Conflicts of interest in property procurement
If you’re involved in a property procurement process for your school you must declare any conflicts of interest so they can be managed properly.
What a conflict of interest is
A conflict of interest is when your personal interests, obligations or relationships could influence, or could be perceived to influence, decisions you make on your school's behalf.
A conflict of interest can be actual, potential or perceived.
- 'Actual' means a conflict already exists.
- 'Potential' means a conflict is likely, or could happen in the future.
- 'Perceived' means a person outside the situation could think there’s a conflict even if there isn’t.
A conflict of interest might be a connection you have with a contractor or supplier your school might procure services from. Examples include:
- having a family member or friend that works at a company your school might procure services from
- having previously worked for or with a business that your school might procure services from
- having a financial interest in a company your school might procure services from.
Declaring a conflict
You must declare any conflict of interest you have if the property procurement you’re involved with costs $10,000 or more.
If the final value of a procurement is $50,000 or more including GST, all staff involved must sign a conflict-of-interest declaration. This must be done before they get involved in the purchasing process.
Managing a conflict
If someone declares a conflict, you’ll need to set up a management plan agreed by:
- the person with the conflict
- the procurement sponsor
- the procurement officer.
The management plan is part of the procurement COI declaration form.
The procurement leader must endorse the completed plan, and the evaluation team should be notified of any conflict that’s been declared.
Guidance and examples
The Office of the Auditor-General has examples of how conflicts of interest happen and provides tips on how to manage them.
Managing conflicts of interest in procurement – Office of the Auditor-General New Zealandopen_in_new
The New Zealand Government Procurement website has more detail about what a conflict of interest is and how to manage it.
Managing conflicts of interest and confidentiality – New Zealand Government Procurementopen_in_new
The Public Service Commissioner outlines the expectations for reporting and managing conflicts of interest.
Conflicts of Interest – Te Kawa Mataaho Public Service Commissionopen_in_new