Guiding principles (Direction 1.2)

Direction 1.2 defines the procurement principles that guide public construction procurement.

Effective date:  1 July 2018

When undertaking Public Construction Procurement in accordance with these Directions, Agencies must act in a manner consistent with the following procurement principles:

(a) value for money, taking into account —

(i) the total benefits and costs over the life of the goods, services or works procured;

(ii) environmental, social and economic factors; and

(iii) any risk related to the procurement;

(b) accountability for procurement commensurate with appropriate levels of authority and responsibility;

(c) probity through the application of integrity, ethical behaviour, fairness and transparency in the conduct of procurement processes;

(d) scalability so that procurement governance policies and processes are appropriate and efficient, taking into account the capability of available resources and the complexity of the procurement undertaken.

The procurement principles are supported by the following construction procurement principles:

(a) ensuring appropriate competition and contestability when undertaking Public Construction Procurement;

(b) employing the appropriate Procurement Models and processes taking account of the complexity and value of the project and supplier market capability;

(c) appropriately planning and managing Public Construction Procurement to deliver procurement objectives;

(d) reducing unnecessary burden of Public Construction Procurement for all parties;

(e) encouraging appropriate innovation and responsiveness in the supplier market;

(f) fostering continuous improvement and building appropriate skills and capability in the conduct of Public Construction Procurement;

(g) conducting Public Construction Procurement in an open and transparent manner ensuring defensibility of processes;

(h) treating all tender participants fairly and equally;

(i) conducting Public Construction Procurement in an efficient and timely manner; and

(j) undertaking Public Construction Procurement in accordance with the relevant legislation, policy, guidance and any mandatory requirements in these Directions.

These principles inform these Directions and are identified to highlight the purpose behind the Direction, but are not independent obligations.

Tools resources and assistance

Guiding principles (Direction 1.2) is supported by non-mandatory guidance Guiding principles (Guidance 1.2).

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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