goods_and_service_procurement_practice_guide.doc

When engaging consultants a public authority should

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A need to draw on expertise and specialised skills available only from external sources. When engaging consultants, a public authority should develop specifications that should include elements such as: Description/objectives of the project and function and boundaries of the consultancy; Outcomes/deliverables (e.g. reports, recommendations, seminars, workshops); Project time frame, including milestones, deadlines and completion date; Project methodologies and management requirements; Required knowledge, expertise, experience, interpersonal skills; Costing requirements e.g. fixed cost, daily or hourly rates, incidentals etc; Proposed payment schedule; Professional indemnity, public liability and workers compensation insurance; 34 Ver. December 2017 Appendix
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Intellectual property; and Quality requirements. Costing profile To facilitate the comparison of the various consultants’ responses to your tender (their offer), it is necessary to ensure that all offers are based on the same pricing structure. Wherever possible, a fixed cost for a specific task should be sought from prospective consultants. This pricing framework makes it easier to compare various bids in the selection process, to manage the consultancy and to make progress payments at appropriate milestones if outlined in the consultancy brief. Prospective consultants can be asked to provide a breakdown of their offer into basic fees and other costs (e.g. travel, accommodation, equipment hire). This breakdown should indicate the number of hours or days represented by the basic fee. If a breakdown is not possible, as the overall time required could not be estimated, fees and payments should be based upon established milestones or deliverables as a basis for control and as a means for maintaining the project schedule. If hourly rates are specified, as might be the case for panel or period arrangements, then the hours should be capped to a maximum total for the project. Requesting that the proposal contain a schedule of fees may be more appropriate for some consultancy tasks or professions, e.g. the legal profession. It is critical to ensure that the costing requested can be compared during the selection process. Rates for out of pocket expenses and reimbursement arrangements should be agreed to and set out in the conditions of contract prior to awarding a contract. Typical expenses may include travel and accommodation costs, however, any resemblance to salary or wages or other forms of remuneration must be avoided. The employer-employee relationship When engaging an individual or individuals - as opposed to a corporation or partnership - the relationship will be either a contract of personal service (employment) or a contract for the provision of services (independent contractor). When engaging consultants, public authorities must ensure they do not inadvertently create a contract of employment when it is intended to establish a contract for the provision of services.
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