions;

(e) a requirement to design the Works in accordance with any preliminary design solution;

(f) requirement for design certificates at time of submission of design documentation;

(g) clarification of the contractor's entitlement to extra costs for latent conditions;

(h) clarification of the contractor's entitlement to extra costs for valuable, archaeological or special interest items;

(i) amendments to reflect WHS requirements (including updated WHS accreditation scheme provisions);

(j) clarification of the contractor's entitlement to extra costs for changes in law;

(k) amendments to the project plan and document requirements;

(l) deletion of the requirement for maintenance during DLP (by moving it into the special conditions);

(m) new requirements for quality assurance;

(n) updated payment provisions including new conditions precedent to payment; revised payment statement requirements; revised payment requirements; updated NSW legislation requirements for payment of workers and administrators;

(o) amendment to the default and termination provisions;

(p) various amendments to clarify contractor's entitlement to any adjustment to the work fee and reimbursable costs;

(q) new provision for reimbursable costs;

(r) provision for all notices to be issued by email, with notices in relation to disputes or termination also to be delivered by hand or sent by prepaid express post;

(s) new IPP provisions;

(t) updated Building Code 2016 provisions (including compliance with the Workplace Relations Management Plan);

(u) new extension of time provision;

(v) new information security provisions;

(w) new material change and Defence strategic interest issue provisions;

(x) new financial viability provisions; and

(y) new estate information provisions (including a detailed schedule setting out all information requirements).

4.2 Special Conditions

The key changes to the special conditions are:

(a) they are now embedded in annexure 2 of the Conditions of Contract;

(b) new conditions dealing with hazardous substances, asbestos; ACM and GHS;

(d) insertion of provisions for maintenance during the DLP (from the Conditions of Contract); and

(e) new clause relating to fast track engagements of design team.

5. Collateral Documents

5.1 Key Collateral Documents Changes

The Collateral Documents have generally been updated to reflect the changes to the underlying suite.

L\321443291.3