Contract management obligations
- You may have several obligations when managing contracts and suppliers, which you don’t necessarily have to report on.
- You have the obligation to make sure your suppliers comply with the Code of Conduct.
- You have special obligations when it comes to construction contracts concerning industrial relations, WHS and environmental and quality management.
- Learn more about how to manage contracts and access our resource hub.
Ensure compliance with Supplier Code of Conduct
When working with suppliers, you’re encouraged to foster good working relationships through performance-based incentives and management.
You must also make sure suppliers comply with the standards of behaviour we expect of them. This includes adhering to the Supplier Code of Conduct.
You must endeavour to make yourself aware of any adverse findings against current or prospective suppliers. You must also report these to the Procurement Board.
Read more about managing the supplier relationship.
Comply with industrial relations regulations
Both you and your suppliers must comply with any relevant industrial relations laws and regulations.
In any construction procurement, you must also make sure your suppliers comply with the NSW Industrial Relations Guidelines: Building and Construction Procurement.
These guidelines help ensure greater compliance, productivity, safety and freedom of association on building and construction projects.
You must also make sure construction suppliers comply with the Workplace Relations Management Plan whenever it applies.
Manage special obligations for construction contracts
Workplace Health and Safety (WHS)
On every construction project, you must review contractors’ WHS performance through the life of the contract. This includes compiling monthly WHS management reports and reporting any notifiable WHS incidents.
You must also:
- contracts under $1 million: review how suppliers are implementing their WHS Management Plan
- contracts over $1 million: agree and implement an audit schedule. This should include an audit within 3 months of the start of work on the project site and a minimum of 2 audits over the life of the project. You must make sure the supplier carries out any corrective or preventive actions identified during an audit within the agreed timeframe.
Environmental management
Over the life of any construction contract, you must regularly review whether suppliers are implementing their Environmental Management Plan, based on the contract’s risk profile.
All staff working on the project site must be inducted into the Environmental Management Plan and requirements for work on the site.
Quality management
You should conduct regular reviews, audits or inspections to determine whether suppliers are implementing adequate Quality, Management Systems Plans and Inspection Test Plans based on the contract’s risk profile.