Remember back in 2012 “more than $70 million of ACT Government construction work has been thrown into jeopardy after the building arm of property giant Hilliers ….. had gone into voluntary liquidation”. Since then more businesses carrying ACT government contracts have gone under. This shows that ACT tender documentation and processes must be tightened so that public money is not ‘lost’ or put at risk in situations like Hilliers. Refer: http://www.canberratimes.com.au/act-news/70m-act-projects-at-stake-in-st-hilliers-collapse-20120516-1yq51.html#ixzz1v0hH5hAN
It should be mandatory for all bidders of multi-million dollar ACT government public works contracts to provide independent financial advice from their financiers (e.g. banks and/or other lending financial institutions) that they are financially viable to undertake the scope of works being tendered for, and have the capacity to pay their creditors (e.g. suppliers, contractors, professional fees and charges) throughout the tender if they are successful.
Companies unable to show financial viability should be excluded from the tender process immediately and details of their exclusion recorded in a public register. Hopefully companies will think twice before lodging a tender.