Overview of procurement process

Tendering can be a costly business for the Government, contractors and suppliers in terms of time, resources and money. Before commencing the process it is important to have a firm intention to proceed, with funds committed and available. It is also important to ensure that a proper planning process has been undertaken and that you are aware of the requirements of the Treasurer's Instructions, the Procurement Practices Manuals and the various guidelines available. 

General information relating to procurement principles and general procurement policies, together with the processes to be adopted is located under the Purchasing Framework section of this website. Specific publications in relation building and construction are detailed in at Guidelines

The seven basic stages of a procurement are:

  • Planning the procurement;
  • Preparing documentation;
  • Inviting offers;
  • Receiving offers;
  • Evaluating offers;
  • Accepting offers; and
  • Managing the contract.

High level information on these stages is set out below. Refer to the Project Manager checklist for a detailed listing of the various steps in the procurement process for works projects.

Planning the procurement

A number of issues need to be considered when planning works projects. Reference should be had to the information on Parliamentary Approval, as well as the requirements of the Buy Local Policy, the matters set out in Treasurer's Instruction 1205 and, for high value procurements, requirements relating to industry consultation.

As a consultant is often required to be engaged, reference should also be had to Engaging Consultants.

Preparing documentation

Poor procurement documentation exposes the Government to risks, therefore the quality of documents is therefore critical to successful procurement. The procurement documents are the basis of the contract between the Government and the successful supplier and must accurately reflect the physical, financial, contractual and time parameters of the service required.

Government policy requires the use of certain documentation for certain types of procurement and information on requirements is set out in Treasurer's Instructions 1206 and 1207 and in Contract Documentation, Delegation and Risk. The Office of the Crown Solicitor has prepared template documentation for some processes and these are contained here.

You should also be aware of the requirements of the Government's Confidentiality Policy.

Inviting offers

Information on inviting offers is contained at Minor Works, Major Works and Engaging Consultants - refer to the tables at Purchasing Overview to determine process is needed in which circumstances.

For major works there is a requirement to use prequalified providers and further information on those requirements and how the prequalification system works is located at Prequalification.

Receiving offers, evaluating offers and accepting offers

Information on receiving offers is contained at Minor Works, Major Works and Engaging Consultants.

Managing the contract

Once the contract has been awarded, it is important to ensure that appropriate steps are in place to manage the effective and efficient delivery of the services under the contract. Contract management includes managing the relationship between the agency and the contractor, monitoring and managing the performance of the contractor and ensuring that the contractor meets its obligations under the contract as well as managing problems and disputes.

The Project Manager checklist details some key issues that need to be dealt with as part of the management process. Refer also to Contract Documentation, Delegation and Risk.

Information on roles and responsibilities of the parties, performance reporting and procurement reporting is also available.

 

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