PREQUALIFICATION INFORMATION

Department of Planning, Transport and Infrastructure Building and Construction Project Prequalification System (Edition 2012) PREQUALIFICATION INFORMATION General Building Contractor Residential Building Contractor Categories 1 ($10 million to less than $50 million) 2 ($4 million to less than $10 million) 3 ($2 million to less than $4 million) 4 ($150,000 to less than $2 million) Trade/Sub Contractor Categories 1 (Over $2.5 million) 2 ($1 million to less than $2.5 million) 3 ($500,000 to less than $1 million) 4 ($150,000 to less than $500,000)

Prequalification Information Contents Introduction 3 DPTI Building and Construction Project Prequalification System 3 National Prequalification System 4 Application and Reference Documents 4 Application Documents 4 Reference Documents 4 Prequalification System Operation 5 Registration Period 5 Application for Registration 5 Benchmark Criteria 6 Technical Capability 6 Financial Capacity 6 Quality Assurance 7 Work Health and Safety (WH&S) 7 Skill Formation 7 Ecologically Sustainable Development (ESD) 7 Human Resource Management (Industrial Relations) 8 Industry Initiative 8 Re-registration and Changes to Categories 8 Upgrading from Categories 2, 3 or 4 8 Downgrading, Suspending or Cancellation of Registration 9 Assessment and Appeal Processes 9 Prequalification System Application in Tendering 9 Project Prequalification Category Selection 9 Tenderer Selection from the Register of Prequalified Contractors 9 Trade/Subcontractor Prequalification 10 Evaluation of Tenders from Prequalified Contractors 10 Contact 10 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 2 of 10

Prequalification Information Introduction Government is the single largest and regular purchaser of services from the building and construction industry. Government agencies spend substantial investment funds each year on the construction of major and minor works and on professional services related to construction. Government recognises that with this purchasing power, it has responsibilities and obligations to both the tax payer and the industry to: ensure that industry businesses are known to Government contract with businesses which demonstrate the best of industry practices facilitate continuous improvement in the industry as a whole. The Government of South Australia through its Department of Planning, Transport and Infrastructure (DPTI), has developed a prequalification process and associated prequalification requirements for businesses wishing to contract with the Government for building construction projects DPTI Building and Construction Project Prequalification System. Implementation of the System aims to: lift the performance of the building and construction industry give confidence in the ability of contractors to provide satisfactory project outcomes in terms of time, cost and quality provide objective, quantifiable data to support the decision making processes in selecting contractors. This will enable DPTI to: develop a register of contractors who are interested in contracting with government on construction projects set minimum requirements based on criteria against which the suitability of contractors to perform government work can be assessed adjust the minimum requirements periodically, in keeping with developments in the industry, to effect continuous improvement in the building and construction industry in South Australia develop objective, quantifiable data to support the decision-making and risk assessment processes in prequalifying contractors taking into account their technical capability and financial capacity. DPTI Building and Construction Project Prequalification System The prequalification process provides a mechanism to continually improve the performance of contractors seeking government work. The system assesses a contractor s capacity and capability to satisfactorily contract with government and complete building construction projects. Prequalification enables contractors to become registered as being suitable to contract with the government in particular categories based on project value. Registration is NOT a guarantee that any contracts will be awarded. General building, residential building and trade/sub contractors wishing to be registered are required to complete an application, which will be assessed and successful applicants will be placed on the register of prequalified contractors. Minimum acceptable benchmarks for registration in categories 1, 2, 3 and 4 are detailed in this document Prequalification Information (Edition 2012). 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 3 of 10

Prequalification Information The assessment process will be undertaken by the DPTI Registrar in the first instance with prequalification being granted by an Assessment Panel. Appeal processes are available where contractors do not agree with the Assessment Panel s decision. Details of the assessment and appeal processes are contained in the document Assessment and Appeal Processes (Edition 2012). The prequalification process sets consistent standards in contracting and managing projects as a prerequisite to tendering for government work. Contractors working towards industry best practice should have no difficulty in providing the information called for in the prequalification process. Others may need to review their performance and practices to be able to meet the requirements and some may need to access specialist resources or seek assistance from their industry associations. DPTI will apply tendering processes to establish contracts and will generally invite registered contractors to tender for those categories and types of work for which the contractor is registered. National Prequalification System The National Prequalification System for Non-residential Building (NPS) aims to create certainty and consistency, and streamline the process of prequalification for contractors working in multiple jurisdictions. It applies to non-residential government building contracts where the construction cost estimate is $50 million and above in participating jurisdictions. South Australia is a participating jurisdiction. The NPS was developed by the Australasian Procurement and Construction Council (APCC) in conjunction with State and Territory jurisdictions as part of a Council of Australian Governments initiative. The objectives of the NPS are to harmonise the prequalification systems of jurisdictions across Australia and avoid duplication of effort by contractors and jurisdictions by providing for mutual recognition of contractor prequalification. Contractors with head offices in South Australia seeking prequalification for South Australian Government non-residential building contracts $50 million and over must apply under the NPS to the (DPTI) Building Management division. Contractors with head offices in other jurisdictions must apply under the NPS arrangements to the jurisdiction where their head office is located seeking NPS prequalification and mutual recognition by the Government of South Australia. Further information can be obtained from the Registrar. NPS documentation and contacts can be downloaded from the APCC website at www.apcc.gov.au. Application and Reference Documents The following are the application and reference documents for the DPTI Building and Construction Project Prequalification System (Edition 2012). Application Documents 01 Application Form 2012 02 Performance Report Form 2012 (PO18) 09 Financial Details Form 2012 Reference Documents 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 4 of 10

Prequalification Information 03 Prequalification Information 2012 (PO2) 04 Assessment and Appeal Processes 2012 (PO19) 05 Benchmark Criteria 2012 (PO20) 06 Financial Capacity Assessment 2012 (PO3) 07 Performance Reports 2012 (PO21) 08 Code of Practice and Implementation Guidelines 2012 (PO22) 10 Quality Assurance 2012 (P05) 11 Compliance Matrices 2012 (P06) Prequalification System Operation Registration Period Registration in the DPTI Building and Construction Project Prequalification System shall be for a period of two (2) years from the date on which registration or re-registration is granted. Applications will not be fast tracked or given special consideration in regard to the tender call for individual projects, nor will project tender calls be delayed or extended to allow the granting of registration. Application for Registration Contractors are invited to apply for registration in categories of work according to estimated total contract values, with registration in specific categories being granted on the basis of the information supplied. Contractors will nominate for all categories of prequalification related to the value of projects for which they are seeking tendering opportunities. Contractors who nominate only for the highest category level appropriate to their business will not be automatically prequalified for all lower value categories. Prequalification requirements have been established for the following categories: General Building Contractors Residential Building Contractors Trade/Subcontractors Category Contract Value Category Contract Value 1 $10M to less than $50M 1 Over $2.5M 2 $4M to less than $10M 2 $1M to less than $2.5M 3 $2M to less than $4M 3 $500,00 to less than $1M 4 $150,000 to less than $2M 4 $150,000 to less than $500,000 4M $50,000 to less than $250,000 4M $50,000 to less than $250,000 4MA less than $50,000 (Asbestos Removal Trade only) Each category contains sub-categories such as project value and type, locations and trade types. These sub-categories may be used to select suitable tenderers from the register on a contract-by-contract basis. A separate application form and associated documents is available for contractors registering in category 4M or 4MA only. 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 5 of 10

Prequalification Information Benchmark Criteria The Assessment Panel will assess whether the applicant meets the requirements of the DPTI Building and Construction Project Prequalification System for the following benchmark criteria: technical capability financial capacity quality assurance skill formation work health and safety ecologically sustainable development industry initiative human resource management. The benchmark criteria and the extent of detailed evaluation of each requirement will depend on the value and nature of the pre-qualification category being considered. Technical Capability Applicants are required to demonstrate to the satisfaction of the Assessment Panel that they have the technical capability to successfully undertake projects in the categories sought. Three (3) elements will be considered - the experience of employees, project experience and referee reports. Applicants for registration as General Building Contractor or Residential Building Contractor in Categories 1, 2, 3 and 4 are required to provide performance reports on a minimum of three (3) general building contracts completed within the last four (4) years with at least one (1) report being for a project within the value range of the highest category sought. Applicants for registration as Trade/Sub Contractor in Categories 1, 2, 3 and 4 are required to provide performance reports on a minimum of three (3) contracts completed within the last four (4) years for each trade group in which registration is sought. At least one (1) report for each trade group is to be for a project within the value range of the highest category sought. All performance reports must have been prepared at least three (3) months after project practical completion (or equivalent). Where DPTI, under the prequalification system, has assessed a Contractor s performance on departmental projects completed within the last four (4) years, these reports will be automatically included in all assessments. If the reports held by DPTI are current and meet the value ranges, project types, work/trades, locations and the minimum number of reports required for registration as sought in the application, no further performance reports need be provided. If however, additional reports are required to cover the work/trades and categories sought, or the Applicant requires other contracts to be taken into account, additional reports may be submitted with the application. The maximum total number of performance reports for non-dpti projects is three (3) for General Building Contractor, Residential Building Contractor or for each Trade Contractor trade type. Financial Capacity Applicants for General Building Contractor, Residential Building Contractor and Trade/Sub 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 6 of 10

Prequalification Information Contractor must demonstrate that they are financially viable with the capacity to successfully complete contracts of the value for which prequalification is sought. The financial information to be provided and the assessment processes involved are detailed in the document Financial Capacity Assessment (Edition 2012). Although the registration period is two years, registrants may be required to submit financial details annually in accordance with these procedures. More specific information may be required on a contract-by-contract basis. Further detailed consideration may include, but need not be limited to, existing contracts with the South Australian Government and other Principals, the valuation of assets, finance facilities, cash flow projections and related party transactions. Quality Assurance Applicants for General Building Contractor and Trade/Sub Contractor are required to have implemented a quality assurance system. Applicants should use the document Benchmark Criteria (Edition 2012) as a guide for implementing a system to suit the category of prequalification for which registration is sought. Note that quality assurance is not required for prequalification as a Residential Building Contractor. Quality Assurance system requirements are: - Certified ISO 9001:2000 System for Categories 1 and 2 - Certified Quality System to DPTI requirements for Categories 3 and 4. Quality Assurance requirements for individual projects may be determined by DPTI on a contract-by-contract basis and will be assessed on the basis of the risk associated with the particular contract. Work Health and Safety (WH&S) Applicants for General Building Contractor, Residential Building Contractor and Trade/Sub Contractor are required to be undertaking work health and safety (WH&S) practices as required by the current WH&S Regulations. The prequalification process will require demonstration of an acceptable standard through self assessment of the relevant practices being undertaken as a component of normal business. DPTI may undertake an independent audit of the contractor s WH&S practices either at the time of prequalification assessment or during the registration period. Any audit reports or notices issued by a regulatory authority may result in the cancellation, suspension or downgrading of prequalification registration. The minimum requirement for prequalification does not take precedence over any legislated requirements. Skill Formation Applicants for General Building Contractor, Residential Building Contractor and Trade/Sub Contractor are required to be undertaking skill development for all employees in areas relevant to the work being undertaken. The prequalification process will require demonstration of the appropriate practices being undertaken as a component of normal business practice. The compliance level that must be achieved is set out in the Application Form and in the Skill Formation Compliance Matrix included in the document Compliance Matrices (Edition 2012). Ecologically Sustainable Development (ESD) Applicants for General Building Contractor, Residential Building Contractor and Trade/Sub 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 7 of 10

Prequalification Information Contractor are required to be undertaking ESD practices relevant to the work being undertaken. The compliance level that must be achieved is set out in the Application Form and in the ESD Compliance Matrix included in the document Compliance Matrices (Edition 2012). Human Resource Management (Industrial Relations) Applicants for General Building Contractor, Residential Building Contractor and Trade/Sub Contractor are required to be undertaking human resource management practices relevant to the work being undertaken. The compliance level that must be achieved is set out in the Application Form and in the Human Resource Management Compliance Matrix included in the document Compliance Matrices (Edition 2012). Industry Initiative Applicants for General Building Contractor, Residential Building Contractor and Trade/Sub Contractor are required to implement initiatives as detailed in the Application Form. The requirement includes implementation of the requirements of the Code of Practice for the South Australian Construction Industry. Re-registration and Changes to Categories Re-registration is required every two (2) years at the expiration of the registration period with financial details being provided annually if requested. Prequalified contractors will be invited to re-register by the DPTI Registrar prior to prequalification elapsing. A registrant may, at any time by completing a further application form, apply for registration in work types or trades other than that for which registration is current. The registrant must meet all the benchmark criteria for any additional categories as for a new registration. Upgrading from Categories 2, 3 or 4 A registrant may, at any time by completing a further application form, apply for in a higher category than that for which registration is current To progress to a higher category, registrants will need to demonstrate to the satisfaction of the Assessment Panel that they have the capability to successfully undertake projects in the higher category being sought. This will generally require the successful completion of at least one (1) project in the last four (4) years in the higher general building contractor, residential building contractor or trade type category for which registration is sought, with the project being rated as satisfactory or higher on a DPTI prequalification performance report. Alternatively the registrant may provide three (3) DPTI prequalification performance reports on projects of a similar nature and in the upper contract value range of one category below the one for which prequalification upgrading is being sought. Each of these three reports must be rated as good or excellent. As a guide contract values greater than 75% of the category upper limit will be considered to be in the upper contract value range of a category. All performance reports on DPTI projects completed within the four (4) year period will be taken into account during the assessment. The standard assessment process is used to assess applications for re-registration and changes to categories. All performance reports on DPTI projects completed within the last four (4) years and notified to the Contractor will be taken into account during the assessment of such applications. 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 8 of 10

Prequalification Information Applicants will be required to meet all other criteria for the categories sought as detailed in Application and Reference Documents above. Where a Contractor s registration has been upgraded to a higher category using reports rated good or better for a lower category, each report will be deemed a satisfactory+ rating with a score of six (6) for the higher category. Ratings of these reports for the lower category will not be affected. Downgrading, Suspending or Cancellation of Registration There are circumstances under which a contractor s registration will be downgraded, suspended or cancelled. Where the Registrar makes a recommendation and the Assessment Panel determines that an existing registration should be downgraded, suspended or cancelled, then the Registrar will notify the registrant of the decision in writing and shall: specify the grounds upon which it has cancelled, suspended or downgraded the current registration advise the registrant of its rights of appeal. Assessment and Appeal Processes The details of the operation of assessment and appeal processes are contained in the document Assessment and Appeal Processes (Edition 2012). Prequalification System Application in Tendering Project Prequalification Category Selection DPTI in consultation with the project team, will determine the prequalification category applicable to the contract on the following basis: estimated value of the contract works risk assessment of the contract compared to the project risk assessment of the technical capability requirements of the contract. Based on this risk assessment approach the category selected may not align with the estimated value of the contract. The selected category will apply regardless of the actual value of the tender awarded. Tenderer Selection from the Register of Prequalified Contractors A selection process for inviting tenders from contractors listed on the Register of prequalified contractors will be undertaken on the basis of the different types and categories of work for which contractors are prequalified. Following the establishment of contractor performance data, DPTI will select contractors from the register taking into consideration past performance and appropriateness for the project type and value on a contract-by-contract basis. Tendering will be by public call, category tender call, select tender call, registration of interest/select tender call or single select tender call depending on the project circumstances. The database for contractor prequalification information is structured to enable selection of appropriate prequalified contractors on the basis of a range of predetermined project information e.g. project type, project value, geographical location which allows the user to 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 9 of 10

Prequalification Information narrow the selection of appropriate contractors. DPTI reserves the right to call tenders from non-prequalified service providers in special circumstances such as limited prequalified contractors or highly specialised tasks requiring service providers not available from the prequalified list. Trade/Subcontractor Prequalification As an initiative to raise the overall skill level of industry, contractors are encouraged to use trade/sub contractors that are prequalified. DPTI will determine if prequalified trade contractors are required for specific subcontracts on a contract-by-contract basis dependent upon the nature of the project and its associated risks. Any requirements for the use of prequalified subcontractors will be included in the conditions of contract included in the tender documents. Evaluation of Tenders from Prequalified Contractors When contractors have been prequalified with their performance, capability and capacity assessed as part of that process, then tender evaluation will generally consider only project specific issues. In evaluating tenders the principle of best value will be applied. The best value requirements include: compliance with the technical specification and conditions of contract assessment of any alternatives offered quality of the service/product offered past performance. Contact For more information contact: Registrar DPTI Building and Construction Project Prequalification System Building Management Department of Planning, Transport and Infrastructure Phone: 8226 5200 Email: buildingmanagement@sa.gov.au 03 gbc1-4 information 2012 po2 v2-1.doc Updated in June 2013 Page 10 of 10

Department of Planning, Transport and Infrastructure Building and Construction Project Prequalification System (Edition 2012) BENCHMARK CRITERIA General Building Contractor Residential Building Contractor Trade/Sub Contractor Categories 1, 2, 3, 4 and 4M/4MA

Benchmark Criteria Contents Contents 2 Benchmark Criteria 3 General Building Contractor (GBC) 3 Residential Building Contractor 3 Trade/Sub Contractor 4 Notes 4 Contact 5 05 benchmark criteria 2012 po20 v2-1.doc Updated in June 2013 Page 2 of 5

Benchmark Criteria Benchmark Criteria General Building Contractor (GBC) Residential Building Contractor Registration Category 1 2 3 4 4M Project Value $10M to <$50M $4M to <$10M $2M to <$4M $150K to <$2M $50K to <$250K Technical Capability See Note 1 See Note 5 Financial Capacity Quality Assurance (GBC only) Skill Formation Work Health and Safety (WH&S) Industry Initiatives Assessed by the independent consultants to Department of Planning, Transport and Infrastructure (DPTI) based on prescribed financial ratios relevant to the value of the category. Certification to the relevant ISO 9001 standards See Note 2 Compliance Level 3 See Note 3 Certified Quality System See Note 2 Compliance Level 2 See Note 3 Compliance Level 2 Provision of a copy of the WH&S Policy and Action Plan. Demonstration of actions both on and off site for ongoing improvement. See Note 4 Demonstration of implementing the Code of Practice for the South Australian Construction Industry 2008 Assessed by applicant s accountant or banker No requirement No requirement WH&S Policy and Management System in place Human Resource Management Compliance Level 2 See Note 3 Compliance Level 1 See Note 3 No requirement Ecologically Sustainable Development (GBC only) Compliance Level 3 See Note 3 Compliance Level 2 See Note 3 Compliance Level 1 See Note 3 No requirement 05 benchmark criteria 2012 po20 v2-1.doc Updated in June 2013 Page 3 of 5

Benchmark Criteria Trade/Sub Contractor Registration Category 1 2 3 4 4M/4MA Project Value $2.5M and over $1M to <$2.5M $500,000 to <$1M $150,000 to <$500,000 $50,000 to <$250,000 (<$50,000 for 4MA) Technical Capability See Note 1 See Note 5 Financial Capacity Quality Assurance Skill Formation Work Health and Safety (WH&S) Assessed by independent consultants to DPTI based on prescribed financial ratios relevant to the value of the category. Certification to the relevant ISO 9001 See Note 2 Compliance Level 3 See Note 3 Certified Quality System See Note 2 Compliance Level 2 See Note 3 Compliance Level 2 Provision of a copy of WH&S Policy and Action Plan. Demonstration of actions both on site and for ongoing improvement. See Note 4 Assessed by applicant s accountant or banker No requirement No requirement WH&S Policy and Management System in place Industry Initiatives Demonstration of implementing the Code of Practice for the South Australian Construction Industry 2008 Human Resource Management Compliance Level 2 See Note 3 Compliance Level 1 See Note 3 No requirement Notes 1. Technical Capability requires previous and demonstrated capability relevant to the category for which registration is sought. Assessment will comprise three parts: - employee profile with appropriate experience and qualifications - demonstrated experience on projects of equivalent contract value to the highest category of prequalification sought - three (3) satisfactory performance reports on contracts completed in the four years prior to the application date (include all performance reports on completed DPTI contracts within the four years). 2. The required quality system is defined in the document Quality Assurance (Edition 2012). A quality system is not required for registration as a Residential Building Contractor. 05 benchmark criteria 2012 po20 v2-1.doc Updated in June 2013 Page 4 of 5

Benchmark Criteria 3. Compliance level requirements are found in the document Compliance Matrices (Edition 2012). 4. The WH&S Action Plan documents practices and processes in place, the activities to be undertaken in implementation of the WH&S Policy and those required to ensure compliance with legislative requirements. 5. Applicants for registration as General Building Contractor in Category 4M are required to provide a minimum of one (1) performance report on a contract within the value range and details of two (2) referees willing to provide verbal assessment of the Contractor s performance on two other contracts (three in total) completed in the last two years. Applicants for Trade /Sub Contractor in categories 4M and 4MA are required to provide the three reports detailed above for each trade type category sought. Contact For more information contact: Registrar DPTI Building and Construction Project Prequalification System Building Management Department of Planning, Transport and Infrastructure Phone: 8226 5200 Email: buildingmanagement@sa.gov.au 05 benchmark criteria 2012 po20 v2-1.doc Updated in June 2013 Page 5 of 5

Department of Planning, Transport and Infrastructure Building and Construction Project Prequalification System (Edition 2012) COMPLIANCE MATRICES General Building Contractor Residential Building Contractor Trade/Sub Contractor Categories 1, 2, 3 and 4

Contents Self Assessed Prequalification Criteria 3 Skill Formation 3 Human Resource Management 3 Ecologically Sustainable Development (ESD) 3 Skill Formation Compliance Matrix 4 Human Resource Management Compliance Matrix 5 ESD Compliance Matrix 6 11 gbc1-4 compliance matrices 2012 po6 v2-0.doc Page 2 of 6 Updated in September 2012

Self Assessed Prequalification Criteria Applicants for General Building Contractor, Residential Building Contractor and Trade/Sub Contractor are required to be undertaking skill development and human resource management and to be adhering to the principles of ecologically sustainable development. In order to be prequalified, the contractor must demonstrate that it is meeting the compliance level prescribed for the particular category sought in three self-assessed criteria: skill formation, human resource management and ecologically sustainable development. While supporting evidence of responses provided at the time of application is not required at the time of submission, applicants should be aware that random checks of details provided may be conducted. Skill Formation Prequalification assessment tests that all employees including partners, directors and managers undertake skill development appropriate to contractor business activities. The applicant is required to self-assess the level of compliance on a scale of 0 to 5 by reference to the Skill Formation Compliance Matrix in the document Compliance Matrices (Edition 2012). Compliance level 3 is the minimum acceptable level for registration in categories 1, 2 and 3. Compliance level 2 is the minimum acceptable level for registration in category 4. Human Resource Management Prequalification assessment tests that the applicant s management of human resources is appropriate to contractor business activities. The applicant is required to self-assess its level of compliance on a scale of 0 to 5 by reference to the Human Resource Compliance Matrix in the document Compliance Matrices (Edition 2012). Compliance level 2 is the minimum acceptable level for registration in categories 1, 2 and 3. Compliance level 1 is the minimum acceptable level for registration in category 4. Ecologically Sustainable Development (ESD) (For General Building Contractors only) Prequalification assessment tests that the applicant s management of ESD is appropriate to general building contractor s business activities and to required project outcomes. The applicant is required to self-assess its level of compliance on a scale of 0 to 5 by reference to the ESD Compliance Matrix in the document Compliance Matrices (Edition 2012). Compliance level 3 is the minimum acceptable level for registration in category 1. Compliance level 2 is the minimum acceptable level for registration in category 2. Compliance level 1 is the minimum acceptable level for registration in categories 3 and 4. 11 gbc1-4 compliance matrices 2012 po6 v2-0.doc Page 3 of 6 Updated in September 2012

Skill Formation Compliance Matrix Level Needs Policy Strategies Evaluation/Measurement General Requirements 5 Assessment of skill formation based on long range needs of the company. Best practice status supported by continuous improvement demonstrated by company-wide review of skills and more specific projected company demand for skills. Sustained best practice with continuous improvement demonstrated by significant financial and organisational commitment to skill formation as an organisation goal and critical to the company s success integration with other major organisational objectives. Adoption of training benchmarks and use of highly developed consultative processes in policy formations. Sustained best practice in strategy implementation. Workplace learning has been integrated into organisational requirements. Company-wide skill formation plan incorporating commitment to innovative training work based learning and evidence of high levels of consultation, flexible delivery and equal accessibility. Delivery mechanisms and training programs would be documented. Ability to be benchmarked against industry and best practice standards in the field of training. This level is an extension of level 4 and focuses on a structured analysis of undertaking projects in the long term and the relevant training needs. Evaluation measurement will be based on evidence of this structured analysis. At this level, contractors will be able to assess their ability against industry and best practice standards. 4 Demonstrated company wide assessment of skills and projected company demands for skills determined. Significant commitment to skill formation as an organisational goal demonstrated by: - a budget item allocated to training - long term financial commitment to training linked to financial, operating and human resources policies - a defined process commitment to training and consultative procedures in place to determine training priorities. Company-wide skill formation plan incorporating a commitment to innovative training, work based learning and evidence of high levels of consultation, flexible delivery and equal accessibility. Delivery mechanisms and training program would be documented. Benefits of company skill formation program can be demonstrated. Formal recording system documenting training program delivery and evaluation against desired policy outcomes. Implemented company wide skills tracking system. This level requires the contractor to demonstrate that the skill assessment of all employees is documented and is assessed against the skill requirements of the type of projects undertaken in the short and medium term (up to three years). The evaluation measurement of an organisation reaching this level will be based on a structured analysis of the project type skills analysis compared with the skills inventory of employees. This will be coupled with a documented record of completed training courses attended by employees. 3 Currently implementing this element. Demonstrated by existence of skills assessment of workforce on a project basis and has determined projected skills demand for project. Existence of outcomes related skill formation. Policy with consultative procedures in place to determine training priorities. Project based structured training plan providing evidence of consultation, flexible delivery and equal accessibility. Delivery mechanisms and content would be documented. Formal recording system documenting training program. Delivery and limited evaluation against policy outcomes. Implemented a project based skills tracking system. This level requires a more structured assessment of the skill needs on a project by project basis. The evaluation measurement of a contractor reaching this level will be the formal recording of project requirements, training records and a skills assessment of each project. 2 Minimum assessment of training needs on a project basis. Demonstrated by existence of skills assessment procedures. Procedures for consultation will have been determined. Existence of skill formation policy based on clear and defined outcomes. Consultative procedures in place to determine training priorities. Priorities have been determined in consultation within the work force for training but no structured training and development program. Minimal use of measurement against desired outcomes. Existence of training records and an assessment against project needs. In addition to statutory requirements this level is based on an ongoing assessment of skills required for each project. The contractor needs to compare the skill levels of employees against project needs. The evaluation of a contractor reaching level 2 should be based on skill levels generally meeting project needs. 1 Have determined where expenditure needs to be spent to satisfy statutory requirements. Minimal compliance with statutory requirements. Strategy defined in terms of satisfying statutory requirements. Existence of records to satisfy statutory requirements. The contractor needs to determine the statutory requirement applicable for the performance of work. It may be that a contractor is able to demonstrate this requirement through a record of training which employees need to undertake in order to satisfy the statutory requirements. 0 No assessment of needs. No capacity to demonstrate compliance with statutory requirements. No strategy determined. No procedures in place. 11 gbc1-4 compliance matrices 2012 po6 v2-0.doc Page 4 of 6 Updated in September 2012

Human Resource Management Compliance Matrix Level Outcomes Processes Culture 5 As for 4 Continued improvements in productivity demonstrated Demonstration of continued improvement in productivity as benchmarked against the best 4 As for 3 - lost time 3 2 1 0 Demonstration of continuing improvements in labour turnover and absenteeism Demonstration of productivity improvements As for 2 except that lost time due to industrial disputation must not include disputes or issues covered by processes requiring joint commitment of the employer and employees including but not limited to enterprise agreements Improvements in level of absenteeism Labour turnover records indicate improved retention rate As for 1 Lost time due to industrial disputation at levels lower than industry standard Absenteeism records available Award compliance Adherence to industry agreements Lost time due to industrial disputation at levels no worse than industry standard (by State - refer Australian Bureau of Statistics Catalogue No. 6322, Table S) Compliance with relevant Equal Employment Opportunity (EEO) and/or Affirmative Action legislation As for 4 Using processes requiring joint commitment of the employer and employees including but not limited to enterprise agreements, strong emphasis on Best Practice and Continuous Improvement Performance assessment mechanisms used throughout the company Productivity measurements are used as part of benchmarking performance against the best As for 3 Extensive communication program throughout the organisation Skills assessment mechanisms Productivity measurement and targets form part of the basis of determining strategies for improving performance across the organisation Using processes requiring joint commitment of the employer and employees including but not limited to enterprise agreements Company Consultative Committee Implementation of measures to reduce absenteeism Company based dispute setting procedures Exit interviews conducted Productivity measurement and recording forms part of the Enterprise Agreement Company or site based Consultative Committees in operation Applies Award or industry agreed dispute resolution procedures Productivity records and performance shared with workforce Existence of records to verify compliance with legal obligations Existence of productivity records As for 4 Widespread sharing of information and involvement by employees in decision making Semi-autonomous work teams Arbitrary distinctions between staff and workforce removed As for 3 Work organisation based on teams Productivity improvement plans exist for project Client focus (both internal and external) Language and literacy training plans Weekly hire (or longer) employment contracts Commitment to Best Practice and Continuous Improvement Joint employer/employee program As for 2 Flexible work practices implemented (e.g. flexible rostered days off, greater spread of ordinary hours) Existence of employee assistance program Career planning Existing company active EEO and anti discrimination policies Formal employment procedure and induction processes in operation Regular tool box meetings Well defined responsibilities, knowledge of obligations and operational requirements Non compliance with Award(s) and/or Agreements Inability to verify compliance with legal obligations No clear indications of co-operative work environment 11 gbc1-4 compliance matrices 2012 po6 v2-0.doc Page 5 of 6 Updated in September 2012

ESD Compliance Matrix Level Management Systems and Commitment Competencies Implementation and Operation Measurement and Recognition 5 Independent Certification to Environmental Management Systems AS14001:2004. Demonstrated a system and capacity to document, implement and maintain environmental management plans for all projects. Environmental management skills training incorporated in documented training program. All employees and subcontractors are aware of their role and responsibilities in relation to environmental management and have the appropriate skills and competencies to undertake their role. The organisation incorporates best practice ESD initiatives in all projects. Environmental management plans documented, implemented and maintained for all projects. The organisation has been directly involved in a minimum of three building projects over the last five years that have achieved a four star Green Star or higher rating. External benchmarking against environmental management best practice. 4 Compliance with Environmental Management Systems AS14001:2004. Environmental management system reviewed and audited regularly. Demonstrated a system and capacity to document, implement and maintain environmental management plans for all projects. Documented environmental policy with environmental objectives and targets. Environmental management skills training incorporated in documented training program. Environmental management competencies considered in recruitment and contractor selection. All key employees and subcontractors are aware of their role and responsibilities in relation to environmental management and have the appropriate skills and competencies to undertake their role. The organisation has been directly involved in projects where significant new processes were used or documented and reported on. Environmental management plans documented, implemented and maintained for all projects. Major subcontractors are required to submit project specific waste management plans. A series of demonstrated ESD initiatives incorporated over the last three years over at least three projects. Measurement of performance against environmental policy commitments, objectives and targets. The organisation has been recognised for its achievements related to ESD initiatives through recognised industry awards within the last three years. The organisation has or is currently undertaking a project that is planned to achieve a four star Green Star or higher rating. Environmental/construction waste reduction targets set and monitored. 3 An environmental management system established, implemented and maintained. Demonstrated a system and capacity to document, implement and maintain environmental management plans for projects with significant environmental aspects. All environmental aspects of business activities identified and management strategies in place. Procedures in place and periodically tested to identify and respond to emergency situations and accidents to prevent or mitigate adverse environmental impacts. Training needs associated with environmental aspects of business activity identified. Key employees and major subcontractors are aware of their roles and responsibilities in relation to environmental management. Employees performing tasks with the potential to cause significant environmental impact are competent based on documented appropriate education, training or experience. Environmental management plans documented, implemented and maintained for projects with significant environmental aspects. The organisation has been directly involved over the last three years in at least three projects where ESD principles were supported and where environmental initiatives were trialled or incorporated. Environmental management performance included in tender assessment and purchasing. On-site waste separation to support recycling. The organisation has available information and resources related to conservation of resources such as energy, waste and water. Monitoring and measurement of performance against environmental policy commitments. Data collected to support or evaluate operational controls. Documentation and reporting of waste management and recycling results. 2 Documented environmental policy. Specific management representative appointed to ensure environmental management compliance. Key ESD processes for organisation are documented to a degree that enables their consistent application and are auditable. Demonstrated management commitment to continual environmental management performance. There is general awareness throughout the organisation of the basic ESD requirements in achieving good environmental outcomes on a range of projects. Environmental awareness is developed and encouraged among employees and subcontractors. Environmental management plans documented, implemented and maintained for specific activities within projects with significant environmental aspects. Demonstrated ESD initiatives incorporated in projects over the last two years. Waste minimisation plans developed. Implementing waste minimisation and recycling initiatives to reduce waste to landfill. Recording of construction waste recycling and construction waste to landfill. The organisation has been an active participant in the ESD type industry programs with some staff engaged in industry and community initiatives related to ESD and planning issues within the last three years. Records maintained demonstrating compliance with organisation s ESD processes and legal requirements. Identification and compliance with environmental legal requirements. Office policy for recycling, paper minimisation waste issues documented. 1 No formal documented ESD policies or procedures but information available for the application of ESD principles and to meet legal requirements. A basic ESD checklist is used as an ESD guide for all projects. Some staff have undertaken ESD training and information sessions. All staff aware of environmental management legal requirements relevant to their work activities. There is minimal attempt at incorporating policies for the conservation of resources within any projects over the last three years. Implementing project specific environmental management controls to ensure legal compliance. The organisation has endeavoured to introduce basic ESD policies into projects. Records maintained demonstrating legal compliance. 0 No verifiable commitment regarding the natural environment, recycling and waste minimisation. No evidence of environmental management procedures. There is no verifiable evidence of staff skills or policies in existence in relation to ESD/environmental training. There is no documented budget or commitment to training on ESD issues. No office policies regarding resource minimisation within office environment and no verifiable resource minimisation initiatives undertaken on projects. The organisation has no demonstrable approach to ESD initiatives and has no actual examples of projects that demonstrate or incorporate ESD initiatives. 11 gbc1-4 compliance matrices 2012 po6 v2-0.doc Page 6 of 6 Updated in September 2012

Department of Planning, Transport and Infrastructure Building and Construction Project Prequalification System (Edition 2012) QUALITY ASSURANCE General Building Contractor Trade/Sub Contractor Categories 1, 2, 3 and 4

Quality Assurance Contents Introduction 3 Application of Quality Assurance 3 Quality Assurance for Prequalification 3 ISO 9001 4 Quality System to DPTI Requirements 4 Procedures and Practices Elements 4 Certification 5 Contact 5 10 gbc1-4 quality assurance 2012 po5 v2-0.doc Updated in September 2012 Page 2 of 5

Quality Assurance Introduction Quality Assurance requirements appropriate to the project value, risk and complexity may be specified on Department of Planning, Transport and Infrastructure (DPTI) building and construction projects. Quality Assurance is the provision of satisfactory evidence by the supplier in contractual situations that the goods, works or services have been or will be produced consistently to the customer s requirements. It is a requirement that General Building and Trade/Sub Contractors demonstrate their: quality assurance compliance level commitment to the maintenance and day to day use of a system positive management/employee attitude to the use of a system. The performance of General Building and Trade/Sub Contractors will be monitored through the Performance Reports which will, amongst other things, monitor the application of quality assurance on projects. Application of Quality Assurance The Quality Assurance levels have been set to reflect both the need for managing the level of risk associated with projects and the ability of the building and construction industry participants to incorporate quality assurance processes into their business practice. The intention is to periodically review the Quality System elements with a view to adding elements in stages, taking into consideration the current practice in the industry and government s needs. The prequalification requirement for levels of Quality Assurance, whilst not being project specific, provides a certain assurance that the risks associated with any project can be managed to a certain extent thereby minimising the risk to government in the first instance. The application of quality requirements to projects will be as detailed in the document Benchmark Criteria (Edition 2012) unless a project is considered to be of high risk to the Principal, in which case a higher level of quality assurance may be applied and only those Contractors with the appropriate systems in place will be invited to tender. In applying Quality Assurance requirements to a project, DPTI will assess the project on the basis of the risks associated with each element of the project and determine the application of an appropriate quality assurance requirement. This may involve the application of a higher level of Quality Assurance to a Trade Contractor than is applied to the General Building Contractor depending on the assessed risk. Quality Assurance for Prequalification General Building and Trade/Sub Contractors are encouraged to seek certification of ISO 9001 quality assurance systems from a JASANZ accredited certifying organisation, however two standards have been established. General Building and Trade/Sub Contractors applying for Categories 1 and 2 require full ISO 9001 certification, while General Building and Trade/Sub Contractors applying for categories 3 and 4 require a certified quality system to DPTI requirements. 10 gbc1-4 quality assurance 2012 po5 v2-0.doc Updated in September 2012 Page 3 of 5

Quality Assurance Residential Building Contractors applying for categories 4 and 4M and General Building and Trade/Sub Contractors applying for category 4M are not required to demonstrate that a quality assurance system is implemented. ISO 9001 Independent certification of compliance with ISO 9001 standard. Quality System to DPTI Requirements There will be extensive documentation of core and critical activities with certification by an independent organisation, which is experienced in quality system certification. There are two levels of required documentation: quality policy statement linked to the business plan procedures and practices containing, as a minimum, the elements of ISO 9001 as listed below. Procedures and Practices Elements Purchasing (Subcontract services) Evaluate and select subcontractors on the basis of their ability to meet the contract requirements (including being prequalified with DPTI if required by individual project tender documents). Contract Review - Check that sufficient information has been received to document the scope of work. - Confirm all verbal orders in writing. - Establish and maintain a register of variations. Document Control - Establish and maintain a register of construction documents indicating their current revision status and transmittal details. - Review documents prior to use. - Remove obsolete documents from use. - Where obsolete documents are required for future reference, store them in an appropriate location. - Monitor and register amendments to documents. Process Control - Establish documented procedures for carrying out the key processes in a building and/or construction contract. - Include in the procedures those specific activities for the information of or requiring the direction of the Superintendent (or equivalent). - Include in the procedures inspection and test points, survey control points and hold points. 10 gbc1-4 quality assurance 2012 po5 v2-0.doc Updated in September 2012 Page 4 of 5

Quality Assurance Inspection and Testing - Prepare an appropriate inspection and test plan or checklists to identify the controls to be preformed on the project. - Perform the inspections and tests referenced in the inspection and test plan or checklists. - Maintain suitable records which indicate the type, location and results of the inspections performed. Nonconforming Product - Document non-conformances on an appropriate record. - Evaluate and document the methods for rectifying non-conformances. - Submit the details of proposed rectification for approval. - Reinspect the work following rectification. Quality Records - Establish and maintain suitable records to demonstrate compliance with the above requirements. Training - Establish and maintain documented procedures for identifying and carrying out training of all personnel performing activities affecting the core business activities and quality management activities. - Maintain training records as evidence of the training provided. Certification An independent auditor will certify that the contractor s quality system fully addresses DPTI requirements including all the elements detailed in this document Quality Assurance (Edition 2012). If the party certifying is other than a Joint Accreditation System of Australia and New Zealand (JASANZ) accredited organisation, provide details of the independent auditor who has: - had at least 5 years experience in the building and construction industry - had at least 3 years experience in auditing quality systems in the building and construction industry. Contact For more information contact: Registrar DPTI Building and Construction Project Prequalification System Building Management Department of Planning, Transport and Infrastructure Phone: 8226 5200 Email: buildingmanagement@sa.gov.au 10 gbc1-4 quality assurance 2012 po5 v2-0.doc Updated in September 2012 Page 5 of 5

Department of Planning, Transport and Infrastructure Building and Construction Project Prequalification System (Edition 2012) FINANCIAL CAPACITY ASSESSMENT General Building Contractor Residential Building Contractor Trade/Sub Contractor Categories 1, 2, 3 and 4

Financial Capacity Assessment Contents Introduction 3 Principles of Financial Capacity 3 Assessment Procedures 4 Financial Criteria 4 Net Worth 5 Working Capital 5 Capitalisation 5 Profitability 5 Turnover 6 Criteria Matrix for General Building Contractor and Residential Building Contractor 6 Criteria Matrix for Trade/Sub Contractors 7 Acceptable Financial Capacity 7 Confidentiality and System Security 8 Contact 8 06 gbc1-4 financial capacity assessment 2012 po3 v2-0.doc Updated in September 2012 Page 2 of 8

Financial Capacity Assessment Introduction Assessment of financial capacity is primarily a risk management tool. Along with other prequalification criteria it is used specifically to measure the risk of financial failure of contractors. Its secondary aim is to encourage financial reform within the construction industry particularly in relation to: capitalisation profitability management practices. The process has significant advantages to the Principal in that it: allows the early identification of a contractors financially viability allows contractors to restructure to meet appropriate benchmarks thus increasing the potential size of acceptable tender fields. It also has advantages to contractors through the establishment of financial benchmarks which: reduce the risk of contractors preparing tenders which will not later be accepted on the grounds of insufficient financial capacity assist security of payment for contractors by decreasing their risk of exposure to financial failure of other contracting parties. Principles of Financial Capacity The principles of financial capacity that must be met as part of the assessment are: Sufficient liquid assets to meet project demands: - the level of liquidity (cash or access to cash by way of overdraft etc) in relation to the level of prequalification sought - additional verification may be required on a project by project basis to verify a contractor s current liquidity before the awarding of a contract. Not overly burdened by debt: - the cost of credit and the impact and leverage of interest bearing debt. History of profitable trading: - the profitability of the business, both declared and underlying. Turnover is not outgrowing its ability to support: - the level of past turnover in relation to the level of prequalification sought. Not (or would not be) trading beyond means of financial capacity: - measured as a ratio of assets to turnover. Adequately capitalised: - capitalisation and net worth of the business - the degree of risk or security introduced by non-contracting business activity - access to guarantee facilities through assets held outside the business. 06 gbc1-4 financial capacity assessment 2012 po3 v2-0.doc Updated in September 2012 Page 3 of 8

Financial Capacity Assessment Assessment Procedures To assess the financial capacity of contractors, the Department of Planning, Transport and Infrastructure (DPTI) has appointed a panel of private sector Chartered Accountants and/or Certified Practising Accountants to act in the role of Financial Assessor. Financial Assessors will receive contractors financial information, analyse the information according to the financial assessment process detailed in this document and make recommendations to DPTI regarding the appropriate categories for registration. Financial Assessors are bound by a confidentiality clause which does: not allow the retaining or copying of any documents submitted by the contractor require confidential storage of submitted documents require confidential control of computing databases require confidentiality of all information pertaining to the contractor. The Financial Assessor will undertake a financial assessment of each contractor for DPTI prequalification on the basis of: receiving contractor s financial information in a sealed envelope marked with an identification number from the DPTI Registrar. Insert the ID number on all documents contained in the sealed envelope entering relevant data from the contractor s financial information in a Microsoft Excel spreadsheet undertaking an overall assessment based on a comparison of ratios calculated from the contractor s data with the guideline ratios contained in this document making a value judgement of the applicant s financial suitability to carry out work of the respective category value applied for based on the total information making recommendation to the DPTI Registrar regarding the financial assessment giving a written summary of the reasons for making the above recommendation keeping the Microsoft Excel record of each financial assessment undertaken for the currency of any engagement by DPTI as a Financial Assessor destroying the contractor s financial information after 3 months from completion of the assessment in a manner appropriate for confidential documents. Neither DPTI nor any other government body will sight any submitted financial documents unless authorised to do so by the applicant. Copying of financial documents submitted by applicants is not permitted. Data will be extracted from submitted financial documents and stored in secure files by the Financial Assessor in order to enable a historical analysis of performance to be viewed during subsequent assessments. Only Financial Assessors from the panel who have no business relationship with a contractor will be appointed to assess an applicant s financial standing. Financial Criteria The first step is the establishment of the legal trading identity of the applicant. This involves establishing the identity of the directors and/or owners of the business. The Australian Securities and Investment Commission may be consulted for company information. The history 06 gbc1-4 financial capacity assessment 2012 po3 v2-0.doc Updated in September 2012 Page 4 of 8

Financial Capacity Assessment of company directors and owners is also checked for past records of bankruptcy and referee checks may be undertaken to establish the payment history of any business. The next step is the checking of the asset backing the business, in particular, those assets which are available to the business and the financial performance of the business over the last three (3) years. The financial analysis will take into account the previous three (3) years accounts to give a reasonable understanding of the firm s position and provide a trend analysis of the firm s stability. Whilst it is recommended that only audited accounts be considered, DPTI will accept accounts prepared for taxation purposes. Interim accounts are generally not acceptable however, they may be requested particularly when the timing of an application is such that the last available accounts are not considered current. Additional information may be sought in the form of overdraft or credit facilities, guarantee facilities and security details for these facilities. The requirements for each criteria in priority order are: Net Worth The maximum value of the Tangible Liabilities to Tangible Assets ratio will be 95% for prequalification categories over $2M, 90% for categories below $500,000. Working Capital This element identifies the access to funds through current assets which includes cash, debtors etc and the ability to meet short term liabilities (i.e. creditors etc). This figure should be in the order of 20% of the lowest value for the prequalification category applied for, e.g. working capital for Category 3 should be, as a minimum, 20% of $2M or $400,000. Capitalisation Paid up capital will be required for each category of prequalification as shown on the attached matrices. The paid up capital must be, as a minimum, 50% fully paid up capital and 50% in partly paid shared capital. The expectation will be to move to fully paid up capital in subsequent years. Personal guarantees by directors of the entity seeking registration to meet the paid up capital criteria are not appropriate. This figure will be reviewed to line up with current Building Work Contractors Act requirements as a minimum and then in the long term move to match the national position. Profitability The applicant must be able to demonstrate a history of profitability and have an underlying annual profit (Earnings Before Interest and Tax - EBIT) of 2.5% as a minimum of turnover for the majority of the last 3-5 years. 06 gbc1-4 financial capacity assessment 2012 po3 v2-0.doc Updated in September 2012 Page 5 of 8

Financial Capacity Assessment Turnover The applicant must be demonstrating active trading. The turnover should be at least twice the lowest value in the prequalification category being sought, e.g. for Category 3 the turnover should be, as a minimum, $1M (2 x $500,000). An acceptable level is for turnover not to exceed 12.5 times the net tangible assets. The values detailed refer to the prequalification requirements for General Building Contractors. For Trade/Sub Contractor requirements refer to the attached matrices. The remaining elements and ratios identified in the matrices will be used as supplementary information in carrying out the assessment process. Criteria Matrix for General Building Contractor and Residential Building Contractor The criteria shown in the table below are a guide to the financial benchmarks which will determine in which categories a General Building Contractor (GBC) and Residential Building Contractor (RBC) will be registered based on an assessment of submitted financial data. Registration Category 1 2 3 4 Project value for assessment purposes $10M $4M $2M $150,000 Paid up capital $40,000 $40,000 $20,000 $10,000 Unused guarantee capacity Net tangible assets No specific requirements No specific requirements Total Liabilities/Tangible Assets < 95% < 95% < 95% < 90% Interest bearing debt/tangible assets Working capital and unused overdraft capacity. Together these should be in the order of: < 50% < 50% < 50% < 50% $800,000 $800,000 $400,000 $30,000 EBIT/Net interest > 2 > 2 > 2 > 2 Cost of funds/turnover < 5% < 5% < 5% < 5% Operating revenue $20M $8M $4M $0.3M Turnover/Net tangible assets < 12.5 < 12.5 < 12.5 < 12.5 Net profit Profit /Operating revenue Positive profit history Positive ratio EBIT/Operating revenue > 2.5% > 2.5% > 2.5% > 2.5% Contract income/total income No specific requirements 06 gbc1-4 financial capacity assessment 2012 po3 v2-0.doc Updated in September 2012 Page 6 of 8

Financial Capacity Assessment Criteria Matrix for Trade/Sub Contractors The criteria shown in the table below are a guide to the financial benchmarks that will determine in which category Trade/Sub Contractors will be registered based on an assessment of their submitted financial data. Registration Category 1 2 3 4 Project value for assessment purposes $2.5M $1M $0.5M $150,000 Paid up capital $20,000 $20,000 $10,000 $10,000 Unused guarantee capacity Net tangible assets No specific requirements No specific requirements Total Liabilities/Tangible Assets < 95% < 95% < 90% < 90% Interest bearing debt/tangible assets Working capital and unused overdraft capacity. Together these should be in the order of: < 50% < 50% < 50% < 50% $200,000 $200,000 $100,000 $30,000 EBIT/Net interest > 2 > 2 > 2 > 2 Cost of funds/turnover < 5% < 5% < 5% < 5% Operating revenue $5M $2M $ M $300,000 Turnover/Net tangible assets < 12.5 < 12.5 < 12.5 < 12.5 Net profit Profit /Operating revenue Positive profit history Positive ratio EBIT/Operating revenue > 2.5% > 2.5% > 2.5% > 2.5% Trade applicants and wages/ Turnover Contract income/total income < 50% No specific requirements Acceptable Financial Capacity An applicant will be considered to have an acceptable financial capacity if all 5 key criteria are met. If the applicant meets most of the criteria but narrowly fails to meet the remaining criteria then the supplementary information will be used to make a judgement of the applicant s financial capacity. Should applicants believe that (on the basis of their own assessment) they just fail to meet one or two of the key criteria requirements of a particular category, having met the remainder, then the applicant may apply for that category on the understanding that if, in the financial assessor s opinion, the applicant is substantially short of meeting the criteria the applicant will be prequalified in the appropriate category or not at all. 06 gbc1-4 financial capacity assessment 2012 po3 v2-0.doc Updated in September 2012 Page 7 of 8

Financial Capacity Assessment Applicants may appeal against decisions of the Prequalification Assessment Panel which have been based on financial assessment. Confidentiality and System Security All financial information supplied by the contractor will be in the absolute control of the Chief Executive of DPTI, who will take all such reasonable steps as may be necessary to secure the complete confidentiality of that information. Subject to the above, financial information provided by a contractor shall not be made available to any person, including assessment panel or appeal panel members. Contact For more information contact: Registrar DPTI Building and Construction Project Prequalification System Building Management Department of Planning, Transport and Infrastructure Phone: 8226 5200 Email: buildingmanagement@sa.gov.au 06 gbc1-4 financial capacity assessment 2012 po3 v2-0.doc Updated in September 2012 Page 8 of 8

Department of Planning, Transport and Infrastructure Building and Construction Project Prequalification System (Edition 2012) PERFORMANCE REPORTS

Performance Reports Contents Introduction 3 Performance Reports 3 General Requirements 3 Performance Report Procedures for DPTI Contracts 4 Scoring of Reports 5 Objections to Performance Reports 5 Calculation of Average Performance Scores 6 Contact 6 07 performance reports 2012 po21 v2-0.doc Updated in September 2012 Page 2 of 6

Performance Reports Introduction Performance Reports will be used by the Department of Planning, Transport and Infrastructure (DPTI) both in assessment of the General Building Contractors, Residential Building Contractors, Trade/Sub Contractors, Professional Service Contractors and Discipline Professional Service Contractors for registration as a prequalified contractor, and in tender evaluation processes where each tenderer s prequalification performance score relative to other tenderers scores is part of the evaluation. Contractor performance assessment aims to measure the contractor s work and performance in undertaking contracts in the prequalification categories. The Performance Report has been structured to enable a common report to be used for reporting on various types of contractor services. A contractor s performance will be measured using a numerical rating and weighting scale applied to the level of performance rated for each item by the Referee as outlined in this document Performance Reports (Edition 2012). A weighting factor from 3 to 1 has been assigned to each item to reflect the relative importance of the item with a weighting of 3 reflecting the highest importance. On projects managed by DPTI where registration under the prequalification system has been included as a tender condition, performance reports for General Building, Residential and Trade/Sub Contractors, Professional Service Contractors and Discipline Professional Service Contractors will generally be prepared. The contractor will be provided with a copy of its report for information. There will be an opportunity for the contractor to object to the use of report if the processes or procedures used in the compilation of it are considered to be inappropriate. Any such objection will be considered. DPTI will reject objections to the merit of the Referee s judgement, either overall or for specific items. In addition to the regularly prepared DPTI performance reports, the system provides for contractors to submit, as part of an application for registration or re-registration, a limited number of performance reports on projects for clients other than DPTI (including private sector clients). DPTI reserves the right to object to these reports on the basis that the processes or procedures used in the compilation of any report are inappropriate or the reports do not meet the general requirements as detailed in this document and, at its discretion, may reject any report. Performance Reports General Requirements Performance Reports must comply with the following general requirements. The construction, trade or professional service contract, which is the subject of the report, must be a contract for which the assessment of performance can be readily equated to typical government construction projects in the commercial sector of the building industry. The construction trade or professional service contract must have been undertaken under a recognised form of contract conditions with the Principal or Client being independent of the contractor and where the contractor has undertaken the full scope of responsibilities addressed as items in the report. At the date of compilation of the report by the Referee the construction or trade contract 07 performance reports 2012 po21 v2-0.doc Updated in September 2012 Page 3 of 6

Performance Reports must have reached practical completion or equivalent and there must have been at least three months elapsed time since. This will allow the Referee to make an assessment of the contractor s performance in finalising the contracted works. The construction or trade contract value must exceed the lowest value of the category being sought. For General Building Contractor, Residential Building Contractor and Trade/Sub Contractor Categories 1, 2, 3 and 4 and PSC categories 1, 2 and 3 the construction or trade contract will be considered current if it was completed after a date four (4) years prior to the date of application for registration as a prequalified contractor. For registration assessment purposes the application date is the date that the completed application form with payment was received by DPTI. For General Building Contractor and Trade/Sub Contractor Categories 4M and 4MA and PSC category 3M the construction or trade contract will be considered current if it was completed after a date two (2) years prior to the date of application for registration as a prequalified contractor. For registration assessment purposes the application date is the date that the completed application form with payment was received by DPTI. For ongoing performance score calculations the construction or trade contract will be considered current where it was completed after a date four (4) years (two (2) years for categories 4M, 4MA and PSC category 3M) prior to the date of receipt of the most recent application for which registration was approved. In determining the currency of project reports the date of completion of the contract shall be the date of practical completion or equivalent of the contracted works. The Referee must have a technical role in and knowledge of the contract such that in consultation with other team members including the client, he/she is capable of making technical assessments of the contractor s performance. The Referee must be independent of the contractor. A maximum number of three (3) reports on non-dpti projects for each particular category will be taken into account in registration assessments. The Registrar will initially make a determination that performance reports do or do not meet these requirements and provide advice to the Assessment Panel. The Assessment Panel may consider any report and make a final determination to accept or reject it in regard to these requirements. Performance Report Procedures for DPTI Contracts DPTI will generally initiate preparation of performance reports around three months after achievement of contract practical completion (or equivalent). The following procedures will be adopted in processing these reports however these may be varied where special circumstances exist. DPTI will nominate appropriate project team members to be Referees to compile reports in accordance with DPTI Guide Notes. Referees complete reports by assigning descriptors from those listed in the report that best describe the contractor s performance to each item and submit reports to DPTI for acceptance. DPTI will review the report determining whether it is based on informed opinion and is generally representative of the contractor s performance on the project. DPTI may not accept the report. 07 performance reports 2012 po21 v2-0.doc Updated in September 2012 Page 4 of 6

Performance Reports If accepted, DPTI will provide the contractor with a copy of the report for information. There will be an opportunity for the contractor to object to the use of report if the processes or procedures used in the compilation of it are considered to be inappropriate. Any such objection will be considered. DPTI will reject objections to the merit of the Referee s judgement, either overall or for specific items. Subject to objection, the report will be scored in accordance with the rating scale detailed below and entered into the DPTI Contractor and Consultant Registration System (CCRS) database. It will then be included in calculations of the contractor s average performance score for that category or in other prequalification assessments. Scoring of Reports Performance reports will be scored by DPTI prior to being entered into the CCRS database in accordance with the following rating scale: Descriptor (E+) Excellent + 10 (E) Excellent 9 (G+) Good + 8 (G) Good 7 (S+) Satisfactory + 6 (S) Satisfactory 5 (U) Unsatisfactory 4 (U-) Unsatisfactory - 3 (P) Poor 2 (P-) Poor - 1 Score Note: Where Excellent, Good or Satisfactory ratings include a sign, descriptors will be assigned the lower value score for that descriptor and Unsatisfactory or Poor ratings including a + sign will be assigned the higher rating. Objections to Performance Reports The following parties may raise an objection to the use of performance reports: contractors - for reports initiated by DPTI and compiled by DPTI nominated Referees DPTI - for reports submitted by the contractor. A contractor must lodge an objection within 14 days of receipt of the report if it considers that the report does not accurately reflect the contractor s performance due to inappropriate processes or procedures having been used in the compilation of the report. Any such objection will be considered. Objections to the merit of the Referee s judgement, either overall or for specific items will be rejected. Objections must clearly indicate the reasons that form the basis of a claim that the assessment process has been inappropriate and, if applicable, any individual ratings that are claimed to have been adversely affected by the process. If an objection to process in the compilation of the report is received the following will apply. 07 performance reports 2012 po21 v2-0.doc Updated in September 2012 Page 5 of 6

Performance Reports The report will not be relied upon by DPTI until the appropriateness of the process has been confirmed. Within 14 days of receipt of an objection, DPTI will make enquiries into the process used for scoring the report or report items and make a determination that due process has/has not been followed. If DPTI determines that due process has been followed the report will be entered into the CCRS database and included in calculations of the contractor s average performance score for the category. If DPTI determines that the process for scoring the report did not follow due process the report will be discarded and not entered into the CCRS database. Following determination of the objection, the Registrar will advise the contractor in writing of the outcome of the objection. Calculation of Average Performance Scores Average performance scores are utilised by DPTI as a non-price criteria in the evaluation of tenders. Current performance reports entered into the DPTI database for the particular category will be included in the calculation of a contractor s average performance score for that category and trade type e.g. General Building Contractor - Category 3 or PSC Landscape Architecture - Category 1. Calculation of the average performance score is as follows. The average score for a specific category is calculated using reports for that category alone or that category plus the next higher category, whichever is the greater. Where a contractor s registration has been upgraded to a higher category using reports rated good or better at a lower category, such reports will be deemed a satisfactory+ rating with a score of six (6) for the higher category (not applicable to categories 4M, 4MA and PSC category 3M). Reports that are under review following an objection will not be included in the calculation of the average score. A maximum number of three (3) reports on non-dpti projects for each particular category will be taken into account in calculation of average category performance scores. Contact For more information contact: Registrar DPTI Building and Construction Project Prequalification System Building Management Department of Planning, Transport and Infrastructure Phone: 8226 5200 Email: buildingmanagement@sa.gov.au 07 performance reports 2012 po21 v2-0.doc Updated in September 2012 Page 6 of 6

Department of Planning, Transport and Infrastructure Building and Construction Project Prequalification System (Edition 2012) ASSESSMENT AND APPEAL PROCESSES

Assessment and Appeal Processes Contents Introduction 3 Role of the Registrar 4 Assessment Process 4 Membership of the Assessment Panel 4 Role of the Assessment Panel 5 Appeal Process 5 Membership of the Appeal Panel 6 Role of the Appeal Panel 6 Panel of Private Sector Representatives 7 Nomination for Panel of Private Sector Representatives 8 Information to be Submitted with a Nomination 8 Selection Criteria and Process 8 Panel Management 8 Data Base Confidentiality 9 Contact 9 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 2 of 9

Assessment and Appeal Processes Introduction This document Assessment and Appeal Processes (Edition 2012) sets out the registration term and the assessment and appeal processes that will apply to all categories in the DPTI Building and Construction Project Prequalification System. The assessment process described in this document applies to the assessment of applicants to be registered or registrants to be re-registered as prequalified Professional Service, General Building, Residential Building and Trade/Sub Contractors. Registration in the DPTI Building and Construction Project Prequalification System is for a period of two (2) years from the date on which registration or re-registration is granted. At the conclusion of the registration period a registrant must re-apply for registration and be reassessed in accordance with these processes. In addition a registered party may, at any time, apply for: registration in a higher category than that for which registration is current registration in trade types or disciplines other than those for which registration is current. All assessments will be under a four (4) part process. 1. Initial assessment by the Registrar. - Applications which meet the prequalification requirements of the category/s applied for are then submitted to the Assessment Panel. - Applications which are assessed as not meeting all of the prequalification requirements are in the first instance referred back to the Applicant. Where the issue requires panel consideration it is referred to the Assessment Panel and advice provided to the Applicant. 2. Approval by Assessment Panel. - The Assessment Panel will formally approve those applications which meet the prequalification criteria of the categories applied for. - The Assessment Panel will formally upgrade those applications which meet the prequalification criteria of a higher category applied for. - The Assessment Panel will consider applications which do not meet the prequalification criteria of the categories applied for and may formally approve the application at a lower category level, reject it or may request additional information prior to further assessment. 3. If initiated by the applicant or registrant, an Appeal Panel will review a decision of the Assessment Panel and make recommendations to the Chief Executive. 4. The Chief Executive will reconsider the decision taking into account any recommendations of the Appeal Panel and make the final determination on the application or on the upgrading, downgrading, suspending or cancelling of the registration of a registrant. The decision will be final. The processes are intended to be fair and transparent, to comply with the principles of natural justice and to operate generally for the benefit of the building and construction industry. They include the establishment of Assessment and Appeal Panels which operate under the authority of the Chief Executive, DPTI, with a Registrar managing the process and providing an executive service to the panels. 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 3 of 9

Assessment and Appeal Processes Role of the Registrar The Registrar shall: manage the day-to-day operation of the prequalification system convene the Assessment Panel and the Appeal Panel when necessary undertake the initial assessment of applications and prepare recommendations to the Assessment Panel to: - approve those applications which meet the criteria - give detailed consideration to those applications which do not meet the criteria act as Executive Officer to the Assessment Panel and the Appeal Panel where sufficient grounds are identified to consider cancelling, suspending or downgrading a registration, notify the registrant concerned in writing and advise them of the procedures involved as set out in this document. The Registrar shall be responsible for calling meetings for the purposes of considering applications and/or reviewing the status of existing registrants. Assessment Process All applicants for registration and all registrants seeking re-registration will provide a fully completed application form with all required accompanying information in accordance with the requirements of the DPTI Building and Construction Project Prequalification System. While some supporting evidence of responses provided on the application form is not required at the time of submission, applicants should be aware that random checks (audits) of details provided on the application form will be conducted. All applications will be assessed by the Assessment Panel. Applicants for registration are required to demonstrate to the satisfaction of the Assessment Panel that they have the capacity to successfully and consistently undertake projects to a satisfactory standard, in the category sought. Membership of the Assessment Panel An Assessment Panel shall comprise the following or as authorised by the Chief Executive, DPTI: DPTI, Building Management nominee as Chair DPTI, Contracting and Procurement representative - policy and procurement DPTI, Project Services representative - design and technical a senior officer from a Government of South Australia agency with appropriate background in capital investment program management a representative from the Panel of Private Sector Representatives. Membership shall be drawn from private sector building and construction associations, organisations and individuals. The process for appointing members to the panel is detailed in this document. The Registrar will select appropriate members to sit on the Assessment Panel. Members from the Panel of Private Sector Representatives shall have equal status with all other members on the Assessment Panel and shall participate in all functions of the panel. 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 4 of 9

Assessment and Appeal Processes The Registrar shall act as non-voting Executive Officer and Panel Secretary. Role of the Assessment Panel The Chief Executive will establish a panel to consider any completed application received in accordance with the requirements of the DPTI Building and Construction Project Prequalification System. The Assessment Panel shall meet as determined by the Chair and will use its skill, experience and judgement to make an assessment of the application and shall be responsible for: granting or refusing registration to an applicant granting or refusing an application for upgrading of or changes to registration granting registration to an applicant subject to further verification of information or provision of additional information specifying the category and type of registration to be granted requesting additional information prior to re-assessment of the application by the Panel giving written reasons where registration is refused or granted other than as sought by the applicant downgrading, suspending or cancelling an existing registration on recommendation by the Registrar determining those registrants who will be subject to random checks (audits) of selfassessed criteria viz.: - Quality Assurance - Skill Formation - Work Health and Safety (WH&S) - Industry Initiative - Human Resource Management - Environmental Sustainable Development. DPTI auditors, appointed by the Chair of the Assessment Panel will conduct the audits. In accordance with the principles of natural justice, assessments will be based only on information provided to the Assessment Panel. The Panel may obtain assistance from professional consultants on any matters relating to the prequalification criteria except that financial advice may not be sought from a financial consultant who is directly involved with an applicant or registrant s financial affairs. All applicants and registrants will be notified of the assessment panel decision and the registration details. Applications will not be fast tracked or given special consideration in regard to the tender call for individual projects, nor will project tender calls be delayed or extended to allow the granting of registration. Appeal Process There are circumstances under which a contractor s registration will be downgraded, suspended or cancelled. Where the Registrar makes a recommendation and the Assessment 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 5 of 9

Assessment and Appeal Processes Panel determines that an existing registration should be downgraded, suspended or cancelled, then the Registrar will notify the registrant of the decision in writing and shall: specify the grounds upon which it has cancelled, suspended or downgraded the current registration advise the registrant of its right of appeal. The Registrar will advise the applicant or registrant in writing of a decision of the Assessment Panel to reject or downgrade an application for registration or to cancel, suspend or downgrade an existing registration, and that: it is entitled to appeal the decision of the Assessment Panel in writing to the DPTI Chief Executive through the Registrar any appeal must be lodged within fourteen (14) calendar days of the notification of the Assessment Panel s decision by the Registrar the applicant or registrant may make a personal and/or written submission to the Appeal Panel the applicant or registrant may, with the agreement of the Appeal Panel, attend and/or be represented at the Appeal hearing. Membership of the Appeal Panel The Chief Executive will establish a panel to consider any appeal received by an applicant or registrant. The Registrar will recommend appropriate members to sit on the Appeal Panel. Members from the Panel of Private Sector Representatives shall have equal status with all other members on the Appeal Panel and shall participate in all functions of the panel. Assessments are to be based only on information provided to the Appeal Panel in accordance with the principles of natural justice. An Appeal Panel will generally comprise the following or as authorised by the Chief Executive: Chief Executive nominee as Chair a senior officer from a South Australian Government agency with appropriate background in the building and construction industry who was not a member of the Assessment Panel which reached the decision under appeal a representative from the Panel of Private Sector Representatives who was not member of the Assessment Panel which reached the decision under appeal. The Chair of the Assessment Panel may attend as a non-voting member for reference and to provide background on the assessment panel s decision. The Registrar shall act as non-voting Executive Officer and Panel Secretary. Role of the Appeal Panel The role of the Appeal Panel is to review the decision of the Assessment Panel and recommend to the DPTI Chief Executive that the appeal be upheld or rejected or that some other course of action be taken. The process for appeals shall be as follows. The Appeal Panel shall be established and convened as soon as possible after receipt of the request for review from the appellant. The appellant shall be informed of the nominated composition of the Appeal Panel within a reasonable time prior to the hearing of the appeal. 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 6 of 9

Assessment and Appeal Processes The appellant may then object, in writing to the Registrar, the nominee from the Panel of Private Sector Representatives. No reason need be given for the objection. On receipt of an objection the Registrar shall appoint another member from the Panel of Private Sector Representatives in lieu of the original nominee with no further right of objection. The Appeal Panel shall conduct a review of the decision of the Assessment Panel and consider evidence and submissions which the appellant may wish to place before it. The Appeal Panel may seek information from other parties in relation to the Assessment Panel s decision or any matter arising as part of the appeal. The Appeal Panel will recommend to the Chief Executive that the appeal be upheld or rejected or that some other course of action be taken. The review conducted by the Appeal Panel shall be limited to a review of the decision of the Assessment Panel. Where the reasons for the recommendation of the Assessment Panel are based wholly or in part upon an adverse opinion as to the appellant s financial capacity, the Registrar shall appoint an independent financial consultant, (who will be different from any other used in relation to the Appellant), who shall: - carry out a financial analysis as detailed in the Financial Capacity Analysis Procedures documents for contractors - provide an opinion to the Appeal Panel. 1 The Appeal Panel may seek assistance from third parties. The Appeal Panel may seek additional information from the appellant or may invite the appellant to meet with the Panel. With agreement of the Appeal Panel, the appellant may be present and/or represented at the appeal hearing. The DPTI Chief Executive will make a decision based on the recommendation of the Appeal Panel and the decision will be final. The Registrar shall advise the appellant in writing of a decision of the Chief Executive and the reasons for it within fourteen (14) days of the decision being reached. An appellant whose appeal has been rejected may not reapply for reinstatement or registration within six (6) months of the determination of the appeal, or within such time as may be specified by the Chief Executive. Panel of Private Sector Representatives DPTI has established a Panel of Private Sector Representatives to participate as members in Assessment and Appeal Panels. Membership of the Panel shall be drawn from private sector building and construction associations, organisations and individuals and will comprise approximately 20 individuals. Remuneration for private sector representatives will be on the basis of an hourly rate for the number of hours served on Assessment or Appeal Panels including travelling time and travelling costs. The hourly rate will be as advised by the Commissioner for Public Employment from time to time. 1 Applicable to General Building Contractor, Residential Building Contractor and Trade/Sub Contactor Categories 1-4 only. 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 7 of 9

Assessment and Appeal Processes Nomination for Panel of Private Sector Representatives From time to time nominations may be called for individuals to be part of a panel of private sector representatives who will participate in Assessment and Appeals Panels convened under the DPTI Building and Construction Project Prequalification System. Nominations may be accepted from individuals, businesses, associations or association employees in the building and construction industry in South Australia. Nominees should have at least five years experience in the building and construction industry and also experience as a member of selection panels or similar processes. Information to be Submitted with a Nomination Nominees should provide four copies of the nomination, one of which should be unbound, containing the following information. Recent relevant building and construction industry experience. Recent relevant experience on panels. Endorsement by the nominated party in the case of nomination by a second party. Any other information which may assist in consideration of the nomination. Nominations will not necessarily be accepted. Selection Criteria and Process The selection of nominees for the Panel of Private Sector Representatives will be based on the following criteria. Experience in the building and construction industry. Relevant experience on selection panels or similar. The selection of nominees for the Panel will be undertaken by a selection panel consisting of: Executive Director, Building Management, DPTI Manager Building Contracts, DPTI Registrar. The selection panel will recommend panel membership to the DPTI Chief Executive based on the information submitted. Panel Management The Registrar will provide an executive service to the Panel of Private Sector Representatives and will be responsible for managing all of the activities associated with that panel including: the calling of nominations for membership receiving nominations for membership arranging the assessment of nominees by a selection panel forwarding the recommendations of the selection panel to the DPTI Chief Executive, for appointment of members to the Panel of Private Sector Representatives advising nominees of their appointment or otherwise providing briefing to appointed members on their role and the DPTI Building and Construction Project Prequalification System 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 8 of 9

Assessment and Appeal Processes managing objections by appellants to the nomination of a specific member to an Appeal Panel managing the remuneration of panel members. Members of the Panel of Private Sector Representatives will be appointed to Assessment or Appeals Panels on a rotational basis. Appointment to either panel will not be made on the basis of the private sector member s trade or discipline background nor will it take into account the trade or discipline of the applicants or appellants. Members have the right to refuse an appointment; however an excessive number of refusals may result in a review of panel membership, in conjunction with the member and the DPTI Chief Executive or nominee. Assessment Panels will generally be convened monthly and Appeal Panels are convened on an as required basis. Panel meetings have a maximum duration of three (3) hours. Data Base Confidentiality A database will be maintained containing information supplied by applicants at the time of application for registration or renewal or variation thereof, and other information relating to each applicant or registrant that may be obtained by the Registrar. All data (other than financial information and statements) will be made available to members of an Assessment Panel or Appeal Panel but only at the time of, and for the purpose of, consideration of an application for or review of registration or appeal. Members of the Assessment Panel and Appeal Panel will not retain in written form any data or information supplied to them in the exercise of their functions. All information shall be returned to the Registrar. Members of the Panels shall not divulge any of the information or data to any person. Information to be made available to persons outside DPTI in respect of any registrant will be restricted to the name, contact information, performance scores and registration type and category of registrants. Except as herein provided, all data, the application form, all other information and documents supplied by an applicant, and all information gathered by the Registrar shall be kept confidential. Contact For more information contact: Registrar DPTI Building and Construction Project Prequalification System Contracting and Procurement Department of Planning, Transport and Infrastructure Phone: 8343 2042 Email: CSDPrequal@sa.gov.au 04 assessment and appeal processes 2012 po19 v2-2.doc Updated in August 2013 Page 9 of 9