Forward notice (Direction 5.1)
Effective date: 1 July 2018
Transparency in public procurement is an element of the probity procurement principle.
Of particular relevance to this Direction are the following construction procurement principles:
- conducting Public Construction Procurement in an open and transparent manner ensuring defensibility of processes;
- ensuring appropriate competition and contestability when undertaking Public Construction Procurement;
- encouraging appropriate innovation and responsiveness in the supplier market;
- undertaking Public Construction Procurement in accordance with the relevant legislation, policy, guidance and any mandatory requirements in these Directions.
5.1 Forward notices
Agencies must publish forward notice of all upcoming tender processes for Works or Construction Services in accordance with the Instructions to promote competition and allow potential tender participants to plan for and allocate resources to participating in tender processes.
Forward notices (Instruction 5.1)
Effective date: 30 December 2018
Objective: To promote awareness in the market of upcoming government procurement opportunities
5.1.1 Publishing forward notices for an upcoming procurement
Agencies must provide an appropriate period of forward notice of upcoming procurements, taking account of:
(a) the nature and complexity of the Works or Construction Services;
(b) the likely tender participants and market characteristics, including whether it will be necessary for participants to establish consortia or likely interest from international tender participants; and
(c) the tender strategy and Procurement Model.
5.1.2 Forward notices – format and content
Subject to Instruction 5.1.3, in addition to any other means of publication or provision of notice to potential tender participants, forward notices must be published on the website or system nominated by the Secretary using the applicable form, and include the following information, to the extent known at the time of publication:
(a) indication of the expected timing and location for release of the Tender Notice;
(b) general nature of the Works or Construction Services to be procured, including the reference code used in the applicable form;
(c) location where the Works or Construction Services are to be delivered;
(d) the Procurement Model;
(e) indication of the likely tender process to be used, including whether:
(i) the tender process will be conducted as an open or a Selective Tender;
(ii) a single- or multi-stage tender process will be used, and
(iii) in the case of a Selective Tender, the type of Selective Tender that will be conducted;
(f) any minimum certification requirements or technical capability requirements, including in the case of a Selective Tender, the relevant prequalification category or categories;
(g) government policies applicable to the procurement, such as the Victorian Industry Participation Policy; and
(h) the Agency contact information.
Publication of a forward notice on website or system nominated by the Secretary is encouraged, but not required, for Limited Tenders, where appropriate given the grounds for conducting a Limited Tender.
5.1.3 Forward notices – when to use
(a) A forward notice must be used for open tenders.
(b) A forward notice must be used for Selective Tenders where the expected value of the Selective Tender is greater than:
(i) for Works - the upper limit value stated in Limited tender processes (Instruction 3.2.1(a)(ii)(1.)); or
(ii) for Construction Services - the upper limit value stated in Limited tender processes (Instruction 3.2.1(a)(ii)(2.)).
The words ‘Subject to Instruction 5.1.3,’ added at the start of the first paragraph.
The words ‘for open and Selective Tenders’ removed from the second line.
New paragraph 5.1.3 addresses when to use forward notices.
New paragraph 5.1.3 inserted to clarify when forward notices are used with open and Selective Tenders. Establishes minimum threshold values above which forward notices are required.
Tools and support
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.