This Direction deals with procurement of construction works valued up to $1 million by or for a government agency within the meaning of the Public Works and Procurement Act 1912.

The Procurement Board aims to simplify the construction procurement prequalification process for agencies and contractors. The Board is particularly concerned to ensure that only information necessary to assess a contractor’s status is collected, no contractor is required to supply the same information more than once to prequalify or to maintain prequalification, and Government agencies use contractors prequalified by other agencies, wherever practicable.

On advice from the Construction Leadership Group and the Construction Industry Advisory Group, the Department of Finance, Services and Innovation has created the Prequalification Scheme for General Construction Works. The Scheme replaces prequalification schemes currently operated by a number of agencies and, in doing so, creates a single low-cost approach to prequalification for businesses undertaking general types of construction work.

Accordingly, under this Direction, it is mandatory for each NSW Government agency to:

1. Cease maintaining prequalification schemes for categories of construction work covered by the Prequalification Scheme for General Construction Works by 31 December 2014

2. Adhere to the Scheme Rules published on ProcurePoint

3. Assist Public Works Advisory and existing prequalified contractors to move to the Prequalification Scheme for General Construction Works

4. From 1 January 2015 use the Prequalification Scheme for General Construction Works, when procuring construction work valued up to $1 million which is covered by the categories listed in the Scheme, unless:

   • issuing an open tender through the eTendering website

   • engaging a contractor using powers available in clause 4 or clause 5 of the Public Works and Procurement Regulation 2014 or Board Direction 2013-04.

Agencies are permitted to establish panel, standing offer or sourcing arrangements from the Prequalification Scheme for General Construction Works if these arrangements are refreshed at least every two years.

Agencies may operate prequalification schemes for categories of construction work not covered by the Prequalification Scheme for General Construction Works or valued over $1 million, as long as scheme rules, contractors and contracts are published on the eTendering website.

Agencies may only engage a local contractor that is not on the Scheme when the following three conditions are satisfied:

• it is a one off engagement

• the agency formally invites that contractor to become prequalified

• the value of the work is less than $30,000.

The Construction Leadership Group will issue guidance to agencies about contractor selection, including indicative numbers and type of quotations for work, and the information to be obtained at contracting stage.

Construction Procurement Direction C2014 – 02, Construction procurement prequalification schemes – interim arrangements, issued on 19 March 2014 is withdrawn from 1 January 2015.

This Direction was approved by the NSW Procurement Board on 17 September 2014 and takes effect from 1 October 2014. This Direction is to be reviewed after three years of operation.