Easy to do business

We want to attract a broad supply base that includes small to medium, regional and Aboriginal businesses.
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What you need to know
  1. Our aim is to make NSW the easiest place in which to do business, especially for small to medium enterprises (SMEs).
  2. To help achieve this objective you should notify suppliers in advance of opportunities and give them time to prepare.
  3. You should also make it easy for them to understand contractual terms and comply with them.
  4. Because cashflow is vital to small businesses, you must pay promptly.

Notify suppliers of business opportunities

When you let suppliers know of projects well in advance and pay them promptly, you’ll build stronger relationships.

Give an early heads-up to the market about upcoming projects to let them work through our processes and cost their work accurately.

Use technology to publicise opportunities as they arise. Do your best to help suppliers know where they need to look and give them plenty of advance notice.

Always use eTendering to make suppliers aware of opportunities. Avoid print except in unusual circumstances and use it to complement what’s online, not to replace it.

Contracts and prequalification schemes

The two main ways you can short-list suppliers are through standing-offer contracts and prequalfication schemes.

A standing-offer contract is an arrangement with one or more vetted suppliers to provide specific goods or services to agency buyers for a fixed period of time.

Prequalification schemes are lists of suppliers who have registered to do business with government within a specific set of guidelines and rules. Schemes make it easier for new suppliers to be eligible to pitch for government work.

Goods and services contract templates

When you’re using a prequalification scheme or any other whole-of-government arrangement, you must also use a designated customer contract. The templates for these are in our Resources library.

By using standardised contract templates, you’ll save time and confusion. Keep contracts brief and write them in plain English. Don't tie your supplier up in red tape or load them down with unnecessary conditions or insurances.

Also, make sure you use standard commercial approaches based on the Procurement Board’s guidelines. You can read more about these at Contract clauses.

ICT, HR and construction contract templates

If you’re procuring an information and communication technology (ICT) or human resources contract, you need to use the specific contract frameworks you’ll find on the Supplier Hub.

If you’re from an unaccredited or partially-accredited agency procuring construction work worth more than $1.3 million you also need to follow specific guidelines. Construction contract templates can be found on the construction category page.

Faster supplier payments

For many small businesses, cashflow is an ongoing and important issue. A third of SMEs say late payments have damaged their ability to cover business-critical basic expenses such as rent, wages and utilities.

To help overcome this, you should pay supplier invoices up to $10,000 instantly via your agency's purchasing card. You should pay invoices between $10,000 and $1 million within 5 days if the supplier is a small business. Always pay these invoices electronically where you can.

Read about supporting SMEs and the Faster payment terms policy.

Purchasing exemptions

Sometimes you can buy directly from a supplier, so long as they meet your agency's safety, security or infrastructure policies.

This is true even where the goods or services you’re buying are available through a whole-of-government arrangement.

Read about exemptions to government arrangements.

Bid cost contributions

Where the cost of bidding for large construction or infrastructure projects — over $100 million — may be judged to exclude some players, agencies may consider contributing up to 50 per cent of the bid costs. The rationale should be included in the Final Business Case submitted to the Expenditure Review Committee, or Cabinet, following consultation with Treasury.

Read the Bid cost contribution policy.

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