Procurement

The procurement of assets and infrastructure by the Victorian government is administered by three layers of legislation and policy, supported by resources and tools. Understand the requirements and processes that departments and public bodies (agencies) must follow when procuring assets and infrastructure.

Asset investments include buildings, civil infrastructure, and information and communications infrastructure.

Victoria's infrastructure procurement framework

This framework sets a consistent baseline for all asset and infrastructure procurements. The requirements are adjusted depending on the procurement approach and each project’s complexity, size and risk.

Investment Lifecycle: Victorian infrastructure procurement framework

Project Lifecycle: Whole of government infrastructure procurement framework

Ministerial Directions and Instructions for Public Construction Procurement in Victoria

Status: The Directions and Instructions are mandatory requirements. Guidance is non-mandatory.

The Ministerial Directions and Instructions for Public Construction Procurement in Victoria, administered by the Minister for Finance, set the mandatory minimum rules that all Victorian government departments and agencies must meet when procuring construction services and works. They apply across all government construction project activity.

Non-mandatory Guidance supports compliance with the Directions and Instructions.

Ministerial Directions for Public Construction Procurement in Victoria

Instructions for Public Construction Procurement in Victoria

Guidance for Public Construction Procurement in Victoria

For further information about public construction procurement requirements and resources please visit the page below.

Procurement – Investment Lifecycle Guideline

Status: Includes mandatory requirements and good practice guidance.

The Procurement – Investment Lifecycle and High Value High Risk Guideline (Guideline) explains the context and authority for the procurement of assets and infrastructure, including guiding principles, relevant legislation and policies.

It sets out the procurement categories and models approved for departments and agencies and outlines the policy guidance and contracts available to support each model. It identifies mandatory requirements and provides good practice guidance to support practitioners through the procurement process.

The Guideline has three parts:

  • Part 1: principles, legislative and policy context, and assurance requirements
  • Part 2: procurement strategy development, project structuring, packaging and bundling and procurement model selection
  • Part 3: procurement implementation, from tender preparation through to contract award.

Procurement categories and requirements

Status: Includes mandatory requirements and good practice guidance.

Victoria’s infrastructure procurement framework organises procurement into three categories. Each category has defined models, requirements and is supported by a standard-form deed or contract and guidance.

CategoryBest suited toModelsRequirements and standard contracts
Whole of lifeLong-term asset performance and service delivery, driving innovation, efficiency and value
  • Partnerships Victoria
  • Bundled
  • Whole of Life Procurement Requirements
  • Standard form contracts include the Partnerships Victoria Public Private Partnership contract suites.
Lump sumWell-defined scope with greater price certainty
  • Construct only
  • Design and Construct
  • Enhanced Design and Construct
  • Lump Sum Procurement Requirements
  • Standard form contracts include the Enhanced Design and Construct contract. Victorian Public Construction Contracts are also available through the Public Construction Procurement Toolkit.
Cost reimbursableUncertain scope and design, requiring a more flexible commercial arrangement
  • Incentivised Target Cost
  • Managing Contractor
  • Alliance
  • Cost Reimbursable Procurement Requirements
  • Standard form contracts include the Incentivised Target Cost contract suite.

More information about each procurement category, including its requirements, models, contracts and guidance is detailed on the pages below.

Procurement across the investment lifecycle

Procuring an asset and infrastructure investment is likely to require buying different goods, services and construction services and works at each stage of the investment lifecycle:

  • Business case: consultants and specialist expertise
  • Early stages: land, site rectification and establishment works. For large, complex projects, agencies may also deliver one or more early works packages before awarding the main contract.
  • Delivery: specialised goods, services and subcontracts
  • Service delivery and operations: further contracts, let in readiness for these phases.

Knowing what you will need to procure at each stage helps you plan ahead and apply the right requirements, models and resources from the start.

Supporting resources and tools

Departments and agencies may also need to refer to the following resources as part of the procurement phase of the investment lifecycle.

  • Victoria's goods and services procurement framework – sets the minimum mandatory rules for the procurement of goods (e.g., furniture, fixtures and equipment, information technology items) and services (e.g. consultants, advisors).
  • High Value High Risk Framework – sets assurance requirements, including more rigorous scrutiny and approval processes, for infrastructure and ICT projects.
  • Gateway review process – provides independent advice to government through reviews at six key decision points in a project’s lifecycle.
  • Developing ICT Investments - supplements the Procurement – Investment Lifecycle Guideline with further information on ICT projects in the procurement and delivery stages of the investment lifecycle.
  • Digital Asset Policy – sets digital requirements for planning, designing, and constructing Victorian Government projects and assets.
  • Construction Supplier Register - identifies construction works and services suppliers with the expertise, capacity, and capability to deliver projects for the Victorian Government, through an open pre-qualification scheme.
  • Market-led proposals - provide a pathway for the private sector to propose investments for Government to consider.
  • Bid cost reimbursement for major construction projects –sets the criteria for considering partial bid-cost reimbursement for Partnership’s Victoria and High Value High Risk projects.

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