In addition to the key updates outlined in our blog Supplier Code of Conduct: 2025 Key Updates, further information has been provided on the Buying for Victoria website about the new Supplier Code of Conduct (effective 1 April 2025). The updates include guidance for Agency Buyers and Suppliers.

Automatic Commitment to the Code

Suppliers will no longer be required to submit a Supplier Code of Conduct Commitment Letter as part of their tender.  However, templates issued by the Department of Government Services (DGS) indicate that there are a variety of ways in which tenderers can be asked about their commitment to the Code and their past compliance with the Code or similar ethical standards. The guidance for Agency Buyers states:

“The Supplier Code of Conduct commitment letter is no longer required from 1 April 2025. Suppliers will instead commit to the Code when entering into contracts with the new standard model clauses.”

The guidance for Suppliers explains that all tenderers that submit an offer, and the successful tenderer that enters into a contract, will be required to commit to compliance with the Code of Conduct:

The action of submitting an offer or signing a contract with the government indicates that a Supplier agrees:

• to meet the standards set out in the Code; and
• to comply with provisions relating to implementing and enforcing the Code.

The obligation to comply with the Code is intended to:

• strengthen the integrity of Suppliers’ businesses and reduce business risks; and
• place Suppliers in a better position to bid and win government contracts.”

While the commitment letter itself will no longer be required, departments and agencies should include the model clauses about the Code in their market invitation documents. The model clauses advise tenderers that, by submitting an offer, they are indicating their acceptance of the Code and that the Agency may make enquiries into the supplier’s compliance with the Code. The model clauses and updated Invitation to Supply documents are available here.

In the response schedules, tenderers may be asked to provide details on previous conduct of the tenderer that has not met the minimum standards set by the Supplier Code of Conduct or an obligation to a similar effect. They could also be asked about their ethical business practices in their supply chains and operations.

In assessing the Supplier’s response, the Organisation may obtain, and take into consideration, information about the Supplier’s current and prior compliance with the Supplier Code of Conduct, and any similar obligations to any agency or government.

Agencies are required to consider how responses in relation to the Code will be assessed. They have the option to assess the Code as a mandatory, weighted or a risk-assessed criterion.

Agencies will also be expected to conduct more due diligence before recommending a supplier.

Compliance with the Code

Suppliers must proactively notify government agencies of any breaches, adverse rulings, or enforceable undertakings related to the Code. Agencies are expected to consider compliance with the Code and any historic non-compliance.

The guidance for Suppliers states:

Suppliers must report non-compliance with the Code as set out in the relevant contract under which they provide goods and services or works. This includes notifying departments and agencies of:

• non-compliance or breaches of the Code; and
• any adverse rulings or enforceable undertakings related to conduct under the Code.”

Addressing Non-Compliance: New Remediation and Enforcement Measures

Agencies must take appropriate steps to actively address a Supplier’s non-compliance with the Code, based on the seriousness of the breach. Responses to any non-compliance can include a remediation plan and or suspension or termination:

• If a Supplier’s conduct does not meet the required standards set by the Code, the Supplier may be required to develop corrective action plans, which agencies will monitor.
• Serious breaches may result in contract termination or suspension, in consultation with procurement and legal teams.

These updates reflect the Victorian Government’s commitment to integrity, ethical business practices, and responsible procurement. Suppliers and agencies alike must be ready to adopt these new expectations ahead of the 1 April 2025 implementation date.

Resources

• Agency guidance for the Supplier Code of Conduct pdf (Buying for Victoria)
• Procurement – Supplier Code of Conduct pdf (Buying for Victoria)
• Supplier Code of Conduct: Transition (Buying for Victoria)
• Supplier Code of Conduct: 2025 Key Updates (CourtHeath blog)
• Supplier guidance for the Supplier Code of Conduct (Buying for Victoria)

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CourtHeath acknowledges the Traditional Aboriginal Owners of Country throughout Victoria and pays respect to Elders past and present, and to the ongoing living culture of Aboriginal people.

A participant in the UN Global Compact, CourtHeath seeks to raise awareness about the sustainable development goals and the principles of the Global Compact with business and government organisations in Victoria.

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