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ARTICLE · 06 JUNE 2022

Tendering and contractual liability for local government

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When drafting an RFT, officers should ensure that it meets the criteria set out in the Local Government Regulations.

AustraliaGovernment, Public Sector
Murray Thornhill
Murray Thornhill
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Tendering & contractual liability for local governments

When it comes to tenders, local government officers working in procurement are well aware of their regulatory obligations under Part 4 of the Local Government (Functions and General) Regulations 1996 (WA). However, one aspect of putting out a request for tender (RFT) which can be overlooked is the risk of a claim being brought by an unsuccessful tenderer. It is not uncommon for a tenderer to become disenchanted with the process when the work is awarded to someone else and to bring a claim (typically for a breach of a process contract) against the government entity.

What is a process contract?

The courts have held that there may exist a preliminary process contract governing the conduct of the tender process before the awarding of the final contract. A process contract can be formed between the government authority and the tenderer through the tender invitation and the tenderer's submission in response. The

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