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#20-17 Procurement - Invoice payment terms for all Waka Kotahi suppliers

Published: | Category: Technical advice note | Audiences: Road traffic engineers & consultants, Roading contractors

This note is to advise that there is an instruction to staff to help to facilitate a quick turn-around on invoices to help businesses meet their costs.  This note shall apply from the date of publication.  The aim is not to over-rule the required processes but to bolster the turn-around on invoices once they are confirmed.

Publication details

  • Author:
  • Published: 15 September 2020
  • Reference: 20-17
  • Contact: procurement@nzta.govt.nz

Purpose

This note is to advise that there is an issue with the use of timber poles for ground improvement where used in conjunction with a structure and outlines interim requirements pending the next Bridge manual update.  This note shall apply from the date of publication.

Extent of the notice

All Government organisations have been asked to play their part in keeping the New Zealand economy moving. One of the key roles we can play at Waka Kotahi NZ Transport Agency is speeding up our invoice payment practices.  

Waka Kotahi, along with the rest of Government, has been asked to target paying all supplier invoices within 10 business days of receiving the invoice.

It’s important to note that the current approval processes for claims from State highway projects and approved organisations are not impacted by the changes to the payment terms, requiring payment of contract invoices within 10 working days. This will meet the requirement that all claims and vouchers will be paid within the 10 business days target.

Changes

Suppliers don’t need to do anything differently in respect of the current processes for meeting the payment requirements for their contracts. Waka Kotahi will be working internally to improve invoice payment practices for all suppliers, regardless of the payment terms in their supply contracts, to ensure that these are not more than 10 days in any situation.

Changes to proforma manuals State highway professional services contract proforma manual (SM030), State highway construction contract proforma manual (SM031) and State highway maintenance contract proforma manual (SM032) will be made in future updates to reflect payment of invoices within 10 business days and users will be notified when these changes have been made to the documents.

Communication plan

Our target audience for this advisory note is generally internal staff giving approvals and those external agents certifying payments.  Advice of these changes will be promulgated by:

  • This note advising the amended practice 
  • Direct information via the website and intranet
  • Direct communication with Contract teams.

Implementation

The implementation should be fairly simple as the audience is specific and small.  The aim is to target that audience using the communication exercise.

Given this update is a single, specific issue, it was not considered necessary to conduct company-wide, specific training on the changes.

Effectiveness review

It is important to check that this this has been delivered effectively and the desired outcome achieved.  A review of the effectiveness of the changes will be undertaken by working with Investment and Finance to evaluate any changes in payment timings.  Should the expectation not be being met, the issue will be escalated and further consideration will be given to improving performance.

Publication details

Author: Waka Kotahi NZ Transport Agency
Published: June 2020
Version: 1
Found at: https://www.nzta.govt.nz/roads-and-rail/highways-information-portal/technical-advice-note/(external link)

Further information

If you have any questions or feedback, please contact procurement@nzta.govt.nz.

 

[signed]

David Darwin - Chair, Ratification Group

Vanessa Browne - Delegated Approver

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