If you are in the Australian plumbing services industry and are considering a shift to larger project work, you’re not alone. In 2025 alone, the plumbing market declined by 6.4%, due in part to high interest rates, which slowed residential construction by around 12.6%. As this work, which once filled the books, is no longer as frequent or attractive as the more resilient non-residential markets where growth sits around 2.6%, a pivot is required for some contractors.
Commercial and government projects, however, have prequalification frameworks, and contractors competing for market share must pass prequalification audits to access things like major infrastructure projects.
Which types of projects require prequalification?
Tier 1 builders that manage projects valued anywhere from $500 million to several billion dollars, like Lendlease, Multiplex, John Holland, and CIMIC Group, require comprehensive prequalification. This can include ISO-certified systems for quality, safety, and environmental management. The prequalification can involve:
- Financial audits
- Proof of complex project experience
- Demonstrated capacity for large-scale procurement and logistics
Tier 2 builders with projects between $50 million and $500 million often require proven size-appropriate experience, Work Health and Safety systems, and digital project management capabilities. Tier 3 builders, working on projects up to $50 million, often require practical site-specific safety and delivery requirements, and basic WHS plans.
As a simple rule of thumb, the larger the project, the more extensive the prequalification.
What are the common financial and insurance requirements in prequalification?
In commercial construction, financial survival is a big deal, and head contractors will use prequalification to ensure plumbers can be relied on to see the entire project through.
As an example, Victoria’s Construction Supplier Register or Western Australia’s Builders Prequalification Scheme require plumbing contractors to meet minimum financial requirements. One metric they use for this is Positive Tangible Net Worth, which measures physical assets against liabilities. Another important calculation is the maximum contract value, which ensures plumbers can’t accept projects so big that a delayed payment could bankrupt their business.
Insurance requirements are another area that differs significantly from the residential minimums you may be used to. A residential plumber might carry around $5 million in public liability, but commercial contractors on Tier 1 or Tier 2 sites will need at least $20 million. Professional indemnity coverage of $5 million is also a must if design or performance-based solutions are part of your deliverables.
Important consideration for Victorian plumbers
The Building and Plumbing Commission has replaced the Victorian Building Authority. This new agency will be more like a one-stop shop, integrating registration, licensing, enforcement, domestic building dispute resolution, and insurance management, with broader enforcement powers. As an example, the Building and Plumbing Commission will have the ability to issue rectification orders up to 10 years after project completion.
What are some important prequalification considerations for plumbers?
Just as we recommend that contractors applying for plumbing tenders understand the potential requirements of a bid, there are important categories to consider in prequalification as well.
Safety is at the top of this list. In 2024, 188 Australians died in workplaces, and construction sits among the top six most dangerous sectors. Chain of Responsibility reviews in prequalification systems are basically non-negotiable. If you operate a fleet or use heavy transportation, you will be required to provide fatigue management, load restraint, and speed compliance policies. Some prequalification checklists may also include psychosocial risk management, requesting evidence of Employee Assistance Programs, mental health policies, and staff training to help identify workplace stress or aggression.
Prequalification also focuses on technical competence. An example of the types of things that this may cover is the ban on trace lead elements in plumbing products in Victoria stipulated by the National Construction Code (effective 1 May 2026). Commercial prequalifications may require verification of lead-free materials or the ability to demonstrate capability with siphonic stormwater systems, trenchless pipework, or advanced floor waste depths.
Important note: Building Information Modelling is pretty much standard for most major infrastructure projects, and prequalification will assess your capability levels with this kind of software.
What are the most used prequalification platforms?
As compliance data can be quite significant in size, there are a few commonly used third-party platforms in the commercial construction industry. Some of the most popular include:
- Cm3
Often used by qualified health and safety professionals to assess business risk profiles, this software conducts a general risk review for site-specific risk assessments, WHS procedures, induction records, and electrical test-and-tag registers. Other, more specialised plumbing work, like asbestos handling, confined space entry, hazardous chemical management, and environmental impact assessment, can also be covered by this software.
- Avetta
This global risk management platform is a popular one with Tier 1 and facilities management firms. It features an easy-to-use service evaluation process that allows contractors to reduce their administrative tasks by selecting relevant services. With over 100 tailored prequalification forms, Avetta contains a full library of required Australian Standards.
- E1 (Estimate One)
While not a specific prequalification platform, E1 makes the process of finding and bidding on plumbing tenders much simpler. With a huge range of commercial construction projects, plumbers can assess prequalification requirements based on the size of the job and the Builder, send a quote, and track progress all through one system.
Growing in the construction industry with E1
E1 exists to help plumbing subcontractors find and win more larger, commercial projects that will allow you to put your prequalification application skills in play. We help you discover new tenders, growing your network to attract invites from builders that apply to the exact services you offer.
View our range of plumbing opportunities and see how easy it is to quote via our system. Be it a standalone commercial project or repeat work, E1 helps you build a sustainable pipeline.
Alexander
Green
General Manager - Subcontractors
