H

DIT Prequalification System for Building

Projects
Cost Managers

Guidelines

age. docx
 Prequalification for Building Projects
Cost Manager

CONTENTS
1 INTRODUCTION ................................................................................ 3

1.1 Background ............................................................................. 3

1.2 Prequalification Categories...................................................... 3

1.3 Eligibility .................................................................................. 4

1.4 Conditional Prequalification ..................................................... 4

1.5 Tendering ................................................................................ 4

2 APPLICATION AND ASSESSMENT PROCESS ................................ 5

2.1 Applications ............................................................................. 5

2.2 Assessment Criteria ................................................................ 5

Criteria 1: Company experience .......................................................... 5

Criteria 2: Personnel ........................................................................... 5

Criteria 3: Management Systems ........................................................ 5

2.3 Assessment of Applications ..................................................... 5

2.4 Notification .............................................................................. 6

2.5 Upgrading Prequalification Status............................................ 6

2.6 Maintenance of Prequalification ............................................... 6

3 TERMS AND CONDITIONS OF PREQUALIFICATION ...................... 7

APPENDIX A – CHARACTERISTICS AND EXAMPLES OF BUILDING

PROJECTS IN EACH LEVEL ............................................................. 8

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1 INTRODUCTION

1.1 Background
The Department for Infrastructure and Transport Prequalification System is used for building
projects that are valued at greater than $165 000 (including GST).
Suitably experienced companies (“Applicants”) are invited to apply for prequalification with the
Department in accordance with these Guidelines.
The purpose of the prequalification system is to:

• achieve consistency, fairness and transparency in the Department’s tendering and

selection processes;

• minimise the risk of the Department entering into contracts with contractors who do not
have sufficient capability and capacity;

• reduce the cost of tendering and tender assessment for both industry and Government;
and

• encourage high standards and continuous improvement that will contribute to a

sustainable building and construction industry in South Australia.
The system aims to facilitate, but not replace, tender assessment for individual projects.
Generally, the Department will use the list of prequalified companies to determine a shortlist
of selected companies who will be invited to submit tenders for professional services.

1.2 Prequalification Categories and Levels

The role of Prequalified Cost Managers will be the coordination and management of the
project budget, cost plan, estimating and trend analysis either engaged directly by the
Department or as a subcontractor to a Lead PSC depending on project value.
The following levels, which relate to the complexity and value of the project, are available in
each category:

CM Level 1: Simple - conventional buildings, small scale (typically valued up to

$5 million)

CM Level 2: Medium - medium scale / complexity buildings (typically valued up

to $15 million)

CM Level 3: Complex - large scale, complex buildings (typically valued in

excess of $15 million)
A more comprehensive description of each level is include in Appendix A.
To be classified at CM Level 1, 2 or 3, an Applicant must demonstrate that it has the
experience, resources / personnel and management systems to successfully deliver cost
management services for a building project at that level. Prequalification in a higher level
automatically prequalifies that company in the lower level(s).

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An Applicant’s financial capacity is not considered in the prequalification system. However,

the Department reserves the right to undertake an assessment of financial capacity prior to
the award of a contract.

1.3 Eligibility
Companies (i.e. entities with an Australian Company Number), sole traders and partnerships
are eligible to apply for prequalification. Prequalification does not extend to related or
subsidiary companies of a prequalified company. Any such company or entity must apply for
prequalification in its own right. Trusts are not eligible for prequalification.

1.4 Conditional Prequalification

Where an Applicant does not meet every specified eligibility criteria, the Applicant may be
granted “Conditional” Prequalification. Examples where this may apply include:

• a newly formed company, which has suitably experienced personnel and satisfies the
requirements for systems and other resources, is unable to satisfy all of the past
experience criteria, but the Department considers that the company is competent to
undertake the work;

• a sole trader, where the Department will require assurance that a backup plan is in
place if the sole trader unexpectedly becomes unavailable.

The granting of Conditional Prequalification is at the absolute discretion of the Department.

Conditionally Prequalified companies may be requested to provide additional information at

the time of tender. Providing the conditionally prequalified company continues to comply with
the nominated conditions of their prequalification, they will be eligible to tender for contracts
in the categories and financial level they are conditionally prequalified in.

1.5 Tendering
The Department will usually publish tenders on www.tenders.sa.gov.au as either a call to all
companies at the appropriate category / level or a restricted call to selected prequalified
companies.

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2 APPLICATION AND ASSESSMENT PROCESS

2.1 Applications
Companies are invited to apply for prequalification by submitting the application form (as an
.xlsx file) and the specified attachments (as .pdf files). The application form may be
downloaded from: http://www.dit.sa.gov.au/contractor_documents/prequalification.
The application must be submitted in accordance with the instructions on the front of the
Application Form. Do not submit a hard copy.
Enquiries should be directed to: [email protected].

2.2 Assessment Criteria

Listed below is a summary of the assessment criteria that will be used to assess Applicants.
Full details of the information to be submitted and the minimum criteria for each level is
included in the application form.

Company experience
Applicants are required to demonstrate satisfactory performance on past and current relevant
projects. Details of the nominated projects must be provided, along with some Performance
Reports and referee details.

Personnel
Applicants must have key personnel with experience and qualifications appropriate to the
categories / levels being applied for. The experience may be with previous employers, but only
where it validated as being relevant experience.

Management Systems
The Applicant must have management systems which are appropriate for the category applied
for which cover safety and quality.
For levels CM 2 and CM 3, the quality management systems must be third party certified.

2.3 Assessment of Applications

When undertaking the assessment, DIT may take into account information from any of the
following the sources:

• Information submitted with the application;

• documented evidence held by DIT or other government agencies regarding the
Applicant’s previous performance;
• information that was submitted in a previous prequalification application (where
appropriate); and
• any other valid information relevant to the Application, notwithstanding that the
information has not been submitted by the Applicant.

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Performance reports may be considered to determine whether an Applicant meets the

minimum requirements for company experience. Where the Applicant submits a Performance
Report from a DIT project, it must be on the DIT Performance Report proforma. If the project
is a non-DIT project, it is preferable that the performance report covers the same elements as
the DIT Performance Report.
DIT is not obliged to accept a non-DIT Performance Report if DIT forms the reasonable opinion
that it is biased, inadequate or not representative of the Applicant’s actual performance on that
project.
DIT may seek written or verbal reports from a referee. The referee must have a sound
knowledge of the contract and must be capable of making an impartial assessment of the
Applicant’s performance.
Where a performance report indicates that the Applicant’s performance is marginal or
unsatisfactory, the Applicant must demonstrate that it has successfully implemented corrective
action to prevent a re-occurrence of the issue.
DIT may use internal and / or external assessors when considering an application.

2.4 Notification
Applicants will be notified in writing regarding which, if any, prequalification category / level it
has achieved within 6 weeks of lodgement of their application. However, if the information
provided is not sufficient to complete the assessment, this time may be extended.

Applicants that are not satisfied with the outcome of the assessment may lodge a request for
a review or appeal, as detailed in the DIT Building Conditions of Prequalification (refer Section
3 of these Guidelines).

2.5 Upgrading Prequalification Status

A prequalified company may apply for an upgrade of its prequalification status after having
successfully completed several projects at the current level.

To be eligible for an upgrade, an Applicant must be able to demonstrate that its circumstances
have changed sufficiently since its last prequalification application was assessed. It may not
be necessary to complete the entire application form and an Applicant should confirm the
requirements for the application with DIT before submitted an upgrade application. Temporary
upgrades for specific projects will not be issued.

2.6 Maintenance of Prequalification

Prequalification is for a notional 3 year period. However, if a company is subject to adverse

performance reports, undergoes a restructure or its competency is materially reduced, DIT
may request a new application. At any time, DIT may seek confirmation that the information
submitted with an application remains relevant or request an update of the information

The Department will monitor and assess the ongoing performance of each prequalified
company. A company’s ongoing prequalification is subject to it maintaining a satisfactory level
of performance in its delivery of contracts. A failure to comply with the requirements for
maintenance of prequalification may result in the prequalification being withdrawn or the level
downgraded in accordance with the DIT Building Conditions of Prequalification (refer Section
3 of these Guidelines).

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3 TERMS AND CONDITIONS OF PREQUALIFICATION

Applicants and prequalified companies are required to comply with the Department’s Building
Conditions of Prequalification, available from:

http://www.dit.sa.gov.au/contractor_documents/prequalification

Details of the review and appeal process are also included in the above document.

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APPENDIX A – CHARACTERISTICS AND EXAMPLES OF BUILDING PROJECTS

IN EACH LEVEL
The following characteristics are indicative for each level. However, it is not expected that any one
project will include all of the characteristics listed for that level.

CM Level 1: Simple
Technical
• Small scale and low technical risk / complexity.
• Conventional building techniques using commonly available trades.
• Moderate level of coordination of discipline specialists, such as structural,
mechanical and electrical engineers.
• Typically projects with a total value up to $5 million.

Delivery Risks
• Cost / quality issues are routine.
• Program is routine.
• Political impact generally limited to immediate site issues.
• Impact of non-performance is limited and can be redressed through standard
contract management processes.

CM Level 2: Medium

Technical
• The project is of moderate scale and complexity.
• May involve some innovative design.
• Opportunity for leading edge aesthetics and built form to be incorporated into the
design.
• May require substantial functional and spatial analysis.
• May require a moderate level of interaction with existing facility operators (e.g
within a school or hospital) and stakeholder consultation.
• May require a process of developing alternative models and assessing them
rigorously to determine the recommended approach.
• Numerous discipline specialists involved, requiring rigorous coordination.
• Examples include office accommodation / refurbishment, health facilities, high
security buildings, science laboratories, educational facilities.
• Typically projects with a total value up to $15 million.

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Delivery Risks
• Cost/quality issues are important.
• Program is important.
• Political impact may affect local region or interest groups.
• Non-performance may have consequential effects such as the client having find
temporary accommodation.

CM Level 3: Complex

Technical
• Large scale / complex project.
• Significant opportunity for leading edge aesthetics and built form to be
incorporated into the design.
• Numerous discipline specialists involved, requiring rigorous coordination.
• May require significant interaction with existing facility operators ie “brownfields”
environment and/or special limitations on construction environment (eg within a
high security prison).
• May include complex structural elements and have special design or construction
requirements such as long span structural components, severe / aggressive
exposure requirements or vibration / fatigue loading.
• May have special operating requirements for the completed building such as clean
rooms, biosecurity, specialised medical facilities or high security.
• Often have bespoke specifications for at least part of the works.
• Examples include health facilities, high security buildings, science laboratories,
multi-storey facilities, unique or highly specialised facilities.
• Typically projects with a total value in excess of $15 million.

Delivery Risks

• Cost/quality issues are critical.

• Program is critical.
• Political impact may be state-wide.
• Non-performance will have serious consequential effects.
• Frequently design and construct contracts or innovative contracting models.

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