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Government Model Contract template updates

Part of: Procurement news

We have updated the Crown Government Model Contract (GMC) templates to reflect the target set for central government agencies to pay 95 per cent of domestic invoices within 10 business days.

In April 2020 the Prime Minister and the Minister of Finance set this target as part of the Government’s economic response to COVID-19.

Schedule 2 of the Crown GMC templates now include a 10-business day payment clause. We are conscious not all agencies’ finance systems may allow for payment within this timeframe, so we have retained a backstop option: if the Buyer cannot meet the 10-business day timeframe, they must pay by the 20th of the month or the 20th of the following month (depending on when the invoice is received).

We have not updated Schedule 2 of the Non-Crown GMC templates with a similar payment clause, but we intend to consult with Non-Crown agencies on this proposed change in the near future.

In the meantime, Non-Crown agencies are encouraged to use the 10-day payment clause if they are able to do so. We have updated our guidance to include this recommended clause.

Government model contract templates

We have also inserted a new privacy clause in each of the GMC templates (Crown Goods; Crown Services; Non-Crown Goods; Non-Crown Services) to align with the Privacy Act 2020.

The new privacy clause restricts the supplier’s use of personal information. It also requires the supplier to protect personal information, assist the buyer to comply with its obligations under the Privacy Act 2020 and take certain actions in the event of a privacy breach.

From 2 August 2021 agencies that are required to apply the Government Procurement Rules must use the updated GMC templates for the purchase of low-value, low-risk routine goods and services.

If you need further information or assistance with the GMC templates please email the Procurement Planning team.

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