Application of these Directions and the Instructions (Direction 1.3)

Direction 1.3 defines what public construction is and which Agencies must follow the Ministerial Directions.

Effective date:  1 July 2018

1.3.1 Application of these Directions

(a) These Directions apply to Public Construction Procurement undertaken by or on behalf of an Agency.

(b) For the purposes of these Directions, Public Construction Procurement does not include:

(i) grants (whether in the form of a contract, conditional gift or deed), sponsorship or donations;

(ii) investments (or divestments);

(iii) sales of any asset by tender;

(iv) obtaining or making any loans;

(v) procurement of goods or services for resale or procurement of goods and services used in the production of goods for resale;

(vi) any property right not acquired through the expenditure of relevant money (for example, a right to pursue a legal claim for negligence);

(vii) statutory appointments;

(viii) appointments made by a minister using the executive power (for example, the appointment of a person to an advisory board);

(ix) the engagement of employees; or

(x) acquisition of Works or Construction Services from another public body or government owned entity (including those of the Commonwealth, States, Territories, or local government), except where the public body or government owned entity is a participant in a competitive tender process.

1.3.2 Agencies that must comply with these Directions

(a) All Agencies, except for Excluded Entities, must comply with these Directions.

(b) A Portfolio Department must, in respect of any Portfolio Agency that is not an Excluded Entity:

(i) provide advice and support to the Portfolio Agency in relation to complying with these Directions; and

(ii) support the Responsible Minister in the oversight of Portfolio Agencies and the Responsible Minister's portfolio as a whole, including providing information to the Responsible Minister concerning their Portfolio Agencies' Public Construction Procurement activities.

1.3.3 Excluded Entities

(a) For the purposes of these Directions, the following Agencies are Excluded Entities:

(i) any school council constituted under Part 2.3 of the Education and Training Reform Act 2006 (Vic);

(ii) any incorporated committee of management, unless the committee is listed in the Instructions;

(iii) any class B cemetery trust constituted under section 6 of the Cemeteries and Crematoria Act 2003 (Vic);

(iv) any 'registered unit' as defined in the Victoria State Emergency Service Act 2005 (Vic); and

(v) any 'volunteer brigade' as defined in the Country Fire Authority Act 1958 (Vic).

(b) Excluded Entities must undertake Public Construction Procurement in accordance with the requirements established pursuant to Direction 1.3.4.

1.3.4 Portfolio Department responsibilities for Excluded Entities

(a) The following Agencies must establish appropriate requirements for Public Construction Procurement undertaken by Excluded Entities:

(i) in respect of the Excluded Entities in Direction 1.3.3(a)(i) to 1.3.3(a)(iii), the Portfolio Department of the Excluded Entity; and

(ii) in respect of the Excluded Entities in Direction 1.3.3(a)(iv) and 1.3.3(a)(v), the Victoria State Emergency Service and Country Fire Authority respectively.

(b) These requirements must:

(i) be consistent with the principles set out in Guiding principles (Direction 1.2);

(ii) take account of the requirements of these Directions, including the Instructions;

(iii) be consistent with the Excluded Entity's governing legislation; and

(iv) include appropriate accountability arrangements and monitoring of the Excluded Entity's Public Construction Procurement activities by the Agency responsible for issuing the requirements to ensure the Excluded Entity's compliance with the requirements.

Tools resources and assistance

Application of these Directions and Instructions (Direction 1.3) is supported by non-mandatory guidance:

Application of the Directions and Instructions (Guidance 1.3a)

Defining public construction (Guidance 1.3b)

The Practitioners Toolkit includes key documents, guidance and information relating to the Ministerial Directions and Instructions.

For further information about the Ministerial Directions and Instruction for public construction procurement, please contact the Construction Policy Team.

Reviewed 02/07/2018
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