Doing Business with CNL

Typically used to secure preliminary budgetary data where CNL is seeking to develop its requirements for a future procurement.

Typically used to engage the marketplace to gauge interest in performing a scope of work and for CNL to gain a better understanding for suppliers capabilities and seek feedback on any proposed approaches prior to commencing any formal solicitation.

Suppliers/Contractors are asked to demonstrate that they are able to meet certain CNL key requirements prior to being invited to Request for Proposal (RFP). Criteria for pre-qualification may include the Supplier’s/Contractor’s Health and Safety Program, Quality Program, technical capabilities, financial capacity and standing, and previous work and performance. Pre-qualification is frequently used for high-value and/or complex procurements.

Used to secure price quotations against established specifications. Typically used for goods and materials solicitations or where simple unit rates are applicable.

Typically used to secure structured proposals against complex, high-value or high-risk requirements where CNL seeks to draw upon the proponent’s expertise and experience in the form of a proposed solution. An RFP is made up of sections as outlined in the Procurement Process below. A modified form of the RFP is used for less complex, lower value and risk procurements where the expertise and experience of the proponent are still being sought to propose a solution.

Under fixed price contracts, CNL envisages the majority of the contract risk typically owned by the Supplier/Contractor who submits a fixed price to complete the scope of work as provided in the procurement. The Supplier/Contractor is typically requested to provide some level of price breakdown in order for CNL to have confidence that the scope has been appropriately priced.

Under time and material contracts, the risk will typically reside with CNL.  CNL compensates the Contractor/Consultant on the basis of actual cost of labour, materials, equipment, expenses plus a level of profit and overhead. Time and Material contracts usually have the contractual obligation of an Upset Limit which cannot be exceeded and a requirement to advise CNL when a set percentage of spend has been reached (ex. 70%).

Under target price contracts, risk is generally shared between the Contractor/Supplier and CNL.  The target price contract is essentially a variation of a Time & Materials contract where the Contractor and CNL agree to a Target Price to undertake the total scope of work where the target price represents a genuine pre-estimate of the likely out turn of the project including full transparency of costs. The Contractor then tries to execute the contract at or below the Target Price. CNL and the Contractor agree to share risk and reward whereby the Contractor/CNL share in any savings, as an agreed percentage or as a simple set fee, against the scope of work and/or early completion. The Contractor/CNL also share in any overspends/delays as an agreed percentage.

Under unit rate contracts the risk associated with the unit rate will reside with the Contractor/Supplier whilst the risk associated with the number of units will generally reside with CNL.  The contract price is based on estimated quantities and associated unit price inclusive of everything necessary to complete that unit of work.

Framework agreement where the contractor demonstrates their overall competence and capacity to undertake a type of work or service. The terms and conditions, pricing mechanism, quality, and safety requirements are also bid upon by Proponents and individual work packages are subsequently let through Task Orders outlining the specific scope for that package.