Improvement to Government procurement rules

Labour Minister Simon Bridges today announced an improvement to Government procurement rules to ensure all potential suppliers of cleaning services operate on a fair and level playing field. 

“The change means suppliers of cleaning services will no longer be required to join and pay for membership to the industry association to contract with Government,” says Mr Bridges.

“Instead, the Government will be able to contract with all suitable suppliers of cleaning services and award contracts on the merit of tenders.

“Consultation and analysis has been completed on the requirement for government departments to only contract with members of the Building Services Contractors of New Zealand for cleaning services.

“The findings show that the requirement has several negative implications, including that it acts as a barrier to some providers, and it is inconsistent with international and domestic procurement best practice.

“While the requirement was intended to help improve conditions of workers in the cleaning industry, few, if any, benefits have been achieved,” says Mr Bridges.

The requirement was introduced in 2008 as a means of endorsing the Principles for the Property Services Industry agreement, which the Government is a signatory to.

A report on the consultation can be found on the Ministry of Business, Innovation and Employment’s website: http://dol.govt.nz/consultation/property-services-industry