Mr McGowan questions the cost of new chairs in the Legislative Council refurbishment. The Treasurer responds that the refurbishment was a lump sum contract, making individual chair costs difficult to isolate, but provides an estimated cost from the contractor.

AnsweredQoN 3025Legislative Assembly
Asked
19 May 2010
Portfolio
Treasurer

QuestionView source ↗

I refer to the refurbishment of the Legislative Council and ask:
(a) what was the cost to manufacture each new chair in the Legislative Council;
(b) what was the price paid by the State Government for each new chair in the Legislative Council; and
(c) will the Treasurer table a copy of the invoice and receipts related to the purchase of the new chairs; and
(i) if not, why not?

AnswerView source ↗

Answered
22 June 2010
Response time
34 days
Department of Treasury and Finance
(a) The refurbishment of the Legislative Council Chamber included new cabinet work, carpet, lighting, audio system, air-conditioning and seating. This was packaged into one tender, and awarded for a single lump sum price to the lowest tenderer. The contract sum was below the pre-tender estimate prepared by a consultant quantity surveyor engaged by the Department of Treasury and Finance (DTF).
In accordance with the contract requirements and normal industry practice, the contractor provided a limited breakdown of the costs in broad trade groups, but not at individual component level. As a consequence, the cost of individual items such as chairs was not provided as part of the tendering and contract delivery process. The trade breakdown level is sufficient for the DTF to form an opinion as to whether the tender as a whole provides value-for-money and to assess progressive claims for payment made by the contractor.
The cost to manufacturer each chair is a matter between the tenderer and his sub-contract chair manufacturer. The cost of the chairs was included in the tenderer's furniture trade element of his tender, along with other furniture related works.
The works included the provision of 44 new members' chairs, four other Chamber chairs, and the refurbishment of two existing chairs and the bench seats to the President's Gallery. The members' chairs are custom made, high quality and ergonomically designed specially for their purpose.
As a consequence of a media enquiry after the work was completed, DTF sought advice from the contractor as to the price paid for the chairs. The contractor has advised that the price paid to his sub-contractor for the members' chairs was $1,450 (excluding GST) per chair.
It should also be noted that Members were given an opportunity to comment on a shortlist of 2 chairs. Parliamentary Services has advised that these 2 chairs were placed in the Members Lounge and members were invited to comment on them. One chair was subsequently selected, refined and finally specified in the tender documents for the refurbishment contract. The contractor sourced the chairs from a subcontract supplier as part of the overall refurbishment contract.
(b) The actual price paid by the State Government for each new chair in the Legislative Council is not information that was requested as part of the contract, nor is it relevant to the administration of the contract, given that the contract was awarded on a single lump sum price basis (for all the refurbishment works).
(c) Due to the chairs being part of a lump sum contract within which the chairs are not identified as an individual item, there was no individual invoice directly related to the chairs, and hence no individual receipt.
(i) Not applicable.
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