Standard conditions of contract where everyone gets a bargain Government Procurement Reform June...
-
Upload
marisol-wesby -
Category
Documents
-
view
216 -
download
0
Transcript of Standard conditions of contract where everyone gets a bargain Government Procurement Reform June...
Standard conditions of contract “where everyone gets a bargain”
Government Procurement ReformJune Ralston | Team Leader
Agency Briefing Sessions | 30 March & 1 April 2010
Presentation outline
• Welcome
• Procurement reform overview
• Standard conditions of contract initiative
• Project focus, scope & process
• Challenging clauses
• Q&As
• Consultation process
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
Reform Programme Workstreams
1. Achieving cost savings
2. Building procurement capacity & capability
3. Enhancing business participation
4. Improving governance, oversight & accountability
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
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
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.”
Benefits
• Simplify doing business
• Provide consistency
• Standardise the treatment of legal risk
• Resolve challenging clauses
• Fairer balance of risk
• Allows focus on specification & deliverables
Application
• Required use by:o Public Service departments
o State Services agencies
• State Sector agencies encouraged
Deliverables• Standard conditions of contract
• Contract templates:o services
o goods
o goods & services
• Variation template
• User Guidance Notes
Focus
• “Plain English”
• Clear standard format
• “Common” goods & services
• Reverse some legal default positions
Approach• Advisory groups:
o Strategy Group
o Procurement Development Technical Advisory Group
o T&Cs Working Group
o Business Reference Group
• Stakeholder consultation
Draft conditions of contract• Phillips Fox – external legal advisors
• 3 iterations:
o “straw man” consultation
o “stone man” pilot
o “iron man” first edition
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
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
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
Standard conditions of contract “where everyone gets a bargain”
QUESTIONS?
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
Standard conditions of contract “where everyone gets a bargain”
Government Procurement ReformAgency Briefing Sessions 30 March 1 April 2010