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Government Model Contracts

The New Zealand Ministry of Business, Innovation and Employment (MBIE) has developed a set of standard conditions of contract for routine government purchases. These conditions are called Government Model Contracts (GMCs).

 
Background

The 2nd Edition GMCs were launched by MBIE in October 2011, replacing the 1st Edition GMCs which were launched in July 2010.

The development and implementation of GMCs is part of the Government Procurement Reform Programme and has been mandated by a Cabinet Directive requiring MBIE to:

 “… create a standard, simple, plain English set of conditions of contract for common  goods and services to be used by all Public Service Departments and State Services.”

The GMCs are aimed at low-value, low-risk common goods and services. They have been designed as the default government contract. It is up to each agency using the GMCs to determine what constitutes low-value, low-risk common goods and services. This definition is subjective and will depend on the size of the agency and the scale and complexity of its procurement function.

Through the use of GMCs across the Public Service and State Services, Government aims to:

  • Provide simple, plain English contracts that are easy to use for both agencies and suppliers.
  • Provide a fairer balance of risk between buyer and supplier.
  • Standardise the treatment of legal risk in low-value, low-risk contracts.
  • Reduce the need for negotiations and legal advice in routine purchases.
  • Promote consistent practice across government.
  • Promote process efficiencies in high-volume, low-value transactional contracting.
  • Simplify doing business with government.
  • Support improved procurement practice and align with international best practice.

 

Templates

GMC-standard contract

Separate templates have been developed for the purchase of goods and the purchase of services. These should not be used where there is a combined goods and services contract.

There are two forms of templates:

  • Form 1 (Crown): to be used by any department or agency that contract in the name of the Crown: e.g.  Her Majesty the Queen, in right of New Zealand, acting by and through the Ministry of Business, Innovation and Employment
  • Form 2 (non-Crown): to be used by any other buyer (who does not contract in the name of the Crown).

 

GMC-Lite contract

One GMC-Lite contract template is in place. This can be used for purchasing:

Top

 

User guides

A series of user guides has been developed.

To support deployment:

 

To support good practice:

 

To support invoicing and payment:

 

Other types of model contracts

The GMCs are not intended to replace any existing industry standard or model terms and conditions. Other types of industry standard model contracts include:

 

Contact us

If you have any questions or would like more information on the use of the GMCs please contact us at procurement@mbie.govt.nz.

 

Archived Templates 

The first edition templates have been superseded by the second edition templates. If you need to access any of the first edition templates you will find them on the archived first edition public service templates and first edition state service templates pages.

   

Last updated 9 September 2014