When to use Basic Purchasing Conditions
When buying general goods and services, there a few different contract templates you could use.
This guide will help you decide whether the Basic Purchasing Conditions (PDF 109KB) are suitable for what you want to do.
Use for contracts:
- that are routine low-value and low-risk (e.g. buying products/services that are standard, commodity based, or have known or established specifications or scope)
- for products/services with no, or limited or easily accommodated customisation
- where there are few or no risks associated with moving to a new supplier
- where if the supplier defaults (e.g. if the goods/services are faulty), then the customer will get a refund, or have the goods/services re-supplied. (The supplier’s liability is limited to 1.5 times the value of the contract)
- where it’s sufficient to licence intellectual property (IP) rights for the goods/services. (The customer doesn't need to own the IP).
Don’t use for contracts:
- for professional services where advice is being provided
- for products/services where significant customisation is needed
- where the supplier has access to confidential, sensitive or personal information
- where the customer is concerned about changing to a different supplier
- where it is likely the customer would suffer damages/losses worth more than 1.5 times the contract value, if the supplier defaults
- for ICT goods or services
- where the customer must own the intellectual property rights of the goods/services
- for any building or construction works
- for any interest in land or property
- that are not low-risk.
The General Contract Conditions may be suitable if the Basic Purchasing Conditions are not.
Some agencies might limit the use of Basic Purchasing Conditions based on the value of what you’re buying (e.g. <$25,000).
Changing the Basic Purchasing Conditions is not recommended (unless the change is very minor). If you think you need to make a lot of changes, use the General Contract Conditions instead