Definitions for public construction procurement

Definitions of key terms used in the Ministerial Directions and the Instructions for public construction procurement.

Accountable Officer has the meaning given to it in the Financial Management Act Standing Directions 2016.

Agency means a department or public body, in each case as defined in the Project Development and Construction Management Act 1994 (Vic).

Construction Services means services directly related to the delivery of Works, including architectural and design services. It does not include services indirectly related to the delivery of Works, including legal advisory services, commercial advisory services.

Contractor means a person bound to perform Works or Construction Services under an agreement that results from a Public Construction Procurement that is subject to these Directions.

Department means the department supporting the Minister responsible for Part 4 of the Project Development and Construction Management Act 1994 (Vic).

Directions means these directions for public construction issued by the Minister responsible for Part 4 of the Project Development and Construction Management Act 1994 (Vic), and 'Direction' means each direction herein.

Excluded Entity means an entity for which these Directions are not mandatory, as set out in Application of these Directions and the Instructions (Direction 1.3).

Financial Reporting Direction 12B means Financial Reporting Direction 12B (Disclosure of major contracts) issued under the Financial Management Act 1994 (Vic) (June 2016).

Financial Management Act Standing Directions 2016 means the Standing Directions of the Minister for Finance 2016 issued under the Financial Management Act 1994 (Vic) and the associated Instructions and Guidance.

International Agreement means any international agreement entered into by the State or the Commonwealth that applies to procurement undertaken by an Agency.

Guidance means the guidance issued by the Secretary pursuant to these Directions.

Instructions means the instructions as issued or amended by the Secretary from time to time, and 'Instruction' means each instruction therein.

Limited Tender means the engagement of a supplier to perform Works or Construction Services in accordance with Competition and contestability (Direction 3.2(c)) conducted:

without competition – that is by inviting a single tender participant (whether or not from a Register); or
with limited competition – that is by inviting two or more tender participants (whether or not from a Register).

Minister means the Minister responsible for Part 4 of the Project Development and Construction Management Act 1994 (Vic).

Non-Standard Commercial Arrangement means a term or condition in a contract or deed, including the contents of binding schedules or annexures, that:

in any way contravenes these Directions or the Instructions; or
in all of the circumstances is highly unusual for a procurement of that type and Procurement Model as procured by a prudent Agency;

and that is so material as to have potential to impact that market segment generally or contracting practices by the State of Victoria as a whole.

Portfolio Agency has the meaning given to it in the Financial Management Act Standing Directions 2016.

Portfolio Department has the meaning given to it in the Financial Management Act Standing Directions 2016.

Principal means a person (being an Agency on behalf of the Crown in right of the State of Victoria, an Agency in its own right, as applicable, or a validly appointed agent of an Agency) entitled to the benefit of an agreement for Works or Construction Services that results from a Public Construction Procurement that is subject to these Directions.

Procurement Model means the procurement model used to deliver the Works or Construction Services, including, for example, consultancy, construction-management, design and construct, construct-only, public private partnership, alliancing, managing contractor and early contractor involvement.

Public Construction Procurement means activities related to the engaging of suppliers to perform Works or Construction Services, including:

tender processes to engage a supplier to perform Works or Construction Services;
the terms of engagement and contracts used to engage suppliers to perform Works or Construction Services; and
management of engagements for suppliers to perform Works or Construction Services and reporting on performance of suppliers engaged to deliver Works or Construction Services.

Public Sector Values has the meaning given to it in section 7 of the Public Administration Act 2004 (Vic).

Register means a register of pre-qualified suppliers established in accordance with these Directions (Registers and Supplier panels (Direction 6.1).

Responsible Minister means:

in relation to a Department (other than an Independent Office), the Minister or Ministers for the time being responsible for any part of that Department;
in relation to all other Agencies, the Minister or Ministers for the time being administering the legislation or instrument under which the Agency is established or as otherwise declared by way of that establishing legislation or instrument.

Secretary means the Secretary of the Department, anyone who occupies that office temporarily, or any officer of the Department who becomes responsible for the functions of that office from time to time.

Selective Tender means a competitive tender open only to suppliers on a Register.

Special Circumstances means the special circumstances set out in Special Circumstances (Instruction 3.2.2) when a Limited Tender may be used.

Standard means a Standard set pursuant section 29 of the Project Development and Construction Management Act 1994 (Vic).

Supplier Panel means a standing offer arrangement for a group of suppliers engaged under contract to provide services in a defined future period.

Tender Documentation means the documentation released to the market as part of a tender process, for example the request for tender and supporting documents. If a multi-stage tender process is adopted, then Tender Documentation refers to the documentation released at each stage, for example the request for expression of interest.

Tender Notice means the notice announcing the beginning of a formal tender process, which occurs:

in a single stage tender process: a request for proposal, request for tender, notice of invitation to supply, or notice of approach to market; and
in a two stage tender process: the request for information or request for expression of interest.

Victorian Government Purchasing Board means the Victorian Government Purchasing Board established by section 54A of the Financial Management Act 1994 (Vic).

Victorian Government Purchasing Board in-scope entities means Agencies that must apply the supply policies issued by the Victorian Government Purchasing Board.

Victorian Government Purchasing Board supply policies means the supply policies issued by the Victorian Government Purchasing Board pursuant to Part 7A of the Financial Management Act 1994 (Vic).

Victorian Public Construction Contract means a contract approved under Contracting requirement (Direction 7.1).

Victorian Public Sector codes of conduct means the following codes of conduct issued from time to time by the Victorian Public Sector Commission under the Public Administration Act 2004, being as at the date of this Direction:

Works means works for construction, maintenance, rehabilitation, alteration, extension or demolition of any improvements on land.

Tools resources and assistance

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

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