A parliamentary question regarding cost increases for the Kalgoorlie fire station upgrade, tender processes, and local contractor involvement. The Minister for Finance provides explanations for the cost increases and tender outcomes.

AnsweredQoN 823Legislative Council
Asked
10 August 2023
Portfolio
Finance

QuestionView source ↗

FIRE STATION —
KALGOORLIE
823. Hon MARTIN ALDRIDGE to the Minister for Finance:
I
refer to a media statement issued by the Minister for Emergency Services on 2
August 2023 titled ''Builders chosen for Kalgoorlie fire station
upgrades''.
(1) Why has there
been an increase in costs from the $1.2 million committed to upgrade this
facility, as announced on 8 September 2021?
(2) How many
applications were received for the tender for this project and what was the
financial range of the tender applications?
(3) How many
applications were received from builders based in the goldfields region and was
any weighting given to local contractors as part of the tender process?
(4) Can the
minister please identify what changes, if any, have been made to the scope of the
project since the initial tender process, which concluded in December 2022?

AnswerView source ↗

I thank the
honourable member for some notice of the question.
(1) The increase is due to cost escalation from the
initial project estimate due to global supply chain disruptions and
volatile market conditions.
(2) This project has been openly tendered twice, with
one bid received on each occasion. The first tender was tendered at a cost
in excess of $3.5 million. The contract was subsequently awarded at a value of
$1.9 million following the second open tender process.
(3) The only respondent to the first tender was a goldfields-based
company. No respondents were located within the region in the subsequent
tender process. The Department of Finance's longstanding practice has
been to increase the qualitative weighting for the Western Australian industry
participation strategy criteria from 20 to 30 per cent as part of its ongoing
support for small and local businesses. In line with this, there is a commitment
to use local trades and suppliers as part of this contract.
(4) There were no
material changes to the scope between the tender processes.

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