Hon. Tom Stephens questions the Minister for Transport regarding the terms of Main Roads network contracts, specifically concerning BGC Contracting Pty Ltd and the rationale for differing contract formats. The Minister, Hon. M.J. Criddle, provides explanations for the contract variations.

AnsweredQoN 191Legislative Council
Asked
14 September 2000
Portfolio
Transport

QuestionView source ↗

I refer to the minister’s answer yesterday on the Main Roads term network contracts for the Kimberley and Gascoyne and ask - (1) Will the minister confirm that negotiations with BGC Contracting Pty Ltd are proceeding on the basis of a Main Roads' initiated and scheduled on-road works regime? (2) Will the minister confirm that all other six term network contracts are fully outcome-based or fixed-price contracts? (3) Will the minister explain why BGC is being dealt with on a different basis from any other company with a term network contract? Hon M.J. CRIDDLE

AnswerView source ↗

(1) Yes. (2) The five term network contracts that have been awarded are outcome-based contracts. TNC 4 - Goldfields-Esperance - has a small component of Main Roads’ initiated works. Of the three contracts still to be awarded, which are all in negotiation stage, one is an outcome-based format. (3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.
(1) Will the minister confirm that negotiations with BGC Contracting Pty Ltd are proceeding on the basis of a Main Roads' initiated and scheduled on-road works regime? (2) Will the minister confirm that all other six term network contracts are fully outcome-based or fixed-price contracts? (3) Will the minister explain why BGC is being dealt with on a different basis from any other company with a term network contract? Hon M.J. CRIDDLE replied: (1) Yes. (2) The five term network contracts that have been awarded are outcome-based contracts. TNC 4 - Goldfields-Esperance - has a small component of Main Roads’ initiated works. Of the three contracts still to be awarded, which are all in negotiation stage, one is an outcome-based format. (3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.
(2) Will the minister confirm that all other six term network contracts are fully outcome-based or fixed-price contracts? (3) Will the minister explain why BGC is being dealt with on a different basis from any other company with a term network contract? Hon M.J. CRIDDLE replied: (1) Yes. (2) The five term network contracts that have been awarded are outcome-based contracts. TNC 4 - Goldfields-Esperance - has a small component of Main Roads’ initiated works. Of the three contracts still to be awarded, which are all in negotiation stage, one is an outcome-based format. (3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.
(3) Will the minister explain why BGC is being dealt with on a different basis from any other company with a term network contract? Hon M.J. CRIDDLE replied: (1) Yes. (2) The five term network contracts that have been awarded are outcome-based contracts. TNC 4 - Goldfields-Esperance - has a small component of Main Roads’ initiated works. Of the three contracts still to be awarded, which are all in negotiation stage, one is an outcome-based format. (3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.
Hon M.J. CRIDDLE replied: (1) Yes. (2) The five term network contracts that have been awarded are outcome-based contracts. TNC 4 - Goldfields-Esperance - has a small component of Main Roads’ initiated works. Of the three contracts still to be awarded, which are all in negotiation stage, one is an outcome-based format. (3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.
(1) Yes. (2) The five term network contracts that have been awarded are outcome-based contracts. TNC 4 - Goldfields-Esperance - has a small component of Main Roads’ initiated works. Of the three contracts still to be awarded, which are all in negotiation stage, one is an outcome-based format. (3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.
(2) The five term network contracts that have been awarded are outcome-based contracts. TNC 4 - Goldfields-Esperance - has a small component of Main Roads’ initiated works. Of the three contracts still to be awarded, which are all in negotiation stage, one is an outcome-based format. (3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.
(3) The formats of TNC 1 and TNC 2 are different from the other six TNCs because of the view that the isolation and the potential for major weather effects may have led to a premium being placed under the outcome-based format. A decision was made before issuing the request for proposal documents in late 1999 to seek tenders based on both the outcome-based and the mixed model. Examination of the tenders received revealed that it would be more economical for the mixed-contract format to be adopted and negotiations with the preferred proponent - BGC Contracting Pty Ltd - have proceeded on that basis. BGC Contracting Pty Ltd was one of a number of tenderers for TNC 1 and TNC 2 and all tenderers were dealt with on the same basis.

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