BUILDERS PREQUALIFICATION SCHEME
VERSION 3.1 – 8 April 2014
TABLE OF CONTENTS
1
INTRODUCTION ...................................................................................................................1
2
PREQUALIFICATION ...........................................................................................................2
3
BUSINESS RISK ASSESSMENT .........................................................................................9
4
HOW TO APPLY TO BECOME PREQUALIFIED ...............................................................10
5
HOW TO APPLY TO RENEW, UPGRADE OR DOWNGRADE PREQUALIFICATION ......11
6
APPEALS ...........................................................................................................................12
7
CANCELLATION/SUSPENSION OF PREQUALIFICATION OR CHANGE OF
PREQUALIFICATION LEVEL OR TECHNICAL CATEGORY .......................................................13
APPENDIX A – EXAMPLES OF THE CLASSIFICATION OF COMMON BUILDINGS BY
COMPLEXITY ................................................................................................................................14
APPENDIX B – BUSINESS RISK ASSESSMENTS ......................................................................15
APPENDIX C - INFORMATION REQUIREMENTS FOR APPLICATIONS FOR
PREQUALIFICATION AND PREQUALIFICATION RENEWAL .....................................................18
APPENDIX D - FINANCIAL INFORMATION REQUIREMENTS ....................................................19
APPENDIX E - PRINCIPLES OF RESPONSIBLE BUILDING CONTRACTOR PRACTICE ..........21
APPENDIX F – (APPLICATION PACK) BUILDERS PREQUALIFICATION SCHEME .................26
APPLICATION STATUS .....................................................................................................30
BUSINESS PROFILE ..........................................................................................................31
BANK DETAILS ..................................................................................................................33
NAMES OF MAJOR TRADE CREDITORS .........................................................................33
CORPORATE EXPERIENCE ..............................................................................................33
COPYRIGHT
Copyright in this document is reserved to the Crown in the right of the State of Western Australia.
Reproduction except in accordance with copyright law with the consent of the Director General for the
Department of Finance or the Attorney General is prohibited.
ENQUIRIES
Any enquiries or suggestions relating to the subject matter contained in this document can be directed to:
BMW’s Contractor Prequalification Unit
Phone Number:
Email:
(08) 6551 1795
builders.prequalification@finance.wa.gov.au
Postal Address:
Contractor Prequalification Unit, Policy and Practice Division
Building Management & Works
Department of Finance
Locked Bag 44
CLOISTERS SQUARE WA 6850
1
INTRODUCTION
1.1
The Department of Finance’s Building Management and Works (BMW) has developed
the Builders Prequalification Scheme (the Scheme) to minimise the risk of entering into
contracts with building contractors who do not have sufficient capability and capacity.
1.2
The Scheme is typically used for BMW contracts valued at greater than $300 000
(including GST) that in BMW’s judgement require a registered builder and that
primarily relate to the construction, alteration or addition of a building. BMW reserves
the right to not apply the Scheme to such projects.
1.3
The Scheme generally does not apply to contracts for residential buildings, civil works,
building service upgrades, office fit-outs or ‘single trade’ contracts.
1.4
While the Scheme is intended primarily for construct-only contracts for non-residential
buildings including alterations and additions, BMW at its sole discretion will decide how
to utilise the Scheme for other forms of procurement and other types of construction
work.
1.5
BMW’s objectives for the Scheme are to:
1.6
(a)
remain an informed and responsible client of the building and construction
industry;
(b)
achieve consistency, fairness and transparency of its tendering and selection
processes;
(c)
reduce the cost of tendering and tender assessment for both industry and
Government; and
(d)
encourage high standards and continuous improvement that will contribute to a
sustainable building and construction industry in Western Australia.
Definitions
(a)
BMW is the Department of Finance’s Building Management and Works
(b)
Key Operational Employee is defined as an employee, as defined under
Taxation Ruling TR 2005/D3, that is directly involved in the day to day
construction activities of the applicant or that is a Director, Partner or the like that
has legal responsibility for the operation of the applicant.
(c)
Other Permanent Operational Office is defined as an office/establishment that
is remote from the applicant/prequalified building contractor’s Principal
Permanent Operational Office. This may be an office in another State or
Territory or in a regional town in Western Australia and will require the same
demonstration of permanency as for the Principal Permanent Operational Office.
(d)
Prequalified Building Contractor is defined as the legal entity (an individual, a
company, partnership or joint venture) that has satisfied the requirements for
prequalification under the Scheme and holds a current Certificate of
Prequalification detailing the level of prequalification granted and any conditions
that have been applied.
(e)
Principal Permanent Operational Office is defined as that Australian office
from which the normal construction business of the applicant/prequalified building
contractor is carried out.
(i)
BMW may request that the applicant demonstrate the permanency of the
office. In doing so BMW may, and without limiting itself to the following,
take into consideration whether the office:
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
(ii)
is a permanent fixed establishment (not a post office box or temporary
facility such as a site office or caravan); and
(iii)
has been operational in the zone, as defined by the Buy Local Policy, and
active in the local building and construction industry for a period of not less
than 6 months prior to tenders being advertised.
(f)
Regional Building Contractor is defined as an applicant/prequalified building
contractor whose Principal Permanent Operational Office is within regional Zone
2 or 3 as defined under the Buy Local Policy. Refer to the State Government’s
Buy Local Policy for definitions of the regional zones and the prescribed
distances within each regional zone. Your local regional Finance office will be
able to assist by providing ‘view only’ copies of the Buy Local Policy and by
advising where you can obtain your own copy.
(g)
Scheme is defined as BMW’s Builders Prequalification Scheme. The Scheme is
described in this document and referenced supporting documentation.
(h)
Bankruptcy Event includes where the contractor:
(i)
(i)
is the subject of a bankruptcy petition; or
(ii)
is made bankrupt; or
(iii)
has had a deed of assignment or deed of arrangement made, accepted a
composition, been required to present a debtor’s petition or had a
sequestration order made under Part X of the Bankruptcy Act 1996 (Cth).
Insolvency Event includes any of the following:
(i)
a corporation has stated that they are unable to pay their debts when they
fall due; or
(ii)
a corporation has had an execution levied against them by a creditor; or
(iii)
notice is given of a meeting of creditors with a view to the corporation
entering a deed of company arrangement; or
(iv)
the corporation enters a deed of company arrangement with creditors; or
(v)
an external controller or an external administrator is appointed; or
(vi)
an application is made to a court for the corporation’s winding up; or
(vii) a winding up order is made in respect of the corporation; or
(viii) the corporation resolves by special resolution that it be wound up
voluntarily (other than a members' voluntary winding up), or
(ix)
a mortgagee of any of the corporation's property takes possession of that
property.
2
PREQUALIFICATION
2.1
General
(a)
Applicants and prequalified building contractors must comply with the
requirements of the Builders Prequalification Scheme and related and/or
referenced documents.
(b)
Prequalification identifies well-credentialed building contractors that passed
financial and technical capacity checks by BMW, and are considered appropriate
to undertake works for BMW.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
(c)
BMW will decide the level of prequalification assigned to any building contractor
at its sole discretion.
(d)
Wherever necessary, BMW’s tender documents will specify a prequalification
level for the particular contract. BMW at its sole discretion will select the
prequalification level it deems appropriate for a contract.
(e)
Building contractors prequalified at or above the level specified in the tender
documents will be eligible to tender. Except as described in paragraph 2.7 for
regional building contracts, the building contractor’s prequalification level is that
which exists on the date at which a tender is first advertised on Tenders WA for
either tender, registration of interest or expression of interest.
(f)
Being prequalified provides no guarantee of a building contractor being awarded
any contracts.
(g)
BMW may change the Scheme at any time and in any way. If BMW intends to
change the Scheme it will notify building contractors prequalified at the time.
(h)
A prequalified building contractor must notify BMW of any changes to material
information relevant to its prequalification status.
(i)
BMW reserves the right at its absolute discretion to review, upgrade, downgrade,
suspend or cancel a building contractor’s prequalification or reject or suspend an
application for prequalification at any time for any reason. This includes, but is
not limited to, where a prequalified building contractor or applicant:
(j)
(k)
(i)
does not comply with the requirements of the Scheme;
(ii)
fails to provide the information required in this document, related
documents or information requested by BMW in relation to the Scheme,
within the time nominated;
(iii)
experiences a change in its project performance, personnel, standing, or
financial or technical capacity; or
(iv)
is found to have breached any Australian Securities and Investment
Commission (ASIC) or other legislative requirements.
BMW may decline, cancel or suspend the prequalification of any building
contractor which, within the period of three years immediately preceding the date
of the application, has:
(i)
experienced a bankruptcy or insolvency event as defined in this document;
or
(ii)
has, as a Director or key personnel, a person who has experienced a
bankruptcy or insolvency event within the period of three years immediately
preceding the date of the application.
BMW may decline, cancel or suspend the prequalification of any building
contractor that is:
(i)
a discharged bankrupt; or
(ii)
a deregistered builder, or has been deregistered in the preceding five
years; or
(iii)
subject to adverse findings by any board, commission, licensing authority,
Government Department, court, tribunal or other entity of any kind.
The above may also be applied to persons who control or who have a significant
managerial role with the building contractor.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
(l)
The Scheme does not affect any statutory obligations under the Building
Services (Registration) Act 2011 (WA). A building contractor must comply with
the Act and all other statutory obligations when tendering and contracting for
building works
(m) Where subcontracts exist between the building contractor and subcontractors,
including nominated and selected subcontractors, prequalification does not alter
the privity of contract between the building contractor and the subcontractor and
does not impose any express or implied legal obligation of any nature
whatsoever in contract or by any other means on the part of the principal to the
subcontractor.
2.2
Prequalification Levels and Limitations
(a)
Prequalification can be achieved in levels 1 to 5 as shown in Table 1 overleaf.
Prequalification takes into account both financial thresholds and technical
complexity.
(b)
Prequalification will be set at one of three technical categories relating to the
complexity of work which may be undertaken by the building contractor:
(i) Simple, which is applicable to financial levels 1 and 2 only;
(ii) Conventional, which is applicable to financial levels 1-4; and
(iii) Complex, which is applicable to financial levels 1-5.
Examples of the types of buildings considered Simple, Conventional and
Complex are set out in Appendix A.
(c)
(d)
BMW may set conditions on a building contractor’s prequalification status.
Building contractors must ensure at the time of tender that a tender is compliant
with all prequalification conditions. BMW may not consider a tender where the
building contractor is found to not comply with the conditions of its
prequalification. Examples of the conditions placed upon a building contractor’s
prequalification may include:
(i)
Prequalification level;
(ii)
Technical complexity;
(iii)
Project type;
(iv)
Maximum contract value; and
(v)
Maximum Aggregate Contract Value.
Building contractors that are prequalified at a technical category other than
Complex may tender for contracts in the financial level immediately below their
approved level, that are of a higher technical category. For example, a building
contractor prequalified at Level 3 Conventional may also tender for a contract
tendered at Level 2 Complex. This enables the prequalified building contractor to
obtain experience at a higher technical level.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Table 1. Prequalification levels and limitations
Technical Levels
Financial Levels
LEVEL 1
From
$300,000
up to
$1,500,000
LEVEL 2
From
$1,500,001
up to
$3,000,000
LEVEL 3
From
$3,000,001
up to
$6,000,000
LEVEL 4
From
$6,000,001
up to
$15,000,000
LEVEL 5
From
$15,000,001
up to
$50,000,000
COMPLEX
COMPLEX
COMPLEX
COMPLEX
COMPLEX
CONVENTIONAL
CONVENTIONAL
CONVENTIONAL
CONVENTIONAL
SIMPLE
SIMPLE
Note: All dollar thresholds are in Perth prices, inclusive of GST.
2.3
General Criteria for all levels
(a)
2.4
To be prequalified at any level, the applicant must:
(i)
be a registered builder with the Building Commission of WA; and
(ii)
demonstrate that it is a building contractor of good standing in the building
and construction industry, as evidenced by items such as good build
quality; adherence to payment terms with subcontractors; and reasonable
commercial dealings with clients. These things are collectively described as
‘Principles of Responsible Building Contractor Practice’.
Specific Criteria for each Level
(a)
(b)
To be prequalified at Level 1, the applicant must demonstrate to the satisfaction
of BMW that it meets the general criteria described in paragraph 2.3 and has:
(i)
ongoing experience in contracting for general building works. Required to
demonstrate completion of a minimum of one residential, commercial or
industrial project in the last 36 months valued at more than $300 000 and
(at Perth prices inclusive of GST).This project must be at the technical level
applied for; and
(ii)
been subject to a business risk assessment that has assessed the building
contractor’s financial capacity to contract for building works up to
$1 500 000 (at Perth prices inclusive of GST) and has concluded the
building contractor is “low risk” or “medium risk”.
To be prequalified at Level 2, the applicant must demonstrate to the satisfaction
of BMW that it meets the general criteria described in paragraph 2.3 and has:
(i)
ongoing experience in contracting for commercial and/or industrial building
works. Required to demonstrate completion of a minimum of one
commercial or industrial project in the last 36 months valued at more than
$1 500 000 (at Perth prices inclusive of GST).This project must be at the
technical level applied for; and
(ii)
been subject to a business risk assessment that has assessed the building
contractor’s financial capacity to contract for building works up to
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
$3 000 000 (at Perth prices inclusive of GST) and has concluded the
building contractor is “low risk” or “medium risk”.
(c)
To be prequalified at Level 3, the applicant must demonstrate to the satisfaction
of BMW that it meets the general criteria described in paragraph 2.3 and has:
(i)
ongoing experience in contracting for commercial and/or industrial building
works. Required to demonstrate completion of a minimum of two
commercial or industrial projects in the last 36 months valued at more than
$3 000 000 (at Perth prices inclusive of GST). Both of these projects must
be at the technical level applied for; and
(ii)
been subject to a business risk assessment that has assessed the building
contractor’s financial capacity to contract for building works up to
$6 000 000 (at Perth prices inclusive of GST) and has concluded the
building contractor is “low risk” or “medium risk”; and
(iii)
an evident commitment to the Principles of Responsible Building Contractor
Practice in the following areas:
1. Client Satisfaction;
2. Human Resource Management;
3. Continuous Improvement;
4. Quality Management
5. Occupational Safety and Health Management
6. Environmental Management.
(d)
To be prequalified at Level 4, the applicant must demonstrate to the satisfaction
of BMW that it meets the general criteria described in paragraph 2.3 and has:
(i)
ongoing experience in contracting for commercial and/or industrial building
works.
Required to demonstrate completion of a minimum of two
commercial or industrial projects in the last 36 months valued at more than
$6 000 000 (at Perth prices inclusive of GST). Both of these projects must
be at the technical level applied for; and
(ii)
been subject to a business risk assessment that has assessed the building
contractor’s financial capacity to contract for building works up to
$15 000 000 (at Perth prices inclusive of GST) and has concluded the
building contractor is “low risk” or “medium risk”; and
(iii)
an evident commitment to the Principles of Responsible Building Contractor
Practice in the following areas:
1. Client Satisfaction;
2. Human Resource Management;
3. Continuous Improvement;
4. Quality Management;
5. Occupational Safety and Health Management; and
6. Environmental Management.
(e)
To be prequalified at Level 5, the applicant must demonstrate to the satisfaction
of BMW that it meets the general criteria described in paragraph 2.3 and has:
(i)
ongoing experience in contracting for commercial and/or industrial building
works. Required to demonstrate completion of a minimum of two
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
commercial or industrial projects in the last 36 months valued at more than
$15 000 000 (at Perth prices inclusive of GST). Both of these projects must
be at the technical level applied for; and
(ii)
been subject to a business risk assessment that has assessed the building
contractor’s financial capacity to contract for building works up to
$50 000 000 (at Perth prices inclusive of GST) and has concluded the
building contractor is “low risk” or “medium risk”; and
(iii)
an evident commitment to the Principles of Responsible Building Contractor
Practice in the following areas:
1. Client Satisfaction;
2. Human Resource Management;
3. Continuous Improvement;
4. Quality Management;
5. Occupational Safety and Health Management; and
6. Environmental Management.
2.5
(f)
When assessing regional building contractors BMW reserves the right to take
into account projects that have been completed more than 36 months previously.
(g)
For projects valued at over $50 000 000 (at Perth prices inclusive of GST), BMW
will generally require building contractors to be prequalified under the National
Prequalification System, which is administered in accordance with the
Australasian Procurement and Construction Council (‘APCC’) System. Details
can be found at www.apcc.gov.au
(h)
Contractors who have experienced a change in their legal status since their last
prequalification assessment and are therefore unable to demonstrate completion
of the required number of projects, may make application to BMW to have
experience gained by their previous entity taken into account in the assessment
of their technical capacity.
Term of Prequalification
(a)
Unless otherwise advised by BMW prequalification expires 12 months from the
date that it was granted.
It is the responsibility of the prequalified building contractor to initiate the renewal
process (see section 5). BMW may notify a prequalified building contractor
before the date of expiry that its prequalification is soon to expire, and invite the
building contractor to renew its prequalification in accordance with section 5.
(b)
2.6
Renewals will generally be granted for 12 months. A building contractor can be
prequalified for a total of three years in total before it needs to submit an entirely
new application. In lieu of submitting a renewal application on the third
anniversary of their prequalification, the building contractor will be required to
submit a full application as described in section 4.
Spot checks
(a)
BMW reserves the right to conduct random spot checks on building contractor’s
subcontractor payment performance or financial health in addition to the normal
prequalification renewal requirements. As a condition of prequalification, a
building contractor must comply with any request from BMW to review a building
contractor’s subcontractor and supplier payment records.
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(b)
2.7
BMW may suspend or cancel the prequalification of the building contractor if it is
not satisfactorily managing payments to subcontractor or suppliers in a timely
fashion.
Regional Project Specific Upgrade Program
(a)
The Regional Project Specific Upgrade Program is designed to increase the
opportunities for regional building contractors to be considered for BMW
contracts. It recognises that it may be difficult for building contractors located
outside the Perth metropolitan area to meet the technical requirements defined in
the Scheme.
(b)
Prequalified building contractors whose Principal Permanent Operational Office
is within regional zone 2 or 3, as defined in the State Government’s Buy Local
Policy (‘regional building contractors’), may seek approval to tender for a specific
BMW contract in the regional zone that is within the prescribed distance of the
prequalified building contractor’s Principal Permanent Operational Office (as
defined in the State Government’s Buy Local Policy), in the financial level
immediately above their approved financial level.
(c)
Regional building contractors who are not prequalified with BMW may also seek
approval to tender for specific BMW contracts within the prescribed distance of
the regional building contractor’s Principal Permanent Operational Office as
defined in the State Government’s Buy Local Policy that require a level 1
prequalification status. A non-prequalified regional building contractor will not be
granted approval to tender on projects that require prequalification at levels 2-5.
(d)
Where a regional building contractor is requesting a project specific upgrade it
must obtain BMW’s approval to that request prior to submitting its tender, or that
tender will not be considered. Such requests must be made by submitting a
completed ‘Regional Project Specific Upgrade Program Application Form’ to the
relevant BMW Project Manager whose details are listed on the Tenders WA
website. This form can be downloaded from BMW’s internet site.
(e)
Approval of the request is at the absolute discretion of BMW and will be
dependent upon the regional building contractor’s demonstrated experience, the
particular circumstances prevailing at the time, the value and relative complexity
of the contract and the nature of the works within the contract.
(f)
Where approval is granted the regional building contractor will be subject to a
business risk assessment if it is being considered for contract award. This
business risk assessment will be conducted in accordance with section 3.
(g)
It is the responsibility of the regional building contractor to submit its application
to the relevant BMW Project Manager in sufficient time to allow the project
specific upgrade to be assessed and then for the regional building contractor to
submit its tender. The regional building contractor must allow at least five working
days for BMW to assess its application. A failure to allow sufficient time between
submission of the application and the tender closing time will generally not be
grounds for the tender period to be extended.
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2.8
At various stages during a contract, BMW will complete a Contractor Performance
Report for the sole use of BMW in respect to all aspects of a building contractor’s
performance. The frequency of the reports may vary but will generally be at least once
during the period of the contract and at Practical Completion. These performance
reports will be used by BMW in consideration of the prequalified building contractor’s
level of prequalification under the Scheme and in future tendering and contracting
opportunities with BMW
2.9
Weighted Evaluations
For all applications assessed since 1 January 2014, BMW will allocate prequalified
contractors a score based on a weighted evaluation of information contained within
their prequalification application.
As a result, by 31 December 2014 all prequalified contractors will have a score
(between 1 and 100) indicating their relative merit in respect of four primary
prequalification assessment criteria and three secondary prequalification assessment
criteria.
Each of the following four primary criteria must be passed individually. Failure to meet
each one of these requirements will result in an automatic fail and prequalification will
generally be declined. The four primary criteria are:

satisfactory outcome of the business risk assessment,

satisfactory contractor trading history,

satisfactory completion of the required number of projects at financial level
and

satisfactory completion of the required number of projects at technical
complexity level.
The three secondary criteria include:

assessment of performance references,

adequacy of contractors organisational structure and

the qualifications and experience of staff.
A failure to pass the secondary criteria individually will not lead to the applicant’s
prequalification application being denied in and of itself. However, if an applicant fails
to meet the minimum requirements of this secondary category as a whole, then the
application for prequalification will generally be declined.
Using this model, it will be possible for BMW to broadly differentiate between the
relative competency of prequalified contractors within the same financial and technical
prequalification category.
3
BUSINESS RISK ASSESSMENT
3.1
BMW will assess the financial viability and capacity of building contractors through
conducting a business risk assessment. A business risk assessment is a due diligence
process to ascertain the degree to which BMW would be exposed to financial and
other risks by either:
(a)
entering into a particular contract with a particular building contractor, or
(b)
prequalifying a particular building contractor at a particular level.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
3.2
BMW will initiate a business risk assessment whenever it deems it necessary,
including:
(a)
at the time of application for prequalification;
(b)
at time of prequalification renewal;
(c)
on preferred tenderers where there has not been a recent business risk
assessment; and/or
(d)
at the discretion of BMW.
3.3
BMW reserves the right to obtain business risk assessment reports from third parties.
3.4
Applicants/prequalified building contractors that receive a business risk assessment of
high risk will generally be declined prequalification and will generally not be awarded a
contract.
3.5
Applicants/prequalified building contractors that fail to meet the minimum financial
ratios determined by BMW may be assessed as “medium risk” if risk mitigation
strategies prescribed by BMW are implemented (see Appendix B for further
information).
3.6
For the purposes of business risk assessments, certain assets and liabilities have
been determined as being disallowed as they cannot be relied upon for the purpose of
supporting the entity in the event of default of the company. These assets and
liabilities include:
(a)
all intangible and contingent assets;
(b)
all shareholder loans, related entity loans and related entity investments,
including unpaid beneficiary entitlements.
3.7
A detailed explanation of how business risk assessments are undertaken is provided
in Appendix B of this document. For further advice on the information required to
inform a business risk assessment, refer to Appendices C and D.
4
HOW TO APPLY TO BECOME PREQUALIFIED
4.1
A building contractor applying to become prequalified must submit a complete
application using the forms and templates included at Appendix F. Appendices C, D
and E describe in detail the information to be submitted by the building contractor at
the time of application:
APPENDIX C - Information required at prequalification application and prequalification
renewal
APPENDIX D - Financial information requirements
APPENDIX E - Principles of Responsible Building Contractor Practice
Upon receipt of a prequalification application BMW will undertake a business risk
assessment in accordance with section 3. The application will be assessed on its
merits and in light of other information available. BMW will respond in one of the
following ways:
(a)
If an application is incomplete, BMW will respond by returning the application
identifying the missing information;
(b)
If an application is complete and sufficiently demonstrates the building
contractor’s credentials for the prequalification level being sought, BMW will
respond by granting the prequalification at that level;
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
(c)
If an application is complete but does not sufficiently demonstrate the building
contractor’s credentials for the prequalification level being sought, BMW will
respond by either:
(i)
placing conditions upon the building contractor’s prequalification that relate
to the value or complexity of projects that the building contractor may be
awarded; or
(ii)
declining the application for prequalification.
4.2
If its application has been declined, the building contractor may re-apply for
prequalification in accordance with clause 4.1, but not more than twice in a twelve
month period.
4.3
Building contractors may appeal a decision by BMW in accordance with section 6.
4.4
Until the applicant is advised in writing of the outcome of the assessment, the building
contractor is not prequalified.
5
HOW TO APPLY TO RENEW, UPGRADE OR DOWNGRADE PREQUALIFICATION
5.1
A building contractor currently prequalified with BMW or which is suspended under
paragraph 5.5, can apply to renew, upgrade or downgrade its prequalification by
submitting to BMW a complete submission in accordance with the forms and templates
included at Appendix F. Appendices C & D describe in detail the information to be
submitted by the building contractor at the time of application renewal:
APPENDIX C - Information required at prequalification application and prequalification
renewal
APPENDIX D - Financial information requirements
5.2
It is important to note that the information that is required at renewal is different to that
which is required at the time of an initial application.
5.3
Upon receipt of a renewal, upgrade or downgrade application BMW will undertake a
business risk assessment in accordance with section 3. The application will be
assessed on its merits and in light of other information available. BMW will respond in
one of the following ways:
(a)
If an application is incomplete, BMW will respond by returning the application
identifying the missing information.
(b)
If an application is complete and sufficiently demonstrates the building
contractor’s credentials for the prequalification level being sought, BMW will
respond by granting the renewal, upgrade or downgrade request.
(c)
If an application is complete but does not sufficiently demonstrate the building
contractor’s case for the renewal, upgrade or downgrade then BMW will respond
by either:
(i)
placing conditions upon the building contractor’s prequalification that relate
to the value or complexity of projects that the building contractor may be
awarded; or
(ii)
declining the application.
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5.4
If an application has been declined, the building contractor may apply for
prequalification in accordance with section 4, but not more than twice in a twelve
month period.
5.5
If a building contractor fails to lodge an application to renew its prequalification, its
prequalification will expire and they will be suspended. If the building contractor fails to
lodge a renewal application within 6 months of the expiry date, its prequalification will
be cancelled.
5.6
Building contractors may appeal BMW’s decision in accordance with section 6.
5.7
Until the applicant is advised in writing of the outcome of the assessment, the building
contractor’s prequalification status shall be determined in accordance with clause
2.1(e).
5.8
Building contractors must submit applications to renew their prequalification a
minimum of four weeks in advance of their prequalification expiry date. If BMW’s
assessment of the renewal is not completed prior to prequalification expiry due to a
late submission by the contractor then the building contractors prequalification will,
unless determined otherwise by BMW, expire at their expiry date and the contractor
will be suspended. In that situation, prequalification will not be reinstated until BMW’s
assessment is complete and builders will be unable to lodge tender bids during the
period their prequalification has expired.
6
APPEALS
6.1
Applicants or prequalified building contractors that are dissatisfied with decisions made
under the Scheme may choose to appeal the decision. The appeals process does not
apply to the conclusions reached in a business risk assessment carried out as part of a
tender assessment or to decisions made in relation to the Regional Project Specific
Upgrade Program.
6.2
There are three possible grounds for an appeal:
(a)
that the process followed to assess the application and/or make the decision was
not carried out in the way prescribed by BMW;
(b)
that there were errors in any of the calculations used to assess the building
contractor’s financial capacity; or
(c)
that BMW failed to consider information that was included as part of the original
application.
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6.3
Appeals must be in writing and addressed to the Manager, Contractor Prequalification
Unit. Appeals are to be made within 15 working days of the building contractor
receiving the notice advising it of BMW’s decision. The building contractor may not
submit information that was not submitted as part of the original application. The
appeal should include specific examples aligned to the permissible grounds of the
appeal as set out in (a), (b) and (c) above.
6.4
On receipt of the appeal the General Manager, Policy and Practice, will conduct an
initial review of the appeal and may reject the appeal, grant the appeal or refer the
matter to a specially convened panel. This initial assessment by the General Manager,
Policy and Practice in not open to further appeal.
6.5
In the event that a panel is convened, the building contractor may elect to have a
representative of the executive of the Master Builder’s Association on the panel. The
General Manager, Policy and Practice will chair the panel.
6.6
The final decision will be made by the General Manager Policy and Practice.
6.7
BMW’s original decision will stand while the appeal is considered.
6.8
An unsuccessful appeal does not prohibit the applicant or prequalified building
contractor from submitting future applications for prequalification. The applicant or
prequalified building contractor may also elect to submit an entirely new application
instead of lodging an appeal.
7
CANCELLATION/SUSPENSION OF PREQUALIFICATION
PREQUALIFICATION LEVEL OR TECHNICAL CATEGORY
7.1
Building contractors whose prequalification has been suspended or cancelled are
ineligible to tender in accordance with paragraph 2.1(e).
7.2
Once a building contractor’s prequalification has been cancelled, a new application for
prequalification will be required. The submission of a new application for
prequalification does not mean that the prequalified building contractor’s level of
prequalification will be automatically re-instated. Every new application for
prequalification will be assessed on its own merits.
7.3
A building contractor whose prequalification has been suspended will remain
suspended until it addresses the cause of the suspension to the satisfaction of BMW.
Where a building contractor has failed to address BMW’s concerns within the time
specified in the notice advising of the suspension, the building contractor’s
prequalification may be cancelled.
7.4
If BMW wishes to change a building contractor’s prequalification level or technical
category, it will inform the building contractor of its intention and allow a minimum of
five working days for the building contractor to comment. After the five working days
have elapsed, BMW at its sole discretion, will decide whether or not to implement the
change.
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OR
CHANGE
OF
8
APPENDIX A – EXAMPLES OF THE CLASSIFICATION OF COMMON BUILDINGS
BY COMPLEXITY
COMPLEX FACILITIES (New Construction)
Academy
Concert Hall
Marina
Ambulance Station
Convention Centre
Museum
Amenities Building
Court House
Office Facilities
(High Rise - greater than 3 floors)
Aquaculture Park
Crematoria
Operating Theatre
Aquatic Centre (Indoor & Outdoor)
Dental Surgery
Prison (Remand, Medium, Maximum &
Juvenile)
Art Gallery
Film/TV Studio
Railway Station
Bank
Fire Station
Research Centre
Brewery
Grandstand
Residential (multi-unit and multi storey)
Broadcast Studio
High (Senior) School
Restaurant
Church
Hospital
Technical College
Cinema
Laboratory
Theatre
Commercial Kitchen
Lecture Theatre
University
Commercial Laundry
Library
Veterinarian Facility
CONVENTIONAL FACILITIES (New Construction)
Abattoir
Funeral Parlor
Post Office
Agricultural College
Gymnasium
Primary School
Apartment House
Hall (not Theatre)
Prison (Minimum)
Boiler House
Hostel
Residential (multi-unit, single storey)
Café (Tearoom)
Hotel
Residential College
Cafeteria
Indoor Sports Pavilion (non-aquatic)
Service Station
Camp School
Medical Centre
Shopping Centre
Child Care Centre
Motel
Social Club
Community Centre
Multi-Purpose Health Care Facility
Storage Facilities (special)
Cool Store
Municipal/Civic Centre
Swimming Pool
Department Store
Nursing Home
Telephone Exchange
Dining Hall
Office Facilities (Low Rise - up to 3 floors)
Tourist Centre
Drive-in Theatre
Outdoor Sports Stadium
Town Hall
Exhibition Building
Parking Station
Transport Terminal
Factory (heavy industry)
Passenger Terminal
Zoological Facility
Family Centre
Police Station
SIMPLE FACILITIES (New Construction)
Ablution Facility
Shed or Shelter
Factory (light industry)
Storage Facilities (general)
Hangar
Transportable Buildings
Nursing Post
Workshop (general)
Residential (single, duplex, triplex)
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9
APPENDIX B – BUSINESS RISK ASSESSMENTS
9.1
Business risk assessments will determine the building contractor’s financial capacity
as being either:
9.2
(a)
low risk;
(b)
medium risk; or
(c)
high risk.
For a building contractor’s financial capacity to be considered “low risk”, the building
contractor must meet the two primary financial ratios:
(a)
greater than 5% of turnover in net tangible assets; and
(b)
greater than 10% of the contract value (when the business risk assessment is
done at the tender stage) or the top of the prequalification value (when the
business risk assessment is done as part of a prequalification request) in working
capital.
9.3
If the applicant is applying for prequalification as a trustee, the financials assessed will
be those of the trust.
9.4
See paragraph 3.6 of the main document for a description of certain assets and
liabilities that have been determined by BMW as being disallowed as they cannot be
relied on for the purpose of supporting the entity in the event of default of the
company.
9.5
If a building contractor does not meet the minimum primary financial ratios it can be
assessed as being “medium risk” if it:
9.6
9.7
(a)
identifies a BMW approved guarantor(s) that agrees to provide a suitable Deed of
Guarantee. Deeds of Cross Guarantee will not be accepted; or
(b)
BMW determines that its risk can be mitigated by setting a cap on the maximum
contract value of any one contract that the building contractor could be awarded.
This cap would be set at ten times the contractor’s demonstrated working capital.
This mitigation strategy is only applicable where the building contractor passes
the net tangible assets ratio but fails the working capital ratio (this mitigating
strategy is only considered if an acceptable guarantor is not available).
BMW’s preference is for corporate guarantors. A corporate guarantor is considered to
be suitable if it:
(a)
has greater than 10% of the contract value (tender stage) or greater than 5% of
the top of the prequalification value (prequalification stage) in net tangible assets;
and
(b)
agrees to provide a Deed of Guarantee (prequalification stage) or project specific
Deed of Guarantee (tender stage).
If a corporate guarantor cannot be provided, the guarantor can be a natural person or
persons (such as the company Director). The guarantor(s) will need to demonstrate to
the satisfaction of BMW that it holds unencumbered real property holdings greater than
10% of the contract value (tender stage) or 5% of the top of the prequalification value
(prequalification request).
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9.8
Where a guarantor or guarantors is proposed, BMW must be able to identify the entity
or entities that hold the required level of assets and all guarantors must agree to
provide the Deed of Guarantee. Where these requirements are not met the building
contractor will be assessed as “high risk””.
9.9
If a building contractor fails the two primary ratios and cannot demonstrate to BMW’s
satisfaction that it has nominated a suitable guarantor then the building contractor will
be assessed “high risk”.
9.10
In addition to the two primary ratios, a Maximum Aggregate Contract Value (MACV)
will be set at the time of prequalification. This is an annual aggregate contract value
that the building contractor should not exceed, and is calculated using the highest year
of turnover in the last three years, plus a 30% uplift.
9.11
The MACV will be recorded by BMW and communicated to the building contractor at
the time of prequalification.
9.12
A building contractor who at the time of tender assessment has exceeded its MACV, or
would exceed it with the award of the contract under consideration, will be assessed
as being ‘high risk’ unless it can promptly:
(a)
Demonstrate to the satisfaction of BMW that it has sufficient capable personnel
and other necessary resources available to completely fulfil the obligations of the
contract; and
(b)
Nominate suitable guarantor(s), subject to the approval of BMW, who will
execute BMW’s approved project specific Deed of Guarantee.
9.13
Prequalified building contractors that meet the two primary financial ratios at the time
of prequalification but do not meet them at the time of tender will be required to provide
adequate BMW approved guarantor(s). The guarantor(s) must execute BMW’s
approved project specific Deed of Guarantee.
9.14
In addition to reviewing the two primary ratios and the MACV, BMW will consider a
number of other matters as part of the business risk assessment. These include, but
are not limited to:
9.15
(c)
reviewing general financial information, such as profit levels and historical
performance;
(d)
reviewing past performance and references;
(e)
reviewing reports obtained from external financial service providers that assess a
building contractor’s financial status; and
(f)
conducting background searches of WorkSafe WA’s Prosecution Summaries
Database to identify if there has been any successful prosecutions against the
building contractor. There will also be searches conducted of Fair Work Australia,
Fair Work Ombudsman, and Western Australian Industrial Relations Commission
to identify if the building contractor has any proceedings or issues against them
in relation to industrial legislation.
Where BMW determines that these matters indicate that the building contractor is in
financial difficulty, or that there are other matters of concern to BMW, it reserves the
right to assess the building contractor as “high risk” or, if applicable:
(a)
require the building contractor to obtain a BMW approved guarantor; and/or
(b)
place restrictions on the value (in the aggregate or individual) of contracts that
the building contractor can be awarded; and/or
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
(c)
impose any other mitigation strategy that BMW determines is required.
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10
APPENDIX C - INFORMATION REQUIREMENTS FOR APPLICATIONS FOR PREQUALIFICATION AND PREQUALIFICATION
RENEWAL
Application
Renewal
yes
yes
yes
yes
Organisational chart of applicant showing reporting relationships & relationship between related entities
yes
Changes only
Number / category of full time resources (staff)
yes
Changes only
Qualifications and experience of key operational employees
yes
Changes only
yes
New
certificates
only
LEVEL 5 applicants: Three years Financial Reports prepared by a qualified accountant and audited by a registered auditor (preferred).
If the contractor is unable to provide audited financials, BMW will consider financial statements signed by two company directors (or one director and
one senior officer where the contracting entity has only one director).
yes
two years only
Three years Financial Reports prepared by a qualified accountant
yes
two years only
Current Management Accounts which are no more than three months old and signed by a Director
yes
yes
If the legal entity is a Trustee Company, the most current Trust Deed and any amendments to the Trust Deed are required
yes
yes
Current letter from bank/financial institution confirming availability and extent of finance (preferably dated within the last three months)
Current reference from at least three trade creditors, confirming credit limit, monthly average spend and current payment terms (preferably dated within
the last three months).
yes
yes
yes
yes
TECHNICAL CAPACITY
CORPORATE EXPERIENCE
Names and contact details for three independent performance referees who are able to provide comment on applicants organisational ability, time and
cost performance, standard of workmanship and level of co-operation.
Full details of completed projects over 36 months and projects under construction aligned to levels of complexity as described by BMW (Refer appendix
A).
Please provide a description of the works that have been undertaken for each completed project so that technical complexity may be assessed
(Contractors who have experienced a change to their legal status since last assessment should refer to Section 2.9)
HUMAN RESOURCES
PRINCIPLES OF RESPONSIBLE CONTRACTING (L 3-5 only)
(Client Satisfaction, HR Management, Continuous Improvement, Quality Management, OSH Management, Environmental Management). Applicant to
provide either AS /NZ accreditation certificates or documentary evidence such as; procedure manuals, policy statements, business plans, quality
systems manuals etc where external certification not available.
FINANCIAL CAPACITY See Appendix D for further information on financial information requirements
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11
APPENDIX D - FINANCIAL INFORMATION REQUIREMENTS
NOTE –
The requirement for financial reports to be; (a) prepared by a qualified accountant, or (b)
audited is only applied for the financial year 2012/2013 onwards.
BMW prefers that all financial reports and Management Accounts clearly identify the
contracting entity’s financial performance in its own right. BMW will consider consolidated
accounts when the contracting entity’s statements are not provided under the following
conditions:

When it can be demonstrated that the contracting entity’s financial position is not
materially different to the consolidated entity and a performance deed of guarantee is
obtained.

When the contracting entity’s financial position is materially different to the
consolidated entity, but a performance deed of guarantee is obtained and sufficient
information provided to calculate the contracting entities workload cap (MACV); or

When the contracting entity’s financial position is materially different to the
consolidated entity and sufficient information is not provided to calculate the
contracting entities workload cap, but a performance deed of guarantee and a 10
percent bank guarantee are obtained.
11.1
CURRENT MANAGEMENT ACCOUNTS
At the time of application to the Scheme and in response to requests for financial information
during the tender assessment stage, building contractors must provide Quarterly Management
Accounts signed by a company director as being true and correct, that are no greater than
three months old.
11.2
FINANCIAL REPORTS
All applicants are required to submit financial reports for the previous three years that have
been prepared by a qualified accountant (a member of the ICAA, CPA or IPA). If the building
contractor is making an application for prequalification and has been trading for less than three
years, one years reports may be considered acceptable for Level 1-2 applicants; two years
reports may be considered acceptable for level 3 – 4 applicants.
11.3
AUDITED FINANCIAL REPORTS
Applicants for Level 5 prequalification are requested to submit Audited Financial Reports where
possible for the previous three years. If the building contractor is making an application for
prequalification and has been trading for less than three years, the previous two years reports
may be considered acceptable for level 5 applicants.
For a detailed list of financial information required and who can prepare these financial reports,
please refer to the table over page.
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Financial Information Required - The deadline for contractors to provide their most
recent financial statements is the 30th of November.
Audited Financial Report (Level
5 – not mandatory)
Statement of Comprehensive
Income (or Profit and Loss
Statement)
Financial Report
Management Accounts
Statement of Comprehensive
Income (or Profit and Loss
Statement)
Set of summarised
accounting data for a Profit
and Loss Statement and
Balance Sheet.
Statement of Financial Position
(or Balance Sheet)
Statement of Financial Position
(or Balance Sheet)
Must have balances for
current assets, non-current
Notes to the Financial
assets, total assets, current
Statements
liabilities, non-current
liabilities, total liabilities,
Signed Director’s Declaration equity.
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial
Statements
Director’s Report
Signed Director’s Certification
Signed Director’s Declaration
Director’s Report
Details and Signature of
Accountant preparing the
Financial Report
Details and Signature of
Accountant preparing the
Financial Report
Signed Auditor’s Report
Who can Prepare Financial Information
Audited Financial Report
Financial Report
Management Accounts
Financial Report - Qualified
Accountant who is a member of
the Institute of Chartered
Accountants of Australia (ICAA),
Certified Practising Accountants
Australia (CPA) or Institute of
Public Accountants (IPA).
Qualified Accountant who is a
member of the Institute of
Chartered Accountants of
Australia (ICAA), Certified
Practising Accountants
Australia (CPA) or Institute of
Public Accountants (IPA).
Prepared or generated
internally.
Auditor’s Report - Qualified
Accountant who is a Registered
Company Auditor or an
Authorised Audit Company,
registered by the Australian
Securities and Investments
Commission (ASIC) under the
provisions of the Corporations
Act.
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12
APPENDIX E
PRACTICE
12.1
BMW seeks evidence from applicants applying for prequalification at Levels 3-5 of a
commitment to:
12.2
-
PRINCIPLES
OF
RESPONSIBLE
(a)
Client Satisfaction
- Business practices and relationships
(b)
Human Resource Management
- Industrial relations
- Training and skills development
(c)
Continuous Improvement
- Use of technology and innovation in construction
(d)
Quality Management
- Administration and tendering
- Security of payment
(e)
Occupational Safety and Health (OSH) Management
(f)
Environmental Management.
BUILDING
CONTRACTOR
Currently BMW has set three levels of commitment to each of the areas. The levels
are:
(a)
Continuous Improvement
(b)
Establishment
(c)
Development
12.3
The Tables on the following page show the level of commitment required by applicants
considering prequalification at either Level 3, 4 or 5. The Measures tables on the
subsequent pages list the measures (criteria) considered by BMW when determining
the level of commitment.
12.4
The applicant must provide documentary evidence to show how its organisation
satisfies each measure (criterion) shown under each heading. Examples of the kind of
documentation required are set out below:
(a)
Evidence of accreditation under the Australian Government Building and
Construction OSH Accreditation Scheme;
(b)
Evidence of 3rd party accreditation in OSH, Quality and Environmental;
(c)
Procedure manuals with completed forms, reports, letters;
(d)
Documents defining company structure roles and responsibilities, operational
manuals;
(e)
Meeting agendas, minutes of meetings, completed forms;
(f)
Policy statements;
(g)
Training matrix, programs, certificates;
(h)
Computer systems, programs;
(i)
Business plans, performance indicators, benchmarks;
(j)
Quality system manuals, accreditation certificates;
(k)
OSH manuals, completed forms showing implemented processes; and
(l)
Examples of completed and implemented environmental reports.
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PRINCIPLES OF RESPONSIBLE BUILDING CONTRACTOR PRACTICE
(indicates level required. See measures tables on the following pages for further info)
Demonstration requirements for Levels 3 - 5
SCHEME STAGE
Development Stage
Client satisfaction
Human resource management
Continuous improvement
Quality Management
OSH Management
Environmental Management
Establishment Stage
Level 3-5
Level 4-5
Level 5
Level 3-5
Level 4-5
Level 5
Level 3-5
Level 4-5
Level 5
Level 3-5
Level 4-5
Level 5
Level 3-5
Level 4-5
Level 5
Level 3-5
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Continuous Improvement Stage
PRINCIPLES OF RESPONSIBLE BUILDING CONTRACTOR PRACTICE - Continuous Improvement Stage (Level 5)
1.
CLIENT
SATISFACTION
Manager appointed to ensure
client service with roles and
responsibilities defined.
Procedures implemented to
record, analyse and promptly
respond to client concerns.
Project personnel formally
advised of client concerns.
2.
HUMAN
RESOURCE
MANAGEMENT
3.
CONTINUOUS
IMPROVEMENT
Implemented strategy to
achieve an open two-way
communication with employees
to facilitate feedback.
Goals and long term vision
defined for the organisation
including innovative solutions to
improve service to clients.
A strategy is in place for the
management of industrial
relations issues on construction
sites.
Progress with business plan
implementation is considered
regularly at management
meetings, and includes
captured information relating to
performance indicators.
Industrial relations issues that
may impact on the works are
identified prior to
commencement.
Human resources policies,
procedures and training support
the creative involvement of
employees.
Skill formation/training plans
reviewed annually to meet skill
needs that match the direction
of the organisation. Plans to
include the use of information
technology.
4.
QUALITY
MANAGEMENT
5.
OSH
MANAGEMENT
Benchmarking with local
organisations to improve
performance for clients in
relation to client objectives of
time, service and quality.
Accredited under AS/NZS 4801
Health & Safety Risk
Management
Accreditation under AS/NZS ISO
14001 Environmental
Management.
Or
Or
Or
Management regularly
reviews the company’s quality
system performance and
initiates improvements in the
organisation and on projects.
Accreditation under the
Australian Government Building
and Construction OSH
Accreditation Scheme.
Management regularly reviews
the company’s environmental
management performance and
initiates improvements in the
organisation. Reviews to at least
include consideration of:
Reviews to at least include
consideration of:
-
-
captured information
relating to performance
measures;
internal and external
audits/reviews results;
the need for changes in
work methods;
adequacy of training; and
an analysis of trends in
non-conformances.
External project audit reports
indicate a good performance
for the quality management
system implementation.
Management regularly reviews
OSH performance and initiates
improvements in the
organisation. Reviews to at least
include consideration of:
-
-
-
-
captured information
relating to performance
measures;
internal and external
audits/reviews results;
the need for changes in
work methods;
adequacy of training; and
an analysis of trends in
non-conformances.
OSH is an agenda item at all
management meetings.
OSH system applies across all
Government and private sector
projects.
External project audit reports
indicate a good performance for
the OSH management system
implementation.
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ENVIRONMENTAL
MANAGEMENT
Accreditation under AS/NZS
ISO 9001 Quality
Management.
Or
A policy developed to
mainstream quality, OSH, and
environmental management
systems into workplace and
management decision-making
processes.
6.
-
captured information relating
to performance measures;
internal and external
audits/reviews results;
the need for changes in
work methods;
adequacy of training; and
an analysis of trends in nonconformances.
Measures in place to encourage
subcontractors to improve
environmental performance.
Environmental criteria used in the
procurement of materials and the
selection of subcontractors.
External project audit reports
indicate a good performance for
the environmental management
system implementation.
PRINCIPLES OF RESPONSIBLE BUILDING CONTRACTOR PRACTICE - Establishment Stage (Level 4)
1.
CLIENT
SATISFACTION
Regular project meetings and
formal project reports to clients.
Individual profiles of key
personnel are made available to
clients.
Clients formally advised of
impending key staff changes
including the appropriateness of
the new personnel.
An implemented policy to offer
to arrange walk throughs for
end users/clients with any
identified shortcomings
recorded.
An implemented policy to raise
employee awareness of client
concerns on projects.
Endorsements from clients
maintained for projects
completed in, at least, the last 3
years.
Performance in relation to client
objectives of time, services and
quality reviewed for projects.
Shortcomings in outcomes
identified and improvements
implemented.
2.
HUMAN
RESOURCE
MANAGEMENT
Skills formation/training plans
being implemented covering
technical and non-technical
skills. Skills to include as
necessary:
-
project planning;
plan reading;
human resource
management; and
contract management.
Determine skill requirements
to meet project needs.
Management shares
information with employees,
through:
-
consultative committees;
safety and health
committees;
company magazine.
Human resource planning
initiatives implemented
including flexible workplace
practices to maximise client
service delivery.
Coaching and mentoring
provided for project personnel.
Procedures in place to provide
advance warnings to clients of
any issues that may impact
upon project quality, cost or
time.
3.
CONTINUOUS
IMPROVEMENT
Management responsibilities
are clear throughout the
organisation and management
performance is measured.
Goals and long term vision
defined for the organisation.
Business plan developed with
key result areas, objectives,
and performance indicators.
Policies implemented to
capture and monitor
information relating to
performance indicators in
business plan.
Business plan incorporates a
commitment to the
development of information
technology along with the
financial resources to achieve
this objective.
A policy under consideration
by management to
mainstream quality, OSH
management and
environmental management
systems into workplace and
management decision-making
processes.
Development of a plan to
implement benchmarking with
other organisations to improve
performance for clients in
relation to client objectives of
time, service and quality.
4.
5.
OSH MANAGEMENT
Accreditation under AS/NZS ISO
9001 Quality Management.
Accredited under AS/NZS 4801
Health & Safety Risk Management
Or
Or
Project staff and key
subcontractors are trained in the
full operation of the quality
management system.
Accreditation under the Australian
Government Building and
Construction OSH Accreditation
Scheme.
Project staff are involved in
regular surveillance of the
quality management system.
Or
An effective internal
auditing/review program of the
quality management system in
place that has been used to
improve the system.
Effective non-conformance
detection and prevention system
in place.
Subcontractors understand and
are complying with their quality
management responsibilities.
Inspection and test plans
prepared and implemented for
projects.
A strategy in place to capture
and monitor information relating
to quality management
performance measures.
Formal zero defects at practical
completion policy with processes
in place to achieve this target.
Project audit reports indicate
acceptable performance for
quality management system
implementation.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
QUALITY
MANAGEMENT
Project staff and key
subcontractors are trained in the
full operation of the OSH
management system.
Project staff are involved in regular
surveillance of the OSH
management system.
An effective internal
auditing/review program of the
OSH management system in place
that has been used to improve the
system.
Effective corrective action system
in place.
Subcontractors understand and
are complying with their OSH
management system
responsibilities.
Safety Management Plans
prepared and implemented for
projects.
A strategy in place to capture and
monitor information relating to
OSH management performance
measures.
Project audit reports indicate
acceptable performance for the
OSH management system
implementation.
6.
ENVIRONMENTAL
MANAGEMENT
Accreditation under AS/NZS
ISO 14001 Environmental
Management.
Or
Project staff and key
subcontractors are trained in
the full implementation of
environmental management
plans.
Project staff are involved in
regular surveillance of the
implementation of
environmental management
plans.
Subcontractors understand and
are complying with their
environmental management
plan responsibilities.
PRINCIPLES OF RESPONSIBLE BUILDING CONTRACTOR PRACTICE - Development (Level 3)
1.
CLIENT
SATISFACTION
Committed to BMW as an
important client.
Document client concerns on
current and recent projects.
Document employee ideas and
methods to improve client
service.
Participate in industry meetings
(eg through industry
associations) on client service
issues.
2.
HUMAN
RESOURCE
MANAGEMENT
Skills formation/training plans
being developed covering
technical and non-technical
skills. Skills to include as
necessary:
-
project planning,
plan reading,
human resource
management; and
contract management.
Team based problem-solving
skills being developed.
Employee skill profile
documented.
3.
CONTINUOUS
IMPROVEMENT
The roles of managers are
documented and understood by
managers and employees.
4.
QUALITY
MANAGEMENT
Accreditation under AS/NZS
ISO 9001 Quality Management.
5.
OSH
MANAGEMENT
ENVIRONMENTAL
MANAGEMENT
Accredited under AS/NZS 4801
Health & Safety Risk
Management
Accreditation under AS/NZS
ISO 14001 Environmental
Management.
Or
Or
Accreditation under the
Australian Government Building
and Construction OSH
Accreditation Scheme.
CEO/Principal is involved in
monitoring of environmental
management plans.
Or
Developing a formal business
plan with a strategy to monitor
plan at management meetings.
Management collects data on
the company’s project
performance.
CEO/Principal is involved in
monitoring of quality
management system.
Training sessions conducted on
quality management systems
for all site personnel.
Or
Identified and documented
performance measures in
quality management.
CEO/Principal is involved in
monitoring of OSH management
system.
Processes in place to address
deficiencies identified.
Training sessions conducted on
OSH management system for
all site personnel.
Identified and documented
performance measures in OSH
management.
Processes in place to address
deficiencies identified.
Safety inductions are in place
on current projects and records
maintained.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
6.
Environmental management
plans prepared and
implemented for projects.
Training sessions planned or
conducted on contractor’s
environmental management
plans for all site personnel.
Processes in place to address
deficiencies identified in
implementation of
environmental management
plans.
APPENDIX F – (APPLICATION PACK) BUILDERS PREQUALIFICATION SCHEME
13
For application for prequalification and prequalification renewal.
NOTES


Only complete applications will be assessed. A complete application is one where all
required fields are completed and includes all requested attachments. It is the applicant’s
responsibility to ensure the completeness of the application.

BMW may seek to update its information periodically. A prequalified building contractor
must notify BMW of any changes to material information relevant to its prequalification
status as they occur. Failure to provide updated information when requested may result in
the prequalified building contractor having its prequalification suspended or cancelled.

Any queries regarding the Scheme and the completion of this application may be directed
to the Prequalification Officer telephone number (08) 6551 1795 or via email on
builders.prequalification@finance.wa.gov.au
Please use the checklist on the following page for a list of documentation required when
completing this application.
Return your completed application to:
Delivery Address:
Prequalification Officer
Building Management & Works
Locked Bag 44, Cloisters Square
PERTH WA 6850
Email Address:
builders.prequalification@finance.wa.gov.au
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
CHECKLIST - REQUIRED ATTACHMENTS
Below is a checklist of the requested attachments. Submitting an incomplete application will
lead to the application being rejected.
Checklist – Required Attachments
Included
Application
Renewal
1. Contact details of three separate Yes
independent
referees
relating
to
contractor performance (refer paragraph
18.1 of Appendix F).
Yes
Yes
2. Details of completed projects over 36 Yes
months and projects under construction
aligned to levels of complexity as
described by BMW.(refer Appendix A)
Yes
Yes
3. Organisational chart(s) of applicant Yes
showing reporting relationships &
relationship between related entities.
Yes
Changes
only
4. Number/Category of full time resources Yes
(Staff).
Yes
Changes
only
5. Qualifications
and
experience
of Yes
Directors
and
key
operational
employees.
Yes
Changes
only
Yes
No
Yes
2 years
Yes
2 years
TECHNICAL CAPACITY
Corporate Experience:
Human Resources:
Principles of Responsible Building Contractor
Practice (L 3-5 only):
6. Demonstration
of
commitment
to
‘Principles of Responsible Building
Contractor Practice (Refer Appendix E
of the Scheme document)
Yes
N/A
FINANCIAL CAPACITY
7. Three years Financial Reports prepared
by a qualified accountant and audited by
Yes
registered auditor (preferred for L 5).
8. Three years Financial Reports prepared Yes
by a qualified accountant (L 1-5).
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
9. Three years Financial Reports for any
corporate entity required to provide Deed Yes
of Guarantee.
10. Current Management Accounts not more
Yes
than three months old signed by a
Director to be true & fair
11. If the legal entity is a Trustee Company, Yes
the most current Trust Deed and any
amendments to the Trust Deed are
required.
12. Current
letter
from
bank/financial
institution confirming availability and Yes
extent of finance (preferably dated within
3 months)
Yes
13. Current reference from at least three
trade creditors, confirming credit limit,
monthly average spend and payment
terms (preferably dated within three
months)
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Yes
2 years
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
CERTIFICATION
I/We certify that I/we have read and understand all the information contained in the Builders
Prequalification Scheme document. I/We further certify that all the information included in
this application for
LEVEL…………….........................................................(specify one financial & technical level
only) prequalification is true and correct in every detail and all required information has been
supplied.
(a) All information completed
(b) Meet Financial Capacity
(c) If the applicant does not meet the financial
capacity test, then a suitable guarantor has
been identified.
*refer to checklist above
(d) Meet Technical Capacity
*refer to paragraph 2.4 of this document
*refer to Appendix B of this document
*refer to Appendix B of this document
Name of Authorised Officer:
(first name)
(last name)
Position held in Firm:
(In block letters)
Signature
Officer:
of
Authorised
(signature)
Date:
day of
(day no.)
(month)
(year)
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
14
APPLICATION STATUS
Tick appropriate box
PREQUALIFICATION
PREQUALIFICATION RENEWAL
PREQUALIFICATION UPGRADE
REQUESTED LEVEL OF PREQUALIFICATION
Please indicate one financial and technical level only by ticking the appropriate box.
Please refer to the following pages for further information and explanation on each of the
technical levels.
Please note that the financial ranges shown are Perth based values (GST inclusive).
Financial
Technical
LEVEL 1
From
$300 000
up to
$1,500 00
0
LEVEL 2
From
$1,500,001
up to
$3 000 000
LEVEL 3
From
$3 000,001
up to
$6 000 000
LEVEL 4
From
$6 000,001
up to
$15 000 000
LEVEL 5
From
$15 000,001
up to
$50 000 000
COMPLEX
CONVENTIONAL
SIMPLE
NOT
APPLICABLE
NOT
NOT
NOT
APPLICABLE APPLICABLE APPLICABLE
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
15
BUSINESS PROFILE
LEGAL
ENTITY:
(company or individual):
TRUST
(if relevant):
NAME:
BUSINESS/TRADING NAME:
(if different from legal entity):
AUSTRALIAN COMPANY NUMBER:
(if relevant):
AUSTRALIAN BUSINESS NUMBER:
BUILDING SERVICE CONTRACTOR:
REGISTRATION NUMBER
BUILDING
SERVICE
PRACTITIONER:
REGISTRATION
NUMBER
DATE BUSINESS COMMENCED
OPERATION:
TYPE OF BUSINESS:
Sole Trader
(tick appropriate box)
Partnership
Company
Private Company
Other
(please
specify)
NOTE- For firms operating under a Trust arrangement, please attach a copy of the Trust Deed
and any of its amendments.
PRINCIPAL CONTACT DETAILS (WESTERN AUSTRALIA)
PRINCIPAL PERMANENT OPERATIONAL OFFICE:
Floor Level:
Unit No:
Building Name:
Street No:
Street Name:
Suburb/Town/City:
State:
Postcode:
REGISTERED ADDRESS (if relevant - for companies only):
Floor Level:
Unit No:
Building Name:
Street No:
Street Name:
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Suburb/Town/City:
State:
Postcode:
POSTAL ADDRESS (if different from above):
PO Box / Other:
Suburb/Town/City:
State:
Postcode:
MAIN PHONE NUMBER/S:
FAX NUMBER:
CORPORATE
ADDRESS:
EMAIL
PRINCIPAL CONTACT PERSON FOR PREQUALIFICATION:
Mr Mrs Ms Miss
(please circle)
(f first name)
last name)
POSITION IN FIRM:
PHONE NUMBER:
EMAIL ADDRESS:
OTHER PERMANENT OPERATIONAL OFFICES
List the names of the cities/towns and contact details where the applicant has other Permanent
Operational Office(s).
City /Town
Contact Person
1
2
3
4
5
BMW may seek further evidence from the applicant in relation to the above.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Contact Number
16
BANK DETAILS
NAME OF BANK:
ADDRESS OF BANK:
CONTACT NAME/S AT BANK:
TELEPHONE
BANK:
NUMBER/S
AT
Access to Other Finance (Off Balance Sheet Funding)
Name
Amount
Facility
(a) Bank:
(b) Related
Entity:
(c) Other
17
NAMES OF MAJOR TRADE CREDITORS
1.
2.
3.
4.
Attach current written references from a minimum of three of the above named trade creditors
confirming credit limit, monthly average spend and current payment terms.
Attach current letter from bank/financial institution confirming availability and extent of finance.
18
CORPORATE EXPERIENCE
18.1
Performance Referees
Please provide contact details for a minimum of three seperate referees that are independent from
the applicant. Referees will be contacted by BMW to obtain a verbal reference.
Referees will be requested to provide commentary on the applicant’s organisational ability, time and
cost performance, standard of workmanship and level of cooperation. Please advise the particular
contract(s) applicable to each referee.
REFEREE NAME
CONTACT DETAILS
POSITION HELD
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
CONTRACT DETAILS
18.2
Technical Details
BMW has grouped various facilities into three broad bands of technical complexities - Simple,
Conventional and Complex. See Appendix A of the Builders Prequalification Scheme document for
examples of the types of facilities that BMW considers Simple, Conventional or Complex
construction projects under the Scheme. Projects such as residential construction, refurbishment,
fit-out, and transportable building projects are normally classified as Simple or Conventional in
nature.
Applicants should demonstrate their technical experience by aligning its list of completed and
current contracts from its application against the three bands of complexity set out in the tables in
Appendix A.
If an applicant believes that one or more of its projects is covered by one of the listed facility types
but due to circumstances in the project its complexity level is greater than that shown then the
applicant must state in its application the level of complexity the applicant believes is appropriate
and provide evidence that supports this opinion. BMW will undertake to consider the applicant’s
opinion of a change in complexity.
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
18.2.1 BUILDING PROJECTS - Completed During Last Three Years
Additional rows may be expanded to the table below if the applicant would like to add additional projects.
List other significant building contracts if desired – Western Australian projects to be emphasised. Projects where the applicant did not act as the
Builder (i.e. Project or Construction Manager) are to be separately identified. Please provide full details of projects completed at existing
prequalification level (or prequalification level being sought) on a separate document, to enable technical complexity to be fully assessed.
Date
Completed
09/2012
Description of Contract
E.g. Built a Sporting Complex in
Clarkson
Original
Contract Value
Perth base
value (GST
Inclusive)
Construction
Period
$12.9M
52 wks
$
wks
$
wks
$
wks
$
wks
$
wks
$
wks
$
wks
$
wks
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Name of
Supervising
Facility
Complexity
(see
Architect
above)
and/or Contract
Administrator
Complex Conventional Simple
provide contact
details
ABC Architects –
6551 1789
18.2.2 BUILDING PROJECTS - Currently Under Construction
Additional rows may be expanded to the table below if the applicant would like to add additional projects. List other significant building contracts if desired –
Western Australian projects to be emphasised. Projects where the applicant did not act as the Builder (i.e. Project or Construction Manager) are to be
separately identified.
Original
Contract
Value
Perth base
value (GST
Inclusive)
Date
Commenced
Description of
Contract
July 2012
E.g. Construction
of new library at
Clarkson Primary
$4.5
School
Construction
Period
Expected
Date for
Practical
Completion?
Name of
Supervising
% Complete Architect
and/or Contract
Administrator
provide contact
details
26 wks
Jan 2013
50%
ABC Architects 6551 1789
$
wks
%
$
wks
%
$
wks
%
$
wks
%
$
wks
%
$
wks
%
$
wks
%
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Facility Complexity
Complex Conventional Simple
18.2.3 HUMAN RESOURCES
Attach organisational chart of applicant showing the reporting relationship between directors/owners and employees. If applicable also attach an
organisational chart showing the relationship between any related entities of the applicant.
18.2.4 Number Of Resources
Enter, in each category, the number of core permanent staff located at your Principal Permanent Operational Office and in each Other Permanent
Operational Office.
List only employees on salaries and wages. Contract staff, subcontractors, consultants and the like are not to be included. BMW reserves the right
to verify this information with other organisations.
Where a staff member is only part-time, please indicate by “PT” stating the percentage of time worked. Only count each employee once. Where
an employee performs more than one role then they are to be included only against their primary role.
POSITION IN FIRM
No.
Location if not at Head Office
POSITION IN FIRM
*Directors
Supervisors
*Owner/Partners
Foremen
*Company Secretary
Tradespeople
*Managing Director
Apprentices
*Project managers
Other (please specify)
*Construction
managers
*Quantity surveyors
*Site managers
Contract managers
Quality officers
Office managers
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
No.
Location if not at Head Office
*denotes Key Operational Employee
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
18.2.5
Qualifications and Experience of Individual Resources
Complete a separate page for each Key Operational Employee identified on the previous page. The information on each Director or Partner of the
applicant is mandatory, but is not required for non-operational employees such as general office staff, accounts staff, reception staff and the like.
SURNAME:
FIRST NAME/S:
POSITION IN FIRM:
LOCATION:
YEAR JOINED FIRM:
(e.g. head office or name of town if at a regional office)
TENURE IN FIRM:
Full-time
Part-time
PREVIOUS EMPLOYMENT AND ASSOCIATIONS WITH OTHER FIRMS:
Name of other Firm
Association or position in Firm
Current Previous Year Started
Year Ceased
ACADEMIC QUALIFICATIONS:
Building
Practitioner:
Service Yes
Registration Number
Qualifications
Institution
(e.g. tertiary education - degree)
No
Year obtained
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Other Trade Registration No:
Courses and Certificates
Year obtained
Membership
Organisations
of
Professional
or
Trade
Year obtained
Other
Memberships
Organisations
of
Professional,
Trade Year obtained
PERSONAL EXPERIENCE
Year
Description of Contract
Value of Contract
Perth base value
(GST inclusive)
$
$
$
$
$
$
$
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BMW’s Builders Prequalification Scheme Application Pack – 8 April 2014
Facility
Complexity
Role in Contract
Complex
Conventional
Simple