Submission on the Draft Building and Construction Procurement Guide

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2.3 Structuring the procurement process In this section we make some general comments about the tendering principles but do not respond to each and every principle. Whilst we mainly add and amplify the draft guide principles we would like to draw to your attention the fact that we do not support the comment made in 6.6 without qualification. Other Factors: “ Opportunities for bundling of multiple projects into a single contract should also be considered, where this is likely to deliver efficiencies at a program level.” The reason for our opposition is outlined at 2.3.2 below. 2.3.1 Tendering Principles As noted in section 1 in 2007 CCF (Victoria) in conjunction with the Institute of Public Works Engineering Australia and the Municipal Association of Victoria published a best practice guide for tendering and contract management. The principles of good practice in tendering in that Guide remain a sound benchmark and are generally reflected in both the tendering and contracting principles in this draft guide. 13
The general principles we consider important in tendering are as set out in the CCF Guide as follows: (a) (b) (c) (d) (e) (f) (g) Value for money – procuring goods and services at optimal cost, having regard to issues such as policy, performance standards, risk management and life-cycle costs. Open and fair competition – maximising the opportunity for firms and individuals to compete in business Accountability – allocating responsibility for compliance with policy and adoption of best practice Risk Management – adopting management strategies to minimise risk in tendering and contract management. Generally, risk should be managed by the party best able to manage the risk. Probity and transparency – ensuring fairness, impartiality, consistency and transparency in all stages of the tendering phase. Local industry participation – using local suppliers wherever they offer best value for money. Minimisation of tendering costs – ensuring that consideration is given to the costs of tendering on the part of both Principals and contractors alike 21 . With these general principles in mind we comment as follows. (a) Prequalification CCF has long been a supporter of both the need for prequalification and for a pursuit of consistency of prequalification systems across jurisdictions. We support the goals of mutual recognition and harmonisation in principle. At the outset we believe that any prequalification system must be based on three core principles of consistency, transparency and flexibility. 21 See the principles in the Guide available on request 14
Page 1 and 2: Submission on the
Page 3 and 4: 1 An introduction As noted the CCF
Page 5 and 6: Not all of this cost can be passed
Page 7 and 8: 2.1.3 Contract administration issue
Page 9 and 10: This also raises a connection with
Page 11 and 12: It is our view that Government and
Page 13: the prequalification system and the
Page 17 and 18: way in which procurement takes plac
Page 19: 3 Conclusion CCF is generally suppo

Submission on the Draft Building and Construction Procurement Guide

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