Financial

To complete a financial health review, we will need Tenderers to submit documentation/statements that
allow us to assess:
 Credit rating
 Beneficial ownership and related corporate entities
 GST status
 Profitability
 Revenue
 Cash flow
 Liquidity
 Borrowings
 Including any associated trajectories or forecasts and key financial ratios
A financial due diligence assessment report should show:
 Contract value as a percentage of the Tenderer’s annual revenue
 Former directors (or current staff) that have been disqualified.
 Winding up orders against the Tenderer (or a related entity) or notice that it is under external
administration.
 Insurances
 Defect liabilities currently affecting the Tenderer.

Legal
Most legal issues that may relate to delivery of the Project will be covered under the Contract, however a
review of prior/current actions is pertinent. To complete a basic assessment we would, at a minimum,
need Tenderers to submit documentation and carry out our own investigations, that allow us to assess:
 Relevant judgments or legal action involving the Tenderer.
 Relevant regulatory findings
 Evidence of compliance to modern slavery practices - we have a responsibility to take reasonable
steps to ensure our purchasing decisions do not inadvertently support illegal or unethical business
practices.
 Any Evidence of underpayment of staff and subcontractors, unreasonable rates and false claims
about the use and support of small or local businesses, Indigenous or disability workforce
suppliers.

Subcontracting
The project will require the Tenderer to rely heavily on subcontracting – which is a large potential risk.
Among other things, it’s important for us to identify the key subcontractors and carry out further due
diligence checks. Alternatively, a subcontracting agreement could be used to circumvent the due
diligence process.
To enable further checks, Tenderer should be asked to supply information about subcontractors they
intend to engage, including:
o Details about each subcontracting entity, including key personnel, history and
capabilities.
o Evidence of compliance with licensing requirements
 o Proof of public liability insurance and workers compensation insurance
o Details concerning how subcontractors would be appointed and monitored.
o Evidence that the tenderer has systems and contractual arrangements in place to
monitor subcontractors.
If the tenderer and subcontractor are related entities, or the subcontractor is related to a director or
senior executive of the tenderer, this will increase related party risks such as non-disclosure,
misstatements and possibly fraud.

RESOURCES TO COMPLETE IN-HOUSE INVESTIGATIONS:

Most basic information can be obtained from the following sources.
 Australian Securities and Investments Commission (ASIC)
 Australian Business Register (ABR)
 ABN Lookup
 Open Data
 Australian Charities and Not-for-profit Commission (ACNC)
Check whether the Tenderer is on the NSW Procurement or Local Government Procurement approved
prequalification scheme or contract. Alternatively, verify whether the Tenderer is a member of a panel or
contract maintained by another NSW agency.
Identify whether the Tenderer is a member of a recognised professional or industry association,
especially one that requires members to uphold minimum standards of quality, training or conduct.
Any awards or accolades won by the Tenderer, or if staff from the Tenderer have been office bearers for
a relevant association.
Court enforceable undertakings register | ASIC
Published Notices - ASIC
Bankruptcy Register search | Australian Financial Security Authority (afsa.gov.au)
Personal Property Securities Register (ppsr.gov.au)
Insolvency | ASIC
Enforceable undertakings - Fair Work Ombudsman
Litigation - Fair Work Ombudsman
Proactive investigations reports - Fair Work Ombudsman
EPA - Public registers (nsw.gov.au)
Recent decisions for all Courts and Tribunals - NSW Caselaw
Compliance & prosecutions | SafeWork NSW
Australian Business Licence and Information Service - ABLIS
Insurance Authority - Court decisions - SIRA (nsw.gov.au)
Building and Construction | NSW Industrial Relations