Project Development and Construction Management Act 1994

Summary

The PDCMA is the legislative authority for public construction procurement in Victoria. Part 4 (section 30) empowers the responsible Minister to set standards and issue written directions for public construction. This is the construction parallel to the FMA's role in goods/services procurement.

The Ministerial Directions for Public Construction Procurement cite s.30 as their issuing authority. Section 32(e) provides that directions may be incorporated by reference into the conditions of a construction contract.

The Two Legislative Tracks

Victorian procurement governance operates under two parallel legislative tracks:

"What am I buying?"
  ├── Goods / services / ICT / consultancy
  │     └── FMA 1994 → Part 7A → VGPB → Supply Policies
  │
  └── Construction works / construction services
        └── PDCMA 1994 → Part 4 s.30 → Ministerial Directions

Where the PDCMA Ministerial Directions are inconsistent with VGPB supply policies, the construction directions prevail for public construction procurement.

Both tracks are linked via Standing Directions 2018: - SD 4.2.1 → VGPB supply policies (goods/services) - SD 4.2.4 → PDCMA Ministerial Directions (construction)

Part 4 — Standards and Directions

Part 4 empowers the Minister to: - Set standards for public construction (s.30) - Issue written directions to agencies - Incorporate directions into contract conditions (s.32(e)) - Establish compliance requirements

The current instruments issued under this authority: - Ministerial Directions for Public Construction Procurement (1 Jul 2018, updated Jul 2023) - Instructions for Public Construction Procurement (1 Jul 2018, updated Jul 2023) - Non-mandatory Guidance for Public Construction Procurement

Key Definitions

• Public construction — any construction, maintenance, rehabilitation, alteration, extension or demolition of any improvements on land by, or on behalf of, departments and public bodies. Encompasses design and construction practices, tendering processes, project delivery, and contract administration.
• Does NOT include: grants, sponsorships, investments, asset sales, loans, goods for resale, statutory appointments, employee engagement, acquisitions from other government entities (except through competitive tender)

DTF publishes Defining public construction (Guidance 3b) to help practitioners determine when a procurement is public construction.

Broader Framework Context

The Ministerial Directions form part of Victoria's broader public governance, financial management and accountability framework. The DTF legislation and policy page sets out the full framework landscape for construction, including:

• Legislation: Audit Act 1994, FMA 1994, IBAC Act 2011, PDCMA 1994, PAA 2004
• Frameworks: AMAF, Social Procurement Framework, Value Creation and Capture Framework, HVHR Framework
• Policies: Partnerships Victoria, National Alliancing Policy, Market-Led Proposals Guideline
• Additional construction legislation: Building Act 1993, Building and Construction Industry Security of Payment Act 2002, Architects Act 1991, OHS Act 2004, Domestic Building Contracts Act 1995, Planning and Environment Act 1987, Heritage Act 1995

Where the PDCMA Ministerial Directions are inconsistent with VGPB supply policies, the Ministerial Directions prevail for public construction. The Accountable Officer of each Agency decides whether to align internal governance frameworks for procurement across both tracks.

Cross-References

• SD 4.2.4 requires agencies to apply the PDCMA Ministerial Directions
• Ministerial Directions for Public Construction Procurement — the actual mandatory directions
• Victorian Infrastructure Procurement Framework — includes construction delivery models