VPRS 17110 Contract Book

Under the provision of the Local Government Act 1874 and the subsequent Local Government Acts and the Municipal Accounting Regulations, a local council could enter into contracts with individuals for execution of any municipal works or for the furnishing of any goods by giving a notice in a newspaper expressing the purpose of the contract and inviting tender.The requirement for the calling of tenders does not apply to a contract entered into by a municipality with another municipality, a government department, or a statutory authority.Every contract is required to specify the work to be done, the material to be furnished, the price to be paid for the same, and a completion date.The Council are required to keep Contract Registers to record particulars of all the municipal contracts which include:-contract number-name of the contract-description of work and account-successful tender-details of payments-extra, deduction and deposits madeContracts recorded in the register are to be included in a statement of contracts which is incorporated in the Annual Statement of Accounts.The Contract Register is a subsidiary accounting record linked to the summary account contracts in the general fund ledgers which shows the liability of the council for contract work. It is also an important source of reference for the municipal engineer who is required to issue certificates to the Council to the effect that progress payments to contractors are justified by the state of the works. The Register is an important part of the system of external checks on contract payments.The contract register is not held at Public Record Office Victoria. The contract book has been retained in the absence of the register in this case.