Performance Reports for Prequalified Contractors and Consultants

Relevant Treasurer's Instruction(s)

Requirement for Performance Reporting

Contractor Performance Report

National Prequalification System for Non-residential Building - Contractor Performance Reports

Consultant Performance Report

Relevant Treasurer's Instruction(s)

Treasurer's Instruction 1220.

Requirement for Performance Reporting

The availability of accurate and relevant data on the capabilities and performance of prequalified contractors and consultants is essential if agencies are to fulfil their risk management obligation in relation to selection, appointment and management of providers.

An important method for maintaining currency of information on prequalified contractors and consultants and for documenting issues that arise is by way of contractor and consultant performance reports. These reports, the timely preparation of which is the responsibility of the agency engaging the supplier, are designed to assist with the ongoing assessment of the technical and management capabilities of prequalified contractors and consultants; the continuous evaluation of the tendering process; the assessment of tenders; and the alerting of superintendents for future projects to areas of a prequalified contractor's or consultant's performance that need extra attention during the contract period. The performance criteria should always be disclosed, in advance, to contractors and consultants and pro forma reports are available for use.

It is fundamental to the process that the information be timely, accurate, consistent and a true reflection of performance. As such, the reports must be objective and accurate to the extent that they can be relied upon by officers making accountable decisions related to prequalification (ie registration, regrading) or the selection of a provider.

The Government is committed to having an open and co-operative approach in dealing with prequalified contractors and consultants. This includes a responsibility to ensure that the contractor or consultant receive a copy of the report and are given the opportunity to comment on any adverse report before it is forwarded by the contracting agency to Treasury.

The completion of performance reports when utilising the services of prequalified providers is mandatory under the Treasurer's Instruction 1220. Copies of reports must be forwarded to the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance.

Contractor Performance Reports

Where a prequalified contractor is engaged, a Prequalified Contractor Performance Report must be completed for every contract valued at $100 000 or more. The report must be prepared when the contract is completed OR when it is terminated due to unsatisfactory performance. 

While the above requirements are a minimum, it is recommended that agencies prepare progressive performance reports during the contract term as a means of documenting performance for either internal own use or as justification for termination if issues identified are not able to be resolved.

Responsibility for completion of performance reports should be assigned to the person best able to make factual assessments against the evaluation criteria.  For most contracts this is the Superintendent.

The reporting person (and the reviewing officer) should ensure that comments are not untruthful, malicious or defamatory.  In particular, comments should commence with "in my opinion ...".

Information on how to prepare a contractor performance report in relation to contractors prequalified with the Treasury Prequalification System together with information on appropriate clauses to include in tender documentation is set out below.

Information on completion of performance reports on contractors prequalified under the National Prequalification System for Non-residential Building is available below.

Copies of reports must be forwarded to the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance.

Treasury Contractor Prequalification System

Documentation of poor performance

When an agency first becomes aware of poor performance by a prequalified contractor, the allocated responsible officer should meet with the contractor to outline shortcomings in the construction of the works and state areas of concern, eg lack of supervision, unsatisfactory rate of progress. The agency should seek from the contractor the means by which the contractor intends to resolve the problem and by what date. The agency should remind the contractor that the Department of Treasury and Finance has a contractor reporting system that is used to provide data which may result in the contractor's future tenders being passed over, or the contractor's prequalification registration being downgraded and that a report will need to be completed at the termination or conclusion of the contract. Should the contractor's performance fail to improve in a reasonable time, the agency should prepare a report that details any issues or concerns. 

The contractor should to be given the opportunity to comment on the issues and concerns and rectification should be discussed. The report does not need to be forwarded to Treasury at this stage but is useful as documentary evidence of the issues should unsatisfactory performance not improve.

Completion or termination of contract

When a contract valued at $100 000 or more is completed or terminated, a Prequalified Contractor Performance Report is to be prepared by the agency.  A pro forma Contractor Performance Report is available for use.

Where Selected, Nominated or Designated subcontracts are included in the contract, separate reports are to be attached to each main contract report.  After an assessment has been made in accordance with the performance criteria, the overall performance should be influenced by assessment of whether the contractor demonstrated a planned and committed approach to achieving the cost, time and quality performance requirements defined in the contract.

The report on each completed contract will be the main source of data for evaluation of the performance of a contractor. Assessment of overall performance should reflect the contractor's performance against the criteria outlined below and in the context of the project as a whole. This can be achieved either by an overall objective assessment by the person making the report or by an agency using the rating system detailed below.

When performance has been unsatisfactory, the report must be accompanied by concise backup evidence and all relevant details of the unsatisfactory performance.  This material should include:

• minutes of any relevant meeting with the contractor where the adverse performance was discussed;
• any written response by the contractor to the adverse assessment;
• outcome of any agency review of the contractor's performance; and
• status of any review being undertaken.

The contractor must be given the opportunity to comment on the report, and the contractor's comments (if any) should be appended to the report. 

The report is then to be reviewed by another agency officer (usually the Principal's Representative). 

The completed report is to be sent to:

• the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance; and
• to the contractor.

The completed report should be forwarded within a reasonable time period after the completion of the contract.

Standard Performance Criteria and Evaluation

In assessing a contractor's performance an agency must look at the performance in the context of the project as a whole, including the respective roles and obligations of the Principal and contractor under the contract. Evaluation against performance criteria must be a measure of the contractor's performance of the contract, after taking into account matters beyond the contractor's control ie if certain matters impact upon the satisfactory completion of a project but are:

• outside the contractor's control, eg  poor documentation supplied by the Principal; or
• the result of some action by the Principal which under the terms of the contract give rise to a Principal-caused delay,

then these matters should be taken into account by the agency. The standard performance criteria are:

• time management;
• standard of work;
• quality assurance;
• management of site personnel;
• coordination of sub-contractors;
• contract administration;
• occupational health and safety; and
• other.

Thereafter, the agency should make a determination on whether the contractor should be recommended as suitable for further work.

Time Management

On major contracts the contractor's detailed construction program will form the basis for assessing the contractor's ability to manage time. On smaller contracts, the nominated commencement and completion dates may be adequate as the basis for assessment. The following matters should be considered when assessing the performance of a contractor:

• ability to meet programmed milestones;
• progress of the work;
• inclement weather;
• industrial conditions affecting the work;
• latent conditions; and
• delays caused by public authorities but not by the Principal.

Standard of Work

Standard of work will generally be measured against the requirements of the specification. In addition, the following matters should be considered:

• remedial work required, if any;
• conformance with specified performance criteria;
• compliance with specified tolerances and finishes; and
• performance during the defects liability period, if applicable.

Quality Assurance

Quality assurance should be measured by the extent of the contractor's compliance with the specified quality systems standards and with the project quality plan. The assessment should also include:

• the number of major or minor non-compliances discovered during a Principal's audit; and
• the number of recurring major or minor non-conformance reports issued by a contractor and the effectiveness of corrective action taken by the contractor.

Management of Site Personnel

The evaluation under this criterion should include:

• the adequacy of the number of site personnel engaged by the contractor, in terms of efficient use of resources for the work;
• the control of site personnel;
• payment of wages on time;
• observance of site rules and procedures, and suitability of staff, ie compliance with the requirements set out in the Code of Practice, including management, administrative, scientific or industry skills, and overall experience relevant to the tasks undertaken;

Co-ordination of Sub-contractors, consultants and suppliers

Under this criterion, evaluation includes:

• contractor's ability to manage both off-site and on-site subcontractors, consultants and suppliers;
• ensuring full compliance with legal and contractual obligations;
• ensuring timely delivery of goods and material; and
• ensuring timely payment of subcontractors.

Contract Administration

Under this criterion, evaluation includes:

• compliance with the Code of Practice requirements concerning the forms of contract (AS 2124-1992, AS 2545-1993, or AS 4902-2000 and AS 4905-2002);
• timely requests for information;
• the provision of information such as drawings, reports or other documents;
• timely submission of claims for payment, variation claims, etc., including the adequacy of supporting evidence;
• proportion of claims approved for extensions of time; and
• number of claims submitted and proportion of variation orders approved (including value).

Occupational Health & Safety

The contractor's compliance with the Work Health and Safety Act 2012 and other related Acts:

• compliance with safety issues specifically nominated in the contract and/or the contractor's OHS&R Management System for the contract; and
• the number of infringement notices issued to the contractor.

Other Categories

Performance criteria may be added to meet an agency's specific requirements or any specific performance requirements set out in the contract.  Performance against these criteria will be assessed in accordance with the evaluation process above.

Suitability for Further Work

The reporting officer and the reviewing officer shall, after taking into account the above, determine the contractor's suitability for further work.

Exchange of Information

A report prepared in accordance with the procedures specified above will be available to Tasmanian Government agencies. The information should be treated confidentially.  Inquirers seeking the information should have reasonable grounds for doing so, and should only use the information for a proper purpose. For further information on accessing reports, contact the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance on 6233 3673.

Contractor Report Rating System

Performance Criteria

Contractor performance rating should be allocated points against the performance criteria (eg time management, standard of service etc.), based on the rating scale below:

Performance Rating Formula

The reporting person shall determine the performance rating using the formula:

A =      contractor's point score x 100

            total maximum points

This gives a percentage assessment "A".

The contractor's point score is the total of the points scored against the performance criteria.

The total maximum points may vary from report to report, depending on the number of performance criteria the contractor is graded against.

Contractor's Overall Performance

The assessment percentage should then be graded in accordance with the following:

Clauses for Inclusion in Tender Documents

Tenderers should be advised that during the course of a contract, a prequalified contractor's performance will be monitored and that performance reports will be made available to persons in other agencies and/or jurisdictions as appropriate. 

Relevant clauses are contained in the pro forma Request for Tender (building and construction version) that is generally required to be used for major works contracts (refer Treasurer's Instruction 1207).

For tender documentation where the pro forma is not used, the Crown Solicitor should be consulted to ensure that appropriate clauses are included in the tender documentation. Guidance information on relevant inclusions in tender documentation is located in the Guide to Inclusions in Building and Construction Tender Documentation.

National Prequalification System for Non-residential Building - Contractor Performance Reports

A report relating to a contractor prequalified under the NPS undertaking a project where the construction value is $50 million or more is to be undertaken in accordance with the requirements of the National Prequalification System. This requires that a contractor performance report must be completed for every contract when the contract is completed OR when it is terminated due to unsatisfactory performance.

Copies of reports must be forwarded to the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance. Any report prepared will be available to Tasmanian Government agencies and also to other jurisdictions in accordance with the requirements of the National Prequalification System. For further information on accessing reports, contact the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance on 6233 3673.

A pro forma report and information on how to prepare the contractor performance is available from the Australasian Procurement and Construction Council website.

For tender documentation where the National Prequalification System for Non-Residential Building (the NPS) is used the Crown Solicitor should be consulted to ensure that appropriate clauses are included in the tender documentation. Guidance information on relevant clauses relating both to performance reporting and other government policy requirements is located at the Guide to Inclusions in Building and Construction Tender Documentation.

Consultant Performance Reports

Where a prequalified consultant is used, a Prequalified Consultant Performance Report must be completed for every consultancy valued at over $10 000. A report must be prepared and forwarded to Treasury when the consultancy is completed OR when it is terminated due to unsatisfactory performance.

It is recommended that agencies prepare progressive performance reports during the consultancy term as a means of documenting performance for either internal own use or as justification for termination if issues identified are not able to be resolved.

Responsibility for completion of performance reports should be assigned to the person best able to make factual assessments against the evaluation criteria. This is usually the project officer (manager).

Review and certification of the reporting officer's appraisal should be made by an officer experienced in consultancy management. The reviewing officer's task is to ensure that the report is objective and accurate to the extent that it can be relied upon in making accountable decisions related to registration or regrading of consultants, or the selection of a consultant.

The reporting person and the reviewing officer should ensure that comments are not untruthful, malicious or defamatory. In particular, comments should commence with "in my opinion ...".

Copies of reports must be forwarded to the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance.

Documentation of poor performance

When an agency first becomes aware of poor performance, the allocated responsible officer should meet with the consultant to outline shortcomings and state areas of concern. The agency should seek from the consultant the means by which they intend to resolve the problem and by what date, and advise the consultant that the Department of Treasury and Finance has a reporting system that is used to provide data which may result in the consultants future tenders being passed over, or the consultants prequalification registration being downgraded.

Should the performance fail to improve in a reasonable time, the agency should prepare a report that details the issues or concerns and discuss these concerns with the consultant. The consultant should to be given the opportunity to comment on the issues and concerns and rectification should be discussed. The report does not need to be forwarded to Treasury at this stage but is useful as documentary evidence of the issues should unsatisfactory performance not improve.

Completion or termination of contract

When a consultancy valued at more than $10 000 is completed or terminated, a report is to be prepared by the agency. A pro-forma Consultant Performance Report is available for use.

After an assessment has been made in accordance with the standard criteria, the overall performance should be measured by assessment of whether the consultant demonstrated a planned and committed approach to achieving the cost, time and quality performance requirements defined in the agreement.

The consultant is to be given the opportunity to comment on the report, and the consultant's comments should be appended to the report. 

When performance has been unsatisfactory, the report must be accompanied by concise backup evidence and all relevant details of the unsatisfactory performance.  This material should include:

• minutes of any relevant meeting with the consultant where the adverse performance was discussed;
• any written response by the consultant to the adverse assessment;
• outcome of any agency review of the consultant's performance; and
• status of any review being undertaken.

The report should be reviewed in accordance with the following procedure:

• The agency will convene a meeting between the consultant, the person who prepared the report, and the person who reviewed the report.
• The agency personnel will discuss the report with the consultant.
• The consultant will be given the opportunity to comment on the contents of the report.
• The report may be adjusted at the discretion of the agency.
• The matters raised at the meeting will be minuted.

The completed report is to be sent to the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance, who will maintain a data base for the information. A copy should be forwarded to the consultant.

The completed report should be forwarded within a reasonable time period after the completion of the contract.

Standard Performance Criteria and Evaluation

Evaluation against performance criteria must be a measure of the consultant's performance during the whole of the consultancy, after taking into account matters beyond the consultant's control.

This can be achieved in an overall objective assessment from the officer making the report by using the rating system detailed in the Consultant Reporting Rating System below.

The standard performance criteria are:

• time management;
• standard of service;
• quality assurance;
• quality of personnel;
• co-ordination of sub-consultants; and
• other criteria.

Thereafter, the agency should make a determination on whether the consultant should be recommended as suitable for further work.

Time Management

With many consultancies it can be difficult to easily identify measurable program deliverables apart from the completion date. Specific project milestones should be clearly established between an agency and a consultant prior to the commencement of any work. As a minimum there should be progress reports on specific activities.

The following matters should be considered when assessing the performance of a consultant:

• ability to meet programmed milestones;
• overall progress of the work; and
• timely submission of progress reports.

Standard of Service

Standard of service will generally be measured against the requirements of the project brief. Therefore, the following matters should be considered:

• compliance with brief;
• quality of work;
• professionalism;
• value for money;
• reviews and reports delivered in accordance with the brief;
• management of project; and
• adherence to budget.

Quality Assurance

The evaluation of the consultant's performance for quality assurance should be assessed against the following criteria:

• the extent of the consultant's compliance with the specified quality systems standard;
• the number of major or minor non-compliances discovered during a Principal's audit; and
• the number of recurring major or minor non-conformance reports issued by a consultant and the effectiveness of corrective action taken by the consultant.

Quality of Personnel

The suitability and quality of the personnel should be assessed against the following criteria:

• suitability of personnel:
• types of discipline; and
• qualification and experience of personnel; and
• bid personnel compared to actual personnel engaged on the work.

Co-ordination of Sub-consultants

The consultant's proficiency in managing sub-consultants and timeliness in regard to the delivery of services from and payment of sub-consultants should be assessed against the following criteria:

• consultant's ability to manage external sub-consultants;
• ensuring timely delivery of services;
• ensuring timely payment of sub-consultants; and
• co-ordination of interfaces.

Other Criteria

Other performance criteria may be added to meet an agency's or a consultancy's specific performance requirements. However, an agency should advise a consultant, prior to the engagement, of any additional assessment criteria, and performance against these criteria should be assessed accordingly.

Suitability for Further Work

The reporting officer and the reviewing officer shall, after taking into account the consultant's overall performance, determine the consultant's suitability for further work.

Exchange of Information

A report which is prepared in accordance with the procedures specified above will be available to Tasmanian Government agencies. The information should be treated as confidential.  Enquirers should be seeking the information on reasonable grounds and for a proper purpose. For further information on accessing reports, contact the Manager, Contracts, Procurement and Property Branch, Department of Treasury and Finance on 6233 3673.

Consultant Reporting Rating System

Performance Criteria

Consultant performance rating shall be allocated points against the performance criteria (time management, standard of service etc.), based on the rating scale below:

Performance Rating Formula

The reporting person shall determine the performance rating using the formula:

A =      consultant's point score x 100

            total possible points

This gives you a percentage assessment "A".

The consultant's point score is the total of the points scored against the performance criteria.

The total maximum points may vary from report to report, depending on the number of performance criteria the consultant is graded against.

Consultant's Overall Performance

The assessment percentage shall then be graded in accordance with the following:

Clauses for Inclusion in the Consultancy Documents

Tenders should be advised that during the course of a contract, the consultant's performance will be monitored. Notification may be provided in the original Notice to Tenderers in the following form:

"It should be clearly understood that during the course of the consultancy the consultant's performance will be monitored and evaluated and that all information gathered as part of that process may be used by all areas of the Tasmanian Government for the purpose of evaluating future submissions or offers by the consultant to perform works."

Conditions of Tendering or Letter of Invitation

Regardless of whether advice has been provided to consultants in the original notice, the following clauses must be included in the tender documents to ensure that contractors are quite clear on the Government's policy in regard to the recording and reporting of consultant performance. 

"By tendering for this contract, the consultant acknowledges:

• that the performance of the works by the successful consultant will be monitored and evaluated by the Principal (or his authorised officer);
• that the successful consultant will be required to provide such assistance as is required by the Principal (or his authorised officer) in relation to the above-mentioned monitoring and evaluation;
• that all information provided to the Principal (or his authorised officer) for the purposes of the above-mentioned monitoring and evaluation will not be regarded as confidential; and
• that all the information gathered by the Principal (or his authorised officer) for the purposes of the above-mentioned monitoring and evaluation may be used by all areas of the Tasmanian Government for the purpose of evaluating future submissions or offers by the successful consultant to perform other works."

General Conditions of Contract

The following clause should be contained in all contracts:

"The consultant agrees:

• that the performance of the work will be monitored and evaluated by the Principal (or his authorised officer);
• to provide such assistance as is required by the Principal (or his authorised officer) in relation to the above-mentioned monitoring and evaluation;
• that all information provided to the Principal (or his authorised officer) for the purposes of the above-mentioned monitoring or evaluation will not be regarded as confidential; and
• that all information gathered by the Principal (or his authorised officer) for the purposes of the above-mentioned monitoring and evaluation may be used by all areas of the Tasmanian Government for the purposes of evaluating future tenders or offers by the consultant to perform other works."