Local Government Act Requirements

The requirement for councils to tender for certain contracts is contained in Section 55 of the Local Government Act 1993.

Section 55(1) requires councils to invite tenders before entering into the following contracts:

• A contract to carry out any work directed or authorised by or under any Act to be carried out by the council;
• A contract to perform a service or to provide facilities directed or authorised by or under any Act to be performed or provided by the council;
• A contract to provide goods or material to the council;
• A contract for the disposal of property of the council;
• A contract requiring the payment of instalments by or to the council over a period of two or more years.

Section 55(3) provides that section 55 does not apply to the following contracts:

• Contracts with the Crown or with another council;
• Contracts for purchase, sale or lease of land by a council;
• Contracts for purchase or sale by a council at a public auction;
• Contracts for the purchase of goods, materials or services specified by the State Contracts Control Board or the Department of Administrative Services of the Commonwealth;
• Contracts for employment of persons;
• Contracts in extenuating circumstances or where remoteness of locality or unavailability of tenderers is an issue;
• Contracts exempted due to provisions in another Act;
• Contracts made in an emergency;
• Contracts below $50,000 or other prescribed amount. 

Section 55(2) requires that invitations to tender be made by public notice and in accordance with the regulations. Section 55(4) provides for councils to use selective tendering.