What is accreditation for construction procurement?

Accredited agencies have greater autonomy to procure construction services than unaccredited agencies.
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What you need to know
  1. Accreditation for construction procurement authorises NSW Government agencies to autonomously procure construction services
  2. To become accredited, your agency must d undergo a formal assessment process, which includes engaging an independent assessor.
  3. To maintain accreditation, your agency must meet ongoing obligations around reporting, planning, self-assessment, trigger events and assurance.
  4. The Accreditation Program for Construction Procurement is administered by Public Works Advisory (PWA) and owned by the NSW Procurement Board.
  5. Unaccredited agencies are subject to a threshold of $1.3M for procurement of construction services.
  6. An unaccredited agency that needs to procure construction services above $1.3M must seek and obtain assurance from an accredited agency. Assurance is provided on a fee-for-service basis.

The Accreditation Program for Construction Procurement addresses the specific capabilities and risks of procuring construction services.

Construction services are defined as ‘services relating to the construction of buildings or works, including pre-erection works, construction work, and repairs, alterations and restorations’ in the NSW Procurement Policy Framework.

To become accredited, an agency must successfully complete an assessment as part of the Accreditation Program for Construction Procurement.

Accreditation is granted by the NSW Procurement Board, who acts as the owner of the accreditation program. The board grants accreditation to agencies who can demonstrate a minimum standard of performance in 7 key procurement focus areas. The board bases the accreditation decision on a formal report from an independent assessor.

The program is administered by Public Works Advisory (PWA), who manages the assessment process and provides ongoing advice and support to accredited agencies, and overseen by the Construction Leadership Group.

All expenses for seeking and maintaining accreditation must be covered by the agency.

A separate program exists for agencies seeking accreditation for goods and services procurement.

Read more about the construction procurement accreditation program.

Most NSW Government agencies can apply for accreditation

NSW Government agencies can apply for accreditation, with the exception of:

  • local councils
  • local authorities
  • the Parliament of New South Wales
  • state-owned corporations

What accreditation means for your agency

If your agency is accredited, this means it has the authority to procure construction services above the $1.3M threshold set for unaccredited agencies.

Accreditation comes with ongoing responsibilities around planning, annual reporting, trigger event management and assurance.

Once granted, your agency’s accreditation status is valid in perpetuity, so long as you continue to meet ongoing responsibilities. This includes the management and reporting of trigger events.

Find out if your agency is accredited for construction procurement in the list of accredited agencies - construction DOCX, 116.8 KB.

Get accredited for construction procurement

The NSW Procurement Board grants accreditation to agencies who have completed the Accreditation Program for Construction Procurement. The program includes an assessment of your agency’s procurement function by an independent assessor.

To begin the accreditation program, an agency should hold a planning meeting with Public Works Advisory (PWA) to declare its interest in being accredited. Agencies that move forward must then engage an independent assessor.

The independent assessor will:

  • analyse the agency’s procurement function
  • interview key staff
  • analyse procurement processes and documentation
  • produce a formal report

The report measures the agency’s performance in 7 key procurement focus areas.

Based on the report, the NSW Procurement Board will determine whether to grant your agency accreditation for construction procurement.

Read more about the assessment process for accreditation.

Maintain accreditation through annual obligations

Just as the Procurement Board can grant accreditation, it can vary or cancel accreditation if your agency fails to meet obligations.

To maintain accreditation, your agency has obligations around:

Accreditation is granted in perpetuity, as long as an agency continues to meet its accreditation responsibilities or unless a trigger event occurs that results in a review or remediation process.

Read more about the responsibilities of accredited agencies.

Provide procurement assurance to other agencies

Agencies that are not accredited for construction procurement may seek assurance from accredited agencies.

The assurance process applies to the procurement of construction services -- and excludes goods and services procurement.

Read about concurrence in Procurement Board Directive 2019-04 Approved Procurement Arrangements, including the use of whole of government contracts and schemes.

Read more about the assurance process for construction.

Comply with the Procurement Policy Framework

The Procurement Policy Framework applies to the procurement of goods and services of any kind, including construction.

Agencies are required to regularly test their compliance with the framework.

Read the Procurement Policy Framework.

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