Types of government contracts

About this guide

This guide provides an overview of the types of contracts used by the South Australian Government when buying goods and services.

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South Australian Government agencies use different contracts when buying goods and services. These contracts are designed to be simple, fair and consistent across government, making it easier for businesses to understand their obligations and work with agencies. The type of contract used will depend on the nature, value and risk of the work, but many are standardised and commonly used across agencies.

What types of contracts do agencies use?

Government uses a range of standard contract templates. The contract used will depend on the nature, value and risk of the procurement.

  • The Standard Goods and Services Agreement is the most common contract for low/medium risk goods and services.

    The Standard Not-For-Profit (NFP) Funded Services Agreement has been developed to simplify and standardise the contracting process for these organisations.

    These agreements consist of the following sections:

    • Execution Page - where supplier and government representatives sign the contract.
    • Agreement details (i.e. the variable content of the contract) - key information about the agreement, including important dates, deliverables, milestones, and payment arrangements.
    • Standard terms and conditions - the contractual terms and conditions that apply to the contract.
    • Glossary of defined terms - definitions of terms used throughout the contract.
    • Special conditions– additional terms specific to the agreement that are not covered by the standard terms and conditions.
    • Specifications – detailed requirements and expectations for the goods or services to be delivered.
    • Pricing and payment details – payment arrangements, including how and when payments will be made.

  • The Standard Purchase Order Terms and Conditions may be used for low value, low risk purchases.

  • The Minor Works Agreement is commonly used for low-risk construction projects.

  • All civil, maintenance and building projects generally use contract documents that have been developed by the Department for Infrastructure and Transport.

    These are available on Department for Infrastructure and Transport Contractor Site.

Centralised arrangements

A centralised arrangement is a whole of government contract established for commonly purchased goods or services. It allows agencies to buy from pre-approved suppliers under agreed terms and pricing, helping agencies buy common goods and services efficiently and consistently.

Centralised arrangements can make it easier for businesses to work with government by:

  • standardising how government buys
  • reducing the cost of doing business with government
  • simplifying terms and conditions.

There are two main types of centralised arrangements:

  • Single supplier contracts – allow all agencies to buy directly from one contracted supplier
  • Panel arrangements - allow agencies to buy from a group of selected suppliers under agreed terms and conditions (called a standing offer). Some panels may operate as pre-qualification lists for future tender opportunities.

Arrangements may be:

  • Open – new suppliers can apply to join during the contract period
  • Closed - new suppliers cannot join during the contract period (although some arrangements may reopen in limited circumstances).

Some centralised arrangements must be used by government agencies, while others are optional.

Supporting resources

Explore additional resources and guidance to learn more about the types of contracts used by the
South Australian Government.

Standard goods and services agreement

Used for low to medium risk procurement of goods and services across government.

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Standard not-for-profit (NFP) funded services agreement

Used when funding not-for-profit organisations to deliver services under a standardised agreement.

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Standard purchase order terms and conditions

Used when funding not-for-profit organisations to deliver services under a standardised agreement.

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Standard minor works agreement

Used for low risk construction and minor works projects.

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Frequently asked questions

  • A contract is a legally binding agreement between a public authority and a supplier that sets out the rights and obligations of each party. It will typically describe the goods, services or works to be provided, the basis for pricing and payment, performance requirements, and the terms and conditions that apply.

    Contracts can be established in different ways depending on the procurement requirement.

    Some contracts involve a commitment by the public authority to purchase a specific quantity or scope of goods or services. Other contracts, such as standing offers, establish the terms and conditions under which future work may be requested but do not guarantee that any work will be awarded.

    Where a standing offer is established, a separate order, work order, purchase order, statement of work or other approved ordering mechanism may be required before an obligation arises for the supplier to deliver services and for the public authority to pay for those services.

Related resources

Explore related resources to learn more about procurement and working with the
South Australian Government.

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