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Transcript of Standard conditions of contract where everyone gets a bargain Government Procurement Reform June...
![Page 1: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/1.jpg)
Standard conditions of contract “where everyone gets a bargain”
Government Procurement ReformJune Ralston | Team Leader
Agency Briefing Sessions | 30 March & 1 April 2010
![Page 2: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/2.jpg)
Presentation outline
• Welcome
• Procurement reform overview
• Standard conditions of contract initiative
• Project focus, scope & process
• Challenging clauses
• Q&As
• Consultation process
![Page 3: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/3.jpg)
Government Procurement Reform
• For government – better value through:o Standardised approacho Increased productivity & efficiencieso Cost savings
• For suppliers – better access to opportunities:o Reduced costs of doing business with governmento Familiarity through standard documentso Less red tape
![Page 4: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/4.jpg)
Reform Programme Workstreams
1. Achieving cost savings
2. Building procurement capacity & capability
3. Enhancing business participation
4. Improving governance, oversight & accountability
![Page 5: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/5.jpg)
Survey of current practice
Variety of contracts
Variety of legal conditions
Complexity of contract not commensurate with risk
Inconsistent use of terminology
Some clauses irrelevant to subject matters
Repetition & quality
Suppliers incurring repeat legal costs
![Page 6: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/6.jpg)
Workstreams 3 & 4 - Projects
1. Standard conditions of contract
2. Standard tools & templates
3. Practice Guidance Notes
4. Procurement Planning: APPs & SPOs
5. Supplier Guide to doing business with government
6. Review procurement policy & framework
![Page 7: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/7.jpg)
Standard conditions of contract
Cabinet directive:
“to create a standard, simple, plain English set of conditions of contract for common goods and services to be used by all Public Service Departments and State Services.”
![Page 8: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/8.jpg)
Benefits
• Simplify doing business
• Provide consistency
• Standardise the treatment of legal risk
• Resolve challenging clauses
• Fairer balance of risk
• Allows focus on specification & deliverables
![Page 9: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/9.jpg)
Application
• Required use by:o Public Service departments
o State Services agencies
• State Sector agencies encouraged
![Page 10: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/10.jpg)
Deliverables• Standard conditions of contract
• Contract templates:o services
o goods
o goods & services
• Variation template
• User Guidance Notes
![Page 11: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/11.jpg)
Focus
• “Plain English”
• Clear standard format
• “Common” goods & services
• Reverse some legal default positions
![Page 12: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/12.jpg)
Approach• Advisory groups:
o Strategy Group
o Procurement Development Technical Advisory Group
o T&Cs Working Group
o Business Reference Group
• Stakeholder consultation
![Page 13: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/13.jpg)
Draft conditions of contract• Phillips Fox – external legal advisors
• 3 iterations:
o “straw man” consultation
o “stone man” pilot
o “iron man” first edition
![Page 14: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/14.jpg)
milestone date
“straw man” available beginning April 2010
Consultation period ends 7 May
“stone man” finalised 22 June
Briefing sessions last week in June
Pilot July to December
Review pilot February 2011
“iron man” finalised April 2011
First edition launched May 2011
Timeline
![Page 15: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/15.jpg)
Contract Structure
AgreementAgreementSchedule 1
Schedule 1• parties
• execution
•specific provisions •specification of services
• terms & conditions• definitions
++Schedule 2
Schedule 2
Schedule 3
Schedule 3
+
• variation template
![Page 16: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/16.jpg)
Challenging clausesClause Treatment
insurance • not required as standard
indemnity • delete provision for loss caused by breach• retain for 3rd party IP infringement
limitation of liability • mutual• supplier capped at 3 x total fees
Intellectual property • buyer owns all new IP & licences supplier to use and commercialise
termination • supplier can terminate on giving notice
![Page 17: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/17.jpg)
Standard conditions of contract “where everyone gets a bargain”
QUESTIONS?
![Page 18: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/18.jpg)
Next steps
• “straw man”: beginning April
• Consultation ends: 7 May 2010
• More information: www.med.govt.nz
• Your feedback to: [email protected]
• Next briefing: last week in June
![Page 19: Standard conditions of contract where everyone gets a bargain Government Procurement Reform June Ralston | Team Leader Agency Briefing Sessions | 30 March.](https://reader036.fdocuments.us/reader036/viewer/2022062511/55183136550346ac318b5032/html5/thumbnails/19.jpg)
Standard conditions of contract “where everyone gets a bargain”
Government Procurement ReformAgency Briefing Sessions 30 March 1 April 2010