Important notices relating to the Practitioners Toolkit.
The Practice Note on defining ‘public construction (DOCX 242kb)’ assists public construction procurement practitioners to determine when a procurement is ‘public construction'.
Further amendments have been made to the Guide to Ministerial Direction No 1 for public construction (MD1 Guide) with effect from 1 March 2017.
Amendments have been made to the MD1 Guide as part of the Government’s agenda to reform construction procurement. These changes expand the MD1 Guide to include best practice guidance relating to tendering of public construction.
The amendments include a combination of general principles, specific requirements and non-mandatory guidance highlighting good practice options to achieve the following policy objectives:
The Ministerial Directions for public construction are updated with effect from 1 December 2016.
Amendments affect Ministerial Direction No 1 (PDF 148kb), Ministerial Direction No 2 (PDF 140kb), and the Guide to Ministerial Direction No 2 (PDF 163kb).
In summary, the key changes made include:
Ministerial Direction No 3 sets requirements for constructing public buildings in bushfire prone areas. These requirements are now addressed by the Building Regulations following an amendment that took effect from 30 September 2016.
Ministerial Direction No. 3 is revoked with effect from 1 December 2016.
The Victorian Industry Participation Policy (VIPP) was updated with changes taking effect from 1 September 2016.
Key changes include the introduction of a mandatory minimum 10 per cent weighting for VIPP Plans/Local Industry Development Plans in tender processes.
If the Victorian Industry Participation Policy (VIPP) applies to your project, you will need to include project-specific VIPP clauses in your tender and contract documents.
Local Jobs First / VIPP has a number of practical guidance documents, including VIPP model clauses for tender documents and contracts. Practitioners should note that the documents in the Practitioners’ Toolkit have not yet been updated to reflect these new model clauses.
Please seek advice from your Agency’s legal or procurement specialists and/or contact the VIPP team at DEDJTR (or 13 22 15) to confirm that you are using appropriate terms for tender and contract documents for VIPP projects.
Supporting Guidelines for the Commonwealth Building Code 2013 took effect from June 2016.
The Supplementary Guidelines set out the obligations that Agencies must follow when undertaking projects subject to the Commonwealth Building Code. They include requirements to confirm eligibility of contractors during the tender process, mandatory terms for tender and contract documentation, and set out information that must be provided to the FWBC.
If you are managing a project with more than $5 million in Commonwealth funding, the Commonwealth Building Code may apply to your project. If it does, you will need to be aware of the requirements in the Supplementary Guidelines.
More information about the Commonwealth Building Code and funding thresholds is available at Australian Government Fair Work Building Construction, along with the Supplementary Guidelines and the model clauses for tender and contract documentation.
The Major Projects Skills Guarantee (MPSG) came into effect from 1 January 2016.
Under the MPSG all publicly funded works contracts valued at or over $20 million (inclusive of GST) will be required to use local apprentices, trainees or engineering cadets for at least 10 per cent of the total estimated labour hours.
For publicly funded works contracts valued under $20 million, adoption of the MPSG is non-mandatory, however all Victorian departments and agencies are to encourage tenderers to adopt the MPSG.
If the MPSG applies to your project, you will need to include project-specific MPSG clauses in your tender and contract documents.
Please seek advice from your Agency’s legal or procurement specialists and/or the MPSG team at DEDJTR (or 1300 208 575) to confirm that you are using appropriate terms for tender and contract documents for MPSG projects.
For more information in relation to public construction policies contact the Construction Policy Team on 03 9651 5137 or email firstname.lastname@example.org.