The Western Australian Government will offset bid costs for state infrastructure projects as part of reforms to increase competition and market capacity.
These changes were a result of direct feedback from the Master Builders Association (MBA) and major builders operating in Western Australia and on the east coast.
The Bid Contribution Policy for Non-Residential Major Projects has been developed in consultation with MBA and top Tier 1 and 2 contractors.
Administered by the Western Australia Department of Finance, the initiative is aimed at increasing market capacity and competition in Western Australia on critical projects including hospitals, correctional facilities and cultural buildings.
It is targeted at projects with construction works valued over $100 million and other builds that are considered high risk or high complexity, including strategic regional projects.
Proponents invited to the second stage of eligible procurement processes will be able to apply for a financial contribution up to $750,000 towards their bid costs, with the state to be provided unencumbered use of the intellectual property associated with each bid.
High-quality bids on major projects require considerable investment from builders. This policy acknowledges that investment and provides financial contributions to support the development of complex bids that provide valuable information and intellectual property for the state.
The policy provides a clear and transparent approach to bid contributions that is streamlined for government and industry.
Western Australian Finance Minister, Sue Ellery, said, “This is an important initiative developed by the State Government following consultation with MBA and top Tier 1 and 2 builders on how to increase market capacity in Western Australia’s building and construction sector.
“It aims to incentivise contractors to invest their time and future in the State while also creating local jobs.
“We understand that high-quality bids on major projects require considerable investment from bidders. The intent of this policy is to partially offset expenses borne by proponents to ensure the bids are developed at a high level, further supporting industry and reducing risk to the state.”
Master Builders Association WA CEO, Matthew Pollock, said, “This initiative was a key priority of MBA’s Regulatory Reform Package developed with Government.
“Offsetting bid costs for large or complex projects will encourage more contractors to bid. Greater competition will mean better bids and better value for money for taxpayers.
“Giving access to $750,000 towards bid costs will ensure contractors can properly engage the right technical consultants to de-risk the tender process and deliver more complete bids to government.
“There is a record pipeline of major projects to deliver in Western Australia. This initiative is about industry and government working collaboratively to ensure we deliver the major project pipeline in the most effective way possible.”
