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, 196 KB) 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).

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
to buy ICT goods and services.

Read more about how to create an ICT contract. 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). The General Contract Conditions may be suitable if the Basic Purchasing Conditions are not. Where changes are required to either of these conditions, you should seek legal advice.