Planning Construction

Procurement
Overview of Suite of Guidance
Why do we need specific guidance around construction
procurement?

Over $7 billion is spent annually by government agencies on construction

and infrastructure
A significant increase in construction activity by agencies that do not
routinely undertake this type of procurement
No one size fits all solution to the delivery of complex infrastructure in
government, there are common good practices that can be more
consistently applied
Included in this suite is specific guidance on how government agencies can
take a lead role to improve workplace safety when managing construction
projects
Governments objective is to reduce the rate of fatalities and serious injuries
in the workplace by at least 25% by 2020. Government agencies have a
collective responsibility in ensuring we meet this target and this guidance
supports us to do that
Planning Construction Procurement

www.procurement.govt.nz for agencies tab or search for Construction

Guidance on our website.
The suite of guides
Developed by Ministry of Business, Innovation and Employment (MBIE) for New
Zealand public sector agencies.

Each guide provides standards of good practice on a specific aspect of the

construction procurement process.

The purpose of providing the suite of guides is to:

modernise the Governments approach to construction procurement to align

with good international practice and provide better value for the New Zealand
public
encourage agencies to take a strategic approach earlier in the planning of
construction procurement
show how using these guides links to other government-directed
requirements such as Treasurys Better Business Case (BBC)
provide a plain English format that is easy for agencies and suppliers to use
Development and publication

Guides have been developed in consultation with selected industry groups

and public sector agencies
Intended to publish a revised edition of the guides after first year, taking on
board further feedback from wider stakeholders
Guides are now available online www.procurement.govt.nz
Intended audience and use
Title
An overview to the guides
A guide to matching capability to
complexity
A guide to developing your
procurement strategy
Achieving construction productivity
gains by adopting BIM
A guide to risk and value
management
A guide to health and safety and
employment standards at work
Primary users
Agencies and industry organisations involved or
interested in public sector projects
Agencies responsible for delivering major capital
projects or programmes of work
Agencies or industry organisations involved in
delivering public sector projects
All agencies
Agencies or industry organisations involved in
delivering public sector projects
All agencies, particularly governance and
management teams
Description
This document; provides a high level overview of the suite
of guidance documents
Provides a structured approach for matching the
capabilities of key stakeholders to the complexity of the
project environment
Provides guidance on:
assessing delivery options and identifying a
delivery model that accommodates a projects
characteristics, risks and circumstances
good practices of tendering and contracting
Provides a general overview of Building Information
Modelling (BIM), its advantages, and when it is
appropriate to use
Provides a structured approach for:
identifying and managing project values, to best
meet business needs
capturing and managing the risks associated with a
projects solution, to offer the best whole-of-life
value
Provides a summary of legislative obligations relevant to
construction, and guidance on ensuring these obligations
are met
Where do guides fit within MBIE and Treasury?
These guides are intended to supplement the MBIE Guide to Mastering Procurement,
which provides guidance around the eight stage procurement lifecycle.

Each guide is intended to also be used in conjunction with the Government Rules of
Sourcing, and a number of other MBIE guides and references.

Cabinet Office Circular 15/5

Sets out Governments investment management expectations, which certain public sector
agencies must follow for high value and/or high risk projects. Depending on the nature of
the project, this may include completing the following processes:

Gateway reviews
Better Business Case (BBC) process, including reviews by the Corporate Centre
Major projects monitoring
MBIE significant procurement plan review.

Following the guides can support agencies in meeting these requirements.

Mastering Procurement
Where the guides fit together in the procurement lifecycle
What the guides are not
Guides are not a substitute for professional advice, they are intended to help
inform agencies of some of the key issues to address in developing a
procurement strategy for a construction project

The guides are not mandatory, we are encouraging agencies to use them where
appropriate

The guides do not replace the Government Rules of Sourcing, these still apply!

The guides are largely technical in nature and do not detail how to apply the
Government Rules of Sourcing to particular situations; there may be merit in
looking at some practical tools further down the line

If an agency requires further information on procurement of construction projects,

further advice can be obtained from MBIE by contacting
procurement@mbie.govt.nz