Understanding contracts

What a contract is

When you buy goods and services, we strongly recommend you sign a contract with the supplier. A written contract provides a clear record of the agreement made between your school and a supplier. It protects both parties.

A contract should state:

• what you are buying
• how much the goods or services cost
• the roles, responsibilities and legal obligations of you and the supplier
• how any changes to the contract can be made.

Contracts are legally binding and should always be examined closely before they are signed. You should also do due diligence before signing.

Contract templates

Schools and kura may use the contract templates prepared by New Zealand Government Procurement (NZGP).

These contracts are for buying low-value, low-risk common goods and services. They consist of fair and balanced terms and conditions.

Using these contracts can reduce the need for negotiations and legal advice when making a purchase.

• Schools should use the non-Crown templates.
• The third edition templates should be used for all new contracts.
• The 'lite' contract is only for very low-risk and low-cost deals, for example, for one-off purchases.

Templates – NZGP

Managing contracts

Once a contract is underway, you will need to manage it to make sure it is delivering value for your school.

NZGP provides detailed guidance on managing contracts.

Manage the contract – NZGP

Use a contract register to help you track all your current contracts.