Policies for government non-residential building projects

Policies that guide our procurement and contract management for maintenance, construction, design and investigation projects.

If you are interested in working with us, you need to understand our policies and how they are applied.

There are several WA Government and Finance policies that impact on our procurement processes and decisions. Click on the name of the policy to navigate directly to it.

Western Australian Industry Participation Strategy (WAIPS)

Show more
Aims to grow the WA economy through supply and job opportunities.

Where WAIPS applies, you will be required to submit a participation plan outlining how you will support and promote local industry. Your plan will be assessed as part of the evaluation process.

If your offer is successful, you will be required to report against these commitments at the end of the contract, and annually for contracts longer than 12 months..

To view this policy go to the Western Australian Industry Participation Strategy page.

Buy Local Policy

Show more
Aims to maximise opportunities for Western Australian businesses when bidding for State Government contracts.

This policy can make your offer more competitive at the evaluation stage if you:

Similarly, directly importing goods, services or other items may make your offer less competitive due to the Imported Content Impost.

Further information on the preferences and the imported content impost is outlined below.

To view this policy go to the Buy Local Policy page.

Regional Business Preference

Show more
Applying the regional business preference to works-related tenders (or offers) to support regional businesses.

As part of the Buy Local Policy, businesses with an office within a prescribed distance from the contract location may have their entire tendered price evaluated as though it was reduced by 5% (up to a maximum of $250,000 - GST inclusive).

Eligibility

To be eligible for this preference, your business must comply with the relevant conditions contained in the request document. Such conditions may include but may not be limited to:

  • maintaining a permanent operational office within a certain distance of the contracted works (as described in the tender)
  • having an established office from which it has conducted business for at least six months before the tender was released
  • being registered or licenced to operate in WA
  • managing and delivering most of the contract from the regional business location

Proving eligibility

You may be asked to prove you are eligible for the preference. Types of proof may include:

  • utility or electricity bills, land line phone bills
  • lease agreements
  • invoices issued to or from the regional office
  • documents that show work has been done or managed from the regional office

Exemptions

The regional business preference does not apply where offers from the following locations are included in the final analysis of tenders:

  • an Australian State or Territory
  • New Zealand
  • a country where a free trade agreement is in place and the contract value is over a certain amount

Regional Content preference

Show more
Applying the regional content preference to works-related tenders (or offers) to support regional businesses

​Businesses that purchase materials or services from ‘local’ businesses may have their tendered price evaluated as though it was reduced by 5% (up to a maximum of $250,000 (GST inclusive) of the 'regional content' portion of their price')..

Eligibility

To be eligible for this preference, your business must commit to:

  • use local subcontractors and subconsultants
  • source materials from local suppliers

To be regarded as 'local', subcontractors, subconsultants and suppliers must be located within the prescribed distance defined in the contract.

Regional content does not include costs for:

  • travel
  • accommodation
  • meals
  • wear and tear on plant and equipment
  • goods and services supplied by government agencies or the contract principal

Reporting requirements

Submitting a claim commits you to using the declared subcontractors, subconsultants and suppliers. Where you claim this preference, and the contract price is over $6 million (including GST), you must submit a monthly report showing you have met the claims made in your tender. Consultancy contracts and construction contracts valued under $6 million may also be required to report at times.

Exemptions

The regional content preference does not apply where offers from the following locations are included in the final analysis of tenders:

  • an Australian State or Territory
  • New Zealand
  • a country where a free trade agreement is in place and the contract value is over a certain amount

Avoiding common mistakes

Before submitting your claim, ensure that:

  • the subcontractors, subconsultants and suppliers are defined as ‘local’ (see eligibility)
  • you are clear on the requirements
  • you can meet the commitments you make

Imported Content Impost

Show more
Applying the imported content impost to works-related tenders (or offers) to help Western Australian businesses.

The imported content impost encourages businesses to purchase goods, services and other items from Australian businesses rather than importing them directly from overseas suppliers.

A bid that includes goods, services or other items that are sourced directly from overseas may be evaluated as though the portion of the price relating to the imported content has increased by 20%.

Exemptions

The imported content impost does not apply to services purchased separately or where the goods, services or other items are purchased from:

  • New Zealand
  • a country where a free trade agreement is in place and the contract value is over a certain amount

Declaring imported content

Where you will be using goods, services or other items that you directly purchase from an overseas supplier you must:

  • include the imported content on the Form of Tender
  • complete the Imported Content Declaration form and list all items sourced from overseas
  • ensure all costs of importing the goods, services or other items are included

Aboriginal Procurement Policy

Show more
Aims to maximise opportunities for Aboriginal businesses on State Government contracts.

​To support the State Government’s Aboriginal Procurement Policy, we:

  • may, subject to value-for money, directly engage a registered Aboriginal business to any value
  • apply an Aboriginal Business and Employment Tendering Preference (ABETP) to a maximum of $250,000. Further information on the ABETP is below
  • look for opportunities for registered Aboriginal businesses and joint ventures to join our panels
  • have a process in place for Aboriginal building contractors to apply to upgrade their prequalification status for a particular project. This allows registered Aboriginal businesses to apply for a Level 1 prequalification status, or upgrade their current prequalification status to tender for a specific project. Refer to the Qualify to build or consult on non-residential building projects page for information on the Builders Prequalification Scheme and the upgrade program. ​

To view this policy, go to the Aboriginal Procurement Policy page.

Aboriginal Business and Employment Tendering Preference (ABETP)

Show more
​Applying the Aboriginal Business and Employment Tendering Preference to works-related tenders (or offers) to increase opportunities for Aboriginal people.

Registered Aboriginal businesses, and businesses that employ Aboriginal people or contract with Aboriginal businesses, can have their tenders (or offers) evaluated as though their tender price was reduced by 10% (up to a maximum of $250,000 - including GST). The ABETP has separate preferences for:

  • Aboriginal businesses
  • Aboriginal subcontractors, subconsultants or suppliers
  • direct employment of Aboriginal persons

All three preferences may be claimed within one tender (or offer), up to a maximum of $250,000.

This preference is only for works-related procurement managed by the Department of Finance.

Eligibility

  • Aboriginal Businesses registered on the Aboriginal Business Directory WA or Supply Nation and may be:
    • a sole trader where the person is Aboriginal
    • a partnership or firm where at least 50% of the partners are Aboriginal
    • a corporation where Aboriginal persons own at least 50% of the legal entity submitting the tender.
  • Joint ventures with Aboriginal participation between any registered Aboriginal Business and a non-Aboriginal business where at least 50% of equity in the joint venture is owned by the registered Aboriginal Business (see definition of Aboriginal Business above)
  • Aboriginal employer – a legal entity that employs Aboriginal persons (defined as a person of Aboriginal descent who lives as such and is accepted by the community they live or lived in). This includes apprentices, trainees, subcontractors and suppliers

Reporting requirements

Submitting a claim commits you to using the declared subcontractors, subconsultants and suppliers. Where you claim this preference, and the contract price is over $6 million (including GST), you must submit a monthly report showing you have met the claims made in your tender. Consultancy contracts and construction contracts valued under $6 million may also be required to report at times.

Avoiding common mistakes

Before submitting your claims, ensure the Aboriginal business is registered on either the Aboriginal Business Directory WA or Supply Nation.

Submitting a claim commits you to using these Aboriginal businesses. You may need to submit a monthly report showing you have met the claims made in your tender. ​

You are not restricted to just one preference. A registered Aboriginal business that employs Aboriginal persons and engages registered Aboriginal businesses as suppliers or subcontractors can apply for all three preferences.

Value for Money Works Procurement Policy

Show more
Finance assesses both cost and non-cost factors to determine if a bid offers value for money

​Examples of the costs and non-cost factors that are assessed when selecting a supplier to deliver government works include:

Cost factors

  • initial construction costs
  • maintenance costs
  • usage costs

Non-cost factors

  • fit for purpose
  • technical and financial issues
  • supplier capability
  • sustainability
  • availability of maintenance

Open the Value for Money Policy for more information.

Open and Effective Competition Works Procurement Policy

Show more
Outlines Finance procurement thresholds and our commitment to transparent practice

Open and effective competition is about ensuring suppliers are provided with fair and equal access to work opportunities and that we act with transparency and integrity. This means we are committed to:

  • using consistent methods to approach the market and enter into contracts
  • publishing submitted prices for most construction tenders valued over $250,000
  • publishing contract award information for contracts valued over $50,000 (GST inclusive)
  • keeping respondents informed during the procurement process
  • providing feedback to unsuccessful respondents on request

Open the Open and Effective Competition Policy for more details.

Probity and Accountability Works Procurement Policy

Show more
Outlines our commitment to due process in all aspects of our procurement.

Probity and accountability means we act ethically, honestly and fairly when approaching the market, entering into contracts and managing contracts and are able to publicly account for our decisions. This means we:

  • do not disadvantage or advantage one supplier over another
  • keep supplier information confidential
  • communicate with suppliers consistently
  • are clear about who is responsible for decisions
  • maintain adequate records
  • comply with Finance and Government policies

We do this through:

  • communicating and enforcing expected behaviours
  • ensuring our staff are skilled, knowledgeable and experienced
  • using checks and balances throughout the procurement process

Open the Probity and Accountability Policy for more information.

Occupational Safety and Health Policy

Show more
Outlines our commitment to safe and healthy workplaces and building sites.

Priority Start Policy

Show more
Aims to provide more opportunities for apprentices and trainees on major Western Australian Government funded building, construction and maintenance contracts.

If you are a head contractor on a government contract valued over $5 million (including GST), you (and any subcontractors working on the contract with you) will be required to meet a target training rate. More information on this policy is available on the Department of Training and Workforce Development’s website.

Page reviewed 4 October 2019