What is prequalification?
When seeking tenders for building works estimated to be greater then $300,000, the Department of Treasury and Finance’s Building Management and Works (BMW) business usually requires builders to be ‘prequalified’, in other words, to have already gone through a business risk process where BMW satisfies itself that a builder is capable of completing the work, and is financially stable. This is an important part of managing risk associated with building contracts.
Do I need to be prequalified to participate in the BER program?
The National School Pride Program comprises an estimated total of $100 million of BER funding across approximately 800 primary and secondary schools, with each school receiving between $50,000 and $200,000. Prequalification for this program of work is not required.
Primary Schools for the 21st Century comprises an estimated total of $1 billion of BER funding across approximately 650 primary schools, with each primary school receiving between $250,000 and $3 million of BER funding. The BER Taskforce will accept tenders from builders for these works, whether or not they are prequalified with BMW.
However, at the time of tender assessment, all builders, whether prequalified or not, will be required to undergo a business risk assessment which will include an analysis of a contractor’s:
- corporate structure;
- financial information;
- current workload information;
- internal contractor performance reports;
- external contractor performance reports; and
- external credit risk reports.
Primary Schools for the 21st Century - Registration of Interest
The BER program is a stimulus package that is being fast tracked by the BER Taskforce. We are keen to commence awarding tenders as quickly and efficiently as possible.
In order to gauge the construction industry’s capacity the BER Taskforce will be asking builders to register their interest to participate in this element of the BER Program.
Builders will be able to assist in expediting the awarding of tenders, by completing the Registration of Interest and at the same time provide as much information as possible for the business risk assessment to be initiated.
Not prequalified for the State Government Capital Works Program?
The BER Program is a federally funded stimulus package. In parallel with the BER program, the Western Australian Government is also delivering the State’s capital works program. In order to tender for these projects, we encourage builders to undergo the prescribed BMW prequalification process. Click here to download the “Builder’s Prequalification Scheme Information Pack and Application Form” (PDF 973 kB).
