Supplier performance management for government non-residential building projects

How the Department of Finance manages supplier performance for maintenance, construction, design and investigation projects.

The government wants its projects delivered by suppliers that perform to an excellent standard every time. It also wants to provide meaningful feedback to suppliers that will strengthen Western Australian industry. To do this, we use a framework of performance management schemes. These schemes ensure that good and bad performance is recorded, communicated and acted upon.

Our supplier performance framework consists of:

Supplier Performance Awards

The Department of Finance recognises excellent supplier performance through awards.

The Supplier Performance Awards recognise suppliers that have performed best on government construction projects managed by the Department of Finance over the previous two years. The awards are presented in three categories; contractors, architects and cost managers.

See the list of Finance Supplier Performance Awards 2023 winners.

Previous winners

Contractor Award

  • 2023 - Perkins Builders
  • 2023 Regional Contractor - Colab Construction
  • 2023 Aboriginal Contractor - Kullarri Building
  • 2022 - PS Structures
  • 2022 Regional Contractor - Pilbara Constructions
  • 2022 Aboriginal Contractor - Colab Construction
  • 2021 - PS Structures Pty Ltd
  • 2021 Regional Contractor - Kimberley Green Constructions
  • 2021 Aboriginal Contractor - Brahman Contracting
  • 2020 - PACT Construction Pty Ltd
  • 2020 Regional - GBSC Yurra Pty Ltd
  • 2019 - PS Structures Pty Ltd
  • 2019 Regional - Wauters Enterprises Pty Ltd
  • 2019 runner up - Universal Constructions Pty Ltd and Broad Constructions WA Pty Ltd
  • 2018 - Perkins (WA) Pty Ltd and Broad Construction Services (WA) Pty Ltd
  • 2018 runner up - Colin Wilkinson Developments Pty Ltd

Architect Award

  • 2023 - TRCB
  • 2022 - TAG The Architecture Group 
  • 2021 - T&Z Architects
  • 2020 - Iredale Pederson Hook Pty Ltd
  • 2019 winner – Cameron Chisholm and Nicol Pty Ltd
  • 2019 runner up – The Architecture Group Pty Ltd t/a TAG Architects and Gresley Abas Pty Ltd
  • 2018 winner – Holton Connor Pty Ltd
  • 2018 runner up – Zuideveld Marchant Hur Pty Ltd and The Architecture Group Pty Ltd t/a TAG Architects

Cost Manager Award

  • 2023 - Rawlinsons (WA) 
  • 2022 - Rider Levett Bucknall
  • 2021 - Rawlinsons WA
  • 2020 - H& W Quantity Surveyors Pty Ltd 
  • 2019 winner – Rider Levett Bucknall Pty Ltd
  • 2019 runner up – Donald Cant Watts Corke (WA) Pty Ltd

Major Project Award

2023 - Sir Charles Gairdner Hospital Upgrade to Catheter Laboratories and Interventional Radiology Rooms  

  • Devlyn Construction (contractor)
  • Hames Sharley (WA) (consultant)
  • Ralph Beattie Bosworth (cost manager)

2022 - Department Primary Industries and Regional Development Laboratories

  • ADCO Constructions (contractor)
  • Silver Thomas Hanley (consultant)
  • RBB (cost manager)

2021 - Belridge Secondary College Performing Arts Centre

  • McCorkell Constructions (contractor)
  • Iredale Pederson Hook Architects (consultant)
  • Rawlinsons (cost managers)

2020 - Bob Hawke College Stage 1

  • PACT Construction Pty Ltd (contractor)
  • T&Z Pty Ltd and Bateman Architects Pty Ltd (architects)
  • Rider Levett Bucknall Pty Ltd (cost managers).

 

Celebrating outstanding building suppliers and contractors 

Finance Supplier Performance Awards 2021 winners. (4 November 2021)

Exceptional supplier performance recognised by awards (24 November 2020)

Department of Finance recognises superior supplier performance (18 September 2019)

Outstanding construction performers recognised by Government (25 September 2018)

Head Contractor Apprentice and Training Award

In addition, we sponsor the Head Contractor Apprentice and Training Award at the Master Builders Association Apprentice of the Year awards. This award recognises the head contractor engaged by the Department of Finance that best employs and supports apprentices and trainees on non-residential government building projects.

  • 2019 winner – PACT Construction Pty Ltd
  • 2018 winner – ADCO Constructions Pty Ltd
  • 2017 winner – Perkins (WA) Pty Ltd.

Government recognises construction industry excellence (6 November 2019)
Finance affirms its support for a thriving construction industry (5 November 2018)
Perkins Builders wins apprenticeship award (24 November 2017)

Supplier Demerit Scheme

​Most suppliers do the right thing. However, a supplier that has performed poorly or breached a critical requirement may be managed through the Supplier Demerit Scheme.

​The Supplier Demerit Scheme (the Demerit Scheme) describes how we manage very poor performance. When a supplier fails to meet Departmental requirements (see Infractions below), we may apply one or more demerits. Suppliers earning three demerits within a three year period may receive a sanction. This is managed by our Supplier Demerit Committee.

Infractions

An infraction happens when a supplier fails to meet one or more of our prescribed critical requirements. Initially such matters are handled by the project manager through the terms and conditions of the contract. Serious infractions will be submitted to the Supplier Demerit Committee, which will consider whether a demerit should be applied.

Infractions are:

  • inadequate safety practices
  • failure to meet a critical contractual requirement
  • failure to perform to an acceptable standard
  • use of inappropriate building materials or methods without approval
  • unsatisfactory payment of subcontractors or subconsultants
  • failure to progress disputes with us in a reasonable, constructive and professional manner
  • non-payment of a debt owed to us
  • insufficient effort to meet Buy Local Policy tender commitments or contractual obligations
  • insufficient effort to meet Western Australian Industry Participation Strategy commitments or contractual obligations described in the Participation Plan
  • failure to meet Priority Start Policy tender commitments or contractual obligations, or a failure to submit the relevant reports under the policies within five days of the due date
  • failure of a consultant to allow the use of approved alternatives when specifying a proprietary product in a specification without written approval as required by Finance
  • specification of a nominated subcontractor in a drawing or specification without written approval as required by Finance
  • proof of a failure to deliver contract outcomes for another government agency
  • any act, omission or other matter that can be attributed to a supplier and causes loss or damage (financial or otherwise), risks a significant impact on our reputation or that we deem sufficient to make it inappropriate to contract with the supplier

Demerits

Where an infraction is referred to the Supplier Demerit Committee, the supplier has two weeks to explain why a demerit should not be applied. No explanation is taken as acceptance of the penalty.

The Committee will consider whether to apply one or more demerits, based on:

  • any information on past performance
  • information provided by the supplier
  • operational requirements
  • past precedents
  • any other information as applicable

Demerits will expire:

  • three years from the date the supplier is informed of the demerit
  • when a sanction has been fully served (see below)

Sanctions

Sanctions may be applied when a supplier has received three demerits. Before receiving the third demerit point, the supplier has two weeks to explain why the demerit should not be awarded, and why a sanction should not be applied. No explanation is taken as acceptance of the penalty.

Possible sanctions are:

  • downgrade of a contractor’s financial and/or technical prequalification status for a defined period
  • suspension of a contractor’s prequalification status for a defined period
  • making the supplier ineligible for contract award for a defined period
  • suspension from a panel or contracting framework for a defined period
  • downgrade or reduction of a supplier’s involvement in a panel or contracting framework for a defined period

Appeals

Suppliers can also appeal the Committee‘s decision within two weeks of notification of a demerit or sanction. Appeals can suggest that:

  • we failed to follow the Demerit Scheme process
  • we failed to take extenuating circumstances provided by the supplier into account

Supplier performance reporting templates

Referee reports should be used to assess suppliers under consideration for tenders, and performance reports should be used to assess suppliers who undertake contracts managed by Finance.

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