The construction procurement guidelines set out the standards of good practice for government agencies to apply to their construction projects.
Government has implemented the first action from the Accord's Construction Sector Response Plan and issued guidance and expectations to agencies on managing contracts during the shutdown.
The construction procurement guidelines support government agencies to improve the quality and consistency of their construction procurement practices.
Agencies that are mandated to apply the Government Procurement Rules must apply the practices set out in these guidelines, where appropriate, for new construction works with an estimated value of $9 million or more (excluding GST).
Check whether the Rules are mandatory for your agency
For all other projects, you’re encouraged to use your judgement to apply the guidelines in a way that is appropriate to the characteristics of your project.
To support agencies, the guidelines identify specific standards of good practice which agencies must apply as part of their construction procurement processes.
The following document contains a checklist of the standards of good practice taken from the 12 focus areas of the guidelines. For more information about each practice refer to the focus area to which it relates.
Where another party (such as a consultant) is supporting you with your project, you must ensure the other party applies the guidelines on your behalf.
Where the standards of good practices have not been followed, the rationale for this must be recorded, for example as part of your procurement strategy or plan.
‘Setting up for project success’ provides guidance on important factors to consider to ensure that each project is a success for all parties, and represents good public value. It includes key questions to ask to determine whether your project is set up for success.
The rest of this page is made up of the guidelines’ 12 focus areas, which cover specific construction procurement topics, and include links to tools and templates.
The guidelines are intended to supplement MBIE’s ‘Guide to procurement’ and must be read together with them and the ‘Government Procurement Rules’.
Used to identify challenges, complexities and risks to project delivery.
For the asset manager to identify key operational constraints and/or requirements that will need to be addressed in the project.
For the client to identify if the capability exists to deliver the project.
For the sponsor to identify if capability exists to keep the project viable and aligned to the strategic objectives of the organisation.
Used to assess the capability and appetite of the market to deliver the project.
Provides guidance on assessing delivery model options to identifying a delivery model that accommodates a project’s characteristics, risks and circumstances, and planning the project's approach to market, pricing mechanism and contract type.
Summary of construction tendering principles.
Summary of construction contract clause terminology and principles.
Overview of traditional delivery model (design-bid-build), guidelines for use, potential benefits and things to watch out for.
Overview of the design and build delivery model, guidelines for use, potential benefits and things to watch out for.
Overview of the package based delivery model, guidelines for use, potential benefits and things to watch out for.
Overview of the direct managed delivery model, guidelines for use, potential benefits and things to watch out for.
Overview of the alliance delivery model, guidelines for use, potential benefits and things to watch out for.
Overview of the early contractor involvement (ECI) approach to contracting.
Overview of circumstances in which a panel of suppliers is used, potential benefits and things to watch out for.
Introduction to the public private partnership (PPP) delivery model.
Overview of the lump sum pricing mechanism and cautions against excess use of provisional sums.
Overview of the guaranteed maximum price mechanism (GMP) and highlights when a GMP may not be appropriate.
Introduction to the target cost form of contract pricing.
Overview of the cost reimbursable form of contract pricing.
Overview of the measurement (measure and value) form of contract pricing.
Details of standard industry forms of contract that are in common use in New Zealand.
Used to support the evaluation of delivery model option.
Provides an introduction to market engagement as part of construction procurement, and refers to further guidance from MBIE and the infrastructure transactions unit.
Provides agencies with a summary of government priorities for the construction sector, namely the Construction Sector Accord and broader outcomes. It can be inserted directly into agency tender documents, so that suppliers are given the opportunity to demonstrate how they intend to align with these priorities in their tender response.
Examples of questions regarding construction skills and training.
Examples of positive and negative attributes related to construction skills and training.
Summary of the benefits of using wood in construction, provided by the Ministry for Primary Industries.
Summary of the benefits of using wool in construction, provided by the Ministry for Primary Industries.
Financial and commercial due diligence template will be available soon.
The guidelines have been made possible by the contributions of many individuals and a broad range of government agencies, industry bodies and construction companies. NZGP would like to thank those who have generously given their time and expertise.