Supplier Code of Conduct: Supplier FAQs

The Victorian Government (the State) is committed to ethical, sustainable and socially responsible procurement. We view our Suppliers as partners, and we expect the same high standards of our Suppliers.

The Supplier Code of Conduct (Code) describes the minimum expectations in the areas of:

• integrity, ethics and conduct
• conflict of interest, gifts, benefits and hospitality
• corporate governance
• labour and human rights
• health and safety
• environmental management

The Supplier Code of Conduct was revised (revised Code) to set mandatory minimum ethical standards that Suppliers must meet.

Updated contract clauses for the revised Code will be included in government contracts to reinforce the importance of complying with the revised Code.

The contract will also provide appropriate contractual mechanism to address non-compliance.

The revised Code is streamlined and simplified, making it easier for buyers and Suppliers to understand and apply it.

New Supplier guidance will also be available to help you meet the standards set by the revised Code.

The Code commitment letter will also be removed from use in procurement to reduce administrative burden. Your commitment to the revised Code occurs when you bid for work with Government and enter a new contract with the State.

The existing Code will continue to apply until the revised Code comes into effect from 1 April 2025.

From 1 April 2025, the revised Code will replace the existing Code and apply to all contracts, agreements and purchase orders for supply of:

• goods
• services
• construction works
• construction services

Please refer to the invitation to supply documents (and related contracts) relevant to the procurement opportunity.

Suppliers must review the revised Code and ensure that their ‘personnel’, business operations and supply chains meet the minimum standards set out in the Code.

A Supplier’s personnel includes any directors, officers, employees, secondees, agents, third party contractors, consultants and subcontractors of the supplier.

You should make sure the requirements of the revised Code are understood and applied by your relevant personnel delivering the goods, services or works.

No disruptions are expected to the way you procure and contract with the State.

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:

If you are unsure what your obligations are, please refer to the terms and conditions of your contract or contact your relevant agency’s contract manager.

The revised Code sets mandatory minimum ethical standards that Suppliers must meet. The State also encourages Suppliers to go beyond the standards set out in the revised Code.

If you currently supply to the Commonwealth Government or other jurisdictions in Australia you are likely already meeting similar mandatory minimum standards.

Complying with the revised Code will strengthen the integrity of your business and place it in a better position to bid and win future government contracts.

We may check at any time whether your business is meeting these standards including requesting information on what policies, procedures and systems you have in place.

There is no change, you must continue to report non-compliance of the revised Code, as per existing processes.

Refer to the revised Code and the specific terms and conditions used in your contract.

The revised Code is based on internationally recognised standards and frameworks which are commonly understood and accepted.

The revised Code does not supersede, alter or diminish your other obligations required by law, regulations, policy or contract.

However, if you identify a conflict between the revised Code and you are unsure about how to respond, contact the contracting agency for guidance.

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.

Agency buyers may have additional ethical requirements of Suppliers when conducting their procurement.

These requirements will be included by the procurement agency in its invitation to supply documents.

Contact the relevant agency for more information.

You could consider the following steps help transition to the revised Code by 1 April 2025:

1. Review the revised Code, Supplier guidance, model contract clauses and FAQs.
2. Understand what your obligations will be under existing contracts with the State as of 1 April 2025 and prepare your business as required.
3. Discuss with your agency contract manager if required.