Council & City

Procurement policy

This policy reflects the overarching principles guiding Palmerston North City Council procurement. It recognises the need to ensure our procurement practices achieve best practice principles. These include value for money, open and fair competition, sustainability, accountability, risk management, probity and transparency.

Council procurement is conducted to deliver on the long-term plan and annual budget, in line with relevant government guidance and legislation.

The Local Government Act 2002 requires councils to play a broad role in promoting the social, economic, environmental, and cultural wellbeing of their communities, taking a sustainable development approach.


This is an internal staff management policy that applies to all procurement activities conducted or overseen by:

  • staff – permanent, temporary or contract (Council officers)
  • Councillors (elected members)
  • consultants and contractors
  • all other persons who undertake procurement on Council’s behalf.

Policy purpose

The purpose of this policy is to:

  • provide policy and guidance to Council to allow consistency and control over procurement activities
  • demonstrate accountability to ratepayers
  • provide guidance on ethical behaviour in public sector purchasing
  • ensure that financial probity is assured by prescribing a range of appropriate methods for purchasing and procurement
  • increase the probability of obtaining the right outcome considering overall ‘public value’ when purchasing goods and services or undertaking works.

Policy principles

Council is committed to achieving public value from managed procurement activities. Our procurement processes are guided by New Zealand Government Procurement Rules (fourth edition, 2019), and the Waka Kotahi New Zealand Transport Agency Procurement Manual (2014 update). We will apply a staged strategic procurement process that is consistent with the Ministry of Business, Innovation and Employment’s procurement lifecycle, charter, principles and rules when planning, sourcing and managing its procurements, as this sets the standard for good practice.

The New Zealand Government Procurement Principles are our overarching procurement values.

They are:

  • Plan and manage for great results.
  • Be fair to all suppliers.
  • Get the right supplier.
  • Get the best deal for everyone.
  • Play by the rules.

Throughout all phases of the procurement lifecycle, Council will:

  • clearly record our planning, processes and decisions so they can easily be audited
  • document and manage conflicts of interest
  • identify risks and develop mitigation activities to manage them
  • act lawfully, ethically and responsibly.

We acknowledge the Government Procurement Charter and will seek to meet these expectations as is practical, in alignment with key Council priorities.