An update from the Health NZ commercial and procurement team
As part of the wider Health New Zealand / Te Whatu Ora (Health NZ) reset, Health NZ Infrastructure and Investment Group (IIG) is reviewing all its IIG operations to ensure its expenditure is within budget and that it is delivering value and achieving the Government’s health outcomes. The review includes in-flight projects and new capital initiatives not already funded.
Head of Infrastructure Commercial and Procurement - Infrastructure and Investment Group Paul Hrstich provides an update on the initiatives.
Health NZ regional structure and supplier panels
Health NZ is exploring opportunities to create a series of supplier panels that are appropriately sized and tailored to support its regional structure (Northern, Te Manawa Taki, Central and Te Waipounamu).
A current example is the Regional Hospital Redevelopment Programme – Technical Advisory and Design Services RFP, which has received a positive response from the market and is in the final stages of procurement. This programme's procurement process is the first step in exploring the feasibility of a national design panel.
Outside of this programme, Health NZ will continue to need suppliers across the country to support a large number of projects. Preferred supplier and panel arrangements will streamline the engagement process for suppliers to respond to multiple Health NZ tenders. Suppliers will be able to focus on the specific district, region or national level at which they operate, enhancing efficiency and alignment.
Health NZ key suppliers
Transitioning from 20 district health boards to Health NZ has given us a comprehensive view of our suppliers across the health portfolio and an opportunity to shift from project-by-project engagement to a more integrated approach working with our key suppliers at a portfolio level. It also provides a significant opportunity to enhance our procurement and infrastructure delivery by partnering more effectively with our key suppliers, with the aim of positioning Health NZ as a major client in the construction market.
Standard Health NZ tender documentation
We are introducing a new suite of infrastructure and construction tender templates designed to provide consistency in our procurement approach. Suppliers, regardless of location or level of operation (district, regional or national), will notice consistent, predictable and straightforward tender requirements for common tender elements allowing them to focus on showcasing their unique propositions for why they should be the preferred choice.
Standard Health NZ construction and consultant contracts
A new suite of standard contracts for projects with a total value of less than $30m has also been launched across Health NZ and all new Health NZ tenders must use these from 2 December 2024. This supports Health NZ’s journey of implementing a standardised approach for contracts relating to construction and consultancy services. Future initiatives include work to standardise our scope of services to better align with project goals and objectives.
The new contracts have been created in response to industry feedback. They aim to minimise the need for special conditions and ensure risks are clearly defined and allocated to the parties best able to manage them. The suite of standard contracts includes the NZS 3910:2023 standard form with health-specific amendments and the Crown version of the Conditions of Contract for Consultancy Services (CCCS), tailored to reflect Health NZ’s requirements.
The standardising of Health NZ’s terms and conditions is intended to enhance procurement efficiency allowing a move away from renegotiating on a tender-by-tender basis.