The Government of Western Australia has modernised its procurement practices to attract major investment in state infrastructure projects, with a new policy to increase market capacity and competition.
Developed in consultation with the Master Builders Association (MBA) and top Tier 1 & 2 contractors, the Bid Contribution Policy for Non-Residential Major Projects will be administered by the Department of Finance.
The initiative will be aimed at critical projects including hospitals, correctional facilities and cultural buildings, focusing on construction works valued over $100 million and other builds that are considered high risk or high complexity, including strategic regional projects.
Suppliers who are invited to the second stage of eligible procurement processes will be able to apply for a financial contribution of up to $750,000 towards their bid costs, with the state to be provided unencumbered use of the intellectual property associated with each bid.
The Government says high-quality bids on major projects require considerable investment from builders, with the policy acknowledging that investment while providing a financial contribution to support complex bids.
Finance Minister Sue Ellery said the initiative aims to incentivise contractors to invest their time and future in WA while also creating local jobs.
“We understand that high-quality bids on major projects require considerable investment from bidders,” she said.
“The intent of this policy is to partially offset expenses borne by proponents to ensure the bids are developed at a high level, further supporting industry and reducing risk to the state.”
Master Builders Association WA CEO Matthew Pollock said the initiative was a key priority of MBA’s Regulatory Reform Package developed with the WA Government.
“Offsetting bid costs for large or complex projects will encourage more contractors to bid. Greater competition will mean better bids and better value for money for taxpayers,” he said.
“Giving access to $750,000 towards bid costs will ensure contractors can properly engage the right technical consultants to de-risk the tender process and deliver more complete bids to Government.
“There is a record pipeline of major projects to deliver in WA. This initiative is about industry and Government working collaboratively to ensure we deliver the major project pipeline in the most effective way possible.”
