Councillor Jeff Whitton will put forward a motion at the May 12 meeting to write to NSW Premier Gladys Berejiklian and Minister for Local Government Shelley Hancock to ask for policy guidelines to be relaxed to allow the council to award all works "where appropriate" to suppliers based in the area.

"We have a procurement policy which gives local businesses 2 per cent, up to 5 per cent [discount], but we want to have a look at that now," he said.

"It's an opportunity for money to stay within the community through paying wages and it will come back to the council in rates."

Cr Whitton said the plan would dispense with the traditional tender process and make decisions based on companies' skills and availability, although the council would still expect contractors to be competitive.

"At the end of the day, it comes down to common sense and business ethics," he said.

He said the move would act as a stimulus program and allow the council to share projects between multiple companies at a time, some they might not ordinarily work with.

"For the simple fact that they're in mining - but they're some of the biggest companies in Australia, if not the southern hemisphere and I'm sure some of those organisations will be looking for work," he said.