Controversial contract policy now in

In the first of six-part series on commercial development Tracey Cook investigates the Government’s new tendering policy.

TENDERING for State Government contracts is a fierce business. While the margins are low, the industry knows this is one client that is going to pay.

Last week a new State Government policy was formally implemented in the Department of Housing and Works to regulate the tendering process to ensure that no individual building company monopolised the bulk of Government development work.

Minister for Housing and Works Tom Stephens formulated the controversial policy to ensure an equal spread of work throughout the industry and prevent monopolies.

The new policy restricts building companies from holding more than five contracts at any one time and only applies to contracts over $1.5 million and below $25 million.

A further arm of the policy will apply from July 1, ruling that in any one financial year no com-pany will be able to have more the 25 per cent worth of the total value of government contracts.

A spokesman for Mr Stephens said that BGC Construction appeared to be the only company affected, however, the company held six contracts and had been allowed to continue in the tender process for a further three.

The construction giant is also tendering for the $34 million Geraldton Hospital project.

BGC Construction holds three of the top ten State Government contracts under construction including the $12.5 million Canning Vale High School, Metropolitan Low Security Women’s Prison and the $7.8 million Rockingham-Kwinana District Hospital emergency department redevelopment.

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