Commonwealth specific clauses

Commonwealth specific clauses48 relate to:

•  ANAO access to contractor's information49;

•  Australian industry participation50;

•  construction projects51;

•  fair work principles52;

•  legal services53;

•  privacy54;

•  procurement 30 day payment policy for small business55;

•  occupational health and safety56;

•  protective security57;

•  equal opportunity58;

•  environmental considerations59; and

•  compliance with specified mandatory requirements or policies relevant to the nature of the contract.

The above clauses in an Australian Government contract should require the contractor to ensure their actions do not breach any Commonwealth, state or territory law and that they comply with Australian Government policy in these areas.




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48  These clauses relate to policies of the Commonwealth and other obligations that relate to procurement. They apply to FMA Act agencies. CAC Act bodies are subject to these clauses where applied under a General Policy Order. Further information, including model contract clauses, can be accessed from the Department of Finance and Deregulation website, <http://www.finance.gov.au/procurement/>Procurement Connected Policies guide.

49  Auditor-General Act 1997 as amended 8 December 2011.

50  The Australian Industry Participation National Framework applies to major Commonwealth Government procurements (generally above $20 million).

51  The National Code of Practice for the Construction Industry and Implementation Guidelines applies to all Commonwealth construction projects, and indirectly funded projects where the Australian Government contribution is at least $5 million and represents at least 50 per cent of the total construction value; or $10 million or more, irrespective of the proportion of Australian Government funding.

52  The Fair Work Principles requires entities to obtain information from tenderers about their compliance with their obligation to ensure fair, cooperative and productive workplaces, and precludes entities from contracting with suppliers in defined circumstances. The principles apply to all covered procurements.

53  Legal Services Directions establish the framework within which government legal services must be delivered, including the rules and obligations entities must adhere to when procuring legal services. This includes using a common form tender package when tendering for legal services.

54  The Privacy Act 1998 imposes obligations on entities when entering into contracts to provide service to or on behalf of the entity to apply the information privacy principles.

55  Under this policy, FMA Act agencies must pay small businesses within 30 days of receipt of a correctly rendered invoice for payments up to A$5 million (GST inclusive). Agencies are to provide for late interest payment for overdue invoices relating to new contracts up to $A1 million (GST inclusive).

56  Compare OH&S Fact Sheet, Contractor Management in Procurement, provides guidance to entities when engaging contractors, including matters that should be considered for inclusion in contracts relating to a contractor's compliance with relevant Commonwealth Occupational Health and Safety Acts or regulations.

57  Entities are responsible for ensuring official resources, especially classified information, are secured from unacceptable risk, including when services are provided by contractors. The Protective Security Core Policy and mandatory requirements direct entities to ensure that contractors comply with the Protective Security Policy Framework.

58  The Equal Opportunity for Women in the Work Place-Contract Compliance Policy promotes gender equality in the workplace.

59  Further information on environmental considerations can be accessed from the Department of Finance and Deregulation website, <http://www.finance.gov.au/procurement/>Procurement Connected Policies guide.

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