Ministerial Directions 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 Project Development and Construction Management Act 1994 (Vic) provides for the responsible Minister to set standards and issue written directions in relation to public construction.
The responsible Minister has issued these Ministerial Directions for Public Construction in Victoria (effective 1 July 2018).
These Ministerial Directions are supported by:
- mandatory Instructions for Public Construction in Victoria (effective 1 July 2018),
- non-mandatory Guidance for Public Construction in Victoria (effective 1 July 2018).
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 Ministerial Directions cover
The Ministerial Directions for public construction procurement prescribe principles and procedures that Victorian government departments and public bodies must follow when they procure public construction works and services.
The Ministerial Directions are presented on the following pages. Instructions supporting a Directions are presented with that Direction.
| 1 Purpose and application | |
| 1.1 Purpose of the Directions | Defines the purpose of the Ministerial Directions. |
| 1.2 Guiding Principles | Defines the procurement principles that guide public construction procurement. |
| 1.3 Application of these Directions and the Instructions | Defines what public construction is and which Agencies must follow the Ministerial Directions. |
| 1.4 Exemptions |
Explains the process an Agency must follow to apply for an exemption from the Directions or Instructions. Instruction 1.4 expands on the requirements listed in Direction 1.4. |
| 2 International Agreements | |
| 2.1 Complying with International Agreements |
Explains the rules to apply when a procurement needs to comply with International Agreements. Instruction 2.1 explains the rules to apply when a procurement needs to comply with International Agreements. Instruction 2.2 explains the rules to apply when a procurement needs to comply with the Australia New Zealand Government Procurement Agreement. |
| 3 Tendering requirements | |
| 3.1 Tender preparation and planning |
Explains planning and preparation requirements that will guide the procurement process. Instruction 3.1 expands on the requirements listed in Direction 3.1. |
| 3.2 Competition and contestability |
Explains the tendering procedures that must be used, based on the estimated value of the works or services. Instruction 3.2 expands on the requirements listed in Direction 3.2. |
| 3.3 Promoting efficiency in the tender process |
Explains strategies to increase efficiency in the tender process and how to apply them. Instruction 3.3 expands on the requirements listed in Direction 3.3. |
| 3.4 Tender Notices |
Explains the requirement to provide potential tender participants with appropriate notice of the tender process and how that should be done. Instruction 3.4 expands on the requirements listed in Direction 3.4. |
| 3.5 Tender open times | Explains how to determine the period of time when a tender should be open to the market. |
| 3.6 Tender Documentation |
Explains what must be included in the tender documentation issued to the market. Instruction 3.6 expands on the requirements listed in Direction 3.6. |
| 3.7 Evaluation criteria |
Explains the requirement to prepare a tender evaluation plan and how to determine the tender evaluation criteria. Instruction 3.7 expands on the requirements listed in Direction 3.7. |
| 4 Managing probity requirements | |
| 4.1 Probity requirements |
Explains the probity requirements that Agencies must follow. Instruction 4.1 expands on the requirements listed in Direction 4.1. |
| 4.2 Managing probity in Public Construction Procurement |
Explains the requirement for systems to manage probity in procurement and the circumstances when a probity plan is required. Instruction 4.2 expands on the requirements listed in Direction 4.2. |
| 5 Transparency in Public Construction Procurement | |
| 5.1 Forward notices |
Explains the requirement to provide potential tender participants with advance notice of a tender and how that should be done. Instruction 5.1 expands on the requirements listed in Direction 5.1. |
| 5.2 Publishing details of procurement undertaken |
Explains the requirement to disclose the outcome of tender processes and how that should be done. Instruction 5.2 expands on the requirements listed in Direction 5.2. |
| 6 Registers and Supplier Panels | |
| 6.1 Use of Registers and Supplier Panels |
Explains how to establish a register of prequalified suppliers and supplier panels. Instruction 6.1 expands on the requirements listed in Direction 6.1. |
| 7 Contracting | |
| 7.1 Contracting requirements |
Explains the requirement to use standard form construction contracts and the circumstances when an Agency may be allowed to use a non-standard form contract. Instruction 7.1 expands on the requirements listed in Direction 7.1. |
| 7.2 Contractual terms and conditions |
Explains the principles to be followed when developing contract conditions. Instruction 7.2 expands on the requirements listed in Direction 7.2. |
| 8 Improving performance and continuous improvement | |
| 8.1 Debrief for tender participants |
Explains the requirement for an Agency to offer a debrief to tender participants. Instruction 8.1 expands on the requirements listed in Direction 8.1. |
| 8.2 Supplier performance and shared reporting regime |
Explains the requirement for Agencies to monitor supplier performance and to receive supplier feedback on the Agency's performance and describes the shared reporting process. Instruction 8.2 expands on the requirements listed in Direction 8.2. |
| 8.3 Complaints |
Explains the requirement for Agencies to establish appropriate processes to respond to complaints raised by tender participants. Instruction 8.3 expands on the requirements listed in Direction 8.3. |
| 8.4 Public Construction Procurement Committee | Establishes a committee to provide advice to the Minister and the Secretary in relation to these Directions and the Instructions. |
| 9 Standards | |
| 9.1 Standards for public construction |
Establishes that the Secretary may set Standards relating to public construction. Instruction 9.1 lists the standards that are in force. |
| 10 Accountability | |
| 10.1 Responsibilities of the Accountable Officer | Lists the responsibilities for public construction held by an Agency's Accountable Officer. |
| 10.2 Delegation | Explains how an Agency's Accountable Officer may delegate powers and responsibilities under these Directions. |
| 11 Authorising provisions | Explains the authority to issue the Directions, Instructions, Guidance and Standards, describes when the Directions start operation, and explains the order of precedence between the Directions and other policies |
| Matters nominated by the Secretary | Lists the matters that the Directions and the Instructions establish may be nominated by the Secretary. |
| Definitions | Defines key terms in the Directions and the Instructions. |
Within the Instructions, the Secretary may authorise in writing any person to:
- perform any duties held by the Secretary under these Instructions; or
- grant any approvals available to the Secretary under these Instructions.
| Revision | Date | Reference | Details | Endorsed by |
|---|---|---|---|---|
| 1/7/2018 | First release | |||
| 1 | 30/12/2018 | Instructions |
New paragraph inserted to clarify how the Secretary may delegate authority under these Instructions. |
DTF |
Tools and support
The Ministerial Directions and Instructions are supported by non-mandatory Guidance for Public Construction Procurement in Victoria.
The Practitioners Toolkit includes key documents, guidance and information relating to the Ministerial Directions and Instructions.
Download the Ministerial Directions and the Instructions for public construction procurement:
For further information about the Ministerial Directions and Instructions for public construction procurement, please contact the Construction Policy Team.