Planning property procurement
Learn how to plan for a property procurement project.
|Level of compliance||Main audience||Other|
Aspects of the property procurement process are mandatory and must be completed.
- Consider high-level requirements
- Confirm funding
- Designate roles
- Complete conflict of interest declarations
- Consider insurance arrangements
- Select an approach to market method
- Prepare a procurement plan
- Further information
Consider high-level requirements
Prepare a high-level statement of requirements to describe all outcomes to be delivered through the project.
This document can be shown to project managers (and those who they consult, such as quantity surveyors), who can then estimate how much the project will cost to complete.
This estimated value should be the maximum estimated spend required to complete the project, including any:
- potential contract variations or extensions
- additional work that may be required
- additional contracts that may result from the work (such as ongoing maintenance costs).
Consult the Ministry's school property advisor and confirm that funds are available to complete the project.
Funding for a school-led project might be available through any of the below channels:
- 5 Year Agreement (5YA)
- School Investment Package
- Property Maintenance Grant.
Personnel must be assigned to each of the roles stated below.
Holds primary responsibility for managing and administering the procurement.
Drafts all procurement documents.
A project manager is usually assigned the role of procurement officer. They are likely to be recruited specifically to work in the role.
See more on Project manager engagement.
Represents the buyer in the procurement.
Reviews and endorses all procurement documents.
Principals are usually assigned this role.
For procurements valued below $100,000, the procurement owner can be the same person as the procurement officer.
Reviews and endorses all procurement documents and decisions.
The Ministry's school property advisor (SPA) is assigned this role.
Reviews and approves conflict of interest management plans, the procurement plan and the recommendation report.
Signs the contract with the supplier on behalf of the school.
A school board member is assigned this role.
To maintain the procurement sponsor’s impartiality, the procurement sponsor cannot be directly involved in the decisions that they approve. Therefore, they cannot be on the evaluation team.
Evaluate the offers made by suppliers and make a recommendation for a preferred supplier.
The evaluation team should include:
One evaluator should be nominated as the team’s chairperson (this cannot be the procurement officer).
Complete conflict of interest declarations
Everybody involved in a school property procurement must complete a conflict of interest declaration. This document also confirms that the signatory agrees to keep commercial information confidential.
If a conflict of interest is disclosed, it must be managed appropriately.
See Conflict of interest in property procurement
Consider insurance arrangements
There are five types of insurance that may need to be in place during a property project:
- Contract works insurance
- Contents insurance
- Professional indemnity insurance
- Public liability insurance
- Suppliers’ plant and equipment insurance
See more on insurance for property projects on the page below.
Insurance for school property projects
Select an approach to market method
There are four methods of approaching the market. Each is the minimum standard for procurements of a specific value profile and must be used.
A detailed description of each method of approaching the market can be found on the tailored page.
|Value profile||Minimum approach and description|
Less than $10,000
$10,000 – $49,999
$50,000 - $99,999
$100,000 or more
Open tender (or closed tender under a panel arrangement)
Procurement exemptions can be granted to allow the use of an alternative approach (in exceptional circumstances only).
In complex or high-risk procurements it is smart to use an approach to market that is the minimum for a procurement of a higher value profile. No exemption is required for this.
Prepare a procurement plan
A procurement plan confirms the process that will be followed when completing the procurement. Schools must complete a procurement plan for projects valued at $10,000 and above.
It may be useful to read about future steps in the procurement process at this time. This will provide context when completing the procurement plan.
See Following the procurement process
Use the relevant procurement plan template of the options below.
See examples of construction works and consultancy services
For procurements of a value less than $10,000
A plan is not required for procurements with a value less than $10,000.
Instead, email the procurement sponsor and explain what is being purchased and why. The procurement sponsor must then email back written approval for the purchase.
Retain record of this exchange.
Review the procurement plan
After the procurement officer has drafted the procurement plan, it is passed on to the procurement owner for endorsement.
For procurements worth a value of $50,000 or more, the procurement leader must also endorse the plan. If no feedback is received from a Ministry school property advisor (procurement leader) after two business days, a report can be considered endorsed by them.
The endorsed plan is then passed on to the procurement sponsor for approval.
The procurement sponsor should consider:
- Does the statement of requirements appropriately describe the overall need, including the outcome sought?
- Does the procurement value include all spend that can be reasonably be expected to result from the procurement (including potential for variations, contingency and follow-on engagements)?
- Is the approach to market method appropriate?
- Are the main risks identified and being appropriately treated?
- Does the overall approach appear reasonable?
See more on Roles in property procurement.
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