Overview
Review frequently asked questions (FAQs) to learn more about the changes introduced by the revised Code and how existing and/or new contracts are impacted:
Supplier Code of Conduct: Agency FAQs
The Supplier Code of Conduct was revised (revised Code) to set mandatory minimum ethical standards that Suppliers must meet.
Appropriate contractual remedies will be included in new contracts to address non-compliance with the revised Code, such as:
- remediation
- suspension
- termination of contract
The revised Code is streamlined and simplified, helping to make it easier for buyers and Suppliers to understand and apply it.
Agency guidance will be available to help you apply the revised Code to your procurements and contract management practices.
The Code commitment letter will also be removed to reduce administrative burden. Suppliers will instead commit to the revised Code when they enter their new contract with the State.
There are no changes to the scope or application of the revised Code.
From 1 April 2025, the revised Code will apply to:
- departments and agencies subject to the Standing Directions 2018 under the Financial Management Act 1994
- all contracts, agreements and purchase orders for the supply of goods, services, construction works, and construction services
All Suppliers seeking to be considered for procurement contracts with departments and agencies must meet the ethical standards and comply with this Code.
The current Code will continue to apply during the transition period, with the revised Code coming into effect from 1 April 2025.
From this date, the revised Code will apply to existing and new contracts, but how Suppliers comply with it will be guided by the contract terms and conditions used in their contract. Refer to your contract terms and conditions to understand the Supplier’s contractual obligations in relation to the revised Code.
The impact on existing and new contracts during and after the transition period is summarised in the table below:
Nature of contractual obligation for the Code
Transition period – existing (aspirational) Code applies
1 April 2025 – revised Code takes effect
Existing contracts that require a Supplier ‘to aspire to commit’ to the Code, as amended from time to time
No change - Suppliers aspire to commit to the existing Code
Compliance with the revised Code remains aspirational until the existing contract expires or the relevant clause is amended
Existing contracts that require mandatory compliance with the Code, as amended from time to time
No change - Suppliers must comply with the existing Code
Compliance with the revised Code is mandatory
New contracts that include the new standard model clauses
Suppliers must comply with the existing Code
Compliance with the revised Code is mandatory
Departments and agencies may wish to obtain legal advice for their own arrangements to assist with transitioning them to the revised Code.
Model contract clauses were developed specifically to help enforce the revised Code and introduce appropriate consequences for breaches.
Model contract clauses also remove barriers to information flow, making it easier to share information of Supplier non-compliance between departments and agencies during diligence activities. Refer to the agency guidance for more information.
For goods and services, departments and agencies may use the clauses as is or adapt them to suit their specific needs.
Departments and agencies are encouraged to adopt the clauses earlier than by 1 April 2025 to future-proof new contracts. Consult with your internal procurement area on how your department or agency will apply the model contract clauses.
Departments and agencies should consider updating existing contracts to include the model contract clauses, as appropriate, with consideration to the size, complexity, risk and duration of the contract. Agencies may further tailor the clauses to reflect their unique requirements and risk profile.
When updating your contract templates, consider how the surrounding clauses of your existing contract may interact with the model contract clauses and update these accordingly.
Refer to the Supplier Code of Conduct page on the Buying for Victoria webpage for the model contract clause. The suite of VGPB contract templates is currently being updated to embed the clauses.
For construction, the standard form contract template includes the Code in the Schedule of Government Policy Requirements.
If you have a procurement activity underway, you may wish to include a note about the revised Code commencing on 1 April 2025 and insert the Buying for Victoria website’s link to the revised Code for information purposes.
It is recommended that you commence using the model contract clauses in new contracts included in new invitation to supply (ITS) and tender documentation.
Individual departments or agencies may have their own preferences about how to introduce these changes into their procurement and contract framework.
Refer to the agency guidance for more information.
The Supplier Code of Conduct commitment letter is not required if using the new model contract clauses.
Departments and agencies not using the new model contract clauses should continue to use the Supplier Code of Conduct commitment letter until 1 April 2025.
Supplier compliance with the Code is guided by the contract terms and conditions used in the state purchase contracts (SPCs) (see previous table).
Buyers should continue to monitor their supplier’s ethical performance and promptly report any issue to the category manager.
The category manager will continue to be responsible for implementing the Supplier Code of Conduct during the term of the SPC, including monitoring ethical behaviour of Suppliers as part of their contract management responsibilities.
Agency buyers should continue using the SPC as per its terms of use. Agency buyers may insert further requirements in addition to the Code’s minimum standards in their individual procurement documents or purchase orders to manage the agency’s procurement risk.
All government Suppliers must meet the requirements of the revised Code.
A benefit of the revised Code is that Suppliers will have more flexibility on how to demonstrate their compliance with the minimum mandatory standards.
Factors such as business size, scale, complexity and the industry a Supplier operates in are all relevant when demonstrating compliance.
For example, what may be appropriate for a small Supplier may not be appropriate for a large Supplier. Refer to the Supplier guidance for more information.
Suppliers will be notified of the changes through various digital platforms including the Buying for Victoria website and tenders portal and the Digital marketplace.
If you wish, you may direct Suppliers to the Supplier Code of Conduct transition (opens in a new window)page(opens in a new window) for more information on the revised Code, Supplier guidance, FAQs and model contract clauses.
You may also wish to communicate with Suppliers directly using a templated response. Please contact the policy team at DGS if you would like to use this template (support@buyingfor.vic.gov.au(opens in a new window)).
- Review the revised Code, supplier guidelines, model contract clauses and FAQs
- Consult with your internal procurement area on how your agency will apply the model contract clauses
- If you are going to market with a procurement during the transition phase:
- consider using the model contract clause in the invitation to supply ITS. If so, include a copy of the revised Code in the invitation to supply to help inform Suppliers of the changes to the Code during the procurement process
- otherwise apply the Code as you normally would
- If you manage existing Supplier contracts:
- check the terms and conditions of your contracts relating to the Supplier Code of Conduct
- check if they will expire after 1 April 2025 when the revised Code takes effect
- determine the impact on the contract after 1 April 2025
- Consider transitioning to the model contract clauses for new contracts before 1 April 2025
- Update and engage with your Suppliers throughout the transition period or as required
Help and support
Buyers
Buyers are encouraged to first contact their department or agency Chief Procurement Officer or equivalent procurement manager for more information.
For more general information about the Supplier Code of Conduct, please contact the goods and services policy team.
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