You have several reporting obligations once a procurement contract is active.
- 1. After engaging a supplier, you must report regularly on some aspects of your relationship and their behaviour.
- This includes reporting on your agency’s record for paying on time.
- You must also report on areas such as Aboriginal participation, resource efficiency and SME and sustainability commitments.
- Construction contracts come with extra reporting obligations, such as apprentices, training and financial assessments.
You must pay suppliers on time, especially small businesses (that employ fewer than 20 people).
You should pay any invoices under $10,000 as soon as possible using a PCard or electronic funds transfer.
You must pay invoices over $10,000 and under $1 million from registered small businesses (less than 20 employees) within 5 business days of receiving a correctly rendered invoice, unless an existing contract or standing offer says something different.
The Office of the Small Business Commissioner monitors and reports on agency payment performance to small businesses. This process has been automated using the NSW Procurement Spend Cube to develop a small business reporting dashboard.
For construction contracts, you must:
- pay contractors any progress payments in line with the Building and Construction Industry Security of Payment Act 1999
- actively verify that head contractors are paying subcontractors on time and in line with the Act.
On-time paying and your annual report
Your agency needs to report on its record of on-time paying in your annual report. This includes:
- details of any actions it's taken to improve the way you pay invoices
- an outline of overdue payments that have attracted interest and an explanation for why they were overdue.
Read more in the Annual Reports Department Regulation 2015.
Aboriginal participation in construction
You must monitor suppliers’ progress in implementing Aboriginal participation plans and allocating spend. Suppliers must provide progress reports including:
- quarterly reports for construction contracts of more than $1 million
- monthly reports for contracts over $10 million.
End of contract reporting
You’ll need to make sure suppliers provide an Aboriginal participation report at the end of the contract (or periodically if you require it).
In construction contracts, suppliers must distribute the full allocation of funds for Aboriginal participation in line with what they committed to in their Aboriginal participation plan. If there are leftover funds that couldn’t be allocated, you must consult with the Procurement Board about distributing these to the approved bodies identified in the APIC Policy.
Each year, you must provide a report to the Department of Planning, Industry and Environment. This must outline how your agency performed against policy initiatives outlined in the Government Resource Efficiency Policy (GERP).
The reporting deadline is the last working day in November.
Complying with the GREP and reporting is voluntary if your agency has fewer than 100 employees.
SME and sustainability commitments
For contracts over $3 million, you must monitor whether your suppliers are delivering their SME and Sustainability Criteria commitments. Suppliers must report on these commitments, including providing monthly reports on SMEs involved in delivering the contract.
If you engage NGO suppliers to deliver human services, you must require them to report on:
- the location of where their services are delivered
- the local government authority where the service user resides.
You can seek an exemption from reporting on NGO engagement from the Procurement Leadership Group.
Apprenticeships and trainees
For construction projects over $10 million, you must ask contractors to report at least every quarter on:
- their plans for engaging apprentices and trainees on your projects
- how they’re progressing on their project targets.
You must report each quarter to Training Services NSW in the Department of Education on the number of apprentices and trainees your contractors employ.
Financial assessments for construction contracts
Financial assessments for construction contracts
You must regularly analyse the financial status of contractors over the life of construction contracts over $ 1million. At a minimum, this includes conducting a financial assessment of the preferred contractor before a construction contract is awarded and then:
- every 6 months for contracts over $1 million
- every 3 months for contracts over $10 million.
You must source financial assessment reports on contractors through the Financial Assessments Prequalification Scheme. Financial assessments sourced through the scheme are stored in a central repository.
You can source a financial assessment from the central repository if:
- it’s less than 6 months old for contracts over $1 million
- it’s less than 3 months old for contracts over $10 million.
You must address any risks and recommendations identified in a financial assessment report throughout the life of the contract.