Construction industry procurement

In NSW, construction industry procurements work a little differently to others. We outline some of the key differences.
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What you need to know
  1. Construction contracts work a little differently to goods and services contracts.
  2. As a buyer, you have a different accreditation scheme and different contract limits.
  3. Covered procurements involving construction contracts have further requirements still.
  4. You also have more obligations when it comes to reporting on WHS, industrial relations, environmental management and other factors.

Why is construction different?

Construction industry procurement works a little differently to other procurements. That’s only natural when you consider the contract values are often higher, the margin for error lower and the number of suppliers on any one project often greater.

For this reason, there are often different rules that apply to construction procurement.

Construction accreditation

Construction procurement has its own Accreditation Program.

Accredited agencies must comply with the terms of their accreditation under the Accreditation Program for Construction Procurement.

Unaccredited agencies must comply with the Assurance Process for Construction Procurement for procurements valued over $1.3 million (ex gst).

Unaccredited agencies wishing to get accredited must apply for accreditation under the Accreditation Program for Construction Procurement and undertake a formal assessment process.

See a list of all currently accredited agencies DOCX, 116.8 KB.

Covered procurements

If your contract is over a certain threshold it may be subject to Australia’s trade agreements as a ‘covered procurement’. The current threshold for construction procurements is $9.584 million (excluding GST).

Covered procurements are subject to the rules contained in PBD-2019-05 Enforceable Procurement Provisions. These impact how you procure.

Find out more about covered procurements.

Reporting requirements

Construction contracts often come with reporting requirements when it comes to:

  • Aboriginal participation
  • apprentices
  • WHS
  • environmental management
  • quality management
  • industrial relations.

Read more about your other obligations for construction contracts