Legislation, policy and public construction


The Project Development and Construction Management Act 1994 facilitates government development projects in Victoria and provides for the responsible Minister to set standards and issue written directions in relation to public construction.

Find out about the Project Development and Construction Management Act 1994 external site icon

Other Victorian Government legislation applying to public construction includes:

  • Building Act 1993
  • Building and Construction Industry Security of Payment Act 2002
  • Architects Act 1991
  • Occupational Health and Safety Act 2004
  • Domestic Building Contracts Act 1995
  • Planning and Environment Act 1987
  • Heritage Act 1995
  • Financial Management Act 1994

More details on Victorian legislation and parliamentary documents are available from the Victorian Legislation and Parliamentary Documents website external site icon

Other codes, policies and agreements which apply to public construction in Victoria include:

Australia-United States Free Trade Agreement

Although Australia is now party to a number of Free Trade Agreements that create obligations for government procurement, the Australia United States Free Trade Agreement (AUSFTA) is a good reference point for understanding those obligations.

The AUSFTA sets out rules, procedures and transparency requirements for government purchasing, with the aim of providing United States businesses non-discriminatory access to Australia's Commonwealth, state and territory government procurement markets.

Similarly, Australian businesses are provided wide-ranging access to USA markets.

The AUSFTA applies whenever the cost of Victorian public construction procurement is estimated to equal or exceed specified financial thresholds. Under the agreement the financial thresholds are adjusted every two years.

The current financial thresholds for public construction, effective from 1 January 2016 are:

  • AUD$8,652,000 for building and construction works; or
  • AUD$614,000 for construction related consultancy services.

The Guide to Australia-United States Free Trade Agreement - see related publications - contains more information for Victorian government departments.

The guide should be read in conjunction with Ministerial Direction No. 1 - Tendering Provisions for Public Construction and its associated guide - see related publications.