Procurement for dredging projects starts with a call for competitive bids guided by recognised tendering procedures.
The aim of such a procurement effort is to arrive at a cost-effective contract for implementing a dredging project. Ideally a contract should not be the lowest price, but the best value price.
Dredging contracts can be roughly split into two project groups:
- Large-scale capital dredging projects which tend to be complex and require high quality standards. These projects often include considerable risks and are costly. They therefore require a qualified and experienced contractor who can assemble a flexible team.
- Maintenance dredging projects which are usually more routine and will have less chance of encountering unexpected adverse physical conditions.
Contracts
When formulating a contract for the procurement of services from a dredging contractor, a number of key factors should be considered:
- In what timeframe must the work be completed?
- What is the budget for the project and is that fixed?
- What level of quality is required and/or expected?
- How technically complex is the project?
- How flexible are the parameters of the operation? Can changes be expected?
- What are the risks and what are the risk allocations, that is, which party is responsible for which risks?
Costs
The client will set the parameters for the dredging project and is charged with determining the need for the project in terms of its own budgetary considerations, the need for the project in general and the cost-benefit analysis for the investment.
The contractor will analyse the above-listed factors and determine the cost of the project. This will include estimating the complexity of the project, the dredging plant that will be needed and the number of employees.
Tenders
A tender usually refers to the process whereby authorities, governments and financial institutions invite bids for large projects that must be submitted within a finite deadline.
An open public announcement may be made or a written invitation may be sent to potential suppliers of a particular good or service to inform them about the information required for the buyer to make a procurement decision. Issuing a tender document typically begins the tender process by which qualified and interested suppliers are evaluated based on such elements as their price, availability and proposed delivery terms.
related
Articles
Applying early contractor involvement in marine infrastructure procurement
Complex construction projects that use traditional procurement practices are often impacted by significant cost overruns and delays. Early contractor involvement (ECI) is a concept that strives to involve the contractor collaboratively at an early stage of a project’s development to mitigate or otherwise eliminate those risks. In August 2022, PIANC published the report “A framework for early contractor involvement in infrastructure projects” to help industry practitioners in choosing and best implementing ECI. This article is intended to develop on key aspects of the PIANC report and look at the factors that can lead to a successful maritime ECI project.
Regulation and management of marine aggregate dredging in England
Marine dredged sand and gravel make an important contribution to regional supplies of building materials used in England. Marine aggregate dredging however, is known to result in effects to the receiving environment which, if not properly controlled, could cause adverse impacts to a wide range of receptors. As the marine area around England gets busier, competition for space comes with regulatory challenges and an integrated marine management approach that uses a robust planning system is required. This article discusses the regulation of aggregate dredging in England and provides an overview of the sector’s importance in providing primary aggregate.
Adverse physical conditions: Legal development and changes in risk profiles
In the past decade, there have been noteworthy advances in case law with respect to adverse physical conditions as well as the development and use of digital ground models that have become more widespread. This article looks at the development and changes in risk profiles that may result due to these two developments.
Mediation 101 for the Dredging Industry
The international dredging and maritime construction industry remains quite devoid of the use of mediation as a tool for Alternative Dispute Resolution. Mediation is outlined to broaden familiarity with mediation, increase confidence in the process, and inform about the benefits it can bring to the industry at large.
Managing risks: how to select the appropriate dredging contract
Contracts for dredging and offshore works are diverse. Moreover, increasing financial and/or managerial constraints require contracting parties to change the apportionment of commercial risk. Contractors and suppliers have to adapt to contracts that are chosen unilaterally by the owner. Turnkey and engineering, procurement, and construction (EPC) contracts are becoming more common in the industry and bring their own benefits and challenges.
Valuing Variations In Dredging Contracts
Variations are essential in dredging contracts and they have the potential to generate extra costs and pose significant delay to projects. So, what is the best way to go about reaching a fair valuation in variations in dredging contracts?
A Review of the FIDIC Blue Book (Second Edition)
In 2006, FIDIC published a specialised contract for dredging and reclamation activities – the FIDIC Form of Contract for Dredging and Reclamation Works. Ten years later, the second edition of this book has been released with updates to better reflect actual practice and to increase usage of the book.
Fair contract conditions and competition
FIDIC Conditions of Contract books are essential to the dredging industry. There is a whole suite of contracts for stakeholders to choose from to suit their needs. Discover when and why these contracts were made.
Contractor or Client: Who Pays for Overdredging?
Allowing for dredging beyond the design dredge depth maybe a necessity. And that means ensuring that payment for overdredging is not an afterthought, but clearly specified in the contract.
On Public Procurement Rules in the EU and Early Contractor Involvement, Part II: Case Studies
Despite strict competition laws, the EU is reviewing some new procurement procedures that would allow a contracting authority leeway in negotiating early on with potential contractors.
On Public Procurement Rules in the European Union and Early Contractor Involvement
Benefiting from early contractor involvement does not necessarily violate the European Union’s principles of freedom to supply goods and services.
Traditional Procurement Methods are Broken: Can Early Contractor Involvement be the Cure?
When a mega infrastructure project is on the drawing board, who is most likely to have the technical knowhow to design the project in the most cost-effective manner – the clients, the contractors or consultants?
Adverse Physical Conditions and the Experienced Contractor Test
Standard dredging contracts do not necessarily take into account “unforeseeable” soil conditions which can cause serious financial uncertainties. The time to consider these issues is before work commences.
Partnering: The Right Procurement Tool for Risky Contracts
Despite the recent progress, partnering in the UK continues to mean different things to different people. The difference between project and strategic partnering is fundamental and could reflect the difference between a client's desire to partner on a short-term or long-term basis.
Facts About
Procurement
“Facts About Procurement” describes the overall process of identifying potential contractors, conducting the tender procedure and awarding the contract.
Publications
Form of Contract for Dredging and Reclamation Works (Dredgers Contract; Second Edition, 2016)
Commonly referred to as the FIDIC Blue Book, the second edition of the FIDIC Form of Contract for Dredging and Reclamation Works is an update which better reflects actual practice than the first book
Adverse Physical Conditions & The Experienced Contractor
How can contractors and clients avoid lawyers, claims and recourse to the courts to solve disputes? All these subjects are touched upon in David Kinlan’s book.