Unsolicited bids guideline released

State Government has released the Unsolicited Bids Guideline for the Sale or Lease of State-Owned Land (Guideline).

A copy of the Guideline is available here.

What is an unsolicited bid?

An unsolicited bid is “a market-led proposal put to Government by the private sector which has not been formally requested by Government.” 

In simple terms, an unsolicited bid is a bid by a proposed purchaser or lessee to acquire or lease land owned by the State which has not been made publicly available for sale or lease by the State.

Why is it relevant?

The Guideline is relevant because it sets out how the private sector can deal directly with the Government on unique land proposals that provide an economic, social or environmental benefit to the State.

When does the Guideline apply?

The Guideline applies to all unsolicited bids for State-owned land in Western Australia:

• where the estimated cost of the proposal (excluding the value of the State-owned land) is $5,000,000 or more; or
• that Cabinet, Premier, or the Minister for Lands directs should be dealt with under the Guideline.

Criteria for an “unsolicited bid”

There are a number of criteria a proposal must meet before it can be considered as an unsolicited bid.  These are whether the proposal:

• is unique;
• will have a significant and beneficial impact on the economy, community or environment;
• delivers value for money to the State;
• is feasible; and
• aligns with relevant Government policy.

There are an additional two criteria which will be addressed by the Government in its assessment of the proposal.  These are:

• whether the State-owned land is required for core Government business; and
• whether there are no competing proposals or interests.

Pre-submission requirements

Prior to submitting a proposal the proponent must meet with the Department of Lands to discuss whether the proposal can be considered under the Guideline and, if it can, the Guideline requirements and assessment criteria.

How can Lavan Legal assist you?

Lavan Legal’s Planning and Environment and Property and Leasing teams can assist you to:

• assess whether your proposal can be considered under the Guideline;
• liase with the Department of Lands to arrange a pre-submission meeting;
• prepare your proposal for submission to the Department of Lands ensuring it addresses the assessment criteria;
• assisting you with the negotiation process; and
• reviewing any contracts of sale or leasing documentation in relation to the proposal.