FOR
GENERAL CONSTRUCTION WORKS
VALUED UP TO $1MILLION
2014 - 2019
AGENCY GUIDELINES
December 2017
GENERAL ENQUIRY INFORMATION
Agencies may refer to the following Scheme documents for additional information:
1. Guidelines for Applicants
2. Scheme Conditions
3. Link to the Application
The above documents are available on - https://www.procurepoint.nsw.gov.au/scm0256
Enquiries: For enquiries please contact -
Agencies seeking a list of Contractors
Agencies seeking a list of Contractors for a specific project are to submit a request using the form:
The form is available online:
1. Go to web site: https://www.procurepoint.nsw.gov.au/scm0256
2. Select: ‘Information for buyers > prequalified suppliers’ from the drop-down menu
SCHEDULE OF DOCUMENT AMENDMENTS
Revision Number / Date / Update Description /0. / 11 November 2014 / Document Original
1. / 04 December 2017 / Scheme rollover to 1 January 2020
1. Introduction
The NSW Government’s Prequalification Scheme for General Construction Works valued up to $1 million (the Scheme) replaces prequalification schemes previously operated by several agencies.
Board Direction C2014-04 gives effect to the Scheme and requires agencies to use this Scheme for relevant construction work valued up to $1 million. The Department of Finance Services & Innovation (DFSI) is responsible for the administration of the scheme and providing advice to agencies on its operation.
These Guidelines provide advice to agencies about the operation of the Scheme including the selection and performance of prequalified contractors. The Scheme may be used by any Government agency, subject to meeting requirements set out in these Guidelines and Scheme rules. The NSW Procurement Policy Framework sets the requirements for construction and goods and services procurement that apply to NSW public sector agencies.
2. Background
In March 2014, the Procurement Board requested a review of the operation of construction contractor prequalification schemes operated by agencies. The Board recommended that the following principles guide the reform process:
(i) only information necessary for assessment of a contractor’s status is collected,
(ii) no contractor is forced to supply the same information more than once to prequalify or to maintain prequalified status, and
(iii) agencies should consider using already prequalified contractors drawn from other agencies wherever relevant.
The development of the new Scheme has been the subject of consultation across the sector through the Construction Leadership Group and with industry through the Construction Industry Advisory Group.
Automatic recognition of contractors prequalified under the existing scheme
Contractors Prequalified for works under $1m under the existing SCM0256 scheme 2014 – 2017 are automatically recognised as prequalified under the Department of Finance, Services and Innovation (DFSI) 2014 – 2019 for SCM0256 General Construction Works valued up to $1 million (“the Scheme”).
Scheme Timeline
The scheme is subject to continuous review and any aspect of the scheme is subject to change based on the requirements of NSW Government and the Department.
Application acceptance / Prior to and during the life of the SchemeScheme commences / 14 November 2014
Scheme concludes / 1 January 2020 (subject to review)
Scheme extension / Subject to Department requirements
Scheme content update / Subject to Department requirements
3. Purpose of the Scheme
The Scheme has been established to provide a framework that enables agencies to identify and engage suitable contractors for general construction work valued up to $1M.
4. Definitions
Definitions of terms used in these Guidelines are listed in Appendix A.
5. Work categories – what construction work is covered by the Scheme?
The Scheme applies to all general construction work described in the Work Categories in Appendix B. Agencies are not permitted to operate duplicate schemes but may operate schemes that involve other categories of construction work, or work valued at more than $1M.
6. Prequalified contractor listings
Agencies can view lists of prequalified contractors and access information provided
by contractors in their application as well as information on contractor performance
through the eTendering website. Prequalified contractors will be listed according to
work categories and the value of work for which they have been prequalified:
· Registered Contractors are eligible for contracts valued up to $150,000,
· Certified Contractors are eligible for contracts valued between $150,000 and $1M
7. Contractor obligations
Through the application process, prequalified contractors agree to the Scheme Conditions including:
- publishing names and information about prequalified contractors and contracts
awarded,
- standard contract terms and conditions for work under the Scheme,
- complying with all relevant laws and NSW Government policies
8. Financial assessment of contractors
Agencies are to assess the financial capability of a prequalified contractor during the
contracting phase using the consent given by the contractor at the application stage.
The Prequalification Scheme Financial Assessment Services administered by DFSI offers a panel of prequalified service providers with expertise in conducting
assessments on building contractors.
9. Standard terms and conditions for contracts
Registered Contractors engaged for work valued up to $150,000 under the Scheme,
are subject to the terms and conditions contained in the standard form Mini Minor
Works General Conditions of Contract. However, for Scheme engagements below $30,000, agencies can use alternative terms and conditions (e.g. agency specific terms and conditions, a supplier’s terms and conditions etc.) if the agency believes the alternative terms and conditions can adequately govern the engagement, having considered the level of risk associated.
Certified Contractors engaged for work valued between $150,000 and $1M under
the Scheme, are subject to the terms and conditions contained in the standard form
Minor Works General Conditions of Contract (MW21). Where an agency considers there are valid reasons, it may engage a Certified Contractor using GC21 Edition 2 General Conditions of Contract.
These standard form contracts together with guidelines and other advisory material are available on ProcurePoint.
10. Performance of contractors
To assist in meeting value for money and quality assurance objectives, agencies are to submit a Performance Report to DFSI where:
- a contractor’s performance is considered unsatisfactory, or
- the total cost of the engagement (and any related flow-on engagements) is more than $150,000 (including GST).
Agencies must submit a copy of all Performance Reports to
A Performance Report template is set out at Appendix C of these Guidelines.
Agencies must ensure that decisions relating to flow on engagements of contractors following a tender process, consider matters relating to competition and value for money. Flow on engagements should only be considered where the performance of the contractor is satisfactory or better, and where the benefits of retaining the services of that contractor, outweigh the costs of going to market for the additional work/engagement.
As a guide, in circumstances where the flow on engagement exceeds the value of the initial contract, agencies should seek quotes from other prequalified contractors in that category of work.
11. Selection of prequalified contractors for tendering
Agencies may undertake their own selection process, usingeQuotetoprepare and distribute onlineRequest for Quotes, or engage DFSI to perform this work on their behalf.
Agencies may also confirm with potential tenderers prior to quotations being
sought, that the service providers are willing to submit a quotation.
As a starting point, agencies should consider the following when identifying suitable prequalified contractors:
- contractor information available on eTendering
- past performance of the contractors with the respective agency
-
- location of the work
- any special requirements related to the project
-
- current and impending contract commitments of the contractor
Agencies to note that the contractor must be prequalified under the scheme prior to the date of issue of the agency Request for Tender (RFT). Only then the contractor can be engaged by agency under this scheme.
Under the Scheme Rules agencies are permitted to establish panel or standing offer arrangements from prequalified contractors on the Scheme. Any such arrangements must be refreshed at least every two years.
The recommended minimum number of quotes for work is as follows:
· Contracts up to $150,000 – one quote
· Contracts over $150,000 – three quotes
An agency may decide to obtain fewer than three quotes for work valued over $150,000, but must publish the reasons for doing so when disclosing information about the awarding of the contract.
The Scheme will be monitored by the NSW Procurement Board to assess whether the objectives and intent of the Scheme are being met. As part of this work, the Board will consider whether the level of competition for tender opportunities is appropriate.
Agencies are to use the standard form contracts referred to in section 9 of these Guidelines for all contractor engagements under the Scheme.
Agencies may only engage a local contractor that is not on the Scheme when the following three conditions are satisfied:
1. it is a one-off engagement
2. the agency formally invites that contractor to become prequalified
3. the value of the work is less than $30,000.
12. Use of eTendering
The eTendering website is to be used as the single portal entry point for:
- contractors wishing to apply for prequalification,
- agencies that want to identify suitable contractors,
- contract history of prequalified contractors
Over time through enhancements of the site, contractor performance reports will be accessible by agencies while standing offers from contractors could become available.
13. Review of scheme
The Scheme will be monitored by the NSW Procurement Board to assess whether the objectives and intent of the Scheme are being met. Modifications to the Scheme, including work categories, contract value ranges and/or contract systems, may be made at the discretion of the Board at any time during the life of the Scheme.
Appendix A: Definitions (policies referred to in this document are subject to change. Contractors should check the ProcurePoint website for updates & changes)
Applicant means an entity that has submitted an Application for prequalification under the Scheme
Application means an online application for prequalification under the Scheme
Certified Contractor means an entity that has been approved to provide construction works valued between $150,000 and $1M
Certified Contractor List means the list of contractors approved by DFSI under the Scheme to provide construction works valued up to $1M published on ProcurePoint
Code of Practice means the NSW Code of Practice for Procurement
Contractor Performance Report means the template document available at Appendix C and on ProcurePoint
Financially solvent means net tangible assets are greater than liabilities, and the applicant is not subject to insolvency proceedings and is able to pay all debts when they fall due for payment
Inspection and Test Plan is a document that records all inspection and testing requirements and demonstrates that required standards have been met
NSW Procurement Framework means the suite of legislation, policies, Board Directions and other rules that apply to construction procurement in NSW
Performance Management Procurement Practice Guide means the document available on ProcurePoint setting out the performance requirements for contractors carrying out construction contracts valued at more than $500,000
Prequalified Contractor means an entity that has been approved under the Scheme to provide construction works valued up to $1M
Prequalified Contractor List means the list of contractors approved by DFSI under the Scheme to provide construction works valued up to $1M published on ProcurePoint
Quality Management System Guidelines for Construction means the document on ProcurePoint setting out requirements relating to systems and business improvements
ProcurePoint means the website maintained by DFSI at https://www.procurepoint.nsw.gov.au/
Referee Report means the template document available on ProcurePoint
Registered Contractor means an entity that has been approved to provide construction works valued up to $150,000
Registered Contractor List means the list of contractors approved by DFSI under the Scheme to provide construction works valued up to $150,000, published on ProcurePoint
WHS Safety Management Plan means a document that sets out arrangements to manage WHS on a construction project (see WHS Management Systems and Auditing Guidelines)
Scheme means Prequalification Scheme for General Construction Works Valued up to $1M
Scheme Conditions means this document
Scheme Rules mean agency requirements contained in Board Direction C2014-04
The Office or DFSI means the Department of Finance Services & Innovation.
WHS Laws means the NSW Work Health and SafetyAct 2011and Work Health and Safety Regulation 2017
Work Health and Safety Management Systems and Auditing Guidelines means the document setting minimum standards across NSW government construction projects
Appendix B: Categories of Work
Construction works
1 / Building Works (Multi-trade) / Maintenance, small extension and repair of building work requiring more than one trade.
Major extension/alteration to existing building and/or construction of new building requiring knowledge and experience of all building trades. The Head Contractor on the site engaging and managing all trades and subcontractors.
2 / Building Heritage Restoration / Restore/refurbish various building fabrics including - carpentry, detail joinery and cabinet making, slate or copper roofing, lead work repairs, stonework repairs or repointing, french polishing, lead paint removal, specialist colour matching and painting skills
3 / Interior Fit Out (Refurbishment) including Ceiling & Partitions / Refurbishing and/or construction of new internal office fitout including partition, joinery, suspended ceiling systems, carpet, electrical and mechanical work. The Head Contractor on the site engaging and managing all trades and subcontractors.
4 / Building Remediation Works / Fixing fire damaged works to existing buildings including structural repairs and mechanical matters. Supply and fix incomplete/left over building works by for example builders in liquidation. Building works may include fixing internal partitions, doors, ceiling, kitchen cabinets, gutters, waterproofing buildings, wet area floors, and other minor building works.
5 / Demolition / Total or partial demolition of buildings/structures involving manual demolition and/or the use of machinery inclusive of capping and/or termination of services. Removal of hazardous materials (not including asbestos). Must hold either DE 1 or DE 2 Demolition License.
6 / Civil Works / Construction of minor and major civil engineering works comprising bulk earthwork, excavation, compaction, road work, car parks, pipe laying with or without shoring and dewatering, small water and sewerage treatment plants, marinas, pontoons, major hard landscaping and some soft landscaping. The Head Contractor on the site engaging and managing all trades and subcontractors.