Managing Probity in Property Redevelopment Projects Marine Nincevic | Partner 17 October 2012
Agenda  Probity principles  Planning for probity management  Lessons from recent property redevelopment projects
Agenda  Probity principles  Planning for probity management  Lessons from recent property redevelopment projects
Probity Principles  What is probity?  Why is probity important to government?
Probity Principles (cont.) Principles – Fairness and impartiality – Use of competitive process – Consistency and transparency of process – Security and confidentiality – Identification and resolution of conflicts of interest
Agenda  Probity principles  Planning for probity management  Lessons from recent property redevelopment projects
Planning for Probity Management Appointment of probity advisor Appointment of probity auditor Governance plan
Planning for Probity Management (cont.) Advisor roles – Develop probity plan – Process to identify/monitor conflicts of interest – Confidentiality documentation – Security arrangements – Probity training for staff – Advising on evaluation process – Advising and reporting on probity issues
Planning for Probity Management (cont.) Auditor roles – Monitor compliance with probity – Review of evaluation process – Interim reporting to governing body – Reporting on final probity clearance
Agenda  Probity principles  Planning for probity management  Lessons from recent property redevelopment projects
Lessons St Kilda Triangle Development Kew Residential Development Melbourne Markets Redevelopment
Lessons (cont.) Probity plan, audit and advice – Understanding of importance of good probity – Adherence to probity plan and revise as necessary – Major projects – both probity advisor and probity auditor
Lessons (cont.) Maintain registers and review/monitor – Conflict of interest – Confidentiality
Disclosure of perceived conflict of interest Retain probity role until execution of final documentation Probity reports to contain detail
Lessons (cont.) Fair, open and competitive process – Negotiate with more than 1 party to maintain competition – Keep exclusive negotiation to minimum – Avoid changes in consortium – Avoid provision of information inequitably to proponents – Avoid entertainment events where tenderers likely to be present
Lessons (cont.) Contract management practices – Inadequate record keeping – Maintain high standard of file management – Retain copy all key documents
Managing Probity in Property Redevelopment Projects Marine Nincevic | Partner Direct 61 3 9288 0583 marine.nincevic@maddocks.com.au