Building Contracting Services
The Building Contracting Services branch provides support and advice on procurement and construction contracts at a strategic level. The branch’s activities include:
- managing the statutory framework
- developing forms of contract
- managing contract and tender shells
- providing legal support and State Solicitor’s Office liaison
- providing support on dispute resolution
- overseeing the Australasian Procurement and Construction Council (APCC) National Prequalification System (WA juristiction)
- managing the prequalification of contractors under BMW's Builders' Prequalification Scheme
- conducting Business Rick Assessments (BRA) of building contractors
- collecting, analysing and reporting on Contractor performance.
The following is a list of relevant documents and legislation governing BMW activities:
Relevant Documents
Relevant Legislation
(For tendering and contracting for major non-residential building works contracts with the Minister for Works)
On behalf of the Minister for Works, BMW administers a system of prequalification for building contractors in the building and construction industry known as the Builders’ Prequalification Scheme for Works Contracts (BPS). To be eligible to compete for State Government non-residential building works contracts tendered by BMW on behalf of the Minister, building contractors must be prequalified at the appropriate level under the BPS (some exclusions apply) prior to tenders opening. Building contractors must be able to demonstrate that they have the technical capability and financial capacity to carry on business-as-usual throughout the duration of prequalification. Prequalification under the BPS must not be considered as a guarantee of success in being awarded a State Government non-residential building works contract.
The BPS complies with the Government’s commitment to:
- being an informed, competent and responsible client of the building and construction industry, through which it spends approximately $1.3 billion annually
- consistency, fairness and transparency of its tendering and selection process for Government building projects
- reducing the cost of tendering for both industry and Government stakeholders
- developing a sustainable industry across the State by encouraging continuous improvement and the pursuit of excellence through best practice.
Important changes to the BPS
On 20 December 2011 the Department announced the removal of expiry dates for the BPS. Previously, existing BPS contractors were required to re-apply to the Department of Finance every two years to qualify for the BPS. Existing BPS contractors are now only required to provide the Department with biennial notification that its circumstances have not altered to an extent that would adversely affect its level of prequalification (sample letters can be found under Forms and Publications).
Prequalification renewal will be subject to a recent favourable Business Risk Assessment and a review of any conditions or restrictions previously imposed. If a Contractor fails to provide the required notification within 4 weeks from the prequalification expiry date, it will result in the Contractor’s prequalification being cancelled. The Contractor will be ineligible to tender with the Department on non-residential construction contracts requiring prequalification until a Certificate of Prequalification has been issued. Once prequalification has been cancelled a new Application for Prequalification will be required for assessment.
NOTE: If the Contractor’s financial information held by the Department is out dated the Department reserves the right to request up to date financial information for assessment purposes.
Forms and publications
Forms and publications
- Builders' Prequalification Scheme information pack and application form.
- Additional forms:
- Existing BPS contractors applying for prequalification renewal:
NOTE: Sample letters are examples only. BPS contractors who apply for prequalification renewal will be required to provide a letter on letterhead and must be signed by an authorised person.
For further information on the Builders’ Prequalification Scheme, please contact:
Name: Mohammad Khan
Position: Prequalification Officer
Email Address: builders.prequalification@finance.wa.gov.au
Telephone number: (08) 6551 1795
Fax number: (08) 6551 1711
For all other enquiries, please contact:
Libby McKinlay
Senior Prequalification Officer
Email address: libby.mckinlay@finance.wa.gov.au
Telephone number: (08) 6551 1794
Fax number: (08) 6551 1711
Business Risk Assessments
Business Risk manages BMW’s risk in its financial and contractual dealings with contractors and other service providers. The main approach adopted to manage business risk is to prequalify contractors under the BMW’s Builders’ Prequalification Scheme (for non-residential construction) on the basis of experience and capacity, including financial capacity to undertake specific size contracts without posing excessive risk. At present there is no requirement for contractors to be prequalified to tender on office fit-outs, maintenance and some minor works.
Contractors that are prequalified to tender for the Department’s non-residential construction must demonstrate their financial capacity at the prequalification stage and also at tender stage to take advantage of current environmental circumstances.
Business risk assessments are undertaken to gauge the financial solvency and capacity of each contractor, to identify the level of business risk to BMW and to identify any appropriate risk mitigation strategy before entering into contracts. Business risk assessments are required to be undertaken on all non-residential construction contracts, maintenance and minor works and office fit-outs exceeding $300,000.
For information relating to Business Risk Assessments please contact:
Name: Gregory Shillinglaw
Position: Senior Business Analyst
Email address: gregory.shillinglaw@finance.wa.gov.au
Telephone number: 08 6551 1796
Fax number: 08 6551 1711