The Contract Lifecycle: Stage 3 – Procurement

This contract stage consists of two steps: Contract Award and Risk Review.

In the Contract Award step, choose the contractor who was awarded the contract, as well as all other required fields.

Note: Start and end dates must fall within the dates of the project that contains the contract.

Note: Contractors are added in the system by admin users.

Many of these contractor fields are pretty straightforward. But here are some definitions of fields that may not be familiar:

• Awarded Type: Choose from the following options:
  • Other: Covers any type of contract that doesn't neatly fit into the categories below. This could involve unique or specialised agreements tailored to specific needs. (If you have suggestions for additional award types, based on your experience, please submit feedback XREF!)
  • AS2124: Follows Australian Standard 2124, which provides clear guidelines for managing construction and civil engineering projects, ensuring both parties understand their roles and responsibilities.
  • AS4000: Follows Australian Standard 4000, designed for straightforward construction projects. This standard offers a balanced and transparent framework to guide both the contractor and the customer through the project.
  • Preferred Supplier’s Agreement: A supplier for the contract is already approved under an existing agreement. This is an arrangement of trust that ensures both the contractor and the organisation (e.g. Council) benefits from competitive pricing and reliable service.
  • High Risk Minor Works:  Used for smaller-scale projects that involve higher risks, whether due to complexity, safety considerations, or potential impacts. Special care is taken to manage these risks to protect both the project and the community.
  • Medium Risk Minor Works:  Used for smaller-scale projects with a moderate level of risk. This contract is manageable, but requires attention to ensure risks are properly addressed, offering peace of mind to the organisation throughout the process.
  • Goods (once off): Covers a one-time purchase of specific goods. This straightforward contract is designed to meet a particular need quickly and efficiently, with no long-term commitments.
  • Goods (PSA/SOA): Relates to the purchase of goods under a Professional Services Agreement (PSA) or a Standing Offer Arrangement (SOA). This contract allows for flexibility, and ensures ongoing access to products or services when needed.
  • Goods & Services >$250,000: For high-amount purchases, involving a more thorough process to ensure that the significant investment delivers value and meets expectations.
  • Goods & Services <$250,000: For low-amount purchases, involving a more streamlined process that still ensures quality while being efficient and cost-effective for smaller-scale needs.
  • Low Risk Minor Works: Used for smaller projects with minimal risk, ensuring efficient completed without unnecessary complications, providing confidence throughout the project.
  • Local Buy: Used when working with a trusted local supplier, selected from a list of pre-approved businesses. This contract type is designed to support the local economy while ensuring a smooth and reliable purchasing process.
  • Tender: For contracts awarded after a competitive tender process. Tenders ensure that the organisation receives the highest value, service, and expertise, based on clear and fair criteria.
• Contingency Allocation: The contracted contingency allocation, based on the total contract award value. This is usually a percentage of the total contract.
• Provisional Allocation: An allocation within the organisation's budget that can be drawn upon if the contract is to move outside of the contingency and contract award amount.
• Maintenance Allocation: The value assigned to maintenance of the asset based on the budget allocation.
• Pre-Tender: The value of the contract estimated prior to the tendering or procurement process.

Once the contractor and award details are entered, there are three options at the bottom of the tab.

• Update Award: Saves without committing; you can still make edits.
• Commit Award: The contractor and all details are final and can no longer be changed.
• Notify Contractor: Choose this option to send an award notification to the contractor via email.

Once the contract award is committed, the next step is Risk Review. This step is for assessing what changed between the initial risk assessment and contract award. Risk change can follow delivery or monetary changes, or for unknown contractors.

Completion of this step follows the same procedure as in the Planning / Assessment stage.

Once this stage is complete, you’ll move forward to Stage 4 – In Delivery.