Caroline Boot from NZ Procurement explains why the updated and streamlined fifth edition of the Procurement Rules is a powerful reminder to this sector of the importance of effective, fair and compliant procurement practices and why training for councillors and staff is even more essential.
The government’s new procurements rules have stronger focus on economic efficiency, with updates that are important for all who are responsible for spending public money on infrastructure, services, and community projects.
Arguably, the most critical and challenging responsibility of councils is the governance and management of effective procurement: the process by which you spend public money. Understanding and implementing good procurement practices, along with complying with new and existing procurement practices, is critical.
With the elections behind us a whole new group of councillors represent community leaders entrusted with significant responsibilities. And every council’s executive team should be wondering how quickly, and how well, they can blend new and existing expertise into a high-performing unit that can deliver outcomes in a fiscally challenged environment, as they face increasing financial constraints and public scrutiny.
Changing procurement landscape
The challenge of getting to grips with the government’s new procurement rules that councils are expected to follow is not to be underestimated. And the latest refresh represents key areas that must shift in focus in local government spending decisions.
For example, under the rules for contractors there’s a directive for at least 10 per cent weighting to be applied to support economic growth and encourage businesses to deliver. A new Principle is included, which requires agencies to ensure procurement is efficient, right-sized, and streamlined. Processes around suppliers panels have been clarified, to provide fairer allocation of work and transparency in secondary procurement. The links from procurement into contract management are strengthened, giving better ability to improve delivery; and stronger integrity, transparency and accountability requirements are included to enhance public confidence in public sector procurement.
These areas of focus are welcomed by our own procurement training and support teams, who work with procurement teams in most councils around our country. Based on that experience some critical aspects of procurement practice stand out as needing explanation and further development.
Managing conflicts of interest
Procurement is also an area where conflicts of interest can easily arise, and where the line between governance and operational management must be carefully maintained.
One of the most significant risks for councillors is inadvertently breaching conflict-of-interest rules. Councillors are often deeply connected to their communities, with personal, business, or family interests that may intersect with council procurement decisions.
Councillors who have been trained in procurement are equipped to recognise and declare potential conflicts early; understand the legal and reputational risks of unmanaged conflicts; and uphold the integrity and transparency of council decision-making.
A well-trained councillor is better able to ask the right questions, seek appropriate advice, and ensure that procurement processes are fair and defensible.
Governance vs management
It is essential for councillors to understand their role is one of governance, not operational management. Councillors should: set procurement strategy and policy; approve long-term procurement plans and frameworks, monitor outcomes; and hold management accountable for results.
However, councillors should not: influence the weightings or the scoring of suppliers; directly participate in operational procurement processes; or override or undermine the work of trained and qualified procurement professionals employed by the council.
This separation protects both the council and individual councillors from accusations of bias, undue influence, or procedural unfairness.
Local relevance matters
Procurement practice in our country is distinct from that in others. Our Government Procurement Rules, legal frameworks, and expectations of transparency and probity are unique.
For council staff who may already hold overseas procurement qualifications, gaining an NZQA-recognised qualification is a powerful way to ensure their skills are directly relevant and up-to-date for the New Zealand context, particularly in local government.
Investing in procurement training for newly-elected councillors and NZQA qualifications for council staff is a strategic, cost-effective move that pays for itself many times over. It’s not just about compliance – it’s about building a smarter, more capable, and more resilient organisation that delivers better outcomes for your community.
More information: cleverbuying.com or training@cleverbuying.com. 0800 225 005