Supplier performance and shared reporting regime (Direction and Instruction 8.2)

Supplier performance and shared reporting regime (Direction 8.2)

Effective date: 1 July 2018

Principles

Value for money, probity and scalability are procurement principles that are specifically relevant to capability building, performance and continuous improvement of both the supplier market and Agency staff.

Of particular relevance to this Direction are the following construction procurement principles:

• encouraging appropriate innovation and responsiveness in the supplier market
• treating all tender participants fairly and equally
• fostering continuous improvement and building appropriate skills and capability in the conduct of Public Construction Procurement
• undertaking Public Construction Procurement in accordance with the relevant legislation, policy, guidance and any mandatory requirements in these Directions.

8.2 Supplier performance and shared reporting regime

(a) Agencies must establish appropriate processes to monitor supplier performance and to receive supplier feedback on the Agency's performance.

(b) Agencies must comply with any shared reporting set out in the Instruction.

Supplier performance and shared reporting regime (Instruction 8.2)

Effective date: 30 December 2018

Objective: To define the requirements for the assessment of suppliers’ performance.

8.2.1 Regime to apply to new procurement only

Public Construction Procurement starting on or after 1 July 2018 must comply with this Instruction 8.2.

8.2.2 Performance reporting

(a) In addition to any other means of assessing how suppliers perform, Agencies must assess how suppliers perform using the template nominated by the Secretary when:

(i) for suppliers of Works - the value of the contract engaging the supplier is $750,000 (inclusive of GST) or higher

(ii) for suppliers of Construction Services - the value of the contract engaging the supplier is $300,000 (inclusive of GST) or higher

with the exception of suppliers engaged under contracts that comply with the Public Private Partnerships requirements or the Victorian Alliancing Policy.

(b) Subject to paragraph (a), Agencies must report on how suppliers perform. Completed reports must be submitted to the website or system nominated by the Secretary at the times set out in Instructions 8.2.2 and 8.2.3.

(c) When assessing how suppliers perform Agencies must provide the supplier with an opportunity to reply to the assessment. This opportunity to reply may be time limited.

(d) Agencies may assess and report on how suppliers of Works or Construction Services perform when the value of the contract engaging the supplier is less than that set out in paragraph (a) of Instruction 8.2.1 using the template nominated by the Secretary.

8.2.3 When to assess how suppliers of Works perform

Assess how suppliers of Works perform:

(a) every six calendar months from the date of possession of the site until practical completion of the Works, when the expected duration of the contract engaging the supplier is 12 months or longer

(b) within 30 days of the date for practical completion of the Works

(c) within 30 days of the end of the defects liability period for the Works

(d) at any time when a significant issue affecting the supplier’s performance arises.

If a performance report required under paragraph (a) of Instruction 8.2.2 is due to fall within two calendar months of the performance report required at practical completion of the Works, only the performance report at practical completion of the Works need be completed.

8.2.4 When to assess how suppliers of Construction Services perform

Assess how suppliers of Construction Services perform:

(a) every six calendar months, when the expected duration of the contract engaging the supplier of Construction Services is 12 months or longer

(b) within 30 days of the end of the contract engaging the supplier of Construction Services

(c) for suppliers of Construction Services engaged as designers of buildings or infrastructure - within 30 days of the date when the later of the final design or working drawings and related documents (such as the specification) are submitted

(d) for suppliers of Construction Services where their services affect the delivery of buildings or infrastructure:

(i) within 30 days of the date for practical completion of the Works

(ii) within 30 days of the end of the defects liability period for the Works

(e) at any time when a significant issue affecting the supplier’s performance arises.

If two performance reports are required within two calendar months of each other, only the later of the two reports need be completed.

Tools and support

Submit performance reports via the online buyer portal feedback form(opens in a new window).

The Detailed guide to completing a supplier performance report sets out the method to follow when assessing the performance of suppliers. This guide also establishes the grading scales to apply when assessing how suppliers perform.

The Practitioners Toolkit includes key documents, guidance and information relating to the Ministerial Directions and Instructions.

For further information about the Ministerial Directions and Instruction for public construction procurement, please contact the Construction Policy Team.