Hon. Kate Doust questions the Finance Minister regarding the builders prequalification scheme and insolvent head contractors, seeking assurance that financially unstable companies are prevented from receiving state government contracts. The Minister acknowledges improvements and a full review of processes.

AnsweredQoN 365Legislative Council
Asked
7 August 2013
Portfolio
Finance

QuestionView source ↗

BUILDING MANAGEMENT AND WORKS —
SUBCONTRACTORS
365. Hon KATE DOUST to the Leader of the House representing
the Minister for Finance:
I refer the minister to page 30 of the Small Business
Commissioner's report on the construction subcontractor investigation,
which states that all insolvent head contractors had been subject to the
builders prequalification scheme.
(1) Why did
these companies pass the builders prequalification scheme if they were in such
a dire financial position?
(2) Will the
government alter the current standards of assessment so that financially
unsuitable companies no longer get issued state government contracts; and, if
not why not?
(3) If yes to (2) —
(a) what changes will take place;
and
(b) how long will it take to
implement these changes?

AnswerView source ↗

I thank the honourable member for some notice of the
question.
(1) At the
time of applying for prequalification, the companies were assessed as possessing
sufficient financial capacity.
(2) Building
Management and Works has made a number of improvements to its prequalification
and business risk assessment processes.
(3) BMW is
undertaking a full review of its processes and will implement changes in due
course.

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