Oct 29
/
Joanne Toon
New Zealand Government Procurement Rules changes - Code of Conduct
The New Zealand Government Procurement Rules are changing.
The fifth edition goes live on the 1st December. While a lot of the
changes are cosmetic – making the language less bureaucratic, merging rules
where they were repetitious, or moving information that was in the rules into
guidance, there are a few points which suppliers need to be aware of.
In this series of articles, I want to highlight some of the more significant changes for suppliers, and outline any actions which you should be doing to get ready.
In this article, I'm highlighting the Supplier Code of Conduct and the requirement to include it in government contracts
In this series of articles, I want to highlight some of the more significant changes for suppliers, and outline any actions which you should be doing to get ready.
In this article, I'm highlighting the Supplier Code of Conduct and the requirement to include it in government contracts
Rule 2.3 – Supplier Code of Conduct
Agencies must engage with suppliers that
act with integrity and incorporate a Supplier
Code of Conduct in every contract.
Why this change?
In previous versions of the rules, the Supplier Code of
Conduct was an expectation, rather than mandatory, and agencies were told to
“consider” incorporating a commitment to the Supplier Code of Conduct in their
contracts.
This rule has been strengthened to make it clear this is now mandatory for any supplier who wants to do business with government. Contracts put in place from the 1st December will require you to sign up to either the standard code of conduct, or an agency specific one.
This rule has been strengthened to make it clear this is now mandatory for any supplier who wants to do business with government. Contracts put in place from the 1st December will require you to sign up to either the standard code of conduct, or an agency specific one.
What does this mean for me?
There are high expectations on suppliers to meet ethical and legal standards. By incorporating the Supplier Code of Conduct into contracts, any unethical behaviour, even if unrelated to the work you are doing for government, could be deemed a breach of contract.
Breaches of the Code are also a reason to exclude suppliers from bidding for work under Rule 28 (this was part of the previous edition of the Rules, too), so behaving unethically may not just lose you your current contract/s, it could prevent you from being considered for future government work as well.
I also shouldn’t have to point out that acting with integrity isn’t just important for winning and retaining government contracts! Ensuring you behave ethically and legally is a critical part of doing business. Unethical behaviour will see you face legal proceedings as well as impacting your reputation.
What do I need to do now?
Review the Supplier Code of Conduct on the NZGP website, along with the supporting guidance: https://www.procurement.govt.nz/suppliers/supplier-code-of-conduct/
This commitment is also required of any subcontractors working on government contracts, so you will need to do your due diligence when engaging third parties to support you with delivery. Check to see if you need to update your contracts so they are explicit about this requirement.
Ensure you are able to comply with this code of conduct, and you are able to demonstrate ethical behaviour if required.
This commitment is also required of any subcontractors working on government contracts, so you will need to do your due diligence when engaging third parties to support you with delivery. Check to see if you need to update your contracts so they are explicit about this requirement.
Join in the conversation!
If you want to chat about this change - head over to the article on LinkedIn
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Thank you!
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