Ministerial Directions for public construction procurement

If the project value is under $50,000, you may conduct a limited tender. In this case, a limited tender refers to an engagement with a sole supplier to undertake a procurement process without competition, which may or may not be sourced from a register or supplier panel (Instruction 6.1).

However, the TAFE’s internal policy requirements may deem this limit to be lower than $50,000.

Publication of a forward notice on the ‘Buying for Victoria’ tender portal is encouraged, but not required for limited tenders where appropriate, given the grounds for conducting a limited tender.

If the value of the works is between $50,000 and $500,000, or the value of construction services is between $50,000 and $200,000, you may conduct a limited tender. In this case, a limited tender refers to an engagement with two or more suppliers to undertake a procurement process with limited competition, which may or may not be sourced from a register or supplier panel (Instruction 6.1).

However, the TAFE’s internal policy requirements may deem this limit to be lower than $500,000 for works and $200,000 for construction services.   

You are also required to disclose summary details of procurement undertaken for works and construction services projects valued above $100,000 (Instruction 5.2).

Publication of a forward notice on the ‘Buying for Victoria’ tender portal is encouraged, but not required for limited tenders where appropriate, given the grounds for conducting a limited tender.

If the value of the works is between $500,000 and $10,000,000, or the value of construction services is between $200,000 and $10,000,000, you must conduct an open tender or a selective tender using public construction registers and supplier panels (Instruction 6.1). When undertaking a selective tender, you must invite at least three pre-qualified suppliers in the relevant category of that register (or panel from the register) (Instruction 6.1).

Forward notices

You are required to alert potential suppliers (from the Construction Supplier Register) by issuing a forward notice in advance of commencing the procurement process for projects within the above-stated value range. A forward notice will typically include a brief description of the project, the procurement process, the project procurement model, expected timing regarding the release of the tender and the number of expected tender participants invited to submit a response.

If the upcoming project is not captured by a group forward notice, you must issue a separate forward notice at a reasonable time prior to issuing a tender notice for that project (Instruction 5.1) through DTF’s nominated system, currently the ‘Buying for Victoria’ tender portal. Although forward notices must be submitted through ‘Buying for Victoria’, other platforms can be used for issuing the tender itself.

You should publish the forward notice at a reasonable time prior to releasing a tender notice or expression of interest documentation. This time period will vary depending on the project's size and complexity. As per DTF’s non-mandatory guidance for the Ministerial Directions, the suggested time periods for issuing forward notices are:

• business-as-usual and low complexity projects: within 1 – 2 months
• medium complexity projects: within 2 – 6 months, and
• HVHR projects: within 6 – 12 months.

These time periods are recommendations only, and you may wish to confirm the appropriate time to issue a forward notice with your OTCD representative.

For all open and selective tenders which meet the above value ranges for project (works) or technical consultancy services (construction services), and limited tenders subject to special circumstances (Instruction 3.2.2), you must issue tender notices (Instruction 3.4) to inform potential tenderers that the tender process has begun.

You are also be required to:

• apply the mandatory evaluation criteria for industrial relations management for works projects only (Instruction 3.7)
• apply the mandatory evaluation criteria for occupational health and safety management (Instruction 3.7)
• disclose summary details of procurement undertaken (Instruction 5.2)
• for works valued over $9,584,000 and construction services valued over $680,000 you must also apply the international agreement provisions (Instruction 2.1), and
• report on contractor performance (Instruction 8.2).

For a project value over $10,000,000, you must conduct an open tender or selective tender using the public construction supplier register. When undertaking a selective tender, you must invite at least three suppliers in the relevant category of a register (or panel from the register) (Instruction 6.1).

Forward notices

You are required to alert potential suppliers (from the Construction Supplier Register) by issuing a forward notice in advance of commencing the procurement process for projects within the above-stated value range. A forward notice will typically include a brief description of the project, the procurement process, the project procurement model, expected timing regarding the release of the tender and the number of expected tender participants invited to submit a response.

If the upcoming project is not captured by a group forward notice, you must issue a separate forward notice at a reasonable time prior to issuing a tender notice for that project (Instruction 5.1) through DTF’s nominated system, currently the ‘Buying for Victoria’ tender portal. Although forward notices must be submitted through ‘Buying for Vic’, other platforms can be used for issuing the tender itself.

You should publish the forward notice at a reasonable time prior to releasing a tender notice or expression of interest documentation. This time period will vary depending on the project's size and complexity. As per DTF’s non-mandatory guidance for the Ministerial Directions, the suggested time periods for issuing forward notices are:

• business-as-usual and low complexity projects: within 1 – 2 months
• medium complexity projects: within 2 – 6 months, and
• HVHR projects: within 6 – 12 months.

These time periods are recommendations only, and you may wish to confirm the appropriate time to issue a forward notice with your OTCD representative.

For all open and selective tenders (and limited tenders subject to special circumstances (Instruction 3.2.2), you must issue tender notices (Instruction 3.4) to inform potential tenderers that the tender process has begun.

You are also required to:

• apply international agreement provisions (Instruction 2.1)
• apply the mandatory evaluation criteria for industrial relations management for works projects only (Instruction 3.7)
• apply the mandatory evaluation criteria for occupational health and safety management (Instruction 3.7)
• disclose summary details of procurement undertaken (Instruction 5.2)
• prepare a probity plan (Instruction 4.2), and
• report on contractor performance (applies to contracts starting after 1 July 2018) (Instruction 8.2).