Governance Framework

DTF's modernised whole-of-government framework for procuring infrastructure. Published September 2023 (ISBN 978-1-925551-96-9). Replaces the older procurement model guidance with a simplified, consistent approach across three procurement categories and eight models. Key innovations: more tailored and flexible risk allocations in contracts, increased industry collaboration, and improved delivery efficiencies.

This framework operates in the construction space — it is entirely separate from the VGPB goods and services supply policies. The key branching question is: is it construction or goods/services?

Project Lifecycle

1. Business Case → 2. Procurement → 3. Delivery

Across all three phases: - Ministerial Directions and Instructions for Public Construction (mandatory) - Procurement – Investment Lifecycle HVHR Guideline (guidance)

Three Procurement Categories and Eight Models

Whole of Life

Models that drive innovation through long-term service delivery focus.

Model	Description
Partnerships Victoria	PPPs with project finance — three sub-types below
— Precinct Partnerships	Housing/precinct development; state + private investment
— Community Partnerships	Social infrastructure (hospitals, schools, justice); private delivers/manages
— Economic Partnerships	Transport/utilities; leverage revenue/user payments
Bundled	Whole-of-life activities as a package WITHOUT project finance

Lump Sum

Fixed price contracts — suit clearly scoped projects with few uncertainties.

Model	Description
Construct Only	Traditional construct-only contract
Design and Construct (D&C)	Design and build combined
Enhanced Design and Construct (EDC)	Modernised lump sum with targeted risk-sharing elements (new)

Cost Reimbursable

Flexible models for uncertain project circumstances (formerly "collaborative").

Model	Description
Incentivised Target Cost (ITC)	Target cost with incentive/pain-share
Managing Contractor	Contractor manages delivery under cost-reimbursable terms
Alliance	Collaborative alliance model

Supporting Documents

Each category is enabled with: (a) a procurement requirements document outlining mandatory government approval requirements and best practice expectations for HVHR projects; (b) a standard form contract and accompanying guidance for each model.

Procurement – Investment Lifecycle High Value High Risk (HVHR) Guideline
Cost Reimbursable Procurement Requirements
ITC standard deed and supporting guidance
EDC standard deed and supporting guidance
Harmonised project documents for Partnerships Victoria projects
Standard form contracts for small-medium lump sum projects (in development)

Relationship to Goods and Services

Is it construction?
  ├── YES → Infrastructure Procurement Framework
  │         ├── SD 4.2.4 + PDCMA Ministerial Directions
  │         └── 3 categories / 8 models
  └── NO  → VGPB Supply Policies (goods and services)
            ├── SD 4.2.1 + FMA Part 7A
            └── 5 policies / 18 mandatory requirements

Relationships

Mandated By

Standing Direction SD 4.2.4 Public construction procurement mandated via SD 4.2.4 and PDCMA Ministerial Directions Framework Partnerships Victoria PV is the Whole of Life procurement category within the infrastructure procurement framework

Relates To

Policy VGPB Policies Separate from VGPB — covers construction, VGPB covers goods and services Framework Partnerships Victoria Partnerships Victoria is one procurement category within the framework Framework Gateway / HVHR Gateway reviews provide assurance overlay for major infrastructure projects under this framework Framework Gateway / HVHR Gateway reviews are the assurance overlay for the infrastructure procurement framework Framework PV Requirements PV is the Whole of Life procurement category within the Victorian Infrastructure Procurement Framework Legislation PDCMA Infrastructure Procurement Framework includes construction delivery models governed by PDCMA Standing Direction Construction Directions Infrastructure Procurement Framework includes construction delivery models

Explore Victorian Governance Framework

Governance Framework

Infrastructure Procurement Framework

Requirements

Applies to

Conditions

Victorian Infrastructure Procurement Framework

Summary