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Topic 1: Buy Local Policy

Policy objectives

  • Give Western Australian businesses greater access to government projects
  • Prioritise local and regional suppliers so the economic benefits stay in WA communities
  • Encourage regional job creation and boost the capacity of local small and medium enterprises (SMEs)
  • Strengthen local content by supporting local sourcing and reducing imported content
  • Make sure government procurement drives social outcomes, like supporting businesses that employ people with disability

Refer to Buy Local Policy for more information

 

Eligible projects

The Buy Local Policy applies to all WA state government public authorities therefore meaning all government funded construction and civil projects are eligible.

 

Tender preferences

The Buy Local Policy helps regional businesses compete by giving them advantages when government agencies evaluate tenders. These advantages come in two main forms, price preference and regional content preference.

Price preference

  • Western Australian suppliers may get a scoring advantage if they meet local and/or regional criteria
  • This advantage makes it easier for regional businesses to compete against metro-based suppliers
  • It’s only applied if the supplier can demonstrate they have the ability and resources to deliver the required goods or services

Regional business preference

  • Eligible regional businesses may have their tendered price scored as if it were lower
  • Up to a maximum of 5% reduction
  • To qualify, they must meet the local/regional business criteria

Regional content preference

  • Contractors may claim a scoring advantage for utilising local or regional subcontractors or suppliers

Imported content impost

  • If a tender includes goods or services imported from outside Australia or New Zealand, the cost of that portion may be treated as higher in the evaluation
  • This reduces the score for non-local content and favors local suppliers

Note

The policy focuses on creating better opportunities for local and regional suppliers rather than setting exact quotas or percentages

 

Key terms

Understanding key terms within the Buy Local Policy is essential for meeting its requirements. These definitions explain the general key terms and concepts mentioned throughout the policy and provide the understanding of expectations and how compliance will be assessed.

SME 

A business that is small or medium in size. Usually based on the number of employees or annual turnover. The policy aims to create more opportunities for SMEs across Western Australia.

Regional capability

The ability of a regional business to deliver the required goods or services locally, using local staff, equipment and knowledge.

Regional content

Work completed in the region, including labour, materials, suppliers and subcontractors. More regional content means more benefits to local communities.

Local supply chain

The network of WA-based suppliers and subcontractors that contribute to delivering a project. Agencies want tenders that use strong local supply chains.

Value for money

Government agencies must make purchasing decisions that deliver the best overall outcome, not just the cheapest price. Local economic benefits are part of this assessment.

Implementation agreement

The signed agreement where the Department confirms how the project will comply the Buy Local Policy. Contractors are required to assist the Department to meet the commitments set out in the Implementation Agreement.

 

Reporting

Reporting responsibilities are shared between head contractors and subcontractors, with each required to complete specific tasks to demonstrate compliance and track progress under the Buy Local Policy.

The Head Contractors must:

  • Submit monthly reports or declarations showing:
    • How much local/regional content was used
    • How regional suppliers were engaged

Subcontractors must:

  • Comply with the targets set out in their subcontracts
  • Provide data to the head contractor in their monthly progress report

 

Evidence

Evidence is required to substantiate Buy Local claims made during tendering and delivery, including price preference, regional business preference, and regional content preference.

Price preference

Businesses that satisfy all of the following:

  • Western Australian contractor or supplier capable of delivering the goods or services
  • Demonstrate the skills, experience and resources needed to complete the contract successfully
  • Prove it has the capacity and capability to perform the work locally

  • Businesses outside of Western Australia
  • Businesses who can not perform the work locally

  • Business address confirmation – rates, lease agreement, utilities bill or similar
  • Capability statement or case studies – showing the skills, experience and resources needed to complete the contract locally

  • Document showing the address of the office in the regional area
  • Capability & capacity – past projects and key personnel
  • Declarations of imported content

Regional business preference

Businesses that satisfy all of the following:

  • Maintain a permanent operational office within the “prescribed distance” from the contract point of delivery
  • The office must be resourced by at least one person who lives in the region
  • The business address must match how it presents itself publicly
  • Operating from that office for at least six months before the tender was released
  • Intend to manage and deliver the majority of contract work from the regional office (not simply subcontracting everything from outside the region)

  • Businesses outside of the “prescribed distance” from the contract point of delivery
  • Businesses without a permanent regional office

  • Business address confirmation – rates, lease agreement, utilities bill or similar
  • Employee records – showing at least one person works from the regional office

  • Document showing the address of the office in the regional area
  • Employee records – worker name, job title, job location, payroll data

Regional content preference criteria

Business that satisfy all of the following:

  • Engage subcontractors, suppliers or workforce based in the local or regional area
  • The local/regional content must contribute meaningfully to the delivery of the project (not just minor inputs)
  • Provide evidence of the estimated proportion of work performed by local/regional subcontractors or suppliers

  • Businesses who have a supply chain or workforce outside of the “prescribed distance” from the contract point of delivery
  • Businesses without meaningful scope of works

  • Subcontracts or  supply agreements
  • Scope of works – showing meaningful contribution to the project
  • Business address confirmation – rates, lease agreement, utilities bill or similar
  • Employee records – showing they are based in the local or regional area

  • Document showing the address of the office in the regional area
  • Employee records – worker name, job title, job location, role, payroll data

 

Non-compliance

Failure to comply with the Buy Local Policy can create significant risks for head contractors and Keller. Understanding these risks is vital to protect compliance and long-term performance.

Risks

The section below outlines the specific consequences the head contractor and Keller may face.

  • Contract breach penalties – defined by contract but may include withholding security or retention and damages
  • Damage to reputational with both clients and community
  • Jeopardise ability to win future contracts off previous performance
  • Can trigger audits, corrective actions or sanctions

  • Contract breach penalties – defined by contract but may include withholding security or retention and damages
  • Damage to reputational with both clients and community
  • Jeopardise ability to win future contracts off previous performance

 

Project process

Keller follows a structured process to meet the requirements of the Buy Local Policy across every phase of a project. From tender through to project close‑out, each stage includes clear actions to ensure compliance, demonstrate outcomes for regional business, social benefit suppliers and priority groups.

Getting it right upfront

There is a suite of documents to provide detailed guidance on how to deliver each stage of the project effectively:

  • Project Checklist
  • FAQ & Troubleshooting Guide

The State Government also have guides to assist you to comply with the Policy:

During the tender stage we need to demonstrate our capability and track record to secure the job. We review all documentation for references to the Buy Local Policy and identify how we can contribute to the price preference and regional content preferences. Where targets are not achievable, we highlight these clearly and propose alternative ways we can add value.

1. Check if the Policy forms part of the tender documentation

  • A key indicator is if the developer is a WA government department (eg. Development WA, Department of Health, Department of Education etc)
  • Search (Ctrl F) the tender documents for key words such as regional, disability enterprises, Aboriginal business

2. Can we meet the contractual clauses asking us to contribute to the price and regional content preferences?

  • Liaise with the delivery team to assess our capability to deliver the required outcomes
  • Identify risks and opportunities associated with contributing to these requirements using the Capability Assessment Template

3. Showcase our previous performance for Aboriginal procurement and local and small businesses

  • Submit the Past Performance Template with the tender submission

4. Provide a written statement of how you will contribute the preferences

  • Complete the Social Procurement Commitments Template with project‑specific opportunities for Aboriginal business and local and small businesses procurement
  • Flag any targets we cannot achieve and highlight any additional value we can provide. The Social Procurement Commitments Template has prompts to help identify risks and opportunities
  • Submit the completed Social Procurement Commitments Template with the tender submission
  • In some instances, the tender may require commitments to be written directly into Response Schedules. If this is the case, use the Social Procurement Commitments Template as guidance when drafting responses

5. Liaise with the Agency or head contractor throughout the tender phase to ensure clear understanding of requirements

  • Document any exclusions or negotiated amendments to the Policy requirements

The contract stage is where tender commitments are formalised. It ensures that negotiated preferences are accurately captured, achievable obligations are confirmed, and any agreed value‑adds are included before project delivery begins.

1. Liaise with Tender team to ensure the contract reflects what was agreed during the tender phase

  • If not, request for the contract to be updated to reflect what was negotiated during the tender
  • Ensure any requirements we cannot achieve are not in the contract

2. Liaise with Project Delivery team to ensure those commitments can still be met and ensure any ways we can add value are in the contract

3. Document any exclusions or negotiated amendments

The planning stage ensures that the preferences are embedded into project delivery from the outset. It sets clear responsibilities, establishes processes for compliance, and prepares the team to collect and report accurate data throughout the project lifecycle.

1. Nominate a project lead. This person will be responsible for:

  • Conducting a handover with the Contract Negotiation team to understand the targets
  • Ensuring the contractual targets are met throughout the project
  • Reporting project outcomes to the head contractor in monthly progress claims

2. Write a project plan to ensure smooth compliance throughout project delivery and clarify roles and responsibilities

  • Complete the Project Plan Template outlining the actions required to meet the preferences and reporting methodology
  • Use the Social Procurement Planning Guide to identify sourcing to meet the procurement requirements
  • The Project Plan is an internal working document used to assist the project team in delivering a compliant project. It is not shared with the head contractor or Agency

3. Set up data collection folders and templates

  • Use the Folder Structure Guide to implement the data collection process in preparation for the project delivery stage

4. Train the project team on the Policy and its requirements

The delivery stage is where plans are put into action. It focuses on meeting the procurment targets, collecting accurate evidence and reporting progress. Strong delivery ensures compliance with the Policy and demonstrates tangible outcomes.

1. Follow the Project Plan

  • The project lead is responsible for ensuring the project team follows the Plan
  • Deliver procurement commitments as outlined in the Plan

2. Collect evidence

  • Record procurement spend achieved using the Social Procurement Tracker
  • Include subcontractor contributions

3. Report progress

  • Submit the Monthly Progress Report Template to the head contractor

The close out stage captures the results of the project and ensures lessons are carried forward. It focuses on reporting achievements, documenting procurement outcomes, and refining processes so future projects can build on what has been learned.

1. Provide the head contractor with a final report to showcase project outcomes

  • Use the Project Completion Report Template to summarise compliance with preferences

2. Draft a case study for use in future tenders

  • Refer to the Case Study Template to highlight key achievements and demonstrate capability in meeting procurement targets

3. Document achievements and lessons learned

  • Use the Project Reflection Template to record successes, challenges and areas for improvement

4. Reflect and adjust

  • Apply insights gained to strengthen procurement strategies in upcoming projects
  • Adjust any templates or processes to improve efficiencies on future projects

 

Not intended as legal advice. Read full disclaimer.