amifications). We suggest that suppliers begin to think about becoming ready to comply with the Supplier Code of Conduct – this may require development of internal policies (and training) for supplier staff and subcontractors and getting ready to update subcontracts to flow through compliance with the Code. 2. Subcontracting. Government is signalling a clear intent to pay attention to the relationship of prime contractors and their supply chain. For example, we identified above that payment terms are a key area of focus with agencies being required to encourage prompt payment terms downstream. Suppliers may wish to look at their subcontracting payment terms, keeping a close eye on Rule 51 and the guidance notes within that Rule. 3. Resourcing. An inevitable function of regulation is that, for agencies, resources need to be allocated to plan, deliver and monitor compliance with the Rules. For example, we have identified in Theme Four above Government’s emphasis on comprehensive procurement planning and processes. Similarly, the private sector will have a role to play in achieving compliance with the Rules both in tendering activities and project delivery. For example, compliance with the Supplier Code of Conduct as noted above and achieving secondary procurement benefits in the delivery of projects. At least in the short term, suppliers will need to upskill on the Rules and, in the longer term, be in a position to comply with obligations imposed on them pursuant to the Rules. In the context of the well-documented shortfall in resourcing in the industry, it will be interesting to see how the public and private sectors can resource to comply with these requirements. 4. Standardisation. The industry has spoken out about the need for standardised construction documentation. As identified above, Rule 65 indicates that Government will be developing a suite a standardised documentation for major projects. We look forward to seeing the proposed approach on standardisation, including recognition that, for each contracting party, “one size” will not necessarily “fit all”.
about the author
Travis Tomlinson Senior Associate
Travis is a front-end construction and major projects lawyer and has practised in both New Zealand and Australia.
Travis advises both the public and private sectors, acting for central government agencies and local authorities, financiers, project companies, developers/owners, contractors, consultants, subcontractors and suppliers. He has recent experience on significant infrastructure projects to have been procured in Australia.