International best practice in tender price evaluation
Government needs to get better value from public infrastructure if it’s to address New Zealand’s infrastructure challenges and create a thriving future.
Our tender processes are part of getting this better value from public infrastructure. Tender proceeses are a powerful driver of project outcomes, and when designed well can support such things such as whole of life costs, carbon footprint, and broader social outcomes (including our capacity and capability to deliver further infrastructure).
This has caused agencies to shift away from price-centric evaluation. However, the way we assess non-price outcomes are not always consistent and can often still cause price to be the determining factor.
The research draws from international best practice across eight countries and has found some areas where New Zealand can learn from overseas experience, as well as some pockets of best practice that already exist in our public service.
This work makes a range of recommendations around different methods and considerations that are used in project procurement. We engaged Aurecon to review international ‘best practice’ in construction price evaluation and identify which elements could bring practical benefits in New Zealand.
International best practice in tender price evaluation
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