The tender process in non-residential building projects
We generally use an open tender process to secure contractor/s to deliver works-related services valued over $250,000. Open tendering is also used to procure consultant services except where we have established a professional consultancy panel.
Other work, for example maintenance services, valued under $250,000 is typically purchased through a panel or a quotation process. See the Finding work with the Department of Finance page for other procurement methods.
Before a request is released, an Early Tender Advice (ETA) will be published on Tenders WA. The ETA is released at least four weeks before the request is released to notify industry about upcoming work.
In most cases a request is advertised on Tenders WA for a minimum of 10 working days. Where necessary, time extensions are notified as an addendum through Tenders WA.
The request document states the required tender assessment timeframe, typically either 42 or 56 days, depending on the scale of the contract. During this time, you cannot withdraw your tender without the written approval from Finance. Once the stated tender consideration period expires, your tender remains valid and may be accepted unless you request that your tender be withdrawn, or:
- we tell you that the contract has been awarded
- we tell you that the tender is rejected
During the evaluation process, we may contact you or other respondents and seek clarification or request other documents to be provided. We also generally undertake a financial risk assessment on the initially preferred tenderer/s. To help minimise lengthy tender evaluation periods, we request that you provide any necessary information as quickly as possible.
The open tender process will involve either a single or two-stage process (see below) and will often require you to respond to a set of weighted qualitative criteria. Examples of qualitative criteria include proposed methodology to complete the work or demonstrated experience with similar work.
Some requests require contractors to be prequalified under our Builders Prequalification Scheme. For more information on the Builders Prequalification Scheme, go to Qualify to build or construct on non-residential building projects.
Responses to the qualitative criteria are evaluated and compared with the submitted price to make a value for money decision. The What the Department of Finance works procurement policies mean for you page describes our minimum requirements for procurement and making value for money decisions.
Single-stage tenders (offers)Show more
A single stage tender may or may not involve qualitative criteria, depending on the project requirements. The request document will state if any qualitative criteria are applicable.
Where no qualitative criteria are used, the Request For Tender (RFT) involves a quantitative assessment of cost, where the outcome is based on the lowest-priced conforming offer provided that it represents value for money, and satisfies our due diligence requirements.
Where qualitative criteria are used, the evaluation panel will assess and rank responses using the qualitative criteria, followed by a quantitative assessment of cost. The panel then weighs up the value of each offer against its cost, and makes a value for money decision.
Two-stage tenders (offers)Show more
In a two-stage tender process, an EOI is first released to the open market and will state, if applicable, the prequalification level required (go to Qualify to build or consult on non-residential building projects for more information on the Builders Prequalification Scheme). This first stage requires any interested respondents to submit responses to qualitative criteria. The panel will evaluate the responses to the selection criteria and shortlist a number of respondents.
In the second stage, shortlisted respondents are invited to submit a priced tender.
Tenders are assessed by comparing the qualitative assessment scores from stage one against the tendered prices from stage two, to identify which offer provides the best value for money.