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Eligibility criteria for Construction Supplier Register category Low value works projects

Eligibility criteria used to assess applications for pre-qualification to the Construction Supplier Register for suppliers applying to the category Low value works projects (projects with a value less than $500,000 (inclusive of GST)).

Entity structure

This eligibility criterion applies to the following pre-qualification categories:

  • All pre-qualification categories

Eligibility criteria

The applicant must be one of:

  • an individual or sole trader,
  • a company registered with the Australian Securities and Investments Commission,
  • a partnership.

The applicant has an Australian business Number (ABN) or Australian Company Number (ACN).

Guide to acceptable evidence

Evidence of the applicant’s business structure.

Evidence that the applicant has an Australian business Number (ABN) or Australian Company Number (ACN), or an extract from a relevant register.

Evidence of incorporation as a company or business operation, or an extract from a relevant register.

Note:  Overseas companies must meet the same requirements as local applicants.

Entity operation

This eligibility criterion applies to the following pre-qualification categories:

  • All pre-qualification categories

Eligibility criteria

The applicant has been in business for at least two years.

The applicant’s core business is construction works or construction related professional services appropriate to the pre-qualification category applied for.

Guide to acceptable evidence

List of completed projects, including details of the projects.

Report from two referees that indicate that the applicant practices in the category applied for and holds the level of experience expected of a competent practitioner of that category.

Works categories that require registration as building practitioner

This eligibility criterion applies to the following pre-qualification categories:

  • Low value works projects (projects with a value less than $500,000 (inclusive of GST))

Eligibility criteria

A company must hold registration with the Victorian Building Authority relevant to the pre-qualification category(ies) applied for.

At least one individual who is a registered director of a company must hold registration with the Victorian Building Authority relevant to the pre-qualification category(ies) applied for.

At least one individual who is a partner within a partnership must hold registration with the Victorian Building Authority relevant to the pre-qualification category(ies) applied for.

An individual or sole trader must hold registration with the Victorian Building Authority relevant to the pre-qualification category(ies) applied for.

Guide to acceptable evidence

A copy of the certificate of registration as a building practitioner issued by the Victorian Building Authority, or an extract from the register of building practitioners maintained by the Victorian Building Authority.  The registration must relate to the category or categories applied for.

Note:

The requirement for a company to hold registration as a building practitioner came into effect on 1 July 2018.  New applications for pre-qualification must meet this eligibility criterion.

A transition period applies to a company that held pre-qualification before 1 July 2018 but does not meet this eligibility criterion. The transition period varies depending on the category of pre-qualification held by the company.

For information, the following specific registrations apply to pre-qualification categories for works:

Pre-qualification category Regulatory Body Registration
Low value works projects (projects with a value less than $500,000 (inclusive of GST)) Victorian Building Authority

Commercial builder
or
Residential builder

Practice and experience in a pre-qualification category

This eligibility criterion applies to the following pre-qualification categories:

  • All pre-qualification categories

Eligibility criteria

The applicant practices in the category applied for, to the satisfaction of the Lead Agency.

The applicant holds experience in the category applied for, to the satisfaction of the Lead Agency.

The applicant has completed at least three projects of a similar size and complexity to the pre-qualification category applied for, to the satisfaction of the Lead Agency.

Guide to acceptable evidence

List of completed projects, including details of the project.

Report from two referees that indicate that the applicant practices in the category applied for and holds the level of experience expected of a competent practitioner of that category.

The referee questionnaire covers a range of performance criteria including:

  • timeliness
  • quality
  • management of the project
  • resource management
  • documentation
  • administration
  • health and safety management
  • environmental management

Commitment to Supplier Code of Conduct

This eligibility criterion applies to the following pre-qualification categories:

  • All pre-qualification categories

Eligibility criteria

The applicant has made a commitment to aspire to meet the Supplier Code of Conduct.

Guide to acceptable evidence

Commitment letter for the Supplier Code of Conduct, in the form set out by the Lead Agency.

Insurance – minimum required

This eligibility criterion applies to the following pre-qualification categories:

  • Low value works projects (projects with a value less than $500,000 (inclusive of GST))

Eligibility criteria

Where the applicant will provide advisory or consulting services, the applicant holds professional indemnity insurance that provides, at a minimum:

  • Claims made based policy with an amount of no less than $2 million AUD.
  • This policy must contain a run off cover period of 7 years.

Where the applicant will undertake any construction, modification or demolition works, or will provide advisory or consulting services, the applicant holds public liability insurance that provides, at a minimum:

  • Occurrence based policy with an amount of no less than $10 million AUD.
  • Contains a cross-liability and waiver of subrogation clause.
  • Clear definition for third party injury and property damage.

Where the applicant will manufacture, maintain or modify any products, the applicant holds product liability insurance that provides, at a minimum:

  • Occurrence made based policy with an amount of no less than $10 million AUD. 
  • Contains a cross-liability and waiver of subrogation clause.
  • Clear definition for third party injury and property damage

Applicant has a Victorian WorkCover insurance policy or proof of self-insurance that covers all personnel engaged in the delivery of services.

Guide to acceptable evidence

Evidence of current insurance policies, in the name of the applicant.

Copy of insurance certificate of currency, in the name of the applicant.

Insurance compliance declaration, when issued  to the applicant.

Evidence that the applicant has a Victorian WorkCover insurance policy or proof of self-insurance that covers all personnel engaged in the delivery of services.

Copy of Victorian WorkCover premium notice.

Note: This insurance criterion assesses minimum levels of insurance.  If the applicant is engaged to undertake works or services, the contract may require different types of insurance, or insurance with higher values.  If this is the case, the applicant will be required to provide evidence to the party that engaged it that it holds the different or higher levels of insurance.

Occupational health and safety management

This eligibility criterion applies to the following pre-qualification categories:

  • Low value works projects (projects with a value less than $500,000 (inclusive of GST))

Eligibility criteria

The applicant has Occupational Health and Safety management processes that meets the criteria set out in Mandatory evaluation criteria for Occupational Health and Safety management (Attachment 1 to Instruction 3.7), as determined by an assessor appointed by the Lead Agency.

Guide to acceptable evidence

The applicant’s Occupational Health and Safety management processes, including documentary evidence that the processes are in use, have been assessed as meeting the criteria set out in Low value works projects Guide on the mandatory Occupational Health and Safety management criteria by an assessor appointed by the Lead Agency.

Industrial relations management

This eligibility criterion applies to the following pre-qualification categories:

  • All pre-qualification categories for works

Eligibility criteria

The applicant’s Industrial Relations management self-assessment meets the criteria set in Mandatory evaluation criteria (Instruction 3.7.3(c) Attachment 2 in the Instructions for Public Construction Procurement, to the satisfaction of the Lead Agency.

Guide to acceptable evidence

The applicant Industrial Relations management self-assessment has been assessed as meeting the criteria set in Instruction 3.7.3.

Financial standing

This eligibility criterion applies to the following pre-qualification categories:

  • Low value works projects (projects with a value less than $500,000 (inclusive of GST))

Eligibility criteria

The financial standing of the applicant has been assessed as acceptable, to the satisfaction of the Lead Agency.

Guide to acceptable evidence

Opinion, signed by the applicant’s accountant using a form provided by the Lead Department, that for the last financial year the applicant met certain financial performance standards.

Financial statements (including profit and loss statements, balance sheets and notes to accounts) covering at a minimum the last two financial years, prepared in accordance with Australian Accounting Standards

Financial opinion and / or statements and checks with credit reference agencies are used to confirm that for the last financial year the applicant has:

  • Positive Tangible Net Worth
    Tangible Net Worth is defined as ((Total assets – intangibles) - (Total Liabilities))
  • Positive Working Capital 
    Working Capital is defined as (Current assets - Current liabilities)
  • Current Ratio must be a minimum of 1
    Current Ratio means (Current asset / Current Liabilities)

The financial standing of the applicant has been assessed as acceptable by an assessor appointed by the Lead Agency. This assessment may consider:

  • History of paying creditors on time – the Lead Agency talks to trade suppliers, subcontractors and other referees to determine the payment history. Consistently late payment is an indicator of potential financial difficulty.
  • Credit rating – a credit rating assessment may be required in certain circumstances and will be carried out by a licensed credit rating agency.

Maximum project limit an applicant may perform

For all works categories the maximum project value an applicant may perform is determined by considering the financial standing of the applicant and the applicant’s project history.

The Lead Agency will determine the maximum project value.

The maximum project-value limit will not be higher than the highest value project completed by the applicant in the pre-qualification category applied for, provided the applicant’s financial standing can support projects of that value.

This eligibility criterion applies to the following pre-qualification categories:

  • Low value works projects (projects with a value less than $500,000 (inclusive of GST))

Eligibility criteria

The maximum project limit is $499,999 (inclusive of GST).

The financial standing of the applicant has been assessed as acceptable, to the satisfaction of Lead Agency.

The applicant has completed at least three projects relevant to the pre-qualification category and maximum project value, to the satisfaction of the Lead Agency.

Guide to acceptable evidence

Evidence as set out for financial standing.

Evidence as set out for practice and experience in a pre-qualification category.

Application form

This eligibility criterion applies to the following pre-qualification categories:

  • All pre-qualification categories

Eligibility criteria

Correctly and fully completed the application forms (online and electronic versions), to the satisfaction of the Lead Agency.

Submission of examples of registrations, work history or operational documents as applicable to the pre-qualification category, to the satisfaction of the Lead Agency.

Guide to acceptable evidence

Correctly and fully completed the Application Forms (online and electronic version)

Submission of examples of registrations, work history or operational documents as applicable to the pre-qualification category.

Help and support

Please contact the Construction Supplier Register if you need help understanding the eligibility criteria we use to assess applications to the Construction Supplier Register.

Reviewed 24/09/2020
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