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#21-05 State Highway Professional Services Contract Proforma Manual (SM030) Issue 9.1 and State Highway Construction Contract Proforma Manual (SM031) Issue 14.1

Published: | Category: Technical advice note | Audiences: Road traffic engineers & consultants, Roading contractors

This note is to advise of updates to the Waka Kotahi NZ Transport Agency (Waka Kotahi) State Highway Professional Services Contract Proforma Manual (SM030) and State Highway Construction Contract Proforma Manual (SM031). 

Purpose

This note is to advise of updates to the Waka Kotahi NZ Transport Agency (Waka Kotahi) State Highway Professional Services Contract Proforma Manual (SM030) and State Highway Construction Contract Proforma Manual (SM031).  Updated documents have been released to be used for all future procurement of professional service contracts and are available for download from the Waka Kotahi website.  These interim updates apply from the date of this notice and should only be used retrospectively by agreement of affected parties and specific approval.

The changes relate to:

  1. accelerating supplier payments
  2. the new Privacy Act 2020
  3. standardising the pandemic claims process
  4. preletting meetings
  5. cost fluctuations.

General information

Waka Kotahi is responsible for managing the state highway system, including planning, funding, design, supervision, construction, and maintenance and operations, to contribute to an effective, efficient, and safe land transport system in the public interest (Land Transport Management Act sections 2, 25 and 95).

The State Highway Professional Services Contract Proforma Manual (SM030) is utilised by Waka Kotahi Transport Services team when preparing tender documents for professional services contracts  and may be used by other road controlling authorities (RCA) if desired.

The State Highway Construction Contract Proforma Manual (SM031) is utilised by Waka Kotahi and external consultants when preparing state highway tender documents for traditional, design and construct, lump sum, alliancing and minor works and physical works construction contracts and also may be used by other RCA.

The processes and procedures outlined in these updates to SM030 & SM031 must be followed by Waka Kotahi for all professional service contract procurements that are undertaken from now on.

Purpose of the changes

The purpose of the manuals is to fulfil the obligations of Waka Kotahi to meet both Government expectations and the duties in the Land Transport Management Act and also to provide organisations with some guidance in developing their own procedures.  It also allows consultants to be more aware of the expectations of Waka Kotahi as an organisation in managing contracts.

The reason for introducing these changes is due to legislative and policy changes in response to changing Government practice.  The Privacy Act requirements are a considered response to new duties from new legislation.  The others are in response to ongoing directions by Government and as a result of the continuing effects of this and any future pandemics.  Finally, the remaining changes have been made to provide clarity on when a preletting meeting will be required and the points for discussion in a preletting meeting, and to amend the cost fluctuations clauses to reflect current business practice.

All changes to SM030 and SM031 were made in consultation with selected internal and external subject matter experts.

Specific changes

SM030 and SM031 have been updated to include the following specific amendments:

Accelerating payments to government suppliers

Improving payment practices, including government payment practices, is a priority for the Prime Minister, the Minister for Small Business, the Minister of Finance, and the Minister of State Services.  Government agencies spend billions every year buying goods and services from third-party suppliers, and as such should take a leadership role in improving payment practices.

As a result, Waka Kotahi will now be ensuring that invoices are paid within 10 working days from the date invoices are entered into the accounts payable systems.  Faster payment will help improve cash flow, leading to increased business productivity and growth. In some cases, such as with SM031, existing contract provisions within the standard contract form already achieve this objective and require no additional amendments.

However, the standard contract form for SM030 (CCCS) requires additional amendment to ensure this objective is achieved.  Documents amended in SM030 include:

  • Short Form Contract Agreement (Appendix B, Fees Expenses and Payment)
  • Standard Form Contract Agreement (Appendix B, Fees Expenses and Payment)

Privacy

On 1 December 2020, new Privacy Act legislation came into force.  As a result, Waka Kotahi contract documents will be updated to ensure they are in compliance with the new requirements.

Documents amended in SM030 include:

  • 01) Short Form Agreement (Special Conditions of Contract – Part B (Other Conditions of Contract))
  • 02) Standard Form Agreement (Special Conditions of Contract – Part B (Other Conditions of Contract))

Documents amended in SM031 include:

  • Appendix A – Traditional (A8, Conditions of Contract)
  • Appendix B – Design & Construct (B4, Conditions of Contract)
  • Appendix E – Minor Works (E1, Closed Contest; E2, Direct Appoint)
  • Appendix H – Early Contractor Involvement (3, Conditions of Contract)

Communicable disease events

In the wake of COVID-19, Waka Kotahi has introduced clauses aimed at providing clarity to the industry and to allow Waka Kotahi to continue to take a consistent approach with any future COVID-19 (and other similar communicable disease event) claims such as delay or in completion of the contract or additional cost to the contractor.

Documents amended in SM031 include:

  • Appendix A – Traditional (A8, Conditions of Contract)
  • Appendix B – Design & Construct (B4, Conditions of Contract)
  • Appendix E – Minor Works (E1, Closed Contest; E2, Direct Appoint)
  • Appendix H – Early Contractor Involvement (H3, Conditions of Contract)

Preletting meeting

The changes relating to preletting meetings are minor in nature and seek to clarify the current process.
Documents amended in SM030 include:

  • 02) Standard Form Agreement (Sections 3.5 -Tender Evaluation Process and 3.9 – Preletting meeting)

Cost fluctuations

The changes relating to cost fluctuations reflect current business practice and seek to bring SM030 in line with the way cost fluctuations are being calculated in practice in the business.
Documents amended in SM030 include:

  • 02) Standard Form Agreement (Section 1.7 – Cost Fluctuations)

Communication plan

The target audience for this notice are Waka Kotahi staff and those external consultants and contractors who assist capital work projects during the business case stage and with the delivery of the design and construction of our capital work project.  Advice of these changes will be promulgated by:

  • This note advising the update to our ESR standard
  • Direct access via the website and intranet
  • Communicated by Waka Kotahi Safe and Sustainable standards Team regional integrators to project and operations teams.

Implementation

The SM030 and SM031  Manuals and their appendices are currently published for use on the Waka Kotahi website and InfoHub. These publications will be updated with the new versions and in addition easy access links to the documents will be added to the Procurement OnRamp page (Word versions) and external Waka Kotahi website (PDF versions).  Users must retrieve the latest version of these documents for all future procurements.

Document review

A general review of the effectiveness of the current Manuals will occur in 2021.

Publication details

Document: State highway professional services contract proforma manual (SM030)
Author: Waka Kotahi NZ Transport Agency – Safe and Sustainable Standards Team
Published: March 2021
Version: 9.1
Found at: https://www.nzta.govt.nz/resources/state-highway-professional-services-contract-proforma-manual/

Document: State highway construction contract proforma manual (SM031)
Author: Waka Kotahi NZ Transport Agency – Safe and Sustainable Standards Team
Published: March 2021
Version: 14.1
Found at: https://www.nzta.govt.nz/resources/state-highway-construction-contract-proforma-manual/

Further information

To submit documents or if you have any questions or feedback, please contact the Senior Procurement Advisor – Procurement Excellence at procurement@nzta.govt.nz using the subject line “Feedback for SM031”.

 

[signed]

David Darwin - Chair, Ratification Group

Vanessa Browne - Delegated Approver