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Typical Abbreviated Checklist For Tender/Offer Revalidation Post-Tender/Award
                                                                                                                                                       Examples of savings
   Ref       Area         Topic                Area                      Revalidation measures must include the bare minimum below                                              Year
                                                                                                                                                             made
  1   A   Price        Validity      Period                    Ask for extension if expired; require requote if necessary.                            Details to be provided   TBA


  1   B   Price        Rates         Works items - accuracy    Check 20% of those items making 80% of value for accuracy if time permits; ask for     Details to be provided   TBA
                                                               labour and plant hours estimate if not provided for each such major area or item
                                                               of work.
  1   C   Price        Rates         Works items -             Make sure same work items are not priced differently, to avoid contractor              Details to be provided   TBA
                                     consistency               choosing higher rates for additions and lower ones for omission.

  1   D   Price        Rates         Works items -             Check if flight, insurance, taxes, travel and accommodation costs are paid for again   Saved more than $5 million for
                                     duplication               in prelims even if allowed for in labour rate build-up.                                one recent client when I
                                                                                                                                                      discovered the redundant
                                                                                                                                                      payment in lump sum prelim
                                                                                                                                                      items on top of the Schedule of
                                                                                                                                                      Rates for works. 2012
  1   E   Price        Prelims       Mobilisation, recurring   Retain lump-sum for mobilisation and demobilisation items; convert recurring           Details to be provided   TBA
                                     and demob costs           costs to unit rates subject to a not-to-exceed quantity each. Refer to item 5d)
                                                               below.
  1   F   Price        Provisional   Allowance for carve-out   Set up provisional sums for those undefined work, or even those later works if         Details to be provided   TBA
                       items         under item 5c) below      unsure of contractor’s performance. This will motivate them to deliver those early
                                                               works in order to be given the provisional works.

  2   A   Schedule     Baseline      Definition of minimum     Require a minimum level of details in the baseline programme, compliance with          Details to be provided   TBA
                                     level of details          required WBS and required clarity in the contractor's allowance for float and
                                                               contingency/risk like weather etc.

  2   B   Schedule     Baseline      Period update and         Make submission and approval of baseline program its updates and revision a            Details to be provided   TBA
                                     revision                  payment item;
                                                               Ensure that no payment entitlement if submission failed for time and
                                                               quality/detail compliance.
  3   A   Man-         Base          Correlation with the      Check the labour and plant hours when distributed over the period are not at such      Details to be provided   TBA
          hours        estimate      prices and rates for      levels not supported by machine production rate or numbers of plant committed
                       Qty           works items.              by contractors.
  3   B   Man-         Hourly        Correlation with the      Make sure that the hourly rates in SOR for variations are not substantially higher     Details to be provided   TBA
          hours        rates for     prices and rates for      than the average labour or plant rates used in contractor's calculation of the
                       day works     works items.              works items.



Andrew Ng, Project Planning and Contract Strategist/Consultant advising Clients in Resources/Oil & Gas Industries Email: Andrewngadl@Gmail.com                                  Page 1
Typical Abbreviated Checklist For Tender/Offer Revalidation Post-Tender/Award
                                                                                                                                                     Examples of savings
   Ref       Area         Topic               Area                       Revalidation measures must include the bare minimum below                                           Year
                                                                                                                                                           made
  4   A   BG &         Wording      Compliance with client's   Obtain confirmation from contractors that the wording required by the client has     Details to be provided   TBA
          insurances                specific requirement       been fully understood and accepted by their issuers.

  5   A   Contract     Key          Min qualification and      Remove any possibility of contractor claiming full costs of personnel off site, or   Details to be provided   TBA
                       personnel    attendance on site.        those covering other projects (offsite) despite present onsite.
  5   B   Contract     Liquidated   Recover damages            Power to recover damages if LD clause fails.                                         Details to be provided   TBA
                       damages      through LD clauses and
                                    other provisions.
  5   C   Contract     Carve out    Items for preliminaries,   Ensure company has the power to not only take out scope of work without              Details to be provided   TBA
                       clause       provisional sums and       explanation or reasons, but to award to other parties without referring or
                                    works under the            compensating the contractors.
                                    contract
  5   D   Contract     Prelims      Payment on delivery        Require clear cut definition of recurring items and their rates, and their payment   Details to be provided   TBA
                                    only.                      only upon verification of actual delivery or occurrence of such items;
                                                               Provide company power to adjust or withdraw items after payment/certification.




Andrew Ng, Project Planning and Contract Strategist/Consultant advising Clients in Resources/Oil & Gas Industries Email: Andrewngadl@Gmail.com                               Page 2

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Sample Checklist For Validation Of Price And Offers Received From Contractors

  • 1. Typical Abbreviated Checklist For Tender/Offer Revalidation Post-Tender/Award Examples of savings Ref Area Topic Area Revalidation measures must include the bare minimum below Year made 1 A Price Validity Period Ask for extension if expired; require requote if necessary. Details to be provided TBA 1 B Price Rates Works items - accuracy Check 20% of those items making 80% of value for accuracy if time permits; ask for Details to be provided TBA labour and plant hours estimate if not provided for each such major area or item of work. 1 C Price Rates Works items - Make sure same work items are not priced differently, to avoid contractor Details to be provided TBA consistency choosing higher rates for additions and lower ones for omission. 1 D Price Rates Works items - Check if flight, insurance, taxes, travel and accommodation costs are paid for again Saved more than $5 million for duplication in prelims even if allowed for in labour rate build-up. one recent client when I discovered the redundant payment in lump sum prelim items on top of the Schedule of Rates for works. 2012 1 E Price Prelims Mobilisation, recurring Retain lump-sum for mobilisation and demobilisation items; convert recurring Details to be provided TBA and demob costs costs to unit rates subject to a not-to-exceed quantity each. Refer to item 5d) below. 1 F Price Provisional Allowance for carve-out Set up provisional sums for those undefined work, or even those later works if Details to be provided TBA items under item 5c) below unsure of contractor’s performance. This will motivate them to deliver those early works in order to be given the provisional works. 2 A Schedule Baseline Definition of minimum Require a minimum level of details in the baseline programme, compliance with Details to be provided TBA level of details required WBS and required clarity in the contractor's allowance for float and contingency/risk like weather etc. 2 B Schedule Baseline Period update and Make submission and approval of baseline program its updates and revision a Details to be provided TBA revision payment item; Ensure that no payment entitlement if submission failed for time and quality/detail compliance. 3 A Man- Base Correlation with the Check the labour and plant hours when distributed over the period are not at such Details to be provided TBA hours estimate prices and rates for levels not supported by machine production rate or numbers of plant committed Qty works items. by contractors. 3 B Man- Hourly Correlation with the Make sure that the hourly rates in SOR for variations are not substantially higher Details to be provided TBA hours rates for prices and rates for than the average labour or plant rates used in contractor's calculation of the day works works items. works items. Andrew Ng, Project Planning and Contract Strategist/Consultant advising Clients in Resources/Oil & Gas Industries Email: Andrewngadl@Gmail.com Page 1
  • 2. Typical Abbreviated Checklist For Tender/Offer Revalidation Post-Tender/Award Examples of savings Ref Area Topic Area Revalidation measures must include the bare minimum below Year made 4 A BG & Wording Compliance with client's Obtain confirmation from contractors that the wording required by the client has Details to be provided TBA insurances specific requirement been fully understood and accepted by their issuers. 5 A Contract Key Min qualification and Remove any possibility of contractor claiming full costs of personnel off site, or Details to be provided TBA personnel attendance on site. those covering other projects (offsite) despite present onsite. 5 B Contract Liquidated Recover damages Power to recover damages if LD clause fails. Details to be provided TBA damages through LD clauses and other provisions. 5 C Contract Carve out Items for preliminaries, Ensure company has the power to not only take out scope of work without Details to be provided TBA clause provisional sums and explanation or reasons, but to award to other parties without referring or works under the compensating the contractors. contract 5 D Contract Prelims Payment on delivery Require clear cut definition of recurring items and their rates, and their payment Details to be provided TBA only. only upon verification of actual delivery or occurrence of such items; Provide company power to adjust or withdraw items after payment/certification. Andrew Ng, Project Planning and Contract Strategist/Consultant advising Clients in Resources/Oil & Gas Industries Email: Andrewngadl@Gmail.com Page 2