W.S.C.C.

BUILDING CONTRACT DIRECTIVE

PROPERTY SERVICES

DATE: October 1999

BCD.15

Copyright Reserved

TENDERING PROCEDURES FOR MECHANICAL AND

ELECTRICAL INSTALLATIONS ON MAJOR WORKS USING A
NAMED LIST OF SUB-CONTRACTORS
1.

REFERENCE

Generally:
Reference is made in Building Contract Directive BCD.8 to the need to avoid the
use of nominated sub-contractors whenever possible. The procedure set out in
this directive has been developed in order to provide a method of dealing with
Mechanical and Electrical Installations which retains a facility to provide a named
list of approved sub-contract tenderers in the tender documents from whom the
main contractors tendering can obtain prices. Specifications and drawings for
these elements are incorporated into the main tender documentation provision in
the bills of quantities for building contractors to include in their tenders for the cost
of these installations.
Where control over the sub-contractors being permitted to tender for the
electrical and mechanical works is not a requirement this Directive will not
apply.

2.

Tender List:
The tender list for each installation will be compiled as follows:

3.

(A)

Two firms considered particularly suitable to carry out the installation in

question will be selected from the appropriate category of the Selected
List of Tenderers.

(B)

Three firms will be added from the Selected List on a rota basis.

Preliminary Letters of Invitation:

Preliminary letters of invitation are to be issued to each of the firms on the tender
list. Use standard letter E372 prepared specifically for this procedure.

4.

Form E372

Final Tender List:

Upon receipt of replies from the firms, if necessary substitute firms will be added
to the list to replace any that have declined the invitations, either by selection or
from the rota as appropriate.

5.

Preliminary Issue of Documentation:

The specifications and drawings, but not the Preliminaries are to be issued to
each of the mechanical and electrical firms. The documents are to accompany a
letter to each firm indicating that they have been named in the main contract
documents as one of the list of firms which the main contractors can employ as
domestic sub-contractors to carry out the installations and that their company can
expect approaches from general contractors for quotation. Use standard letter
E373.

Form E373

-1NOTE:
THIS DIRECTIVE IS APPLICABLE TO THE MAJORITY OF SCHEMES BUT IT WILL NOT NECESSARILY
BE APPROPRIATE TO ALL WORKS AND THEREFORE ON EACH SCHEME IT WILL BE NECESSARY TO
CHECK THE SPECIFIC REQUIREMENTS.

BCD.15
This letter also indicates that the Preliminaries applicable will be those
issued to the general contractors and that they should refer to these.
The letter also requests the firms to notify Property Services if they
receive no invitations from any contractors to provide quotations.
6.

The Main Tender Documents:

The main tender documentation is to include the following:

7.

(A)

The Mechanical and Electrical specifications and drawings.

(B)

A list of five firms (or as applicable) for each installation from which
tenders can choose their domestic sub-contractor.

(C)

An indication that the mechanical and electrical firms have already been
supplied with copies of the specifications and drawings and that
tenderers will be responsible for providing the mechanical and electrical
firms with details of the relevant sections of the main contract
preliminaries.

(D)

The conditions applicable to any proposals by tenderers to add additional

mechanical or electrical firms to the lists.

(E)

A requirement that the contractor will provide at tender stage the name of
the mechanical and electrical contractors whose prices have been
included in the tender and to whom the mechanical and electrical works
will be subcontracted. Tender forms for use with the JCT 98 Form of
Contract provide for the names to be inserted as a condition of tender.

(F)

A specific reference to the mechanical and electrical installation

documentation not being measured in accordance with the standard
method of measurement. See Appendix `A for the clauses to be included
in the Preliminaries to the main bills of quantities.

Sub Contract:
The mechanical and electrical firms will become Domestic Sub-Contractors
under the contract conditions and the contractor will be required to enter into a
binding sub contract agreement with each of the firms before the start of the
work. The contractor is also required to confirm to the Consultant that this has
been done, giving the names of the sub-contractors. The Consultant should
ensure that these requirements are complied with and check that changes of subcontractors from those previously notified in writing to the Consultant have not
occurred without the Consultants specific consent.
The performance of the sub-contractor will be the entire responsibility of the main
contractor.

8.

Design Responsibility:
If the specification and drawings included in the main tender documentation for
either the mechanical or electrical installation do not provide full design details
leaving some design elements to be carried out by the mechanical or electrical
firm it will be necessary to use the JCT Contractors Designed Portion
Supplement. This should be avoided wherever possible by ensuring that the
mechanical and electrical installations are fully designed before tenders are
invited.

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REFERENCE

BCD.15
9.

Records of Tender Opportunities:

REFERENCE

With the procedure set out above it is more difficult to ensure that all Mechanical
and Electrical firms on the Selected List of Tenderers receive an approximately
equal number of tender opportunities on the County Councils schemes than is
the case when P.C. sums and nominations are used. In order to monitor each
firms opportunities and try, so far as is possible, to spread opportunities evenly
between the firms, the following course is to be followed:(A)

The Mechanical and Electrical firms named in the bills of quantities are
requested to notify Property Services if they receive no request to provide
a quotation on a scheme.

(B)

The records relating to the Selected List will be updated as follows:-

(C)

(i)

Firms declining preliminary invitation will be regarded as having

had an opportunity to tender and their place on the rota will be
adjusted accordingly.

(ii)

Firms accepting the preliminary invitation but receiving no formal

invitation from general contractors will be recorded as NOT
having had opportunity and their position on the rota will
therefore not be affected.

(iii)

Firms accepting the preliminary invitation and not notifying

Property Services within 21 days of the tender return date that
they have not had an opportunity to tender will be assumed to
have been offered a formal invitation by the main contractors and
will be recorded as having had an opportunity and their position
on the rota will be adjusted accordingly.

In the operation of the rota system for the compilation of tender lists on
future schemes the foregoing rules will be taken into account.
CONCLUSION
(Appendix `A follows)

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APPENDIX A
to BCD.15

Preliminaries

p
A30

EMPLOYERS REQUIREMENTS:
TENDERING/SUBLETTING/SUPPLY (CONTINUED)
SUBLETTING/SUPPLY
LISTED DOMESTIC SUBCONTRACTORS: The work listed below
as described and set out in the Bill of Quantities must be carried out
by persons identified in a list as provided for in Contract clause 19.3
and clause 641 below.

F
TR

LISTED DOMESTIC SUBCONTRACTORS:

Mechanical Services Installations:
to be carried out by one of the following:
NAME
1.
2.
3.
4.
5.

ADDRESS

F
TR
TEL NO.

..........................................................
..........................................................
..........................................................
..........................................................
..........................................................
Electrical Services Installations:
to be carried out by one of the following:
NAME

1.
2.
3.
4.
5.

ADDRESS

TEL NO.

..........................................................
..........................................................
..........................................................
..........................................................
..........................................................
One set of Mechanical Services drawings as set down in
Section ....+., Clause ...+. plus one copy of the Mechanical Services
Specification has been lodged with the firms listed for mechanical
services installations.
A similar arrangement with electrical drawings and specification has
been made with the firms listed for electrical services installations.
The Contractor shall be responsible for providing to the firms
approached any further details from the relevant sections of the
contract preliminaries.
If the Contractor wishes to add one additional person to any list given
under the provisions of Contract clause 19.3, he must apply in writing
to the CA no later than 7 days following the receipt of the tender
invitation.
Evidence of suitability of such additional person(s) to carry out the
sub-contract work must be included with the application, copies of the
firms latest annual accounts information and the names and
addresses of two referees. Such person(s) must be a member of the
Heating and Ventilation Contractors Association (for mechanical
works) and the Electrical Contractors Association and/or approved

by the National Inspection Council for Electrical Installation

contracting (for electrical works).
To collection

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APPENDIX A
to BCD.15 (Cont)

Preliminaries

p
Contractors will be notified as soon as possible as to whether their
application is approved.
Approval to include the name of an additional person to any list as
defined above will relate to the tender being submitted by the
requesting Contractor only, and the name of the additional person will
not be circulated to the other tenderers.
The Contractor will be responsible for providing all documentation to
the additional person required for the submission of a tender to the
Contractor for the sub-contract works.
NO FURTHER APPLICATIONS FOR THE ADDITION OF
PERSON(S) TO THE ABOVE LISTS WILL SUBSEQUENTLY BE
CONSIDERED.
*

If less than three persons named in the list are able and willing to
carry out the relevant work so that Contract Clause 19.3.2.2 becomes
operative, the Contractor must notify the CA without delay for a
decision as to whether or not names shall be agreed for addition to
the list.
The Contractor is to confirm at tender stage the name of the
mechanical and electrical contractors whose prices have been
included in the tender and to whom the mechanical and electrical
works will be sub contracted. Failure to comply with this requirement
will result in the tender being considered incomplete and invalid.

Before the start of the work to which the list relates, the Contractor
must enter into a binding subcontract agreement and confirm to the
CA that this has been done, giving the name of the subcontractor.

A31

EMPLOYERS REQUIREMENTS: PROVISION,

CONTENT AND USE OF DOCUMENTS (CONTINUED)
DOCUMENTS PROVIDED ON BEHALF OF EMPLOYER
BILLS OF QUANTITIES
METHOD OF MEASUREMENT: Except as specified below the Bills
of Quantities have been measured in accordance with the principles
of the Standard Method of Measurement of Building Works Seventh
Edition, 1988.

F
TR

The works contained in the Mechanical and Electrical Installations

are described in the Specifications and Drawings for these elements
of the works attached to the Bills of Quantities and are not measured
in detail in accordance with the Standard Method of Measurement
referred to above. In the submission of a tender the Contractor will
be deemed to have accepted this method of describing the work and
the adjustment of the final account for these elements on the same
basis. SEE A30 EMPLOYERS REQUIREMENTS/SUBLETTING/
SUPPLY.
END OF CLAUSES
NOTES RE INSERTIONS:
+ Insert the appropriate clause numbers of the preliminaries.
Insert the number of firms listed.

To collection

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