Notes to Tenderers

DEVELOPMENT BUREAU LIBRARY OF STANDARD NOTES TO TENDERERS FOR NEC TSC

Index NTT 1 Location of tender box NTT 2 Pre-tender meeting NTT 3 Clarifications from Service Manager designate NTT 4 Check list for tenders deposited in the tender box NTT 5 Destruction of documents NTT 6 Changes in status of qualifications NTT 7 Formula Approach NTT 8 Marking Scheme Approach NTT 9 Procedures for opening tenders NTT 10 Bid challenge (WTO GPA) NTT 11 Assessment of EMSTF offer NTT 12 Not Used NTT 13 MTRC indemnity NTT 14 Electronic submission NTT 15 Site cleanliness and tidiness – Daily Cleaning and Weekly Tidying NTT 16 Site Safety Cycle NTT 17 Constraints on Service Manager’s power NTT 18 Regulating actions on inappropriate conducts NTT 19 Proof of plant ownership NTT 20 Net present value analysis NTT 21 Trip Ticket System NTT 22 Systematic Risk Management NTT 23 Risk Register NTT 24 Waste Disposal (Charges for Disposal of Construction Waste) Regulation NTT 25 Environmental management NTT 26 Non-contractual partnering

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 1 of 34 NTT 27 Tree preservation NTT 28 Professional indemnity insurance

NTT 29 Employing Site Workers for this contract and payment of Site Workers’ wages NTT 30 Not Used NTT 31 Regulating actions on poor records of non-payment of wages to site workers by the Contractor NTT 32 Not Used NTT 33 Limiting the tiers of subcontracting NTT 34 Regulating action (serious incident or conviction for site safety or environmental offences) NTT 35 Mechanical dump truck covers NTT 36 Anti-collusion NTT 37 Site uniform NTT 38 Contingency sums, provisional sums and forecast total of the Prices** / Total Value for Tender Assessment (TVTA)** NTT 39 Employer’s power to reduce contingency sums for compensation events NTT 40 Contractor Cooperative Training Scheme (CCTS) NTT 41 Employment of Graduates of the Enhanced Construction Manpower Training Scheme (ECMTS) NTT 42 Dispute Resolution Advisor system NTT 43 Not Used NTT 44 Tree pruning works NTT 45 Not Used NTT 46 Conditions of contract NTT 47 Not Used NTT 48 Estimated Total Expenditure *and Provisional Quantities NTT 49 Weighting Factors in the Schedule of Percentages NTT 50 Number of Term Service Contracts to be Awarded to One Single Contractor

* Alternatives ** Delete as appropriate

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 2 of 34 Clause Remarks/Guidelines

NTT 1 Location of tender box

*[The tender box is located at the Lobby of the * Delete as appropriate. Public Entrance on the Ground Floor, East Wing, 1For tenders to be opened by the tender Central Government Offices, 2 Tim Mei Avenue, opening teams of the Central Tender Tamar, Hong Kong..]1 Board. Any interim arrangement is subject to review and update by FSTB periodically. Project officers are required to check the latest arrangement.

*[The tender box is located in Room 4128f on the 41st 2For tenders to be opened by the tender Floor, Queensway Government Offices, 66 opening teams of the Public Works Queensway, Hong Kong.]2 Tender Board

NTT 2 Pre-tender meeting [Optional Clause]

(1) The date, time and venue of the pre-tender WBTC No. 4/92 meeting are as follows:

Venue:

(2) The tenderer shall make his own arrangement of the transportation for attending the pre-tender meeting.

(3) The tenderer is required to complete the Reply Slip at Appendix [insert appropriate reference] to these Notes to Tenderers to confirm if he will attend the pre-tender meeting and nominate his representatives (not more than [insert appropriate number] persons) who will attend the pre-tender meeting. The completed Reply Slip is required to be submitted to the Service Manager designate by fax and post at the fax number and address stated in the Reply Slip by 5:00 p.m. on [insert appropriate date].

NTT 3 Clarification from Service Manager Designate

Should the tenderer for any reason whatsoever be in Advice directing tenderers to submit any doubt about the precise meaning of any item or figure queries about the particulars of the contained in the documents he shall seek clarification tender documents to the Service from the Service Manager designate [Insert post title Manager designate preparing the tender of Government officer / company name and contact documents (the contact telephone and details as appropriates.] fax numbers for enquiries should be included).

NTT 4 Check list for tenders deposited in the tender box

(1) Before the tender is sealed and delivered to * Delete where appropriate. the *Government Secretariat Tender Box / *Public # Please update the figure where Works Tender Box, please check the following: appropriate. (a) The tender has been properly signed and the Please refer to Appendix 5.8 of Chapter signature witnessed. 5 of the Project Administration (b) All the documents issued with or requested in the Handbook). tender such as acknowledgements of receipt of corrigenda or addenda, are properly completed and attached to the tender.

(c) Copies of the Form of Tender, Contract Data Part two including priced Schedule of Percentages are attached to [*the tender / * Tender Price Documents]. The *Central Tender Board / *Public Works Tender Board will make copies of the Form of Tender, Contract Data Part two including priced Schedule of Percentages on behalf of tenderers who have failed to submit copies of such documents and a charge of *[#$10] /*[#$14] or such amount as advised by the *Secretary for Financial Services and the Treasury / *Chairman of the Public Works Tender Board periodically will be levied for each page so copied.

(d) The envelope or cover holding the tender does not bear the name of the tenderer but the tender reference

or contract number and the closing date should be shown on the cover.

(2) The tenderer should also note the following:

(a) Unless otherwise indicated, plans and drawings issued with the tender documents shall not be returned and deposited in the *Government Secretariat Tender Box / *Public Works Tender Box, such drawings are to be returned to the issuing office after submission of the tender.

(b) Samples, if called for, should be submitted separately to the issuing office inviting the tenders with the tender reference or contract number indicated clearly on the cover, and should not be deposited in the *Government Secretariat Tender Box / *Public Works Tender Box.

(c) The tender that is bulky should be wrapped properly with strong paper which is unlikely to break when the tender is being deposited in the Tender Box. The tender with a size exceeding 0.1m² and a thickness of more than 30cm should be separated into smaller parcels, each parcel to be properly labelled.

(d) For tender submission in electronic format, the tender opening team will make copies of the required documents on behalf of the tenderer who has failed to submit the required duplicate in electronic format. The tenderer may be asked to bear the cost of making the duplicate at a charge of [#$49] per electronic file and a material charge of [#$1.1] per CD-ROM and [#$1.3] per 4.7GB DVD+/-R, or such amount as advised by the *Secretary for Financial Services and the Treasury / *Chairman of the Public Works Tender Board periodically will be levied for each duplicate

so made.

(3) Please allow adequate time for your tender to be delivered to the *Government Secretariat Tender Box / *Public Works Tender Box. The Tender Box is closed on the tender closing day, which will be a Friday, as soon as the 12:00 noon time signal is broadcast by a local radio channel and the staff of the *Central Tender Board / *Public Works Tender Board are under strict instruction not to accept the tender that is delivered after the closing time. However, if a rainstorm black warning or typhoon signal No. 8 or above is hoisted between 9 a.m. and 12 noon on the tender closing day, the tender closing time will be extended to 12 noon on the first working day of the following week. An announcement of the extension of the tender closing time will be made through the radio (by the Financial Services and the Treasury Bureau) immediately after 9 a.m. or immediately after the signal/warning has been hoisted. In order to ensure that your tender is deposited in the Tender Box well before the closing time, you should as far as possible arrange for the tender to be deposited before the closing date.

(4) The tenderer may rest assured that no person is allowed access to the tender that has been deposited in the *Government Secretariat Tender Box / *Public Works Tender Box until after the closing time when they will be removed by authorized personnel.

NTT 5 Destruction of documents

Documents of unsuccessful tenderers may be Advice to tenderers that documents of destroyed *three months1/three years2 after the date unsuccessful tenderers will be destroyed this contract has been awarded. at certain time after the date of the contract has been awarded and the

agreement signed (See SPR 530).

* Delete where appropriate 1 for tenders not covered by WTO GPA. 2 for tenders covered by WTO GPA. (See DEVB TCW No. 2/2014) Before destruction, Project Offices are required to check whether on-going disputes may require retention of these documents as evidence. Please consult LAD(W) if in doubt.

NTT 6 Changes in status of qualifications

The tenderer should inform the Government in his Advice to tenderers to inform the tender submission of any factor which might affect Government of any factor which might his status of qualifications. The Government reserves affect the tenderer’s qualified status (See the right to review the tenderer’s qualified status in SPR 330). the light of any new information relevant to his qualifications.

NTT 7 Formula Approach [Optional Clause]

(1) Tenders will be evaluated in accordance with To be used for tender evaluation using the formula approach set out below. Tenderers Formula Approach. should note DEVB TC(W) No. 4/2014 which sets out the use of the Formula Approach for tender Please refer to DEVB TCW No. 4/2014. evaluation. Tenderers shall note that the Government is not bound to accept the tender with * Delete where appropriate. the highest overall score or any tender and may ** For use in tenders which EMSTF is cancel the tender exercise on public interest eligible to bid ground. In considering the acceptance of a tender, the Government will take account of all relevant circumstances including the following :- (i) The overall score; (ii) The effect of incident of payments by discounting future payments to obtain the present values and use the present

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 7 of 34 Clause Remarks/Guidelines values to substitute the forecast total of the Prices* / Total Value for Tender Assessment (TVTA)* in determining the ranking of the tenders, if the forecast total of the Prices* / TVTA* /overall scores are very close; (iii) The effect of exceptionally high or low priced items; (iv) The tenderer’s capability (financially, commercially and technically) in undertaking this contract. For the avoidance of doubt, matters such as bankruptcy, false declaration, lack of integrity, acts of dishonesty, the latest available information and reports reflecting serious shortfall in performance and the latest available information and reports relating to serious site safety or environmental incidents may be taken into account in determining whether a tenderer is fully capable of undertaking this contract [**. For tenders submitted by EMSTF, the letters of “non-compliance” issued by the relevant regulatory authorities shall also be treated as conviction records]; and (v) The effect of erratic pricing determined in accordance with Clause GCT 14 of the General Conditions of Tender.

[Set out the details of the Stage I Screening and all the minimum requirements where applicable and the consequences of failing Stage I Screening.]

(2) The Formula Approach for tender evaluation will take into account the forecast total of the Prices* / TVTA* and the tenderer’s past performance under public works contracts. With respect to each conforming tender, a combined price and performance (overall) score will be worked out in accordance with the formula below. Normally, the tender with the highest overall score should be recommended for acceptance, subject to the usual requirement that the procuring department is satisfied that the recommended tenderer is fully capable (including technically, commercially and financially) of undertaking this contract, and that the recommended tender is the most advantageous to the Government in accordance with the tender provisions.

60 x the lowest forecast total of the Prices* / TVTA* among those conforming tenders

the forecast total of the Prices* / TVTA* of the tenderer

+ 40 x the tenderer’s performance score

the highest performance score among those conforming tenders

(3) For the purpose of calculation using the formulae above, a conforming tender means a tender

(a) conforms to the essential requirements of the tender documentation; *and

(b) is submitted by a tenderer which complies with the conditions of participation*. / *; and

*(c) has passed the Stage I Screening where applicable.

A conforming tender with abnormally low or high contract percentages in the Schedule of Percentages or which is considered unsuitable for recommendation for the award of this contract (such as financially, commercially or technically incompetent) remains to be a conforming tender.

(4) The “performance score” in the above formulae for each tenderer is the sum of the “performance rating” and the “safety rating” as explained below.

(5) The “performance rating” means the performance rating held in the DEVB’s Contractors’ Performance Index System (CMIS) on the original date set for the return of tenders or, if this has been extended, the extended date. The maximum rating in the CMIS is 100. If a tenderer has been enlisted by way of substitution, the performance rating of this tenderer as recorded in the CMIS will take into account the past performance of the previous contractor. If a tenderer does not have a rating on the particular date, he shall be assigned an average rating based on the ratings of the other tenderers who have submitted a conforming tender. For joint venture

tenderers, the “performance rating” shall be the weighted average of the performance ratings of the participants or shareholders in accordance with their shares of work by value. If no performance records are available to a participant/shareholder of a joint venture, the rating of this joint venture shall be taken as the rating of the other participant/shareholder. If there are more than one other participant/shareholder in this joint venture, the performance rating of this joint venture shall be the weighted average of the performance ratings of the remaining other participants/shareholders in accordance with their shares of work by value.

(6) The “safety rating” is worked out from the past accident rates under public works contracts as per the accident and records of man-hours worked kept in DEVB’s PWP Construction Site Safety & Environmental Statistics (PCSES) for three 12-month periods fixed by reference to the original date set for the close of tender or, if this has been extended, the extended date, according to the method below:-

The three 12-month periods shall end on the last day of the calendar month immediately preceding the dates being 2 months (1st 12-month period), 14 months (2nd 12-month period) and 26 months (3rd 12-month period) respectively counting back from but excluding the original date set for the close of tender or, if this has been extended, the extended date. A table showing the three 12-month periods and measuring dates for tender closing dates is given below for illustration purpose.

(7) The following formula shall be used for calculating the accident rates for the concerned 12- month periods: -

Accide (No. of non- (No. of fatal nt Rate fatal reportable accidents in the = accidents1 in period) the period)

Total no. of man-hours worked in the period/100,000 man-hours

1 Reportable accidents mean those accidents resulting in an injury with incapacity for more than three days and all fatal accidents.

(8) For “safety rating”, the maximum total is 7.5 for the total of the three 12-month periods for the first, second and third 12-month periods respectively. Each tenderer’s safety rating is worked out by reference to the table below and shall be the sum of the three ratings corresponding to the three 12-month

periods.

Tenderer’s Rating Accident Rate* 1st 2nd 3rd 12- 12-month 12- month month accident rate ≤ 3.7500 2.2500 1.500 25% of the limit # 25% of the limit 2.8125 1.6875 1.1250 < accident rate ≤ 50% of the limit 50% of the limit 1.8750 1.1250 0.7500 < accident rate ≤ 75% of the limit 75% of the limit 0.9375 0.5625 0.3750 < accident rate ≤ 100% of the limit accident rate > 0 0 0 100% of the limit

* The unit of accident rate is number of accident per 100,000 man-hours worked.

# The limit of accident rate currently set by DEVB is 0.6.

(9) If a tenderer does not have an accident rate for a particular 12-month period (on the ground of no man-hour worked for that period), the accident rate to be used for that period shall be the average of accident rates for the other two periods. If a tenderer has an accident rate for one of the three 12-month periods only, that accident rate shall be used for calculating the safety rating for the other two 12- month periods.

(10) For tenderers without any accident rate for the past three 12-month periods, the safety rating shall be the overall average safety rating attained by the other tenderers who have submitted a conforming tender.

(11) For joint venture tenderers, the safety rating shall be the weighted average (in accordance with their shares of work by value) of the safety ratings of the individual participants or shareholders which shall each be calculated in the above manner.

(12) Where there are two participants/ shareholders in a joint venture and there are no accident rates for the past three 12-month periods for a participant/shareholder, the safety rating of this joint venture for that particular period shall be the safety rating attained by the other participant/shareholder of this joint venture with accident rates. If there are more than one other participant/shareholder in this joint venture, the safety rating of this joint venture shall be the weighted average of the safety rating of those other participants/shareholders in accordance with their shares of the work by value.

(13) If none of the participants/shareholders of a joint venture has any accident rate for the past three 12-month periods, the safety rating of this joint venture shall be the average safety rating attained by the other tenderers who have submitted a conforming tender.

(14) In calculating the accident rates of each participant/shareholder of a past/existing joint venture contract, the accident rates of the whole joint venture contract shall be used and attributed to the participant/shareholder irrespective of his share of the work in the past/existing joint venture contract.

(15) For tenders invited from contractors of the Buildings category, the accident rates for completed and on-going contracts in the Buildings category only will be used in the calculation of the accident rates and the safety ratings for the assessment of tenders. For tenders invited from contractors from any category/categories other than the Buildings category, the accident rates for completed and on-going contracts in non-Buildings categories (i.e. all other categories) will be used. For tenders invited from contractors in more than one category including the Buildings category, the accident rates for all completed and on-going contracts in all categories will be used.

(16) For tenders with a forecast total of the Prices* / TVTA*, if the forecast total of the Prices* / TVTA* or the overall scores of the top few tenders are very close (usually the three with the highest overall score), the procuring department should consider discounting future payments to obtain the present value and use the present value instead of the forecast total of the Prices* / TVTA* in determining the ranking of the tenders. This calculation exercise should only apply to those top few tenders.

NTT 8 Marking Scheme Approach [Optional Clause]

(1) Tenderers should note that tenders will be To be used for tender evaluation using evaluated in accordance with the Marking Scheme Marking Scheme Approach. at Appendix [insert appropriate reference] to these Notes to Tenderers. Tenderers should note DEVB Please refer to DEVB TCW No. 4/2014. TC(W) No. 4/2014 which sets out the use of * Delete where appropriate. Marking Scheme Approach for tender evaluation. Tenderers shall note that the Government is not ** For use in tenders which EMSTF is bound to accept the tender with the highest overall eligible to bid score or any tender and may cancel the tender exercise on public interest ground. In considering #Please insert appropriate reference. the acceptance of a tender, the Government will take account of all relevant circumstances including the following :- (i) The overall score; (ii) The effect of incident of payments by discounting future payments to obtain the present values and use the present values to substitute the forecast total of the Prices* / Total Value for Tender Assessment (TVTA)* in determining the ranking of the tenders, if the tender prices/overall scores are very close; (iii) The effect of exceptionally high or low priced items; (iv) The tenderer’s capability (financially, commercially and technically) in undertaking this contract. For the avoidance of doubt, matters such as bankruptcy, false declaration, lack of integrity, acts of dishonesty, the latest available information and reports reflecting serious shortfall in performance and the latest available information and reports relating to

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 16 of 34 Clause Remarks/Guidelines serious site safety or environmental incidents may be taken into account in determining whether a tenderer is fully capable of undertaking this contract [**. For tenders submitted by EMSTF, the letters of “non-compliance” issued by the relevant regulatory authorities shall also be treated as conviction records]; *and (v) *The effect of erratic pricing determined in accordance with Clause GCT 14 of the General Conditions of Tender.

(2) Tenderers are required to make a Technical Submission in accordance with Clause GCT 4 of the General Conditions of Tender, which will be taken into account in the tender evaluation. The submissions on technical resources and technical proposals shall form part of this contract. The contract percentages in the Schedule of Percentages submitted in the tender, subject to the correction(s) in accordance with Clause [#GCT 11] of the General Conditions of Tender where appropriate, is deemed to be inclusive of the execution of the service in accordance with the tender submissions on technical resources and technical proposals. Tenderers shall ensure that it is legally and physically possible to execute the service in accordance with the tender submissions on technical resources and technical proposals. Should the Contractor for any reason be unable to adhere to the tender submissions on technical resources and technical proposals, any cost savings to the Contractor arising therefrom shall be determined by the Service Manager and deducted from the Prices in accordance with Clause [#A2]

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 17 of 34 Clause Remarks/Guidelines of the additional conditions of contract. Tenderers’ attention is drawn to Clause [#A2] of the additional conditions of contract.

(3) The respective weights for price and technical score are 60/40. The overall score for each conforming tender is determined according to the formula below. Normally, the tender with the highest overall score would be recommended for acceptance subject to the requirement that the procuring department is satisfied that the recommended tenderer is fully (including technically, commercially and financially) capable of undertaking this contract, and that the recommended tender is the most advantageous to the Government in accordance with the tender provisions.

60 x the lowest forecast total of the Prices* / TVTA* among those conforming tenders

the forecast total of the Prices* / TVTA* of the tenderer

+ 40 x the tenderer’s technical score

the highest technical score among those conforming tenders

(4) For the purpose of calculation using the

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 18 of 34 Clause Remarks/Guidelines formula above, a conforming tender means a tender which (a) conforms to essential requirements of the tender documentation; (b) is submitted by a tenderer which complies with the conditions of participation; (c) has passed the Stage I Screening; and (d) in respect of his Technical Submission, has satisfied the passing marks requirements.

A conforming tender with abnormally low or high contract percentages in the Schedule of Percentages or a conforming tender considered unsuitable for recommendation for the award of this contract (such as financially, commercially or technically incompetent) remains to be a conforming tender.

(5) For tenders with a forecast total of the Prices* / TVTA*, if the forecast total of the Prices* / TVTA* or the overall scores of the top few tenders are very close (usually the three with the highest overall score), the procuring department should consider discounting future payments to obtain the present value and use the present value instead of the forecast total of the Prices* / TVTA* in determining the ranking of the tenders. This calculation exercise should only apply to those top few tenders. [Please disclose the full marking scheme including Stage I Screening where applicable. Disclose the weighting of each attribute in the technical evaluation, the marking standard and the assessment criteria. The information provided should be similar to those shown in Appendix C1 in DEVB TC(W) No. 4/2014, as well as any additional qualification requirements on tenderers as part of the Stage I Screening and/or any criteria of assessment specific to the needs of the contract. The consequences of

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 19 of 34 Clause Remarks/Guidelines failing Stage I Screening should be clearly stated.]

NTT 9 Procedures for opening tenders Tenders will be opened by the tender opening team of the [insert name of tender board] at 12 noon on the date set for the close of tender or, if this has been extended, the extended date at [insert location of tender box].

NTT 10 Bid challenge (WTO GPA) [Optional Clause]

(1) This tender is covered by the Agreement on Advice to tenderers of the bid challenge Government Procurement of the World Trade system under the WTO GPA (see SPR Organization (WTO GPA) and the provisions of Appendix III(E)1). Only needed for the WTO GPA will apply to this tender. Tenderers tenders governed by WTO GPA. are requested to note that a Review Body on Bid Challenges (under WTO GPA) (“the Review Body”) has been set up by the Government to deal with challenges made against alleged breaches of the WTO GPA and the relevant procedures for handling bid challenges are set out in the Rules of Operation of the Review Body (“the Rules”), which are available for inspection at the Secretariat of the Review Body located at the Trade and Industry Department or which may be sent to the interested parties upon request. In the event that a tenderer believes that a breach of the WTO GPA had occurred, the tenderer may, within 10 working days after he/she knew or reasonably should have known the basis of the challenge, lodge a challenge to the Review Body on the alleged breaches of the WTO GPA. Nevertheless, the tenderer is encouraged to seek resolution of its complaint in consultation with the procuring department before lodging a complaint to the Review Body. In such instances, the procuring department shall accord

impartial and timely consideration to any such complaint, in a manner that is not prejudicial to obtaining corrective measures through the Review Body. (2) Tenderers are also to note that the Review Body may receive and consider a late challenge but a challenge shall not be considered if it is filed later than 30 days after the basis of the challenge is known or reasonably should have been known.

NTT 11 Assessment of EMSTF offer [Optional Clause]

(1) Tenderers should note that tenders are Advice to tenderers about assessment of invited from contractors/suppliers* in both the private EMSTF’s (Electrical and Mechanical and public sectors including department(s) of the Services Trading Fund) offer (see SPR Government of the Hong Kong Special Appendix III(E)2, FC 7/2014 & WBTC Administrative Region whose operation of the No. 25/2001). This is to be used if services is managed and accounted for by trading Trading Fund is invited to tender. funds established pursuant to the Trading Funds * delete as appropriate. Ordinance, Cap. 430 (hereafter referred to as “the relevant trading fund department”).

(2) All tenders will be evaluated on a fair basis. Every effort has been and will be made by the Government to ensure that the relevant trading fund department would not undertake both the role of consultant and contractor in this tendering exercise and where appropriate, independent consultant has been or will be engaged for the preparation of the tender documents, assessment of tenders and subsequent monitoring on the performance of the contractor/supplier*.

(3) The Electrical and Mechanical Services Trading Fund (EMSTF) may submit a tender for this contract. A code of conduct for staff of the Electrical and Mechanical Services Department seconded to other department(s) is also in place for

the staff to observe to avoid conflict of interest and is available for inspection by tenderers.

NTT 12 Not Used

NTT 13 MTRC indemnity [Optional Clause]

Tenderers shall note that part of the service will Advice to tenderers about the take place in the vicinity of the MTR Kowloon- requirements to complete the MTRCL’s Canton Railway (Hong Kong) East Rail section, “Indemnity Form” and “Letter of Tsim Sha Tsui Extension, Lok Ma Chau Spur Line Undertaking” for service within or and Ma On Shan Rail section and that the adjacent to the MTR Kowloon-Canton Contractor shall be required to complete and Railway (Hong Kong) section, Tsim Sha return to the MTRCL an indemnity form and a Tsui Extension, Lok Ma Chau Spur Line letter of undertaking in accordance with Clause and Ma On Shan Rail section [XX]# of the Particular Specification before being boundaries. permitted to enter the railway zone. # Please insert reference clause reference.

ETWB TCW No. 2/2005

NTT 14 Electronic submission

(1) Tenderers may submit tenders in traditional Advice to tenderers about electronic hard copy format or partly in electronic format in submission of tender returns in accordance with Clause GCT 4 of the General removable media. Conditions of Tender. All tenders, whether in hard copy format or partly in electronic format, will be evaluated on an equal basis. Note:

(2) When submitting tenders in electronic # Please insert appropriate . format, tenderers are reminded to digitally sign their & The requirements have been set out in tenders in electronic format, which shall comply with Appendix 4 of ETWB TCW No. & the requirements set out in Appendix [#] to these 11/2005. Notes to Tenderers.

NTT 15 Site cleanliness and tidiness – daily cleaning and weekly tidying [Optional

Clause]

(1) Tenderers should note Clause [D10]# of the Advice to tenderers about enhanced site additional conditions of contract and Clause [XX]# cleanliness and tidiness. of the Particular Specification on “Site Cleanliness Please refer to DEVB TC(W) No. and Tidiness - Daily Cleaning and Weekly Tidying 8/2010. Up of the Site”. Cleaning Areas which are required for cleaning solely by the Contractor and have to be maintained open to the general public * Delete where appropriate. throughout the construction period. The Particular Specification shall be strictly enforced by the Service Manager.

(2) Failure to perform satisfactorily on Daily Cleaning and Weekly Tidying as specified in this contract with non-payment for two consecutive Cleaning Days or Cleaning Week Days, OR more than two Cleaning Days or Cleaning Week Days in any rolling five Cleaning Days or Cleaning Week Days can result in a verbal warning which shall be recorded in writing. If performance is not improved, a written warning will be issued which will result in “Poor” rating in the item for “Cleanliness of Site” in the report on the Contractor’s performance. If the performance is still not improved, the Service Manager may, at his sole discretion, issue further verbal warning which shall be recorded in writing or issue further written warning which will result in “Very Poor” rating in the item for “Cleanliness of Site” in the report on the Contractor’s performance.

NTT 16 Site Safety Cycle [Optional Clause]

Tenderers should note that this contract includes Advice to tenderers about requirements the Particular Specification on Site Safety Cycle for the implementation of Site Safety and the provision of welfare facilities for workers Cycle and the provisions of welfare at construction sites. facilities for worker.

Please refer to WBTC No. 30/2002.

* Delete where appropriate.

# Please update item name.

NTT 17 Constraints on Service Manager’s power (1) The tenderer’s attention is drawn to the Please refer to WBTC Nos. 19/2000, constraints on the Service Manager’s powers set out 20/2000 and 16/2002, ETWB TCW Nos. in Clause [B1]# of the additional conditions of 56/2002A and 6/2004, and DEVB TCW contract. No. 5/2007

(2) In addition to the above constraints, the Service Manager is also required under the terms of his appointment by the Employer to:

(i)refer the details of every change to the * Delete where appropriate. Service Information, including the # Please insert appropriate reference. reasons for the change, its estimated change to the Prices due to the associated compensation event or creation of a new item in the Price List, to the Employer for information as soon as the change is ordered;

(ii) refer the details of the evaluation to the Employer for information as soon as the change to the Prices due to the compensation event associated with the change to the Service Information or creation of a new item in the Price List has been determined;

(iii) report to the Employer all compensation events involving changes to the Prices or all creation of new items in the Price List and refer to the principles underlying his assessment of each compensation event or each new item in the Price List to enable the

Employer to provide his view of the matter before the Service Manager reaches a decision; and

(iv) report to the Employer all Please add any other constraints as compensation events involving delays to necessary and specified in the the Task Completion Dates and, except consultancy agreements other than the for those delays solely in respect of above. inclement weather conditions, refer to the principles underlying his assessment of each compensation event to enable the Employer to provide his view of the matter before the Service Manager reaches a decision.

NTT 18 Regulating actions on inappropriate conducts

Where the tenderer is involved in any of the Advice to tenderers about regulating inappropriate conducts as described in paragraph actions for withdrawal of tenders within 5.13.1 of the Contractor Management Handbook – the tender validity period. Revision B and which gives rise to reasonable suspicions as to his capability or integrity, regulating action may be taken against the tenderer in accordance with the terms thereof.

NTT 19 Proof of plant ownership Tenderers’ attention is drawn to Clause [D19]# of Please refer to ETWB TCW No. 9/2004. the additional conditions of contract on Hired and Hire-purchase Constructional Plant. [It is * Delete as appropriate. anticipated that proof of ownership and where applicable written undertaking from the plant owner may be required for the following types of ** Delete the words in square Constructional Plant: brackets if it is not considered practicable to produce a list of (provide list here) Constructional Plant for inclusion in Tenderers shall note that the above list is not the tender documents. exhaustive and is given for the tenderers’ reference only. The above list shall not form part of this # Please insert appropriate clause contract. The Service Manager may, in accordance reference.

with Clause [D19]# of the additional conditions of contract, require proof of ownership and where applicable written undertaking from the plant owner for any item of Constructional Plant which may or may not be of a type set out in the above list.]** NTT 20 Net present value analysis (1) A programme for the purpose of conducting a This is to be included for tenders with a net present value analysis in accordance with Note forecast total of the Prices* / Total Value NTT 7 of these Notes to Tenderers is included in for Tender Assessment (TVTA)* in Appendix [insert appropriate reference] of these conjunction with NTT 7 (1)(ii). Notes to Tenderers. This programme is for tender The programme should include some assessment use only and will not form part of this guidance notes on the allocation of contract. preliminary costs and the contingencies (2) The cashflow discount *[rate/rates] to be (including provisional sums and used for the aforesaid net present value analysis shall contingency sums) throughout the be [*a% per annum/*as follows : contract period to be used in net present value (NPV) analysis. The cashflow discount rate/rates shall Calendar Year Cashflow Discount Rate (per annum) be based on the real discount rate (i.e. a [Current year] x% %) for contracts subject to price [Next 4 years] y% fluctuation adjustment or the nominal [6th–10th year, if applicable] z%] discount rates (i.e. x%, y% and z%) for contracts not subject to price fluctuation (3) The cashflow discount *[rate/rates] provided adjustment, applicable on the first herein *[is/are] for tender assessment only and will publication date of tender invitation or, not form part of this contract. The cashflow discount where the tender invitation is not *[rate/rates] shall not be taken as the economic published+, the date of issuance of the forecasts by the Government. tender invitation, as announced in (4) The Government makes no warranties, Secretary for Financial Services and the representations or statements (whether express or Treasury’s memo to the departmental implied) of any kind whatsoever in relation to the STA around March each year. programme and the cashflow discount *[rate/rates] provided herein or any part thereof, including any *[ ] - Project Offices should include the warranties, representations or statements in respect of former for contracts subject to the accuracy, completeness, appropriateness and/or price fluctuation adjustment and the latter for contracts not subject

sufficiency of the same to price fluctuation adjustment, and delete the one which is not applicable accordingly.

+ The tender invitation is not published where prequalified tendering or single/restricted tendering is adopted.

Please refer to DEVB memo ref. DEVB(W) 545/17/01 dated 19.4.2010

NTT 21 Trip Ticket System The unauthorised disposal of construction and Please refer to DEVB TCW No. 6/2010. demolition (C&D) materials from the Site to any place other than that designated in this contract or approved or directed by the Service Manager is forbidden. The tenderer shall refer to the relevant part of the Particular Specification for detailed requirements on dealing with disposal of C&D materials. Failure to observe the requirements will result in regulating action. The tenderer is referred to DEVB TC(W) No. 6/2010 on the “Trip Ticket System for Disposal of Construction and Demolition Materials”.

NTT 22 Systematic Risk Management [Optional Clause] Tenderers should note that Systematic Risk Please refer to ETWB TCW No. 6/2005. Management in accordance with ETWB TCW No. 6/2005 and ETWB Risk Management User Manual Project Offices should list the relevant risks has been carried out for the service of this contract in the Contract Data Part one. and the risks that the Contractor is required to bear and be responsible for include without limitation to those shown in the risk treatment plans attached in Appendix [insert appropriate reference] of these

Notes to Tenderers. Tenderers should note that the list is not exhaustive and is given for the tenderers’ reference only. The list does not in anyway release the Contractor from any of his obligations under this contract. The list shall not form part of this contract.

NTT 23 Risk Register The tenderer should note that the matters to be included by the Employer in the Risk Register are included in the Contract Data Part one. The tenderer should list the additional matters he wishes to be included in the Risk Register in Contract Data Part two. The Risk Register will also include the risks which the Service Manager or the Contractor has notified as an early warning matter after the award of this contract in accordance with NEC Clause 11.2(14).

NTT 24 Waste Disposal (Charges for Disposal of Construction Waste) Regulation Tenderers should note that the Waste Disposal Waste Disposal (Charges for Disposal of (Charges for Disposal of Construction Waste) Construction Waste) Regulation Regulation made under the Waste Disposal Ordinance Cap 354 has come into operation since 1 The notes are applicable to contracts December 2005. Pursuant to Regulation 9, the with value $1M. Contractor who is awarded this contract should make ≧ an application to the Director of the Environmental Protection Department to establish a billing account Please refer to DEVB memo ref. within 21 days after being awarded this contract. The (00W45-01-9) in ETWB(W) 810/72/01 Contractor shall ensure that the billing account is dated 21.11.2005 used for paying any prescribed charge in respect of construction waste generated from the service under this contract. Non-compliance of these provisions are offences under the Regulation.

NTT 25 Environmental management [Optional Clause] Tenderers should note Clause [D20]# of the Please refer to ETWB TCW No. additional conditions of contract on “Environmental 19/2005, with subsequent amendment in

Management Plan” and the Particular Specification June 2006 on “Environmental Management” for minimising Please refer to SDEV's memo dated ref. nuisances and waste generation from the service. In DEVB(W) 810/17/02 dated 8.1.2016. addition, tenderers should note that all non-road # Please insert appropriate clause based construction machinery powered by diesel fuel reference. working on this contract should use B5 diesel (i.e. 5% biodiesel blended with 95% Euro V diesel) in accordance with Clause [insert appropriate clause reference] of the Particular Specification for B5 diesel.

NTT 26 Non-contractual partnering [Optional Clause] Tenderers' attention is drawn to the Employer's Please refer to DEVB Practice Note on intention to adopt non-binding post-award project Adoption of Non-contractual Partnering partnering with participation of all stakeholders of the in Public Works Contracts, June 2006 project. If the non-binding post-award project and DEVB memo ref. (013YR-01-4) in partnering is implemented, the costs associated with ETWB(W) 506/30/02 dated 8.6.2006 the partnering workshops including the services of an The Practice Note is available in independent professional facilitator are to be shared Appendix 5.28 of Chapter 5 of the equally between the Employer and the Contractor. Project Administration Handbook. NTT 27 Tree-preservation [Optional Clause] Tenderers should note that the Particular Please refer to DEVB TCW No. Specification Clause [insert appropriate reference] 10/2013. requires the Contractor to assign a competent member of the site supervisory staff to oversee and supervise the tree works under this contract, and that such a person should possess the practical experience as required under the Particular Specification Clause [insert appropriate reference].

NTT 28 Professional indemnity insurance [Optional Clause] Tenderers' attention is drawn to Clauses *[F5]# and Please refer to DEVB TCW No. 9/2007. [*F6]# of the additional conditions of contract regarding the professional indemnity insurance # Please insert appropriate clause requirement in respect of *the Contractor’s Design reference. and *the Cost Savings Design under this contract.

Please also refer to DEVB TCW No. 9/2007 for details of the above.

(The following NTT Clauses 29 to 32 are related Please refer to DEVB memo ref. to Measures on Workers Wages) (02VKU-01-3) in DEVB(W) 510/17/01 dated 16.12.2016. NTT 29 Employing Site Workers for this contract and payment of Site Workers’ wages Tenderers’ attention is drawn to the new requirement and arrangement on payment of Site # Please insert appropriate clause Workers’ wages set out in Particular Specification reference. Section [insert appropriate reference]. In the event the Contractor or his subcontractors including Specialist subcontractors fail to pay wages to their Site Workers, the Employer may pay any wages in arrears to the Site Workers and recover the same from any monies due to the Contractor under this contract.

NTT 30 Not Used

NTT 31 Regulating actions on poor records of non-payment of wages to site workers by the Contractor Tenderers’ attention is drawn to the new regulating actions introduced in the Contractor Management Handbook (CMH) on poor records of non-payment of wages to site workers by contractors. These are repeated here for ease of reference:-

“CMH Section 5.1.3 – Circumstances which may lead to the taking of regulation actions, include, but are not limited to: -

Add (xix) – poor records on non-payment of workers’ wages, including those of his subcontractors. A “non-payment of workers’ wages” record is defined as a claim

filed in the office of the Labour Department and proof thereof is furnished to the satisfaction of the Commissioner for Labour, in which the Contractor or any of his subcontractors, irrespective of tiers, is liable.

CMH Section 5.2.3(c) – Circumstances warranting mandatory suspension from tendering in all categories (A time limit for review to be set in all cases but should not be longer than six months):-

Add (vii) – poor records on non-payment of workers’ wages, including those of his subcontractors. A “non-payment of workers’ wages” record is defined as a claim filed in the office of the Labour Department and proof thereof is furnished to the satisfaction of the Commissioner for Labour, in which the Contractor, or any of his subcontractors, irrespective of tiers, is liable.

NTT 32 Not Used NTT 33 Limiting the tiers of subcontracting Tenderers’ attention is drawn to the provisions Please refer to DEVB memos ref. under Clause [C7]# of the additional conditions of (01TC9-01-5) in DEVB(W) 510/17/01 contract which impose certain restrictions on dated 17.7.2008 and (027RU-01-3) in subcontracting. DEVB(W) 510/17/01 dated 16.7.2010. # Please insert appropriate clause reference. NTT 34 Regulating action (serious incident or conviction for site safety or environmental offences) Tenderers' attention is drawn to Clause [SCT 12]# of the Special Conditions of Tender requiring a This Clause is only applicable if statement of “no conviction” or a statement of all Marking Scheme Approach is used. convictions under the Factories and Industrial

Undertakings Ordinance (Cap 59), the Occupational Please refer to DEVB TCW No. 3/2009. Safety and Health Ordinance (Cap 509), the Shipping and Port Control Ordinance (Cap 313), the Merchant Shipping (Local Vessels) Ordinance (Cap. 548), the Air Pollution Control Ordinance (Cap 311), the Noise Control Ordinance (Cap 400), the Waste Disposal Ordinance (Cap 354), the Water Pollution Control Ordinance (Cap 358), the Dumping at Sea Ordinance (Cap 466), the Ozone Layer Protection Ordinance (Cap. 403), the Environmental Impact Assessment Ordinance (Cap. 499), and the Hazardous Chemicals Control Ordinance (Cap. 595). The statement needed takes no special form.

NTT 35 Mechanical dump truck covers Tenderers’ attention is drawn to Particular Please refer to DEVB memo ref. Specification Clause [insert appropriate reference] DEVB(W) 810/ 83/09 dated 24.9.2010. on mechanical dump truck covers.

* Delete where appropriate. NTT 36 Anti-collusion Tenderers’ attention is drawn to the anti-collusion Please refer to DEVB memo ref. provisions in Clause GCT 26 of the General (02B6J-01-6) in DEVB(W) 510/10/01 Conditions of Tender. dated 24.3.2011.

NTT 37 Site uniform (1) Tenderers should note Clause [D24]# of the Please refer to DEVB memo ref. additional conditions of contract and Clause [insert DEVB(Trg) 133/3 (10) dated 23.1.2017. appropriate reference] of the Particular * Amend as appropriate. Specification on “Site Uniform and Associated Facilities*”.

NTT 38 Contingency sums, provisional sums and forecast total of the Prices* / Total Value for Tender Assessment (TVTA)* Tenderers' attention is drawn to Clause [GCT 35]# * Delete where appropriate of the General Conditions of Tender on the

contingency sums, provisional sums and forecast total of the Prices* / Total Value for Tender Assessment (TVTA)*. NTT 39 Employer’s power to reduce contingency sums for compensation events [Optional Clause] Tenderers' attention is drawn to Clause [SCT 15]# of This Clause is to be used where Clause the Special Conditions of Tender on reduction of SCT 15 of the Special Condition of contingency sums for compensation events. Tender on "Reduction of contingency sums for compensation events" is included.

Please refer to DEVB memo ref. DEVB(W) 546/70/01 dated 8.8.2011. NTT 40 Contractor Cooperative Training Scheme (CCTS) Tenderers’ attention is drawn to Clause [E8]# of the Please refer to DEVB memos ref. additional conditions of contract on the DEVB(Trg) 133/4 (9) dated 5.8.2013 and implementation of the Contractor Cooperative 16.8.2013. Training Scheme (CCTS), requiring the employment and training of CCTS Trainees in building and civil *Delete where appropriate work trades/electrical and mechanical work trades* and the employment of CCTS Graduates. NTT 41 Employment of Graduates of the Enhanced Construction Manpower Training Scheme (ECMTS) Tenderers’ attention is drawn to Clause [E9]# of the Please refer to DEVB memo ref. additional conditions of contract requiring the DEVB(Trg) 133/4 (9) dated 7.12.2012. Contractor to, within 6 months from the starting date as notified by the Service Manager, employ for at least 12 months a minimum total number of ECMTS # Please insert appropriate clause Graduates trained by the Construction Industry reference. Council under its Enhanced Construction Manpower Training Scheme (ECMTS). ECMTS Graduates employed by his subcontractors to work on the Site in accordance with the provisions of Clause [E9]# of the additional conditions of contract shall be counted towards the said minimum total number. NTT 42 Dispute Resolution Advisor system [Optional Clause]

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 33 of 34 Clause Remarks/Guidelines (1) This contract incorporates the Dispute Please refer to DEVB memo ref. Resolution Advisor system as stipulated in the Clause (02BBG-01-5) dated 24.3.2011 and [G2]# of the additional conditions of contract. DEVB(W) 510/83/03 dated 15.10.2014.

(2) A list of candidates for the position of Dispute DRA system shall be adopted in all Resolution Advisor (“DRA”) will be sent to the capital engineering works contracts Contractor after the award of this contract. subject to the following selection criteria:

(a) Civil and E&M engineering capital works contracts with estimated contract sums exceeding $500M, except for those contracts which are of routine nature and primarily straightforward. Approval for exemption could be given by an officer of not lower than D2 level of the procuring department; and

(b) Procuring department should also consider adopting the system in Civil and E&M engineering capital works contracts with estimated contract sums not exceeding $500M, taking into account the complexity of the service. In this regard, the decisions and justifications as to whether or not the system is adopted in these contracts should be properly documented and endorsed by officers of not lower than D2 level of the procuring department. NTT 43 Not Used NTT 44 Tree pruning works [Optional Clause] Tenderers should note that Clause [insert appropriate Please refer to DEVB memo ref. (36) in reference] of the Particular Specification requires the L/M to DEVB(GLTM) 302/5/1 dated Contractor to assign worker(s) with relevant 17.12.2014. qualification to undertake tree pruning works involving the use of chainsaw.

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 34 of 34 Clause Remarks/Guidelines NTT 45 Not Used NTT 46 Conditions of contract The conditions of contract of this contract are the # Please insert appropriate main Option. core clauses and the clauses for main Option [#], ## Please insert appropriate Option X. secondary Options [##] and Z of the NEC3 Term Commonly used options include X1 and Service Contract (April 2013) published by Thomas X19. Telford Limited, as amended or supplemented by the Schedule to the Articles of Agreement. NTT 47 Not Used NTT 48 Estimated Total Expenditure *and Provisional Quantities Tenderers' attention is drawn to Clause [GCT 36]# # Insert appropriate clause reference. of the General Conditions of Tender on the * Delete as appropriate. estimated total expenditure *[and the provisional quantities in the Price List].

NTT 49 Weighting Factors in the Schedule of Percentages Tenderers' attention is drawn to Clause [GCT 37]# # Insert appropriate clause reference. of the General Conditions of Tender on the weighting factors in the Schedule of Percentages in the Contract Data Part two.

NTT 50 Number of Term Service Contracts to be Awarded to One Single Contractor [Optional Clause] Tenderers' attention is drawn to Clause [SCT 18]# of This Clause is to be used where Clause the Special Conditions of Tender on the Employer’s SCT 18 of the Special Condition of policy on restricting the maximum number of term Tender on "Number of Term Service service contracts that can be undertaken at any one Contracts to be Awarded to One Single time by a single contractor. Contractor" is included.

Library of Standard Notes to Tenderers for NEC TSC (20.6.2017) Page 35 of 34