Following on from consultation earlier this year, the Economic Growth Minister Nicola Willis announced this morning that the 5th edition of the Government Procurement Rules (Rules) will take effect from 1 December 2025. Changes to the Rules will be of interest to public sector agencies and those who contract with them as the Rules apply to the public sector when they are procuring goods, services, and refurbishment contracts worth more than $100,000 and all construction contracts over $9m. The Minister expects that contracts below those thresholds will be awarded to capable local business.
While we are still digesting the changes to the Rules, the critical changes announced to date indicate that:
- The Rules have been simplified (as the number of Rules has been reduced from 71 rules to 47)
- A new 'economic benefit' test is introduced to measure the wider benefit to New Zealand. This test requires at least 10 per cent of the procurement decision to be based on how a proposal provides economic benefits to New Zealand.
MBIE has also published guidance to help agencies shift to the 5th edition of the Rules. We will be reviewing revisions to the Rules and will provide a further update on what these changes will mean for public sector agencies and businesses alike. In the meantime, if you have any queries, please get in touch with one of our team.
