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