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Selecting a procurement model

Understand the different types of procurement models available for a TAFE project and develop a procurement strategy.

Developing a procurement strategy

A procurement strategy should be established during the project definition, funding and approvals phase. It will identify the project’s preferred procurement model and may also consider:

The procurement strategy will likely be subject to approvals within the project’s governance structure.

Types of procurement models

Public construction projects can be delivered through a variety of procurement models including:

  • construct-only (lump sum or fixed-price contract)
  • design and construct
  • public-private partnerships (PPP)
  • managing contractor
  • construction management.

Common procurement models used by TAFEs include:

  • construct-only (lump sum or fixed-price contract)
  • design and construct
  • design, novate and construct
  • construction management.

For business-as-usual projects, construct-only (lump sum) is commonly used. However, there may be cases where you engage trades personnel on a time and materials basis.

Other forms of procurement are less common within the TAFE sector but may be applicable depending on the project. Further guidance on these models and when to use them can be found in the National Guidelines for Infrastructure Project Delivery.

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