Supplier's guide: procurement

Procurement legislation

All our purchasing and tendering is completed in a fair and ethical manner,  and to provide goods and services to us at the best value available.

This is achieved by adhering to the:

• Financial Management (Amendment) Act 1994 for all non-construction procurement of goods and services, as implemented by the Victorian Government Purchasing Board.
• Project Development and Construction Management Act 1994, overseen by the Building Commission, for all construction related works.

We benchmark our tender process to both the Victorian Government Purchasing Board and the Building Commission.

More information

  Building Commission Ministerial Direction 1: Tendering provisions for public construction

  Building Commission Ministerial Direction 2: Contractual provisions for public construction

Advertising our tenders

Our tenders are advertised in Wednesday's Herald Sun and Saturday's Geelong Advertiser.

Tender documents are available on our Tenderlink portal.

Suppliers and contractors can register on the portal to be advised of any tenders of interest.

  Tenderlink portal

Purchasing contracts

We have a variety of common use and Victorian Government contracts. Most construction purchases are handled by a private sector alliance.

Victorian Government contracts

We use some Victorian Government contracts for the provision of goods and services such as stationery, legal services, probity practitioner services, vehicles, and commercial and financial advisory service panels.

Regional sourcing is undertaken as required.

Common use contracts

We aggregate our requirements across our operations to prepare tenders that reflect our operational needs.

Contracts are awarded for a range of common use goods and services.

Common use contracts are typically for a 3 year term.

Construction contracts: the Barwon Water Alliance

We have formed an private sector alliance to deliver ther majority of our capital works projects. 

  Barwon Water Alliance

Purchasing principles

• Value for money: obtaining goods and services at optimal cost, having regard to issues such as policy performance standards, risk managment and life cycle costs.
• Open and fair competition: maximising the opportunity for businesses and individuals to compete for govenment business.
• Accountability: Defining responsibility for compliance with policy and adoption of best practice.
• Risk management: adopting pre-emptive and ongoing management strategies to minimise risk.
• Probity and transparency: ensuring fairness, impartiality, consistancy and transparency in all stages of the purchasing cycle.

Tendering thresholds

Thresholds apply to each of these purchase categories:

Construction

• More than $200,000: public tender
• $25,000 – $200,000: minimum 3 written quotes

Consultancy

• More than $150,000: public tender
• $25,000 – $150,000: minimum 3 written quotes

Goods and services

• More than $150,000: public tender
• $25,000 – $150,000: minimum 3 written quotes

Minor purchases

• $2500 – $25,000: minimum 1 written quote
• Less than $2500: minimum 1 verbal quote