Manual. Transport Infrastructure Project Delivery System Volume 3 (Prequalification System)

Transcription

1 Manual Transport Infrastructure Project Delivery System Volume 3 (Prequalification System) July 2015

2 Copyright State of Queensland (Department of Transport and Main Roads) 2015 Feedback: Please send your feedback regarding this document to: Transport Infrastructure Project Delivery System, Transport and Main Roads, July 2015

3 Contents Volume 3: Part A Road and bridge infrastructure Introduction General Aims of prequalification Overview of the prequalification system Use of prequalification levels Purpose of this prequalification system Integration with the Austroads national prequalification system Definitions Prequalification Prequalification of road and bridge construction contractors Prequalification of asphalt contractors Prequalification stages and processes Submission of applications Initial applications Prequalification checks, performance reporting and reviews Particular requirements for certain applicant types RoadTek, local government and other government business units Registered specialist suppliers Members of a group of companies, or subsidiary companies Newly formed companies Overseas contractors Contractor performance reporting Introduction Types of performance reports Completion and submission of performance reports Other considerations Site visits by prequalification committee Confidentiality and undertakings Availability of prequalification information Disclaimer Acceptance by applicants Prequalification notices Appendices and associated documents Volume 3A: Appendix A - Management systems and arrangements General Management system requirements General Transport Infrastructure Project Delivery System, Transport and Main Roads, July 2015 i

4 2.2 Quality system requirements Occupational health and safety system requirements Environmental management system requirements Management of apprentices and trainees Project-related processes Project communication and relational management Volume 3A: Appendix B - Capability and experience General Guiding principles Organisational structure Construction experience of the applicant Key personnel experience Volume 3A: Appendix C - Asphalt prequalification Introductions Definitions Overview Background Objectives Scope Translation from existing TMR asphalt supplier registration system Terms and conditions of asphalt prequalification General No guarantee of work Application requirements Confidentiality Change of circumstances Governing law Applicant s undertaking Warranties Asphalt prequalification categories and financial levels Overview Asphalt prequalification categories Financial levels Prequalification requirements Entities eligible for prequalification Excluded entities Assessment criteria Assessment process Assessment of applications Transport Infrastructure Project Delivery System, Transport and Main Roads, July 2015 ii

5 5.2 Notification Conditional prequalification Upgrading prequalification status Maintenance of prequalification status Provision of updated information Additional performance-related requirements for maintenance of prequalification status Review of an asphalt contractor s prequalification status Cancellation, suspension, downgrading or changes to scope Reviews and appeals Tendering for contracts that include asphalt General Joint ventures Prequalification checks prior to awarding of a contract Volume 3A: Appendix C.A - Prequalification assessment guide for asphalt technical capacity 52 Volume 3B: Part B - Registered specialist suppliers Introduction Managing the registration process Role of the register manager(s) Registration Applications for registration Documentation for registration Assessment for registration Performance assessment Deregistration Appeals Confidentiality and undertakings Volume 3B: Appendix A - Guidelines for applicant organisations Introduction Expertise of staff Proven capability Suitability of equipment Management systems Apprentices and trainees scheme Volume 3B: Appendix B - Appeal process Introduction Appeal process Composition of appeal panel Hearing the appeal Transport Infrastructure Project Delivery System, Transport and Main Roads, July 2015 iii

6 Volume 3 (Prequalification System) Volume 3: Part A Road and bridge infrastructure 1 Introduction 1.1 General In addition to the National Prequalification System (NPS) Guidelines, the following information completes the prequalification system for roads and bridges, with specific attention to the requirements in the State of Queensland. 1.2 Aims of prequalification In addition to the objectives within the NPS, the aims of the Prequalification system within Queensland are: to expand on the principles of the Queensland Procurement Policy and associated procurement guidance material, with direct application to the department s projects to minimise risks to the department in dealing with available Contractors, and to identify suitable Tenderers for the department s projects on broad and generalised nonprice criteria relating to the organisation's technical and financial capability. 1.3 Overview of the prequalification system Contractors wishing to tender for road and bridge construction contracts and other nominated contract types must be prequalified at the time specified in Item 3 of the Schedule to the NPS guidelines. Prequalification of contractors is a risk mitigation strategy for Australian road authorities which does not simply consist of a one-off assessment but is, in fact, a continuous process of review comprising: an initial assessment of a contractor s capabilities at the time of lodgement of an Application (including its operational management systems) financial and/or technical checks during the tender assessment process, before a contract is awarded assessment of a contractor s performance, and periodical renewal of prequalification via submission of a new Application (currently every three years). The Participating Authority may advertise for prequalification periodically and eligible entities may apply for prequalification at any time. Prequalification is granted for the time period nominated in the Schedule to the NPS Guidelines, and is generally for a period of three years or less. Contractors that are not eligible to obtain full prequalification may be able to obtain prequalification on a restricted or conditional basis, as detailed further in this document and the NPS Guideline. Eligibility requirements are described in this document and the NPS Guideline, along with the terms and conditions of prequalification and the process that will be undertaken by the Participating Authority to assess and review prequalification Applications. For more information, refer to the NPS Guidelines. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

7 Volume 3 (Prequalification System) Prequalification is based on an organisation's assessed ability to complete infrastructure projects giving consideration to the organisations: financial capability (excluding Local Government, RoadTek and other State Government Departments) technical experience, qualifications and capability of key personnel company experience and capability to successfully manage infrastructure projects (including current and past projects), and company profile (including integrated management systems). When the department calls for tenders or expressions of interest in a major road or bridge project, Prequalification Levels for both the financial and technical capability required for the project will be nominated. Only Tenderers with a Prequalification Level at or above the corresponding project prequalification level are eligible to tender for the project. 1.4 Use of prequalification levels For tender eligibility, the level of prequalification required is stated in the advertisement calling for tenders or expressions of interest and is also nominated in the tender documents. Transport Infrastructure Project Delivery System (TIPDS), Volume 1 gives guidance on how Prequalification Levels are determined for projects. Technical characteristics of projects are rated separately from the financial aspects. Similarly, technical capabilities of Contractors are assessed separately from their financial capabilities. Prequalification categories and financial levels are outlined in the NPS. There are five categories of prequalification for Roadworks (R1-R5), four categories for Bridgeworks (B1-B4), four categories for Asphalt (A1-A4) (for Queensland only) and thirteen Financial levels (F F150 Plus). [Note that TMR does not currently use the F0.25 category]. The following table lists the current NPS financial levels: Financial level Maximum values F0.25* $ F1* $1 million F2* $2 million F5 F10 F15 F20 F25 F50 F75 F100 F150 F150 PLUS $5 million $10 million $15 million $20 million $25 million $50 million $75 million $100 million $150 million Unlimited Transport Infrastructure Project Delivery System, Transport and Main Roads, July

8 Volume 3 (Prequalification System) As a guide only, the old Department of Transport and Main Roads financial levels correspond to the new national levels as follows: old F1 (New F1, F2), old F2 (new F5), old F3 (new F10, F15), old F4 (new F15, F25), old F5 (F25, F50), old F6 (new F75, F100), old F7 (new F150), old F open (new F150 plus). This should be taken as a guide only, and each scenario should be assessed on a case-by-case basis. Contact Manager (Prequalification) for more information. When an infrastructure project is advertised, the prequalification requirement will include a combination of Roadworks and/or Bridgeworks prequalification categories together with a Financial level. For example, a project may be advertised as R3/B1/F50 where it has Roadworks characteristics corresponding to prequalification category three, Bridgeworks corresponding to prequalification category one and a financial capacity corresponding to prequalification level fifty. In this example, Contractors who are prequalified at level R3/B1/F50 or higher would be eligible to tender on the project. Alternatively, a Contractor prequalified at a level of R3/F50, would be eligible to tender provided they nominated a prequalified B1 subcontractor to carry out the Bridgeworks component or form a joint venture with appropriate level of bridge level qualification. The Principal Contractor would, generally, be required to be prequalified at a financial level equal to or higher than the project financial level without relying on financial support from other parties. Special consideration may be made in exceptional circumstances in the case of a joint venture. The subcontracting of a component of a contract must comply with the requirements of tendering as a prequalified contractor set out in TIPDS Volume 3. 2 Purpose of this prequalification system Construction and maintenance of transport infrastructure comprises a wide range of specialised activities in diverse geographic terrain and climatic circumstances. Projects vary in size and complexity, but always involve significant risks which need to be astutely and competently managed in order to achieve project objectives and value for money. In accordance with the requirements of the Queensland Procurement Policy, for high risk projects the department has adopted a national system for prequalification of organisations that seek to tender for transport infrastructure projects, in order to minimise the risk of not meeting project objectives. This system is typically applied to infrastructure works delivered using the "construct only" Transport Infrastructure Construction (TIC) Contract (previously called the Road Construction Contract, or RCC), and also the Roadworks Performance Contract (RPC) and the Design and Construct (D&C) Contract. However, use of the principles, concepts, systems and guidelines defined in this document should be considered in the selection of Contractors for other forms of contract and delivery arrangements, including Minor Works, Early Contractor Involvement (ECI) and Alliance contracts (AC). TIPDS Volume 3 should be used as a basis for limiting registration of interest applications where a two stage selection process is used. The TIPDS Volume 3 is also used by the Queensland Government in the procurement of rail infrastructure and may be used from time to time by other Queensland Government agencies and local governments where roads, bridges or other forms of transport infrastructure are required to be constructed as part of projects under their control. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

9 Volume 3 (Prequalification System) 3 Integration with the Austroads national prequalification system TIPDS Volume 3 contains information on how the requirements and details for prequalification apply within Queensland, in addition to the NPS. Where any conflicts exist between the two prequalification systems, TIPDS Volume 3 prevails within the State of Queensland. Disclaimer The NPS has been specifically established to meet the requirements of Participating Authorities and Participating Authorities rely on an Applicant s own documentation in undertaking any assessments. Other persons and organisations seeking to deal with a prequalified contractor must rely on their own independent enquiries and judgment. The Participating Authority and its officers, employees and agents do not represent that any prequalified contractor is technically, financially or otherwise sound. These Guidelines and Appendices outline the minimum requirements of the NPS adopted by the Participating Authority. The Participating Authority reserves the right to expand upon and tailor these requirements or any of the processes outlined in these Guidelines as appropriate to better reflect their local requirements. Where possible, the local contracting industry will be consulted before any significant changes are introduced. To the extent permitted by law, the department and its officers, employees and agents are not liable for any costs, loss, damage or injury (howsoever caused) incurred by any person as a result of the exercise of the discretion to grant prequalification, downgrade, suspend or cancel a contractor s prequalification status. 4 Definitions The following definitions apply throughout TIPDS Volume 3 and the accompanying application Form and Schedules: "Administrator" means the person appointed by the Principal for a particular contract in accordance with the terms of the General Conditions of Contract. "Appeal Panel" means a group selected to hear a prequalification decision appeal, in accordance with the procedure listed in the NPS. "Appellant" means a party/applicant which appeals a prequalification decision of the department. Applicant means the legal entity lodging the Application. Application means the completed submission ( Application Form ), lodged by the Applicant to be prequalified in one or both technical categories and the financial level. "Approved Asphalt Contractor" provides a construction service including laying and compaction of the asphalt products. "Assessor" means a member of a panel of suitably experienced and competent persons appointed by the Executive Director (Program Management and Delivery) for the purpose of determination of the prequalification level of applicants. Bridge works means works including construction and maintenance of a structure built to traverse an obstacle (for example roads, rivers, railways), that cross a section of the road network. Bridge works structures consist of structural elements (abutments, piers, beams, decks, and so on) and ancillary elements (footways, railings, services, route lighting, and so on.). Transport Infrastructure Project Delivery System, Transport and Main Roads, July

10 Volume 3 (Prequalification System) "Conditional Prequalification" means prequalification of an applicant at a nominated level with specific limitations and/or conditions. "Conditions of Tendering" means the document that describes circumstances which are acceptable to the Principal for accepting a Tenderer's response. "Contractor" means a transport infrastructure constructor and in the context of this document includes private sector Contractors as well as RoadTek and other government Contractors. Department means the Queensland Department of Transport and Main Roads. "Engineering & Technology" (E&T) means the division within the department responsible for the provision of specialist strategic and technical leadership, including advice in relation to the application of Specifications and Standards, for the management and operation of Queensland road networks. Guideline means this document. "Joint Venture" means an entity comprising two or more Contractors or other parties for which prequalification is sought for the purpose of undertaking specific projects. Jurisdiction is the jurisdiction nominated in Item 2 of the Schedule, in the NPS Guidelines. "MRS" means Main Roads Specification contained in the Standard Specification Roads issued by the department. "MRTS" means Main Roads Technical Specification contained in the Transport and Main Roads Specifications issued by the department. National Prequalification System Management Committee means the group of suitably knowledgeable and experienced representatives for state and territory authorities who are responsible for addressing issues occurring nationally, and to manage and coordinate national sanctions and appeals. NPS means the National Prequalification System for Civil (Road and Bridge) Construction Contracts developed by Austroads. NPS Guidelines means the National Prequalification System for Civil (Road and Bridge) Construction Contracts Guidelines and Application Forms developed by Austroads. "Parent Company" means, with respect to a corporate applicant, a parent company within the meaning of federal companies legislation. "Participants" means the entity participant(s) in an applicant. Participating Authority is the road authority listed in Item 1 of the Schedule to the NPS Guidelines. Prequalification and Contracts Unit means the unit within the Program Delivery & Operations (PD&O) branch of the department, responsible for, amongst other duties, the maintenance and improvement of departmental specifications and standard forms of contract. "Prequalification Committee" means the group consisting of the Executive Director (RoadTek) (Member), Director (Prequalification and Contracts) (Chairman), Principal Manager (Prequalification and Contracts) (Member), Manager (Prequalification) (Secretary). The Committee is responsible for overall management of the Prequalification system. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

11 Volume 3 (Prequalification System) "Prequalified Contractors" mean those Contractors approved by the Prequalification Committee, using the National Prequalification System and TIPDS Volume 3 assessment procedures, to tender for construction of infrastructure projects. "Prequalification Level" means the level of financial capability, as well as the level of technical capability related to roadworks and/or bridgeworks for which an applicant is prequalified to tender. "Principal" is the State of Queensland acting through the Department of Transport and Main Roads. "Principal's Delegate" means the officer of the department delegated with the responsibility and authority to act on behalf of the Principal in relation to a particular contract in accordance with the terms of the contract. "Principal's Representative" means the person appointed by the Principal to administer a specific contract. "Qualified Civil Engineer" means a person with tertiary qualifications from a recognised civil engineering faculty and with sufficient experience to be eligible for acceptance as a Chartered Member of the Institution of Engineers, Australia (CPEng), for entry in the Civil Category of the National Professional Engineers Register (NPER) or for registration as a Registered Professional Engineer Queensland (RPEQ). "Queensland Procurement Policy" means the policy of the Queensland Government established for the purpose of ensuring that all government purchasing activities achieve value for money and are conducted with transparency, probity and accountability. Restricted Prequalification means prequalification which has been restricted as the application does not meet the standard eligibility criteria (such as unincorporated Joint Venture and government entities and agencies). "Referee" means a person nominated by an applicant who can be available to assessors for the purpose of verifying details of experience of the applicant and/or its key personnel. Register Manager means the person nominated within Engineering & Technology to establish and maintain (including technical assessments) a specific list of Registered Specialist Suppliers with a view to monitoring ongoing performance, as detailed in TIPDS V3, Part B. Registered Specialist Supplier means a supplier of specific high cost or specialised products or services which the department has assessed as possessing particular technical and management capabilities required for road and/or bridge construction, and which has been included on the department s Register Specialist Suppliers list. Registered Specialist Suppliers are generally engaged by Contractors to provide a product or service. Registered Specialist Suppliers wishing to tender on the department s major projects as Principal Contractor may also apply for prequalification under the National Prequalification System. "RoadTek" is the commercialised construction unit of the department. Roadworks means works involving the construction and maintenance of roads consisting of pavements, earthworks and drainage. Schedule means the Schedule to the NPS Guidelines. Show Cause Notice means a formal notice issued by the department to a prequalified contractor, usually following a significant non-conformance or a series of non-conformances, requesting Transport Infrastructure Project Delivery System, Transport and Main Roads, July

12 Volume 3 (Prequalification System) reasons/explanations as to why the contractor s prequalification status should not be reviewed, downgraded or cancelled. Tender includes quotation, proposal or registration/expression of interest. "Tender Assessment Panel" means a group appointed by the Principal's Delegate to assess tenders received for a specific project, including determination of the best tender. "Tenderer" means a Contractor who wishes to bid for works under a contract with the department. TIC means the department s Transport Infrastructure Construction Contract; based on Australian Standard AS2124. TIPDS means the Transport Infrastructure Project Delivery System, of which this document belongs. 5 Prequalification Section 5.1 applies for prequalification of road and bridge construction contractors. Section 5.2 applies for prequalification of asphalt contractors, which is a Queensland only system. 5.1 Prequalification of road and bridge construction contractors For prequalification of road and bridge construction contractors, refer to the NPS Guidelines (on the department s website) in addition to this TIPDS Volume Prequalification of asphalt contractors The requirements of Appendix C (i.e. TIPDS Volume 3A - Appendix C - Asphalt Prequalification) apply for prequalification of asphalt contractors. 6 Prequalification stages and processes 6.1 Submission of applications Applications for prequalification shall be submitted using the Application Form (refer to Section 10 Associated Documents) in TIPDS Volume 3, and should be: Addressed to: Secretary of Prequalification Committee Infrastructure Delivery Services Program Management and Delivery Department of Transport and Main Roads GPO Box 1549 Brisbane Qld 4001 OR Hand delivered to: Secretary of Prequalification Committee Infrastructure Delivery Services Program Management and Delivery Department of Transport and Main Roads Level 6, 313 Adelaide Street Brisbane Qld 4000 Applications for prequalification should consist of a completed application form together with any other supporting technical or financial information. Applicants are advised to submit two copies of the complete application form and attachments, one hard copy and one electronic copy (by CD or memory stick). Transport Infrastructure Project Delivery System, Transport and Main Roads, July

13 Volume 3 (Prequalification System) Lodgement of applications by facsimile or is not acceptable. Requests for information regarding applications should be made to: Senior Prequalification Officer Telephone: (07) contractorprequal@tmr.qld.gov.au or Principal Advisor (Prequalification) Telephone (07) Initial applications General New applications for prequalification may be made at any time, using the NPS Application Form. Refer to Section 10 Associated Documents. Applicants that have full prequalification from a participating authority in a different jurisdiction, under the NPS, may apply for mutual recognition in accordance with TIPDS Volume 3. Each State Authority has the right to assess appropriateness of the level of prequalification the applicant is seeking. Refer to Section 10 Associated Documents for the Mutual Recognition Form. Important note - Changes in circumstances Prequalified Contractors are required to immediately advise the Prequalification Committee of any material change in their ownership, holdings, management system status, financial and managerial capacity as well as changes to key personnel including Project Managers, Project Engineers and Supervisors. Assessment of applications by Prequalification Committee Applications for prequalification will be assessed by the Prequalification Committee in accordance with the requirements of TIPDS Volume 3. This assessment will determine if the applicant meets the requirements for the specific category or categories and to determine an appropriate financial level. Expert advisors in various specialist areas may be used to individually assess the various schedules in accordance with the selection criteria and advise the Prequalification Committee on relevant matters. The Prequalification Committee is entirely responsible for any decisions regarding the Contractor's application for prequalification. The Prequalification Committee consists of four members: Executive Director (RoadTek) (Member) Director (Prequalification and Contracts) (Chairman) Principal Manager (Prequalification and Contracts) (Member), and Manager (Prequalification) (Secretary). Note that applicants will be allocated a Roadworks and/or Bridgeworks Prequalification Level that reflects both the experience of key personnel and the successful completion of projects by the Contractor in their operational capacity. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

14 Volume 3 (Prequalification System) During the assessment period, applicants may be required to provide further information, to the Prequalification Committee, to support their application. Failure to respond adequately and promptly may result in an application being declined or a lower prequalification level being granted based on the existing information. Notification of Prequalification level Applicants will generally be notified of their Prequalification Levels in writing within six to eight weeks of their application, assuming they have addressed all relevant parts of the applications as per the NPS Guidelines. It should be noted that it may take longer to complete the assessment of certain types of company structures, such as joint ventures or companies which rely on the support of a parent company. Notifications will include, where warranted, any specific restrictions or conditions applicable to the granted Prequalification Level. Reviews of Prequalification levels granted and appeal process Where the department s Prequalification Committee made the decision which the organisation is applying to have reviewed or is appealing, the review or appeal must be lodged with the Prequalification Committee. Where the National Prequalification System Management Committee made the decision which the organisation is applying to have reviewed or is appealing, the review or appeal must be lodged with that Management Committee in accordance with TIPDS Volume 3. Where an organisation wishes to review or appeal a decision made by the department s Prequalification Committee, the following issues in addition to those detailed in TIPDS Volume 3, will need to be addressed. applicants are encouraged to firstly contact the department s Senior Prequalification Officer to discuss the reasons for the decision with which the applicant is unsatisfied following this discussion the applicant may request a review of the decision if they believe that through the submission of additional information, a different decision could be made. The review will only take place if sufficient additional information is submitted to warrant a review. The review would be carried out by the original assessor where possible. The request for review must be submitted to the Prequalification Committee within twenty (20) business days of the letter advising of the Prequalification Committee s decision and made in accordance with TIPDS Volume 3 alternatively following the discussion with the Senior Prequalification Officer, the applicant may choose to appeal the original decision made by the department s Prequalification Committee. Any appeal is to be made and processed in accordance with the NPS Guidelines Section 6.4, in addition to TIPDS Volume Prequalification checks, performance reporting and reviews Prequalification checks prior to awarding contracts For infrastructure projects, before the contract is awarded, a check is carried out on the tenderer who submits the "best" tender to confirm its current Prequalification Levels and current financial and technical capacities. This is known as a P-Schedule check, as it involves completion and assessment of information contained in the P-Schedules P1 to P5 of the tender documents by the department s Transport Infrastructure Project Delivery System, Transport and Main Roads, July

15 Volume 3 (Prequalification System) Prequalification and Contracts Unit (P-Schedules P6 and P7 are checked by the Tender Assessment Panel). P1 to P3 are used to ensure that the tenderer s financial resources are sufficiently robust to complete the contract. P4 is to ensure that the tenderer will employ appropriate subcontractors and suppliers. P5 will list the mandatory key personnel requirement as part of the contract requirement. The best Tenderer shall, within three working days of the date of written request, provide the following information to the Senior Prequalification Officer ( contractorprequal@tmr.qld.gov.au): P1 - details of all its current work commitments (not only the department s projects). This form should reflect all the current works that is being undertaken by the prequalified entity. It includes TMR works, Local Authority works, all subcontract works (for example, subcontract works to Roadtek), and any other non-road infrastructure works (Form C6810.P1) P2 - Current Security Exposure (Form C6810.P2). This form should reflect outstanding securities on all projects P3 - updated cash flow situation (include estimate for project duration or up to the next twelve months) (Form C6810.P3) P4 - any known major subcontractors and/or known suppliers (Form C6810.P4), and P5 - key personnel available for the proposed contract. Key personnel s resume should include educational qualification and relevant experience to the position he/she nominated with his/her attributes to the role. Also include the proposed time commitment of each person (Form C6810.P5). Any recommendations within the assessor s P-Schedule report are to be addressed by the Tenderer and Tender Assessment Panel prior to the awarding of any contract. Important note - Unsatisfactory P-Schedules Submission If the assessors of the P-Schedules are not satisfied with any of the responses contained in the completed P-Schedules during the pre-award prequalification check, they may recommend within the report to the Tender Assessment Panel that the tender be rejected. Further TMR has identified a correlation between poor performance on projects and multiple iterations to obtain an acceptable P-Schedule P5. It is critical that the Contractor nominates suitable key personnel at the time of tender and then provides and maintains those key personnel (within reason) during the project. Poor performance in this will be closely monitored and may have a bearing on the awarding of future work. Important note New/upgrade applications during tender period Organisations which seek to obtain prequalification or an upgrade of their current prequalification level in order to become eligible to tender for projects, may do so based on the following understandings: a) applications for prequalification need to be compiled and submitted in accordance with all requirements defined in the NPS and TIPDS Volume 3 b) it is recognised that the process of assessment of applications for prequalification generally takes about 6-8 weeks for full and completed applications Transport Infrastructure Project Delivery System, Transport and Main Roads, July

16 Volume 3 (Prequalification System) c) special treatment will not be given to Applicant s seeking prequalification (or an upgrade) immediately prior to or during the tender period, and d) generally prequalification at the project Prequalification Level will need to have been granted before tender documents will be provided. Exceptions may be granted in some extraordinary situations where, for example, a Contractor has submitted its application and the assessment is substantially complete and it is likely that the organisation will be granted prequalification at a level equal to, or higher than, the project Prequalification Level by close of Tender. In these circumstances, tender documents will be issued on the proviso that the Contractor accepts that if it is not granted a Prequalification Level equal to or higher than the project Prequalification Level by the time tenders close, its tender may be deemed nonconforming and rejected. Performance reporting and assessment Once a contract is awarded and the works have begun, the Prequalification Committee monitors the progress and performance of both the Contractor and the Administrator via Contractor Performance Reports. Assessments are based on: the Contractor's performance in accordance with the conditions of contract, and a comparison of the Contractor's performance against the requirements and/or criteria corresponding to the level of prequalification granted. Further, it is recognised that the success of any contract depends not only on the performance of the Contractor but also that of the Administrator which is why the Contract Performance Report requires critical aspects of the performance of both parties to be assessed. Specific details of the Performance Reporting requirements are contained in Section 8. Review of Prequalification status The Prequalification Committee may at any time review an organisation's prequalification. In addition to the reasons outlined in this document, possible reasons for initiating a review include, but are not limited to: information provided in the P-Schedules of the "best" tender conflicts with information provided at the time of application, or the information indicates factors that may adversely affect the Tenderer's ability to complete that particular project the Prequalification Committee becomes aware of a change in the Contractor's circumstances, and where a Show Cause Notice has been issued under the General Conditions of Contract or a Contract has been terminated where continuous poor performance are reported over a period of time, or significant performance issues are identified on a project. In reviewing the Contractor's performance the Prequalification Committee or its representatives may consider any information relating to the Contractor's performance (including but not limited to the Contractor Performance Reports) and make whatever enquiries are deemed appropriate to understand the issues relating to the performance allegations. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

17 Volume 3 (Prequalification System) 7 Particular requirements for certain applicant types The majority of applications for prequalification come from established private sector Contractors operating under a limited company structure. In addition to any requirements detailed in TIPDS Volume 3, particular requirements for certain applicant types are detailed below. 7.1 RoadTek, local government and other government business units Under the NPS, RoadTek, local government and other government business units participating in open tender infrastructure works are not required to meet the financial prequalification level nominated for the project. Instead, these applicants are assessed only for restricted prequalification at the technical prequalification category specified in the tender documents. The processes for application and assessment of RoadTek and government organisations for restricted prequalification are the same as those for private sector applicants, except that financial assessments are not undertaken. Financial assessments are not undertaken for RoadTek and government organisations as their operations are funded by the government and consequently do not pose the same financial risks to the department as private sector contractors. 7.2 Registered specialist suppliers The department maintains registers of suppliers of certain high cost and specialised products and services used for the construction of transport infrastructure. The department s contract documents require Contractors to engage only specialist suppliers listed on the relevant department s specialised supplier register, where a register is applicable. It is advisable for Contractors tendering for the department s works to consider this requirement when preparing tenders. Registration of a specialist supplier depends on the supplier meeting certain technical and management requirements. If suppliers are unable to meet these requirements, their application may be rejected. Applicants for registration as a specialist supplier are advised to allow sufficient time for a comprehensive assessment of their application prior to the calling of tenders. TIPDS Volume 3 - Part B specifies the framework for registering manufacturers and/or specialist suppliers. 7.3 Members of a group of companies, or subsidiary companies Some organisations that are prequalified or intending to apply for prequalification may be part of a larger group of companies or be a subsidiary of a parent or holding company. These entities are required to apply for prequalification in their own right. If there is a short term issue where the prequalified entity is temporarily unable to meet some of the financial criteria corresponding to the level of prequalification granted, consolidated financial information for the group of companies may be used in support of the applicant maintaining its prequalification provided the parent or other group members offer to guarantee the applicant s specific performance. In such circumstances, the parent or related entities must also provide financial information for assessment. If the Prequalification Committee is satisfied that overall the combined financial capacity of the group of companies meets the requirements for prequalification, it may allow the entity which is prequalified to maintain its prequalification. This would be conditional upon the parent and/or related companies providing certain undertakings (to the satisfaction of the Prequalification Committee) which may include one more of the following: Transport Infrastructure Project Delivery System, Transport and Main Roads, July

18 Volume 3 (Prequalification System) an unconditional bank guarantee (in addition to the normal contractual securities) for an amount to be determined by the Prequalification Committee based on advice from the department s financial advisors a Deed of Covenant and Assurance (normally used where the parent or related companies are not civil construction companies) a Deed of Cross Guarantee (normally used where the parent or related companies are also civil construction companies and could guarantee not only the financial performance of the prequalified entity but could also take over any contracts and guarantee the completion of the works in the event of default by the prequalified entity). Where the parent or related company is based overseas, an unconditional bank guarantee would normally be required. The guarantee would need to be provided by and claimable through a AAA rated Australian bank or a foreign bank with a full banking licence in Australia and permanent branches established in Australia (preferably within Queensland). In assessing the combined financial capacity of the group, independently-audited financial statements not more than twelve months old need to be provided for the parent and related companies. The above arrangements will only be considered where the department is satisfied that the combined financial capacity of the group of companies meets the prequalification financial requirements. 7.4 Newly formed companies The department recognises the difficulties that newly formed companies can face in meeting certain criteria when applying for prequalification. These difficulties can include: not meeting the profit performance criteria in the assessment of financial capability due to a lack of trading history difficulty in obtaining final certification of their quality systems without having actually constructed a project, and difficulty is showing significant past company experience due to lack of previous projects. Where such companies have difficulty meeting one or two of the assessment criteria but are strong in meeting all other criteria, the Prequalification Committee may (at its discretion) grant conditional prequalification to allow entry into the market. The conditional prequalification would be subject to review at the completion of two contracts. The Contractor would generally be required to fully meet all of the requirements for unconditional prequalification (except profit performance) after completion of the two contracts. Whilst this conditional prequalification is in effect, a maximum of two concurrent contracts may be awarded to the Contractor. Release of documents to the Contractor to allow further tendering will be at the discretion of the department. 7.5 Overseas contractors The requirements for prequalification of overseas Contractors are the same as for Australian Contractors and will be assessed in accordance with the NPS and TIPDS Volume 3. In addition, the department will consider prequalification applications from overseas Contractors but recognises there will be difficulties for such Contractors in establishing operations within Australia. Some of the challenges and difficulties faced by the Contractor may include: Transport Infrastructure Project Delivery System, Transport and Main Roads, July

19 Volume 3 (Prequalification System) the cost of establishing operations with no guarantee of immediate work the need to mobilise staff quickly after contracts are awarded in order to meet contractual time obligations a lack of knowledge and experience with local ground conditions having no established relationships with local suppliers (materials and plant) and subcontractors a lack of knowledge of local legislation including environmental and work health and safety legislation, and a lack of familiarity with the department s standard forms of contract and specifications. To ensure the department has confidence in the capabilities of the overseas Contractor, the application for prequalification should also include a written submission outlining how the Contractor proposes to manage the above and any other foreseeable challenges. For overseas applicants, the following particular requirements apply: the applicant is required to be a registered business within Australia and must nominate their Australian Registered Business Number (ARBN) in their application independently audited financial statements no more than three (3) months old must be submitted in support of financial data supplied. The statements must be prepared in accordance with international accounting and auditing standards and written in English. The independent auditor must be an organisation which is recognised by the department s financial advisors where the department does not have full confidence in the accuracy of the financial statement, it reserves the right to reject the application or request certain securities in addition to the normal contract securities. The amount and form of the securities (if any) will be determined by the Prequalification Committee based on advice from its financial advisors. The securities required would be in the form of an Unconditional Bank Guarantee provided by and claimable through an approved Australian bank or a foreign bank with a full banking licence in Australia and permanent branches established in Australia, preferably within Queensland the Applicant must have banking facilities in Australia with an Australian bank or a foreign bank with a full banking licence in Australia and permanent branches established in Australia written applications for prequalification must be submitted in English and key personnel nominated in the application must be fluent in speaking English. If the applicant is granted prequalification with the department, it is reminded that (like all other Prequalified Contractors) its performance will be monitored during construction projects (refer to the TIPDS Volume 3 appendices for more information). Overseas Contractors need to ensure that if awarded a contract, issues associated with them being based outside Australia are effectively managed and do not adversely impact upon the performance of the contract. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

20 Volume 3 (Prequalification System) 8 Contractor performance reporting 8.1 Introduction Performance Reports which report on the Contractor's performance are intended to provide up to date assessments in relation to prequalification levels based on actual project details and circumstances. Reports which indicate a high standard of performance are intended to assist the Prequalification Committee in consideration of applications for increases in the Contractor s prequalification level. Reports of less than satisfactory performance are intended to be used by the Prequalification Committee as a basis for discussions with the Contractor regarding proposed actions to remedy performance deficiencies, or may trigger a review of a Contractor's prequalification status in the case of serious or repeated performance issues. Performance Reports should be completed for all contract types where Prequalified Contractors are utilised. For TIC (formally known as RCC), there are requirements in the contract conditions regarding completion and submission of performance reports that must be followed. For Alliances and other contract types, there could be other specific requirements too. For more information, contact Director (Prequalification and Contracts) of the Program Delivery & Operations Branch (PD&O). The aims of Contract Performance Reports are to: promote the process of continuous improvement in the delivery of infrastructure projects check that the Contractor has complied with certain requirements relating to the start-up period of the contract facilitate periodic/regular joint performance assessments by the Administrator and Contractor to identify and resolve issues in a timely manner formally advise the Principal's Delegate of current contractual non-compliances for timely responses provide assessments of the Contractor's performance to the Prequalification Committee, as a check to confirm a Contractor's prequalification status and to monitor performance trends over time provide the tender assessment panels with data on a Contractor s performance history when project specific non-price criteria relating to past performance are used recognise good and superior performance and manage poor performance to provide a tool to be used by the Administrator and Contractor to identify any performance issues as the contract progresses, which may facilitate early discussions and resolution of issues regarding the performance of either of the parties, and encourage cooperative relationships between prequalified Contractors and the department. Note - Contracts with no Administrator On some department contracts, a Principal's Representative is used in lieu of an Administrator. Wherever the term Administrator is used in this chapter, it is taken to also mean Principal's Representative in the above context. Transport Infrastructure Project Delivery System, Transport and Main Roads, July