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Construction procurement law

A summary of the law and policies that govern public construction procurement in Victoria.

The Project Development and Construction Management Act 1994 facilitates government development projects in Victoria and provides for the responsible Minister to set standards and issue written directions in relation to public construction.

Victoria’s broader public governance, financial management and accountability framework

The Ministerial Directions for Public Construction Procurement in Victoria are part of Victoria's broader public governance, financial management and accountability framework. They are intended to complement the broader framework, and should be read in conjunction with the requirements of this broader framework. The Ministerial Directions for Public Construction Procurement in Victoria set out the requirements applicable to public construction procurement in Victoria, that is, procuring works and construction services.

Some Agencies that must comply with these Directions must also comply with the Victorian Government Purchasing Board supply policies, which apply to non-public construction procurement. It is for the Accountable Officer of the relevant Agency to decide whether and how to align internal governance frameworks for procurement, noting that where these Ministerial Directions for Public Construction Procurement in Victoria are inconsistent with the requirements of a supply policy issued by the Victorian Government Purchasing Board, the requirements of these Ministerial Directions prevail in relation to public construction procurement.

Key elements of Victoria's broader public financial management and governance framework:

Legislation:

Ministerial Directions and equivalent issued under legislation:

Victorian Public Sector Codes of Conduct issued by the Victorian Public Sector Commission under the Public Administration Act 2004.

The Standing Directions of the Minister for Finance issued under the Financial Management Act 1994 along with the associated Instructions and Guidance issued by the Department of Treasury and Finance.

Ministerial Directions issued under the Project Development and Construction Management Act 1994 and the associated Instructions and Guidance issued by the Department of Treasury and Finance.

The supply policies issued by the Victorian Government Purchasing Board under Part 7A of the Financial Management Act 1994.

Frameworks:

Asset Management Accountability Framework

Victoria's Social Procurement Framework

Victoria's Value Creation and Capture Framework

High Value High Risk Project Assurance Framework

Policies:

Policies applicable to procurement delivery methods:

Partnerships Victoria Policy

National Alliancing Policy

Market-Led Proposals Guideline

Victoria Supplier Code of Conduct 2016

Guidance:

Investment Lifecycle and High Value High Risk Guidelines

Public construction

The Project Development and Construction Management Act 1994 defines public construction is any 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,
  • contract administration.

Defining public construction (Guidance 3b) helps practitioners determine when a procurement is ‘public construction’.

Legislation and policies applying to public construction

The Project Development and Construction Management Act 1994 facilitates government development projects in Victoria. It provides for the responsible Minister to set standards and issue written directions in relation to public construction.

Other Victorian Government legislation relevant to public construction projects include:

  • Building Act 1993
  • Building and Construction Industry Security of Payment Act 2002
  • Architects Act 1991
  • Occupational Health and Safety Act 2004
  • Domestic Building Contracts Act 1995
  • Planning and Environment Act 1987
  • Heritage Act 1995

More details on Victorian legislation and parliamentary documents are available from the Victorian Legislation and Parliamentary Documents website.

Policies applying to public construction are listed in Contractual terms and conditions (Instruction 7.2).

Contact

For more information about legislation, policy and public construction contact the Construction Policy team.


Reviewed 30 October 2018