FORESTRY 102 – CONTRACT TENDERING

Dave Martin

A&A Trading Ltd

Vice President Operations

Clarify Expectations

Employment

Training

Profit

Financing

(1,500,000)

(1,000,000)

(500,000)

0

500,000

Month 1 Month 8 Month 16

Typical Cash flow for

Conventional Logging

Standing Timber

Into the Water & Off to Market

Contractor Community

Then

5 calls = 5 bids

Negotiable

Immediately available

Lots of workers available

to run equipment

DLS space readily

available

Contractor Community

5 calls = 5 bids

Negotiable

Immediately available

Lots of workers available

to run equipment

DLS space readily

available

The promise of a CP

5 calls = 3 will be too busy ; 1 will have equipment but no workers and the last will look as soon as there is time.

Negotiate schedules vs rates

More equipment than workers

Must have approved CP

Then Now

Road Building

Manual Falling

Mechanical Falling

Helicopter Logging

Hoe Chucking

Grapple Yarding

Tower Logging

Processing for Yarding

Roadside Processing

Hauling

Tender Package

Prime Contractor / Safety Requirements

Cruise / Maps / Time Frame

Payment terms

Minimum Utilization

Advance payments

Community Expectation

Employment

Training

Prework Package

Prework Safety Checklist

Legal Documents

Maps / Site Plans / Harvest Plans

Professional Reports

Bucking / Processing Specifications

Standard Operating Procedures

Emergency Response Procedures

Safety Checklist

“Notice of Project”

Operational Health & Safety Plan

Safety Designate & Contact Information

Employee Training/Orientation Records

Prime Contractor Assignment in Writing

Inspections

Safety

Environment

Quality Control

Final

Final Inspection

Road Deactivation is

Important

Piling and Waste Surveys

Good Planning and Good

Organization Produces a

Good Outcome