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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.

For works less than $80,000 ex GST, the EMOS is required to submit Part One and Part Two of the AP Form for approval.

For woks greater than $80,000 ex GST, the EMOS is required to initially submit only Part One in order to seek approval of the following:

  • Proposed Solutions/Options.
  • Proposed procurement Method.
  • Estimated Cost.

If DEPU provides the EMOS with approval of the three components in Part One, the EMOS is to fully develop the proposal and submit all Reports, Quotes, Tender Document and Part Two to DEPU.