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​​Value focus

Whole-of-life cost, quality and use will be considered alongside price when planning, assessing and purchasing assets.

Standards

  • When procuring lessee assets agencies shall consider the whole-of-life cost and ensure that their procurement process complies with any relevant Government Procurement Rules and CCC. Agencies when procuring soft fit-out lessee assets shall ensure that the product carries with it a manufacturer’s or supplier’s warranty; which in the case of furniture shall be at least 10 years, beginning on the date of delivery of the product.
  • Agencies when procuring lessee assets shall ensure that they, as a minimum, comply with any applicable standards, for example AS/NZS or ISO.

Guidelines

  • When procuring lessee assets, agencies should consider not just the purchase price, but also installation, disposal, on-going operating and maintenance costs, and in particular the labour component of the maintenance cost. See Scenario 2.
  • When planning fit-out agencies should consider any accounting implications and ensure that in the accounting treatment of the fit-out they are following Public Benefit Entity accounting standards and generally accepted accounting practice. Consideration needs to be given, but not limited to: any lessor incentivised component of the lessee fit-out; agency capitalisation policy; and any make-good requirements. Also, as part of their asset capitalisation policy, agencies should have guidelines as to what can or cannot be capitalised as part of a fit-out.
  • Hard fit-out should be carefully planned, scoped and its delivery managed by an experienced project manager to ensure that the agency’s requirements are met in the most cost effective way.
  • To help achieve value for money when undertaking fit-out and refurbishment work agencies should use the appropriate government standard development agreement template. Two government standard development agreement templates have been developed: ‘Complex’ where the fit-out or refurbishment works are major in value and scope; and ‘Less Complex’ for where the fit-out or refurbishment works are minor in value and scope
  • To future proof the leased area and negate unnecessary and costly expenditure in the future, agencies should, when any hard fit-out is put in place, ensure that the services configuration is such, that if the hard fit-out is removed, the services in place will continue to comply with the Building Code.
  • When fixed partitions are required it is not always necessary to opt for a full height floor to ceiling wall. Agencies, as an alternative, should consider using a partial height wall or partition, which can often deliver an acceptable level of acoustic privacy, for a lesser cost. This is primarily because partial height walls do not impact on inner and outer ceiling services.
  • Lessee asset materials and finishes should be appropriate for government use. That is, modest, functional, durable, and value for money.
  • Agencies should prioritise selecting Core Products when procuring furniture assets through the CCC for Office Furniture and Related Services. This collaborative approach across agencies is intended to provide value for money, reduce whole-of-life furniture costs and reduce the complexity and cost of furniture procurement.
  • When undertaking smaller soft fit-out procurements, where the cost falls below the value threshold specified under the Government Procurement Rules, agencies should seek to ensure competitive tension is maintained between suppliers on the CCC for Office Furniture and Related Services by obtaining a series of quotes.
  • Whenever practicable agencies should consider acquiring the cheaper rather than the more expensive product, as long as the cheaper product is fit-for-purpose, delivers a similar utility and has the lower whole-of-life cost. For example, as a significantly cheaper alternative to an AV Projector, consider large flat-screen televisions for presentations, particularly where the image is not required to cover the full wall.
  • Prior to disposing of surplus soft fit-out assets agencies should establish, with the GPG’s assistance if required, whether the assets can be reused by another agency. If assets that are to be transferred to another agency have a residual value, they should be transferred at that value.
  • When disposing of surplus soft fit-out assets in the market, agencies should ensure that they achieve the best price possible. This will typically be through an auction process.

Examples of applicable furniture standards include:

  • AS/NZS 4438: 1997 Height Adjustable Swivel Chairs up to and including AFRDI Level 6
  • AFRDI 142 – Rated Load for use by people heavier than 110 kg
  • AS/NZS 4442: 1997 Office Desks
  • AS/NZS 4443: 1997 Office Panel Systems
  • AS/NZS 4688.1: 2007 Furniture – Fixed Height Chairs
  • AS/NZS 4688.2: 2000 Furniture – Fixed Height Chairs, determination of strength and durability
  • AS/NZS 4688.3: 2000 Furniture – Fixed Height Chairs, determination of stability upright chairs
  • AS/NZS 4688.4: 2000 Furniture – Fixed Height Chairs, determination of stability, chairs with tilting or reclining mechanisms
  • AS/NZS 4703: 2007 Electrical Wiring in Furniture
  • AS/NZS 4790: 2006 Furniture – Storage Units, determination of strength and durability
  • ISO 14024: 1999 Environmental Labels and Declarations.
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