Code for Tenders and Contracts

Code for Tenders and Contracts

The City of Hobart Code for Tenders and Contracts provides a framework for best practice procurement.

This Code covers the procurement of all goods, services and works for the City of Hobart including building and construction, civil works, plant and equipment and consulting services. It sets out how the City will meet its legislative obligations in respect to procurement, tendering and contracting.

The Code includes a statement of ethics which underlines best practices to be applied by the city's officers who organise or participate in procurement, and Service Providers when they offer to provide the City with goods, services or works and when they are engaged by the City to supply it with goods, services or works.

City of Hobart Code for Tenders and Contracts(PDF, 3MB)

Ethical and social procurement

The Code for Tenders and Contracts details the standards of business ethics to be applied by City personnel when dealing with suppliers in seeking tenders and quotations. The code also sets out the ethical behaviour that the City expects service providers (including contractors, subcontractors, consultants and suppliers) to demonstrate.

How we do business

City officers, or any other person or entity making a purchase on the City's behalf, will comply with the following ethical standards of behaviour:

  • the procurement process will be undertaken in accordance with the City's procurement principles
  • actual or potential conflicts of interest will be declared before inviting offers and measures put in place to appropriately manage any actual or potential conflicts of interest, monetary of otherwise
  • accurate records of all dealings in respect to the purchase will be maintained during and after the process
  • declining to accept any payments, gifts, gratuities, entertainment/hospitality and other benefits offered by a service provider for the discharge of official duties
  • avoiding any situation which is, or which may become, or which may be perceived as being a conflict of interest with the person's official duties
  • avoiding any relationship with a service provider, financial or otherwise, which could be perceived as unfair or improper influence on their judgement, or which could expose the City to allegations or perceptions of impropriety or unwarranted preference or unfair dealings or which could represent a breach of legislation
  • for any person with no legitimate role in the procurement process, not attempting to intervene or exert influence on the outcomes of the procurement process, in particular not communicating or implying any preference for the selection of a particular service provider.

What we ask of you

Whenever participating in a City of Hobart procurement process in any capacity whatsoever, service providers:

  • will ensure they are acquainted with the City's requirements and all matters relating to the tender or the quotation and the proposed contract
  • will not submit a tender or quotation unless they have the financial, technical, physical, management, resource, ethical and other capabilities to fulfil the City's requirements
  • will apply the City's purchasing principles and the standards and ethics required by this code in its dealings with contractors, subcontractors, suppliers or agents
  • must not engage in any uncompetitive behaviour or other collusive practices, which deny or reduce legitimate business opportunities to other potential suppliers or the City
  • must at all times act in observance of all laws
  • must not:
  • engage in acceptance or provision of secret commissions
  • collude with other suppliers, potential or otherwise
  • submit inflated prices to advantage another potential service provider
  • enter into improper commercial arrangements with other contractors, subcontractors, suppliers or agents
  • seek to influence the procurement process by any improper means whatsoever
  • accept incentives to provide contracts or services to other contractors, subcontractors or agents
  • must declare any matter or issue which is, or which may lead to or which could be perceived as, a conflict of interest regarding their participation in a procurement process or a contract to fulfil the City's requirements immediately upon the service provider becoming aware of the matter or issue.

Purchasing principles

City of Hobart purchasing must be conducted legally and by encouraging fair and open competition between service providers. The core objective of any City procurement process is to achieve the required outcomes and obtain value for money.

City of Hobart purchasing principles are set out in its Code for Tenders and Contracts, as follows:

Principle Description This means
Value for money Achieving the desired outcome at the best possible price Weighing up the benefits of a purchase against the cost. Factors which may be considered when determining value for money include:
  1. fitness for purpose
  2. whole-of-life costs over the lifetime of the product, good or service
  3. advantages of buying locally (e.g. shorter delivery lead-times, availability of local back-up and servicing and availability of spare parts)
  4. supplier's capacity and ability, including management and technical capability and physical and financial resources
  5. climate change and environmental considerations and energy conservation
  6. contribution to achieving City of Hobart policy or strategic objectives
  7. social or community benefit
  8. risk assessment
  9. quality assurance
  10. disposal value.
Ethical purchasing standards Acting ethically, being fair and unbiased and complying with the law in all dealings with service providers Applying the following standards of ethics and ethical behaviours when dealing with suppliers:
  1. conducting all business in the best interest of the City of Hobart, avoiding any situation which may, or which could be deemed to, impinge on impartiality
  2. ensuring City monies are spent effectively and in accordance with City policies
  3. acting without favour or prejudice
  4. complying with legal requirements
  5. always seeking to maximise the value for money in all transactions
  6. maintaining confidentiality at all times in dealings with service providers
  7. declining gifts, gratuities or any other benefit which may, or could be deemed to, influence equity or impartiality
  8. not disclosing the bid of one service provider to any other provider to play service providers off against one another
  9. avoiding the purchase of dumped goods.
Encouraging open and effective competition Ensuring that the procurement process is impartial, open and focused on encouraging competitive offers Ensuring an open and effective procurement process by:
  1. putting transparent, open purchasing procedures in place
  2. ensuring the market is adequately tested by seeking an appropriate number of quotations or calling for public tenders
  3. avoiding use of biased or proprietary specifications
  4. if requested, de-briefing unsuccessful providers
  5. treating all service providers consistently and equitably.
Enhancing opportunities for local business Where local capacity exists, actively seeking to engage the local market and encourage its participation in tender and quotation processes.
  1. actively seeking quotes from local businesses
  2. where local capability exists, ensuring that the discretionary elements of specifications do not prevent local businesses from competing.

Enhancing opportunities for local business does not mean giving preferential treatment to local service providers.