national prequalification system – proposed new categories for … · new categories in the two...

National Prequalification System – Proposed New Categories

Overview

Proposed New Categories

Precast Concrete Products

Steel Fabrication

Making a Submission

Frequently Asked Questions

Contacts

About Austroads

Seeking feedbackAustroads is seeking feedback on a proposal to add two new specialist categories to Australia’s National Prequalification System:

• Precast Concrete Products• Steel Fabrication.

This document provides an overview of the proposal, detailed information about the new categories, information about making a submission and responds to frequently asked questions.

Submissions are due 19 December 2014.


Overview



Steel Fabrication

Making a Submission


Contacts

About Austroads

Overview

Currently, various state and territory road agencies locally administer the Austroads National Prequalification System for Civil (Road and Bridge) Construction Contracts. This is known as the National Prequalification System.

Under the National Prequalification System, contracting entities wishing to prequalify in road and bridge construction categories are assessed and managed using identical criteria and in line with national rules and procedures. Once prequalified by one road agency participating in the administration of the National Prequalification System, an entity can seek recognition of its prequalification status from other such agencies.

Some state and territory road agencies also prequalify entities in specialist areas related to road and bridge construction. Specialist categories are currently excluded from the National Prequalification System and are managed by those agencies either as local ‘add-ons’ to the system, or under separate jurisdictional schemes. As a consequence, the specialist categories used across the jurisdictions are not consistent, including with respect to requirements that must be met by applicants and prequalified contractors. Also, specialist contracting entities are not able to access the mutual recognition framework under the National Prequalification System, which means those wishing to work across jurisdictional boundaries must currently lodge separate prequalification applications with each relevant road agency. This is administratively cumbersome and results in additional, unnecessary cost to both contracting entities and assessing agencies.

The National Prequalification System Management Committee has identified two specialist areas where the development of new national categories could be beneficial:• Precast Concrete Products• Steel Fabrication.

Full details of the proposed specialist categories are presented in two separate draft reports, each of which addresses the nominated specialist areas in detail. The reports include a thorough description of the proposed new categories, background to their development, the minimum requirements that are proposed to be met for prequalification, the mutual recognition framework, and how the categories (and contractors prequalified in them) will be managed at the national level.


Overview



Steel Fabrication

Making a Submission


Contacts

About Austroads


The National Prequalification System Management Committee has identified two specialist areas where the development of new national categories could be beneficial:• Precast Concrete Products• Steel Fabrication.

The inclusion of the new categories within the National Prequalification System aims to:

• promote safe, consistent and high-quality manufacturing of precast concrete and complex steel products that meet the participating authorities’ specifications and requirements

• ensure that all precast concrete and complex steel products used in the participating authorities’ projects are obtained from facilities that are appropriately prequalified.


Overview



Steel Fabrication

Making a Submission


Contacts

About Austroads


This report focuses specifically on the area of precast concrete products and presents four separate categories for potential inclusion into the National Prequalification System:

• Pretensioned (routine)

• Pretensioned reinforced components (complex)

• Precast products

• Pipes and poles

The report includes draft system documentation including prequalification guidelines, application form, registration form for mutual recognition and performance reporting.

The report will be updated to take into account outcomes of the industry consultation process and finalised following formal endorsement from Austroads.

Double click on the paper clip to open the report >>

National Prequalification System – Inclusion of Specialist Precast Concrete Categories

Prepared By Elisa Casey

Publisher Austroads Ltd. Level 9, 287 Elizabeth Street Sydney NSW 2000 Australia

Phone: +61 2 9264 7088 [email protected] www.austroads.com.au

Project Manager

Michael Swainston

Abstract This report presents the outcomes of the harmonisation work undertaken by Austroads to develop new specialist precast concrete product categories for inclusion in the Austroads National Prequalification System for Civil (Road and Bridge) Construction Contracts. Road agencies that adopt these categories will be able to offer mutual recognition arrangements to prequalified contractors subject to specified restrictions and conditions.

About Austroads

Austroads’ purpose is to: • promote improved Australian and New Zealand

transport outcomes • provide expert technical input to national policy

development on road and road transport issues

• promote improved practice and capability by road agencies.

• promote consistency in road and road agency operations.

Austroads membership comprises: • Roads and Maritime Services New South

Wales • Roads Corporation Victoria • Department of Transport and Main Roads

Queensland • Main Roads Western Australia • Department of Planning, Transport and

Infrastructure South Australia • Department of State Growth Tasmania • Department of Transport Northern Territory • Department of Territory and Municipal Services

Australian Capital Territory • Commonwealth Department of Infrastructure

and Regional Development • Australian Local Government Association • New Zealand Transport Agency.

The success of Austroads is derived from the collaboration of member organisations and others in the road industry. It aims to be the Australasian leader in providing high quality information, advice and fostering research in the road transport sector.

Keywords

Prequalification, harmonisation, contract, mutual recognition, prequalification system, national prequalification system for civil (road and bridge) construction contracts.

Austroads Project No. TS1807

Published November 2014

Pages 114

© Austroads Ltd 2014

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without the prior written permission of Austroads.

This report has been prepared for Austroads as part of its work to promote improved Australian and New Zealand transport outcomes by providing expert technical input on road and road transport issues.

Individual road agencies will determine their response to this report following consideration of their legislative or administrative arrangements, available funding, as well as local circumstances and priorities.

Austroads believes this publication to be correct at the time of printing and does not accept responsibility for any consequences arising from the use of information herein. Readers should rely on their own skill and judgement to apply information to particular issues.


Austroads 2014 | page i

Summary

Currently, various state and territory road agencies locally administer the Austroads National Prequalification System for Civil (Road and Bridge) Construction Contracts (‘National Prequalification System’). Under the National Prequalification System, contracting entities wishing to prequalify in road and bridge construction categories are assessed and managed using identical criteria and in line with national rules and procedures. Once prequalified by one road agency participating in the administration of the National Prequalification System, an entity can seek recognition of its prequalification status from other such agencies.

Some state and territory road agencies also prequalify entities in specialist areas related to road and bridge construction. Specialist categories are currently excluded from the National Prequalification System and are managed by those agencies either as local ‘add-ons’ to the system, or under separate jurisdictional schemes. As a consequence, the specialist categories used across the jurisdictions are not consistent, including with respect to requirements that must be met by applicants and prequalified contractors. Also, specialist contracting entities are not able to access the mutual recognition framework under the National Prequalification System, which means those wishing to work across jurisdictional boundaries must currently lodge separate prequalification applications with each relevant road agency. This is administratively cumbersome and results in additional, unnecessary cost to both contracting entities and assessing agencies.

In 2012, the National Prequalification System Management Committee identified a number of specialist areas where the development of new national categories could be beneficial, including:

• precast concrete products

• steel fabrication.

This Austroads project aims to define proposed new specialist categories in each of these two areas and explain how they can be incorporated into the National Prequalification System.

Full details of the proposed new specialist categories are presented in two separate draft Research Reports (including this report), each of which address one of the nominated specialist areas in detail. The reports include a thorough description of the proposed new categories, background to their development, the minimum requirements that are proposed to be met for prequalification, the mutual recognition framework, and how the categories (and contractors prequalified in them) will be managed at the national level.

Both reports will be released for a period of formal industry consultation to ensure that relevant contracting entities, industry groups and other stakeholders are able to provide input into the proposed national specialist categories before they are finalised and implemented by the various agencies that choose to adopt them.

This report focuses specifically on the area of precast concrete products and presents four separate categories for potential inclusion into the National Prequalification System, including a number of appendices containing draft system documentation (e.g. guidelines, application form, etc.). The report will be updated to take into account outcomes of the industry consultation process and finalised following formal endorsement from Austroads.


Austroads 2014 | page ii

Acknowledgements

Austroads acknowledges the role and contribution of the project Working Group in providing guidance and information for the preparation of this report. The project Working Group comprised the following members:

Mr Michael Swainston Department of Transport and Main Roads, Queensland

(Project Manager)

Mr Wayne Roberts Department of Transport and Main Roads, Queensland

Mr Paul Adams Department of Transport and Main Roads, Queensland

Ms Linda Ziebell Department of Transport and Main Roads, Queensland

Mr Peter Bamford Roads and Maritime Services, New South Wales

Mr Brian Bestwick Roads and Maritime Services, New South Wales

Mr Houman Hatamian Roads and Maritime Services, New South Wales

Mr Hamid Fatemi Roads and Maritime Services, New South Wales

Mr Kumar Ponnampalam Roads and Maritime Services, New South Wales

Mr Narendra Tripathi Roads and Maritime Services, New South Wales

Mr Richard Edwards Department of Transport, Planning and Infrastructure, South Australia

Mr John Houghton Main Roads, Western Australia

Mr Neville Schmidt VicRoads, Victoria

Mr Andrew Walker VicRoads, Victoria

Ms Lee-Anne Aldwell Commerce and Works Directorate, Australian Capital Territory

Ms Cindy-Lee McDonald Department of Construction, Northern Territory

Ms Annette Williams Department of Business, Northern Territory

Ms Genevieve Rider Department of State Growth, Tasmania

Mr Stephen Ward Contractor Accreditation Ltd.


Austroads 2014 | page iii

Contents

1. Introduction ............................................................................................................................................... 1 1.1 Definitions ................................................................................................................................................... 1 1.2 What is Prequalification? ............................................................................................................................ 1 1.3 Austroads National Prequalification System ............................................................................................... 2

1.3.1 Development .................................................................................................................................. 2 1.3.2 Implementation ............................................................................................................................... 3 1.3.3 Administration and Governance ..................................................................................................... 3 1.3.4 Inclusion of Specialist Categories .................................................................................................. 4

1.4 Project Overview ......................................................................................................................................... 4 1.5 Project Reports ........................................................................................................................................... 5

1.5.1 Overview ........................................................................................................................................ 5 1.5.2 Structure of This Report ................................................................................................................. 5

2. Project Method .......................................................................................................................................... 6 2.1 Establishment of Project Working Group .................................................................................................... 6 2.2 Adoption of Guiding Principles .................................................................................................................... 6 2.3 Development and Implementation of Specialist Categories ....................................................................... 8

2.3.1 Step 1: Review and Compare Existing Specialist Categories ....................................................... 8 2.3.2 Step 2: Harmonise and Develop Draft National Categories .......................................................... 9 2.3.3 Step 3: Document Proposed National Prequalification System Expansion and Consult............... 9 2.3.4 Step 4: Finalise National Prequalification System Expansion Framework and

Supporting Documentation ............................................................................................................. 9 2.3.5 Step 5: Adoption of New Categories by Participating Authorities ................................................ 10 2.3.6 Step 6: Transition of Currently Prequalified Entities .................................................................... 10 2.3.7 Step 7: Ongoing Administration and Governance........................................................................ 10

3. Harmonisation and Category Development ......................................................................................... 11 3.1 Review and Comparison of Existing Systems/Schemes .......................................................................... 11

3.1.1 Characteristics of System/Scheme Frameworks ......................................................................... 11 3.1.2 Characteristics of Application Requirements ............................................................................... 12

3.2 Harmonisation Focus Areas...................................................................................................................... 14 3.2.1 Category Descriptors ................................................................................................................... 14 3.2.2 Eligible Entities ............................................................................................................................. 14 3.2.3 Site Assessments ......................................................................................................................... 15 3.2.4 Financial Capacity ........................................................................................................................ 16 3.2.5 Certification of Management Systems ......................................................................................... 17

4. Proposed National Precast Concrete Categories ................................................................................ 18 4.1 Overview ................................................................................................................................................... 18

4.1.1 Category Details ........................................................................................................................... 18 4.1.2 Objectives ..................................................................................................................................... 19 4.1.3 Scope and Applicability ................................................................................................................ 19 4.1.4 Administration............................................................................................................................... 19


Austroads 2014 | page iv

4.2 Prequalification Status and Recognition Arrangements ........................................................................... 20 4.2.1 Prequalification Status Types ....................................................................................................... 20 4.2.2 Performance Levels ..................................................................................................................... 20 4.2.3 Mutual Recognition Framework ................................................................................................... 21

4.3 Eligibility Criteria ....................................................................................................................................... 23 4.4 Assessment Criteria .................................................................................................................................. 25

4.4.1 Financial Capacity ........................................................................................................................ 26 4.4.2 Management Systems ................................................................................................................. 26

4.5 Assessment Process ................................................................................................................................ 26 4.5.1 Desktop Assessment ................................................................................................................... 26 4.5.2 Site Assessment .......................................................................................................................... 27

4.6 Maintenance of Prequalification Status .................................................................................................... 28 4.6.1 Responsibilities of Prequalified Contractors ................................................................................ 28 4.6.2 Periodic Reviews .......................................................................................................................... 28 4.6.3 Performance Monitoring and Reporting ....................................................................................... 28

4.7 Upgrading Prequalification Status ............................................................................................................ 29 4.8 Sanctions, Reviews and Appeals ............................................................................................................. 29

4.8.1 Sanctions ...................................................................................................................................... 29 4.8.2 Reviews and Appeals ................................................................................................................... 31

4.9 Prequalified Tendering .............................................................................................................................. 31

5. Transition and Implementation.............................................................................................................. 33 5.1 Inclusion of New Specialist Categories into the National Prequalification System ................................... 33 5.2 Transition of Currently Prequalified Entities .............................................................................................. 33 5.3 Transition and Implementation Arrangements .......................................................................................... 33

6. Conclusions and Recommendations .................................................................................................... 35

References ...................................................................................................................................................... 36 Appendix A Characteristics of Current Prequalification Systems and Schemes ............................... 37 Appendix B Prequalification Guidelines .................................................................................................. 60 Appendix C Prequalification Application Form ...................................................................................... 78 Appendix D Registration Form for Mutual Recognition ......................................................................... 90 Appendix E Performance Report ............................................................................................................. 93 Appendix F Performance Report Scoring Guide .................................................................................. 102 Tables Table 3.1: National Prequalification System financial levels ...................................................................... 16 Table 4.1: National category descriptors ................................................................................................... 18 Table 4.2: Prequalification status types ..................................................................................................... 21 Table 4.3: Entities eligible for prequalification ............................................................................................ 24 Table 4.4: Assessment criteria (and sub-criteria) for prequalification ........................................................ 25 Figures Figure 1.1: Generic prequalification, tender and contract delivery process .................................................. 1 Figure 2.1: Approach to category development and implementation ............................................................ 8 Figure 4.1: Overview of the National Prequalification System and its relationship to tendering ................. 23 Figure 4.2: Assessment process (multi-jurisdiction applications) ............................................................... 27 Figure 4.3: Sanctions process ..................................................................................................................... 30 Figure 4.4: Review and appeals process .................................................................................................... 31


Austroads 2014 | page 1

1. Introduction

Definitions 1.1

In this report, unless the context precludes it, the following terms have the following meanings:

• National Prequalification System means the Austroads National Prequalification System for Civil (Road and Bridge) Construction Contracts implemented by participating authorities in January 2011

• participating authority refers to an Australian state or territory road agency that has adopted the National Prequalification System

• prequalified contractor refers to an applicant that has been awarded prequalification under the National Prequalification System

• tender includes quotation, proposal or registration/expression of interest.

What is Prequalification? 1.2

Prequalification is a strategy used by Australian state and territory road agencies to screen potential contractors for works and services on the basis of their organisational, technical and financial capacity/capability and past experience.

Successfully achieving prequalification is not a guarantee of contract work – rather, it is a precursor to participation in the delivery of road agency contracts (whether as a tenderer or as a supplier of products to a contractor), as broadly illustrated in Figure 1.1. In other words, prequalification is used to assess and classify entities that may be eligible to participate in future procurement processes for which prequalification in a particular category or level is a stated requirement.

Figure 1.1: Generic prequalification, tender and contract delivery process

Source: Based on Austroads (2010).

Submission of prequalification

application

Prequalification assessment

Prequalification award

Request for tender

Submission of tender

Contract award Contract delivery and performance monitoring

Tender assessment

Notification of local

requirements

START

Supply

product



The use of prequalification is considered beneficial for road agencies as it helps mitigate contractual risk by ensuring contracted projects are only delivered by entities that have been appropriately vetted. Prequalification is also broadly supported by industry as it has the effect of reducing the amount of information to be provided by respondents to a tender process.

Austroads National Prequalification System 1.3

Development 1.3.1

Prequalification systems or schemes were adopted by the various state and territory road agencies in the 1980s and have been progressively reviewed, refined and enhanced over time to meet the evolving needs of road agencies and industry, and to respond to legislative and regulatory changes in areas such as safety and environmental management.

Until recently, all prequalification systems or schemes in the civil (road and bridge) sector were managed at jurisdictional level, which meant that each individual road agency established, advertised and administered its own set of jurisdiction-specific categories. Contracting entities working across multiple jurisdictions were required to prequalify separately with each relevant road agency in order to become eligible to tender for work in those jurisdictions.

An unintended consequence of the use of individual prequalification regimes in each state and territory is that they have acted as barriers for entities seeking to work in more than one jurisdiction (Austroads 2010).

A review by state and territory road agencies in 2010 found that despite the number of different prequalification regimes in place at that time, there was a reasonable degree of commonality in the baseline requirements for prequalification in the ‘core’ road and bridge construction categories used by the various agencies. Consequently, the road agencies took the view that a harmonised approach would be possible which, in turn, would enable a mutual recognition framework to be implemented, reducing duplication of effort and unnecessary cost for both road agencies and industry.

During this period, the Council of Australian Governments’ Infrastructure Working Group (COAG IWG) also expressed a commitment to achieving harmonisation and mutual recognition across government agency prequalification regimes in the building and construction sector.

The COAG is the peak intergovernmental forum in Australia whose role is to initiate, develop and monitor the implementation of policy reforms of national significance that require cooperative action by Australian governments. The IWG consists of senior officers from relevant State, Territory and Australian Government departments and the Australian Local Government Association. It reports to the COAG through the Standing Council on Transport and Infrastructure.

The agreed IWG objectives are:

• better coordination of infrastructure planning and investment across the nation; across governments and the private sector

• identification and removal of blockages to productive investment in infrastructure.



In 2010, following discussions between Austroads and the COAG IWG, Austroads established a formal project to develop and implement a new Austroads national system that would represent a single harmonised approach to prequalification in the area of civil (road and bridge) construction, and which would enable the introduction of a mutual recognition framework. The COAG IWG had requested that Austroads establish this national prequalification system for contracts valued at over $50 million. However, Austroads took the view that the benefits of harmonisation and mutual recognition should not be limited to ‘top tier’ entities only, on the bases that:

• minimising administrative burden (and cost) was a worthwhile objective for the wider industry, including assessing agencies and potential contractors

• reducing barriers to entry could provide an incentive for small-to-medium-sized entities to expand and grow their businesses outside regional borders, which could have industry-wide benefits.

As a result, Austroads decided to develop and implement a national prequalification system that would apply at all financial levels.

Implementation 1.3.2

The Austroads National Prequalification System, which includes a range of road and bridge construction categories and financial levels, was implemented in full on 1 January 2011 by Australian state and territory road agencies in all jurisdictions except the NT (which has implemented the system only for contracts at the $50 M + level). These agencies are hereafter referred to as the ‘participating authorities’.

Administration and Governance 1.3.3

The National Prequalification System is a national system, administered locally. In other words, applicants for prequalification in road and bridge construction categories are assessed and managed by the participating authority of their choice (generally, the local state or territory road agency) using nationally agreed criteria and in line with national rules and procedures.

Once prequalified by one participating authority, these entities (hereafter referred to as ‘prequalified contractors’) can access the mutual recognition benefits of the National Prequalification System by obtaining recognition of their prequalification status from other participating authorities, subject to any specific documented conditions and restrictions. This reduces administrative burden and red tape for both participating authorities and contracting entities working across jurisdictions; promotes consistency, cooperation and information-sharing amongst the participating authorities; and drives improved practices across the civil construction sector.

A National Prequalification System Management Committee (‘Management Committee’) was established to provide general oversight and governance of the National Prequalification System. The Management Committee’s functions include addressing any issues occurring nationally, managing and coordinating national sanctions and appeals processes, and continuously improving and evolving the National Prequalification System such that it maintains relevance and applicability.

The Management Committee comprises knowledgeable and experienced representatives from all of the participating authorities. Its membership, role, and responsibilities are formalised through terms of reference and operating procedures



Inclusion of Specialist Categories 1.3.4

Some participating authorities also prequalify in specialist areas related to road and bridge construction and/or maintenance, e.g. traffic management, line-marking, product supply, etc. Specialist categories are currently excluded from the National Prequalification System and are therefore managed at jurisdictional level – either as local ‘add-ons’ to the system, or by way of separate registration or accreditation schemes. As such, the specialist categories used by the various road agencies are not currently consistent, including with respect to category types, category descriptions, requirements for applicants and prequalified entities, assessment criteria and processes, prequalification registration periods, and terms and conditions of prequalification.

As a consequence of this lack of consistency, specialist entities are not able to access the mutual recognition framework currently enjoyed by prequalified contractors under the National Prequalification System. This means that specialist entities interested in tendering for contract work and/or supplying products for contracted works in multiple jurisdictions must lodge separate prequalification applications with road agencies in each of the relevant jurisdictions, resulting in duplication of effort for both the applicants and the assessing agencies.

To address this, the Research Report detailing the original framework for the National Prequalification System suggested that a future expansion of the National Prequalification System to include specialist categories would be desirable (Austroads 2010).

At its meeting on 2 March 2012, the Management Committee identified a number of similar specialist categories being administered by multiple jurisdictions, and noted that entities prequalified in those categories at the jurisdictional level were capable of working across jurisdictional boundaries. The Management Committee agreed it would be beneficial to bring those particular categories into the National Prequalification System.

A proposal for an expansion of the National Prequalification System to include the nominated specialist categories was put to the Austroads Board and subsequently endorsed, leading to the creation of this Austroads Project TS1877. Commentary 1

Project Overview 1.4

The objective of Austroads Project TS1877 is to expand the Austroads National Prequalification System to include new specialist categories in the following two areas:

• precast concrete products

• steel fabrication.

This project will deliver a single harmonised approach to how categories in these two specialist areas are defined, and establish consistent processes for assessing applications for prequalification and managing specialist prequalified contractors. Under the expanded National Prequalification System, an applicant that achieves prequalification with a participating authority in one or more of the specialist categories will be able to obtain recognition of its prequalification status from other participating authorities that have adopted those categories, subject to any nominated restrictions and conditions.

This project is in line with:

• Austroads leadership strategic priority through the harmonisation of national contractor prequalification approaches throughout jurisdictions, in support of the COAG IWG’s national reform agenda

• Austroads Technology Program output: Nationally harmonised project delivery initiatives.



Project Reports 1.5

Overview 1.5.1

The key outputs of Austroads Project TS1877 are two separate Research Reports that outline the project findings, define the proposed specialist categories, describe how the National Prequalification System can be expanded to incorporate them (including how currently prequalified specialist entities in jurisdictional schemes will be transitioned), and include draft National Prequalification System documentation (e.g. guidelines, application forms, etc.).

The reports are:

• National Prequalification System – Inclusion of Specialist Precast Concrete Categories (this report).

• National Prequalification System – Inclusion of a Specialist Steel Fabrication Category.

Structure of This Report 1.5.2

This report is structured as follows:

• Main text, including this introduction (Section 1); a description of the project method which includes the guiding principles applied to the development of the new specialist categories (Section 2); an outline of the harmonisation work undertaken in the area of precast concrete products (Section 3); summary details of the proposed new specialist precast concrete categories (Section 4); an overview of the recommended implementation process, including transition arrangements (Section 5); and final conclusions and recommendations (Section 6).

• A comparative summary of the characteristics of current jurisdictional prequalification/registration/accreditation processes and requirements in the area of precast concrete products (Appendix A).

• A number of additional appendices, based on existing National Prequalification System documentation (Austroads 2010), that have been tailored by the project Working Group for use in supporting the administration of the proposed new categories:

– draft prequalification guidelines for the proposed new national precast concrete categories (Appendix B)

– draft application form for the proposed new national precast concrete categories, which details the minimum requirements to be met to satisfy the assessment criteria for prequalification (Appendix C)

– registration form for mutual recognition (Appendix D)

– template performance report (Appendix E)

– performance report scoring guide (Appendix F).



2. Project Method

The approach taken to the delivery of Austroads Project TS1877 is described in this Section 2.

Establishment of Project Working Group 2.1

This project is supported by a project Working Group consisting of senior prequalification and technical personnel from the following Austroads member agencies:

• Department of Transport and Main Roads, QLD

• Roads and Maritime Services, NSW

• Commerce and Works Directorate, ACT

• VicRoads, VIC

• Department of State Growth, TAS

• Department of Planning, Transport and Infrastructure, SA

• Main Roads WA

• Department of Infrastructure, NT

• Department of Business, NT.

The project Working Group has taken a practical, problem-solving approach to the process of harmonisation, in consultation with industry, with a view to developing new specialist categories for inclusion into the National Prequalification System that:

• meet the needs of the participating authorities, particularly with respect to risk management

• accommodate local requirements wherever possible

• reduce administrative burden for participating authorities

• minimise red tape and reduce barriers to entry for specialist entities in the nominated areas

• reflect current best practice in the relevant area of specialisation

• are acceptable to industry.

Adoption of Guiding Principles 2.2

A number of high-level guiding principles focusing on the overarching system framework for the proposed new specialist categories and critical success factors for implementation were adopted by the project Working Group to assist in its decision-making. These guiding principles are:

• Risk mitigation

– Prequalification is a risk mitigation strategy for Australian road agencies.

• Adoption of category(s)

– It will not be mandatory for participating authorities to adopt the new National Prequalification System specialist categories. However, should a participating authority decide to administer a prequalification category in the nominated specialist areas and covering the same subject-matter, it will be required to adopt the relevant National Prequalification System category(s).



• Alignment with pre-existing local requirements

– National Prequalification System specialist category descriptors will be aligned with pre-existing jurisdictional descriptors wherever possible.

– Requirements for prequalification in the National Prequalification System specialist categories will make provision for pre-existing jurisdictional requirements where feasible and appropriate. Where not feasible or appropriate, compliance with jurisdictional requirements may be managed outside of prequalification, including through tender processes.

• Industry consultation

– The National Prequalification System specialist categories will be developed in consultation with industry – particularly entities currently prequalified in similar jurisdictional categories, other non-prequalified entities working in the nominated specialist areas and relevant industry groups.

• Documentation

– Prequalification documentation will be concise and descriptive.

– Details of the minimum standards required for prequalification will be included in the application form to assist applicants.

– Participating authorities adopting one or more of the National Prequalification System specialist categories must also adopt the agreed National Prequalification System application form and guidelines, to ensure consistency and support the integrity of the system.

• Terms and conditions of prequalification

– Applicants for prequalification in the National Prequalification System specialist categories may be required to undergo an assessment of financial capacity in order to demonstrate ongoing financial solvency.

– Prequalified contractors in the National Prequalification System specialist categories will be bound by similar terms and conditions as those prequalified in road and bridge categories, and will be subject to the national sanctions process for relevant breaches.

• Mutual recognition

– Participating authorities that adopt one or more of the National Prequalification System specialist categories must recognise the status of entities prequalified in the same categories by other participating authorities without further assessment, subject to any stated conditions or restrictions.

• Continuous improvement

– Participating authorities commit to regularly reviewing the administration of the new specialist categories (including all supporting documentation) for the purpose of continuous improvement.



Development and Implementation of Specialist Categories 2.3

The proposed method being applied under this project to develop and incorporate the proposed new specialist categories into the National Prequalification System is shown in Figure 2.1.

Figure 2.1: Approach to category development and implementation

Steps 1 to 4, which form part of this Austroads Project TS1877, include all of the category development work such as analysis of relevant pre-existing categories, harmonisation, consultation, definition, and documentation of the proposed new national specialist categories and the process for incorporation into the National Prequalification System.

Steps 5 to 7, which fall outside the scope of this project, relate to the final implementation of the new specialist national categories. This implementation phase will require individual participating authorities to agree to adopt the new national specialist categories, and to participate in a coordinated implementation process involving all of the relevant authorities. Ongoing administration and governance arrangements will be formalised during this phase.

Further detail regarding each of the seven steps depicted in Figure 2.1 is provided below.

Step 1: Review and Compare Existing Specialist Categories 2.3.1

At the commencement of the project, member agencies represented on the project Working Group were requested to submit details of any prequalification categories administered at the jurisdictional level in the nominated specialist areas, including information provided to prospective applicants (e.g. application forms, guidelines, fact sheets, etc.), and any documented agency processes relating to the assessment of submitted applications, ongoing management of prequalified entities, and general administration of the jurisdictional prequalification categories and schemes.

A collated summary of this baseline information is provided in Appendix A.

By comparing and analysing this jurisdictional information, the key points of similarity and difference between the pre-existing categories were ascertained, which helped the project Working Group to separate the category components that could be readily harmonised from those that had the potential to impede harmonisation and which required further review and discussion.

Step 6:Transition of

currently

prequalified

entities

Step 4:Finalise NPS

expansion

framework and

supporting

documentation

Step 2:Harmonise and

develop draft

national

categories

Step 3:Document

proposed NPS

expansion and

consult

Step 1:Review and

compare existing

specialist

categories

Step 5:Adoption of new

categories by

participating

authorities

DEVELOPMENT

IMPLEMENTATIONStep 7:Ongoing

administration

and governance



Step 2: Harmonise and Develop Draft National Categories 2.3.2

This step involved project Working Group members reviewing and workshopping the results of Step 1 to decide the key components of each of the proposed new specialist categories and to agree on a national approach that could be implemented by each participating authority’s procurement centre.

Importantly, project Working Group members were required to participate in targeted problem-solving exercises with respect to the various items identified for further review during Step 1.

These items – which generally reflected differences in local regulations, government and agency policies, and agency and/or market constraints – and information regarding the factors and considerations relevant to their harmonisation, are described in Section 3.

Step 3: Document Proposed National Prequalification System Expansion and 2.3.3Consult

Following the harmonisation process, details of the proposed new specialist categories, including the processes by which they were developed and how they could be incorporated into the National Prequalification System, were documented in the draft Research Reports described in Section 1.5.1 and were released for comment.

The draft Research Reports (including this report) contain proposed guidelines, application forms and other documentation to support the administration of the proposed specialist categories.

Feedback on the draft Research Reports will be specifically sought from relevant industry bodies such as the Civil Contractors Federation, local industry groups, and entities with an interest in prequalification (including those currently prequalified under the National Prequalification System or in similar specialist categories under jurisdictional schemes).

In addition to this formal consultation process, there is expected to be ongoing informal consultation with industry and affected government departments throughout the category development process, facilitated by individual project Working Group members. Project Working Group members will informally consult with relevant stakeholders as the need and opportunity arises, which may include briefings at local industry events, and discussion with individuals or small groups. Feedback provided through this mechanism will be put forward to the project Working Group by the relevant members and considered as part of the group’s discussions and deliberations.

Step 4: Finalise National Prequalification System Expansion Framework and 2.3.4Supporting Documentation

All submissions received through the consultation process in Step 3 will be thoroughly reviewed and considered by the proposed Working Group in finalising its recommendations regarding the proposed national specialist categories and National Prequalification System expansion, and will help refine the content of the supporting system documentation.

The project Working Group’s recommendations will be put forward to the Austroads Board for review and endorsement before the new national specialist categories are implemented.



Step 5: Adoption of New Categories by Participating Authorities 2.3.5

Subject to the endorsement of the Austroads Board (described in Step 4), the new National Prequalification System documentation will be published and made available to road agencies and industry to enable the new specialist categories to be formally introduced into the system.

Individual participating authorities will need to determine which (if any) of the new national specialist categories they will adopt at a jurisdictional level, and may advertise for applications from entities seeking to achieve prequalification. Advice of the categories adopted by each participating authority will be provided to the Management Committee, to enable appropriate governance arrangements to be implemented at the national level.

Step 6: Transition of Currently Prequalified Entities 2.3.6

Adoption of the new specialist categories and participation in mutual recognition will involve a program of transition and implementation tasks. Specific local transition and implementation activities will be managed and delivered by each participating authority under a coordinated plan. Current considerations regarding implementation and coordination at the national level are outlined in Section 5.

Step 7: Ongoing Administration and Governance 2.3.7

Ongoing administration of the new specialist categories will be the responsibility of the participating authorities that have adopted those particular categories; with oversight, governance and national coordination provided by the Management Committee. Specific arrangements to enable this to occur will be put in place as part of Step 7.



3. Harmonisation and Category Development

Currently, state and territory road agencies in three jurisdictions (NSW, QLD, NT) prequalify or otherwise register or accredit entities to supply precast concrete products either directly to the road agencies (via agency-initiated procurement processes) or to head contractors engaged by those agencies to deliver contracted works on their behalf.

The NSW road agency includes precast concrete products categories as a local add-on to the National Prequalification System; the QLD road agency administers precast concrete products categories in a registration scheme separate to the National Prequalification System; and the NT includes precast concrete products categories as part of its accreditation system, which is administered externally by Contractor Accreditation Limited (CAL).

Details of the current categories and system/schemes requirements are collated in Appendix A.

Review and Comparison of Existing Systems/Schemes 3.1

Characteristics of System/Scheme Frameworks 3.1.1

The following key similarities and differences were noted within the overarching frameworks of the existing jurisdictional systems/schemes.

Key similarities:

• A site assessment of the applicant’s nominated manufacturing facility is undertaken in QLD and NSW, as part of the assessment process.

• In NSW and QLD, it is both the entity and facility that is prequalified or registered, i.e. prequalification/registration is granted on a site-by-site basis.

• Mutual recognition arrangements are not currently in place in any of the three jurisdictions.

• In all three jurisdictions, maintenance of prequalification/registration/accreditation status is subject to lack of significant changes to an entity’s (or facility’s) financial or technical capacity together with ongoing satisfactory performance.

• The three road agencies may review prequalification/registration/accreditation status at any time.

• Suspension or cancellation may occur in all of the jurisdictions (following a ‘Show Cause’ process), and the road agency in NSW also reserves its right to downgrade prequalified entities/facilities to a lower category, which is a sanction currently available under the National Prequalification System.

• Prequalification/registration/accreditation decisions may be appealed in all jurisdictions, with review by the original assessors also an option in NSW under the National Prequalification System framework.

• Entities/facilities in all three jurisdictions may apply for upgrades to their status at any time.

• Lists of prequalified/registered/accredited entities are made publicly available in all three jurisdictions.



Key differences:

• The NSW and QLD road agencies include category descriptors as part of their systems/schemes. However, the NSW road agency has two broad categories: C1 – Pretensioned Concrete (Routine) and C2 – Pretensioned Concrete (Complex), whereas the QLD road agency’s descriptors are aligned to product types, and include many more products/categories than the other two jurisdictions’ systems/schemes. A detailed category descriptor is not currently included in the NT’s accreditation documentation.

• In the NT, CAL charges a fee for assessment of applications, and provides a detailed description of the appointment and workings of panels and sub-panels that assess the accreditation applications.

• Timeframes for the assessment process are not consistent – in the NT, the assessment is completed within 30 days of lodgement of the application; in NSW, the assessment period is a minimum of six weeks; and in QLD, no set time period for the assessment process is nominated.

• The road agency in QLD has specific requirements for product design as part of its scheme, and requires the applicant to undergo technical and system audits as part of the assessment process.

• Road agencies in the three jurisdictions have differing approaches to prequalification/registration/accreditation status:

– in NSW, ‘full’, ‘conditional’ and ‘restricted’ prequalification status are available in line with the existing National Prequalification System framework

– in QLD, three registration levels are available – ‘Provisional’, ‘Level 1’ and ‘Level 2’

– in the NT, conditional accreditation status may be offered at CAL’s discretion.

• Prequalification/registration/accreditation periods are not currently aligned:

– in NSW, entities/facilities are registered for three years

– in QLD, three different time periods apply – Provisional (three-to-six months on individual projects), Level 1 (three-to-twelve months) and Level 2 (one-to-three years)

– in the NT, accreditation is required annually.

Characteristics of Application Requirements 3.1.2

The following key similarities and differences were noted in the application requirements of the three jurisdictional systems/schemes.

Key similarities:

• Application lodgement requirements are similar in the three jurisdictions.

• Organisational and business information requested from applicants is similar in all three jurisdictions.

• Details of workers compensation and public liability insurance are requested in the NT and QLD. Insurance requirements are not specified in NSW.

• Information regarding relevant (past and current) projects is requested in all three jurisdictions.

• Details of key personnel (e.g. qualifications and experience) are requested in all three jurisdictions.

• Particulars of available resources/equipment are requested in all jurisdictions, with the QLD road agency’s requirements being the most prescriptive.

• Referee details are requested in NSW and the NT. Referee details are also requested in QLD in some instances.



Key differences:

• Eligibility criteria are not consistent in the three jurisdictions in that the NSW road agency specifies that an entity’s/facility’s prequalification/registration status does not extend to related or subsidiary corporations owned or controlled by the entity, and sole traders or unincorporated partnerships are not able to prequalify.

• A financial capacity assessment is not currently required in QLD.

• Approaches to certification of quality management systems (QMSs) differ in the following ways:

– in NSW, 3rd party certification of the applicant’s QMS to an Integrated Management System (IMS) standard is required, along with corporate policies and a sample or example quality plan, and inspection and test plan (ITP)

– in QLD, evidence of 3rd party certification (undertaken by a JAS-ANZ conformity assessment body) to ISO/AS 9001:2000 is required. Registered entities/facilities must also ensure QMSs are in place for the entire supply chain

– the NT requirements are more flexible, requiring evidence of a QMS in place, which is reviewed as part of the assessment process.

• Approaches to certification of occupational health and safety management systems (OHSMSs) differ in the following ways:

– in NSW, 3rd party certification of the OHSMS to IMS standard is required, along with a corporate policy and a sample/example OH&S plan. Alternatively, accreditation under the Australian Government Building and Construction OHS Accreditation Scheme is deemed to satisfy the prequalification requirements for OH&S

– in QLD, evidence of an OHSMS set up along the lines of AS/NZS 4801:2001 is required, and a summary of the site management plan formats utilised by the applicant, a summary reference to the applicant’s documented safety management systems, and a list of recent relevant projects on which the above have been utilised are also assessed

– the NT is more flexible, requiring evidence of an OHSMS in place, which is reviewed as part of the assessment process.

• In NSW, 3rd party certification of environmental management systems (EMSs) to IMS standard is required, along with corporate policy and a sample/example environmental management plan.

• The NSW road agency has specific requirements for traffic management, which are generic and applicable to road and bridge construction categories in the current National Prequalification System.

• Only in the NT are details of labour relations and other obligations relating to industrial relations requested.

• In NSW, details of relevant industry affiliations are requested.

• The NT has specific additional requirements in the areas of training, local commitment, compliance with codes and schedules, and contract control.



Harmonisation Focus Areas 3.2

Of the key differences specified in Section 3.1, the following items were noted as having the most potential to impede the harmonisation process and were therefore examined in detail by the project Working Group as part of Step 2 of the project (as described in Section 2.3.1).

As the NT has not fully adopted the National Prequalification System at this time, the main priority for the project Working Group was to find system solutions that would reconcile any differing approaches to key components of the current jurisdictional categories in QLD and NSW, and would also be acceptable to other road agencies that may wish to adopt the new precast concrete categories.

The outcomes of the project Working Group’s deliberations on these key items and other relevant matters are reflected in the proposed national categories described in Section 4 and Appendix B to Appendix F.

Category Descriptors 3.2.1

Given the significant divergences in the way current jurisdictional categories are classified and described, the highest priority task for the project Working Group was to resolve the scope of any proposed new national category or categories and settle on suitable descriptors.

As a starting point, the project Working Group considered whether the current NSW or QLD models, as described below, provided an appropriate platform to develop the proposed new national category(s):

• In NSW, the manufacturing facility nominated by the applicant achieves prequalification based on its capacity and capability to manufacture and supply prestressed (pretensioned) products considered either routine or complex.

• In QLD, the manufacturing facility nominated by the applicant is required to demonstrate it can produce and supply a range of specified products including pipes, culverts, prestressed products and miscellaneous products that comply with nominated specification requirements. The manufacturing facility is only eligible for prequalification with respect to the specific product type or types for which the compliance requirements are met.

Both approaches were noted to have their advantages and disadvantages, which were reviewed at length by the project Working Group.

A major consideration in developing the proposed national categories included in Section 4 was to set them broad enough to operate at the national level, whilst also accommodating as many of the NSW and QLD agencies’ pre-existing requirements as possible.

Eligible Entities 3.2.2

As some types of entities (sole traders and unincorporated partnerships) are not currently eligible to apply for prequalification of their manufacturing facilities in NSW, the project Working Group needed to determine what types of entities would be eligible for prequalification in the new national precast concrete categories.

In agreeing on the eligibility requirements detailed in Section 4, which take into account the guiding principle relating to risk mitigation, the project Working Group was mindful of ensuring that any nationally agreed position did not unreasonably preclude entity types not considered suitable for prequalification at the national level from continuing to prequalify at the jurisdictional level in circumstances where individual participating authorities were willing to allow this.



Site Assessments 3.2.3

A site assessment is considered an essential part of the prequalification assessment process for existing precast concrete categories administered in NSW and QLD. While the project Working Group agreed that a satisfactory site assessment would be a necessary prerequisite for prequalification in the proposed new national categories, three specific matters were noted as requiring consideration as part of any national approach. These are outlined below.

Site assessments for multi-jurisdiction applicants

The project Working Group had to consider how the site assessment process would be managed, in a practical sense, for applicants with facilities in multiple jurisdictions. Some options explored by the project Working Group were for:

• the participating authority with which the application was lodged (the assessing authority) to conduct all of the site assessments, including of facilities in other jurisdictions

• the assessing authority to engage participating authorities in other jurisdictions to undertake site assessments of facilities in those jurisdictions on behalf of the assessing authority

• participating authorities in each of the relevant jurisdictions to assume total responsibility for undertaking site assessments of facilities in their jurisdiction.

Following considerable deliberation, an agreed approach was confirmed by the project Working Group and presented in Section 4, based on the concept of separate prequalification for each facility with each participating authorities that have adopted the new category assuming total responsibility for undertaking site assessments of facilities in their jurisdiction. This means that the participating authority in the jurisdiction where the facility is located would have full responsibility for undertaking the site assessment and granting any subsequent prequalification. This approach is considered the most workable as it:

• appropriately responds to circumstances where the applicant seeks to prequalify more than one facility in multiple jurisdictions at the same time, as well as circumstances where an applicant with one facility already prequalified seeks to prequalify another facility in a different jurisdiction at a later date

• allows for the site assessment process and subsequent management of the prequalified contractor (facility) to be coordinated locally by the participating authority where the facility is located, rather than remotely by an interstate authority.

Manufacturing entities will benefit from the proposed approach through a cut-down process for prequalifying second or subsequent facilities under which non-site-related criteria, such as ‘company profile’ and ‘financial capacity’ (where applicable), will not need to be reassessed for each facility.

Site assessments of overseas or interstate facilities

The project Working Group was required to consider the feasibility of undertaking site assessments of facilities located overseas or interstate (in circumstances where the road agency in that jurisdiction has not adopted the proposed steel category). The project Working Group agreed that the most reasonable and practical way of managing this issue would be by way of cost recovery from the applicant for the on-site aspects of the assessment process.



Financial Capacity 3.2.4

Current differences in the jurisdictional approaches to financial capacity assessments was a matter specifically earmarked for resolution by the project Working Group.

Under the current NSW categories, a detailed financial assessment is undertaken and the successful applicant’s manufacturing facility is awarded a ‘financial level’, which notionally represents their financial stability, solvency and capacity to manage cash flow requirements throughout a hypothetical 12-month contract period. This approach aligns with the financial levels awarded with respect to road and bridge construction categories under the National Prequalification System.

The financial levels used in the current National Prequalification System are identified by the letter ‘F’ (F0.25, F1, F5, F10, F15, F20, F25, F50, F75, F100, F150 and F150 PLUS) as summarised in Table 3.1.

Table 3.1: National Prequalification System financial levels

Financial level Maximum values F0.25 Optional (jurisdiction-specific) F1 Optional (jurisdiction-specific) F5 $5 million F10 $10 million F15 $15 million F20 $20 million F25 $25 million F50 $50 million F75 $75 million F100 $100 million F150 $150 million F150 PLUS Unlimited

In the NT, CAL undertakes a detailed financial assessment as part of the assessment process and provides a financial ‘rating’ on the basis of the GST-exclusive price of contracts. Applicants nominate a preferred financial rating for each category sub-group for which accreditation is sought, with ratings set at $50k increments up to $1 million, $250k increments from $1 million to $20 million, and $10 million increments to $50 million. The lowest rating available is $50k and the highest is $50 million and over.

In QLD, a financial capacity assessment is not required for applicants seeking to prequalify their manufacturing facilities under the existing registration scheme.

The project Working Group reviewed the current options in developing the parameters for the recommended financial capacity assessment presented in Section 4.



Certification of Management Systems 3.2.5

An important part of the harmonisation process was to develop and agree upon national standards relating to management system certification, in light of the divergent approaches used in the various jurisdictional categories, as outlined below:

Quality management systems

• While 3rd party certification is currently a stated requirement of prequalification in NSW and registration in QLD, the NSW road agency accepts certification to an IMS standard, with certification provided by the Civil Contractors Federation (CCF) or a similar body.

• This certification is at a lower level than is currently required in QLD in that it only assesses entities against the key system requirements of AS/NZS ISO 9000, as determined by the civil contracting industry rather than against the entire standard. QLD also previously offered an option of 2nd party certification provided by the road agency, based on a detailed assessment of the entity’s QMS. However, the QLD Government began phasing out its provision of 2nd party certification services from 1 July 2013.

• In the NT, there is currently no QMS certification requirement.

Occupational health and safety management systems

• Third party certification of OHSMSs to IMS standard is required in NSW, unless the applicant has accreditation under the Australian Government Building and Construction OHS Accreditation Scheme. In QLD and the NT, applicants are only required to provide evidence of an OHSMS set up along the lines of AS/NZS 4801:2001.

Environmental management systems

• Certification of EMSs is currently only required in NSW (to IMS standard).

A key consideration for the project Working Group in determining the proposed national certification requirements in all three areas was to ensure some limited prequalification options were preserved at the jurisdictional level for applicants that may not fully meet the proposed national standard.



4. Proposed National Precast Concrete Categories

This section presents an outline of the system framework and major characteristics of a series of proposed new national precast concrete categories, which reflect the project Working Group’s deliberations on the matters detailed in Section 3.

Further information is located in the appendices to this report, which include draft:

• prequalification guidelines

• application form

• registration form for mutual recognition

• performance report

• performance report scoring guide.

It is anticipated that these documents, once reviewed and endorsed by Austroads, will be finalised and adopted nationally by individual participating authorities.

Overview 4.1

Category Details 4.1.1

Four separate categories are proposed, which relate to the manufacture of both precast and precast/pretensioned products.

Products requiring in-situ post-tensioning are specifically excluded.

To achieve prequalification in one or more of the proposed new categories, applicants must demonstrate the capacity and capability to manufacture all of the types of products shown in each of the categories in Table 4.1:

Table 4.1: National category descriptors

Pretensioned (routine) Pretensioned reinforced components (complex)

Precast products Pipes and poles

• Piles

• Deck units

• Bridge planks

• Girders

• Match cast girder segments

• Other pretensioned components

• Box culverts

• Traffic barriers

• Bridge parapets • Pits

• Wall panels (flat panels), RSS wall panels

• Noise barriers • Wing walls and head

walls (one piece or multi-piece)

• Arches

• Piles (not pretensioned)

• Steel-reinforced concrete pipes

• Fibre-reinforced concrete pipes

• Concrete poles



Objectives 4.1.2

The proposed new national precast concrete categories support the overarching objectives of the National Prequalification System, which are to:

• enable participating authorities to assess the capabilities of Applicants and identify those with the requisite technical, managerial and financial capacity to efficiently deliver contracts in accordance with their specific requirements

• minimise the contractual risks associated with constructing roads and structures

• minimise the costs of the tendering process for both participating authorities and industry

• promote best practice in the road and bridge construction industry

• ensure robust, consistent, transparent and objective processes across all participating authorities.

Two additional objectives specifically relevant to the proposed new national precast concrete categories are to:

• promote safe, consistent and high-quality manufacturing of precast concrete products that meet the participating authorities’ specifications and requirements

• ensure that all precast concrete products used in the participating authorities’ projects are obtained from facilities that are appropriately prequalified.

Scope and Applicability 4.1.3

The new national categories will cover the supply of specified precast concrete products to those Australian state and territory participating authorities that have adopted the categories, whether such supply is made directly to the participating authority (including, where specified, a local council acting on behalf of the participating authority) or to a contractor engaged by the participating authority.

Importantly, as the capability and capacity of an entity’s facility is critical to achieving prequalification, such status will be conferred on an entity operating at a specific permanent or temporary (i.e. project-specific) site location and would not be transferable to other facilities owned or operated by that entity. Consequently, an entity operating multiple facilities would be required to hold a separate prequalification for each facility.

However, to reduce administrative burden and duplication, an abridged application and assessment process would apply, focusing only on those criteria applicable to the assessment of the additional site(s), meaning that the non-site aspects of the original assessment processes would not generally need to be repeated.

Exemptions

Even in circumstances where the national specialist categories have been adopted, participating authorities will not be bound to use prequalification in all instances; for example, depending on local procurement policy, participating authorities may elect to use alternative forms of tendering (e.g. open tenders or expressions of interest) in circumstances where prequalification is not relevant. Additionally, standing exemptions to the requirement for prequalification may apply at the jurisdictional level, as advised by individual participating authorities in the prequalification guidelines.

Administration 4.1.4

The new precast concrete categories will be administered in the same manner as the existing road and bridge categories under the National Prequalification System, i.e. they will be administered locally, by participating authorities that have adopted those categories, in line with nationally agreed processes and procedures and supported by consistent documentation.



The administration of the new categories will include:

• maintenance and distribution of relevant documentation, e.g. guidelines, application form, information for applicants, etc.

• prequalification assessments (new, renewal and upgrade applications)

• ongoing management and performance assessment of prequalified contractors

• liaison and information-sharing with other participating authorities with respect to matters relating to prequalified contractors that have obtained recognition of their prequalification status with those authorities

• participation in national processes, as coordinated by the Management Committee.

These administration arrangements are working successfully with respect to the current road and bridge categories in that they:

• promote sound working relationships between participating authorities, individual contractors and local industry; and help to foster local industry development

• allow performance matters to be managed at the local level in the first instance, so that the participating authority can directly support the prequalified contractor in improving performance outcomes.

National governance of the administration/operation of the new categories will be provided by the Management Committee. The Management Committee will also be responsible for undertaking multi-jurisdictional reviews and managing the national sanctions and appeals process, as further described in Sections 4.6.2 and 4.8.

Prequalification Status and Recognition Arrangements 4.2

An applicant that achieves prequalification in one or more of the new national precast concrete categories will be advised by the assessing authority of the type of prequalification status that has been granted. Any prequalified contractor will be able to request recognition of its status from other participating authorities, however only those with ‘full’ prequalification status are able to obtain such recognition as of right, as outlined in Table 4.2.

Prequalification Status Types 4.2.1

The project Working Group agreed that the three status types (‘full’, ‘restricted’ and ‘conditional’) that were established for use in the road and bridge categories under the National Prequalification System would be applicable to prequalification granted in the new national precast concrete categories. These status types reflect a prequalified contractor’s level of achievement against both the eligibility criteria for prequalification and the assessment criteria for prequalification as described in Table 4.2, and Sections 4.3 and 4.4.

Performance Levels 4.2.2

Applicants that achieve prequalification, of any status type, will be allocated a performance level – either Level 1 or Level 2. Only those prequalified contractors that demonstrate a strong performance record, based on significant volumes of supply with consistent quality outcomes over a period of time, will be eligible to progress to Level 2.

An upgrade to Level 2 will be initiated by the assessing authority, at its sole discretion. Conversely, prequalified contractors may be downgraded from Level 2 to Level 1 where warranted, as part of the sanctions regime described in Section 4.8.



Mutual Recognition Framework 4.2.3

The mutual recognition framework to be deployed for the new national categories is based on the National Prequalification System framework currently applicable to road and bridge categories.

Under this mutual recognition framework, an applicant that achieves prequalification with one participating authority will be able to apply for its prequalification status to be recognised by other participating authorities that have adopted the relevant category(s), subject to any noted restrictions/conditions applicable to the prequalification status type granted.

The key characteristics of each status type, and the implications of status type on a prequalified contractor’s mutual recognition prospects, are described in Table 4.2.

Table 4.2: Prequalification status types

Status type Applicability Effect

Full An applicant that meets both the eligibility criteria and satisfies all of the assessment criteria under the National Prequalification System will be awarded ‘full’ prequalification status.

An applicant that achieves ‘full’ prequalification status is:

• eligible to submit tenders and supply products for the assessing authority’s contracts in the category(s) it is prequalified in

• entitled to obtain recognition of its prequalification status with any other participating authority that has adopted the relevant category.

Restricted Where an applicant does not meet the nationally agreed eligibility criteria for prequalification (i.e. the entity is a type other than a company or incorporated joint venture) it may seek prequalification with a participating authority that accepts that particular type of entity. Where successful, the applicant will be provided with ‘restricted’ prequalification status.

• An applicant that achieves ‘restricted’ prequalification status is eligible to submit tenders and supply products for the assessing authority’s contracts in the category(s) it is prequalified in.

• An applicant that achieves ‘restricted’ prequalification status is not automatically entitled to obtain recognition of its prequalification status with participating authorities other than the assessing authority. However, it is not precluded from requesting recognition from other participating authorities, which may be granted at the other participating authority’s sole discretion.

Conditional Where an applicant meets the eligibility criteria for prequalification in the nominated precast concrete category(s), but does not fully meet all of the assessment criteria (e.g. it does not have 3rd party management systems) an authority may, at its sole discretion, grant ‘conditional’ prequalification status.

• Providing a conditionally prequalified contractor continues to comply with the nominated conditions of its prequalification, it will be eligible to submit tenders for and supply products for the assessing authority’s contracts in the category(s) it is conditionally prequalified in.

• An applicant that achieves ‘conditional’ prequalification status is not automatically entitled to obtain recognition of its prequalification status with participating authorities other than the assessing authority. However, it is not precluded from requesting recognition from other participating authorities. Such recognition may be granted, at the other participating authority’s sole discretion. In some instances, recognition may be granted on basis that that the prequalified contractor agrees to the same conditions or similar conditions to address the other authorities’ specific requirements.



There may be instances when a prequalified contractor whose status is recognised by another participating authority needs to provide additional information to that authority to demonstrate compliance with local requirements (e.g. local legislation) before it is eligible to submit tenders or supply relevant products. Where specific local requirements apply, the recognising authority will advise contractors of these in the ‘Letter of Recognition’.

In summary, the main characteristics of the mutual recognition framework are:

• Recognition is not automatic – an applicant prequalified by the ‘assessing’ authority must specifically apply for recognition with other authorities.

• The process to request recognition will only require minimal details to be submitted, by way of a ‘Registration Form for Mutual Recognition’ (Appendix D) accompanied by ev

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