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Building and Construction Industry Code

Question:

Discuss about the Building and Construction Industry Code.

Answer:

Introduction:

The submission of the offers for a house construction project involves a number of issues that tests the core engineering and project management capabilities. Tendering in this case include supplies that are required in completing the construction works, not as a means of just following selecting processes, but also as a mean of honoring construction contracts. Within the aspect of labor clauses guiding the processes of tendering, this project will be laid down under the definitions of general terms and specific terms of agreements between the employer, the client, the contractor, and the other parties involved (Fulford & Standing, 2014).

As a matter of tender specifications, the construction of the building is associated with the ministry of home affairs under the building and construction in the commonwealth government funded work version.  This tender application definition has four main segments including the conditions of the tender, the tender itself having the conditions of the contract, as well as the tender specifications. These parts are discussed in this document, stipulating the specifications of the housing construction project, the roles, the schedule, planning, designing, as well as the budgeting for purposes of efficient project management.

The house construction project also involve the specification of goals and the plans such as the drawings, the scope, scheduling, budgeting, as well as making of decisions that gives head starts in the achievements of the whole project and its participants. The house construction project also serves the function of encouraging the resource effectiveness by acquiring a workforce and the necessary equipment that is critical in completing the project within the schedule stipulated (Zutshi & Creed, 2015). Through the project management team, the numerous operations conducted are performed through a legitimate coordination of the management contracting, planning, construction, as well as designing and estimation of the whole process. Lastly, the efficient development of a solid communication between the coordinating thread of the project is a requirement to avoid any unnecessary conflict that may arise in the site.

It is important to note that house construction project management is a complicated field with fundamental principles that are applicable to all involved.  The starting point is the agreement between the client (employer) and the contractor under the specific terms of agreement followed by the bids of the interested construction managers putting their bids to complete the project within a specified period of time.

In this project, the ethical aspects involve the moral principles guiding the construction conduct both within and outside the site. These aspects begin at the procurement stage and run through to the completion of the project. These aspects include procurement principles such as fairness, transparency, as well as integrity among others. More than that, they include honorable behaviors in all aspects of the profession, inculcating trust and confidence, especially in the acquisition process, as well as upholding the standards and policies of the organization and relevant legislations. If possible, this includes avoiding any conflict of interest.

Studies shows that the ethical codes in construction industry does not operate on itself or in vacuum but requires a bold coordination and relationship between the industrial players, this will only bear substantial fruit in the event that long term and collaborative efforts are put together in the whole process (Brown & Loosemore, 2015). Noting that professional ethics is a high profile topic on the construction industry currently, the project management in the construction understands the benefits of promoting ethical codes and principles as a matter of continuity, integrity, promoting the life of the society, among many others. Also noting the extents of the problems caused by the unethical construction practices and behaviors in the construction industry, this project welcomes the enforcement activities in Australia including welcoming the investigations, examinations, and coordination in ensuring a proper balance between the construction process and ethics (Evans, 2017).

Therefore, this construction project will be carried out in an environment that respects transparency, confidentiality, due diligence, impartiality, integrity, loyalty and respect of all the rules and regulations as stipulated in the contract and legislations as far as the Australian construction regulations are concerned.

The tender document stipulates what the government or the employer needs to purchase to complete the constriction project involving the process selections and other appointments (Brook, 2016). With clear and accurate estimations and specifications, the tender document becomes the general specifications of purchasing the services, goods, and other building works, based on the preparations made.

Tender selection begins with the notification stage of the tender through the evaluation process of the bidders to the tender. Based on the project and the Australian government tenders, this process is done based on the cost of the government and the company. The eligibility of these costs must be done in order to reduce the total value that have been quoted by the bidders as well as for leaving space for input tax credit (Brook, 2016).  It also involves the analysis of the registered and unregistered bidders and the exclusivity of the rates quoted by the bidders. Complacency as far as tax is concerned of the relevant Australian Construction Acts, rules and regulations being made under the supply contracts and construction specifications, among others.

Calling for tenders is an important stage in tendering whereby the employer (the tenderer) wishes to receive bids for the construction project, noting that the successful bidder will be expected to complete the project at a specific period of time from the date of commencement (Fulford & Standing, 2014). Therefore, a call for tender is a significant process, known as a special procedure, for generating competing bids or offers from different bidders in obtaining the award of the construction, supply, or any service contract in the whole project.

In Australia, especially within the sphere of Australian Construction industry, there are three methods of tendering. The first one is the open tendering whereby the employer advertises the proposed project and allows as many contractors interested to make bids for documents as possible (Brook, 2016). The other method is the selective tendering method in construction, whereby the employer advertises the project and invites a selected list of contractors who are then invited to bid for the project. Lastly, the third tendering method is the negotiated tendering method in construction whereby the negotiated tenders are obtained by the employer inviting contractors of his choice to submit the price for the project. This method is advantageous in construction projects that are urgent and have tight deadlines.

The inquiry process of tendering is key for obtaining the relevant information in regards to the tender by an interested bidder.  Basically, inquiries are made on the expressions of the process such as legal process, request for proposal, quotation request, expression of interest, invitation process, among others (Fulford & Standing, 2014). In this case, therefore, the inquiry process of the tender involves four phases such as the preparation of the inquiry, issuing the inquiry in awaiting the tenders or proposals, evaluation of the tenders, as well as negotiation and placing the order or contract of the tender.

Amendment of Tender Document

Before issuing a complete tender document, it is prudent for the Principals to ensure that they are complete. Where amendments are required, they should be provided as an addendum to all tenderers. Consideration should be given to extending the tender period when an addendum is issue.

Tender, or rather proposal receptions for the bidders is a schedule process that has its expected starting date and the last date to receive the tenders. This process is open for all interested bidders to submit their interests using the stipulated process, rules, and regulations. At the end of the period, at the closing stage of the tenders, it is expected that all the interested bidders have placed their bids (Fulford & Standing, 2014).

The evaluation process of the tenders involves assessing the bidders’ proposal under the guidelines given to obtain one bidder that meets the requirement and expectations among the offers for an award of the tender through a ranking principle. The ranking process is done in order for priority with regard to the qualitative assessment done against specified criteria for evaluation. This is also done in regard to the tender price that has been adjusted based on the errors and miscalculations (Brook, 2016). Lastly, at least 2 to 3 tenders that provide the best value for money for the ministry are selected. Among them, the tender that provides the best overall value to the Principal is selected upon confirmation that the tenderer is able to deliver as specified (Fulford & Standing, 2014). This is done through a transparent and fair principle to avoid mistake in the construction process and to ensure obtaining the best deal for the ministry.

After the evaluation process of the bidder is done, the selected bidders begin the negotiation process whereby terms and agreements are discussed by a team of construction experts, such as the schedule, the budget, the planning, and the supplies, among others.  When agreement is made, the successful bidder is selected.

Genuine belief:  genuine belief is the fruit of trust, integrity, and confidentiality. As such, the tenderer is obliged not to accept or provide secret commissions. They are not to accept any incentive that provides the contracts to other contractors or suppliers that would end up at putting the Principal at a disadvantage point. More than that, they should not enter into any improper commercial arrangement that will compromise the Principal or the project (Fulford & Standing, 2014).

Return of document and their evaluation are discussed above and involve submitting the tender bids for evaluation process based on the best principles that give value for money for the Principal.

This is where any information relating to the examination, clarification, evaluation, and comparison of Tenders and recommendations for the award of a Contract shall not be disclosed to Tenderers or any other persons not officially concerned with such process until the award to the successful Tenderer has been announced (Loosemore, Lim, B. T. H., Ling, F. Y. Y., & Zeng,  2018).

Nature of Contract: The contract is a government construction project befitting the standard of the construction principles and guides between the employer and the tenderer.

Service of Notices: The notice of service after award of tender is a document for giving information to the parties involved in the construction contract.

Assignment and Subcontracting: Awarding of the tenders to begin working on behalf of the ministry or the employer in this case may or may not include the subcontracting clause. However, upon agreement, through service notices, subcontracting agreements may appear.

Statutory Requirements: The statutory requirements are applicable in the design, construction, procurement, management of health and safety at work, planning approvals, among others (Brook, 2016).

Examination and Testing: These involve the assessment of the tender document, examination of the previous bidding data analyses, and testing the integrity among other qualities of the tenderer.

Progress and Programming of the Works: This is where scheduling, planning, and management of the overall project takes place starting with the start time to the completion of the whole project.

Suspension of the Works: There are reasons for suspension of the project such as breach of contract, natural disasters, among others upon an agreement by all the parties involved.

Delay or Disruption Costs: The costs incurred when certain resource supplies are delayed or disrupted

Defects Liability: The suppliers or/and the contractor will be liable for the defects

Certificates and Payments: Payments are done as per the agreement, that may include advance payments or lump sum after which certificate is awarded for future goodwill.

Default or Insolvency and termination: Termination of the contract may occur when the project is complete, or upon an agreement between the parties involved to terminate the contract due to circumstances known to them all.

Customer quality focus: The focus of the employer to obtain a quality work from the contractor. Therefore, through the quality assurance and control team, the Principal may constantly run checks and balances to determine if the contractor is delivering quality services.

Quality leadership: Construction project management requires a quality leadership and management team that work cordially to deliver its mandate as per the agreement. Therefore, the communication flow and network process of the roles is critical at this stage (Fulford & Standing, 2014).

Involvement of people: Consultation with the relevant personnel in ensuring quality is delivered is inevitable in construction project. Therefore, in quality assurance and control, there is need for involvement of people.

Mutual benefit: It is within the interest of all the parties involved to benefit eventually through injections and quality receptions. In a symbiotic atmosphere where the Principal, the contractors, the workers and all the parties involved benefits, it satisfies the principle of mutual benefit.

In Australia, for large construction projects, the work health and safety codes of practice provide the safety management plans and processes (White, 2016). This is due to the fact that construction sites are prone to dangerous accidents and unhealthy situations that require some management plans. Therefore, for purposes of health concerns, it is prudent to acknowledge the governmental input into resolving the situation. The health and safety management plan in this case involves the guide for managing the site health and safety matters. This is in note of the fact that the contractor shall at all times take all reasonable precautions to maintain the health and safety of his personnel.

Safety measurement and evaluation

The evaluation process of the safety measurement begins with the assessment of the mandatory factors that must be present in the health and safety management plan in the construction site. Therefore, the evaluation process begins with the names of the people at workplace for their accountability and roles in specific health and safety responsibilities, the arrangements for consultations, coordination, and cooperation incase such events occurs, as well as the presence of the arrangements for managing such incidences. More than that, the assessment process will examines the site specific health and safety rules and access to information on such rules by the site workers (Loosemore, Lim,  Ling, & Zeng 2018).

Safety and health management plans implementation involves the responsibilities of everyone in the construction site, whereby everyone has the first responsibility to himself or herself as far as safety and health is concerned. There are certain rules and regulations at the construction sites, like putting the correct attires that remains the responsibilities of the workers (Zutshi & Creed, 2015). Therefore, personal negligence should not be condoned. The implementation process of these safety and regulation rules is carried out by supervisors, site management team and the contractor.

In Australia, the codes of industrial construction stipulate that the Workplace Health and safety management plan be prepared by the principal contractor before work commences. Therefore, safety planning must include the provision and maintenance of dangerous chemicals register, safety sheet of data, and storage. The plan must also have the workplace security and public safety regulations, the safe use and storage of plant, as well as the development of the construction project traffic management plan. Workers also have the appropriate licenses and training to undertake the work of construction.

References

Apa, R., & Sedita, S. R. (2017). How (do) internal capabilities and the geography of business networks shape the performance of contractors in public procurement tenders? Evidence from the construction industry. Construction Management and Economics, 35(7), 404-419.

Brook, M. (2016). Estimating and tendering for construction work. Taylor & Francis.

Brown, J., & Loosemore, M. (2015). Behavioural factors influencing corrupt action in the Australian construction industry. Engineering, Construction and Architectural Management, 22(4), 372-389.

Denny-Smith, G., & Loosemore, M. (2017). Integrating Indigenous enterprises into the Australian construction industry. Engineering, Construction and Architectural Management, 24(5), 788-808.

Evans, P. (2017). The building and construction industry code of conduct (WA). Brief, 44(6), 22.

Fulford, R., & Standing, C. (2014). Construction industry productivity and the potential for collaborative practice. International Journal of Project Management, 32(2), 315-326.

Loosemore, M., Lim, B. T. H., Ling, F. Y. Y., & Zeng, H. Y. (2018). A comparison of corporate social responsibility practices in the Singapore, Australia and New Zealand construction industries. Journal of Cleaner Production, 190, 149-159.

Reid, S., & Loosemore, M. (2017, September). Motivations and barriers to social procurement in the australian construction industry. In Proceeding of the 33rd Annual ARCOM Conference, 4–6 September 2017 (pp. 643-651). Association of Researchers in Construction Management: Cambridge.

White, C. (2016). The conditions of practical action: Neoliberalism and sustainability in the Australian road construction industry. Environment and Planning C: Government and Policy, 34(8), 1501-1515.

Zutshi, A., & Creed, A. (2015). An international review of environmental initiatives in the construction sector. Journal of cleaner production, 98, 92-106.

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