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) [email protected] 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 ( [email protected]): 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

21 Volume 3 (Prequalification System) Performance reports assess the following broad areas of performance: application of systems capability and experience of both the Contractor s and Administrator s teams relationships management of claims and disputes, and external considerations. Within each area, performance is assessed and rated from 0-5 based upon the Contractor Performance Scoring Guide. An electronic version of the Performance Report is available on the department s website. Assessment of the performance of the Administrator s team has been included in the Performance Report, as it is recognised that the success of the project, depends not only on the Contractor s performance but also the Administrator s performance. This 360 degree feedback provides the Prequalification Committee with a balanced view of the overall performance of the entire project team. 8.2 Types of performance reports There are two different types of performance reports required to be completed: 1. Contractual Requirements List. Form C7875 is sent to the Region and is to be completed by the Administrator when the requirements listed in Form C6872 have been completed by the Contractor. Form C6872 is sent to the Contractor with the Letter of Acceptance. 2. Contractor Performance Report (Form C7876). Refer to Criteria for Assessment of Performance on what each scoring criteria means. Refer to Section 10 Associated Documents on where to download these templates. The minimum requirements for frequency of Contractor Performance Reports are: every month of the contract (monthly performance report) following the practical completion of the contract (Practical Completion performance report) following the issue of the Final Certificate (Final performance report), and at other times (as determined and directed by the Prequalification and Contracts Unit) if there is a continuing period of unsuitable performance on a contract by the Contractor, or if a contract is terminated. The same template (C7876) shall be used for the different stages of reporting. It shall be clearly indicated on the form whether it is a monthly report, Practical Completion performance report, or Final performance report. The Practical Completion performance report is the main source of data for the evaluation of the overall performance of the Contractor. The Final performance report is to evaluate the performance of the Contractor during the defects liability period. Completion and / or processing requirements for the various types of reports are as follows: Transport Infrastructure Project Delivery System, Transport and Main Roads, July

22 Volume 3 (Prequalification System) Table 1 Summary of contractor performance report requirements Type of report Completed by When report Type of report Contractual Requirements List (Form C7875) Administrator Four weeks from date of Letter of Acceptance Prequalification Committee. Scanned and ed to [email protected] Monthly Performance Report (Form C7876) Contractor, Administrator, and comments from Principal As per the contract requirements. If nothing is specified, within one month after the meeting. Prequalification Committee. Scanned and ed to [email protected] Practical Completion Performance Report (Form C7876) Contractor, Administrator, and comments from Principal As per the contract requirements. If nothing is specified, within one month after the meeting. Prequalification Committee. Scanned and ed to [email protected] Final Performance Report (Form C7876) Contractor, Administrator, and comments from Principal As per the contract requirements. If nothing is specified, within one month after the meeting. Prequalification Committee. Scanned and ed to [email protected] Reports which indicate a high standard of performance assist the Prequalification Committee in consideration for upgrading a Contractor's prequalification status. Conversely, reports of "less than satisfactory" performance may result in the cancellation, suspension or downgrading of a Contractor's prequalification status. 8.3 Completion and submission of performance reports The Contractor shall organise Performance Assessment Conferences (which could be on the same day as the monthly site conferences) on a monthly basis to monitor, review and discuss matters related to the performance by the Contractor and the Administrator against the criteria set out in Form C7876. Performance Assessment Conferences shall be attended by the Administrator and the Contractor, and/or their senior representatives. The Principal, at its sole discretion, may attend, or elect a delegate to attend on its behalf, any Performance Assessment Conference. The Contractor will chair the Performance Assessment Conference and will arrange for the recording and publication of the minutes of meeting. The Administrator and the Contractor shall jointly score the Form C7876 and agree the final scores, comments and content of the Form C7876 prior to submission to the Principal for review. In the event that the Contractor and Administrator disagree on the final score on any of the criteria, the reasons behind such disagreement shall be documented in the Form C7876. The Contractor will, within 14 days of the Performance Assessment Conference, obtain the signature of the Administrator on the Form C7876 and submit the form to the Principal. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

23 Volume 3 (Prequalification System) Within 14 days upon receipt of the Form C6786 from the Contractor, the Principal shall complete its review of the scores, add any comments and sign the Form C6786. The Principal shall furnish the Contractor and the Administrator with a copy of the completed Form C7876. Within three days upon receipt of the completed Form C7876 from the Principal, the Contractor shall submit a scanned copy (portable document format or PDF) via electronic mail to: address: [email protected] Program Management and Delivery Attention: Senior Prequalification Officer with the Administrator copied in the particular correspondence. At the end of the Defects Liability Period and prior to the issuance of the Final Certificate, the Contractor shall organise a Final Performance Assessment Conference to jointly review and score with the Administrator their respective performances during the Defects Liability Period, all in accordance with the relevant criteria set out in Form C Other considerations Where there is a disagreement about performance, every effort should be made by each of the parties to understand the concerns of the other party, resolve the matter, and then agree on a score for the criteria. The intention of this approach is that performance issues are identified and discussed as the project progresses rather than allowing them to go unresolved. Both parties must be able to support scores given with factual evidence where a difference in scores of two points or more cannot be resolved. Generally, the evidence should be attached to the Performance Report at the time of submission. The Prequalification Committee may also request additional information after the report has been submitted or during any future reviews to assist it in understanding any allegations of poor performance. Such factual evidence may include: audit reports technical reports photographs letters or memoranda site instructions, and minutes of site meetings. The parts of the report which assess the Administrator s performance may be used by the department for the professional development of internal Administrators or to enhance the process for engagement of external Administrators. If at any stage in the above process the Contractor or Administrator has any concerns, either may contact the members of the Prequalification Committee directly to discuss their concerns. The Prequalification Committee will consider the scores and any supporting information provided by each of the parties and shall take a balanced view in the assessment of the Performance Report. The Prequalification Committee will also take into account the Contractor's history of performance on previous contracts with the department rather than just considering a single report in isolation. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

24 Volume 3 (Prequalification System) Appropriate action will be taken where adverse performance can be substantiated. In the case of an isolated incident of adverse performance the Prequalification Committee may write to the Contractor advising that the incident has been noted. Alternatively, in some cases the Prequalification Committee may meet with the contractor to discuss performance concerns and seek assurances that remedial measures will be implemented. Where there is a history of poor performance (or a single serious noncompliance) with no attempt by the Contractor to improve, the Prequalification Committee may consider downgrading or cancelling the Contractor's Prequalification Level, in accordance with the requirements of TIPDS Volume 3. It should be noted that even if no supporting documentation is attached to the Performance Report, the Prequalification Committee may still issue a Show Cause Notice to the Prequalified Contractor on the basis of the low scores given over a number of contracts. The onus is on the Prequalified Contractor to respond to the Show Cause Notice and satisfy the Prequalification Committee that action should not be taken with respect to its Prequalification Level. External considerations "Design Errors and Omissions" has been included as one of the assessment criteria to be scored by the Contractor and Administrator. The reason for this is so that if there are genuine design problems which caused difficulties in the construction of the project, the Prequalification Committee will take this into consideration when reviewing the assessment of the Contractor's performance. It is not intended that these scores be used (in isolation) to take action against the designer, as there is a separate prequalification system for Engineering Consultants with a performance reporting mechanism to address issues regarding the performance of the Designer. It is also expected that any concerns with the design (as evidence by scores of two or less) would be brought to the attention of the Designers as the job progresses and must be supported by factual evidence. Such evidence may also be used at the completion of the project when the Performance Report on the Designer is being compiled. Serious concerns may trigger an investigation as the job is progressing rather than waiting until the construction is completed. 8.5 Site visits by prequalification committee From time to time, members of the Prequalification Committee or their nominated representatives may visit a construction site or attend one or more of the monthly site meetings for any of the current contracts with the department. The purpose of these visits is to: assist the Administrator and Contractor in effectively and consistently completing monthly Performance Reports allow the Prequalification Committee to understand any issues on the project which may have been included in Performance Reports or may potentially be included in future Performance Reports provide an opportunity for members of the Prequalification Committee to meet and get to know various Contractors and Administrators, and allow the Prequalification Committee to review the effectiveness of the performance reporting process and develop improvements as required ensuring that it is a useful tool for both the Prequalification Committee and Contractors/Administrators/Principals. Given the limited resources available to the Prequalification Committee, it is envisaged that such visits would generally be infrequent. For small, simple projects the Prequalification Committee may decide Transport Infrastructure Project Delivery System, Transport and Main Roads, July

25 Volume 3 (Prequalification System) not to visit the project. The frequency may increase for select projects where there are particular complexities or performance issues of which the Prequalification Committee is aware. The Prequalification Committee or its representatives will visit the sites as observers only and will provide no direct input to the operation of project. Before visiting any site, the Prequalification Committee will generally notify the Contractor and Administrator in writing seven days prior to visiting the site. If there are particularly urgent matters where the Prequalification Committee considers a site visit is needed, 24 hours notice will be given. The Contractor, Administrator or Principal must not deny access to the Prequalification Committee if they wish to visit any construction site. 9 Confidentiality and undertakings 9.1 Availability of prequalification information The information available to assessors for the purposes of assessing prequalification in accordance with the NPS may be available on a confidential basis to other government agencies for the purpose of conducting their own prequalification and Tenderer selection processes or in mutually recognising a Contractor s Prequalification Level. Prequalification information on particular Contractors may also be made available (on a confidential basis) to internal departmental officers for the purposes of any internal audits. Information provided with applications will be retained by the department for a minimum of seven years and will not be disclosed to any other party (except as defined above): unless legally required to do so unless to obtain assessment, legal or financial advice, or where required for an assessment of a prequalification review or appeal. No responsibility is accepted by the department, for any consequences to a prequalified organisation or any other party arising from the release of any such information. 9.2 Disclaimer The decision to approve or reject, with or without conditions, any application for prequalification is at the absolute discretion of the department. The department is not liable for any costs or damages incurred in the exercise of such discretion or the discretion to cancel, suspend or downgrade a Contractor s Prequalification Level. This prequalification system in accordance with the NPS was developed for the department s internal purposes. The department does not represent or warrant that any of the Prequalified Contractors are technically capable, financially sound or have any other characteristics. Any party seeking to deal with an organisation prequalified by the department must rely on its own enquiries. 9.3 Acceptance by applicants In applying for prequalification or for renewal or upgrading of prequalification, the applicant is deemed to have accepted these conditions which may be varied from time to time. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

26 Volume 3 (Prequalification System) 9.4 Prequalification notices Prequalified Contractors and others to whom TIPDS Volume 3 has been issued, such as industry associations, local governments, and the department s officers, will be notified in the following circumstances: when significant changes have been made to TIPDS Volume 3, in which case a copy of the changes and explanatory notes will also be included, or when applications for renewal of prequalification are being invited, in which case the timing for submission of applications and other relevant details will also be defined. Significant changes shall only be made to TIPDS Volume 3 following consultation with the contracting industry about the need for and the format of proposed changes. 10 Appendices and associated documents The following Appendices and Associated Documents can be downloaded from the following link: Appendices: A B C Management Systems and Arrangements Capability and Experience Levels Asphalt Prequalification Associated Documents: 1 Contractor Performance Report 2 Contractual Requirements Checklist 3 NPS Prequalification Application Form 4 NPS Mutual Recognition Application Form 5 NPS Guidelines 6 Application Form - Asphalt Prequalification 7 Warranty Deed 8 Performance Report Scoring Guide - Asphalt Prequalification 9 Performance Report - Asphalt Prequalification Transport Infrastructure Project Delivery System, Transport and Main Roads, July

27 Volume 3A (Prequalification System) Volume 3A: Appendix A - Management systems and arrangements 1 General Civil engineering construction inherently involves significant risks. The consequences of incorrectly carrying out non-reversible construction processes can be severe in terms of cost implications, safety of workers and the public generally, and/or environmental issues. Applicants are expected to have adequate management systems developed which are appropriate for prequalification at the level sought. Applicants must also be able to demonstrate that these management systems have been effectively used on previous projects. The responses to this part of the prequalification application must provide confidence to the Prequalification Committee that: a) the applicant can manage and minimise the risks associated with the projects, in particular, quality, environment and safety management. In the event of adverse consequences occurring, management systems must incorporate processes or procedures: to minimise those consequences and their impacts to promptly rectify any shortcomings or errors and communicate impacts to relevant stakeholders, and to minimise risk of recurrence. b) the applicant has adequate project management systems and skills to deliver projects to the satisfaction of the department. This includes time and cost control, traffic management and management of subcontractors c) the applicant has adequate systems and skills to effectively manage project communications and relational aspects. Further to the information requested in the NPS, applicants for prequalification to Queensland must also address the additional requirements as stated below to the satisfaction of the department. For the Queensland based asphalt prequalification system requirements, please refer to Appendix C of this TIPDS Volume 3. 2 Management system requirements 2.1 General The applicants must provide adequate documentary evidence that they have management systems and defined procedures appropriate to the type, scale and complexity of the works to be undertaken. These may be individual systems or procedures for specific requirements including for the works themselves and for the applicants main business operations, or they may be integrated in appropriate combinations. Applicants are required to have the following management systems developed and provide evidence that the systems have effectively been used on road and/or bridge construction projects: quality management system occupational health and safety management system environmental management system management of apprentices and trainees. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

28 Volume 3A (Prequalification System) Particular requirements for each of these systems are detailed in the following sections. Where there is a requirement that a system be certified, this refers to certification by a recognised JAS-ANZ accredited certification body which may be either: a third party body a duly authorised government agency (second party). The department requires all R2 B2 and above contractors to have third party accredited quality, environmental and OH&S systems (second party accreditation will not be accepted). Where applicants have a range of separately documented management systems for different functions of their enterprise, or for different obligations, they are expected to supply information for consideration of assessors which demonstrates the interfaces between the various management systems at both corporate and project levels, and of any integration of the systems. 2.2 Quality system requirements As per the NPS requirements. 2.3 Occupational health and safety system requirements As per the NPS requirements and the following: Applicants are expected to supply summary information which enables assessment of the suitability of their occupational health and safety management systems for meeting their obligations under the Work Health & Safety Act and Regulation (2011) and subsequent amendments and regulations. This information must include as relevant to the asphalt prequalification category: summary details of the safety management system summary of the site management plan formats utilised by applicants, and nominated key positions responsible for safety and their roles and responsibilities. Applicants must also provide evidence of having used their safety management systems (including site specific safety plans) on projects relevant to their applications. Such evidence needs to demonstrate that applicants have a working knowledge of the legislation and includes example records like: list of recent relevant projects on which the above have been utilised audit reports extract from register of site induction sessions evidence of active monitoring and review of safety performance (including actions following receipt of Prohibition Notices), and so on. Assessment will be based on the suitability of the system for prequalification at the asphalt category sought. Referees who are able to verify that the system has previously been used effectively on relevant road/bridge construction projects must be nominated. For any federally funded project, the principal contractor must be accredited with the Office of the Federal Safety Commissioner, at the time the contract is awarded. Applicants for prequalification must indicate, on the NPS application form, whether they have already obtained this federal WHS accreditation. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

29 Volume 3A (Prequalification System) 2.4 Environmental management system requirements As per the NPS requirements and the following: For prequalification Levels 1 to 3 inclusive, an applicants environmental management systems shall be established along the lines of AS/NZS ISO 14001:2004 Environmental Management Systems and in accordance with all requirements and obligations defined in the Environmental Protection Act (1994). Applicants are expected to provide summary details of their environmental management system and a list of projects where the system has been used. Such information needs to demonstrate that applicants have a working knowledge of the legislation and include example records like risk assessments, site induction sessions, erosion and/or sediment control plans, and monitoring and review activities. Reports from client audits should be provided as evidence that systems have been effectively implemented on road/bridge construction projects. For prequalification road and bridge Levels 4 and above, applicants are required to have their environmental management systems certified to AS/NZ SO 14001:2004. In addition to the above information applicant's seeking road and bridge Level 4 prequalification or higher are also required to submit a copy of their current certificate with accompanying schedules detailing the scope of the certification. Table A1 - Environmental Management Assessment table Prequalification Level Minimum Environmental Management requirements application to prior projects 1 to 3 Knowledge of and technical capability to satisfy Department of Environment and Heritage Protection (DEHP) requirements for road / bridge construction. A thorough understanding and capability to apply the department s standard specification and technical standard Environmental Management (MRS51 and MRTS51). Documented environmental management system which addresses (as a minimum) risk assessment, planning, implementation and control, measurement and evaluation, and review processes and applies best practice environmental management. 4 to 5 As for Level 1 to 3 except: Certification of environmental management system to AS/NZS ISO 14001: Management of apprentices and trainees Applicants are expected to supply summary information which enables assessment of their workforce and/or management of subcontractors to meet the requirements of the Queensland Government Building and Construction Training Policy (Training Policy). For example, by provision of copies of compliance plans, interim and practical completion compliance reports on projects relevant to their applications. In the event that an applicant for road and/or bridge Level 1 prequalification has not yet implemented the Training Policy on any project, their application needs to include evidence of their knowledge and understanding of the requirements of the policy (for example, internal or external training sessions, format of intended compliance plans, and so on). If a prequalification entitlement is approved, a Transport Infrastructure Project Delivery System, Transport and Main Roads, July

30 Volume 3A (Prequalification System) condition will be that the Training Policy requirements are met on the first project completed after attaining that entitlement. 3 Project-related processes Project-related processes applicable to road and bridge construction projects undertaken for the department include: project scheduling and programming project costing (distinguished between on-site and off-site activities) process controls and defined procedures for critical components of the works (e.g. pavement construction, concreting activities) traffic and incident management procedures procurement systems, including engagement of subcontractors and supplier selection, management and control of subcontractors and suppliers and assessment of their performance, and security of payments for subcontractors and suppliers document and record control - procedures and/or arrangements for maintenance of project and reference documents, and for establishing and maintaining all quality records (including their location, submission requirements and responsibilities) cultural heritage, including comprehension of relevant legislation and project specific requirements industrial relations and human resource management systems in place to maintain a good industrial environment and ensure staff engaged are capable and competent. Applicants should provide summary information which illustrates experience with and understanding of the project related processes listed above. Evidence of application of these processes on previous projects is required. Names of referees are also required to verify the effective application of systems to manage project related processes. Applicants will be assessed on the basis of the summary information provided and whether their understanding of and experience with the project related processes is appropriate to the level of prequalification sought. 4 Project communication and relational management Aspects of project communication and relational management applicable to road and bridge construction projects undertaken for the department include: Project communication plans, including interfaces with the following parties in accordance with partnering and alliance principles: - Principal for the contract - Administrator for the contract - major subcontractors - other subcontractors, and Transport Infrastructure Project Delivery System, Transport and Main Roads, July

31 Volume 3A (Prequalification System) - suppliers. Communications strategies, plans and processes for each of the following groups: - adjoining landholders - local community - cultural heritage and environmental stakeholder groups - road users - emergency services - media. Systems for managing the impact of road/bridge construction on existing services and dealing with statutory, regulatory and utility services authorities, including evidence of current knowledge about relevant legislation and permits (for example, IPA, ERA, requirements): - state government agencies - local government - water and sewerage services - telecommunications - electricity, gas and so on. Applicants should provide summary information which illustrates experience with and understanding of the project related processes listed above relevant to the level of prequalification sought. Evidence of application of these processes on previous projects is required. Names of referees are also required to verify the effective application of systems to manage project related processes. Table A4 below gives guidance on how this aspect of the prequalification application will be assessed. Table A4 - Project communication and relational management Prequalification level Assessment guidelines 1 to 2 Applicant has demonstrated adequate understanding of the importance of and sufficient capability to manage relevant interfaces listed in Section A3. 3 to 5 Applicant has demonstrated a high standard of capability to proactively manage multiple and interactive interfaces listed in Section A3, proactively provides all stakeholders with timely and relevant project information, and has adequate control of them using documented procedures (including for incidents, monitoring and reporting) and integrated information systems capable of access by agreed third parties (for example, Emergency Services) as warranted. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

32 Volume 3A (Prequalification System) Volume 3A: Appendix B - Capability and experience 1 General Critical to the success of any project is the capability and experience of the construction contractor and its key personnel. This part of the prequalification assessment considers the applicant s: organisational structure and its proven effectiveness for road/bridge construction road/bridge construction experience of the applicant organisation road/bridge construction experience of the applicant s key personnel For requirements of the Queensland based Asphalt Prequalification system, please refer to Appendix C of this TIPDS Volume 3. 2 Guiding principles The following guiding principles shall be taken into account in assessment of the capability and experience of applicants: a) applicant organisations must have adequate experience and competence in road/bridgeworks activities, specialties and complexities expected at the project level for which prequalification is being sought. It may not be sufficient to simply recruit staff with the appropriate experience, proven ability of key personnel to work together effectively as a team, must also be demonstrated b) staff of applicants must have adequate experience and competence in road/bridgeworks activities, specialities and complexities expected at the project level for which prequalification is being sought. (The complexity and/or specialities of some projects may require project specific "pre-registration" in order to establish that prequalified constructors have sufficient adequately qualified staff for such projects prior to tenders being invited/accepted) c) engineers with tertiary qualifications in the relevant disciplines must be included in the staff of applicant organisations for on-site supervision and/or decision making when technical processes of a critical nature are underway (for example, foundations, pile driving, concrete pouring, prestressing of concrete). For Level 1 prequalification, consultant engineers may be used provided the applicant is able to demonstrate these arrangements have been effectively used on previous projects d) experience requirements defined in the tables of requirements for the various levels of staff and for the various project levels are generally minimum requirements, subject to application of principle (e) below where warranted e) individual members of the applicant's managerial staff who do not have the nominated minimum length of experience on works of the relevant type, scale or complexity may be accepted provided that: i. the total length of experience of the overall managerial team satisfies the intent of the various requirements, and ii. the applicant has adequate measures in place to compensate for any shortcomings on the part of individual members of the managerial team. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

33 Volume 3A (Prequalification System) f) these criteria apply in the same manner as defined above to staff engaged by an applicant for a particular project, function, or work activity, and for managerial staff of nominated subcontractors and specialised suppliers. 3 Organisational structure As per the NPS requirements. 4 Construction experience of the applicant As per the NPS requirements. 5 Key personnel experience As per the NPS requirements and the following: Important note It is critical that Key Personnel who have been assessed as part of the Prequalification Application are (within reason) available when projects are tendered and not substituted by alternative personnel who have not previously been assessed by TMR. TMR acknowledges that staff turnover is a normal part of any organisations business however changes in Key Personnel should generally be advised to TMR as they occur and not discovered during P-Schedule checks just prior to awarding contracts. Individual tenders that require multiple P-Schedule checks, due to the tenderer resubmitting information (including Schedule P5 - Key Personnel) that does not satisfy the minimum requirements of the particular tender documents, will be regarded as a serious performance breach and may result in suspension of Prequalification and a recommendation to the Tender Manager that the contract not be awarded to that Tenderer. Key personnel should be classified into the following categories: managerial including directors (where applicable), area manager, operations management team and so on professional including project manager, project engineers, civil engineers, technical specialists (for example, structural, geotechnical, erosion control, environmental, cultural heritage, communications and so on) para-professional including engineering associates, construction technicians, works overseers supervisory including works supervisors, foremen and so on. The experience requirements specified in this document for key personnel are the minimum requirements in order for applicant to be eligible for prequalification. Project specific requirements for key personnel experience may be defined in the Supplementary Conditions of Contract. Generally, these requirements should be consistent, but in some cases there may be differences. Applicants are required to submit Key Personnel Experience Profile and Key Personnel Resume as part of their applications. Brief (one page) CVs should also be provided for all project managers, project engineers and supervisors. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

34 Volume 3A (Prequalification System) Table B1 - Key personnel experience - roadworks Experience level Assessment guidelines Managerial, Professional/Para-Professional (Project Managers) - Staff at all levels should have at least two years experience in roadworks of the types defined for Level 1 in NPS. A qualified civil engineer should be engaged for making technical decisions and managing the technical aspects of the project - a consultant engineer could be used in this role. Supervisory - Should have at least two years experience in roadworks construction of the types defined for Level 1 in NPS. Managerial - Key personnel should have at least two years experience in roadworks construction at Level 1 for state road authority or local government (may include subdivisional work). Professional/Para-Professional - The project manager should be a qualified civil engineer with at least two years experience in roadworks construction at Level 1 or higher. Others should have similar experience. Supervisory - Should have at least three years experience in roadworks construction at Level 1 or higher. Managerial - Key personnel should have at least four years experience in roadworks including at least two years experience at Level 2 and some experience at Level 3. Professional/Para-Professional - Project managers should be qualified civil engineers, and should have at least four years total experience in roadworks including at least two years at Level 2 or higher. Others should have similar experience. Supervisory - Front-line supervisors should have a total of at least six years experience in roadworks including at least three years at Level 2 or higher. Managerial - Key personnel should have at least six years experience in civil infrastructure including at least three years experience at Level 3 and some experience at Level 4. Professional/Para-Professional - Project managers should be qualified civil engineers. A significant proportion of the project managers in the Queensland: inhouse pool" should be qualified civil engineers with a total of at least six years experience in the management of roadworks including at least two years at Level 3 or higher. Supervisory - A significant proportion of the front-line supervisors in the "in-house pool" should have a total of at least nine years experience in roadworks including at least three years at Level 3 or higher. Managerial - Key personnel should have at least eight years experience in civil infrastructure including five years experience at Level 4. Professional/Para-Professional - Project managers should be qualified civil engineers. A significant proportion of the project managers in the Queensland "inhouse pool" should be qualified civil engineers with a total of at least eight years experience in the management of roadworks including at least two years at Level 4 of higher. Supervisory - A significant proportion of the front-line supervisors in the "in-house pool" should have a total of at least 12 years experience in roadworks including at least three years at Level 4. The other supervisors should have at least two years experience at Level 3 or 4. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

35 Volume 3A (Prequalification System) Table B2 - Key personnel experience bridgeworks Experience level Assessment guidelines Managerial, Professional/Para-Professional (Project Managers) - Staff at all levels should have at least two years experience in bridge works of the types defined for Level 1 in NPS. Supervisory - Should have at least two years experience in bridge works construction of the types defined for Level 1 in NPS. Managerial - Key personnel should have at least two years experience in bridge works construction at Level 1 for state road authority or local government (may include subdivisional work). Professional/Para-Professional - The project manager should be a qualified civil engineer with at least two years experience in bridge works construction at Level 1 or higher. Others should have similar experience. Supervisory - Should have at least three years experience in bridge works construction at Level 1 or higher. Managerial - Key personnel should have at least four years experience in civil infrastructure works including at least two years experience at Level 2 and some experience at Level 3. Professional/Para-Professional - Project managers should be qualified civil engineers, and should have at least four years total experience in bridge works including at least two years at Level 2 or higher. Others should have similar experience. Supervisory - Front-line supervisors should have a total of at least six years experience in bridge works including at least three years at Level 2 or higher. Managerial - Key personnel should have at least six years experience in civil infrastructure including at least three years experience at Level 3 and some experience at Level 4. Professional/Para-Professional - Project managers should be qualified civil engineers. A significant proportion of the project managers in the Queensland in house pool" should be qualified civil engineers with a total of at least six years experience in the management of bridge works including at least two years at Level 3 or higher. Supervisory A significant proportion of the front-line supervisors in the "inhouse pool" should have a total of at least nine years experience in bridge works including at least three years at Level 3 or higher. Notes to tables B1 and B2: 1. Specialist service providers would be expected to have similar length of experience in their specialty. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

36 Volume 3A (Prequalification System) Volume 3A: Appendix C - Asphalt prequalification 1 Introductions 1.1 Definitions In this document, unless the context precludes it, the following terms have the following meanings: a) This Appendix means this document, Volume 3A Appendix C - Asphalt Prequalification of the TMR TIPDS. b) Applicant means the legal entity lodging the Application c) Application means the completed submission ( Application Form ), lodged by the applicant to be prequalified in an asphalt category and a financial level d) CMT means the TMR Construction Materials Testing registration system e) E&T means the Engineering & Technology division within the department f) NATA means National Association of Testing Authorities g) National Prequalification System (NPS) means the National Prequalification System for Civil (Road and Bridge) Construction Contracts developed by Austroads and as enacted by TMR h) Prequalified asphalt contractor means an entity prequalified in an asphalt category defined in this Appendix. A requirement for an asphalt contractor to be prequalified can apply to both head contractors engaged directly by TMR, and to subcontractors/suppliers to head contractors engaged by TMR i) Specialised materials or products are those materials and/or products considered more complex to design, produce and/or work with; the use of which may present a heightened level of risk for TMR. For example this may include materials with more complex properties and/or mix designs, such as stone mastic asphalt (SMA) and High Modulus Asphalt (EME2) j) Tender includes quotation, proposal or registration/expression of interest k) TIPDS means the TMR Transport Infrastructure Project Delivery System, to which this document belongs l) TMR means the Department of Transport and Main Roads (also referred to as the department). 1.2 Overview Asphalt contractors wishing to tender for contracts requiring the supply (that is, manufacture and paving) of asphalt must be prequalified at the time of tender. Prequalification in the relevant categories is therefore required for asphalt contractors engaged by a head contractor to TMR. Prequalification at the appropriate level(s) will need to have been granted before tender documents will be provided. Exceptions may be granted in some situations where, for example, the assessment is substantially complete and it is likely that the applicant will be granted prequalification at an asphalt category equal to, or higher than, the required asphalt category. In an exceptional circumstance, tender documents will be issued on the proviso that the contractor/tenderer accepts that if the prequalification at the appropriate asphalt category for the head or subcontractor is ultimately not granted, their tender may be deemed nonconforming and rejected. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

37 Volume 3A (Prequalification System) A prequalified asphalt contractor may have one or more asphalt manufacturing plants and/or asphalt paving operations. Prequalification of asphalt contractors is a risk mitigation strategy for TMR which does not simply consist of a one-off assessment but is, in fact, a continuous process of review comprising: a) an initial assessment of an asphalt contractor s capabilities at the time of lodgement of an application (including its operational management systems) b) financial and/or technical checks during the tender assessment process, before a contract is awarded c) assessment of an asphalt contractor s performance in contract, at the completion of contracts, at the completion of a warranty period, and at other times when a review may be warranted d) periodic renewal of prequalification via submission of a new Application. TMR 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 TMR acceptance letter, but for a period of no more than three years. Asphalt 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 Appendix. Eligibility requirements are described in this Appendix, along with the terms and conditions of prequalification and the process that will be undertaken by TMR to assess and review prequalification applications. 1.3 Background Asphalt prequalification with TMR falls within the broader prequalification systems used by TMR and is managed locally at a jurisdictional level under the Transport Infrastructure Project Delivery System (TIPDS) Volume 3. TMR s asphalt prequalification system will be applied as a specialist TMR category, as permitted under the NPS. It will operate in Queensland only, as a specialist category for the prequalification of asphalt contractors that are involved in TMR works (for example, head contractor, subcontractor). 1.4 Objectives The main objectives of the TMR asphalt prequalification system are to: a) enable TMR to assess the capabilities of asphalt contractors and identify those with the requisite technical, managerial and financial capacity to efficiently deliver asphalt works in accordance with TMR s requirements b) minimise the contractual risks for TMR associated with asphalt works c) minimise the costs of the tendering process for both TMR and industry d) promote best practice in the asphalt industry, and e) ensure robust, consistent, transparent and objective processes. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

38 Volume 3A (Prequalification System) 1.5 Scope Prequalification applies to contracts that include asphalt. TMR is not precluded from adopting alternative forms of tendering (for example, open tenders or expressions of interest) for specific contracts for which prequalification may not be relevant or suitable. For projects containing asphalt, the following typically applies: a) a project containing greater than 55% of asphalt (manufacture and paving, based on value) would be subject to open competition by prequalified asphalt contractors, with any non-asphalt work being subcontracted to prequalified contractors at the appropriate prequalification level b) a project containing less than 45% of asphalt (manufacture and paving, based on value) would be subject to open competition by prequalified contractors at the appropriate prequalification level, with any asphalt work being subcontracted to prequalified asphalt contractors c) for project containing between 45% and 55% of asphalt (manufacture and paving, based on value) Principal s Representatives will use their discretion in making the final decision in calling tenders from prequalified contractors or prequalified asphalt contractors. 1.6 Translation from existing TMR asphalt supplier registration system The intention is for all registered asphalt suppliers currently registered under the TMR Asphalt Supplier Registration System (ASRS) ( registered suppliers ) to be translated across to the TMR asphalt prequalification system by the date of publication of this document. Upon submission of a signed warranty deed existing registered suppliers will be automatically transitioned as follows: a) suppliers registered for manufacture and paving will be automatically transitioned to Category A3 b) suppliers registered for paving only without a condition restricting operations to minor maintenance works will be automatically transitioned to Category A2, and c) suppliers registered for paving only with operations restricted to minor maintenance works will be automatically transitioned to Category A1 In addition and in all cases, any conditions in place for registration under the ASRS at the time of translation will become conditions of prequalification. All translated asphalt contractors are to submit an application to TMR by 30 September 2015 to allow TMR to reassess their prequalification status under this system prior to 1 January This will involve completing a full application and providing updated assessment information. Translational arrangements will continue until completion of the reassessments by TMR. A broader call for prequalification may also be advertised, to capture any asphalt contractors that are not registered, but interested in becoming prequalified. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

39 Volume 3A (Prequalification System) 2 Terms and conditions of asphalt prequalification 2.1 General Applicants for prequalification and prequalified asphalt contractors are required to comply with the terms and conditions and associated procedures described in this Appendix. 2.2 No guarantee of work Prequalification is not to be construed as a guarantee of work. Prequalification only determines an asphalt contractor s eligibility to tender, or be involved in tenders for, work and/or supply products and services, subject to meeting any local legislative/regulatory requirements. TMR complies with government procurement principles, including value-for-money, in the assessment and selection of tenders. 2.3 Application requirements To become prequalified, an asphalt contractor ( the applicant ) must select the asphalt prequalification category that it believes to be commensurate with its capabilities and submit an application form with supporting information that addresses all specified criteria. In submitting its application, the applicant gives permission to TMR to carry out such investigations as are considered necessary to evaluate the application and to determine whether it meets the relevant prequalification criteria. These investigations include, but are not limited to, a company search, bank reference checks, and inspections of the applicant s facilities and/or operations (including plant and equipment) and/or works. In undertaking its assessment, TMR may take into account other information in its possession, or information provided by other authorities or government agencies. In considering Applications from subsidiary companies or entities TMR reserves the right to examine the resources of the parent company or entity, or other related entities, if TMR considers this warranted. 2.4 Confidentiality TMR may refer an applicant s documentation to its external assessors for assessment. External assessors are required to maintain confidentiality of all information received. However, in lodging an application, applicants agree to provide the necessary authority to enable searches and enquiries to be carried out. Information submitted in an Application for prequalification will be treated as commercial in confidence and will not be disclosed to any party outside TMR and its assessors unless TMR is legally required to do so, for the purposes of obtaining legal or financial advice, or in relation to appeals regarding prequalification decisions. Once prequalified, an asphalt contractor s details, including details of its performance on specific contracts, may be shared with other government agencies for the purpose of monitoring performance and to determine continued eligibility for prequalification. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

40 Volume 3A (Prequalification System) Lists of prequalified asphalt contractors may be made publicly available by TMR on its website. Details may include: a) name and address of organisation b) unique identifier (that is ABN, ACN and/or ARBN) c) prequalified asphalt category and financial level d) date of the last assessment and/or e) notice that the asphalt contractor s prequalification status is under review (refer to Section 6.3) No responsibility is accepted for any consequences to a prequalified organisation or any other party arising from the release of any such information. 2.5 Change of circumstances Prequalified asphalt contractors have an obligation to advise TMR of any change in circumstances that may be material to their prequalification status, including any convictions or breaches of legislation or statutory regulations. Further information is provided in Section Governing law The terms and conditions of the prequalification system shall be governed by the laws of the State of Queensland. In addition prequalified asphalt contractors must comply with all relevant local, state and federal legislation and requirements, including the Queensland Procurement Policy. Where appropriate the reviews and appeals process outlined in Section 6.5 will be used. 2.7 Applicant s undertaking Acceptance of terms and conditions In applying for prequalification (including renewal) or upgrading, the applicant is deemed to have accepted the terms and conditions of prequalification, which the applicant acknowledges and accepts may be varied from time to time. Accuracy of application information The applicant must ensure that all particulars in the Application are true and correct in every detail. Use of prequalification status for advertising and promotion The applicant agrees not to use any information relating to its prequalification status or contract performance in its advertising or promotional material or publish such information in any form without the express written consent of TMR. The applicant further agrees that it accepts full responsibility for any consequences arising from the use of such information. 2.8 Warranties The applicant warrants that the asphalt (irrespective of whether the applicant is engaged directly by TMR or by a head contractor) will meet the performance requirements in the relevant specifications. The applicant agrees to enter into a Warranty Deed, provided by TMR, as a condition precedent to the granting of prequalification. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

41 Volume 3A (Prequalification System) Adherence to the warranty requirements and Warranty Deed is a condition of prequalification. A prequalified asphalt contractor must adhere to the warranty requirements, including appropriate rectification of defective works to TMR s satisfaction by way of repair or replacement of any asphalt that failed to meet the specified performance requirements. If a prequalified asphalt contractor fails to adhere to the warranty requirements then this will impact on its current and/or future prequalification status. This will also be considered in any future applications for prequalification by the asphalt contractor and/or individual entities (for example, an entity in a joint venture). 3 Asphalt prequalification categories and financial levels 3.1 Overview TMR has established prequalification categories for asphalt works as listed in Table C1. Asphalt contractors are considered for prequalification based on an assessment of their capacity to undertake contracts, and/or supply products or services, of varying technical and financial complexity and risk to head contractors. Prequalification is also awarded for specified financial levels. 3.2 Asphalt prequalification categories The four asphalt prequalification categories are outlined in Table C1. They relate to asphalt works that could reasonably be satisfactorily completed by an asphalt contractor with the relevant experience and background. Table C1 - TMR Asphalt Prequalification categories Category A1 Indicative Description of Work Non-complex asphalt paving works that meet TMR s specifications and contract requirements, pavement repairs and minor overlays on low priority roads. Except for deep lift patching undertaken as part of maintenance works, structural asphalt pavement base layers are excluded from this category. Dense graded asphalt is included in this category. High modulus (EME2) asphalt, stone mastic asphalt, open graded asphalt and proprietary thin asphalt surfacings are excluded from this category The total asphalt tonnage for the works (i.e. contract) shall not exceed 200 tonnes. The works typically include: asphalt supply and paving capacity commensurate with the scale of project coordination of the supply of registered asphalt mix manufactured by an A3 or A4 prequalified entity independently confirmed or third party certified quality, safety and environmental management systems for paving quality control and site testing of asphalt according to the specification and contract basic surface preparation, sweeping and tack coating delivery to site in suitable delivery trucks from supplier s production facility machine placed asphalt paving to manual thickness control compaction using self-propelled equipment including vibratory and pneumatic tyred rollers minor pavement repairs including profiling and filling with asphalt sampling of material for testing and cutting cores providing traffic management plans and managing site and public vehicles, and Transport Infrastructure Project Delivery System, Transport and Main Roads, July

42 Volume 3A (Prequalification System) Category A2 A3 Indicative Description of Work providing accurate contract documentation including spray sheets, quality records, site measure, and quality management plans. Complex asphalt works requiring experienced contractors with responsibility for the supply, delivery and paving of asphalt meeting TMR s specification and contract requirements, including for overlays, surfacings and structural base asphalt. Dense graded asphalt and open graded asphalt are included in this category. High modulus (EME2) asphalt, stone mastic asphalt and proprietary thin asphalt surfacings are excluded from this category. The total asphalt tonnage for the works (i.e. contract) shall not exceed 2000 tonnes. Includes Category A1 capability as well as the following typical requirements: third party certified quality, safety and environmental management systems across transport/delivery, paving and sprayed sealing processes surface preparation requiring shape correction, texturing or special prime seals under or between layers (for example, waterproofing seals, polymer modified binder (PMB), seals, strain alleviation membrane interlayers) paving to automated level control paving in echelon paving using material transfer vehicles paving asphalt including in deep lift mixes, heavy duty mixes, asphalt with PMB binders and warm mix asphalt providing traffic management plans and managing site and public vehicles on moderately trafficked roads, and demonstrated ability to manage subcontractors, including having appropriate subcontractor management systems. Asphalt paving subcontractors must be TMR prequalified asphalt contractors and must be directly supervised by the (primary) prequalified asphalt contractor. (Refer Table C.A1, in Appendix C of this TIPDS Volume 3, for further details). Complex asphalt works requiring experienced contractors with responsibility for the design, production, delivery and paving of asphalt materials meeting TMR s specification and contract requirements, including for overlays, surfacings and structural base asphalt. Dense graded asphalt and open graded asphalt are included in this category. High modulus (EME2) asphalt, stone mastic asphalt and proprietary thin asphalt surfacings are excluded from this category. Includes Category A2 capability as well as the following typical requirements: design and testing of asphalt materials to specification production through an approved fixed or mobile manufacturing plant, including batch or continuous mix types third party certified quality, safety and environmental management systems across delivery, production, paving and sprayed sealing processes production and paving capacity commensurate with the scale of project and providing traffic management plans and managing site and public vehicles on highly trafficked roads. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

43 Volume 3A (Prequalification System) Category A4 Indicative Description of Work Asphalt works requiring experienced contractors with integrated design, manufacture and paving capabilities to provide high performance asphalt meeting proprietary performance standards and/or TMR s specifications and contracts. Dense graded asphalt, open graded asphalt, high modulus (i.e. EME2) asphalt, stone mastic asphalt and proprietary thin asphalt surfacings are included in this category. Includes Category A3 capability as well as any number of the following typical activities: pavement design and material classification to provide performance solutions provision of specialist products based on performance criteria design of heavy duty high performance and specialised mixes including mix characterisation testing, and production of high quality mixes through suitable/appropriate fixed or mobile production plants. 3.3 Financial levels The financial levels are summarised in Table C2. Table C2 - Financial levels Financial Level Maximum Values F1* $1 million F2* $2 million F5 F10 F15 F20 F25 F50 F75 F100 F150 $5 million $10 million $15 million $20 million $25 million $50 million $75 million $100 million $150 million Applicants should note that the financial prequalification level is only indicative, as it represents the applicant s financial capacity at a particular point in time. TMR reserves the right to require an updated financial assessment to be undertaken prior to the award of any contract. The results of any such updated assessment will not immediately affect the financial level a contractor is prequalified for. However, a major variance between the financial level assessed at pre-award and the level prequalified in may trigger a review of the contractor s prequalification status, and may result in the contractor being excluded from further consideration with respect to the tendered works. Prequalified asphalt contractors may seek financial reassessment at any time. However, any additional costs incurred as a result of additional assessment beyond those required by this system, or updated financial assessments prior to the award of relevant contracts will be borne by the prequalified asphalt contractor. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

44 Volume 3A (Prequalification System) 4 Prequalification requirements Applicants for prequalification are required to meet eligibility criteria, and to demonstrate sufficient achievement across the criteria against which applications are assessed. The eligibility criteria and assessment criteria are detailed in this Section Entities eligible for prequalification Companies Asphalt companies that possess relevant experience in asphalt mix design (where relevant), production (where relevant), supply and construction are eligible to apply for prequalification. Joint ventures - incorporated joint ventures An incorporated joint venture is a separate legal entity that may have been formed specifically to undertake a project or projects. The entity may draw upon the resources (technical and/or financial) of the entities supporting the joint venture. An incorporated joint venture applying for prequalification must meet the criteria for prequalification in its own right. TMR recognises, however, that a newly formed joint venture may have difficulty satisfying some of the financial criteria (such as profit performance) and will therefore apply the same principles outlined below regarding newly formed companies. Newly formed companies It is acknowledged that newly formed companies will not be in a position to provide details of any significant past experience or financial capacity. As such, the suitability for prequalification of newly formed companies will be assessed by TMR on a case-by-case basis, taking the entity s status into account. Joint ventures - unincorporated joint ventures Unincorporated joint ventures may be eligible for prequalification on a case-by-case basis. Prequalification Applications from unincorporated joint ventures must include: a) a copy of the joint venture agreement or Deed b) the structure of the joint venture c) details of key personnel from each of the joint venture parties d) details of the management systems to be used by the joint venture. Whilst it is acceptable to nominate the certified management systems of one of the joint venture parties for use by the joint venture, a statement should be provided to demonstrate how the systems will be integrated across the group and how other joint venture parties will be made familiar with the system details. Government and other entities Although only agreed entity types as detailed in Section 4.1 are eligible for prequalification, TMR may allow other entities such as government entities to apply for prequalification. Where these types of entities meet TMR s eligibility criteria, they will be able to seek prequalification on a restricted basis. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

45 Volume 3A (Prequalification System) 4.2 Excluded entities Related entities Prequalification does not extend to related or subsidiary companies or entities of a prequalified asphalt contractor. Any such company or entity must apply for prequalification in its own right. Trusts Trust arrangements are not eligible to prequalify under this system. 4.3 Assessment criteria Company profile The applicant s company profile will be assessed to determine suitability for prequalification, including in the following areas: a) organisational structure b) stability of organisation c) senior management d) general performance e) certification of management systems in the areas of quality, occupational health and safety and the environment, as per Table C3 (below). Table C3 - Summary of certification requirements for management systems Category Quality Management System Environmental Management System OHS Management System A1 Written confirmation from an independent auditor that the quality management system is based on ISO 9001 and has been implemented within the organisation Written confirmation from an independent auditor that the quality management system is based on ISO and has been implemented within the organisation Written confirmation from an independent auditor that the quality management system is based on ISO 4801 and has been implemented within the organisation. OR OR OR Third party certified to AS/NZS ISO 9001 Third party certified to AS/NZS ISO Third party certified to AS/NZS ISO 4801 A2 and above Third party certified to AS/NZS ISO 9001 Third party certified to AS/NZS ISO Third party certified to AS/NZS 4801 Please note: Where third party certification of management systems is required, the following requirements apply: a) for category A1: the independent auditor that assesses the applicant s management systems must be accredited by the Joint Accreditation System for Australia and New Zealand (JAS- ANZ) to the relevant standard b) for categories A2, A3 and A4: the third party certification of the management systems must be undertaken by a conformity assessment body accredited by JAS-ANZ to the relevant standard. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

46 Volume 3A (Prequalification System) Financial capacity To be considered for prequalification and to maintain prequalification status, contractors must demonstrate strong business viability over both the short and long term. Applicants that demonstrate sufficient financial capacity to be prequalified will be assigned a financial level and become eligible to tender for advertised contracts that nominate a financial level, providing the applicant is prequalified in the advertised technical categories. In assessing financial capacity, inter-company arrangements including loans and current contractual commitments will be taken into account. In some cases TMR (at its own discretion) may allow the financial capacity of a subsidiary company to be assessed with consideration of the financial capacity of its parent company (or guaranteeing entity) along with suitable undertakings from the parent entity, such as a Letter of Undertaking or Parent Company Guarantee. Any award of financial level based on an assessment of a parent company will be regarded as conditional prequalification. Company experience Applicants experience will be assessed to determine suitability for prequalification, including in the following areas: c) past and current projects d) contract completion e) project management f) partnering/relationship management g) community/stakeholder engagement h) utilisation of management systems i) traffic management. Technical capacity Applicants and prequalified asphalt contractors must demonstrate that they have the technical capacity to undertake works in the nominated prequalification categories, as further detailed in this Appendix and in the Application Form. In particular, applicants contractors must have: a) experience and capability in the type of work relevant to the asphalt prequalification category b) evidence of sufficient staff with appropriate qualifications and licences to practise (where relevant) c) appropriate availability of suitable plant and equipment. 5 Assessment process 5.1 Assessment of applications TMR will assess all Applications for prequalification to determine whether or not the applicant meets the requirements of the specific asphalt prequalification category and to determine an appropriate financial level. A mixture of internal and external assessors may be used. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

47 Volume 3A (Prequalification System) Assessment of Applications will be based on the following: a) information contained in the completed Application and attached supporting documentation b) referee reports c) documented evidence held by TMR regarding the applicant s previous performance d) information obtained by other road authorities or government agencies regarding the applicant s previous performance e) information obtained as part of a site assessment. TMR may consider any information in the assessment as is deemed necessary. 5.2 Notification Applicants will generally be notified in writing within six weeks of lodgement of their Application (providing all relevant information was included), regarding which, if any, asphalt prequalification category and financial level they have achieved, unless significant issues arise during consideration of an Application which require further information to be submitted. Such notifications will include, where warranted, any specific limitations or conditions applicable to the allocated asphalt prequalification category. Applicants that are not satisfied with the outcome of the assessment may lodge a request for a review or appeal, as detailed in Section Conditional prequalification TMR may allow conditional prequalification in isolated cases where the applicant does not meet all of the criteria for a particular asphalt prequalification category or financial level. In such cases, prequalification may be granted in a particular asphalt category, on a conditional basis. The granting of conditional prequalification is at the sole discretion of TMR and would be generally on the basis that there is some benefit in allowing the conditional prequalification. Providing the conditionally prequalified asphalt contractor continues to comply with the nominated conditions of their prequalification, they will be eligible to tender for contracts in the asphalt category and financial level they are conditionally prequalified in. 5.4 Upgrading prequalification status A prequalified asphalt contractor may apply for an upgrade of its prequalification status (including by adding new categories) at any time by completing and submitting a new Application Form. In submitting an Application for an upgrade in an asphalt prequalification category or financial level a contractor must be able to demonstrate that its circumstances have changed sufficiently since its last prequalification Application was assessed. As such, it may not be necessary for the applicant to complete the entire form. However, sufficient details supporting the request for an upgrade must be provided. Temporary upgrades for the purpose of tendering for specific contracts, or supplying products/services to a head contractor, will not be provided. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

48 Volume 3A (Prequalification System) 6 Maintenance of prequalification status 6.1 Provision of updated information In order for a prequalified asphalt contractor to maintain its prequalification status the contractor must submit for assessment regular and full updates of information to support its ongoing financial capacity, technical capacity, and experience as follows: a) up-to-date financial information - annually b) up-to-date information on Company Profile, Company Experience and Technical Capacity - at a minimum of every three years or following a significant change in any of these areas. TMR will monitor and assess the ongoing performance of each prequalified asphalt contractor. Each contractor s prequalification status will depend on the contractor maintaining a good level of performance in its delivery of asphalt works. Additional performance-related requirements for the maintenance of prequalification status are described in Section 6.2. A Performance Report - Asphalt Prequalification will be prepared upon completion of each contract. At TMR s discretion interim reports may also be prepared during the course of a contract, dependent on the duration of the contract. The reports will be used to promote the process of continuous improvement, to assist in applications for upgrades in prequalification status, to support the asphalt contractor s ongoing prequalification status and to ensure a common understanding of expectations for both parties regarding the contracted works. 6.2 Additional performance-related requirements for maintenance of prequalification status Further to Section 6.1, prequalified asphalt contractors must demonstrate ongoing satisfactory performance in areas such as inspection and testing, auditing, surveillance, and asphalt quality management/performance in order to maintain their prequalification status. Further details are provided in Table C4. Table C4 - Additional requirements for maintenance of prequalification status Requirement Inspection and testing Description Prequalified asphalt contractors must maintain adequate procedures for planning and undertaking all tests and measurements necessary for purposes of ensuring conformance of asphalt (including product and pavement) with specified requirements at relevant stages of their operations. Laboratories used for all compliance testing must be NATA accredited and CMT registered for all the relevant tests. Inspection and test plans (ITPs) As part of their project plans, asphalt contractors are required to prepare ITPs in advance of any asphalt works in order to determine the appropriate inspections, measurements, observations and/or tests, records and responsibilities necessary for purposes of quality control and checking of product compliance. The ITPs should also encompass: requirements of raw material supplies particular asphalt plant and mix design characteristics and controls methods and frequencies of sampling and testing Transport Infrastructure Project Delivery System, Transport and Main Roads, July

49 Volume 3A (Prequalification System) Requirement Inspection and testing (cont d) Description sampling locations verification checklists timeframes for submission of test results, and communication of relevant information. In the case of fixed site asphalt manufacturing plants, these ITPs can apply over continuous periods but there may need to be separate ITPs for the different asphalt mix types to be manufactured at that site. Generally, the ITPs for mobile asphalt manufacturing plants and for asphalt paving operations will be specific to the site circumstances of the plant and/or paving operation. However, they may be based on a standard format which is customised for each site or project. Quality control Prequalified asphalt contractors are responsible for conducting the quality control tests and measurements that are necessary to ensure conformance of the asphalt works with specified requirements. Conformance tests shall be undertaken as required in the specifications and contract including the following: production batches of asphalt at the point of loading into vehicles for delivery to road projects compacted asphalt pavement layers. Prequalified asphalt contractors are also responsible for analysis of results of quality control tests and measurements in order to determine that variation in results is controlled within acceptable limits. Control charts and competent/relevant statistical analysis and quality control processes are to be used for assessment of variability of the relevant parameters (for example, trend diagrams, standard deviations, coefficients of variation). At a minimum, the following parameters are to be assessed for variability as well as for their compliance with specified requirements and registered mix design details: from production mix at the asphalt manufacturing plant: - combined grading results for all of the mineral constituents - binder content - maximum density - air voids. from completed asphalt pavement: - compaction data - geometric measurements (layer depth, alignment, surface levels and roughness). These quality control activities are to be undertaken in accordance with recognised industry practice and as a minimum must include the requirements for sampling, testing and analysis of test data detailed in the TMR Specifications. Quality records must be maintained and supplied to TMR and/or the contract administrator in accordance with TMR specifications including (but not limited to) MRTS50 Specific Quality System Requirements and MRTS30 Asphalt Pavements. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

50 Volume 3A (Prequalification System) Requirement Surveillance Auditing Checking compliance Description Asphalt contractors are responsible for ensuring sufficient testing is done to ensure that all raw materials, production asphalt and asphalt pavement conform with specified requirements, as defined in TMR specifications (including, but not limited to MRTS30 Asphalt Pavements and Annexure MRTS30.1 Asphalt Pavements, and project-specific contract documentation. Requirements for submission of inspection and test records relating to compliance of completed lots of asphalt are defined in TMR specification MRTS50 Specific Quality System Requirements. Prequalified asphalt contractors are required to cooperate with surveillance activities of contractors and administrators. Assessment of the prequalified asphalt contractor s performance will include consideration of the level of cooperation and the effectiveness of these relationships. The focus of surveillance activities of both the contractor and of the contract administrator in relation to the operations of the prequalified asphalt contractor must be on the implementation of the various criteria on which the contractor s prequalification is based and, in particular, on the following: the asphalt works conform with project requirements the works are carried out in a controlled and coordinated manner the asphalt is produced in accordance with the registered mix design the asphalt production and paving operations are undertaken with equipment and personnel of the nominated capability. Prequalified asphalt contractors will: ensure that manufactured asphalt and/or asphalt pavement conform with specified requirements - this responsibility inherently relies upon supervision of defined procedures which must be aligned to the basis and conditions on which the contractor has been prequalified (for example, conformance with registered mix design, operation of suitable equipment, engagement of suitable staff) prepare process plans for the relevant activities (i.e. in asphalt manufacture and/or asphalt paving operations), and prepare ITPs. The prequalified asphalt contractor s management plans, and the surveillance plans of the head contractor and of the contract administrator shall all include audit activities with the following objectives: ensure that project objectives are met ensure that defined processes and procedures are followed confirm that compliance of production asphalt and asphalt pavement is in accordance with specified requirements identify aspects of processes and procedures where there is potential for improvement. Reports from audits by the prequalified contractor, head contractor, administrator, TMR staff (for example, District) on Transport Infrastructure Project Delivery System, Transport and Main Roads, July

51 Volume 3A (Prequalification System) Requirement Asphalt Quality Management / Performance Description the prequalified asphalt contractor should be made available to all these same parties. Preliminary findings should be made available to the prequalified asphalt contractor on the day of the audit. Audit findings, observations and recommendations need to be reviewed by the above parties in consultation with a view to determination of any necessary activities for example: adjustment, correction or improvement of processes calibration, maintenance and replacement of plant/equipment training of personnel, and modification of materials in relation to registered mix designs. Assessment of the overall performance of the prequalified asphalt contractor on each project is fundamental to the maintenance of prequalification status, and helps to foster an environment of continuous improvement. The following are the criteria for satisfactory performance in relation to the management of asphalt quality: provision of adequate process plans which are coordinated with the project plans of the head contractor implementation of appropriate supervision and quality control processes of its own operations and activities undertaking an appropriate amount of internal auditing of its own processes and procedures cooperation with the surveillance, auditing and conformance assessment activities of the head contractor and of the administrator, including: - participation in pre-start and other coordination activities - making its own supervision, testing and auditing activities available for review and discussion. implementation of necessary corrections and/or improvements to its processes and/or procedures resulting from the surveillance and auditing activities of the contractor and of the administrator ensuring that personnel (whether staff or subcontractors) utilised for a particular operation or project meet the minimum requirements for the role, as assessed at the time of lodgement of the prequalification Application. Assessment of capabilities of staff and equipment for sustained performance in relation to specification requirements, recognised industry practices and changes in technology is included in each of the above criteria. Prequalified asphalt contractors must also comply with the warranty conditions described in Section 2.8 with respect to the performance of any asphalt manufactured or placed, as further described in the TMR specifications including (but not limited to) MRTS30 Asphalt Pavements. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

52 Volume 3A (Prequalification System) 6.3 Review of an asphalt contractor s prequalification status A review may be initiated, amongst other reasons, for any one of the following: a) where conditional prequalification has been granted subject to a review being carried out following completion of the first contract under the conditional arrangement b) where conditions imposed are not being complied with c) following changes to an asphalt contractor s organisational structure, or technical, financial or management capacity which, in the opinion of TMR, may have an adverse effect on the asphalt contractor s performance d) where restrictions on a licence/registration to practice are imposed, or third party certification of a management system is withdrawn or has expired, or e) for failure to comply with the terms and conditions of prequalification, including a failure to honour the warranty requirements described in Section 2.8. TMR may review an asphalt contractor s prequalification status at any time. As a result of a review, TMR may, at its discretion, cancel, downgrade or suspend an asphalt contractor s prequalification status. TMR may also impose conditions as a result of a review. If any such action is proposed, the asphalt contractor will first be given the opportunity to show cause as to why its prequalification status should not be adjusted. This shall be undertaken via a formal Show Cause Notice to the asphalt contractor. The Show Cause Notice shall: a) state that it is a notice under the TMR Asphalt Prequalification System terms and conditions b) specify the alleged breach c) require the asphalt contractor to show cause in writing why TMR should not exercise the right to cancel, suspend or downgrade the asphalt contractor's prequalification status, or place condition on the asphalt contractor s prequalification status, and d) specify the time and date (not more than 10 business days) by which the asphalt contractor must show cause. TMR may make further enquiries to verify the asphalt contractor s responses. If by the time specified in a Show Cause Notice the asphalt contractor fails to respond or to show reasonable cause why TMR should not adjust the prequalification status, then TMR may cancel, suspend or downgrade the prequalification status, or apply conditions to it, without further notice to the asphalt contractor. The asphalt contractor may elect to appeal the imposition of the sanction in accordance with the process outlined in Section Cancellation, suspension, downgrading or changes to scope Further details regarding the types of matters that may give rise to a change to the scope, the imposition of conditions, cancellation, suspension or downgrading are provided below. The cancellation or suspension sanction can apply to either the prequalified asphalt contractor (including all of its plants and paving operations), or to one or more plants or paving operations included in the entity s prequalification. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

53 Volume 3A (Prequalification System) The determination as to which type of sanction will apply will typically relate to the level of severity of the breach, and whether or not the breach is of a temporary nature. Cancellation Examples of breaches that may give rise to cancellation of an asphalt contractor s prequalification status include (but are not limited to): a) unsatisfactory performance on one or more contracts b) a Show Cause Notice has been issued in relation to a contract, or a contract has been terminated c) the asphalt contractor has been placed into voluntary administration or involved in a compromise or other arrangements with creditors d) an adverse change in the organisation s management systems or technical capability (including availability of key personnel) from that on which the prequalification level was assessed e) where changes have been made to prequalification and the asphalt contractor has been given a nominated period of time to comply with the changes but fails to do so f) where an asphalt contractor has been granted conditional prequalification subject to it meeting certain requirements and it fails to meet those requirements within the stipulated timeframes, or g) where the asphalt contractor is experiencing financial problems, and h) the following types of breaches may also give rise to review or cancellation of an asphalt contractor s prequalification status: i. failure to meet defect liability requirements ii. failure to meet performance requirements in areas including (but not limited to) inspection and testing, auditing, or cooperation with surveillance activities on TMR projects iii. failure to honour the warranties applicable to the quality and performance of asphalt, as described in the TMR specifications including, but not limited to, MRTS30 Asphalt Pavements, or iv. where continuation of prequalification represents a significant and immediate risk unacceptable to TMR. Suspension Prequalification may be suspended in particular circumstances, such as where the asphalt contractor is experiencing a temporary problem and is unable to satisfy all of the prequalification criteria in the short term. In such circumstances, the asphalt contractor's prequalification may be suspended until the temporary problem is remedied and the contractor is again able to satisfy all of the criteria corresponding to the level of prequalification granted. Where the matter affects compliance with the assessment criteria, including matters which affect the prequalified asphalt contractor at entity level (for example, expiry of a management system certification), a suspension by TMR will apply to all of the facilities or operations registered in the name of the prequalified asphalt contractor. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

54 Volume 3A (Prequalification System) Downgrading or changes to scope Examples of breaches that may give rise to downgrading or changing the scope (for example, limit the use of certain manufacturing plant(s) or paving operations(s) tied to the asphalt contractor s prequalification status) of an asphalt contractor's prequalification status include (but are not limited to): a) repeated minor contractual or prequalification system non-compliances where, in the opinion of TMR, there is an unacceptable risk in allowing the asphalt contractor to remain prequalified at their current prequalification level, but the asphalt contractor is able to demonstrate that it can fully comply with the prequalification requirements for a lower level of prequalification, or b) an adverse change in the organisation s management systems or technical capability (including availability of key personnel) from that upon which the prequalification level was assessed, but the asphalt contractor can demonstrate that requirements for a lower level of prequalification are met, and c) the following types of breaches may also give rise to downgrading of a contractor s prequalification status: i. failure to meet defect liability requirements ii. failure to meet performance requirements in areas including (but not limited to) inspection and testing, auditing, or cooperation with surveillance activities on TMR projects for example: failing to close-out surveillance or audit issues in an agreed timeframe, and to a standard satisfactory to TMR repeated product and/or procedural nonconformances failure to make adequate responses to repair defective products and/or to improve management systems or processes failure to maintain accurate, verifiable and consistent records, including test results failure to retain personnel with adequate experience and capability failure to adequately maintain plant and equipment failure to use the asphalt contractor s systems (for example, quality systems and procedures, work instructions) and/or provide documented evidence of their use, or failure to address environmental and/or safety issues of concern. iii. failure to honour the warranties applicable to the quality and performance of asphalt, as described in the TMR specifications including, but not limited to, MRTS30 Asphalt Pavements, or iv. failure to comply with any restrictions or conditions imposed on the asphalt contractor under this prequalification system and/or the TMR laboratory construction materials testing registration system. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

55 Volume 3A (Prequalification System) 6.5 Reviews and appeals If an asphalt contractor is not satisfied with any decision made by TMR in relation to prequalification decisions or sanctions, the asphalt contractor may either request a review of the original decision, or lodge an appeal against the decision, as follows: Reviews a) the asphalt contractor may request a review of the decision by the original assessors, providing sufficient additional information is submitted to warrant a review. Any request for a review must be lodged with TMR within 20 business days of the date of the letter advising of the prequalification decision. Appeals a) requests for appeals must be lodged with TMR within 20 business days of the date of the letter advising of the prequalification decision b) the appeal will be heard by a specially convened Appeals Panel with the following characteristics: i. minimum of three members ii. iii. iv. excludes the original assessors includes one independent industry representative, chosen by the appellant from a pool of three put forward by TMR, and includes one independent industry representative, chosen by TMR from a pool of three put forward by the appellant. (Note: the appellant must make the selection of an industry representative within the time period specified by TMR and within five business days.) c) The Appeals Panel will: i. be convened within seven business days of lodgement of the written appeal ii. iii. review the original decision, and may also consider new/additional information provide written reasons for its decision within 20 business days of the panel being convened, but no later than 25 business days after the lodgement of the appeal. d) The Appeals Panel decision will be final and binding on both TMR and the appellant. 7 Tendering for contracts that include asphalt 7.1 General Where specified in the invitation to tender, contractors wishing to bid for the work must: a) be prequalified at or above the nominated technical categories and financial levels, or b) engage a subcontractor prequalified at or above the nominated asphalt prequalification category and otherwise be prequalified at or above the other nominated technical categories and financial levels. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

56 Volume 3A (Prequalification System) When a contract involves a combination of road and/or bridge construction and/or specialist asphalt categories, TMR will determine the appropriate prequalification category for each component of that contract, together with the financial level. TMR will determine the prequalification category for each contract based on complexity and risk. Notwithstanding this, tenderers must address any evaluation criteria in the invitation to tender and comply with the conditions of tendering. TMR may nominate one or more categories as the primary categories, and other categories as secondary categories. In the event that a contractor is only prequalified in the primary category(s) (and financial levels), it may submit a tender using subcontractors prequalified in the secondary categories (and financial levels). Tenders will not be accepted from contractors prequalified in the secondary category(s) and nominating a subcontractor that is prequalified in the primary category(s). 7.2 Joint ventures Joint ventures must note that all contracts entered into with TMR are on the basis of joint and several liability. 7.3 Prequalification checks prior to awarding of a contract TMR may undertake a check of the preferred tenderer s prequalification status prior to the award of a contract, including any technical or financial matters. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

57 Volume 3A (Prequalification System) Volume 3A: Appendix C.A - Prequalification assessment guide for asphalt technical capacity Officers undertaking prequalification assessments will recommend prequalification suitability based on the application of the assessment criteria and associated descriptions provided in Table C.A1. Table C.A1: Minimum requirements for asphalt prequalification for technical capacity Category A1 A2 Indicative description of category requirements The following relate to dense graded asphalt: laboratories used for all compliance testing must be NATA accredited and CMT registered for the relevant tests demonstrated experience in machine-placed asphalt paving knowledge of TMR s specifications manager active in operations with at least five years of relevant experience capacity to source sufficient complying asphalt mix to achieve continuous paving at the rate(s) nominated by the applicant key supervisory personnel with at least five years of relevant experience ability to source registered mix designs that meet the requirements of TMR s specifications and that are manufactured by a A3 or A4 prequalified asphalt contractor possess or have access to plant capable of laying and compacting the mix uniformly (without segregation) to specified requirements for alignment, dimensions and compaction and so on. This includes having a self-propelled mechanical paver, pneumatic-tyred roller, vibratory roller and other relevant equipment, with appropriately trained, qualified and experienced operators and experienced set-out crew, and staff engaged for sampling and testing activities with at least two years of experience in the relevant test methods. Alternatively, testing staff without this experience may be engaged provided their sampling and testing work is directly supervised by a NATA signatory for the relevant tests. The following relate to dense graded asphalt and open graded asphalt: laboratories used for all compliance testing must be NATA accredited and CMT registered for the relevant tests extensive experience in machine-placed asphalt paving knowledge of and extensive experience with TMR s specifications demonstrated ability to source registered mix designs that meet the requirements of TMR s specifications and that are manufactured by a A3 or A4 prequalified asphalt contractor manager active in operations with at least 10 years of relevant experience key supervisory personnel with at least 10 years of relevant experience civil engineer on staff or available externally capacity to source sufficient complying asphalt mix to achieve continuous paving at the rate(s) nominated by the applicant demonstrated ability to manage subcontractors, including having appropriate subcontractor management systems. Asphalt paving subcontractors must be TMR prequalified asphalt contractors and must be directly supervised by the (primary) prequalified asphalt contractor. The asphalt paving subcontractor s work must be limited to placing asphalt mixes that are commensurate with the asphalt prequalification level of the asphalt subcontractor. Notwithstanding this, there must be written confirmation that when asphalt paving subcontractors are used, the Transport Infrastructure Project Delivery System, Transport and Main Roads, July

58 Volume 3A (Prequalification System) Category A2 (cont d) A3 Indicative description of category requirements (primary) prequalified asphalt contractor accepts full responsibility for the warranty and for the asphalt works meeting TMR s requirements possess plant capable of laying and compacting the mix uniformly (without segregation) to specified requirements for alignment, dimensions and compaction and so on. This includes having a self-propelled mechanical paver, pneumatictyred roller, vibratory roller, material transfer device and other relevant equipment, with appropriately trained, qualified and experienced operators and experienced set-out crew, and staff engaged for sampling and testing activities with at least two years of experience in the relevant test methods. Alternatively, testing staff without this experience may be engaged provided their sampling and testing work is directly supervised by a NATA signatory for the relevant tests. The following relate to dense graded asphalt and open graded asphalt: laboratories used for all compliance testing must be NATA accredited and CMT registered for the relevant tests demonstrated experience in asphalt manufacture and proven track record of asphalt quality and performance knowledge of and extensive experience with TMR s specifications manager active in operations with at least 10 years of relevant experience key supervisory personnel with at least 10 years of relevant experience civil engineer on staff capability to design asphalt mixes to meet the requirements of TMR s specifications capability of producing registered mix designs that meet TMR s specifications and contract requirements possess appropriate plant (for example, batch mixing plant or drum mixing plant) capable of mixing controlled amounts of binder, coarse aggregate, fine aggregate, filler and approved additives to produce a homogeneous asphalt mix which complies with the registered mix design and the requirements of TMR s specifications capacity to supply continuous output of complying asphalt mix to achieve continuous paving at the rate(s) nominated by the applicant. Continuous output shall mean maintaining the nominated output(s) over a single continuous eight hour production period extensive experience in machine-placed asphalt paving demonstrated ability to manage subcontractors, including having appropriate subcontractor management systems. Asphalt paving subcontractors must be TMR prequalified asphalt contractors and must be directly supervised by the (primary) prequalified asphalt contractor. The asphalt paving subcontractor s work must be limited to placing asphalt mixes that are commensurate with the asphalt prequalification level of the asphalt subcontractor. Notwithstanding this, there must be written confirmation that when asphalt paving subcontractors are used, the (primary) prequalified asphalt contractor accepts full responsibility for the warranty and for the asphalt works meeting TMR s requirements possess plant capable of laying and compacting the mix uniformly (without segregation) to specified requirements for alignment, dimensions and compaction and so on. This includes having a self-propelled mechanical paver, pneumatictyred roller, vibratory roller, material transfer device and other relevant equipment, with appropriately trained, qualified and experienced operators and experienced set-out crew have testing staff engaged for the purposes of: interpreting and monitoring asphalt production test results and Transport Infrastructure Project Delivery System, Transport and Main Roads, July

59 Volume 3A (Prequalification System) Category A4 Indicative description of category requirements sampling and testing asphalt and its constituent materials staff engaged for sampling and testing activities with at least two years of experience in the relevant test methods. Alternatively, testing staff without this experience may be engaged provided their sampling and testing work is directly supervised by a NATA signatory for the relevant tests. The following relate to all asphalt types: laboratories used for all compliance testing must be NATA accredited and CMT registered for the relevant tests demonstrated experience and capability in manufacture of specialised asphalt mixes/products (for example, the manufacture of stone mastic asphalt, high modulus (EME2) asphalt, proprietary and/or other specialised asphalt products) and proven track record of asphalt quality and performance knowledge of and extensive experience with TMR s specifications manager active in operations with at least 10 years of relevant experience key supervisory personnel with at least 10 years of relevant experience civil engineer with extensive experience in asphalt on staff capability to design high performance asphalt mixes to meet the requirements of TMR s specifications capability of producing registered mix designs that meet TMR s specifications and contract requirements possess appropriate plant (for example, batch mixing plant or drum mixing plant) capable of mixing controlled amounts of binder, coarse aggregate, fine aggregate, filler and approved additives to produce a homogeneous asphalt mix which complies with the registered mix design (or specialised product design) and the requirements of TMR s specifications capacity to supply continuous output of complying asphalt mix to achieve continuous paving at the rate(s) nominated by the applicant. Continuous output shall mean maintaining the nominated output(s) over a single continuous eight hour production period extensive experience in machine-placed asphalt paving of specialised materials including, but not limited to, stone mastic asphalt and high modulus (EME2) asphalt demonstrated ability to manage subcontractors, including having appropriate subcontractor management systems. Asphalt paving subcontractors must be TMR prequalified asphalt contractors and must be directly supervised by the (primary) prequalified asphalt contractor. The asphalt paving subcontractor s work must be limited to placing asphalt mixes that are commensurate with the asphalt prequalification level of the asphalt subcontractor. Notwithstanding this, there must be written confirmation that when asphalt paving subcontractors are used, the (primary) prequalified asphalt contractor accepts full responsibility for the warranty and for the asphalt works meeting TMR s requirements possess plant capable of laying and compacting the mix uniformly (without segregation) to specified requirements for alignment, dimensions and compaction and so on. This includes having a self-propelled mechanical paver, pneumatictyred roller, vibratory roller, material transfer device and other relevant equipment, with specialist operators and experienced set-out crew with appropriate training, qualifications and experience, and have testing staff engaged for the purposes of: interpreting and monitoring asphalt production test results, and sampling and testing asphalt and its constituent materials Transport Infrastructure Project Delivery System, Transport and Main Roads, July

60 Volume 3A (Prequalification System) Category Indicative description of category requirements staff engaged for sampling and testing activities with at least two years of experience in the relevant test methods. Alternatively, testing staff without this experience may be engaged provided their sampling and testing work is directly supervised by a NATA signatory for the relevant tests. GUIDE NOTE: Prequalification applicants will be assessed with regard to their capability to deliver works listed against each asphalt category. When assessing an applicant s capability for prequalification in a technical category, consideration should be given to an applicant s experience in delivering similar work. For example, new entrants into the A1 asphalt category are unlikely to have previously delivered work to TMR s specifications; however, experience delivering similar work types (for example, for local government) could be considered a relevant demonstration of capability. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

61 Volume 3B (Prequalification System) Volume 3B: Part B - Registered specialist suppliers 1 Introduction The Department of Transport and Main Roads (the department) maintains a list of approved products and Registered Specialist Suppliers used for the construction of roads and related transport infrastructures. The list of Registered Suppliers and Approved Products can be found in: This document defines the framework for registering these approved products and suppliers, and includes: criteria for suitability of organisations seeking inclusion on the register list processes for registration and de-registration processes for appeals requirements for performance assessment, and responsibilities of all relevant parties. The Definitions in Section 4 of the Transport Infrastructure Project Delivery System (TIPDS) Volume 3 Part A apply to this document. 2 Managing the registration process Technical areas within Engineering & Technology (E&T) will administer the registration of approved products and specialist suppliers and maintain the relevant documentation. Each technical area will nominate a suitably qualified officer as their Register Manager who is responsible for administering and maintaining their part of the register list. The Manager (Prequalification), is the owner of the management system that supports the register list. The Manager (Prequalification), in coordination with the relevant Register Manager, will determine the need for a register of a specific product/supplier group based on the assessed risk of the product or service to the department. E&T will own the register list, which will include the following information: category of product and/or service actual product or service provided under each category suppliers details, and the associated MRTS relevant to each product and/or service (if applicable). The list of Registered Suppliers and Approved Products can be found in: Transport Infrastructure Project Delivery System, Transport and Main Roads, July

62 Volume 3B (Prequalification System) 3 Role of the register manager(s) Register Manager(s) in the relevant technical areas of E&T are responsible for: establishing system documentation, including technical notes or equivalent guides for specific products developing and maintaining the local management system that is aligned to this framework assessing and registering specialist suppliers monitoring performance of the Registered Specialist Suppliers including scheduling and undertaking reviews and audits, and maintaining the information in the register list. 4 Registration Registration is conditional and specific. For example, if a Supplier is registered to manufacture at a specific location and wishes to move or use mobile facilities, the supplier must seek further registration for these new operations. Suppliers will generally remain listed on the register list for a period of three years. After this time, using processes described by the relevant technical areas in E&T, a review of the technical and system performance of the Supplier will occur. Generally four to six weeks prior to the expiry date, Suppliers will receive notification regarding renewal application. Suppliers should also check with the relevant Register Manager if they did not receive any notification. The Register Manager may register specialist suppliers for shorter periods in the following circumstances: suppliers that have been listed as conditionally approved for any reason (for example, mediocre performance), and new equipment, new materials or structural designs that warrant limiting conditions. 5 Applications for registration To apply for registration, suppliers are to provide complete application forms with appropriate supporting details. The application forms and guidelines for registration can be obtained from the relevant Register Manager, or can be downloaded from the following site: The details provided must be concise and relevant to the criteria defined in the documentation. Applications for registration may be lodged in writing, or electronically to the relevant Register Manager. Enquiries regarding products or services should be directed to the relevant technical area of E&T. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

63 Volume 3B (Prequalification System) 6 Documentation for registration TIPDS Volume 3, Part B, Appendix A provides guidelines for the documentation required to be submitted in the application for registration including: staff expertise (organisational and project levels) evidence of capability suitability of equipment, and management system. 7 Assessment for registration The Register Managers are responsible for evaluating and assessing applications for registration against the nominated criteria, which may include: testing and approval of submitted designs (where designs are required to be approved) examination of the applicant s submission and confirmation of evidence in relation to all criteria defined in the documentation process assessment of the applicant s inspection and test plans in accordance with the technical requirements, and review of the performance capability of the applicant. The Register Manager shall advise the applicant in writing of the results of the assessment and relevant details of the intended listing on the register list, including any conditions that may be imposed. Applicants will be notified of the results of the assessment within six (6) weeks of their application, unless significant issues arise during consideration of the application. Applicants will be advised of any issues that are likely to cause delays during the assessment, and the need for submission of additional details (if required). 8 Performance assessment Performance of a supplier may be routinely assessed during the period of registration. The processes for performance assessment and reporting, including any requirements for surveillance and audits, will be defined in the specific documentation of the relevant technical area. Registered Specialist Suppliers may be audited at any time or following reports of poor performance in the manufacture and/or supply of the nominated product or services. Various department personnel can perform the technical and systems assessments, as directed by the relevant Register Manager. These representatives may be from Engineering & Technology and/or Program Management and Delivery branches of the department. The assessors will have the appropriate skills required, including technical and/or system auditor capabilities, depending on the scope of the particular assessment. While a Registered Specialist Supplier may be undertaking its business in a professional manner, external influences can adversely affect its performance. It is the responsibility of the Registered Specialist Supplier to ensure that all of its own suppliers are providing goods and services of an appropriate quality. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

64 Volume 3B (Prequalification System) Should the circumstances for the Registered Specialist Supplier have changed (for example, equipment, personnel, approved design, location), the Supplier must submit the new information relating to the changes, as detailed in the documentation process or the relevant system. Failure to supply the new information in a timely manner will be considered in future performance assessments, and may lead to the issuing of a Show Cause Notice as to why they should not be deregistered. 9 Deregistration If the performance of a Supplier is unsatisfactory, that Supplier may be issued with a Show Cause Notice. Reasons for issuing a Show Cause Notice may include: failure to maintain a functioning quality management system (often reflected in the incidence of poor project performance and/or issues resolution through the project) repeated significant product non-conformances failure to make adequate management responses to repair products and improve systems failure to address environmental and safety issues failure to remain solvent or a financially viable business failure to provide adequate financial documentation upon request from the Register Manager, or failure to submit registration renewal application by the requested date. The Supplier will be given an opportunity to explain why they should not be deregistered, or asked to undertake improvements and be reassessed. Failure to comply may result in de-registration. In the event that the Supplier does not respond to the Show Cause Notice within the time specified in the notice (or if a time is not specified, within 28 calendar days of the date of the notice) then the Supplier will be removed from the register list without further notice from the department. 10 Appeals New applicants, or suppliers seeking renewal of registration, who are not satisfied with decisions by the department with respect to registration status or certain conditions or restrictions, may appeal to the Chief Engineer (Engineering & Technology). Each Register Manager should define their appeal process within their registration system for their area of responsibility. While the individual details of the appeals process may vary for each technical area, the appeal process should generally be similar to and consistent with the process described in Appendix B. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

65 Volume 3B (Prequalification System) 11 Confidentiality and undertakings Register Manager will manage the retention and disposal of the information provided by the applicants in accordance with the relevant privacy policies and the state archive disposal policies. The register list available for public viewing will only contain information needed for effective communication of registration status. The department will communicate other supplier information only when: it is legally required to do so an assessment or legal advice is required an appeal is lodged as described in the previous section, or in accordance with Legislation (for example, Information Privacy Act, Right to Information Act). The department shall not be liable for any consequences arising, to either a Registered Specialist Supplier or any other party, from the release of such information. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

66 Volume 3B (Prequalification System) Volume 3B: Appendix A - Guidelines for applicant organisations 1 Introduction Applicant organisations are required to provide evidence of their qualifications, experience, expertise and capability for the manufacture and/or supply of their products or services. The evidence must address the criteria defined by the relevant technical area. The criteria will include the management of the work, in cooperation with other organisations engaged on the same projects, and the capability to successfully undertake the manufacture and/or supply of their products or services to a standard required by the department. The information in this appendix is provided for information only. The documentation to which the applicants must respond will be developed in accordance with the guidelines in this appendix. Applicants must download the relevant information from the website according to the category of works for which they wish to be registered. Application Forms and the How to Register documents for each of the products/services can be downloaded from the following link: 2 Expertise of staff Suppliers must have adequately qualified and experienced staff to provide quality products and services to the required standards. The criteria for the various levels of staff are defined below and are the minimum requirements. Of prime importance is the combined experience of the applicant organisation s team of managerial and operational staff. Individual members of the applicant s staff who do not have the nominated minimum experience on activities and/or works of the relevant type, scale or complexity may be accepted provided that: the total experience of the overall management team satisfies the intent of the various requirements critical requirements are satisfied, and the applicant has adequate measures in place to compensate for any shortcomings with respect to these criteria on the part of any members of its staff. Applicant organisation experience The applicant organisation must be able to demonstrate sound practical experience over the past two years on a similar scale and complexity to those currently listed on the Registered Specialist Suppliers list. Applicant organisations that do not satisfy this requirement must have managerial and operational staff that satisfy all of the requirements defined below. Managerial staff Managers should have: sufficient project experience to satisfy the technical area requirements knowledge of relevant manufacturing processes and/or plant and a capability to manage such plant, and Transport Infrastructure Project Delivery System, Transport and Main Roads, July

67 Volume 3B (Prequalification System) proven capability in planning processes relevant to the products being manufactured and/or provision of services. It is desirable that an applicant s managerial personnel include at least one qualified engineer. The engineer needs to demonstrate knowledge and understanding of how the supplied products/services are being applied in the department s projects. Alternatively, the applicant is required to demonstrate how it will ensure that the relevant technical criteria are competently assessed and complied with. Supervisory staff Supervisors should have adequate: project experience to satisfy technical area requirements knowledge of relevant plant capabilities and capacities knowledge of the department s specifications and technical standards, and knowledge of relevant testing requirements. Plant operators and labourers All plant operators and labourers (whether permanent, temporary or casual) should: be trained to perform their work safely and not endanger the safety of others have the qualifications and licences to operate the plant and equipment, and have the skills to produce goods or services to specified standards. As a minimum, plant operators and labourers (whether permanent, temporary or casual) must receive the following types of training: induction training for the business work health and safety training for each phase of the work evacuation procedures (where necessary) safe methods of operation of tools and equipment environmental training as it relates to their job an understanding of how the product or service functions, and techniques to ensure highest possible quality of product or service. 3 Proven capability Applicant organisations are required to supply details of recent experiences in the manufacture and/or supply of the nominated products or services relevant to their application. These details are to include the names and phone numbers of persons who can be contacted in order to obtain verification information regarding the satisfactory manufacture and performance of these products. 4 Suitability of equipment Applicant organisations must supply relevant details of their plant. This will be specific to the product or service being manufactured and/or supplied, and will be specified in the documentation for the relevant Registered Specialist Suppliers register list. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

68 Volume 3B (Prequalification System) 5 Management systems Applicant organisations are required to provide evidence of their management systems commensurate with the risks involved and in accordance with the following. Quality management systems Applicant organisations quality management systems shall be certified in one of the following ways: certified against the requirements of AS/NZS ISO 9001:2008 Quality management systems - requirements (by either a second or third party certifying body), or certified against the requirements of a construction industry based scheme that is recognised by the department. If an applicant organisation does not have any of the above certifications for its quality management systems, please contact the relevant Register Manager for more information. Occupational health and safety management Applicant organisations are expected to supply summary information that enables assessment of their occupational health and safety management practices and system for meeting their obligations under the Work Health & Safety Act and Regulations (2011) and subsequent amendments and regulations. Where available, this information needs to include: summary of the site management plan formats utilised by the applicant organisation reference to the applicant organisation s documented safety management systems, and list of recent relevant projects on which the above have been utilised. It is expected that the applicant s occupational health and safety management systems will be established generally along the lines of AS/NZS 4801:2001 Occupational Health & Safety management systems - specification with guidance for use. Applicants are advised that under the Australian Government Building and Construction WHS Accreditation Scheme (the Scheme), head contractors who tender for qualifying federally funded contracts are required to be accredited under the Scheme. This requirement could impact Registered Specialist Suppliers. Environmental management The applicant s environmental management practices and system should be established in line with AS 14001:2004 Environmental management systems - requirements with guidance for use and in accordance with all requirements and obligations defined in the Environmental Protection Act (1994). Evidence of satisfactory use of management systems Applicant organisations are required to supply evidence of effective use of their management systems on projects relevant to their application. The following types of evidence are listed as a guide to applicants: process management plans which have been updated during projects and which include evidence of use inspection and test plans which incorporate compliance records Transport Infrastructure Project Delivery System, Transport and Main Roads, July

69 Volume 3B (Prequalification System) site-specific safety plans which have been updated during projects and which include evidence of use risk and hazard identification for safety and environmental issues including evidence of processes for monitoring and review of performance records of site inductions, and non-conformance reports including evidence of corrective actions to prevent re-occurrence of the issue. It is noted that integration of the various management practices supporting the delivery of products and/or services into the overall management system is a positive step, compared with generating separate management systems for the various aspects of the business practice. The standards specified in the above support this premise. 6 Apprentices and trainees scheme Applicants are required to comply with Queensland Government Building and Construction Training Policy (Training Policy).. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

70 Volume 3B (Prequalification System) Volume 3B: Appendix B - Appeal process 1 Introduction The information provided in this appendix is only for Registered Specialist Suppliers. Principal Contractor (or head contractor) for road and bridge construction should refer to Volume 1 of this manual and the National Prequalification System Guidelines. Applicants who are not satisfied with the decision made by the Register Manager, may appeal the decision. Situations where this may occur include decisions by the Register Manager to: reject an application or renewal, or cancel or suspend the registration. This appendix provides guidance to the appeal process. 2 Appeal process The first step of the appeal process requires the appellant to lodge a Notice of Appeal in writing, giving substantive basis for the appeal. The Notice of Appeal should be structured in such a way that the grounds of appeal are provided in a concise summary document with any supporting documents attached and clearly referenced. The Notice of Appeal should be addressed to: Chief Engineer (Engineering & Technology) Department of Transport and Main Roads GPO Box 1549 Brisbane Qld 4001 Furthermore, a copy of the Notice of Appeal should be addressed to: Manager (Prequalification) Program Delivery & Operations Department of Transport and Main Roads GPO Box 1549 Brisbane Qld 4001 The Chief Engineer (Engineering & Technology) may rely on the Manager (Prequalification) who is familiar with registration system to assist on administrative and procedural matters. The Notice of Appeal must be lodged within three months of the applicant/appellant receiving the decision from the Register Manager with which they are not satisfied. Appeals received outside this time will not be considered. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

71 Volume 3B (Prequalification System) Upon receipt of the Notice of Appeal, The Chief Engineer (Engineering & Technology) must either: a) reject the appeal on the grounds that it i. was frivolous or vexatious, or ii. did not comply with the time constraints, or iii. did not provide sufficient detail to enable a proper assessment of the appeal. or b) convene an Appeal Panel to hear and determine the matter on merit. The Chief Engineer (Engineering & Technology) is required to write to both the appellant advising whether the appeal has been rejected or will proceed. The Chief Engineer (Engineering & Technology) should provide a written response to the Notice of Appeal within 30 days of receipt of the Notice of Appeal. Where the issues raised in the Notice of Appeal are complex or numerous, the Chief Engineer (Engineering & Technology) may apply for an extension of a further 30 days to submit their written response. The appellant must be given at least 21 days to consider the written response of the Prequalification Committee before the appeal is heard. 3 Composition of appeal panel If the Chief Engineer (Engineering & Technology) decides to proceed with the appeal, an Appeal Panel must be convened to hear the matter. The Appeal Panel will comprise of: a) the Chief Engineer (Engineering & Technology) or delegate as the Panel Chair b) an independent person selected by the appellant from a list of at least three persons nominated by the Chief Engineer (Engineering & Technology) c) an independent person selected by the Chief Engineer (Engineering & Technology) from a list of at least three persons nominated by the appellant. Within 21 days of receiving written notification from the Panel Chair that the appeal will proceed, the following is required to occur: the Chief Engineer (Engineering & Technology) must provide the appellant with their list of at least three independent nominees including brief CVs the appellant must provide the Chief Engineer (Engineering & Technology) with their list of at least three independent nominees with brief CVs. Within 14 days of each of the parties receiving the respective list of nominees, the parties are required to advise the Panel Chair of their preferred panel member selected from the list. Within 14 days of receiving notification from both parties of their preferred panel member, the Panel Chair is required to advise the parties in writing of the composition of the appeal panel and nominate a time and place for the matter to be heard. The Panel Chair should also write to the other panel members confirming their appointment and forward one copy of the Notice of Appeal to each of them. Upon receipt of the written response to the Notice of Appeal by the Chief Engineer (Engineering & Technology), one copy should be forwarded to each of the panel members. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

72 Volume 3B (Prequalification System) There must be no conflict of interest of such persons with either of the parties being appointed to the Appeal Panel. 4 Hearing the appeal The matter will be heard by the Appeal Panel in Brisbane. The decision of the Appeal Panel will be final and binding on the parties. A majority decision only is required from the Appeal Panel. The Panel Chair may exclude any information that is not considered to be relevant to the appeal. The appeal hearing will comprise the following events (order of proceedings may vary): a) an introduction by the Appeal Panel b) an address by the appellant explaining the basis of the appeal (maximum one hour) c) a response by the Chief Engineer (Engineering & Technology) (maximum one hour) d) a question and answer session where the appeal panel members ask questions of the parties (maximum one hour) e) summing up by the appellant (maximum 30 min) f) summing up by the Chief Engineer (Engineering & Technology) (maximum 30 min) The parties may be represented by no more than two persons, both of whom are entitled to speak during the appeal. Legal representation or professional advocates will not be allowed to appear before the Appeal Panel. Each party to the appeal shall bear its own costs in relation to preparing for and appearing at the hearing. The reasonable costs of the two nominated independent members of the Appeal Panel and their costs of accommodation and travel for the hearing shall be paid for by the department. Following the formal hearing, the Appeal Panel will meet and the decision regarding the appeal will be made. The decision, which must as a minimum be a majority decision, must be in writing, must address the issues in the appellant's Notice of Appeal, and must include reasons for the decision. The decision of the Appeal Panel shall be final and binding on the parties. Neither party shall be entitled to commence or maintain proceedings in respect of the subject matter of the appeal after the decision of the Appeal Panel has been published. Transport Infrastructure Project Delivery System, Transport and Main Roads, July

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