Framework Contract In Procurement for New Zealand

Framework Contract In Procurement Template for New Zealand

A Framework Contract in Procurement under New Zealand law establishes a long-term agreement between a purchasing organization and supplier(s) for the supply of goods, services, or works. This document sets out the overarching terms, conditions, and mechanisms for subsequent call-off contracts, while ensuring compliance with New Zealand's Government Procurement Rules and relevant legislation. It includes provisions for pricing, service levels, ordering procedures, and contract management, creating a flexible procurement structure that maintains consistency and efficiency in repeated purchasing activities.

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What is a Framework Contract In Procurement?

This Framework Contract In Procurement is designed for use in New Zealand procurement contexts where organizations require a structured approach to repeated purchasing activities. It establishes a master agreement that sets out the fundamental terms, conditions, and commercial framework under which subsequent call-off contracts can be efficiently executed. The document incorporates requirements from New Zealand's Government Procurement Rules, the Contract and Commercial Law Act 2017, and other relevant legislation, while providing flexibility to accommodate various procurement scenarios. It is particularly valuable for organizations seeking to streamline their procurement processes, maintain consistent standards across multiple purchases, and establish clear governance frameworks for supplier relationships. The framework approach allows for both single-supplier and multi-supplier arrangements, supporting competitive tension while reducing administrative burden.

What sections should be included in a Framework Contract In Procurement?

1. Parties: Identification of the contracting parties - typically the procuring entity and the supplier

2. Background: Context of the framework agreement, procurement objectives, and relationship between the parties

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Framework Agreement Structure: Explains the nature of the framework, relationship with call-off contracts, and any exclusivity arrangements

5. Duration: Term of the framework agreement, including any extension options

6. Call-off Procedure: Process for awarding call-off contracts under the framework

7. Ordering Process: Detailed procedures for placing and accepting orders under the framework

8. Pricing and Payment: Pricing mechanism, payment terms, and price adjustment provisions

9. Performance Standards: Required service levels, quality standards, and performance measurements

10. Supplier Obligations: Key responsibilities and commitments of the supplier

11. Customer Obligations: Key responsibilities and commitments of the customer

12. Contract Management: Governance structure, reporting requirements, and relationship management

13. Intellectual Property Rights: Ownership and usage rights of IP created or used under the framework

14. Confidentiality: Protection and handling of confidential information

15. Liability and Insurance: Liability limitations, indemnities, and insurance requirements

16. Termination: Termination rights and procedures for both framework and call-off contracts

17. Dispute Resolution: Procedures for resolving disputes between parties

18. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Framework Contract In Procurement?

1. Multi-supplier Provisions: Required when framework involves multiple suppliers, including ranking and mini-competition procedures

2. International Trade: Include when framework involves international suppliers or cross-border elements

3. Security Requirements: Add for contracts involving sensitive information or requiring specific security clearances

4. Business Continuity: Include for critical supply arrangements requiring detailed continuity planning

5. Social Responsibility: Add when incorporating specific environmental, social, or sustainability requirements

6. Treaty of Waitangi: Include when procurement affects Māori interests or involves cultural considerations

7. Data Protection: Required when framework involves processing of personal or sensitive data

8. Health and Safety: Include for frameworks involving on-site work or safety-critical supplies

What schedules should be included in a Framework Contract In Procurement?

1. Schedule 1: Specifications: Detailed technical specifications of goods/services covered by the framework

2. Schedule 2: Pricing Schedule: Detailed pricing structure, rates, and any volume discounts

3. Schedule 3: Service Levels: Detailed service level requirements and measurement criteria

4. Schedule 4: Call-off Terms: Standard terms and conditions for call-off contracts

5. Schedule 5: Contract Management: Detailed procedures for contract management, including KPIs and reporting templates

6. Schedule 6: Security Requirements: Detailed security procedures and requirements

7. Schedule 7: Form of Call-off Contract: Template document for individual call-off contracts

8. Schedule 8: Supplier Personnel: Key personnel and qualification requirements

9. Schedule 9: Processing Requirements: Details of any data processing activities and requirements

10. Appendix A: Change Control Procedure: Detailed process for managing changes to the framework or call-offs

11. Appendix B: Dispute Resolution Procedure: Detailed dispute resolution procedures and escalation paths

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Public Sector

Healthcare

Construction

Information Technology

Professional Services

Manufacturing

Education

Infrastructure

Utilities

Transportation

Defense

Environmental Services

Relevant Teams

Procurement

Legal

Commercial

Supply Chain

Operations

Risk and Compliance

Finance

Project Management

Vendor Management

Strategic Sourcing

Relevant Roles

Procurement Manager

Contract Manager

Commercial Director

Supply Chain Manager

Chief Procurement Officer

Legal Counsel

Procurement Specialist

Category Manager

Vendor Manager

Operations Manager

Project Manager

Risk Manager

Compliance Officer

Commercial Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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