2021-04-06 Services and Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                               6 APRIL 2021


7.      The adoption of a tenderer financial capacity assessment policy will not transfer any
        responsibility or damages to Council should an insolvency event arise.
Compliance with the policy and guideline by Council officers will assist in ensuring that suppliers
engaged to deliver projects via a tender process are identified (based on available information) to
have the financial capacity to remain solvent and meet contractual obligations, including where
applicable payments to sub-contractors, throughout the duration of the contract period.
The requirement for tenderers to provide additional information as part of tender submissions will
place an additional administration requirement on those entities, and may possibly result in tender
responses not being provided (particularly small local contractors). The potential impacts on the
number of tender submissions received by category will be monitored over the next 12-24 months
to determine any potential compliance challenges - particularly for small local contractors.
Previous Council Consideration
Nil.
Finance
The application of the policy and guideline will result in additional costs where financial capacity
assessments are outsourced to experienced finance/economic consultants.
Risks & Opportunities
Risks
Reputation – Council risks reputational damage should potentially avoidable contracted company
insolvencies result in project delivery delays, additional costs and sub-contractor losses.
Financial – Insolvencies on Council projects result in legal and other potential costs associated with
retendering and delivering an impacted project.
Opportunities
The application of a financial capacity assessment policy and guideline for tenderers will assist in
minimising (but not eliminating) the likelihood of an insolvency on a Council project.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Executive Team
Procurement Manager
Infrastructure Planning, Design and Delivery Branch
Departments/Sections Consulted:

 x     Chief Executive Officer   x   Community Services                      x   Corporate Services
       Executive Officer         x   Director                                x   Director
       Executive Support             Community Development                   x   Financial Services
                                     Community Facilities                        ICT
                                     Libraries & Galleries                   x   Procurement & Fleet
                                     Local Laws                                  Property
                                     Waste & Environmental Health                Revenue Services

 x     Executive Services            Environment & Sustainable Development   x   Infrastructure Services
 x     Director                      Director                                    Director
       Community Engagement          Building & Plumbing Services                Asset Management
       Customer Service              Development Assessment                      Buildings and Facilities
 x     Governance                    Economic Development                        Civil Operations
       People and Culture            Environmental Services                      Disaster Management
                                     Strategic Land Use Planning             x   Infrastructure Planning,
                                                                                 Design and Delivery



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