QS Services RFP Final

Expression of Interest/Request for Proposal
Quantity Surveyor Specialist Services
Southern Response Earthquake Services Limited
6 Show Place
PO Box 9052
Christchurch 8049
10 February 2014
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Table of Contents
1.
Background ..................................................................................................................................... 3
2.
QS Services ...................................................................................................................................... 3
3.
Proposal Guidelines ........................................................................................................................ 4
4.
Exclusivity and Term ....................................................................................................................... 4
5.
Request for Proposal....................................................................................................................... 4
6.
Initial short-listing of Respondents (Stage 1) .................................................................................. 6
7.
Due Diligence and Contracting (Stage 2) ........................................................................................ 6
8.
Timeline for Process ........................................................................................................................ 6
9.
Deadline for Stage 1 Responses ...................................................................................................... 7
Appendix 1: Terms .................................................................................................................................. 8
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1. Background
Southern Response Earthquake Services Limited (‘Southern Response’) is the Government owned company
responsible for settling AMI policyholders claims from damage caused by the Canterbury earthquakes that
occurred before 5 April 2012. The main earthquake events occurred in September 2010, February 2011 and
June 2011.
Southern Response has engaged Arrow International NZ Limited (‘Arrow’) as its Project Management Office for
its Repair and Rebuild Program. There is a very close relationship between Southern Response and Arrow and
significant integration between the two organisations.
Southern Response expects to settle 6,878 overcap claims (claims in excess of the Earthquake Commission
natural disaster insurance for residential property) with a direct cost of approximately $1.4 billion, together
with a further 11,000 temporary accommodation claims with a direct cost of approximately $110 million.
Settlement of claims involves an assessment of the damage sustained by a home or the replacement value of a
home which has been destroyed (the ‘Claim Valuation’). The Claim Valuation is undertaken by Arrow.
There is a need engage the service of suitably qualified Quantity Surveyors for the following purposes (the ‘QS
Services’):
1.1. An independent review of some Claim Valuations (the ‘Independent Review Services’) due to:
1.1.1. The complexity of the particular claim, or
1.1.2. The customer disputing the Claim Valuation.
The number of such claims is anticipated to be at least 350.
1.2. A number of disputed claims are anticipated to be heard in court. Southern Response requires the
services of a suitable Quantity Surveyor to act as an independent expert in such proceeding (the
‘Independent Expert Services’).
The number of proceedings is expected to be at least 50.
2. QS Services
The QS Services provided to Southern Response will provide independent Review Services and the
Independent Expert Services which is required to be seen by policyholders and the courts as being
independent, definitive and expert advice. This advice will assist Southern Response to:
2.1. Provide validation or correction of the Claim Valuation thereby assisting the claim settlement
process, or if necessary,
2.2. Provide Independent Expert Services to the Court that Arrow has applied all necessary diligence in
assessing a fair Claim Valuation which has been made available to the policyholder, or providing
comment on the particular valuation.
Respondents to this Expression of Interest/Request for Proposal (‘RFP’) will need to demonstrate the following
capabilities:
2.3. Experience in estimating residential repairs and rebuild values of homes which are the subject of an
insurance claim in Canterbury;
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2.4. Experience and understanding of the unique factors affecting the cost of residential repairs and
construction in the Christchurch market.
2.5. Experience on TC3 type land conditions matching residential foundation Type 2A and 2B of the MBIE
guidance for repairing and rebuilding houses affected by the Canterbury earthquakes
2.6. Capability and willingness to undertake 33% or more of the QS Services.
2.7. In respect of the Independent Review Services, staff assigned to such work will be a full member of
the NZIQS and have at least 5 years experience.
2.8. In respect of the Independent Expert Services, staff assigned to such work will be full member of the
NZIQS and have at least 10 years experience. Staff being a Registered Quantity Surveyor would be
seen as being a benefit.
The contract term for the QS Services will be Annual, commencing 1 April 2014, with the opportunity for two
extensions of 12 months at the election of Southern Response.
We therefore request you respond by submitting a proposal as outlined below.
3. Proposal Guidelines
This RFP is subject to the terms and conditions contained in Appendix 1.
The RFP element of this document represents the requirements for an open and competitive process.
Proposals will be accepted until 28 February 2014. Any proposals received after this date and time will be
returned to the sender. All proposals must be signed by an official agent or representative of the respondent
submitting the proposal.
The sections of this RFP that contain information you must respond to are set out in Part 5 –Request for
Proposal.
The evaluation of the material submitted by respondents will be conducted based on the information provided
in part 5 of this EOI/RFP.
4. Exclusivity and Term
3 applicants are expected to be appointment for the provision of QS Services during the term of the
agreement, however Southern Response reserves the right at its sole discretion to engage further QS Services
providers should it consider there is a need to do so.
5. Request for Proposal
The following information is requested to demonstrate that you have the requisite capacity, expertise and can
provide value for money QS Services. We require you to submit responses/documentation for Questions 5.1
through to Question 5.9.
Commitment to Southern Response
5.1. Please provide confirmation in writing that you agree provide the QS Services described in Part 2
above.
Technical Capabilities
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5.2. The provision of QS Services is technically challenging due to the unique factors affecting the cost of
residential repairs and construction in the Christchurch market, including (but not restricted to):
i)
The inherent difficulties in estimating residential repairs and rebuild values of homes which are
the subject of an insurance claim in Canterbury;
ii)
the costs associated with the diverse foundation requirements in respect of site specific ground
conditions,
iii) estimating residential repairs and rebuild values of multi unit constructions with overlapping legal
titles, and
iv) specific customer entitlements under their individual insurance policy wording.
Please provide details of your expertise and experience that are relevant to the fulfilment of the QS
Services.
Conflict of interests
5.3. An important aspect of the appointment for the QS Services is conflict of interest management.
Insurers to the Canterbury region are competing for scarce building and supply resources to minimise
the claims settlement timeframe. Accordingly, procurement processes and contractual arrangements
are confidential to Southern Response. Selection of the QS Services provider will take into account
any existing or anticipated conflicts of interest and mitigations in place.
Please provide a full list of actual or potential conflicts of interest that may arise from your
appointment as the provider of the QS Services to Southern Response and controls in place mitigating
risk to Southern Response.
Staffing
5.4. It is important to Southern Response that the QS Services provider nominates suitable staff
throughout the term of the agreement.
Southern Response seeks:
i)
Confirmation that in respect of the Independent Review Services, staff assigned to such work will
be a full member of the NZIQS and have at least 5 years experience,
ii)
Confirmation that in respect of the Independent Expert Services, staff assigned to such work will
be full member of the NZIQS and have at least 10 years experience Details relating to other key
staff intended to be used in the provision of the QS Services,
iii) Full curriculum vitas of key staff who will provide the QS Services, and
iv)
Assurances that there will be continuity of key staff intended to be used throughout the term of
the agreement.
Limitation of liability caveats
5.5. Please provide a full list of any caveats on the use of your reports or limitations of liability that you
seek to include in your terms of trade with Southern Response.
Capability
5.6. Please provide detailed information to confirm your company structure.
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5.7. Please provide a list of existing clients using your services that are applicable to the underlying the QS
Services. Please support this with sufficient detail that demonstrates your capability.
5.8. Please provide a list of three clients, together with contact details, who are willing to act as a
reference in respect of your expertise.
Project Pricing
5.9. Please provide an indicative pricing proposal to Southern Response that clearly identifies:
i)
the names and experience of the people nominated to complete the scope of work above.
ii)
The fee structure:
(1) Hourly schedule of rates
(2) Daily schedule of rates.
iii) The types of disbursements which will form part of the pricing,
6. Initial short-listing of Respondents (Stage 1)
As part of the initial short listing evaluation, Southern Response will be reviewing all evaluative material /
information provided by each respondent referred to in questions 5.1 to 5.9.
7. Due Diligence and Contracting (Stage 2)
Based on the responses received in Stage 1, Southern Response will contact respondents who will be invited to
participate in stage 2, being due diligence and contract negotiation.
Short listed respondents will be provided with a form of contract in respect of the QS Services. Any negotiation
of variations to the contract of engagement will take place during the due diligence and contracting period.
8. Timeline for Process
Stage 1
8.1. All proposals in response to this RFP are due no later than 28 February 2014.
8.2. The evaluation to select initial short listed respondents will be conducted from 28 February 2014 until
7 March 2014.
8.3. If additional information or discussions are needed with any respondent during this period, the
affected respondents will be notified.
8.4. Short listed respondents will be notified for their progression to Stage 2 by 7 March 2014.
Stage 2
8.5. Any negotiation of variations to the contract of engagement will take place during the period 7 March
2014 through 21 March 2014.
8.6. Any management recommendations for appointment of the QS Services provider will be subject to
confirmation by the Southern Response Board.
8.7. Notifications to unsuccessful respondents will be completed by no later than 21 March 2014.
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9. Deadline for Stage 1 Responses
Please provide all responses through GETS no later than 28 February 2014 to:
John Hunter
Mark Farrell
[email protected]
[email protected]
Level 2, 6 Show Place,
Addington, PO Box 9123, Tower Junction
Christchurch, 8149, New Zealand
Level 2, 6 Show Place,
Addington, PO Box 9123, Tower Junction
Christchurch, 8149, New Zealand
Any enquiries to clarify the interpretation of this request or for any other purpose should be submitted
through GETS to the above no later than five working days prior to the closing date of 28 February 2014.
The terms set out on the following page apply to this RFP and to all responses to it.
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Appendix 1: Terms
Terms applying to this Expression of Interest/Request for Proposal and all responses to it
1.
By lodging a response to this Expression of Interest/Request for Proposal, respondents acknowledge that they
accept and are bound by all terms set out in this document.
2.
Southern Response reserves the right to:
a.
Reject any part of or all of any response.
b.
Negotiate or discuss a response with any respondent to the exclusion of any other respondent at any
time before or after receipt of responses.
c.
Re-advertise for further responses.
d.
Waive any irregularities or informalities in this process.
e.
Amend the closing date, the notification date or any other date in these documents.
f.
Amend the request, or any associated documents, by the issue of a written amendment notice before
the closing date.
g.
Seek clarification of any submission and request additional information or verification of information.
h.
Suspend or cancel (in whole or part) this process.
3.
Southern Response need not negotiate with a respondent regardless of their pricing or any aspect of their
response.
4.
No legal or other obligations shall arise between any person who responds to this request and Southern
Response in relation to the conduct or outcome of this process unless and until a formal written contract has
been executed.
5.
Southern Response accepts no responsibility to check any response for errors. Any information provided by
Southern Response has been provided to assist in preparing and submitting responses. Southern Response does
not represent or warrant the completeness or accuracy of such information.
6.
Southern Response may contact any referees or other people named in the response. It may request those
people to provide information about the respondent. The respondent consents to Southern Response making
such contact and requests.
7.
The respondent represents that their participation in this process creates no actual or potential conflicts of
interest. The respondent will inform Southern Response of any actual or potential conflicts that may arise after
submitting its response.
8.
All costs, expense or loss which may be incurred by any respondent will be borne solely by the respondent and
Southern Response will have no liability for them. They may include costs, expenses or losses in acting upon this
request, in the preparation of its response, attending any meetings, providing any further information, or
otherwise in connection with its participation in this process; or as a result of any modification or termination of
this process, or as a result of any loss of opportunity.
9.
The respondent represents that the information contained in its response is true, accurate and complete as at
the date on which it is lodged, and may be relied upon by Southern Response.
10.
All responses become the property of Southern Response and will not be returned to the respondent.
11.
The respondent must inform Southern Response of any material change to any of the information contained in
its response, and of any material change of circumstances that may affect the truth, completeness or accuracy of
any information provided in, or in connection with, its response.
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12.
Southern Response reserves the right to publish the names of respondents, without any
consultation/communication with respondents.
13.
The respondent must not make any media releases or responses to media enquiries and questions pertaining to
this process or the project without Southern Response's written approval.
14.
Southern Response is bound by the Official Information Act 1982. It may be required to disclose the content of
responses under that Act. Southern Response may also be required to disclose information in response to a
Parliamentary or Select Committee question or as part of its statutory reporting obligations. In the absence of a
legal obligation to do so Southern Response will not disclose to any third party confidential information that
could prejudice the legitimate commercial interests of a respondent, or could prejudice fair competition between
respondents, without the written authorisation of the respondent that provided the information.
15.
Information obtained by the respondent about Southern Response must not be used in any manner that could
prove detrimental to its interests. No information relating to this request or the process may be made public
without Southern Response's prior written consent.
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