Government procurement practices are a lever to drive better economic, social and environmental outcomes. We can be more efficient and save New Zealanders money if we and our clients do procurement better.
Good collaboration and engagement between the public and private sector means better procurement processes from the start – this saves time and money, supports innovation and boosts productivity. This leads to better social, environmental and economic outcomes for our communities.
Research by Consult Australia shows that with improvements in briefs, delivery models and contracts, the following efficiencies could be gained:
In 2015, poor procurement cost the Australian government an estimated $239 million per year. It’s also estimated that better procurement could cut the cost of rectifying design errors in construction by around $87 million per year.
Areas of inefficiency include:
These practices stifle innovation and lead to businesses charging premiums, recouping bid costs, accepting uninsurable risks and reducing competition. Infrastructure then costs more. This is an area where we can immediately make changes that will drive a more healthy and efficient infrastructure sector in Aotearoa New Zealand.
Consistency and standardisation
Consistency and standardisation of planning and procurement processes across central and local government, including the use of industry-accepted standardised contracts. This can be supported through the Government setting clear expectations that its departments, agencies and councils will follow standard processes except in exceptional circumstances, and monitoring and holding agencies and departments to account for not doing so. See our submission on Government Procurement Rules where we discuss how this could be achieved.
Bringing in expertise early
Bringing in expertise early in the pre-tender and planning stages so that we get the right expertise informing project development from the beginning – from feasibility to planning and delivery.
Investing in digital platforms
Investing in digital and data access platforms to ensure better information sharing, transparency and feedback.
Driving better consultant and client engagement
Working with representatives from local and central government and ACE members to co-design the principles of good client –consultant engagement. This work aims to support clients and consultants to work together more collaboratively throughout the investment lifecycle and promote better investment decision-making, pre-tender planning and procurement. Find out more
Value of consulting
An economic analysis looking at the value consultants bring to the client as well as the project, which will support our advocacy around the value consulting firms provide.
Insights
We share stories and examples demonstrating good procurement behaviours and encouraging innovation from clients. Find out more
Growing capability
We’re preparing a secondment agreement to allow better sharing of skills between the public and private sector as we look to address capability gaps.
Advocacy
We meet regularly with decision-makers and key stakeholders about the key opportunities to maximise efficiencies and outcomes in project planning and delivery.
Contracts
We provide ACE members with contract templates, guidelines, a checklist and other information so they can make informed decisions about contracts. Find out more
