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PART 1

GENERAL CONTRACT

Asset Management Directorate


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G E N E R A L C O N T R A C T P R O C E D U R E S

Version 1 12 December 2010

New South Wales Department of Education and Training, 2010

This document contains information proprietary to the New South Wales Department ofEducation and Training (DET). It may not be reproduced or stored in any retrieval system,transmitted in any form, disclosed or used whole or in part without the express consent of theDepartment. All rights reserved.

Version control


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T A B L E O F C ONTE NTS

1 REVIEWING THE DELIVERY OF MAINTENANCE AND CLEANINGS E R VICE S . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. 11. 1 IMP E T U S FO R C HANGE .......................................................................... 11. 2 NE W C O N T R A C T MODEL ....................................................................... 11. 3 NE W MAINTENANCE AND C LE ANING C O N T R A C T S ............................... 21.3.1 Contracts Awarded ................................................................................. 21.3.2 Contract Phases ...................................................................................... 21.3.3 Establishment Period ............................................................................. 21.3.4 Transition Out Period ............................................................................. 31. 4 MANAGEMENT ST R UC T UR E ................................................................... 3

2 FE ATUR E S OF T HE NEW CONTR ACT . . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . . 52. 1 R ELATIONSHIP C ONTRACTING & C O LLA BO R A T IV E C ONTRACTING ..... 52. 2 IMPLICATION FOR DE T .......................................................................... 52. 3 C O N T R A C T OB J E C T I V E S ........................................................................ 62. 4 NE W INITIATIVE S IN THE C O N T R A C T ...................................................... 72.4.1 Routine Maintenance ............................................................................. 72.4.2 Programmed Maintenance Works .......................................................... 72.4.3 Local Contractor Initiative ..................................................................... 72.4.4 Cleaning Arrangements ......................................................................... 82.4.5 Minor Works .......................................................................................... 82.4.6 Value for Money .................................................................................... 82.4.7

Risk Allocation & Risk Retransfer ........................................................ 9

3 GE NER AL CONTR AC T CONDITIONS . . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . . 11

3. 1 AUTHORITY TO DIR E C T T HE C O N T R A C T ............................................. 113. 2 C ONFIDENTIALITY AND P R IV A C Y ......................................................... 123. 3 DE F E C T S A ND R E IN S P E C T IO N F E E S .................................................... 123. 4 V ARIATIONS ......................................................................................... 133. 5 C O N T R A C T O R B EHAVIOUR AND S IT E R E Q U IR E M E N T S ....................... 133. 6 MANAGEMENT OF S U B C O N T R A C T O R S ................................................ 153. 7 C OMPLIANCE WITH L E G A L A ND OT HE R R E Q U IR E M E N T S ................... 153. 8 DE F A U LT A NDT ERMINATION ............................................................... 16

4 DIS PUT E MANAGE MENT . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . 174. 1 IN T E R N A L IS S U E MANAGEMENT .......................................................... 184.1.1 Overview of Process ............................................................................ 184.1.2 Negotiation between the Facility Manager and Contractor ................. 194.1.3 Escalation to the RAMU ...................................................................... 194.1.4 Escalation to the AP ............................................................................. 194. 2 INITIAL D ISPUTE R E S O LU T IO N ............................................................. 204.2.1 Overview of Process ............................................................................ 204.2.2 Initial Directive by the Authorised Person ........................................... 214.2.3 Second Directive by the Authorised Person ........................................ 214.2.4 Third and Final Directive by the Authorised Person ........................... 214. 3 E X P E R T DETERMINATION .................................................................... 22


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5 MINOR WOR K S . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . 235. 1 OV E R V IE W O F P R O C E S S ...................................................................... 235. 2 MINOR W O R K S INCENTIVE .................................................................. 245. 3 C O N T R A C T O R P E R FO R M A N C E ST AND AR DS ....................................... 245. 4 DE V E LO P ME N T O F P R O C U R E M E N T ST R AT E G Y ................................... 245.4.1 Determining the Suitability of the Contractor ..................................... 245.4.2 Projects with a Pre Tender Estimate of Up To $30,000 ...................... 255.4.3 Projects with a Pre Tender Estimate of Over $30,000 ......................... 25

6 DEMOUNTABLE DECOMISSIONING, TRANSPORT ANDCO MIS S IONING . . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. 27

6. 1 OV E R V IE W O F P R O C E S S ...................................................................... 276. 2 DEMOUNTABLE DECOMMISSIONING , T R A NS P O R T A NDC OMMISSIONING ............................................................................................... 286. 3 DEMOUNTABLE ACCOMMODATION R E V IE W S ...................................... 286. 4 DEMOUNTABLE DISCONNECTION ........................................................ 286. 5

DEMOUNTABLE INSTALLATION ............................................................ 29

6.5.1 Siting of the Demountable ................................................................... 296.5.2 Condition Assessment .......................................................................... 306.5.3 Building Handover Inspection ............................................................. 306.5.4 Attending to Defects ............................................................................ 306.5.5 Building Handover and Data Capture .................................................. 31


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Version 1 12 December 2010 Page 1 of 31

1 R E VIE WIN G THE DEL IVE R Y OF MAIN TEN ANCE ANDC L E A N I N G S E R V I C E S

1. 1 IMP E T US F O R C HANGE

In November 2008 the Minister for Education and Training endorsed aproposal for DET to undertake a major review of options for futuremaintenance and cleaning services and minor capital works. The three keydrivers for the Minister were to ensure that maintenance and cleaningservices:

Represented value for money and linked with the strategic assetmanagement directions outlined in the DET Total AssetManagement Plans;

Could accommodate the strategic intent to increase the level of

devolution and increase the involvement from schools; and Represented improvements to the current model.

1. 2 NE W C O NT RAC T MODEL

In February 2009 a consultant was engaged by DET to undertake a review ofcurrent maintenance delivery and recommend future options. The newContract model was developed after extensive consultation with a diverserange of stakeholders including representatives from schools, TAFE, Unions,DET Departments, DSTA, NSW Treasury and the existing Maintenance andCleaning Contractors. Key elements of the option adopted by DET include:

Devolved responsibility to school principals for budget and worksprioritisation;

Statutory & Preventative Maintenance will continue;

No change to Essential Urgent Repairs (EUR);

School principals will have, with some exceptions, the ability todecide the frequency of Routine Maintenance work;

Programmed Maintenance works will be prioritised by schoolprincipals with assistance from the RAMUs;

School Principals and Campus Managers will be provided withflexibility to determine the frequency of the cleaning regimes in theirschool;

Continuation of the centralised contracting framework will bemaintained; and

The Contract provides for the nomination by School Principals anduse by Contractors of local tradespersons.

The strategy was trialled at 47 schools during 2010 and the participantsendorsed the suggested changes as being beneficial to the delivery of

cleaning and maintenance services. These changes have now beenincorporated in the Contract provisions.


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1. 3 NE W MAINTENANCE AND C LEANING C O NT RAC T S

1.3.1 Contracts Awarded

In December 2010 DET awarded the new Contracts for the provision ofmaintenance and cleaning services. The Contracts are allocated on aRegional basis and, depending on the tenders received, may be separateMaintenance and Cleaning Contracts; or a single Facilities ManagementContract which provides both maintenance and cleaning services.

The following Contracts were awarded:

REGION/CONTRACT AREA CONTRACTOR TYPE OF CONTACT

Hunter / Central Coast

Illawarra / South Coast

New England

North CoastNorthern Sydney

Riverina

South Western Sydney

Sydney

Western NSW

Western Sydney

1.3.2 Contract Phases

The new Contracts will take effect from 1 July 2011 and consist of:

An establishment period of up to 5 months from the date of theContract to 30 June 2011 (see Section 1.3.3);

An initial contract term of five years;

The potential to extend the Contract for two periods of one yeareach, resulting in a total Contract period of up to seven years;

A three year break point (see Section 2.2 of the PerformanceManagement Procedures); and

A three month transition out period between July 1 and 30

September of the year that the Contract expires (see Section 1.3.4).

1.3.3 Establishment Period

During the Establishment Period, the Contractor must work with the outgoingContractor and PW / DET to ensure the smooth transition of the provision ofservices from the outgoing Contractor to the incoming Contractor.

The Contractor will also undertake preliminary activities and makeadministrative arrangements including establishing resources, carrying outcontract planning, liaising with Facility Managers, preparing a Plan ofOperations for all sites, integrating the Contract with any existing business,

and preparing quality plans, OHS&R plans, and Industrial Relations plans.


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1.3.4 Transition Out Period

Prior to the commencement of the transition out period the AP may direct theContractor to develop a draft Transition Out plan for the purposes ofensuring the smooth transition of the provision of the services between theoutgoing and incoming Contractor. The Contractor must consult with the APat least 30 days before the start of the transition out period for the purpose ofestablishing the scope of, and requirements for, the services during thetransition out period.

1. 4 MANAGEMENT STR UC TUR E

The structure for the management of the Contract is summarised below:

The State Contracts Control Board (SCCB) is the nominatedPrincipal;

The Contract/s are managed by Public Works on behalf of theSCCB;

The Public Works Manager, Facilities Management acts as thePrincipal's Senior Executive for the purposes of the contract(excluding Managed Fund issues). The Senior Executive has themain responsibility for the implementation and management of thecontract;

The Public Works Facilities Management Unit is responsible for theadministration of the Maintenance and / or Cleaning Contracts. Theunit focuses on high level policy, strategy and dispute resolution;

The DET Manager of the Facilities Management and Property Unitacts as the Senior Executive for Managed Fund works;

The DET Facilities Management and Property Unit is responsible forco-ordinating and reviewing all aspects of asset maintenance andcleaning services within the Department of Education and Training;

An officer in the Public Works Facilities Management Unit has beennominated as the Authorised Person for Cleaning. This officer isresponsible for managing the day to day running of the Contract andis the conduit between the requirements of the Facility Manager /DET and the Contractor;

Regional Public Works officers are nominated as the Principal'sAuthorised Person for Maintenance. These officers areresponsible for managing the day to day running of the Contract andare the conduit between the requirements of DET and theContractor;

In order to avoid confusion under the contract, School Principals andTAFE Campus Managers are referred to as Facility Managers;

The RAMU is the first point of call in resolving issues at Facilities,provides advice to Facility Managers, and works with Facility

Mangers to determine Maintenance and Cleaning requirements;


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The Contractors personnel and subcontractors provide theMaintenance and Cleaning services; and

Facility Managers receive the services provided by the Contractorand are involved in the programming and prioritisation ofmaintenance and cleaning works.

Governance Maintenance and Cleaning Contract

Senior ManagementOperational

Management

Service Provider /

Recipient

Signatory to

Contract

Principal State

Contracts Control

Board

DET FMP Unit

School, Colleges

& Administrative

Units

PW FM Unit

RAMU

Authorised Person

Regional PW forMaintenance - PW

FM Unit for Cleaning

Contractors

personnel and

subcontractor

Contractor

Principals Senior

Executive

(Manager PW FM

Unit)

Contractors

Senior Executive

Contractors

Authorised Person

Senior Executive

DET (Manager

DET FMP Unit)


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2 F E A T UR E S O F T HE N E W C O NT R A C T

2. 1 R ELATIONSHIP C ONTRACTING & C O L L ABO RAT I V E C ONTRACTING

The new Maintenance and Cleaning Contracts are based on a RelationshipContracting model which builds on the previous non-adversarial GC21contract. Relationship Contracting is based on the recognition that there ismutual benefit in a co-operative relationship between the parties to theContract. This is often expressed as the establishment of a 'win-win' scenarioor a one-team culture.

There are various forms of relationship contracting including collaborativecontracting, managing contractor and alliancing. DET has adopted acollaborative approach for the new Maintenance and Cleaning Contracts.Collaboration seeks to establish a contract management structure whichensures shared objectives, a commitment to co-operate, consultation indecision making, sharing of information and early resolution of disputes. Italso seeks to allocate risk meaningfully whilst maintaining a performancemanagement structure that requires contractual compliance and thecontractor being ultimately responsible for the quality of work.

The advantage of adopting a Relationship Contract is that it provides:

A clear focus on moving away from an adversarial form ofcontracting;

A reduction in disputes between the parties;

Clearly defined Contract objectives highlighting the need for partiesto co-operate;

Greater consultation in planning and budgeting;

Clearly defined KPIs to measure and monitor performance;

A payment structure which incentivises contractor performance andencourages innovation and cost savings;

Defined meeting and reporting structures, designed to driveperformance; and

Appropriate allocation of risks.

2. 2 IMPLICATION FOR DE T

In implementing the new Contract Facilities Managers, DET personnel andPW officers should adopt the following approach to the Contractor:

Officers should do everything they can to make the relationship withthe Contractor amicable;

A non adversarial approach to the Contractor should be adopted andDET and PW personnel should assume that the Contractor isworking in the best interests of the Contract;


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Every effort should be made to listen to, and understand theContractors point of view;

DET and PW officers should base decisions on facts and not onemotion. They must listen to the Contractors issues and analysethem in terms of Contract requirements and service outcomes beforemaking a decision;

Officers should be prepared to compromise on minor matters andonly conflict with the Contractor on important issues;

The Contractor should be provided with full information on decisionsmade by DET or PW so the Contractor understands how thedecision was arrived at;

Requested information, advice and approvals should be provided assoon as possible, and payments made on time; and

Where appropriate, the Contractor should be involved in the decisionmaking process in order to minimise the potential for conflict.

2. 3 C O NT RAC T OB J E C T I V E S

Clearly defined contract objectives are an important component ofCollaborative Contracting. The Contract objectives include:

A collaborative approach and a one team culture between PW, DET,Facility Managers and the Contractor;

Value for money and pricing transparency;

Maintaining all assets and sites to a consistent and sustainablestandard without faults;

Increased Facility Manager satisfaction in the delivery of Services;

Improving the Contractor's ability to plan activities, achieve targetsand deliver services on time, on budget and to the requisitestandard;

Maximising responsiveness to Facility Managers and stakeholderrequirements concerning service delivery;

Proactive response to unsatisfactory service and timely rectificationof unsatisfactory service delivery;

Maintenance of an ongoing dedicated team of key people whichdelivers exceptional subcontractor performance, including timelybilling by and payment of subcontractors;

Achievement of sustainability objectives, including those of the NSWGovernment;

Driving long term increases in productivity and purchasing power bymaintaining at all times best practice and competitiveness in theperformance of the services;

Highest standards of safety for all persons and all sites;


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To minimise DETs exposure to risk; and

Achievement of exceptional Contractor performance and alignedContract management through a Performance ManagementFramework.

2. 4 NE W INITIATIVE S IN THE C O N T R A C T

2.4.1 Routine Maintenance

Routine Maintenance is a new category of maintenance and consists of thefollowing items which were previously included in the Statutory & PreventiveMaintenance categories:

Cleaning of roofs, gutters and downpipes;

Easing & adjustment of doors; and

Clearing of grated drains and stormwater pits.

In the new arrangements Facility Managers will, with some exceptions, beable to choose whether they make use of any or all of these services at theirFacility. A notional budget is provided to schools under the classification ofRoutine Maintenance for a full service. Any savings resulting from areduction in the provision of Routine Maintenance services will be availablefor use on Programmed Maintenance works.

This initiative is further discussed in Section 4 of the MaintenanceProcedures.

2.4.2 Programmed Maintenance Works

Each school will receive a notional Programmed Maintenance budget basedon a formula which considers such things as enrolment numbers, floor area,age and the relative condition of the school. The Facility Manager decideswhat Programmed Maintenance work they will undertake based on thecondition assessment for their school and the advice of the RAMU. Workswith a health and safety implication must be given priority.

The actual funds will remain with the AMU to enable them to make paymentsand organise the work on the Facility Managers behalf.

This initiative is further discussed in Section 8 of the MaintenanceProcedures.

2.4.3 Local Contractor Initiative

The Local Contractor initiative enables Facility Managers to nominate localtradespeople to the Contractor for incorporation into their sub-contractorbase for EURs and Programmed Maintenance for the nominating schoolsubject to:

There being a mutual agreement for the two parties to work together;

The Local Contractor meeting all requirements under the Contractincluding child protection, technical and financial capability; and


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The rates submitted by the Local Contractor, plus the Contractorstendered management fee, being equal or lower than theContractors schedule fee for an equivalent service.

Any reductions in callout rates between that submitted by the Local

Contractor and the Contractors callout rates will benefit the participatingschools.

This initiative is further discussed in the Section 12 of the MaintenanceProcedures.

2.4.4 Cleaning Arrangements

Facility Managers are now able to prioritise the work to be done at theirschool / TAFE within the overall hours currently provided in the Contract.For instance, they can elect to have some rooms cleaned more often andothers less often. They are not, however, able to reduce or increase the

overall cleaning hours or make changes to programmed cleaning if this isgoing to have an impact on the employment of cleaners or on the cost ofservices to DET.

Facility Managers also have the flexibility to use some of their cleaning hoursto have cleaners undertake negotiated ancillary tasks. Examples include theplacement of bins in the school grounds or opening agreed blocks and/or themain gate at the conclusion of the morning shift. Any duties that are agreedwill need to be in accordance with the provisions of the current award forcleaning staff and recognise that the Facility Manager has ultimateresponsibility for OH&S issues on their site.

This initiative is further discussed in Section 4 of the Cleaning Procedures.

2.4.5 Minor Works

As an incentive to provide an outstanding, cost effective maintenanceservice Contractors will be given the opportunity to deliver Minor Worksprojects if they achieve a predefined performance level. In general, if theContractor has achieved the required performance standard then it is DETpolicy that they should be offered the work as a single invited tender orincluded on the tender panel.

This initiative is further discussed in Section 5.

2.4.6 Value for Money

The Contract looks to maximise value for money in a number of waysincluding:

Providing as much information to the Contractor as possible aboutthe number and condition of assets; thereby reducing the level ofunknown risk and enabling the Contractor to put in a morecompetitive price;

Greater bundling of work to promote more competitive pricing by theContractor. All Programmed Maintenance (apart from floorcoverings) must be completed by the Contractor and the Contractor


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will also be given the opportunity to provide Minor Works providedcertain prerequisites are met;

The Contractor is required to provide open book access to enableDET to review break-ups and subcontractor pricing;

DET has the right to seek a review of pricing from an independentpanel of quantity surveyors which has been briefed in the scope ofworks and DET standards; and

Providing opportunities for innovations and price and costing savingsduring the contract term.

2.4.7 Risk Allocation & Risk Retransfer

When tender submissions were called, DET provided as much information tothe Contractor as possible about the number and condition of assets.Having a clearly defined allocation of risk within the Contract enables the

Contractor to clearly understand its liability in the provision of services and tocost this risk accordingly.

It is important that those parties administering the Contract, and in particularthe AP, understand the allocation of risk and do not allow risk retransfersuch as:

Seeking to retain or accept a risk that was allocated to theContractor under the Contract; or

Attempting to allocate further risk to the Contractor other than whatthe contract conditions provide.

To minimise risk retransfer, the AP and other contract management staff aretrained in the Contract and its specific risk allocation.

Facility Managers and DET officers involved in facilities management shouldensure that they do not do anything which could result in risk retransfer. Anyissues which relate to the responsibilities of the Contractor should bereferred to the AP for the appropriate action.


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3 GE NE R AL C ONTR ACT C ONDITIONS

This section outlines some of the important Contract clauses. The information isprovided so DET FMP Unit, the RAMU and Facility Managers have a better

understanding of the way the Contract is structured and managed, how theirissues and concerns are addressed, and how their actions may impact onoutcomes.

It is important to understand that these issues are managed by the AP. DET,RAMUs and Facility Managers should not get involved in their implementation ormanagement. Any issues that they have in these areas should be reported to theAP for resolution. RAMU Managers may also wish to advise potentially systemicissues to the DET FMP Unit so that organisation wide changes or actions can beinstigated.

3. 1 AUTHORITY TO DIR E C T T HE C O NT RAC T In the Maintenance, Cleaning or Facility Management Contracts the AuthorisedPerson is the officer who undertakes the day to day management of the Contractand has regular face to face contact with the Contractor. For Maintenanceservices the Authorised Person is a Regional Public Works officer whilst forCleaning services the Authorised Person is an officer within the Public WorksFacilities Management Unit.

In general, all communication with and Direction of the Contractor about theperformance of services under the Contractor should be undertaken by the AP. Itis important that Facility Managers, the RAMU, the DET FMP Unit and other DET

Units are fully aware of their authority under the contract and that they do not: Direct the Contractor to do work that is outside of their authority;

Give a direction which will involve DET in additional expense; or

Act in any way that may impede the Contractor in the delivery of servicesunder the Contract.

The RAMU and the DET FMP Unit have only limited contractual authority to directthe Contractor to complete works. The DET FMP Unit can approve Emergencyand Supplementary Cleaning and may assist the RAMU and the PW-FM AP in theresolution of disputes. The RAMU is the initial contact point for the FacilityManager in cases where an issue has not been successfully resolved by directnegotiation between the Facility Manager and the Contractor. If the RAMU cannotachieve a satisfactory outcome to the dispute, the issue must immediately bereferred to the relevant AP

The Facility Manager has authority to:

Prioritise Regular Cleaning at the Facility;

Direct the Contractor to carry out Emergency Cleaning or OptionalCleaning;


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Direct the Contractor to undertake Essential Urgent Repairs andInsurance Works up to $1,000 or the Facilitys contribution amountwhichever is the larger; or

Engage the Contractor to provide minor additional works at the site.

3. 2 C ONFIDENTIALITY AND P RI V AC Y

Information on the Contractors processes, procedures, prices or systems may beconfidential and should not be disclosed to other Facility Managers, Regions ororganisations. To ensure that this requirement is upheld, Facility Managers andDET officers should assume that all such information is confidential. If the FacilityManager or DET officer has reason to provide information about the Contractor toanother party the advice of the AP should be sought before doing so.

3. 3 DE F E C T S A ND R EI NSP EC T I O N F E E S

The Contractor is required to monitor, inspect and audit its work to ensure thatservices comply with the requirements of the Contract. Where defects areidentified, the Contractor must rectify them promptly.

The AP, Facility Manager or RAMU may also identify defects when they inspectFacilities or undertake audits. The Facility Manager and RAMU can bring suchdefects to the attention of the Contractor. However, if the Contractor does notagree to make good then the issue must be referred to the AP for the appropriateaction.

The AP will assess the issue and, if they agree that the Contractor has not met the

requirements of the Contract, will instruct the Contractor to make good defectswithin a specified time.

The Contractor must make good any defects at its own cost and ensure that therectification works are completed so as to result in as little disruption andinconvenience as possible to the Facility Manager.

If the Contractor fails to make good the defects in the time specified, the AP mayhave the defects made good by others. In such instances the Contractor will beliable for the third party costs and an administration fee of $500. The Contractorwill also be responsible for the work involved in making good the defects by theother party as if the Contractor had performed the work.

Where the defect relates to services which have not been provided or only partlyprovided for any period in accordance with the Contractors schedule andprogram, the AP may adjust the Contract Price by an amount calculated using therates provided in the Contract for the services that were not provided. This wouldapply to services such as Programmed Cleaning, Routine Maintenance orStatutory and Preventive Maintenance.

Further information on the management of defects is provided in the relevantsections of the Maintenance and Cleaning Procedures.


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3. 4 V ARIATIONS

A variation is any change to the services provided under the Contract includingadditions, increases, omissions and reductions to and from the Contract. Someexamples of variations include:

The provision of additional cleaning or maintenance services as a resultof new facilities being provided to a school or TAFE;

The reduction of cleaning or maintenance services as a result of facilitiesbeing removed from a school or TAFE; or

A request for the Contractor to obtain prices for ProgrammedMaintenance work.

Where a variation is required, the AP will request that the Contractor provide aproposal for the works or services including its price for the proposed variation.

The AP will review the proposal and negotiate where issues need to be clarified orcosts seem to be above market values. Once all issues are resolved, the AP willseek the approval of the appropriate officer within DET. The Contractor must notbegin to carry out the variation until the AP has approved the proposal in writing.

Further information on the processing of variations is provided in the relevantsections of the Maintenance and Cleaning components of these procedures.

3. 5 C O NT RAC T O R B E HAVIOUR AND S IT E R EQ UI REMENT S

This section looks at the code of behaviour and general Contractor responsibilitieswhen delivering services at a site. The Facility Manager should bring any non-

compliant activity to the attention of the Contractor. Where the Contractor doesnot appropriately address the situation, the Facility Manager should advise theRAMU in accordance with the Internal Issue Management procedure in Section4.1.

The Contractor has the following responsibilities in regard to accessing the siteand delivering maintenance and cleaning services and must ensure that allemployees, managers, consultants, subcontractors and suppliers also comply withthese requirements:

Complying with the Facilitys policies and procedures;

Contractor Behaviour

For Cleaning services, registering attendance in the Facilitys Roster andAttendance Book and completing all required details;

For Maintenance services, reporting their presence to the FacilityManager on arrival each day and recording in the Site Visit Log thedetails of all persons working at the site that day;

Consulting the respective Cleaning Service and Maintenance ServiceManuals prior to carrying out any services and complying with itsrequests.

Providing all Contractor and Subcontractor Employees attending allFacilities with photo identification cards and authorisation to carry out


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work on the Contractors behalf. The Identification Card must include thepersons photograph and be worn or carried by the Employee at alltimes.

Taking responsibility for the suitability of all Contractor Employees andSubcontractors at the Facility, setting reasonable standards of conduct,investigating complaints about their behaviour and taking appropriateaction including removal from the Facility if so warranted.

Wearing clothing that is tidy and in good condition at all times when onsite;

Disposing of all rubbish off site and not using the Facilitys garbage bins;

Ensuring all visible external and internal surfaces, including fittings,fixtures and equipment, are free of marks, dirt, dust, vermin andunwanted materials upon completion of work.

Avoiding talking with, touching or interacting with any children or otherusers of the Facility except where the work requires it or in anemergency or safety situation;

Liaison with Users

Ensuring that toilets and similar facilities are not occupied or in usebefore entering to perform work, and that work does not continue whenuse of the facilities is required. Where practicable male employeesshould perform work on male facilities and female employees on femalefacilities;

Only using approved toilets and facilities; Reporting any concerns about childrens behaviour or child abuse to the

person in charge of the Facility.

Ensuring that the work area is not able to be used or accessed by usersof the Facility while work is in progress. Clear signs and barricades(where appropriate) must be used to prevent any inadvertent orunauthorised access;

Safety

For Maintenance Services, examining the Hazardous SubstancesRegister prior to carrying out any works at each Facility and being awareof the locations of such materials;

Providing and maintaining access to the work area;

Site Access

Liaising with the Facility Manager regarding suitable access routes,vehicle access and parking, times to minimise disruption to the operationof the Facility etc;

Repairing any damage caused by, or as result of, gaining access to the

Facility or carrying out the services;


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Obtaining the written permission of the owner if access is requiredthrough adjacent properties;

Obtaining the permission of the Facility Manager if access and parking inthe grounds of the Facility is required;

Liaising with the Facility Manager to minimise the duration and extent ofany disruption resulting from the provision of services.

3. 6 MANAGE MENT O F S U B C O N T R A C T O R S

The Contractor cannot subcontract the whole of the services it provides under theContract without the SCCBs written approval. The Contractor can, however,subcontract parts of the services but must provide details of the proposedsubcontractors to the SCCB. The SCCB may object to the appointment of anyproposed subcontractor on reasonable grounds.

When engaging subcontractors the Contractor must comply with the followingrequirements:

The Contractor must ensure that each Subcontract includes provisionsthat ensure the Contractor is able to discharge the Contractorsobligations and liabilities under the terms of the Contract,

The Contractor is solely responsible for all Subcontractors and for theiracts and omissions;

The Contractor must maintain proper records to account for all moneyreceived in trust for the benefit of subcontractors and show them to theSCCB on request;

The Contractor must pay all subcontractors within 15 business days andmust keep in a separate trust account all retention moneys and cashsecurity;

Where the subcontract involves Cleaning services at a Facility, theprovisions with respect to job security for Existing Staff and conditions ofemployment for new employees at a Facility will apply (see Section 12 ofthe Cleaning Procedures).

These requirements give DET the assurance that any subcontractors will meet allthe requirements of this Contract in the provision of their services. Any issues withthese subcontractors are the responsibility of the Contractor. The AP should bringsuch matters to the attention of the Contractor for the appropriate action.

3. 7 C OMPLIANCE WITH L E G A L A ND OTHE R R EQ UI REMENT S

The Contractor must comply with the all relevant legal, government and otherrequirements in the delivery of its services as set out in the Contract including:

Occupational Health and Safety;

Quality Management;

NSW Government Aboriginal Participation in Construction Guidelines;


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Industrial Relations;

NSW Government Training Management Guidelines;

NSW Government Local Jobs First Plan;

Environmental Management;

Waste Management; and

Pest Control.

The AP is responsible for reviewing the Contractors documentation andconformance with these requirements. If the Facility Manager is concerned thatthe Contractor is not complying with these requirements, the Facility shoulddiscuss the issue with the Contractor. Where the Contractor does notappropriately address the situation, the Facility Manager should advise the RAMUin accordance with theInternal Issue Managementprocedure in Section 4.1.

3. 8 DE F AUL T ANDT ERMINATION

The Contract provides a number of ways for the Contract to be terminated beforethe end of the Contract period:

DET is committed to the success of the Contract and therefore termination wouldonly be considered in extreme circumstances. All actions to seek termination ofthe Contract by the State Contracts Control Board would be coordinated by SeniorManagement after receiving legal advice.


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4 DISPUTE MANAGEMENT

Relationship contracting requires that the parties work together as a team andtreat each other with respect and understanding. This approach is essential in

effectively addressing issues without the need to escalate them to management.In general, the parties to the Contract, including the AP, DET FMP Unit, RAMUand Facility Manager must do all they reasonably can to cooperate and to avoidhindering the performance of the other under the Contract. Where disputes orissues arise the parties will initially attempt to address the matter by discussionand negotiation. Where this does not immediately resolve the issue, either partycan escalate the issue using the methodology below.

Following the Internal IssueManagement Procedure for otherissues with Cleaning Contractor

and all Maintenance issues

Followthe Monitoring & Complaints

Process in Sec 5 of theCleaning Procedures

Refer to SeniorExecutive for

possible ExpertDetermination

Issue arises

Does thisissue relate to

the standard ofcleaning

Has the issuebeen resolved

Advisestakeholders andupdate records

Follow the InitialDispute

ResolutionProcedure

Has the issuebeen resolved

Yes No

Yes

No

No

Yes


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4. 1 INT ERNAL IS S U E MANAGEMENT

4.1.1 Overview of Process

Facility Managercontacts RAMU

with issue

Contractorcontacts the AP

with issue

RAMU / FacilityManager attemptto resolve issue

Is the issueresolved

RAMU advisesrelevant

stakeholders of

resolution

RAMU arranges ameeting with

relevantstakeholders


RAMU escalatesissue to SED

AP attempts toresolve issue


AP advisesrelevant

stakeholders

AP arrangesmeeting with

relevantstakeholders toresolve issue

Is issueresolved

No

Follow Initial DisputeResolution process

Yes

An issue arises which involvesthe Cleaning or Maintenance

Contractor

Facility Manager & Contractorattempt to resolve the issue

between themselves

Can the issue beresolved

No further action required

Issue escalated by eitherFacility Manager or Contractor

Is this aContractual

issue

RAMU refers issue tothe AP and discussesstrategies to resolve

Yes

No

No

Yes

Yes

No

Yes

Yes

No

No


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4.1.2 Negotiation between the Facility Manager and Contractor

This procedure should be used to resolve all Maintenance issues and anyCleaning issues which do not relate to the standard of cleaning provided by theContractor. Issues relating to cleaning standards should be resolved using theprocess outlined in Section 5 of the Cleaning Procedures.

Where an issue arises between the Facility Manager and the MaintenanceContractor or the Cleaning Contractor the parties should discuss the matter andattempt to resolve the issue at a local level. During this process the parties willneed to listen carefully to, and attempt to understand, the other persons point ofview. A successful outcome may require that each party agrees to some level ofcompromise.

If the issue cannot be resolved at this level then either the Facility Manager orthe Contractor can escalate the issue. It is important that the initial negotiationperiod is not protracted as this may stop the Contractor from meeting itsobligations under the Contract. Therefore if the issue is not resolved within areasonable time, which would usually be at the first meeting, the matter shouldbe escalated.

4.1.3 Escalation to the RAMU

The Facility Manager should direct all unresolved issues to the RAMU. TheFacility Manager and the RAMU will discuss the issue, clarify the contractualobligations of the parties and agree on possible strategies to address the matter.If this process does not result in a resolution then the RAMU will either:

Escalate the issue to the relevant AP in instances where the RAMUbelieves that the Contractor is not meeting its obligations (as outlined inSection 4.1.4); or

Arrange a meeting with the relevant stakeholders where the RAMUbelieves that the issue is of a non contractual nature. An example of thiswould be where the Facility Manager does not accept the RAMUsdetermination that the Contractor has met its Contractual obligations.

If this stakeholder meeting does not result in the issue being resolved then theRAMU will escalate the issue to the SED. The RAMU will provide the SED withthe details of the issue and recommend a course of action. The SED will make adetermination and advise the relevant stakeholders of the outcome.

4.1.4 Escalation to the AP

Issues can be escalated to the AP in two ways:

The RAMU may refer a contractual issue which could not be resolved ata local level as discussed in Section 4.1.3.

The Contractor will direct all unresolved issues to the AP.

The AP will review the issue and determine where the responsibility lies. The APwill then discuss the issue and contractual requirements with the responsibleparty. If the issue is not resolved by this process then the AP will arrange ameeting with the relevant stakeholders. At the meeting the parties will discuss


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the issues and look at options to resolve the matter. If this meeting is successfulin resolving the issue then the AP will advise the stakeholders of the resolutionand make sure that the responsible parties meet their agreed obligations.

If the meeting of stakeholders does reach an agreement then the Initial DisputeResolution procedures in Section 4.2 should be followed.

4. 2 INITIAL DI SP UT E R ESO L UT I O N

4.2.1 Overview of Process

Issue arises which was notresolved using the Internal

Issue ManagementProcess

AP directs Contractor tomeet contractual

obligations

Does theContractor

agree to meetcontractualobligations

Contractorrectifies issue and

advises AP

Does theAP agree that

the issue has beenrectified

AP records resolution ininformation management

system

Yes

Yes

AP directs that theContractor rectifies issue

within 14 days or asdetermined by the AP

DoesContractordispute this

direction

Where required theAP inspects the

works after 14 daysor at the directed

time for completion

DoesAP agree

that the issuehas beenrectified

Yes

No

No

AP directs the Contractorto rectify within 7 days (oras determined by the AP)or it will engage a 3rd partyat the Contractors cost or

reduce / withhold payment

DoesContractor

rectify

No

DoesContractordispute thenotification

No

AP has workrectified by 3rd

party

No

AP advisesContractor of costof rectification andthat costs will bededucted from

Contractors nextclaim

DoesContractordispute thededuction /

costYes

No

Contractor refersissue to the Senior

Executive

Yes

CM pays 3rd party

Yes

No

Yes

Issue noted in datacollection for contractor

performance

Is a 3rd partyto be

engaged

Yes

Contractor reduce thenext monthly payment

claim to the extent

stated in the 7 daynotification


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4.2.2 Initial Directive by the Authorised Person

Where the procedures for Internal Issue Management in Section 4.1 above arenot successful in achieving a resolution to an issue then the AP will direct theContractor to meet its contractual obligations.

If the Contractor accepts the Directive it will rectify the issue and advise the APwhen it believes that the matter has been addressed. The AP will then reviewthe Contractors response and determine if the matter has been appropriatelyattended to. Where the AP agrees that the issue has been rectified it will updateits information management system with details of the issue and its resolution.

4.2.3 Second Directive by the Authorised Person

The AP will issue the Contractor with a second Directive to rectify the issue ininstances when, after receiving the initial Directive, the Contractor either:

Does not agree to rectify the issue; or

Agrees to rectify the issue but the AP does not believe that theContractors response adequately addresses the matter.

The second Directive will require that the Contractor rectifies the issue within 14days or by a date otherwise determined by the AP

If the Contractor disputes this Directive and an agreement cannot be reachedbetween the parties then the Contractor should refer the issue to the SeniorExecutive.

If the Contractor accepts the Directive it will rectify the issue and advise the APwhen it believes that the matter has been addressed. The AP will review theContractors response and determine if the matter has been appropriatelyaddressed at the earliest of the following dates:

14 days after the Second Directive was issued; or

At the directed time for completion; or

After receiving advice from the Contractor that it has rectified the issue.

Where the AP agrees that the issue has been rectified it will update itsinformation management system with details of the issue and its resolution. Areinspection fee of $500 will be payable by the Contractor for this and any

subsequent inspections which are required to ensure that the issue has beenadequately addressed.

4.2.4 Third and Final Directive by the Authorised Person

If after the second Directive the AP does not believe that the Contractor hasadequately addressed the issue it will Direct the Contractor to rectify the matterwithin 7 days (or within the period otherwise determined by the AP) or the AP willtake appropriate action to rectify or address the issue in dispute.

Where the Contractor adequately addresses the issue the AP will update itsinformation management system with details of the issue and its resolution.

Where the Contractor has not adequately addressed the issue after the third andfinal Directive and has not disputed the Directive by referring the matter to the


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Senior Executive then the AP will implement one of the following actions toaddress the situation:

Where the issue involves work that is able to be completed, the AP may engage

a third party to provide the service. In such cases the AP will advise theContractor of the cost of the third party rectification and that these costs will bededucted from the Contractors next monthly payment claim.

Engagement of a Third Party

The Contractor should refer the matter to the Senior Executive for determinationif it disputes the action taken or the cost of the third party rectification.

This option may be adopted where the AP believes that the Contractor has onlyprovided part of the required service. Under this option, the AP will value thework delivered to date and advise the Contractor of the amount and methodology

of this valuation. The Contractor should review this advice and, if it disputes thevalue given to the completed work, refer the matter to the Senior Executive fordetermination.

Accepting the Deliverable at a Reduced Cost

If the Contractor does not dispute the valuation the AP will reduce the nextmonthly payment claim to reflect the reduced value of the service provided.

The third option available to the AP is to withhold a portion of the monthlypayment claim until such time as the Contractor addresses the issue.

Withholding the Monthly Payment Claim

The Contractor should refer the matter to the Senior Executive for determinationif it disputes this approach.

If the Contractor does not dispute the determination it will rectify the issue and,when appropriately addressed, the AP will process the withheld amount in thenext monthly payment claim.

4. 3 E X P E R T DET ERMI NAT I O N

Where the Initial Dispute Resolution procedure does not bring about a successfulresolution then there is a process to enable the matter to be referred to anindependent body for Expert Determination. Generally, DET / PW would look to

instigate one of the options outlined in Section 4.2.4 as a way of addressing theissue rather than seeking Expert Determination.

The Senior Executive of both parties is responsible for managing the ExpertDetermination process in close consultation with the AP and DET Management.


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5 MINOR WOR K S

5. 1 OV E R V IE W O F P R O C E S S

RAMU obtains approvedminor works program

Existing Minor Worksprocurement procedures

are followed fordevelopment of brief,scope of works & PTE

Does theContractor

meet requiredperformance

standard

Existing Minor Worksprocurement process

to be followed

RAMU / PW-AP developthe procurement strategy

including whether theContractor is to be used to

procure the work

No

Does theRAMU believe there arereasons not to use the

Contractor

Yes

RAMU seeks the approvalof the AMD Director

Program Delivery not to

use the Contractor

Is approvalreceived

Yes

Yes

No

Has the project /package a PTE of

over $30k

Contractor invited toprocure the work as asingle invited tender

No

If the Contractor is awardedthe work its performance willbe assessed and fed into the

maintenance performancerating

No

Contractor invited to bepart of the tender panel

Yes

Existing Minor Workprocurement procedures are

followed for tender andcontract management


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5. 2 MINOR WO R K S INCENTIVE

Contractors who have consistently achieved above the predefined performancelevel may be given the opportunity to deliver Minor Works projects. In general, ifthe Contractor has achieved the required performance standard then it is DET

policy that the Contractor should be offered the work as a single invited tender orincluded on the tender panel.

These procedures should be used by the RAMU in determining whether or not theContractor should be included in the procurement process. In all other respects,the usual procedures for the procurement of Minor Works, as documented in theMinor Works Manual, should be followed. The Minor Works Manual is available inthe DET Intranet athttps://detwww.det.nsw.edu.au/assetmanagement/ras/index.htm

5. 3 C O NT RAC T O R P E R F O R M A N C E ST AND AR DS

The performance of the Contractor is progressively monitored and assessed byDET and the PW-AP in line with the Performance Management FrameworkProcedures.

Prior to determining the procurement strategy for Minor Works the RAMU will, inconsultation with the PW-AP:

Obtain advice from the DET FM Section on the performance targetswhich the Contractor must achieve; and

Review the Contractors performance to ensure that it meets requiredstandards and is therefore eligible to procure Minor Works projects.

5. 4 DE V E L O P ME N T O F P R O C U R E M E N T STR AT E G Y

5.4.1 Determining the Suitability of the Contractor

The RAMU, in consultation with the PW-AP, will develop a procurement strategyfor Minor Works projects / bundles and determine if the Contractor should beused in the procurement of the works. In general, if the Contractor hasconsistently achieved above the predefined performance level then it is DETpolicy that the Contractor should be offered the work as a single invited tender(Section 5.4.2) or included on the tender panel (Section 5.4.3) subject to:

The Contractor having the capability to procure that type of works. Indetermining this the RAMU might consider the Contractors success indelivering similar large maintenance works or previous Minor Worksprojects;

The Contractor having adequate physical, financial and human resourcesavailable;

Any potential that awarding this work to the Contractor will have adetrimental effect on its delivery of maintenance services; or
https://detwww.det.nsw.edu.au/assetmanagement/ras/index.htmhttps://detwww.det.nsw.edu.au/assetmanagement/ras/index.htmhttps://detwww.det.nsw.edu.au/assetmanagement/ras/index.htm


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There not being greater advantage in using another service providere.g. if the works could be bundled up with a Major Work being deliveredon the site.

If the RAMU determines that it does not wish to use the Contractor to procure the

Minor Works project / bundle for reasons other than it did not achieve therequired performance level then it must seek the written approval of the Director,Program Delivery. When seeking this approval the RAMU should advise:

The nature of the project / bundle of works;

The reason why it does not wish to use the Contractor; and

The Regions preferred procurement strategy.

Where approval is received for the Contractor not be involved, the RAMU willprocure the works in line with existing Minor Works procedures.

5.4.2 Projects with a Pre Tender Estimate of Up To $30,000

All projects / bundles which have a pre tender estimate of up to $30,000 will begiven to the Contractor to procure as a single invited tender unless the RAMUobtains approval to make other arrangements as discussed in Section 5.4.1above.

5.4.3 Projects with a Pre Tender Estimate of Over $30,000

All projects which have a pre tender estimate of over $30,000 will be procured vianormal Minor Works processes. The Contractor will be included on the tender

panel for these works unless the process set out in Section 5.4.1 is applied.


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6 DEMOUNTABLE DECOMISSIONING, TRANSPORT ANDCOMISSIONING

6. 1 OV E R V IE W O F P R O C E S S Demountable Contractor sites

building, connects service,makes building ready foroccupation and supplies

contractual documentation

Is buildingaccepted by

RAMU

RAMU directsDemountableContractor to

address issue/s

RAMU confirms handoverto Maintenance Contractorby email within 5 working

days

Yes

Does theIssue/s need to be

escalatedNoNo

Escalate to initialdispute resolution

(transport

contract)

Yes

DemountableContractor

addresses issue/s

RAMU inspectsbuilding to ensure

that issue/s havebeen addressed

RAMU , School & DemountableContractor do a condition

inspection and ensure buildingproperly installed & fit for

purpose.

RAMU coordinates a buildinghandover inspection inviting

Facility Manage andDemountable Contractor

At the completion of the visualinspection (excluding roofs) any

issues are recorded on thecheck sheet by the RAMU

PW-AP varies building intomaintenance contract and

advises Maintenance /Cleaning Contractor within 2working days that they are

responsible for maintaining /cleaning the demountable

RAMU accepts handoverfrom Demountable

Contractor


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6. 2 DEMO UNT ABL E DECOMMISSIONING , T R A N S P O R T A NDC OMMISSIONING

The Maintenance Contract does not include the arrangements associatedwith the transportation, delivery, loading / unloading, or disconnections /

connections of demountable modules. These works are provided under theDemountable Transport Commissioning and De-commissioning Contract.

The Demountable Contractor is responsible for the following tasks prior tohandover to DET:

The relocation of the Demountable;

Installation at the new site;

Connection of services;

Nominated repairs; and

Supply of contractual documentation.

6. 3 DEMO UNT ABL E ACCOMMODATION R E V I E W S

During October to November each year the RAMU undertakes a review of actual /anticipated enrolments and teaching space demand to establish whether a Facilityrequires an increase or decrease in Demountable accommodation. Whereaccommodation requirements have been reduced, the RAMU will identify theactual building that will be removed from the site and flag this information in AMS.

Once all these reviews have been completed in a Region the RAMU will consultwith the Demountable Coordination Unit to confirm accommodation requirements.The Demountable Coordination Unit will then raise an order with the DemountableContractor to decommission, transport and / or commission the effectedDemountable buildings.

6. 4 DEMO UNT ABL E DISCONNECTION

The Demountable Coordination Unit will provide notification to the DemountableContractor and the RAMU when a demountable is required to be disconnected.Upon receipt of this advice the RAMU will organise a meeting with theDemountable Contractor and the Facility Manager to:

Confirm the building that is to be relocated;

Determine which services need to be disconnected;

Determine if there are any steps, covered walkways, piers ramps, flyroofs, air conditioners etc that need to be dismantled / removed;

Carry out a visual inspection for rust in all steel;

Determine if cross bracing is required;

Identify any vegetation that must be removed prior to the relocation;

Determine how the relocation machinery will access the site; and

Resolve any other relevant issues.


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At the end of the meeting the following documentation must be prepared by theDemountable Contractor then forwarded to the Demountable Coordination Unitwith a copy left with the Facility Manager and the RAMU:

The items discussed / reviewed must be documented on theDemountable Release Form and sign off by all parties;

The remedial works and access routes must be outlined on A4 sketchplans;

A condition assessment of the building; and

A minimum of four internal and four external photographs showing theextent of the supports to be removed, the proximity to other structuresand the condition of assemblies, furniture, fitments and fittings.

Once all these items have been signed off the Demountable Contractor willcommence the disconnection works and site clean-up, ensuring that it meets the

quality and technical specification outlined in the Contract. On completion of thesite clean-up the Contractor must obtain the Facility Managers signature on theSite Clearance Certificate to verify that the Facility Manager is satisfied that thesite is suitable for safe use.

6. 5 DEMO UNT ABL E INST AL L AT I O N

6.5.1 Siting of the Demountable

The Demountable Coordination Unit will provide notification to the DemountableContractor and the RAMU when a demountable is required to be installed. Upon

receipt of this notification the RAMU will organise a meeting with theDemountable Contractor and the Facility Manager to:

Identify the proposed site of the building that is to be installed, togetherwith two alternative locations (if appropriate);

Determine requirements for piers;

Identify services requirements (electrical, data cabling, water,stormwater, sewer and gas);

Confirm commissioning works including paths, steps and ramps; and

Identify access routes and access issues.

At the end of the meeting the following documentation must be prepared by theDemountable Contractor then forwarded to the Demountable Coordination Unitwith a copy left with the Facility Manager and the RAMU:

The items discussed / reviewed must be documented on theDemountable Site Report Form and sign off by all parties;

The proposed location of the building and services, and access routesmust be outlined on A4 sketch plans; and

A minimum of four photographs to clearly show and verify wheresupports will be installed and the proximity to other structures. An


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additional two photographs of the proposed access routes are alsorequired.

Once all these items have been signed off the Demountable Contractor willcommence the site, installation and commissioning works. In doing so, the

Demountable Contractor must ensure that it meets the quality and technicalspecification outlined in the Contract.

6.5.2 Condition Assessment

On completion of the bolting of the Demountable the Demountable Contractor, inconjunction with the RAMU, must carry out a condition assessment of thebuilding being installed. The parties will also complete a Repairs Checklist whichoutlines the repairs to be completed and an estimate of the cost. TheDemountable Contractor is responsible for completing these repairs.

6.5.3 Building Handover InspectionThe Demountable Contractor will advise the RAMU when it considers that thedemountable is fully installed and ready for occupation. The RAMU willcoordinate a building handover inspection with the Demountable Contractor andthe Facility Manager.

A visual inspection (excluding the roof area) is carried out by all present at thehand over. During the inspection the RAMU will record whether components areacceptable or unacceptable and note any remedial action that is required.

A visual inspection of roofs is not possible at this time due to the difficulties inobtaining access to the roof area whilst the site is still in the possession of the

Demountable Contractor. Therefore, the Demountable Contractor must, prior tothe handover inspection, provide the RAMU with a statement confirming that theroof is waterproof. A minimum of 6 x 6x4 photographs confirming the conditionof the building roof area, cappings and fixings should be attached to thestatement.

Based on the outcome of this inspection the RAMU may decide to:

Accept handover of the building;

Accept an interim handover of the building subject to the DemountableContractor attending to minor issues; or

Not accept handover, where the issues raised are of a major nature orneed to be completed prior to occupancy.

6.5.4 Attending to Defects

Where the building is not considered fit for occupation, or minor issues need tobe addressed, the RAMU will direct the Demountable Contractor to carry outrepairs to the identified areas.

The Demountable Contractor will advise the RAMU when the works have beencompleted and the RAMU will carry out a return inspection. If the RAMUdetermines that the work is acceptable then the procedures outlined in Section6.5.5 below should be followed.


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If the Demountable Contractor does not carry out the required repairs or theRAMU decides that remedial work is defective, the RAMU will either:

Provide details to the Demountable Contractor and direct them to makegood; or

Escalate the issue through the Demountable Contracts DisputeResolution process

6.5.5 Building Handover and Data Capture

When all areas of the building that are the responsibility of the DemountableContractor are considered to be without fault, the RAMU will:

Complete the appropriate handover documentation;

Accept handover of the building from the Demountable Contractor;

Enter any equipment in the Demountable into the Data Capture

Spreadsheet as per the procedure for Data Capture (Section 17.1.2 ofthe Maintenance Procedures);

Provide all necessary details to the PW-AP via email within 5 workingdays of handover and instruct them to include the maintenance andcleaning of the Demountable in the contract; and

Confirm the handover to the DET Demountable Coordination Unit andrequest that they update AMS.

Within 2 working days of receiving the handover advice from the RAMU the PW-AP will instruct the Contractor that the building has been included in the

Maintenance Contract and that they are immediately responsible for maintainingthe building and for including relevant items in their Routine and Preventive &Statutory Maintenance programs.

The Demountable Coordination Unit will also provide the Contractor on a monthlybasis with a copy of the Demountable Movements Report. The report lists allmovements of demountable buildings affecting Facilities, including the buildingidentification numbers. On receipt of this information the Contractor mustimmediately:

Commence cleaning and / or maintenance services to the demountablemodules once they are handled over to DET; or

Delete cleaning / maintenance services to the demountable modulesonce they are removed from a site.


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PART 2

MAINTENANCE

Asset Management Directorate


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MAINTENANCE P R O C E D U R E S


New South Wales Department of Education and Training, 2010

This document contains information proprietary to the New South Wales Department ofEducation and Training (DET). It may not be reproduced or stored in any retrieval system,transmitted in any form, disclosed or used whole or in part without the express consent of the

Department. All rights reserved.

Version control


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T A B L E O F C ONTENTS

1 INTRODUCTION 1

2 FAC ILITY MANAGE R AUTHORITY AND COMMUNICATION WITH THEC O N T R A C T O R 3

2. 1 S INGLE P OINT OF C ONTA CT 3

2. 2 C OOR DINATION WITH THE F ACILITY MA NA GER 32. 3 AUTHORISA TION OF F ACILITY MA NA GER 32.3.1 Authority of the Facility Manager 32.3.2 Delegation of Authority 32.3.3 Engaging the Contractor to Provide Additional Minor Services 42. 4 AUTHORISA TION OF THE R A MU AN D DE T FMP UNIT 42. 5 F ACILITY S IT E V ISIT L OG 42. 6 MAINTENANCE S E R V I C E MANUAL 42.6.1 Information in the Manual 42.6.2 Updating the Service Maintenance Manual and Schedules 5

2. 7 FMWE B 5

2. 8 MEETINGS A ND R E P O R T I N G 52. 9 C OMMUNICATION B E T W E E N C O N T R A C T O R S 5

3 PR E VE NT IVE A ND ST A T UT OR Y MA INT ENA NCE 73. 1 OV E R V IE W O F P R O C E S S 73. 2 W HA T DOE S P R E V E N T I VE A ND ST AT UT OR Y MAINTENANCE C O V E R 83. 3 E XTENT OF W O R K S 8

3. 4 S CHEDULING OF THE W OR K 103.4.1 Development of the Preventive & Statutory Maintenance Program 103.4.2 Coordination with the Facility Manager 103.4.3 Minor Program Changes 11

3. 5 C OMPLETING THE P R E V E N T I V E & ST AT UT OR Y MAINTENANCE P R O G R A M 113.5.1 Administrative Requirements 113.5.2 Out-of-Service Notices 113.5.3 Replacement of Preventive and Statutory Maintenance Items 12

3. 6 R E V I E W O F P R O G R A M DE L I V E R Y 133. 7 AUDITING THE QUALITY OF WO R K S 143.7.1 Overview of Audit Process 143.7.2 Review of Standards 153.7.3 Determining the Audit Schedule 153.7.4 Undertaking the Audit 15

4 ROUTINE MAINTENANCE 17

4. 1 OV E R V IE W O F T H E P R O C E S S 174. 2 W HAT IS R OUTINE MAINTENANCE 184. 3 E XTENT OF W OR K 184.3.1 Roofs, Gutters, Downpipes and Storage Tank Cleaning 184.3.2 Cleaning of Stormwater Pits and Grated Drains 194.3.3 Ease and Adjust Doors including hardware and fittings 194.3.4 Replacement of Routine Maintenance Items 194. 4 C OOR DINATION WITH THE F ACILITY MA NA GER 19

4. 5 R OUTINE MAINTENANCE R EQUIREMENTS 204.5.1 Routine Maintenance Adjustments 204.5.2 Facility Review of Routine Maintenance Services 204. 6 F INALISING THE P ROGR A M A ND C OMPLETING THE W OR K 21

4.6.1 Finalising the Program 214.6.2 Completing the Work 22


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4.6.3 Update of Asset Register 224.6.4 Management Review of Initiative 224. 7 AUDITING OF R OUTINE MAINTENANCE 234.7.1 Overview of Process 234.7.2 Developing the Audit Schedule 24

4.7.3 Preparing for, and Completing the Audit 24

5 M AIN T E N AN C E E X T R A T A S K S 275. 1 OV E R V IE W O F P R O C E S S 27

5. 2 W HAT IS MAINTENANCE E X T R A T AS K S 285. 3 W HA T ITE MS AR E C O V E R E D U ND E R ME T 285. 4 R AISING A R E Q U E S T F O R ME T 295. 5 AD DR E S S I NG T H E IS S U E 29

6 R E A CT IVE MAINT E NA NCE 316. 1 OV E R V IE W O F P R O C E S S 316. 2 W HAT IS R E A C T I V E MAINTENANCE 326. 3 R AISING A R E A C T I V E MAINTENANCE C AL L 32

6. 4 AD DR E S S I NG T H E IS S U E 326. 5 F A IL U R E T O R E S P O N D 336. 6 R E P O R T I NG O N R E A C T I V E MAINTENANCE R E P A I R S 33

7 IT EMS BE YOND EC ONOMIC R E PA IR 35

7. 1 OV E R V IE W O F P R O C E S S 357. 2 E S T A B L I S H I N G ITE MS AS B EING B E Y O N D E CONOMICAL R EPA IR 367. 3 R E V I E W S INITIA TED BY THE PW-AP 36

7. 4 R E V I E W S INITIA TED BY THE C O N TR A C T O R 37

7. 5 C ONFIRMING THE C O S T O F R E P L A C E M E N T 377. 6 R E P L A C E M E N T P R O C E D U R E 38

8 PR OGR A MMED MA INT ENA NCE 398. 1 OV E R V IE W O F T H E P R O C E S S P R O G R A M DE V E L O P M E N T 398. 2 INTRODUCTION 408. 3 ALLOC A TION OF F UNDS AND DE V E L O P ME N T O F P R O G R A M S 408.3.1 Regional Allocations 408.3.2 Facility Allocations 408.3.3 Development of the Facilitys Programmed Maintenance Program 418. 4 DEVELOPING THE B RIEF A ND E STIMATING C O S T S 428. 5 F INALISING THE F ACILITY S P R O G R A M M E D MAINTENANCE P R O G R A M 428.5.1 Expenditure Shortfall 428.5.2 Budget Shortfall 428. 6 DETE RMINING THE P R O C U R E M E N T STR AT E G Y 43

8.6.1 Overview of Process 438.6.2 Procurement Options 44

8. 7 OB TAINING AND R EVIEWING QUOTATIONS 448.7.1 Bundles Over the Pre-Tender Estimate 458.7.2 Approval 468. 8 C ONFIRMING MA R K E T V ALUE 47

8. 9 S P E C I A L R E Q U IR E M E N T S F O R R E P L A C E M E N T S 47

9 P R O C U R E ME N T O F F L O OR C O V E R I NG S 519. 1 OV E R V IE W O F P R O C E S S 519. 2 OV E R V I E W 529. 3 P R O C U R E M E N T B Y T H E C ONTRA CTOR 52

9. 4 P R O C U R E M E N T B Y T H E R A MU 53


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10 R E Q U E S T I NG M AIN T E N A NC E W O R K ( C A L L O UT S ) 55

10.1 OV E R V IE W O F T H E P R O C E S S 5510.2 R E Q U E S T I N G MAINTENANCE WO R K S 5510.2.1 Essential Urgent Repairs (EUR) 5510.2.2 Insurance Work 56

10.2.3 Breakdown Repairs 5610.3 MAKING A C A LLOUT 5610.4 R ECEIVING A C A LLOUT R E Q U E S T 57

10.5 R E S P O N S E T IMES FOR C A LLOUT R E Q U E S T S 57

10.6 ITE MS NOT C O V E R E D B Y T H E MAINTENANCE C O N TR A C T 58

11 E S S E N TIA L UR G E NT R E P A IR S 5911.1 OV E R V IE W O F P R O C E S S 59

11.2 W HA T A RE E S S E N T I A L UR G E N T R E P A I R S 6011.3 INITIAL R E S P O NS E B Y T HE C O N TR A C T O R 6011.4 OBTAINING F INANCIAL AP P R O V A L S 6011.5 C OMPLETING THE WOR K 61

11.6 INVES TIGA TIONS A ND R E P O R T S 62

12 L OCA L CONT R A CT OR INIT IA T IVE 6312.1 OV E R V IE W O F P R O C E S S 6312.2 INTRODUCTION 64

12.3 C ONTRA CTOR MA NA GEMENT F E E 6412.4 NOMINATION P R O C E S S 6412.5 C ONTRA CTOR AS S E S S M E N T P R O C E S S 6512.6 P A YMENTS & R E P O R T I N G 66

13 PA YMENT S 6713.1 OV E R V IE W O F P R O C E S S 6713.2 C LAIMS P R O C E S S 67

13.3 R E V I E W O F C LAIM B Y PW-AP 6813.4 P R O C E S S I N G O F C LAIMS 68

14 G E N E R A L C O NT R A C T P R O V I S I ON S 7114.1 T R A DE QUALIFICATIONS 71

14.2 C ONTRA CTOR AC C E S S T O F ACILITIES 7114.2.1 Access to All Elements / Assemblies 7114.2.2 Removal of Furniture and Stores for Access for Maintenance Work 7114.3 T R E A T ME N T O F DA NGEROUS G OODS 7114.3.1 Hazardous Substances 7114.3.2 Capacitor Removal and / or Replacement 7214.3.3 Treatment of Asbestos Material 72

14.3.4 Treatment of Lead Paint 7314.3.5 Inflammable Liquids and Dangerous Substances 74

14.4 F A CILITIES WITH HE R I T A G E S IGNIFICANCE 74

15 C H IL D P R O T E C T I O N S C R E E N IN G 7515.1 S C R E E N I N G R EQUIREMENTS 7515.1.1 Overview of Process 7515.1.2 General Requirement 7615.1.3 Applying for Clearance 7615.1.4 Contractor Evaluation 7615.1.5 Issues Arising After Clearance 7715.2 AUDITING OF C HILD P R O T E C T I O N S C R E E N I N G 77

15.2.1 The Audit Process 7715.2.2 Overview of Audit Process 78


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15.2.3 Processing Audit Outcomes 79

16 IT EMS COVER ED A ND E XCL UD ED UNDER GE NER A L MA INT ENA NCE 8116.1 E L E M E N T S INCLUDE D IN G E N E R A L MAINTENANCE 8116.2 C O N T R A C T E XCLUSIONS 82

16.2.1 Facilities 8216.2.2 Wilful Damage or Damage Caused by Misuse of Items 83

17 D EVE L OPING A ND MAINT A INING A SS ET R EG IST E R S 8517.1 UPDATING AS S E T DE T A I L S 8517.1.1 Data Capture by the Building Contractor (Minor and Major Capital Works) 8517.1.2 Data Capture by the RAMU 8517.1.3 Data Capture by the Maintenance Contractor 8617.1.4 Varying Items into the Asset Maintenance Contract 86

17.2 B UILDING E QUIPME NT AND A S S E T R E G I S T E R 8717.3 C ONDITION AS S E S S M E NT OF B UILDINGS AND E X T E R N A L F A CILITIES 8717.3.1 Purpose of the Condition Assessment 8717.3.2 Assessment Process 8717.3.3 Close Out Interview 8817.4 C ONDITION AS S E S S M E NT OF B UILDING S E R V I C E S A N D E QUIPMENT ITE MS 8817.4.1 Completing the Condition Assessment 8817.4.2 Identification of Unsafe Practices 9017.4.3 Addressing Out of Service and Not Inspected Items 9017.4.4 Condition Assessment Audits 90

18 A SSET MA INT ENA NCE ST A ND A R D S 91

18.1 P U R P O S E O F T HE AS S E T MAINTENANCE ST AN DA R DS 91

18.2 T ER MINOLOGY IN THE AS S E T MAINTENANCE ST AN DA R DS 9118.2.1 Elements, Assemblies, Sub-assemblies and Components 9118.2.2 Key Results Areas (Attribute) 92

18.2.3 Minimum Performance Standard, Unacceptable Condition or Performance 9218.2.4 Reactive Maintenance Response Time 92


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1 INTRODUCTION

The DET Maintenance Program aims to provide safe and effective Facilities. AMaintenance Contractor has been assigned to each Facility in the State to

provide maintenance services. The Contractor must provide a 24 hour a day, 7day a week, single contact point (Call Centre) to all Facility Managers to enablethem to make enquiries and report issues. Where separate Cleaning andMaintenance Contracts are awarded, the two Contractors must work together toprovide Facility Managers with a Virtual FM approach to the servicesdelivered.

The services provided by the Contractor are extensive and include:

Preventive and Statutory Maintenance (Section 3- Page 7)

Preventive and Statutory Maintenance refers to the regular maintenance and

inspection works provided by the Contractor to ensure that the certainelements comply with the Minimum Performance Standards and all StatutoryRequirements. The items generally have OH&S implications if not fullyoperational and therefore need to be maintained and serviced on a regularbasis.

Routine Maintenance (Section 4 - Page 17)

Routine Maintenance is regular maintenance to ensure continual operation ofselected items so that they meet the Minimum Performance Standards. Withsome exception, Facility Managers can decide which of the Routine

Maintenance services should be undertaken at their Facility. Where theservice is not provided, the savings will be added to the Facilitys ProgrammedMaintenance budget.

Maintenance Extra Tasks (Section 5 - Page 27)

Maintenance Extra Tasks are works required to restore the functionality ofselected elements back to the Minimum Performance Standards.

Reactive Maintenance (Section 6 - Page 31)

The Contractor is required to provide a Reactive Maintenance service to each

Facility for all Preventive and Statutory Maintenance and RoutineMaintenance items. The full extent of Reactive Maintenance repairs must beundertaken within the response times specified for each item in the AssetMaintenance Standards.

Programmed Maintenance (Section 8 - Page 39)

Programmed Maintenance is maintenance works to rectify / replace buildingand grounds elements to ensure that an asset continues to provide its pre-determined service capacity and quality and achieves its expected useful life.Facility Managers, in consultation with the Regional Asset Management Unit(RAMU), are responsible for determining their Programmed Maintenance

priorities after reviewing the condition assessment data.


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Essential Urgent Repairs (Section 11 - Page 59)

Essential Urgent Repairs (EUR) is repairs which the Facility Managerconsiders are needed immediately and are generally of a breakdown nature.

They may be causing damage to other elements of the Facility or threateningthe health, safety, or security of the Facility and/or its occupants.

Insurance Works (Section 10.2.2 - Page 56)

Insurance repairs are repairs to building elements affected by maliciousdamage outside of Facility hours (break & entry, graffiti, etc); or by fire, stormor accidental damage. Insurance only covers damage caused by a singlefortuitous event i.e. damage or loss caused by one single unforeseen incidentwhich was not related to wear and tear or inherent fault.

The contract is administered on behalf of DET by the Department of Services,Technology and Administration Public Works (PW). All formal communicationwith the Contractor must be through the PW Authorised Person (PW-AP). TheRAMU provides support and advice to the Facility Manager on the developmentof maintenance programs and the delivery of maintenance services and is thefirst point of contact where the Facility Manager has issues with the servicesprovided by the Contractor.

Maintenance needs are based on statutory and operational requirements, thecondition of building elements at the Facility, the level of funding available andeducational priorities. Facility Managers have the opportunity to prioritiseProgrammed Maintenance and Routine Maintenance at their Facility in

consultation with the RAMU. The RAMU, in consultation with the PW-AP,organises the work and makes payment on behalf of the Facility Manager.

Elements which need to be fully compliant and operational are inspected andmaintained by the Maintenance Contractor on an ongoing basis under thePreventive and Statutory Maintenance Program.

Contract management software, FM Web, keeps a record of maintenancerequests, actions and payments. Facility Managers use this software to logsecurity incidents, log repair callouts directly with the contractor and to view theprogress of works at the Facility.


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2 FAC ILITY MANAGE R AUTHORITY AND COMMUNICATIONWITH THE CONTR ACTOR

2. 1 S INGLE P OINT OF C ONTACT The Contractor must provide a 24 hour a day, 7 day a week, single contactpoint (Call Centre) to all Facility Managers to enable them to make enquiriesand report issues. The Contractor will provide each Facility Manager with thename, telephone/fax number, and email address of the contact and ensure thatthese details are kept up to date.

2. 2 C OORDINATION WITH THE F ACILITY MA N A G E R

The Contractor must coordinate all maintenance works with the Fa

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