Government Model Contracts
The New Zealand Ministry of Economic Development (MED) has developed a set of standard conditions of contract for routine government purchases. These conditions are called Government Model Contracts (GMCs).
The 2nd Edition GMCs were launched by MED 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:
“… MED 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.
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 Economic Development
- Form 2 (non-Crown): to be used by any other buyer (who does not contract in the name of the Crown).
A series of user guides has been developed.
To support deployment:
- Guide to deploying the 2nd Edition GMCs [1 MB PDF]
- Presentation to support internal communications [2 MB PPT]
To support good practice:
- Guide to using the 2nd Edition GMCs [1 MB PDF]
- Guide to e-commerce [866 kB PDF]
- Contract register – template [273 kB XLS]
To support invoicing and payment:
- Agency quick guide to prompt payment [686 kB PDF]
- Supplier’s quick guide to invoicing and payment [680 kB PDF]
- Supplier’s check list – preparing an invoice [104 kB DOC]
- Invoice template – goods [14 kB XLS]
- Invoice template – services [14 kB XLS]
The GMCs are not intended to replace any existing industry standard or model terms and conditions. Other types of industry standard model contracts include:
Consulting engineers: Conditions of Contract for Consulting Services (CCCS)
Public Private Partnerships: The Treasury draft Standard Contract
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.
If you have any questions or would like more information on the use of the GMCs please contact us at firstname.lastname@example.org.