Glossary

Progressive Procurement:

Social Procurement - The buying of products and services that also creates positive social impact.

Progressive Procurement - The Government's focus on ensuring they invest into supplier diversity to enable the achievement of broader social outcomes.

Circular Economy - A model of production and consumption where the life cycle of products is extended. In practice, it implies reducing waste to a minimum.

All-of-Government Contract - Type of approved collaborative contract, AoGs establish supply agreements with approved suppliers for selected common goods or services purchased across government.

Panel - A list of suppliers who have been pre-approved by an agency and who have agreed to the terms and conditions for supply.

Te Kupenga Hao Pāuaua - Project team (made up of TPK and MBIE) that oversees the implementation of the progressive procurement policy ie mandated agencies are reporting on their progress against an 8% target of their relevant annual procurement contracts awarded to Māori businesses.

Supplier Code of Conduct - A document which sets out the expectations of the suppliers that government engages - see document here.

Future Procurement Opportunities - There is a complete list of upcoming future procurement opportunities (FPO) under the FPOs section in GETS.

Tendering Process:

Tender - Tender (or tendering) is mainly defined as the invitation to submit a proposal (bid) for a project.

Request for X - RFX is a catch-all term meaning Request for _. It covers all tender types, including RFI, RFP, RFQ, RFP (as noted above).

Request for Information (RFI) - Used when the buyer thinks they know what they want but needs more information from the suppliers. The buyer doesn’t have enough information to formulate a tender document.

Registration of Interest (ROI) - Similar to an RFI and often used as a screening tool or shortlisting tool. The buyer is not necessarily committed to buying.

Request for Proposal (RFP) - Used when the buyer has a problem but doesn’t know how they want to solve it. The supplier has the freedom to create a solutions-based submission to meet their problem.

Request for Tender (aka Invitation to Tender) (RFT/ITT) - Used when the buyer knows what they want. An opportunity for suppliers to submit an offer to supply goods or services against a detailed tender document with set criteria.

Request for Quote (RFQ) - Used when a buyer knows what they want but needs information on how suppliers would meet their requirements and at what cost. Judged primarily on cost.

Letter of Award (LOA) - Letter from buyer to supplier letting them know that their tender was successful.

Government Electronic Tendering System (GETS) - Online portal to see what Government tenders opportunities exist.

Negotiation to Tender (NTT) - When the tender offers have been opened the buyer may choose to negotiate further with one or more tenderers, the buyer and supplier will negotiate the terms and deliverables of the contract.

Notice To Tender - Covers items or issues that have changed or arisen during the tender process. The NTT is issued to all tenderers before the close of tenders, that notice then becomes part of the request for tender documents.

Broader Outcomes:

Broader Outcomes - The secondary benefits that come from buying a product or service (social, cultural, environmental, economic).

Health & Safety:

Person conducting a business or undertaking (PCBU) - The PCBU has the primary duty of care for people’s health and safety at work.

Tōtika - Cross-recognition for Health and Safety Pre-qualifications in NZ.

SHE PREQUAL - Provides Contractor Pre-Qualification evaluation services, measured against 45001 and best practice standards.

SiteWise - Contractor health & safety pre-qualification system that grades capability and publishes it in a database available to main contractors & principle.

Compliance - As a business and employer there are health and safety requirements that you must legally follow to ensure the safety of those around you. 

Worksafe NZ - The Government empowered dedicated taskforce to ensure Health & Safety compliance and enforcement.

Notifiable Events - Any serious injury, illness, or incident that happens to a person or people carrying out work, or as a result of work that your business or organisation is responsible for.

Project Delivery:

Change Management - Change management is a collective term for all approaches to prepare, support, and help individuals, teams, and organisations in making organizational change.

Step Change - a step change may refer to a radical shift in strategy or operations. Step-Change, is achieving massive increases in performance that look like “steps” when depicted on a graph. Step-Change thinking requires an over-emphasis on people to ensure that the change takes root and becomes embedded in the organization or team - do not underestimate the Human Factor of change.

Human Resources:

Individual Employment Agreement (IEA) - Contract used between an employer and an individual employee.

Collective Employment Agreement (CEA) - Contract used between an employer and a registered union representing a group of employees.

Onboarding - The process of introducing a newly hired employee into the organisation.

Procedures - Explains the way something should be done (Applying for Annual Leave)

Code - Can be used as another way of describing a policy (Code of Conduct)

Guidelines - Provide a framework for things to consider when making a decision (Stakeholder Engagement)

Managing your money:

Accounting - Analysing financial transactions and statements to provide financial advice.

Accounts Payable - Amount owing to suppliers.

Accounts Receivable - Amounts owing from customers.

Assets - Things you own.

Bad Debts - Sale amounts unlikely to receive payment from customers for.

Bookkeeping - Process of recording financial transactions.

Capital - The net balance of assets that belong to the owner. also known as Equity.

Chart of Accounts - List of all accounts that you can post transactions too and their account codes

Cost of goods sold - Expenses related to selling goods or providing services. AKA Direct expenses

Creditors - Suppliers that you owe amounts to

Debtors - Customers that owe amounts to you

Depreciation - The cost of a fixed asset over its useful life. Accounting for the normal wear and tear of the asset as it loses value over time.

Dividends - One way to pay company profits to shareholders

Drawings - Money or assets taken out of the business for personal use

Equity - Contributions from the owner

Expenses - Money going out

Financial Position - Shows the financial value of the business at a specified time.

Financial Year - A twelve month period, usually 1 Apr 20XX - 31 Mar 20XX.

General Ledger - List of all transactions that took place in a given financial period, e.g. date, description and amount of each transactions.

Goodwill - Intangible asset that adds value to the business through reputation and its customer base.

Gross profit - Proceeds after direct costs are deducted from sales.

Income - The amount coming in from customers for goods or services.

Liabilities - Things you owe.

Net profit - Proceeds after expenses are deducted from gross profit.

Profit - Proceeds after expenses are deducted from revenue.

Reconciliation - Process of making sure information in the accounting system match other documentation. e.g. bank statements.

Retained Earnings - Net profit from all past years accumulated together, less any dividends paid out to shareholders.

Revenue - Money coming in. Also known as Income.

Forecast - Uses past performance to predict what is achievable for a specified period. Tracks whether the budget will be met or not.

Budget - Outlines expectations for a given period.

Actuals - Shows actual performance of a company in a given or specified period.

Overheads - Costs that are not directly related to selling goods or services.

Year-end - The last day of the period covered in the financial statements.