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Selection of tenderers

As previously stated, the most common tendering method for capital works projects is the 2 stage process. This entails obtaining registrations of interest or use of the Construction Supplier Register (CSR) pre-qualification register and shortlisting the most suitable tenderers.

The short listing of the expressions of interest stage or CSR shortlisting is followed by a detailed request for tender (RFT) process.

Projects over $200,000

Guidelines for tendering procedures on capital works projects in excess of $200,000 are that tenders must be sought from a short-list of pre-qualified building or specialist contractors or through public advertisement:

  • If advertised, an indication of the scope and size of the project should be included in the advertisement; but any reference to the estimated value of the works should not be included.
  • Advertisements are to be placed in a major metropolitan or regional newspaper within the Victorian Government Composite Advertisement, plus on the ‘Tenders Vic' web site, and if appropriate, in the local press.
  • A shortlist of tenderers will then be prepared from the registration of interest using agreed key selection criteria.

Key selection criteria

Key selection criteria for shortlisting contractors who have registered their interest in a project normally include but are not necessarily limited to:

  • compliance with the mandatory requirements set out in Ministerial Directions, and associated guides and practice notes
  • compliance with the mandatory requirements in respect of the Victorian government's occupation health and safety (OHS) and industrial relations policy
  • building practitioner number and registration category
  • affiliation
  • relevant experience
  • current workload
  • financial status
  • referees
  • size and structure of company
  • nominated personnel
  • ACN and ABN
  • environmental sustainability policies.

Key selection criteria, specific to each project, must be determined by the selection panel (SP) prior to tender advertisement. This includes:

  • the listing of mandatory criteria which must be met (these criteria are not weighted)
  • VIPP statement or certified VIPP plan (as applicable at the RFT stage only)
  • other criteria to be used to differentiate between tenders, including their respective weightings.

Number of tenderers

The department will normally include between 3 and 6 tenderers on a short list and generally will not be prepared to approve the acceptance of a tender where fewer than three competitive tenders have been sought.

However, approval may be given in exceptional circumstances such as:

  • when the urgency of the work is of overriding significance, for example, items of building safety, summer bushfire preparedness or it is imperative for the delivery of services to patients / clients and staff
  • where there are fewer than three firms who are capable of handling the particular project requirements
  • when fewer than three tenders have been received in response to an advertisement and the tenders are within 10% of the agreed estimate.

If no tenders / quotations have been received, approval should be sought from the department regarding the timing of seeking further tenders.