For a high degree of planning certainty, the agency should obtain development approval prior to the close of the Call for Detailed Proposals based on the agency’s reference project (as used to construct the Public Sector Comparator). This allows short-listed bidders to submit fully costed and underwritten bids, prior to selecting a preferred proponent and ensures a high level of competitive tension in pricing the development conditions of the project.
This planning approval process is most likely to be used for projects like toll-roads where the planning approval and public consultation process usually commences well before the call for Expressions of Interest or for projects where the agency does not require significant private sector innovation.
Where non-conforming proposals are submitted, the planning approval implications of the proposals should be carefully considered (see section 3.6.7 for more information). Non-conforming proposals that are not consistent with the project definition, environmental approval or approval condition require a further Development Approval. Therefore, the evaluation would need to take into account the likely cost and time implications of seeking a further Development Approval, and who should bear the planning risk.
Where a Preferred Proponent is selected based on a non-conforming proposal, the Preferred Proponent and procuring agency should meet as early as possible with the Department of Planning to discuss the planning implications.