Fees

Supplier Fees

Local Buy is a profit-for-purpose organisation owned 100% by the LGAQ with all profits going back to support the work of Local Government. Local Buy charges an annual Supplier Verification Fee and a monthly Contract Management Fee which is payable on all work received through the relevant Arrangement to suppliers to ensure that this support of Local Government can continue.

As a supplier on the Local Buy LGA Arrangement, you gain access to a wide range of organisations actively seeking to purchase products and services. Opening new avenues for expanding your market reach and increasing your chances of success.

Being a pre-qualified supplier on the LGA Arrangement comes with several advantages. It facilitates a streamlined procurement process, saving valuable time and resources for both suppliers and councils. Additionally, it helps reduce tendering costs, leading to cost savings and improved efficiency.

Local Buy's fee model is beneficial because it allows us to provide whole of Local Government Arrangements and a fully funded procurement technology landscape at no cost to councils. By charging the Supplier Verification Fee and Contract Management Fee to suppliers, we ensure that both suppliers and buyers benefit from a streamlined procurement process.

Contract Management Fee

The purpose of the Contract Management Fee (CMF) is to cover the setup and ongoing maintenance of contracts that are specifically designed for Council use. This fee encompasses a range of administrative tasks associated with the operation of Local Buy, which includes managing all of our Arrangements and a vast network of suppliers. One of the primary objectives of the CMF is to ensure that suppliers are correctly established in the relevant databases, thereby enhancing the accuracy and efficiency of their profiles for councils and other buyers to view. Local Buy strives to maintain a low CMF to minimise the overall cost of doing business with councils, while simultaneously relieving suppliers from the burden of participating in a tender process. Local Buy aims to facilitate smooth and cost-effective transactions between suppliers and councils by keeping the fee as low as possible. A Contract Management Fee is payable on all work won through the relevant Local Buy Arrangement.

The Contract Management Fee varies per Arrangement (from 0.75% to 2%) and can be found within the tender documents in the General Conditions of Contract document within Schedule A – Contract Details.

The contract management fee is only payable on work that you have been awarded through a Local Buy Arrangement.

Supplier Verification Fee 

Become a pre-qualified supplier 

The Supplier Verification Fee (SVF) is an annual charge to support the administration and compliance of Local Buy’s large network of pre-qualified suppliers. It supports the adherence to insurances, workplace health & safety, environmental, and quality requirements essential for a Local Buy LGA Arrangement. 

Part of this fee includes the provision of a Verification Statement, which is formal recognition of the work you undertook to become a Local Buy pre-qualified supplier. 

Fee Structure (per Arrangement) 

  • Initial Appointment: $500 (ex GST) 
  • Annual Renewal: $250 (ex GST) 

Fee Exemptions  

Local Buy is committed to supporting small Queensland businesses, social enterprises, charities and Indigenous businesses to help grow a diverse supply chain at a local level. 

To support these businesses Local Buy has agreed to waive the Supplier Verification Fee (SVF) for certain businesses. To be eligible for a SVF exemption, suppliers must meet one of the following criteria: 

Exemption Criteria: 

  • Have an aggregated revenue of less than $500,000 per annum. 

Or be a: 

  • Sole Trader 
  • Registered charity
  • Indigenous businesses (registered on Supply Nation or Black Business Finder)
  • Registered social enterprise (with Social Traders) 

The SVF exemption is only applicable to small businesses with a registered head office in Queensland, Tasmania or the Northern Territory. Proof of eligibility will be required. 

Local Buy will consider exceptional circumstances and any additional documentation provided by the supplier as part of its application for exemption. At its sole discretion, Local Buy may permit a supplier to qualify for an SVF exemption based on these exceptional circumstances. 

Local Buy reserves the right to verify the information submitted in a supplier’s application through both internal and external methods. Furthermore, Local Buy reserves the right to request additional information from a supplier at any time until it is satisfied that the supplier meets the required criteria to Local Buy's satisfaction. 

For more information on how to apply for the SVF exemption, please contact enquiry@localbuy.net.au

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