This Direction applies to the procurement of construction goods and services by a government agency within the meaning of the Public Works and Procurement Act 1912. It replaces Procurement Board Direction PBD 2015-01C Use of recognised industry standards when planning and delivering infrastructure.

The NSW Procurement Board supports the use of open and recognised industry standards wherever practicable when planning and delivering infrastructure as a way of enabling Australian and international suppliers to compete fairly for opportunities. These standards and processes must be capable of recognising domestic and international suppliers in a way which complies with Australia’s Free Trade Agreement commitments. The Board also acknowledges the role that recognised independent testing and certification bodies play in delivering assurance about the quality of materials used in infrastructure. Agencies are encouraged to disclose publicly the source of major components and materials on infrastructure projects valued at $10 million or above.

The Board is concerned that non-conforming and non-compliant building products and construction materials are potentially affecting the quality, safety and whole of life-time performance of buildings and structures constructed for the NSW community. Government agencies are responsible for ensuring that they achieve value for money when procuring construction goods and services. This includes ensuring that a building or structure procured by an agency is fit for its planned purpose and, where relevant, that construction materials and processes used in construction are fit for purpose.

Direction

The Board directs government agencies to take the following actions when procuring construction goods and services:

1. Identify and document the intended purpose or purposes of the procurement, including the anticipated uses and period of use.
2. Identify and assess risks arising from non-conforming or non-compliant building products and construction materials, taking account of the intended purpose or purposes of the procurement. 
3. Ensure these risks are managed as far as practicable, taking into account:
   • legal obligations relating to workplace health and safety, public safety and environmental protection
   • compliance with the relevant design and performance standards in the National Construction Code
   • other relevant international and Australian Standards and technical specifications.
4. Contractually require compliance with relevant standards for building products, construction materials and construction or manufacturing processes. This includes but is not limited to standards specified by the Board in the attachment to this Direction.
5. Ensure compliance with relevant standards is assured by contractors, including where relevant by third party independent certification.

The Board authorises the NSW Chief Procurement Officer to amend the attached list of contractually required standards and to publish standard contractual provisions dealing with compliance and assurance. The authority of the NSW Chief Procurement Officer is subject to approval by the Construction Leadership Group established by the Board.

AS/NZS 5131

The Board is aware that Standards Australia released a draft of AS/NZS 5131 Structural steelwork— Fabrication and erection for public comment in March 2016. This Standard when finalised will set out minimum requirements for the construction of structural steelwork. It will form an important benchmark for NSW government construction projects.

The Board will require compliance with AS/NZS 5131 when it is finalised where it is relevant to the constuction project and will specify the use of certified steel fabricators and erectors, wherever practicable. The Board’s Construction Leadership Group is authorised to:

• set a timetable for steel fabricators and erectors to demonstrate that they can achieve compliance with AS/NZS 5131
• recognise certification schemes or other arrangements which will be taken as evidence of compliance capability.

Note: Standards Australia published AS/NZS 5131:2016 Structural steelwork - fabrication and erection on 8 December 2016. The NSW Government requires that contractors be able to demonstrate compliance with this standard by 1st October 2017.

ATTACHMENT

Government agencies must specify and contractually require compliance with a standard in this table where the standard is relevant to a construction project. An agency can accept certification assurance identified in this table as evidence of compliance.

* Inserted 26 April 2017