Principles, rules and the law
Procurement principles
Government procurement is subject to overarching principles. Anyone involved in State sector procurement must be familiar with the principles and know how to apply them in their daily practice.
Mandatory Rules for Procurement
Public Service departments, New Zealand Police and New Zealand Defence Force are subject to the Mandatory Rules of Procurement for Departments. These Rules set out minimum requirements for certain types of procurements and must be followed.
Government procurement requirements
The Government, through a series of Cabinet Directives, has set specific requirements that apply to certain types of procurements. These requirements must be followed by agencies that are subject to Cabinet direction.
- MED: Government Procurement in New Zealand – Policy Guide for Purchasers Government Procurement in New Zealand [133 kB PDF]
- SSC: Cabinet Guidelines for IP from Public Service research contracts
- MAF: NZ Timber & Wood Products Procurement Policy
- SSC: Gateway Review Process (for high risk capital projects)
- DOL: Principles for the Property Services Industry
- MED: Sustainable Government Procurement Project: Category reviews [470 kB PDF]
- Treasury: Guidance for Public Private Partnership (Cabinet approvals for large capital projects)
- DPMC: Capital Asset Management – Expectations
- Treasury: Better Business Cases for Capital Proposals
- LINZ: Capturing economic benefits from location-based information
Statutes related to contracting
In addition to policy and rules, anyone involved in procurement must be aware of relevant statutes that relate to contracting, as well as the common law of contracts. Key statutes include:
- Sale of Goods Act 1908
- Frustrated Contracts Act 1944
- Public Bodies Contracts Act 1959
- Minors' Contracts Act 1969
- Illegal Contracts Act 1970
- Contracts (Privity) Act 1982
- Contractual Mistakes Act 1977
- Contractual Remedies Act 1979
- Sale of Goods (UN Convention) Act 1994
- Construction Contracts Act 2002
