Construction of new infrastructure is a significant business activity of the Transport Agency. A significant proportion of the National Land Transport Fund is committed to state highway physical works annually, under contracts with a variety of suppliers.
In the SM031 you will find the information necessary to compile a contract document to suit the works you are about to construct. In using this manual you will achieve a consistent document format and set of rules, agreed with the industry, which will ensure the best possible endeavours of bidders and the successful tenderer.
The manual is for use by consultants when preparing state highway tender documents for traditional, design and construct, lump sum, alliancing and minor works and physical works construction contracts and is based on Transport Agency’s current best business practices.
Prequalification is a joint Transport Agency/industry initiative aimed at simplifying the physical works tendering process and reducing tendering costs. It′s an alternative procedure to what would normally be let under the Lowest Price Conforming or Price Quality Methods.
The prequalification process consists of contractors being evaluated over a range of quality criteria and then being registered for specific types and sizes of work. The Transport Agency tenders using prequalification will specify a minimum prequalification level and only contractors who are prequalified to at least the specified level will be able to submit a tender. Guidance on the correlation between the prequalification level, the selection of the supplier selection method and non-price attributes when using prequalification is provided within Part A – section 2.4 of the Transport Agency′s Contract procedures manual.
The supplier selection method used with prequalification is outlined in the table below:
|Level of complexity/risk||Estimated turn out cost||Supplier selection method|
|Low risk in all aspects||Less than $5 million||Lowest price conforming|
|Complex or high risk||Less than $5 million||Price quality methodology|
|All levels||More than $5 million||Price quality methodology|