Stocks & Partners

Consulting Engineers and Project Managers

th
7 March, 2018
Our Ref: P18015/JK

ANZ/GROUP PNG Limited

Attention: Mrs Sharon McDonald

NZ, ANZ/Group Property – New Zealand

Dear Sir,

RE: Revised Fee Proposal (V2) – Level 2 Rapid Post Seismic Impact Assessment &
Structural Condition Reporting- Mt Hagen ANZ Branch Building, WHP

We would like to thank you for the opportunity to submit a fee proposal to provide professional
services on the above mentioned building. Our fee proposal for the provision of these services
is presented hereunder. We understand that the building was subject to a severe earthquake
recently and requires specialist assessment to ascertain potential negative structural
implications of the whole building structural system.

Upon investigation, if the structure reveal substantial structural distortion, recommendations will
be made for to assist BECA Limited to technically advise client on the way forward to restore its
functionality.

Scope of Works and Services

Our understanding of the scope of service based on the email information sent to us on the 4th
March, 2018 is itemized below:

1 Phase 1 – Post Seismic Impact Assessment and Reporting on Building Structural

Condition
1.1 Existing condition inspection and Review of existing Building Documents (if
available) to familiarize with the structure, intent and current building use

1.2 Specific defects logging of faults that may be induced by Recent Earthquake
and assess its structural implications if any
1.3 Low Key Geotechnical Investigation Report (Visual Tactile Methods and
Review of existing Geotech Reports)

This exercised will be limited to review and reporting of site condition by

summarizing findings from previous geotechnical investigation report compiled
by other consultants who worked with Stocks & Partners on some recent
projects within Mt. Hagen City.

Registered Office: Unit 1, Section 59, Lot 20, cnr Koani and Gabaka St, Gordons.
P. O. Box 892, Port Moresby, NCD, Papua New Guinea
Ph +6753237030, Fx +6753239712, M +6757 686 3354,
Email : [email protected]
 2
1.4 Production of Investigation Report and findings and Recommendations on
building condition after the tremor consistent with requirements of BECA
Limited. The report will be submitted to BECA Limited to assist in the
compilation of a single Post Seismic Impact Assessment Report

2 Phase 2 – Structural Retrofitting Works Design if required by Findings

from Phase 1 Work
2.1 The details of this scope will be populated base on Phase 1 work findings and
further discussed with BECA Limited

We anticipate that the work would be for the mentioned scope without variation. All works are to
be checked for compliance with the PNG Standards and relevant Australian and New Zealand
Standards.

Capability Statement

Stocks & Partners has been providing consulting engineering services to the PNG market and
on this project we will be able to provide an experienced structural engineer capable of
execution of the work to high standards and in a timely manner.

Professional Indemnity / Insurances

We have Professional Indemnity Insurance, Public Liability and Workers Compensation

Insurance with our Insurer, QBE for your information.

Schedule of Fees

The attached Schedule includes our fees for the work. The estimated time of completion of all
necessary field investigations, testing and report is 3 weeks from the date of commissioning.

Should you accept our fee proposal, please provide your acceptance of our fee proposal and
commissioning in writing. We would also require notification in writing of the date of
commencement of our services on the project.

We trust the above proposal is agreeable and should there be a need to obtain any clarification
on any part, we would be happy to discuss this with you.

Yours faithfully,
Stocks & Partners Ltd

Lawrence J. Stocks
Managing Director

Registered Office: Unit 1, Section 59, Lot 20, cnr Koani and Gabaka St, Gordons.
P. O. Box 892, Port Moresby, NCD, Papua New Guinea
Ph +6753237030, Fx +6753239712, M +6757 686 3354,
Email : [email protected]
 3

Schedule of Fees

Level 2 Rapid Post Seismic Impact Assessment Services

Table 1.0 Fee Proposal for Professional Service

Item Description Amount
(PGK)

1 Phase 1 – Post Seismic Impact Assessment and

Reporting on Building Structural Condition
1.1 Existing condition inspection and Review of 4,500.00
existing Building Documents (if available) to
familiarize with the structure, intent and current
building use

1.2 Specific defects logging of faults that may be 4,500.00

induced by Recent Earthquake and assessment its
structural implications if any

1.3 Low Key Geotechnical Investigation Report (Visual 3,500.00

Tactile Methods and Review of existing Geotech
Reports)

This exercised will be limited to review and

reporting of site condition by summarizing findings
from previous geotechnical investigation report
compiled by other consultants who worked with
Stocks & Partners on some recent projects within
Mt. Hagen City.

1.4 Production of Investigation Report and findings and 7,000.00

Recommendations on building condition after the
tremor consistent with requirements of BECA
Limited. The report will be submitted to BECA
Limited to assist in the compilation of a single Post
Seismic Impact Assessment Report

1.5 Disbursements for 1 x Trip to site @ Maximum

of 2 days for 1x Senior Structural Engineer plus
2 x Local Field Assistant
 Airfares 5,870.00
 Accommodation
 Meals and TA
 Vehicle Hire
Note: If more than 1 visit is required, disbursement
will be charged at costs
2 Phase 2 – Structural Retrofitting Works Design
Registered Office: Unit 1, Section 59, Lot 20, cnr Koani and Gabaka St, Gordons.
P. O. Box 892, Port Moresby, NCD, Papua New Guinea
Ph +6753237030, Fx +6753239712, M +6757 686 3354,
Email : [email protected]
 4
if required by Findings from Phase 1 Work
2.1 The details of this scope will be populated base on TBA
Phase 1 work findings and further discussed with
BECA Limited
TOTAL (EXLUDING 10% GST) 25,370.00

Table 2.0 Schedule of Payment

Item Description Amount (PGK)
1 50% Down payment before commencement of Field Work 13,953.50
(10% GST Inclusive)
2 25% on Completion of Item 1.1 – 1.3 (10% GST Inclusive) 6,976.75
3 25% on Final Issue of Investigation Report and 6,976.75
Recommendation on suitable Structural Solution if any
required (10% GST Inclusive)
*TBA – To be Announced

Note:
i) Phase 1 – Investigation findings will determine service scope of Phase 2 (If the findings reveal
structural distortion) – Works which will involve retrofitting works design or as the case may be.

ii) Advance Geotech Investigation (DCP TEST & Drilling) is outside the scope of Phase 1 Works

Registered Office: Unit 1, Section 59, Lot 20, cnr Koani and Gabaka St, Gordons.
P. O. Box 892, Port Moresby, NCD, Papua New Guinea
Ph +6753237030, Fx +6753239712, M +6757 686 3354,
Email : [email protected]
 5

SHORT FORM - TERMS & CONDITIONS OF ENGAGEMENT

(COMMERCIAL)
1. The Contractor shall perform the Services as described in the attached documents. The Client and Contractor agree that the
Services are acquired for the purposes of a business and that the provisions of the Consumer Guarantees Act are excluded in
relation on the Services.
2. In providing the Services the Contractor shall exercise the degree of skill, care and diligence normally expected of a competent
professional.
3. The Client shall provide to the Contractor, free of cost, as soon as practicable following any request for information, all
information in his or her power to obtain which may relate to the Services. The Contractor shall not, without the Client’s prior
consent, use information provided by the Client for purposes unrelated to the Services. In providing the information to the
Contractor, the Client shall ensure compliance with the copyright laws and shall identify any proprietary rights that any other
person may have in any information provided.
4. The Client may order variations to the Services in writing or may request the Contractor to submit proposals for variation to the
Services.
5. The Client shall pay the Contractor for the Services the fees and expenses at the times and in the manner set out in the attached
documents. Where this Agreement has been entered by an Agent (or a person purporting to act as Agent) on behalf of the Client,
the Agent and Client shall be jointly and severely liable for payment of all fees and expenses due to the Contractor under this
Agreement.
6. All amounts payable by the Client shall be paid within twenty (20) working days of the relevant invoice being mailed to the Client.
Late payment shall constitute a default, and the Client shall pay default interest on overdue amounts from the date payment falls
due to the date of payment at the rate of the Contractor’s overdraft rate plus 2% and in addition the costs of any actions taken by
the Contractor to recover the debt.
7. Where Services are carried out on a time charge basis, the Contractor may purchase such incidental goods and/or Services as a
reasonably required for the Contractor to perform the Services. The cost of obtaining such incidental goods and/or Services shall
be payable by the Client. The Contractor shall maintain records which clearly identify time and expenses incurred.
8. The liability of the Contractor to the Client in respect of his or her Services for the project, whether in contract tort or otherwise,
shall be limited to the lesser of five times the values of the fees (exclusive GST and disbursements), or the sum of PGK 550,000.
The Contractor shall only be liable to the Client for direct loss or damage suffered by the Client as the result of a breach by the
Contractor of his or her obligations under this Agreement and shall not be liable for any loss of profits.
9. The Contractor acknowledges that the Contractor currently holds a policy of Professional Indemnity for the lesser of PGK 5 million
or five times the values of the fees (exclusive of GST and disbursements). The Contractor undertakes to use all reasonable
endeavors to maintain a similar policy of insurance for six years after the completion of the Services.
10. Neither the Client nor the Contractor shall be considered liable for any loss or any damage resulting from any occurrence unless a
claim is formally made on him or her within six years from completion of the Services.
11. If either Party is found liable to the other (whether in contract, tort or otherwise), and the claiming Party and/or a third Party has
contributed to the loss or damage , the liable Party shall only be liable to the proportional extent of its own contribution.
12. The Contractor shall retain intellectual/copyright in all drawings, specifications and other documents prepared by Contractor. The
Client shall be entitled to use them or copy them only for the Works and the purpose for which they are intended. The ownership
of data and factual information collected by the Contractor and paid for by the Client shall, after payment by the Client, lie with
the Client. The Client may reproduce drawings, specifications and other documents in which the Contractor has copyright, as
reasonably required in connection with the project but not otherwise. The Client shall have no right to use any of these
documents where any or all of the fees or expenses remain payable to the Contractor.
13. The Contractor has not and will not assume any obligations as the Client’s Agent or otherwise which may be imposed upon the
Client from time to time pursuant to the Health and Safety in Employment Act (“the Act”) arising out of this engagement. The
Contractor and Client agree that in terms of the Act, the Contractor will not be the person who controls the place of work.
14. The Client may suspend all or part of the Services by notice to the Contractor who shall immediately make arrangements to stop
the Services and minimize further expenditure. The Client and the Contractor may (in the event the other Party is in material
default) terminate the Agreement by notice to the other Party. Suspension or termination shall not prejudice or affect the
accrued rights or claims and liabilities of the Parties.
15. The Parties shall attempt in good faith to settle any dispute by mediation.
16. This Agreement is governed by PNG law, the PNG courts have jurisdiction in respect of this Agreement, and all amounts are
payable in PGK.

Registered Office: Unit 1, Section 59, Lot 20, cnr Koani and Gabaka St, Gordons.
P. O. Box 892, Port Moresby, NCD, Papua New Guinea
Ph +6753237030, Fx +6753239712, M +6757 686 3354,
Email : [email protected]