Councils are bound by specific legislation that demands
transparency in contracting, with a view to preventing collusion,
corruption, nepotism and paying above market prices. Getting it
wrong can lead the Council and responsible officer open to public
complaints and court action, not to mention a referral to ICAC. In
this article we discuss the legislation, what you must do to
comply, and how to avoid common pitfalls.
Local Government Act 1993
Section 55 lists the contracts for which council must invite
tenders. The most frequent are for the provision of:
- goods or materials (by sale, lease or otherwise)
- services (other than a contract for banking, borrowing or
investment services)