Supplier performance management for government non-residential building projects

How the Department of Finance manages supplier performance for maintenance, construction, design and investigation projects.

The government wants its projects delivered by suppliers that perform to an excellent standard every time. It also wants to provide meaningful feedback to suppliers that will strengthen Western Australian industry. To do this, we use a framework of performance management schemes. These schemes ensure that good and bad performance is recorded, communicated and acted upon.

Our supplier performance framework consists of:

Supplier Performance Awards

The Department of Finance recognises excellent supplier performance through awards.

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 three categories; contractors, architects and cost managers.

Previous winners

Contractor Award

  • 2024 - Kimberley Green Constructions
  • 2024 Regional Contractor - Colab Construction
  • 2024 Aboriginal Contractor - GBSC Yurra
  • 2023 - Perkins Builders
  • 2023 Regional Contractor - Colab Construction
  • 2023 Aboriginal Contractor - Kullarri Building
  • 2022 - PS Structures
  • 2022 Regional Contractor - Pilbara Constructions
  • 2022 Aboriginal Contractor - Colab Construction
  • 2021 - PS Structures
  • 2021 Regional Contractor - Kimberley Green Constructions
  • 2021 Aboriginal Contractor - Brahman Contracting
  • 2020 - PACT Construction
  • 2020 Regional - GBSC Yurra
  • 2019 - PS Structures
  • 2019 Regional - Wauters Enterprises
  • 2019 runner up - Universal Constructions Pty Ltd and Broad Constructions WA
  • 2018 - Perkins (WA) Pty Ltd and Broad Construction Services (WA)
  • 2018 runner up - Colin Wilkinson Developments 

Architect Award

  • 2024 - iredale pedersen hook architects
  • 2023 - TRCB
  • 2022 - TAG The Architecture Group
  • 2021 - T&Z Architects
  • 2020 - iredale pederson hook
  • 2019 winner – Cameron Chisholm and Nicol
  • 2019 runner up – TAG The Architecture Group  and Gresley Abas
  • 2018 winner – Holton Connor
  • 2018 runner up – Zuideveld Marchant Hur and The Architecture Group t/a TAG Architects

Cost Manager Award

  • 2024 - Ralph Beattie Bosworth
  • 2023 - Rawlinsons (WA)
  • 2022 - Rider Levett Bucknall
  • 2021 - Rawlinsons WA
  • 2020 - H& W Quantity Surveyors
  • 2019 winner – Rider Levett Bucknall
  • 2019 runner up – Donald Cant Watts Corke (WA) 

Major Project Award

2024 - Perth Zoo Café and Function Centre

  • Crothers Construction (contractor)
  • CHRISTOU Design Group (architect)
  • Rider Levett Bucknall (cost manager)

2023 - Sir Charles Gairdner Hospital Upgrade to Catheter Laboratories and Interventional Radiology Rooms  

  • Devlyn Construction (contractor)
  • Hames Sharley (WA) (architect)
  • Ralph Beattie Bosworth (cost manager)

2022 - Department Primary Industries and Regional Development Laboratories

  • ADCO Constructions (contractor)
  • Silver Thomas Hanley (architect)
  • RBB (cost manager)

2021 - Belridge Secondary College Performing Arts Centre

  • McCorkell Constructions (contractor)
  • Iredale Pederson Hook Architects (architect)
  • Rawlinsons (cost manager)

2020 - Bob Hawke College Stage 1

  • PACT Construction (contractor)
  • T&Z Pty Ltd and Bateman Architects (architect)
  • Rider Levett Bucknall (cost manager).

 

Announcements

 

Head Contractor Apprentice and Training Award

Supplier Demerit Scheme

Most suppliers do the right thing. However, when a supplier performs poorly or breaches a critical requirement, they may be managed under the Supplier Demerit Scheme (the Demerit Scheme).

The Demerit Scheme describes how we manage poor performance. When a supplier fails to meet the Department of Housing and Works (the Department) requirements (see Infractions below), the Department will raise its concerns with the supplier and invite them to provide a submission. The Department’s Supplier Demerit Committee (the Demerit Committee) considers the matter and any extenuating circumstances, and may apply one or more demerits. Suppliers earning three demerits within a three-year period may receive a sanction.

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 Demerit Committee, which will consider whether a demerit should be applied.

Infractions are:

  1. inadequate safety practices
  2. failure to meet a critical contractual requirement
  3. failure to perform to an acceptable standard
  4. use of inappropriate building materials or methods without approval
  5. unsatisfactory payment of subcontractors or subconsultants
  6. failure to progress disputes with us in a reasonable, constructive and professional manner
  7. non-payment of a debt owed to the Department
  8. insufficient effort to meet Buy Local Policy tender commitments or contractual obligations
  9. insufficient effort to meet Western Australian Industry Participation Strategy commitments or contractual obligations described in the Participation Plan
  10. failure to meet Priority Start Policy tender commitments or contractual obligations, or a failure to submit the relevant reports under the policies within five days of the due date
  11. failure of a consultant to allow the use of approved alternatives when specifying a proprietary product in a specification without written approval as required the Department
  12. specification of a nominated subcontractor in a drawing or specification without written approval as required by the Department
  13. proof of a failure to deliver contract outcomes for another government agency
  14. submits false and/or misleading information to the Department
  15. 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 the Department’s reputation or that we deem sufficient to make it inappropriate to contract with the supplier

Demerits Process

Where an infraction is referred to the Demerit Committee:

  • the Demerit Committee will raise its concerns with the supplier and invite the supplier to make a submission detailing any extenuating circumstances that led to or exacerbated the infraction and any reasons why the supplier believes it should not have any demerits or sanctions applied against it
  • the supplier has two weeks to explain why any demerits or sanctions should not be applied
  • suppliers are not obliged to provide a submission, however this will be interpreted as acceptance that the infraction occurred and there is no other information the Demerit Committee should consider in its deliberations

The Demerit Committee may consider multiple sources of information when deciding whether to apply any demerits or sanctions, including:

  • the seriousness of the infraction
  • information provided by the supplier
  • historical performance of the supplier and the Department’s operational requirements

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 imposed once a supplier accumulates three demerits. Sanctions are generally applied for a defined period.

Possible sanctions include:

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

Appeals Process

Suppliers can appeal the Demerit Committee‘s decision within two weeks of notification of any demerits or sanctions.

The appeals process is not an opportunity to revisit the matter that gave rise to any demerits or sanctions. Suppliers must provide evidence to demonstrate:

  • the Demerit Committee failed to follow the Demerits Process, or that
  • the Demerit Committee failed to take extenuating circumstances provided by the supplier into account

Appeals must be in writing and should be processed within four weeks of receipt.

The original decision will stand while the appeal is being considered by the Demerit Committee.

Supplier performance reporting templates

Referee reports should be used to assess suppliers under consideration for tenders, and performance reports should be used to assess suppliers who undertake contracts managed by Finance.

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