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• 1 Introduction
• 2 Relationship and Responsibilities
• 3 Tendering Ethics
• 4 Continuous Improvement and Best Practice
  • 4.1 Commitment
  • 4.2 Project Planning and Contract Documentation
  • 4.3 Cooperative Contracting
  • 4.4 Management and Administration of Contracts
  • 4.5 Innovation and the Use of Technology in Construction
  • 4.6 Environmental Management
  • 4.7 Security of Payment
• 5 Workforce Management
  • 5.1 Training and Skill Development
  • 5.2 Workplace Health and Safety
  • 5.3 Industrial Relations
• 6 Compliance
• 7 Definitions

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3 Tendering Ethics

3.1 Ethical principles
3.2 Collusive practices

The Australian Standard Code of Tendering (AS 4120-1994¹) constitutes a statement of ethics that underpins best-practice tendering procedures and obligates all parties who adopt it to refuse to condone unethical behaviour by others in the industry. All parties operating at all levels on Queensland Government building and construction projects are to adopt ethical principles consistent with The Australian Standard Code of Tendering. Inherent in the adoption of this standard is a commitment to deal only with industry parties whose standards of performance and behaviour conform to those expected by this Standard. Parties tendering will demonstrate a history of compliance with Queensland law and this Code.

3.1 Ethical Principles

The Australian Standard Code of Tendering is based on the following principles:

• tendering at all levels in the construction industry shall be conducted honestly and in a manner that is fair to all parties involved;
• parties shall comply with all legislative obligations, including those required by trade practices and consumer affairs legislation;
• the Principal shall have regard to the costs of tendering and the number of tenderers, recognising that the cost of tendering is a significant industry overhead;
• tenderers shall only tender where they intend to carry out the work;
• the Principal shall call for tenders only after the Principal has arranged funding for the project and has made a firm commitment to proceed with the project;
• the conditions of tendering shall be the same for each tenderer;
• parties shall not engage in practices such as collusion on tenders, inflation of prices to compensate unsuccessful Tenderers, secret commissions or any other such improper arrangements;
• the Principal and tenderers shall be prepared to attest to their probity, if necessary by statutory declaration and other reasonable means;
• tender documents shall specify the Principal’s requirements as clearly and precisely as possible and when documents are altered, sufficient time shall be allowed for all tenderers to review and revise their tenders;
• the Principal shall specify what information in the tender documents is required to be treated by tenderers as confidential. However, it is acceptable to have public openings of tenders and disclosure of Tender prices;
• any party with a conflict of interest shall immediately disclose that conflict of interest.

3.2 Collusive Practices

Collusive tendering practices are illegal and inconsistent with the establishment and maintenance of the ethical business practices that underlie good working relationships. Parties will ensure that collusive practices do not occur.

For the purpose of the principles outlined above, collusive practices include but are not limited to:

• any agreement between tenderers as to who should be the successful tenderer;
• any meetings of tenderers to discuss tenders before the submission of the tenders if the client is not present;
• exchange of information between tenderers for the payment of money or the securing of reward or benefit for unsuccessful tenderers by the successful tenderer;
• agreements between tenderers to fix prices or conditions of contract; that is, any collaboration between tenderers on prices or conditions to be included in contracts or commissions without the consent of the client;
• any assistance to any tenderer to submit a cover tender; that is, a tender submitted as genuine yet has been deliberately priced in order not to win the contract or commission; and
• any agreement between tenderers before submissions of tenders to fix the rate of payment of employer or industry association fees, where the payment of such fees is conditional on the tenderer being awarded the contract or commission.

Collusive activity and anti competitive behaviour are minimised by client practices which emphasise the principle of value for money in procurement and the tendering and selection process.

¹ Australian Standard Code of Tendering – AS 4120-1994, Standards Australia, 1994.

Last updated October 30, 2007

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