skip to navigation skip to content skip to footer

Defence Estate Quality Management System (DEQMS) Davis Langdon Certification Services

 

 

Estate Upkeep - Product Delivery

Alternative Proposals

If, with respect to a Defect or damage to an Estate Element, the Contractor considers that;

  1. the estimate of the works is greater than $10,000. For the purposes of determining whether or not an item of work is less than $10,000 in cost;
  2. an item of work is to be a discrete item of work for an Estate Element of the same trade type and not to be a bundle of two or more items of different trade types; and
  3. cost is to be the direct and actual cost to the Contractor, excluding GST, including on-site and off-site overheads and profit.
  • it is possible to correct the Defect or damage, but not within the Response Time within which it would be required to be corrected;
  • it is not possible to correct the Defect or damage; or here is an alternative to correcting the Defect or damage which offers the Commonwealth greater value for money than correcting the Defect,

Then the Contractor must give the CA a notice setting out the Contractor's alternative proposal within the time frames placed against the work to DEPU-CLAIMS

Following receipt of a notice the CA may, in its absolute discretion, accept the Alternative Proposal and issue a direction to that effect to the Contractor or reject the notice.

The Contractor shall meet with the CA, if required, and;

Provide such further details about its proposal as the CA may require; and undertake genuine negotiations with the CA for the purposes of ensuring that the Contractor's proposal (as negotiated and finalised) provides the Commonwealth with the best value for money reasonably able to be provided by the Contractor.

If approved the contractor will perform the works on the terms of its written proposal including its lump sum price, as negotiated and documented by the CA.

The Alternative proposals described have been included in the Contract for the benefit of the Commonwealth, and the CA has no obligation to accept any alternative proposal notified by the Contractor. The acceptance of any alternative proposal does not of itself entitle the Contractor to Reimbursement. Any claim for reimbursement must be submitted in accordance with the business rules for claiming reimbursement.

Alternative proposal – works over $10,000

If the corrective work is estimated to be greater than $10,000 then a Alternative Proposal to be provided to the to DEPU-CLAIMS detailing a lump sum proposal for performing the over-$10,000 item of work, setting out in detail:

  • the work completed to date to make safe (if applicable)
  • the resources the Contractor would propose to use to deliver the work;
  • a breakdown of the full lump sum, including all costs, over-heads and profit margin;
  • whether or not the Contractor's lump sum proposal is better value for money for the Commonwealth than having the work delivered by subcontractors on a reimbursable basis;
  • the fixed time within which the Contractor will deliver the work;
  • if the work is on Estate Element managed through Performance Based Maintenance or Scheduled Maintenance Services an indication of whether the Contractor will be submitting a reimbursement claim including the level of reimbursement expected, refer Circumstances For Reimbursement; and
  • other matters as deemed appropriate;

Alternative Proposal – Extension of Time

If it is possible to correct the defect or damage, but not within the Response Time within which it would be required to be corrected, the Contractor is to notify the CA using the Alternate Proposal template and provide the following details:

  • the original due date for works to be completed
  • the proposed new date of completion; and
  • the reason for the delay.

Alternative Proposal – Unable To Correct

If it is not possible to correct the Defect or damage the Contractor is to notify the EU PD using the Alternative Proposal template in writing and provide to DEPU-CLAIMS , detailing

  • Estate Element(s) affected;
  • The nature and cause of Defect or damage;
  • Reason for inability to correct Defect or damage;
  • Impact if Estate Element is not replaced including downtime effect on customer, cost of providing redundancy; and
  • Options for replacement including cost.

Alternative Proposal – Value For Money

If there is an alternative to correcting the Defect or damage which offers the Commonwealth greater value for money than correcting the Defect or damage, the Contractor shall using the Alternative Proposal notify DEPU-CLAIMS in writing and provide the following detail:

  • Estate Element(s) affected;
  • The Nature and cause of Defect or damage; and
  • Options for consideration including the anticipated benefit, any additional costs (NPOC) and the pay back period