2017 Education Series – NCHCA/CEO/City of Ottawa February 24, 2017 Tender Closing Day 2017 Education Series – NCHCA/CEO/City of Ottawa February 24, 2017

Tender Closing Day We have seen from the other presentations how a construction project moves through the early stages of conception and design. This presentation will be an overview of closing a “hard-bid tender” and the steps required to get to closing day. Deciding on which tender to close Preparing for the day Closing Day This would also include inventory management systems like: Structures (bridges and culverts) Pavement (annual road resurfacing program)

Go or No GO for a tender Utilizing the CAM, the City can develop a short and long term capital program; along with the corresponding budgets. When developing a Capital Budget it is important to recognize and align all projects with the Corporation’s Strategic Plan and Council’s long term objectives or goals.

Selecting the Tender to Close – Factors to consider Is it in our market? Is it in our geographical region? Do we have the required resources? Do we have the required man power Reviewing schedule – can we complete as required? Risk Items (Labour, Equipment, Material, Contractual) Is this a project we can win? City of Ottawa has adopted a Comprehensive Asset Management (CAM) Policy and Strategy. Comprehensive Asset Management (CAM) is an integrated business approach, involving the different disciplines of planning, finance, engineering, maintenance and operations to effectively manage existing and new infrastructure. The objectives of this integrated approach to infrastructure management are to maximize benefits, reduce risk and provide safe and reliable levels of service to community users in a socially, culturally, environmentally and economically conscious manner. The CAM Program encompasses all aspects of the management of each asset through its lifecycle in that it: Integrates with the Corporate Planning Framework to complement the strategic objectives of the City, other key business systems, legislation, and regulations; Creates a framework that establishes the mechanism for a clear line of sight between our Asset Management program and Corporate objectives; and Commits to providing approved levels of service for present and future customers and communities, in the most effective and efficient way, through the planning, design, construction, acquisition, operation and maintenance, renewal, and disposal of assets.

Tender Selection A typical tender period for a hard bid estimate can be two to four weeks. Assign to one lead estimator and support estimators as required. Cost to estimate from industry stats can be $4-$7k per million.

Planning the Estimate Review tender for deliverables Order bonds and request Insurance quote and any other required documentation for tender package Ensure all documentation associated with tender is assembled Assign the estimating team (estimator, operations and any external support – temp design) 20% Rule – debt to asset cannot exceed 20% - this is why is it so important to monitor assets, both new and depreciating vs. debentures and other forms of financing.

Building the Bid/Tender Take-Off Schedule Request for Quotations – Subcontractors and Suppliers Constructability review(s) Bid the project Analyze bid Review bid and modify review(s) I think most of you are familiar, in some way shape or form, with our Supply Management system at the City – take particular note of ‘Preferential Pricing’.

Day Before Tender: Ensure Bid Check List is complete Tender form filled in and executed properly complete with bonds and associated documents. Review lead letters and complete closing reviews Back-up estimate and produce hard copy Review tender package and closing process with tender delivery person. Lock tender items in estimate system that can be locked (done on larger tenders)

Reasons Tender can be rejected: Tender not sealed or signed properly Not completing all tender item units and prices Forgetting to include bond Not acknowledging all Addendums on Tender Form Not including addendum acknowledgement forms where required Late delivery of tender whether by hand, fax, electronic deposit or e-mail.

Closing Day - Steps Implement all bid steps previously described Check for all addendums Receive quotes and enter into bid system for analysis Follow up with subs/vendors on phone to receive quotes and clarify questions on quotes. Award subs and vendors in system Locking tender items in system and completing tender form Finalize all tender items prior to close

Closing Day – Expect the Unexpected Internet Failure Bidding Software Failure Power Failure Fax Failure Tender Runner encounters issues (flat tire, cell phone battery, parking, traffic)

Common Errors Lack of transparency Focusing on strengths alone, ignoring weaknesses Last-minute changes Under estimating labour and equipment costs Pursuing every project

Recap of Road to Closing Day Go or No Go Decision “Plan the Plan” – Set up Estimate “Plan the Work” – All the items required to close “Work the Plan” – Tender Closing Day