Supplier performance management for government non-residential building projects

The Supplier Performance Awards recognise suppliers that have performed best on government construction projects managed by the Department of Finance over the previous two years. The awards are presented in two categories, contractors and consultants.

2018 award winners

The 2018 contractor award went to joint winners Perkins (WA) Pty Ltd and Broad Construction Services (WA) Pty Ltd. Colin Wilkinson Developments Pty Ltd was runner up.

The 2018 consultant award went to Holton Connor Pty Ltd. Zuideveld Marchant Hur Pty Ltd and The Architecture Group Pty Ltd (trading as TAG Architects) were joint runners up.

Master Builders Association Apprentice of the Year

In addition, we sponsor the Most Outstanding Head Contractor Award at the Master Builders Association Apprentice of the Year awards. This award recognises the head contractor engaged by Government that does best to employ and support apprentices and trainees. The 2018 award was presented to ADCO Constructions Pty Ltd in recognition of their employment and support of apprentices and trainees in non-residential government building projects. The two other finalists for this category were Merym Pty Ltd (trading as EMCO Building) and Shape Australia Pty Ltd.

​The Supplier Demerit Scheme (the Demerit Scheme) describes how we manage very poor performance. When a supplier fails to meet Departmental requirements (see Infractions below), we may apply one or more demerits. Suppliers earning three demerits within a three year period may receive a sanction. This is managed by our Supplier Demerit Committee.

Infractions

An infraction happens when a supplier fails to meet one or more of our prescribed critical requirements. Initially such matters are handled by the project manager through the terms and conditions of the contract. Serious infractions will be submitted to the Supplier Demerit Committee, which will consider whether a demerit should be applied.

Infractions are:

• inadequate safety practices
• failure to meet a critical contractual requirement
• failure to perform to an acceptable standard
• use of inappropriate building materials or methods without approval
• unsatisfactory payment of subcontractors or subconsultants
• failure to progress disputes with us in a reasonable, constructive and professional manner
• non-payment of a dept owed to us
• insufficient effort to meet Buy Local Policy tender commitments
• insufficient effort to meet Western Australian Industry Participation Strategy commitments described in the Participation Plan
• failure to meet Priority Start Policy (or Government Building Training Policy) tender commitments or a failure to submit the relevant reports under the policies within five days of the due date.
• failure of a consultant to allow the use of approved alternatives when specifying a proprietary product in a specification without written approval as required under the Open and Effective Competition policy
• specification of a nominated subcontractor in a drawing or specification without written approval as required under the Open and Effective Competition policy
• proof of a failure to deliver contract outcomes for another government agency
• any act, omission or other matter that can be attributed to a supplier and causes loss or damage (financial or otherwise), risks a significant impact on our reputation or that we deem sufficient to make it inappropriate to contract with the supplier

Demerits

Where an infraction is referred to the Supplier Demerit Committee, the supplier has two weeks to explain why a demerit should not be applied. No explanation is taken as acceptance of the penalty.

The Committee will consider whether to apply one or more demerits, based on:

• any information on past performance
• information provided by the supplier
• operational requirements
• past precedents
• any other information as applicable

Demerits will expire:

• three years from the date the supplier is informed of the demerit
• when a sanction has been fully served (see below)

Sanctions

Sanctions may be applied when a supplier has received three demerits. Before receiving the third demerit point, the supplier has two weeks to explain why the demerit should not be awarded, and why a sanction should not be applied. No explanation is taken as acceptance of the penalty.

Possible sanctions are:

• downgrade of a contractor’s financial and/or technical prequalification status for a defined period
• suspension of a contractor’s prequalification status for a defined period
• making the supplier ineligible for contract award for a defined period
• suspension from a panel or contracting framework for a defined period
• downgrade or reduction of a supplier’s involvement in a panel or contracting framework for a defined period

Appeals

Suppliers can also appeal the Committee‘s decision within two weeks of notification of a demerit or sanction. Appeals can suggest that:

• we failed to follow the Demerit Scheme process
• we failed to take extenuating circumstances provided by the supplier into account