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GOVERNMENT SEEKING FEEDBACK ON PROPOSED SUPPLIER CODE OF CONDUCT
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The Government is seeking feedback on a proposed Supplier Code of Conduct (the Code) and changes to the Government Procurement Rules (the Rules).

The proposed Code will likely apply to not only contracts suppliers have with the Government, but also to suppliers’ overall conduct. The Code will cover labour and human rights, health and safety, payment terms, environmental sustainability, ethical behaviour, and corporate social responsibility.

The proposed changes to the Rules include:

  • the new Broader Outcomes Rules (Rules 16-20)
  • changes to construction procurement (Rules 18, 65 and 70)
  • new Rules around procurement capability (Rules 71 and 72), reporting (Rule 53) and planning (Rule 15)
  • the removal of outdated Rules (Extended Procurement Forecasts and Registered Suppliers Lists) and amending requirements relating to Significant Procurement Plans
  • amending the construction threshold to $9 million and reviewing the thresholds annually
  • changes to expectations around subcontracting and the conduct of suppliers (Rule 25 and Rule 44

A draft Government Procurement Charter, which sets out the Government's expectations for how agencies should conduct their procurement activity, will also be included in the updated Rules.

The changes reflect the aim to achieve broader social, economic and environmental outcomes through the annual $41 billion the Government spends buying goods and services from third-party suppliers and providers.

Any supplier contracting with Government departments, NZ Police, NZ Defence Force and most Crown entities must follow the Rules if the procurement is worth more than $100,000 (or $9 million for new construction works). The Government is also encouraging other Government agencies to follow the Rules.

To continue to receive their share of the $41 billion, it will be important for businesses providing goods or services to the Government to ensure they have adequate policies in place to comply with the changes.

Submissions on the Supplier Code of Conduct and the Government Procurement Rules 4th edition close on 19 February and 5 March 2019 respectively.

For further guidance on Government Procurement and the consultation process please contact Hayden Wilson, Linda ClarkPaul Buetow or Campbell Featherstone.

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