BGA Letter 1 - Quotations & Estimates
Letter to BGA Members
RE: Attaining Quotes & Engaging Cost Consultants
Dear Members of the BGA,
The BGA Board are always looking to stay proactive and provide information where we can, to help support our members to develop solid foundations and procedures when preparing Funding applications through BGA system. This correspondence focuses on how members should attain quotations and or prepare estimates for upcoming applications.
Throughout our time assessing various application we are finding inherit risks when it comes to the estimate of works. Below we have presented some fundamental processes in attaining quotations and or estimates and we have provided some helpful advice to ensure the allowance for such works is covered:
Estimates prepared by Cost consultants (Quantity Surveyors).
Scoping of the project is adequate to prepare a high-level estimate for the works. This may require. Preparation of concept drawings and advice from an Architect or designer to help support the vision and qualify assumptions.
Understand that the BGA process from commencement to award takes over a year and the required escalation contingencies need to be allowed for.
Ensure adequate project contingencies have been factored into the estimate to allow for but not limited to the current market trends, supply chain issues, supply costs etc.
Quotations prepared by Builders to provide a complete works package.
In addition to items noted above
Ensure there is understanding of complete scope of works prepared by the builder.
Understanding the full scope of qualifications and assumptions that the builder has factored into the quotation.
Ensure the quotation captures a full schedule of responsibilities for the client and contractor to confirm what obligations are required from each party and that additional cost obligations for the client are captured in the total estimate including contingencies.
It is useful to attain another quote to ensure competitiveness.
Quotations prepared by Single Trade Contractors (i.e., painting, tiling etc)
In addition to items noted above
Ensure scope of works is clear and concise to ensure completeness on delivery and execution.
Ensure clarity of scope in case other single trade contractors are required.
Quotations prepared by Suppliers (i.e., various plant & equipment etc.)
In addition to items noted above
Ensure the quote includes the complete installation including works required beyond the scope of the supplier.
Ensure appropriate sizing of plant or equipment and understand that there is room for future proofing.
As outlined above this is some advice when preparing submissions, so each application can move forward with some confidence. However please understand that there are some factors involved which effect rises in costs which include but not limited to scope changes or creep, change of contractors / suppliers and expectation of quality and finish. Again, this is where a clear path and a level of consultation with professionals such as Architects, Engineers and Cost Consultants are critical to the process to help inform and provide the depth of assumptions and qualifications to ensure completeness works and to achieve the client’s expectations.
Yours Sincerely
The Northern Territory BGA Board
BGA Letter 2 - building Confidence Report
Letter to BGA Members
RE: Building Confidence Report
Dear Members of the BGA,
In 2017, Building Ministers commissioned an independent expert examination of the compliance and enforcement problems in Australia’s building and construction regulatory systems affecting the implementation of the National Construction Codes.
The resulting Building Confidence Report prepared by Professor Peter Shergold AC and Ms Bronwyn Weir, made 24 recommendations to improve the effectiveness of compliance and enforcement systems in the building and construction industry across Australia. Please refer to Appendix A (at the back) for the full 24 recommendations issued to all Statutory Bodies across the country.
It is here we as the Northern Territory BGA would like to inform our members of such a review and to promote and implement more robust processes when selecting Consultants, Builders, Single Trade contractors and suppliers.
When engaging consultants, they are registered within their statutory bodies. For example, Architects registered with the NT Architects Board.
Ensure all consultants perform their duties accordingly to their respective Government acts.
It is also recommended that consultants are members of their respective professional organisations as these organisations constantly engage with their members and offer Continuing Professional Development (CPD).
Ensure all consultants have and maintain the required insurances appropriate for the project scale and type. It is recommended that each consultant issues their insurance certificates of currencies ensuring record of insurance and compliance with the project typology.
Ensure consultants and contractors engaged present relative experience in the project typology ensuring confidence on delivery and advice given throughout the process.
Builders and contractors must hold the required builder’s license appropriate to the building scale and typology.
Ensure all builders and contractors conform to local Building act requirements.
All builders and contractors to hold and maintain the appropriate insurances as per law to operate to the scale and typology of the build. Builders and contractors must submit their insurance certificates of currencies each time they are engaged.
It is recommended that Builders and Contractors are affiliated with their respective professional bodies ensuring connection to industry and continuing professional development (CPD).
Ensure all builders, contractors and consultants guarantee for any reason they wind up their respective businesses, that the minimum standard of wind-up insurance is maintained throughout the required statutory period.
Single Trade suppliers such as painters, tilers etc. have the required accreditation (professional / manufacturer) for the type of works they offer.
Ensure the suppliers of plant and equipment are accredited resellers and hold the required ability to maintain guarantees and warranties.
As outlined above we have presented some recommendations on when engaging Consultants, Builders, Single Trade contractors and suppliers. This is an opportunity to inform and provide knowledge to our members and to help them develop a more robust process in selecting and engaging professional within our built environment. Please refer to Appendix A below of the 24 recommendations that have come out of the report.
Yours Sincerely
The Northern Territory BGA Board