The community expects a high degree of efficiency from Government in its use of resources and assets. In particular, Government's building, road and bridge assets require careful management as the cost of procuring and managing these assets can impact significantly on the cost of Government services.
The Treasurer's Instructions and related Procurement Practices Manuals and Guidelines define the range of policy, obligations and the use of best practice strategies that will apply to Tasmanian Government public works tendering undertaken by inner Budget agencies.
The Treasurer's Instructions, the Procurement Practices Manuals and the various Guidelines have been formulated to assist Tasmanian Government agencies in establishing appropriate tendering and contract management systems for capital and maintenance works, including buildings, roads, bridges and their services. The appropriate management systems will assist in achieving best value for money from the Government's capital investment, while maintaining probity on the part of all participants through a competitive tendering process.
The Treasurer's Instructions, the Procurement Practices Manual and the various Guidelines:
while allowing for detailed procedures which are particular to the various agencies.
Publications relating to building and construction policies are located at www.purchasing.tas.gov.au>Publications>Resources.
Links to, and information on, the primary policy documents and guidelines are provided below:
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Document |
Description |
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The Treasurer's Instructions detail principles and mandatory procedures for tendering and contracting involving the construction of buildings, roads and bridges, and any associated maintenance and services. |
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Procurement Practices Manual |
The Procurement Practices Manuals provide guidance and information in relation to various stages of asset management including pre- and post-procurement stage guidance. These include: Project Initiation Process - establishes a structured framework to be followed by agencies in presenting projects proposed for inclusion in the Capital Investment Program; and Best Practice for the Maintenance of Building Assets - advice on managing "asset maintenance risk". Two Procurement Practices Manuals relate to the actual procurement process. These are: Best Practice for the Engagement of Consultants - mandatory requirements in relation to the engagement of consultants; Contract Documentation, Delegation and Risk - details information to assist agencies manage the Government's construction risk and to present a consistent common view to industry for all government construction projects above a capital value of $100 000. |
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Tasmanian Annexure to the National Code of Practice for Construction |
An outline of the Government's commitment to the implementation of the National Code. Compliance within the Code is a condition of tender for all Tasmanian Government construction projects. Further information is available below. |
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Guidelines for Professional Indemnity and Public Liability Insurance |
Guidelines setting out Professional Indemnity insurance and Public Liability insurance requirements in regard to the engagement of consultants for building works and services. |
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Guidelines for Tender Evaluation using Weighted Criteria for Building Works and Services |
Guidelines providing for a consistent approach for all government major building works and services tenders that utilise the weighted criteria method for tender assessment. |
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Building and Construction Training Policy |
Information on the Building and Construction Training Policy is available on the Skills Tasmania website. |
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Public Private Partnerships |
If a PPP is being considered, agencies should refer to the National PPP Guidelines (the "Guidelines"). The Guidelines have been prepared and endorsed by Infrastructure Australia and the State, Territory and Commonwealth Governments as an agreed framework for the delivery of PPP projects. The Guidelines effectively replace previously existing policy and guidelines. The National PPP Guidelines are available on Infrastructure Australia's website at: http:// www.infrastructureaustralia.gov.au/public_private_partnership_policy_guidelines.aspx.
Tasmanian government agencies considering a PPP should firstly contact the Shareholder Policy and Markets Branch of the Department of Treasury and Finance for further information. |
For information on policies applicable to procurement generally, refer to Purchasing Policies.
Art for Public Buildings Scheme
Australian Standard Code of Tendering
National Code of Practice for the Construction Industry and the Tasmanian Annexure
Professional Liability Insurance
Security, retention of moneys and performance undertakings
The Art for Public Buildings Scheme requires that all major works for building and construction relating to new buildings and refurbishment projects, but not building maintenance works or residential housing works, comply with the Scheme.
The Scheme is administered by Arts Tasmania. This requirement is reflected in the Treasurer's Instruction 1221.
The contribution for the purchase and commissioning of artworks, for projects valued at $100 000 (excluding GST) or over, is 2 per cent of the project capital works estimate. Each project has an upper limit of $80 000.
The portfolio Minister responsible for the agency conducting the procurement is responsible for approving the selection of the artists to be commissioned or the purchase of an artwork.
Arts Tasmania's Public Art Officer will convene, and coordinate meetings of, an Artwork Selection Committee which will include the project architect, the agency and the Public Art Officer.
The best results are achieved from the Scheme when the artworks are integrated into the building design or fabric. To achieve this outcome it is essential that Arts Tasmania is consulted early in the project planning stage.
Further information on the scheme is available from the Arts Tasmania website at www.arts.tas.gov.au.
The Treasurer's Instruction 1201 requires agencies to ensure that their representatives and agency officers act in accordance with the Australian Standard Code of Tendering AS 4120-1994 for all procurement valued at $10 000 or more.
The Code of Tendering is a statement of ethics which underpin best practice tendering procedures. A copy of the code is available for download from the SAI Global web site at www.sai-global.com.
The Treasurer's Instruction 1201 also imposes on agencies an obligation to ensure that all tenderers comply with the Code of Tendering.
Agencies are required to ensure that appropriate insurance is in place in relation to building and construction/roads and bridges works. Further information is available from the Insurance Guidelines.
Agencies must ensure that all tenderers comply with the National Code of Practice for the Construction Industry, 1997 edition, and the Tasmanian Annexure to the National Code of Practice for the Construction Industry.
The National Code of Practice for the Construction Industry expresses the principles which Commonwealth, State and Territory Governments agree should underpin the future development of the construction industry in Australia.
The Tasmanian Government is committed to the implementation of the National Code of Practice for the Construction Industry, and the Tasmanian Annexure to the Code. Compliance with the Code is required to be a condition of tender for all procurement valued at $10 000 or more.
The National Code of Practice for the Construction Industry is available on the Australian Procurement and Construction Council (APCC) website.
The Tasmanian Annexure to the National Code of Practice for the Construction Industry details Tasmanian specific requirements.
On the completion of each building and construction major works contract, the performance of the contractor or consultant is assessed and rated and the results recorded and reported to the Department of Treasury and Finance. See Performance Reporting and the Treasurer's Instruction 1220 for more information.
A Public Private Partnership (PPP) is a method of procurement for social infrastructure projects and typically involves the government engaging the private sector to design, construct, finance and maintain social infrastructure, and delivery ancillary services, for a specific period.
The Tasmanian Government recognises that, when handled well, benefits can accrue to the community from involving the private sector on a competitive basis in infrastructure projects.
Tasmanian government agencies should only consider a PPP where it can be clearly established that there is sufficient scale and market appetite in Tasmania for a PPP to provide value for money to the government. Tasmanian government agencies considering a PPP should firstly contact the Shareholder Policy and Markets Branch of the Department of Treasury and Finance for further information.
The Treasurer's Instruction 1228 requires an agency to ensure that a contractor provides security in relation to all major works contracts.
For information on security see Contract Security.
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