NSWIn ForceAct
Local Government Act 1993
55Requirements for tendering
Start here
Get a plain-English read of 55
Turn the raw legal text into a practical explanation grounded in Local Government Act 1993.
#### 55 Requirements for tendering
55 Requirements for tendering
> > (1) A council must invite tenders before entering into any of the following contracts—
> >
> > > (a) a contract to carry out work that, by or under any Act, is directed or authorised to be carried out by the council,
> >
> > > (b) a contract to carry out work that, under some other contract, the council has undertaken to carry out for some other person or body,
> >
> > > (c) a contract to perform a service or to provide facilities that, by or under any Act, is directed or authorised to be performed or provided by the council,
> >
> > > (d) a contract to perform a service or to provide facilities that, under some other contract, the council has undertaken to perform or provide for some other body,
> >
> > > (e) a contract for the provision of goods or materials to the council (whether by sale, lease or otherwise),
> >
> > > (f) a contract for the provision of services to the council (other than a contract for the provision of banking, borrowing or investment services),
> >
> > > (g) a contract for the disposal of property of the council,
> >
> > > (h) a contract requiring the payment of instalments by or to the council over a period of 2 or more years,
> >
> > > (i) any other contract, or any contract of a class, prescribed by the regulations.
>
> > (2) Tenders are to be invited, and invitations to tender are to be made, by public notice and in accordance with any provisions prescribed by the regulations.
>
> > (2A) Nothing in this section prevents a council from tendering for any work, service or facility for which it has invited tenders.
>
> > (3) This section does not apply to the following contracts—
> >
> > > (a) subject to the regulations, a contract for the purchase of goods, materials or services specified by a person prescribed by the regulations made with another person so specified, during a period so specified and, if a rate is so specified, at a rate not exceeding the rate so specified,
> >
> > > (b) a contract entered into by a council with the Crown (whether in right of the Commonwealth, New South Wales or any other State or a Territory), a Minister of the Crown or a statutory body representing the Crown,
> >
> > > (c) a contract entered into by a council with another council,
> >
> > > (d) a contract for the purchase or sale by a council of land,
> >
> > > (e) a contract for the leasing or licensing of land by the council, other than the leasing or licensing of community land for a term exceeding 5 years to a body that is not a non-profit organisation (see section 46A),
> >
> > > (f) a contract for purchase or sale by a council at public auction,
> >
> > > (g) a contract for the purchase of goods, materials or services specified by the NSW Procurement Board or the Department of Administrative Services of the Commonwealth, made with a person so specified, during a period so specified and, if a rate is so specified, at a rate not exceeding the rate so specified,
> >
> > > (h) a contract for the employment of a person as an employee of the council,
> >
> > > (i) a contract where, because of extenuating circumstances, remoteness of locality or the unavailability of competitive or reliable tenderers, a council decides by resolution (which states the reasons for the decision) that a satisfactory result would not be achieved by inviting tenders,
> >
> > > (j) contract for which, because of provisions made by or under another Act, a council is exempt from the requirement to invite a tender,
> >
> > > (k) a contract made in a case of emergency,
> >
> > > (l) a contract to enter into a public-private partnership,
> >
> > > (m) if a council has entered into a public-private partnership—a contract entered into by the council for the purposes of carrying out a project under the public-private partnership (but only to the extent that the contract is part of the project that has been assessed or reviewed under Part 6 of Chapter 12),
> >
> > > (n) a contract involving an estimated expenditure or receipt of an amount of—
> > >
> > > > (i) less than $250,000 or another amount as may be prescribed by the regulations, or
> > >
> > > > (ii) less than $150,000 or another amount as may be prescribed by the regulations for a contract involving the provision of services where those services are, at the time of entering the contract, being provided by employees of the council,
> >
> > > (o) a contract that is an environmental upgrade agreement (within the meaning of Part 2A),
> >
> > > (p) a contract or arrangement between a council and the Electoral Commissioner for the Electoral Commissioner to administer the council’s elections, council polls and constitutional referendums,
> >
> > > (q) a contract made with a person or body approved as a disability employment organisation under the [Public Works and Procurement Act 1912](/view/html/inforce/current/act-1912-045) for the purchase of goods or services in relation to which the person or body is so approved.
> > >
> > > Note.
> > >
> > > Despite the person or body being approved under the [Public Works and Procurement Act 1912](/view/html/inforce/current/act-1912-045), that Act does not otherwise apply to the procurement of goods and services by or for a council.
>
> > (4) A council that invites tenders from selected persons only is taken to comply with the requirements of this section if those persons are selected—
> >
> > > (a) from persons who have responded to a public advertisement for expressions of interest in the particular contract for which tenders are being invited, or
> >
> > > (b) from persons who have responded to a public advertisement for recognition as recognised contractors with respect to contracts of the same kind as that for which tenders are being invited.
>
> > (5)–(7) (Repealed)
>
> **s 55:** Am 1994 No 44, Sch 2 (4); 2000 No 53, Sch 1.15 \[2\]; 2000 No 112, Sch 3 \[8\] \[9\]; 2003 No 8, Sch 1 \[1\]; 2004 No 113, Sch 1 \[2\] (am 2005 No 59, Sch 2.2 \[2\]); 2005 No 64, Sch 1.16 \[1\]; 2007 No 72, Sch 1 \[1\] \[2\]; 2010 No 110, Sch 1 \[2\]; 2011 No 24, Sch 1 \[1\]; 2011 No 27, Sch 2.26 \[1\]; 2012 No 43, Sch 3.4; 2019 No 6, Sch 1 \[1\]–\[3\].