COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session

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COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session
Punggol Digital District

COLLABORATIVE CONTRACTING
Group Director/Tay Ter Long
Contracts & Procurement Division
21 May 2021
BLF2021 Session 1
COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session
Sharing Context
                           • Adoption and execution of Collaborative
                             Contracting in Punggol Digital District
                             (PDD)

                           • Experience so far
Punggol Digital District

                           • Thoughts on Collaborative Contracting

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COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session
Adoption and execution of
                           Collaborative Contracting
Punggol Digital District

                                                       3
COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session
Adoption and execution of Collaborative Contracting
   o Collaborative Working              o Professional facilitator was
     Relationship – Yes                   engaged for the workshop
   o Dispute Avoidance and Resolution   o Preparation Works:
     – Yes                                o Discussion with BCA on the
   o Early Notification/Notice – Yes        objectives of the workshop
   o Partnering Workshop – Yes            o Identify list of participants
   o Proactive Project Management –       o Discussion on workshop
     Yes                                    duration, programme, logistics,
   o Key Performance Incentives             etc
     (optional) – No                      o Identify venue and coordinate
                                            with venue’s facilities
                                            maintenance team

   Key                                  Partnering
   Mechanisms                           Workshops
                                                                              4
COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session
Adoption and execution of Collaborative Contracting
   o 1 DB Member appointed jointly         o Contractor/SO to give early notice to
   o Frequency of DB meetings = 3 times      other party as soon as either party
     each year                               becomes aware of any matter which
   o Fees are as advised by SMC and BCA      may:
     accordingly                             o Lead to an increase in the Contract
   o Dispute Board established within 60       Sum
     days of Commencement of the               o E.g. Variation Orders, loss &
     Works.                                    expense
   o Authorized Appointing Body for         o Result in a delay to the Time or
     Dispute Board (AAB): Singapore           Times for completion
     International Mediation                  o E.g. Extension of time claims
     Centre/Singapore Mediation Centre      o Have an adverse impact on the
                                              performance of the Works

   Dispute Avoidance                       Early Warning
   and Resolution                          Register and Notice
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COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session
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COLLABORATIVE CONTRACTING - Group Director/Tay Ter Long Contracts & Procurement Division 21 May 2021 BLF2021 Session
Experience so far

Punggol Digital District

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Experience so far

   Encouraging parties to come on board Collaborative Contracting

                          Introduced after the
                          consultants were
                                                                          Need to set aside
                          onboard. Important
  Involves some                                   An experienced &        time & $ (~ $11K) for
                          to determine the
  additional works by                             good facilitator for    the pre-workshop; in
                          adoption of
  the Consultants, in                             the Partnering          terms of workshop
                          collaborative
  particular the SO, eg                           Workshop; ability to    program, venue, etc.
                          contracting right
  in preparing for the                            create fun, steer the   Especially the
                          from the start of the
  Early Notice,                                   people towards          presence of Senior
                          project and to
  presentation to the                             meeting the             Reps from
                          include this scope
  DB.                                             workshop objectives.    stakeholders & the
                          under the
                                                                          appointed DB
                          consultancy
                          contract.

                                                                                                  9
Experience so far

                                 Selection of DB

                               Provides an avenue for
  May not be accepted by the
                               parties to resolve disputes    DB can also provide
  both Parties. May consider
                               amicably. DB, as a 3rd party   additional support according
  multiple DB members that
                               can provides his independent   to their Prof. training &
  both parties can mutually
                               views for parties              experience.
  agree.
                               consideration.

                                                                                             10
Experience so far

                              Structured Approach

                                                         Good practice to resolve
                                                         issues, variations, claims
                                                         progressively &
  Similar to private sector
                              Provides opportunity (OR   expeditiously: Early
  steering comm mtgs &
                              strict documentation) to   resolution by ensuring
  management of large
                              establish issues for       resolute time frames for
  complex developments but
                              discussion thro’ early     notification, substantiation,
  with detailed structured
                              warning mechanism.         verification and assessment
  mechanisms & processes
                                                         of such claims in accordance
                                                         with the provisions of the
                                                         contract.

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Thoughts on Collaborative
                           Contracting

Punggol Digital District

                                                       12
Thoughts on Collaborative Contracting

   Mindset of Parties                     Extent of CC                        Constraints

o Collaborative mindset alone      o Maximise benefits with          o Alignment & parity with other
  is insufficient                    Turnkey, D&B projects.            projects e.g. Covid related
o Discuss issues openly with       o Traditional Bid Build             issues
  each other incl the DB -           contracts have concluded the    o May not be aligned with
  what’s best for the project        detailed design and project       Employer’s internal
o Disputes raised to DB for          time frame – lesser               protocols/processes. e.g. RVO
  assessment / expert opinion        room/time for collaboration &     processes & Approving
  are rare as parties try to         substantive improvements.         Authority
  accommodate each other           o Important to include KPIs /     o Need to align dispute
  (which is good) and to resolve     Milestones                        resolution mechanisms with
  issues on their own              o Include authorities as            internal processes.
o Not to leave positions to the      stakeholders i.e. akin to a     o Food for thought: Special
  end resulting in strain            green lane for speedy             Development Vehicle for
  relationship and unclear           resolution of design &            mega development to have
  positions for parties to make      approval issues. [For complex     separate governance in order
  informed decisions                 projects]                         to accord agility and flexibility
                                                                       for decision making
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Working Relationship: To use best endeavours to
               work together in a collaborative environment and
               act in a spirit of mutual trust and cooperation.

If you don’t know where you are going, you will end up   A mind is like a parachute; it doesn’t work if it isn’t open.
somewhere else. Always start with the end in mind. Do    Don’t be afraid to experiment and take measured risks.
         not let the means determine the end.
Sungei Kadut Eco-District

Thank you.

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