Glossary

An alternative tender is a tender that offers an alternative proposal that still satisfies the agency's requirements.

Alternative tenders will not be considered unless they are allowed in the Conditions of Tendering.

For the purposes of this website, agency or inner-Budget agency refers to those government agencies which are subject to the Financial Management and Audit Act 1990.

The Australia New Zealand Government Procurement Agreement abolishes State purchasing preferences and ensures that Australian and New Zealand suppliers are given equal consideration and opportunities to contract for the supply of goods and services to the Commonwealth, State and Territory Governments.

The Australia-United States Free Trade Agreement ensures that United States suppliers are given equal consideration and opportunity to contract for the supply of goods and services including construction.

The Budget Committee's primary function is the oversight of the preparation and monitoring of the State Budget and to make recommendations to Cabinet on Budget issues and strategies, major capital projects and agency budgets.

Capital projects with a capital value in excess of $100 000, regardless of the source of funding, require Budget Committee approval.

The construction and refurbishment of buildings and residential properties, and associated maintenance (services and residential) and professional services (eg. architects).

A contract is an obligation, such as an accepted offer, between competent parties upon a legal consideration, to do, or abstain from doing, some act.

See Selective/Selected Tender.

The Capital Investment Program (CIP) comprises major capital investment projects for all on-Budget agencies and is funded through the Works and Services section of the Consolidated Fund.  The CIP was introduced to link Government investment in capital and maintenance projects with departmental corporate and asset management plans and specific Government policy objectives and Outputs.  Details of projects included in the CIP are provided in the Budget Papers.

Define the rights and obligations of both parties once the contract has been awarded.  This includes insurance requirements, price variation clauses, appointment of sub-contractors etc.

Once the contract is awarded, a Departmental representative/s is assigned to manage the relationship between the Department and the Contractor.  This includes managing any issues or risks that arise, and to generally ensure that the objectives of the project are met.

A whole-of-government contract established by the Department of Treasury and Finance for the supply of goods and services.  A Common Use Contract must be used by all inner-Budget agencies and may also be accessed by other eligible organisations.  The Contracts Website lists all of the whole-of-government Common Use Contracts in detail.

An individual or organisation engaged under a contract (other than as an employee) to provide goods and/or services to an agency.  A contractor will usually work under the supervision of an agency manager.

The rules governing what the tender submission should contain, how it should be submitted, and how it will be evaluated.

There are general conditions of tender for building and construction that apply to all tenders, such as treatment of late tenders.  Specific rules can also be added that apply to an individual tender, for example, providing draft designs and gaining access to the site.

Pro-forma conditions of tender for the purchase of goods and services are provided under Resources / Publications.

A particular type of contractor (refer contractor definition below) who is engaged to provide recommendations or specialist or professional advice (or more generally non-manual services) to assist or influence agency decision making.

Dumped goods are goods that:

• are imported from overseas at less than their normal value;
• may cause injury to an Australian industry producing similar goods, or hinder the establishment of an Australian industry; and
• have been classified as being "dumped" by the Australian Customs Service (ACS).

A disposal of goods at the end of their useful life.

Evaluation criteria are used to assess the merit of offers received.  The evaluation criteria are specified in the quotation or tender documentation.

An Expression of Interest may be used as a means of exploring the market or to pre-qualify businesses to reduce the cost of tendering by restricting the issue of formal tenders.

Goods are tangible, transportable supplies.   Services are intangible supplies or effort, such as consultancies (other than building and construction related consultancies).

See "Agency".

Government Business Enterprises (GBEs) are entities which operate outside the Public Account, principally on the basis of funds derived through their operations.   GBEs are subject to their own enabling legislation and the Government Business Enterprises Act 1995.

The Government Information Technology Contract is used for all purchases of computer hardware, software and IT services, except as provided in TI 1310.

ICNTAS is part of a national network of offices throughout Australia and New Zealand that offer free and confidential services to buyers and suppliers.  ICNTAS's primary role is to assist buyers to identify competitive local suppliers of goods and services.

All purchases of computer hardware, software and IT services, except as provided in Treasurer's Instruction 1123.

Legal advice, civil litigation services, and commercial and conveyancing legal services.

All businesses operating in the State, which have a permanent office or presence in Tasmania and employ Tasmanian workers.

Building Construction contracts with a capital value less than $100 000.

Roads and Bridges projects with a capital value less than $250 000.

Building Construction projects, including construction and maintenance, which have an estimated total value of $100 000 and over.

Roads and Bridges projects which have an estimated value of $250 000 and over.

Public tender where any business that can meet the requirements of the Request for Tender can tender.

Pre-qualification restrictions may apply to building and construction public tenders.

Probity is a risk management approach to ensuring procedural integrity, by:

• ensuring an open competitive process;
• ensuring a transparent process;
• identifying and resolving conflicts of interest;
• accountability in relation to decision making; and
• monitoring and evaluating performance.

The Procurement Advisory Group undertakes an ongoing review of the Government's procurement policies and agency tender processes.  This may also include the provision of advice to the Government on broader local content policy issues, particularly in respect of local industry participation in major development projects.

A Probity Adviser provides advice on probity issues before and during the process of tendering and contracting to ensure the process is fair and in accordance with government guidelines.

The entire process by which all resources are obtained by an entity, including planning, design, standards determination, specification writing, selection of suppliers, financing, contract administration, disposals and other related functions.

A structured framework to be followed by agencies when it presents projects proposed for inclusion in the Capital Investment Program.  The PIP ensures that all new infrastructure investments are made only where they are the most appropriate means to support improved service delivery.  Before agencies can secure Capital Investment Funding, it must show that it has followed the PIP.  The PIP applies to all projects funded through the Capital Investment Program.

Pre-qualification is used to classify Building Construction and Roads and/or Bridges consultants and contractors according to their expertise and capability in specific work categories within a specific financial range.

Also known as procurement, purchasing is the acquisition of goods or services.

A system of activities whose purpose is to provide assurance that the quality control is being done effectively.

A quotation is the bid submitted in response to a Request for Quotation from a contracting authority.

The process of identifying risks, analysing their consequences and devising appropriate responses.

A Request for Quotation can be either a verbal or written request for offers from businesses capable of providing a specified work, good or service.

The construction and maintenance of roads and bridges and associated professional services (eg. civil engineers).

A Risk Management Plan details the approach to be taken to manage risk, including:

• the process to be used to identify, analyse and manage risks;
• how often risks will be reviewed and by whom; and
• responsibilities.

The Risk Register records details of risks identified, their grading in terms of seriousness and likelihood, and mitigating actions.

Departmental committees established to review the process used for all building and construction tenders over $50 000 and all goods and services procurements valued at $50 000 or more.  Prior to the award of the contract, the Review Committee's role is to ensure that a fair and equitable process has been followed and that the selection procedures outlined in the relevant government procurement guidelines have been adhered to.

Factors that may adversely affect the successful completion of a project.

A Request for Tender is a document soliciting offers from businesses capable of providing a specified work, good or service.  Requests for Tender are usually advertised.

Statutory authorities are each established under specific legislation which defines the purpose for which they are established and the general functions for which they are responsible.

A document which clearly, accurately and completely describes the essential requirements of the building and construction procurement, or goods and services being purchased.

The State Capital Program comprises the capital expenditure programs of government agencies, and the capital programs of statutory authorities, government business enterprises and State-owned Companies.

State-owned Companies (SOCs) operate outside the Public Account, principally on the basis of funds derived through their operations and are subject to Corporations Act 2001, Company Constitutions and their respective Portfolio Legislation, eg. Aurora Energy Pty Ltd and TT-Line Company Pty Ltd

Three-year projections of the management of all non-current physical assets, including their:

• acquisition;
• operation;
• maintenance;
• disposal;
• funding; and
• risk management strategies.

A selected tender process may be used if approval has been granted by the Secretary of the Department of Treasury and Finance, following an application by an agency for exemption from the Treasurer's Instructions.

A tender box is a point of lodgement for tenders to ensure that the documentation is kept secure until the tender period closes.

Generally a tender box:

• is a box or cabinet with an opening which allows large envelopes to be lodged, but which does not permit access to the contents;
• should be secured in a fixed position; and
• should be locked with two locks with different keys, maintained by two different officers.

A proposal, bid or offer that is submitted in response to a Request for Tender from a contracting authority.

Value for money means achieving the desired outcome at the best possible price.

A verbal Request for Quotation.  A verbal response may be adequate for very low value purchases, however, a written response would normally be expected.

A process undertaken by agencies for building and construction projects, to ensure that all necessary requirements of the project are provided at the lowest total cost, whilst still maintaining the required quality and performance levels.

A written Request for Quotation to undertake specific works or supply goods and services.