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Construction procurement guidance

Good practice for procurement of public construction works and services.

Guidance for public construction procurement

The Project Development and Construction Management Act 1994 (Vic) defines public construction as any matter relating to the construction, maintenance, rehabilitation, alteration, extension or demolition of any improvements on land by, or on behalf of, departments and public bodies and includes:

  • design and construction practices,
  • tendering processes,
  • project delivery, and
  • contract administration.

The Act provides for the responsible Minister to set standards and issue written directions in relation to public construction. The responsible Minister has issued the Ministerial Directions for Public Construction in Victoria (effective 1 July 2018).

These Ministerial Directions are supported by:

Agencies that must apply the Ministerial Directions

Refer to Application of the Directions and Instructions for details of the agencies that must apply the Ministerial Directions.

What the guidance for public construction procurement covers

The guidance for public construction procurement sets out good practice that Victorian government departments and public bodies should follow when they procure public construction works and services.

Document name and link Description
1.2 Guiding principles Helps agencies understand the principles underpinning the directions
1.3a Application of the Directions and Instructions Help agencies work out when the directions and Instructions apply to a procurement
1.3b Defining public construction Helps practitioners work out if a procurement is public construction
1.4 Exemptions Helps agencies apply for exemptions from the Directions
3.1 Tender preparation and planning Helps agencies to undertake tender planning
3.2.1 Competition and contestability Helps agencies achieve appropriate/efficient levels of competition
3.2.2 Limited Tenders Helps agencies understand the circumstances under which limited tenders can be used
3.3 Promoting efficiency in the tender process Helps agencies achieve efficiency in tendering and reducing the burden of the tender process
3.4 Tender Notices Helps agencies to promote awareness in the market of available government procurement opportunities
3.5 Tender open times Helps agencies determine an appropriate period for a tender to be open
3.6 Tender Documentation Helps agencies to provide clear and fair information about a specific procurement opportunity
3.7 Evaluation criteria Helps agencies establish tender evaluation criteria and undertake the evaluation process
4.1.1 Probity – apply public sector values Helps define the principles of probity and helps to create an understanding of probity expectations, aligning them with public sector values
4.1.2 Probity – treat tender participants fairly and equally Explains how the principles of probity relate to treating tender participants fairly and equally
4.1.3 Probity – maintain confidentiality of tender participants’ confidential information Explains how the principles of probity relate to maintaining the confidentiality of tender participants’ information
4.1.4 Probity – auditable, accountable and transparent tender and contract management processes Explains how the principles of probity relate to auditable, accountable and transparent tender and contract management processes
4.1.5a Probity – identify and manage conflicts of interest Explains how the principles of probity relate to managing conflicts of interest
4.1.5b Probity – commitment from tender participants Explains how the principles of probity relate to the commitment that tender participants must make regarding conflicts of interest and prevention of collusion
4.2 Managing probity in Public Construction Procurement Helps agencies to understand the need for probity systems, processes and plans and when to involve probity practitioner
5.1 Forward notices Helps agencies to promote awareness in the market of forthcoming government procurement opportunities
5.2 Publishing details of procurements undertaken Helps agencies to establish greater transparency for the market about government procurement outcomes
6.1 Use of Registers and Supplier Panels Helps agencies to establish effective and efficient relationships with the market
7.1 Contracting requirements Helps agencies to establish greater consistency in contracting arrangements
7.2.1 Compliance with legislative and policy requirements Lists policy requirements that construction contracts must comply with
7.2.2 Non-Standard Commercial Arrangements Explains what non-standard commercial arrangements are and how they are approved
8.1 Debrief for tender participants Helps agencies to establish greater transparency for the market about government procurement
8.2 Supplier performance and shared reporting regime Helps agencies understand the process to follow when assessing the performance of suppliers
8.3 Complaints Helps agencies to establish greater transparency for the market about government procurement outcomes
10.1 Responsibilities of the Accountable Officer Explains the process of attestation and outlines what would constitute a compliance deficiency and a material compliance deficiency for reporting purposes
10.2 Delegation Helps agencies to understand the requirements for exercising a delegation under the Directions and Instructions

Tools and support

This non-mandatory guidance supports the mandatory Ministerial Directions and mandatory Instructions for Public Construction Procurement in Victoria .

The Construction Toolkit includes key documents, guidance and information relating to the Ministerial Directions and Instructions.

Download the full set of guidance for public construction procurement in Word format:

For further information about the Ministerial Directions and Instructions for public construction procurement, please contact the Construction Policy Team .

Reviewed 18 January 2019

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