The ACT Government has operated a prequalification scheme for construction industry suppliers since 1993. This is a primary risk management approach to dealing with an industry recognised as high risk. Contractors are required to be prequalified to tender for works estimated at greater than $100,000. Consultants are required to be prequalified to tender for works estimated at greater than $50,000 and for engagement to undertake studies where the fee is greater than $10,000.

Prequalification is awarded within specific financial limits, based on financial assessment and technical capacity/past performance history. Suppliers are required to demonstrate that they have the technical and financial capacity to undertake works, as well as having appropriate management systems in place such as quality assurance, occupational health, safety and rehabilitation, environmental and industrial relations. Insurances, licences and mandatory qualifications are checked for currency and for consistency with the role being applied for.  Individual firm prequalification is subject to cyclical review and renewal, annually for contractors and every 18 months for consultants. Systems are audited for compliance, either by third party auditors or ACT Government accredited second party auditors.

A national framework of consistent prequalification benchmarks has been agreed by all Australian governments through the work of the Australian Procurement and Construction Council APCC, http://www.apcc.gov.au. Compliance with the National Code of Practice for the Construction Industry is a requirement of all suppliers. This approach is aimed at not only streamlining and improving the efficiency of the tender process, but also facilitating industry development by identifying industry reform initiatives/objectives and measuring suppliers' performance against relevant benchmarks.

The detailed prequalification requirements are currently being reviewed, and any reforms will be implemented during 2008.

For further details contact the Prequalification Registrar on 02 6207 8101.