Tendering Process and Procedures

111. BGAs must approve all tendering procedures used by the schools. The procedures should be in line with sound tendering practices and support the principle of value for money. Tendering processes used by schools and by those submitting offers must be based on sound building industry practice in accordance with the Australian Standard Code of Tendering – AS4120, available from http://www.saiglobal.com.

112. Any potential conflict of interest in the tendering process should be disclosed by the school to the BGA. The BGA member school, with the possible assistance of the BGA, must then ensure that the conflict is resolved with written advice provided to the BGA on the nature of the conflict and how it has been resolved.

113. Where a person or body believes a tendering procedure approved by the BGA is unfair or inconsistent with sound tendering practice the BGA must provide that person or body with an opportunity to explain why it objects to the procedure approved, and the BGA must explain the reasons for the BGA's approval of the process.

114. BGAs must ensure schools obtain value for money from a tender process and not just the lowest price offered. Schools must assess all tender submissions for eligibility, adherence to applicable policies, quality assurance, capability and capacity of offers and ensuring value for money is achieved. Schools must document their assessment methodology, selection criteria and recommended outcome for each tender submission and seek appropriate approvals.

115. Schools must not accept tenders, nor enter into commitments in relation to recommended projects, until advised by the BGA of the formal approval of the CGP project and their agreement with the BGA has been finalised.

116. The Commonwealth does not accept any liability for costs incurred by schools in preparing applications, tenders or the development of project plans. In special circumstances BGAs may apply to the Department for special consideration for payment of such costs from BGA allocations.

117. As outlined in the Australian Standard –Code of Tendering, the Principal or the person calling for tender, can negotiate with a single prospective Tenderer to achieve an acceptable tender. Negotiations should be carried out in good faith.

118. BGAs must require and ensure schools implement projects in accordance with the requirements contained in the Building Code 2016

(www.abcc.gov.au/building-code-2016) and the Australian Government Building and Construction OHS Accreditation Scheme:

(www.fsc.gov.au/sites/fsc/needaccredited/accreditationscheme/pages/theaccreditationscheme).

Employment and Training Provisions for Aboriginal and Torres Strait Islanders

119. Grants are offered on the additional condition that the school will encourage the employment and training of Aboriginal and Torres Strait Islanders.

120. Where a project is to be undertaken specifically for an Indigenous Australian community, at least one member of that community is to be involved in the evaluation of tenders, except where a conflict of interests would arise.

Checklist for Tendering Principles

121. The principles contained in the checklist include:

a) Project implementation must be overseen by a licensed building industry professional who is independent of those carrying out the work.

b) Schools should not be prevented from having direct access to professional advice (consultants), independently of the builder or project manager, about the implications of design, materials and construction decisions.

c) There should be effective competition to the greatest extent practicable for all major elements of a project. Being fair and equitable to the market and achieving greater value for money.

d) Procurement processes used by schools and by those submitting offers should be based on sound building industry practice in accordance with the Australian Standard Code of Tendering. Schools must advise the BGA of the tender method used for each tender process.

e) All tender assessment criteria must be specified in tender documentation and should include tenderers' capability and capacity, financial and technical capacity to carry out the work.

f) There must be signed written contracts for the engagement of all major parties. It would be expected that these contracts would be based on standard industry contracts, and the contracts must clearly state the responsibilities and liabilities of the parties to the contract.

g) The contract between a school and the independent professional overseeing the implementation of a project must include a condition that the person overseeing the project must monitor the performance of all subcontracts for the project on behalf of the school to ensure the work is undertaken in accordance with the terms and conditions of those contracts.

h) A reasonable project end date must be estimated.

i) Claims for payment must be certified by a licensed building industry professional who is independent of the client (including any school/ school community personnel) and the builder.

j) BGAs should keep records of the tender methods utilised for each project tender. These records may be required by the Department, if for example, the BGA assigns rights to the Department. BGAs should contact the Capital Funding Team in relation to any uncertainty or issues regarding tendering.

Practical Checklist for Tendering Requirements

122. Have you:

a) Clearly documented the need for the tender in a business case?

b) Undertaken a risk assessment and document in a risk plan?

c) Researched the market and decided on the most appropriate procurement method?

d) Outlined the timeline for the project noting all the required steps?

e) Clearly detailed the relevant conditions for participation and not excluded potential tenderers unfairly in doing so?

f) Drafted a request to market the document (including the draft contract) that clearly articulates what you need and has all necessary standard terms and conditions?

g) Developed a written Statement of Requirement's for the work that is unambiguous in its requirements?

h) Have you complied with the Building Code 2016 and the Australian Government Building and Construction OHS?

Prior to starting

Have you:

a) Considered the involvement of the Indigenous Australian community as part of the evaluation of tenders if the project is primarily for the benefit of the Indigenous community and addressed in your evaluation plan?

b) Encouraged the employment and training opportunities of Aboriginal and Torres Strait Islanders in the project in some way? Reiteration of the need to encourage this in any project to improve opportunities for indigenous workers.

c) Provided evaluation criteria robust enough to provide a clear guide for assessment and comparison of the costs and benefits of all submissions on a fair and equitable basis over the whole tender life cycle?

d) Asked for sufficient detail from the tenderer on tender assessment criteria to ensure the tenderers, technical and financial capacity and capability to carry out the work?

e) Ensured that your tender delivers value for money over the life of the project?

f) Ensured that your tender does not unfairly discriminate against small and medium enterprises (SMEs)? SMEs are organisations with fewer than 200 full time employees.

g) All tender documentation provides an understanding of the reasons for the tender, the process that was followed and all relevant decisions, including approvals and authorisations, and the basis of those decisions.

h) Documented any plan for contract negotiations?

Conduct of the Process

124. The following should be attended to.

a) Do you have a contract management plan?

b) Do you have clearly defined key performance indicators (KPIs)?

c) Have you provided the opportunity to debrief unsuccessful tenderers?

d) Is a written contract signed with the supplier on file?

e) Do you have a verification processes in place to confirm that subcontractors, consultants and material suppliers􀉉 workplace arrangements comply with the Code and Guidelines? Part of the contract KPIs and your contract management.

f) Do you have processes in place to monitor on-site compliance of subcontractors engaged during the life of the project? As part of the contract KPIs and your contract management.

g) Do you have a process for the retention of the documentation for a period of 7 years? Is this stated in your contract.

Tendering Processes and Procedures

An outline of the tendering process, The employment and training of Aboriginal workers, A checklist of tendering principals with a practical list for tendering requirements before and during and after construction