BuildLaw Issue 35 April 2019 | Page 37

appropriately” and that agencies must not “transfer all risk to the risk to the supplier”. The 4th Edition also contemplates that Treasury will develop standardised contracts for infrastructure projects exceeding a total cost of more than $50 million and that Treasury must be consulted in relation to any material modifications to these standards.
Theme Four: emphasis on comprehensive procurement planning and processes
The 4th Edition places increased emphasis on procurement planning and regular review processes. This includes requiring agencies to produce an annual Procurement Capability Index self-assessment and developing comprehensive procurement plans for each proposed project.
Once implemented, the 4th Edition will set higher standards on all participants across all stages of the procurement process. The Rules are not intended to create a ‘box ticking’ exercise but instead genuinely facilitate improved procurement processes and activities to achieve the best possible result over the whole-of-life of the goods, services or works being procured.
We now set out our further observations and suggested approaches for public sector procurement participants.
Some further background
The Rules are the government’s standard of good practice procurement. The Rules focus mainly on the process of sourcing, rather than the full spectrum of a procurement lifecycle. For certain government agencies, compliance with the Rules is mandatory. For other governmental bodies (including local councils), compliance with the Rules is not mandated but is encouraged.
So why have the Rules? Well, the Rules intend to:
1. Guide public agencies to procure responsibly, achieving public value
2. Provide consistent and transparent standards to give everyone confidence in the integrity of government procurement
3. Encourage commercial practice
4. Support economic development
5. Build high-performing public service