Eligibility criteria for suppliers of low value construction works

Who can apply for pre-qualification onto the CSR in the low value construction works category?

Suppliers of construction works with demonstrated expertise and financial capacity to tender for projects with contract values below $750,000 (inclusive of Goods and Services Tax) may apply for pre-qualification on the Construction Supplier Register in the Low Value Works category at any time.

Suppliers interested in other pre-qualification pathways are encouraged to follow the information set out on the applying for pre-qualification on the Construction Supplier Register page.

Suppliers agree to be bound by the Construction Supplier Register’s mandatory pre-qualification requirements as part of the Construction Supplier Register’s application process.

What are the eligibility criteria that must be met by suppliers of low-value construction works pre-qualified on the Construction Supplier Register?

The eligibility criteria listed below must be met by suppliers of low-value construction works. These criteria are used to assess supplier applications and maintain ongoing pre-qualification to the Construction Supplier Register.

1. Entity legal status

Suppliers must be:

• an individual or sole trader
• a company registered with the Australian Securities and Investments Commission, or
• a partnership.

Suppliers must have an Australian Business Number (ABN) and / or Australian Company Number (ACN).

Required evidence

Evidence of the supplier’s business structure, including identification of executive(s) / key office bearers / senior management.

Evidence the supplier has an Australian Business Number (ABN) and / or Australian Company Number (ACN), or an extract from a relevant register.

Copy of registration of company or business operation with the Australian Securities and Investments Commission or relevant register. Offshore business structures should contact the Construction Supplier Register for further information.

2. Entity operation

Suppliers must be in business for at least two years.

Required evidence

Copy of registration or extract of company or business operation with the Australian Securities and Investments Commission or relevant register. Offshore business structures should contact the Construction Supplier Register for further information.

3. Disclosure

The Supplier must disclose any and all matters that could be reasonably anticipated to affect the integrity, reputation and probity of the Supplier, including but not limited to:

• The Supplier or any of its officers being convicted of a criminal offence (for the purposes of this clause criminal offence means a criminal offence that is a summary offence or an indictable offence)
• The Supplier or any of its officers being charged with or convicted of a offence under any of:
  • the Building Act 1993 or the Building Regulations 2018
  • the Environment Protection Act 2017 or the Environment Protection Regulations 2021
  • the Occupational Health and Safety Act 2004 or the Occupational Health and Safety Regulations 2017
  • the Architects Act 1991 or the Architects Regulations 2015
  • the Professional Engineers Registration Act 2019 or the Professional Engineers Registration (General, Exemption And Assessment Scheme Fees) Regulations 2021.

For the purposes of this clause an offence includes a statutory offence, or a criminal offence that is a summary offence or an indictable offence.

• The Supplier or any of its officers having any registration, license, permit or approval necessary for the Supplier to carry out Construction Works or Construction Services in Victoria (including but not limited to Building Work under the Building Act 1993) suspended or cancelled at any time.
• The Supplier or any of its officers being subject to disciplinary or penal action taken by any Regulator or disciplinary body.

Failure by a Supplier to make any disclosures required by these eligibility criteria may result in rejection of that Supplier’s application or ongoing pre-qualification on the Construction Supplier Register.

Where the Supplier makes any disclosures, the Lead Department is satisfied that those disclosures do not indicate that inclusion of the Supplier on the Construction Supplier Register could reasonably be anticipated to:

• bring or tend to bring the State or a State Agency into disrepute
• bring or tend to bring the State’s public construction and infrastructure procurement into disrepute
• adversely affect the State’s public construction and infrastructure procurement
• be inconsistent with the State’s public construction and infrastructure procurement policy objectives.

Required evidence

A letter from the Supplier, provided on letterhead and signed by a director, partner or sole practitioner confirming that full and accurate details of all relevant disclosures have been included in the letter.

The Supplier must disclose any and all matters that could be reasonably anticipated to affect the integrity, reputation and probity of the Supplier.

4. Works categories that require registration as building practitioner

At least one individual who is a registered director of a company must hold registration, as a registered building practitioner, with the Victorian Building Authority relevant to the pre-qualification category(ies) applied for.

At least one individual who is a registered director of a company must be a registered building practitioner with the Victorian Building Authority relevant to the pre-qualification category/ies applied for.

At least one individual who is a partner within a partnership must be a registered building practitioner with the Victorian Building Authority relevant to the pre-qualification category/ies applied for.

A sole trader must be a registered building practitioner with the Victorian Building Authority relevant to the pre-qualification category/ies applied for.

Required evidence

A copy of the certificate of registration, as a registered building practitioner, issued by the Victorian Building Authority, or an extract from the register of building practitioners maintained by the Victorian Building Authority. The registration must relate to the category or categories applied for.

For information, the following specific registrations apply to pre-qualification categories for works:

5. Practice and experience in a pre-qualification category

The supplier’s core business must be in construction works.

Suppliers can apply for pre-qualification in one or more of the Construction Supplier Register’s construction works categories.

Suppliers must practice and have experience in the Construction Supplier Register pre-qualification category to the satisfaction of the Lead Department.

Suppliers must have completed at least three projects of a similar size and complexity for the pre-qualification category to the satisfaction of the Lead Department.

Required evidence

A list of completed projects, including details of the projects, as directed on the Construction Supplier Register’s supplier portal.

Contact details of all nominated referees for all projects.

• The Construction Supplier Register team will contact at least two nominated referees for a referee check that confirms the supplier practices in the category being applied for and holds the level of experience expected of a competent practitioner of that category.
• The Construction Supplier Register’s referee questionnaire covers a range of project performance criteria including:
• timeliness
• quality
• management of the project
• resource management
• documentation
• administration
• health and safety management
• environmental management.

6. Commitment to Supplier Code of Conduct

Suppliers must commit to the Victorian Government’s Supplier Code of Conduct.

Required evidence

A signed letter committing to uphold the Supplier Code of Conduct (in the form set out by the Lead Department).

7. Insurances – minimum required

Suppliers must hold public liability insurance. The policy must:

• be occurrence-based with an amount of no less than AUD$10 million for any one claim; and
• include a clear definition for third party injury and property damage.

Suppliers must hold Victorian WorkCover insurance or provide evidence of self-insurance that covers all personnel engaged in the delivery of construction works or services.

Suppliers must hold professional indemnity insurance. The policy must:

• be claims-based with an amount of no less than AUD$2 million for any one claim.

Suppliers manufacturing, maintaining or modifying any products must hold product liability insurance. The policy must:

• be an occurrence-based policy with an amount of no less than AD$10 million for any one claim; and
• include a clear definition for third party injury and property damage.

Required evidence

Evidence of current insurance policies, in the name of the supplier.

Copy of insurance certificate of currency, in the name of the supplier.

Insurance compliance declaration, when issued to the supplier.

Evidence that the supplier has a Victorian WorkCover insurance policy or proof of self-insurance that covers all personnel engaged in the delivery of works.

Copy of Victorian WorkCover premium notice.

Note: The Construction Supplier Register assesses supplier’s minimum insurance requirements. However, if a supplier is engaged to undertake construction works or services, the contract may mandate different or higher insurance coverage. In such cases, the supplier must provide evidence to the contracting party that it holds the required insurance levels.

8. Occupational health and safety management

The supplier’s Occupational Health and Safety management system meets the criteria set out in Mandatory evaluation criteria for Occupational Health and Safety management (Attachment 1 to Instruction 3.7), as determined by an independent assessor appointed by the Lead Department.

Required evidence

The supplier’s Occupational Health and Safety management system, including documentary evidence that the management system is in use, is assessed as meeting the criteria set out in the Low value works projects Guide on the mandatory Occupational Health and Safety management criteria by an independent assessor appointed by the Lead Department.

Suppliers may use one of the following templates when submitting evidence of safety management processes:

9. Industrial relations management

The supplier’s Industrial Relations management self-assessment meets the criteria set in Mandatory evaluation criteria for industrial relations management (Instruction 3.7.3(c) Attachment 2, to the satisfaction of the Lead Department.

Required evidence

The supplier’s Industrial Relations management self-assessment (included as part of the Detailed guide on the mandatory industrial relations management criteria) is assessed as meeting the criteria set in Mandatory evaluation criteria for industrial relations management (Instruction 3.7.3(c) Attachment 2) to the satisfaction of the Lead Department.

Suppliers must use the following template when submitting their self-assessment of industrial relations management:

10. Financial standing

The supplier’s financial standing is assessed as acceptable, to the satisfaction of the Lead Department.

Required evidence

Opinion, signed by the supplier’s accountant using a form provided by the Lead Department, that for the last financial year the supplier met certain financial performance standards.

Financial statements (including profit and loss statements, balance sheets and notes to accounts) covering at a minimum the last two financial years, prepared in accordance with Australian Accounting Standards.

Financial opinion and/or statements and checks with credit reference agencies are used to confirm that for the last financial year, the supplier has:

• Positive Tangible Net Worth

Tangible Net Worth is defined as ((Total assets – intangibles) - (Total Liabilities))

• Positive Working Capital

Working Capital is defined as (Current assets - Current liabilities)

• Current Ratio must be a minimum of 1

Current Ratio means (Current asset / Current Liabilities)

• History of paying creditors on time – the Lead Department talks to trade suppliers, subcontractors and other referees to determine the payment history. Consistently late payment is an indicator of potential financial difficulty.
• Credit rating – a credit rating assessment may be required in certain circumstances and will be carried out by a licensed credit rating agency.

The financial standing of the supplier has been assessed as acceptable by an independent assessor appointed by the Lead Department.

Suppliers may use the following template to describe their financial standing, if annual financial statements are not prepared:

11. Maximum project limit a supplier may perform

For all works categories the maximum project value a supplier may perform is determined by considering the financial standing of the supplier and the supplier’s project history.

The Lead Department will determine the maximum project value.

The maximum project-value limit will not be higher than the highest value project completed by the supplier in the pre-qualification category applied for, provided the supplier’s financial standing can support projects of that value.

The maximum project limit is $749,999 (inclusive of GST).

The financial standing of the supplier has been assessed as acceptable, to the satisfaction of Lead Department.

The supplier has completed at least three projects relevant to the pre-qualification category and maximum project value, to the satisfaction of the Lead Department.

Required evidence

Evidence as set out for financial standing.

Evidence as set out for practice and experience in a pre-qualification category.

12. Pre-qualification information

Suppliers must fully complete and accurately maintain their pre-qualification information through the Construction Supplier Register’s supplier portal, in accordance with the mandatory pre-qualification requirements, to the satisfaction of the Lead Department.

Required evidence

Accurately completed application form online, through the Construction Supplier Register’s supplier portal.

Submission of evidence of registrations, work history and operational documents as applicable to the pre-qualification categories held, at least annually.

Help and support

Contact the Construction Supplier Register team for help understanding the eligibility criteria used to assess supplier applications and monitor ongoing compliance with the Construction Supplier Register’s mandatory pre-qualification requirements.