Planning property procurement

Learn how to plan for a property procurement project.

Level of compliance Main audience Other

Required

  • Project Managers
  • Principals and Tumuaki
  • Property Managers
  • Boards
  • Proprietors

Aspects of the property procurement process are mandatory and must be completed.

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).

Confirm funding

Consult the 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

Designate roles

Personnel must be assigned to each of the roles stated below.

Role Description

Procurement officer

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.

Procurement owner

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.

Procurement leader

Reviews and endorses all procurement documents and decisions.

The school property advisor (SPA) is assigned this role.

Procurement sponsor

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.

Evaluation team

Evaluate the offers made by suppliers and make a recommendation for a preferred supplier.

The evaluation team should include:

  • the procurement officer
  • the procurement owner
  • a technical expert (such as an architect)
  • a board member (this cannot be the same person as the procurement sponsor).

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.

Approaching the market

Note: Changes to the below table are in effect until 30 September, 2021 for projects with School Investment Package (SIP) funding.

Value profile Minimum approach and description

Less than $10,000

Non-competitive purchase

$10,000 – $49,999

Direct source

$50,000 - $99,999

Closed tender

$100,000 or more

Open tender

Procurement exemptions can be granted to allow the use of an approach to market method that is designed as a minimum requirement for a procurement of a lower value profile (in exceptional circumstances only).

See Procurement exemptions

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.

School property projects with School Investment Package (SIP) funding - changes until 30 September 2021

To speed up the delivery of school property projects with School Investment Package (SIP) funding, the value profiles for each minimum approach to market have temporarily changed.

See more on School Investment Package

Until the 30 September 2021, minimum approaches to market for projects with SIP funding are associated with the procurement values below.

Procurement value Minimum approach to market 

$10,000 - $99,999

Direct source

$100,000 - $249,999

Closed tender

$250,000 or more

Open tender

All other procurement requirements remain unchanged.

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.

Procurement Value Template

$10,000 - $99,999

Construction/contract works procurement plan – short [DOC, 118 KB]

Consultancy/professional services procurement plan – short [DOC, 121 KB]

$100,000 or more

Construction/contract works procurement plan – full [DOC, 245 KB]

Consultancy/professional services procurement plan – full [DOC, 240 KB]

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 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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