Construction procurement guidelines
The construction procurement guidelines set out the standards of good practice for government agencies to apply to their construction projects.
Updates to construction guidance
We’re updating some of our guidance to align with the new Government Procurement Rules. We’ll let you know when it’s published.
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).
Rule 9: Planning for new construction works
Check whether the Rules are mandatory for your agency
Mandated and eligible agencies
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.
How to apply the guidelines
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.
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Summary of standards of good practice [PDF, 163 KB]
Checklist of the standards of good practice taken from the twelve focus areas of the guidelines.
Structure of the guidelines
‘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.
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Setting up for project success [PDF, 392 KB]
Guidance on important factors which you should consider to ensuring that each project is a success for all parties, and represents good public value.
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’.
Matching capability to complexity
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Tool XLSX, 14 KB
Delivery Environment Complexity Analytic (DECA) tool
Used to identify challenges, complexities and risks to project delivery.
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Tool XLSX, 11 KB
Asset manager capability assessment tool
For the asset manager to identify key operational constraints and/or requirements that will need to be addressed in the project.
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Tool XLSX, 12 KB
Client capability assessment tool
For the client to identify if the capability exists to deliver the project.
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Tool XLSX, 12 KB
Sponsor capability assessment tool
For the sponsor to identify if capability exists to keep the project viable and aligned to the strategic objectives of the organisation.
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Tool XLSX, 12 KB
Market capability assessment tool
Used to assess the capability and appetite of the market to deliver the project.
Developing your construction procurement strategy
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Guide PDF, 102 KB
Panel of suppliers - Information sheet
Overview of circumstances in which a panel of suppliers is used, potential benefits and things to watch out for.
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Tool XLSX, 37 KB
Delivery model evaluation tool
Used to support the evaluation of delivery model option.
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Guide PDF, 170 KB
Standard types of construction contract - Information sheet
Details of standard industry forms of contract that are in common use in New Zealand.
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Guide PDF, 61 KB
Measurement contract - Information sheet
Overview of the measurement (measure and value) form of contract pricing.
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Guide PDF, 236 KB
Cost reimbursable contract - Information sheet
Overview of the cost reimbursable form of contract pricing.
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Guide PDF, 60 KB
Target cost pricing - Information sheet
Introduction to the target cost form of contract pricing.
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Guide PDF, 86 KB
Guaranteed maximum price - Information sheet
Overview of the guaranteed maximum price mechanism (GMP) and highlights when a GMP may not be appropriate.
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Guide PDF, 65 KB
Lump sum contract - Information sheet
Overview of the lump sum pricing mechanism and cautions against excess use of provisional sums.
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Guide PDF, 298 KB
Public private partnerships (PPP) - Information sheet
Introduction to the public private partnership (PPP) delivery model.
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Guide PDF, 309 KB
Construction tendering - Quick reference
Summary of construction tendering principles.
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Guide PDF, 282 KB
Early contractor involvement (ECI) - Information sheet
Overview of the early contractor involvement (ECI) approach to contracting.
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Guide PDF, 245 KB
Alliance delivery model - Information sheet
Overview of the alliance delivery model, guidelines for use, potential benefits and things to watch out for.
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Guide PDF, 92 KB
Direct managed delivery model - Information sheet
Overview of the direct managed delivery model, guidelines for use, potential benefits and things to watch out for.
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Guide PDF, 109 KB
Package based delivery model - Information sheet
Overview of the package based delivery model, guidelines for use, potential benefits and things to watch out for.
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Guide PDF, 171 KB
Design and build delivery model - Information sheet
Overview of the design and build delivery model, guidelines for use, potential benefits and things to watch out for.
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Guide PDF, 111 KB
Traditional delivery model - Information sheet
Overview of traditional delivery model (design-bid-build), guidelines for use, potential benefits and things to watch out for.
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Guide PDF, 108 KB
Contract clauses - Quick reference
Summary of construction contract clause terminology and principles.
Market engagement
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Guide PDF, 675 KB
Market engagement
Provides an introduction to market engagement as part of construction procurement, and refers to further guidance from MBIE and the infrastructure transactions unit.
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Guide DOCX, 123 KB
New tender requirements for suppliers
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.
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Guide PDF, 82 KB
Sample construction skills and training questions - Information sheet
Examples of questions regarding construction skills and training.
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Guide PDF, 81 KB
Examples of key attributes related to skills development and training - Information sheet
Examples of positive and negative attributes related to construction skills and training.
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Guide PDF, 139 KB
Benefits of using wood in construction - Information sheet
Summary of the benefits of using wood in construction, provided by the Ministry for Primary Industries.
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Guide PDF, 340 KB
Use of woollen fibres, where practical and appropriate, in government buildings
Procurement construction guide on using woollen fibres in government buildings.
Due diligence
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Guide PDF, 793 KB
Due diligence in construction procurement
Provides guidance on undertaking due diligence on suppliers, focusing mainly on financial and commercial due diligence.
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Template DOCX, 48 KB
Financial and commercial due diligence
Used when undertaking contractor financial and commercial due diligence.
Acknowledgements
The guidelines have been made possible by the contributions of many individuals and a broad range of government agencies, industry bodies and construction companies. New Zealand Government Procurement would like to thank those who have generously given their time and expertise.