From 1 July 2018 new principles and procedures will replace Ministerial Direction No.1, Ministerial Direction No. 2 and Ministerial Direction No.4.
The new principles and procedures are presented in the Ministerial Directions for Public Construction Procurement in Victoria.
The Ministerial Directions are supported by:
- mandatory Instructions for Public Construction Procurement, and
- non-mandatory Guidance for Public Construction Procurement in Victoria.
Refreshed standard form contracts will be released on 1 July 2018 to complement the new Directions and Instructions.
Fact sheets presenting summaries of the new Ministerial Directions and comparing them to the old rules are available at Practitioners Toolkit - Fact sheets.
The Ministerial Directions prescribe principles and procedures that Victorian government departments and public bodies must follow when they procure public construction works and services, including:
- construction tendering procedures that must be used, based on the estimated value of the works or services;
- general conditions of contract to be used for public construction and the principles to be followed when developing contract conditions; and
- construction requirements for community fire refuges.
Ministerial Directions and Guides
Ministerial Directions in relation to public construction, issued by the Minister for Finance under Part 4 of the Project Development and Construction Management Act 1994 (Vic), are:
- Ministerial Direction No. 1 - Tendering Provisions for Public Construction
- Ministerial Direction No. 2 - Contractual Provisions for Public Construction
- Ministerial Direction No. 3 - Bushfire Provisions for Buildings of a Public Nature (revoked as of 1 December 2016)
- Ministerial Direction No. 4 - Construction Requirements for a Community Fire Refuge
Each Ministerial Direction incorporates an associated Guide issued from time to time by the Secretary to the Department of Treasury and Finance (the Department responsible for Part 4 of PDCM the Project Development and Construction Management Act 1994 (Vic).
These Guides contain requirements that must be adhered to by all departments and public bodies.
Ministerial Direction No 1 – Tendering provisions for public construction
Ministerial Direction No 1 - Tendering Provisions for Public Construction (version 4, December 2016) prescribes the tendering methods to be used by Victorian government departments and public bodies for construction works and related services, based on the estimated value of the tender.
Guide to Ministerial Direction No 1
The Guide to Ministerial Direction No 1 Tendering Provisions for Public Construction (Issue No. 4, March 2017) is incorporated into, and should be read in conjunction with, Ministerial Direction No 1.
The Guide supports the implementation of Ministerial Direction No 1 by:
- providing information on public construction tendering, supplier and tender assessment and reporting protocols;
- specifying approved mandatory and recommended assessment criteria for tender acceptance whether contractors are identified through pre-qualified or open tendering processes;
- the requirements and conditions for the accreditation of registers of pre-qualified suppliers; and
- approving whole of Victorian government and agency-specific registers of pre-qualified building and construction industry suppliers (the Construction Supplier Register and the VicRoads pre-qualification schemes).
Further amendments have been made to the Guide to Ministerial Direction No 1 for public construction with effect from 1 March 2017. Refer Update to the Guide to Ministerial Direction No 1 for further information.
Ministerial Direction No 2 - Contractual Provisions for Public Construction
Ministerial Direction No. 2 – Contractual provisions for public construction (version 2, December 2016) prescribes the principles that must be adhered to in the form and content of construction contracts used by Victorian government departments and public bodies for public construction projects.
Ministerial Direction No. 2 specifies that conditions of contract, including ‘special conditions’, must be in a form approved by the Secretary responsible for Part 4 of the Project Development and Construction Management Act.
For requests for approval of alternative or amended forms of contracts, please contact the Construction Policy Team.
Guide to Ministerial Direction No. 2
The Guide to Ministerial Direction No. 2 (Issue no. 5, December 2016) is incorporated into, and should be read in conjunction with, the Ministerial Direction.
The guide lists the forms of contract approved for use by Victorian Government departments and public bodies, and the considerations that apply when seeking to use an alternative or amended form of contract. In most cases, the use of alternative or amended forms of contract must be obtained from the Secretary to the Department of Treasury and Finance, however in limited ‘special circumstances’ the relevant Accountable Officer may approve the use of an alternative form of contract. The guide also establishes the terms of reference and membership of the Construction Contracts Advisory Panel.
Ministerial Direction No 3 Bushfire provisions for buildings of a public nature
Ministerial Direction No. 3 Bushfire provisions for buildings of a public nature is revoked with effect from 1 December 2016.
The requirements applicable to construction of public buildings in bushfire prone areas are now set out in the Building Regulations 2006 by the Building Amendment (Specific Use Bushfire Protected Buildings and Other Matters) Regulations 2016. The amendment to the Building Regulations took effect on 30 September 2016.
Ministerial Direction No. 3 was issued on 1 February 2010 to implement recommendations of the Victorian Bushfires Royal Commission. Ministerial Direction 3 was intended to be an interim measure to establish these requirements, pending an update to the Building Regulations. Now that the Building Regulations have been amended, Ministerial Direction 3 is no longer required.
The Guide to Ministerial Direction No. 3, which was incorporated into the Direction, is also revoked with effect from 1 December 2016.
Ministerial Direction No 4 - Construction requirements for a community fire refuge
Ministerial Direction No. 4 Construction requirements for a community fire refuge applies to construction undertaken by Victorian government departments and public bodies after 1 August 2012.
Ministerial Direction No. 4 establishes the standards applicable to the public construction of ‘community fire refuges’’ The objective of Ministerial Direction No. 4 is to ensure that departments and public bodies only support the establishment of safe and purpose-built structures that meet the requirements to be designated as a community fire refuge in accordance with the Country Fire Authority Act 1958 (Vic).
Ministerial Direction No. 4 was originally adopted with effect from 1 August 2012 and, along with the associated guidance issued by the Secretary pursuant to the Project Development and Construction Management Act (Vic), established interim standards intended to remain in place until a national standard directly relevant to the construction of a community fire refuge was developed. Emergency Management Victoria was involved in the development of the national standard and has issued the Construction and Project Management Guidelines for Community Fire Refuges based on the national standard and the outcomes of Emergency Management Victoria’s pilot programme.
With effect from 1 October 2015, Ministerial Direction No. 4 has been amended to provide that the Construction and Project Management Guidelines for Community Fire Refuges (as it may be updated from time to time) is the applicable standard for public construction of community fire refuges.
For further information about the Ministerial Directions for public construction, contact the Construction Policy Team.