Procurement Rules Shake Up Long Overdue

The Government’s overhaul of procurement rules is a long-overdue and welcome step that helps address issues the infrastructure industry has been raising for many years, says Infrastructure New Zealand Chief Executive Nick Leggett.

“The government’s procurement system has been too complex and has effectively shut out capable New Zealand firms that could deliver great results. Simplifying the rules and placing greater responsibility on public sector agencies is the right move and will lead to a fairer and more competitive market.”

Infrastructure New Zealand and its industry partners have consistently highlighted the need for reform.

“Our joint 2018 report with Civil Contractors New Zealand identified fundamental flaws in the way government procures major infrastructure projects – from overly complex processes and a lack of accountability to inconsistent definitions of value for money. It’s encouraging to see the Government grasping what has been a difficult problem for a long time.”

“The new, simpler and more streamlined procurement rulebook will open the door for more firms to compete for public contracts, driving greater competition and better outcomes.”

“The Government’s expectation that smaller contracts will go to local firms is good news for small and medium businesses and will also help build greater industry capability and create local jobs.”

Infrastructure New Zealand backs the call by Katherine Rich of Business New Zealand for local government to now aim for fairer and simplified procurement principles applied to their tendering and contracts.

“Councils are responsible for much of the country’s infrastructure investment, and simpler procurement rules at the local level would deliver real efficiencies and provide more opportunities for local businesses,” Leggett says.

“Infrastructure New Zealand is also calling for proper measures to be applied to these changes so New Zealanders can understand the impact and benefits to our economy. Procurement reform isn’t a one-off, it’s an ongoing process of learning and improvement.”

Note:

Infrastructure New Zealand is the nation’s leading infrastructure member association. Our core purpose is to advance best practice development of world-class transport, energy, water, telecommunications, and social infrastructure for all New Zealanders. We do this through research, advocacy, and public and private sector collaboration. Our membership is comprised of over 150 organisations, including central and local government agencies, consultants, contractors, financiers, utilities, and academics – collectively employing approximately 150,000 people in infrastructure-related roles. Together, we are committed to creating a better New Zealand through outstanding infrastructure.

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