New Zealand Government Procurement has published new guidance to help agencies implement Rule 8 of the Government Procurement Rules (Rules) regarding achieving economic benefits for New Zealand. The guidance, presented as a Rule 8 guidance handbook, provides tools and step-by-step support for agencies navigating the economic benefit requirements that came into force on 1 December 2025. This article summarises the key aspects of the guidance and what it means for agencies.
Background: Rule 8
The 5th edition of the Rules replaced the previous "broader outcomes" framework with a more prescriptive requirement to seek "economic benefits to New Zealand". For contracts above the value thresholds ($100,000 for goods, services and refurbishment works, and NZ$9m for new construction works), agencies must actively pursue and evaluate economic benefits as part of their assessment of public value.
Rule 8 sets out examples of the types of benefits agencies should consider. These include:
- Making better use of New Zealand resources (such as providing training or apprenticeships)
- Using New Zealand businesses directly or through subcontracting arrangements (including SMEs and regional businesses)
- Creating export opportunities
- Developing New Zealand industry capabilities or capacity
- Adopting innovative products or practices
- Supporting environmental sustainability
- Contributing to positive social and cultural outcomes.
Agencies must apply a minimum 10% weighting to economic benefits when evaluating procurement proposals. Agencies may apply a higher weighting depending on the nature and desired outcome of the procurement. Agencies must also set clear expectations in their procurement notices, include contract provisions for delivering the agreed economic benefits and monitor commitments under the resulting contract to ensure they are achieved.
For procurements below the value thresholds, agencies are expected to award contracts to New Zealand businesses (as well as Australian businesses) that have the capability and capacity to deliver, unless there is good reason not to. Agencies should record their reasons for awarding a contract to an overseas supplier (other than an Australian business) as part of their decision-making process, to demonstrate compliance with Rule 8.
The new guidance: What it covers
The Rule 8 guidance handbook is structured around four key areas:
- The first section covers economic benefits essentials, including what economic benefits are and when the requirements apply. This section covers panels and secondary procurements, and states that agencies are not required to apply the minimum 10% evaluation criteria to secondary procurement
- The second section provides guidance on applying economic benefits throughout the procurement lifecycle, from planning through to contract management. This section includes guidance on evaluating responses, as well as including commitments in contracts
- The third section describes seven model economic benefits that agencies can draw on: increased use of New Zealand businesses; employment and workforce development; uplifting sector or supplier capability; growing innovation and new business opportunities; supporting environmental sustainability and resilience; promoting regional and community development; and promoting social and cultural outcomes. For each model benefit, the handbook provides example RFx questions and contract performance measures that agencies can adapt for their own processes
- The fourth section provides illustrative examples of how Rule 8 can be applied across different procurement contexts, being below-threshold procurements, ICT procurements and infrastructure programmes.
Agencies are required to attest (yes/no) in a Notice of Procurement that they are seeking economic benefits (and record the weighting). When submitting a contract award notice on GETS, agencies will be asked to identify which economic benefits were included in the procurement. The options available in GETS correspond to the model benefits described in the handbook.
What agencies should do now
With the new Rules now in force, agencies should review their procurement policies and templates to ensure alignment with Rule 8. In particular, agencies should carefully consider how they will identify the economic benefits they are seeking, how those benefits will be specified in RFx and evaluated, and how delivery will be monitored and reported under the resulting contracts.
The new guidance handbook is a valuable resource to support agencies in that work, providing ready-made tools and examples that can be adapted for their own procurements. The handbook is available on the New Zealand Government Procurement website.
We regularly advise agencies on procurement policy and compliance. If you would like assistance reviewing your procurement processes, templates or contract provisions to ensure alignment with Rule 8, please get in touch with any of the contacts listed below.
