Procurement
Procurement strategy
This stage chooses how the builder and major consultants/trades will be priced, appointed, and controlled. This page shows what a beginner residential developer in Auckland should check, who to ask, what evidence to save, and where to verify before committing money or instructions.
How to execute this stage
Micro-stage control plan
Work through each applicable step in order. A hold point means pause the dependent decision or work until the stated evidence and authorised review are complete.
01Lump sum vs cost-plusLevel 2 · Procurement
TaskCheckHold pointEvidenceRecordNext actionSimple explanation
Lump sum vs cost-plus
Technical context
Test this point against Procurement strategy, the current feasibility version and written input from Developer. Separate verified facts, professional opinion and assumptions.
Why it matters: This check can change yield, consent pathway, acquisition terms, funding, cost, programme or exit strategy. It must be resolved before the developer relies on procurement route.
Prerequisites
- Procurement strategy is current and its source/date are recorded.
- The project objective, feasibility version and decision deadline are clear.
- Developer has a focused brief where professional confirmation is required.
Checks
- Does Procurement strategy directly support the conclusion?
- Which information is verified, assumed, missing, superseded or contradictory?
- Has the feasibility, programme, risk register and decision register been updated?
Evidence to save
- Procurement strategy
- Written Developer response or a recorded reason it is not required
- Dated feasibility/risk/decision update
Hold point
Do not waive a condition, instruct design/work, commit funding, lodge, purchase, settle or represent the conclusion as confirmed until the authorised decision-maker has the required evidence and advice.
Stop or escalate when
- The source is missing, old, inconsistent or outside the reviewer's scope.
- The check changes yield, approval pathway, funding, legal rights, tax, safety or a material cost/programme assumption.
- A deadline is approaching and the responsible professional has not confirmed the position.
Documents and records
- Procurement strategy
- Procurement strategy template
- Tender comparison template
- Current feasibility, risk register and decision register
- Cost effect
- Record changes to land value, consultant/council cost, construction/civil cost, finance, holding cost, contingency and exit value before procurement route.
- Programme effect
- Record the decision deadline, dependencies, information lead time and effect on acquisition, consent, procurement, construction, sales or settlement milestones.
Next action
design completeness
Applicability: Confirm whether this check applies to the actual site, ownership, strategy, consent pathway, infrastructure and delivery model; record a reason when not applicable.
Use current site-specific documents and appropriately appointed professional advice. BuildPath does not make the development decision for you.
02design completenessLevel 2 · Procurement
TaskCheckHold pointEvidenceRecordNext actionSimple explanation
design completeness
Technical context
Test this point against Scope of works, the current feasibility version and written input from Project manager. Separate verified facts, professional opinion and assumptions.
Why it matters: This check can change yield, consent pathway, acquisition terms, funding, cost, programme or exit strategy. It must be resolved before the developer relies on tender list.
Prerequisites
- Scope of works is current and its source/date are recorded.
- The project objective, feasibility version and decision deadline are clear.
- Project manager has a focused brief where professional confirmation is required.
Checks
- Does Scope of works directly support the conclusion?
- Which information is verified, assumed, missing, superseded or contradictory?
- Has the feasibility, programme, risk register and decision register been updated?
Evidence to save
- Scope of works
- Written Project manager response or a recorded reason it is not required
- Dated feasibility/risk/decision update
Hold point
Do not waive a condition, instruct design/work, commit funding, lodge, purchase, settle or represent the conclusion as confirmed until the authorised decision-maker has the required evidence and advice.
Stop or escalate when
- The source is missing, old, inconsistent or outside the reviewer's scope.
- The check changes yield, approval pathway, funding, legal rights, tax, safety or a material cost/programme assumption.
- A deadline is approaching and the responsible professional has not confirmed the position.
Documents and records
- Scope of works
- Procurement strategy template
- Tender comparison template
- Current feasibility, risk register and decision register
- Cost effect
- Record changes to land value, consultant/council cost, construction/civil cost, finance, holding cost, contingency and exit value before tender list.
- Programme effect
- Record the decision deadline, dependencies, information lead time and effect on acquisition, consent, procurement, construction, sales or settlement milestones.
Next action
pricing risk
Applicability: Confirm whether this check applies to the actual site, ownership, strategy, consent pathway, infrastructure and delivery model; record a reason when not applicable.
Use current site-specific documents and appropriately appointed professional advice. BuildPath does not make the development decision for you.
03pricing riskLevel 2 · Procurement
TaskCheckHold pointEvidenceRecordNext actionSimple explanation
pricing risk
Technical context
Test this point against Tender list, the current feasibility version and written input from Quantity surveyor. Separate verified facts, professional opinion and assumptions.
Why it matters: This check can change yield, consent pathway, acquisition terms, funding, cost, programme or exit strategy. It must be resolved before the developer relies on contract type.
Prerequisites
- Tender list is current and its source/date are recorded.
- The project objective, feasibility version and decision deadline are clear.
- Quantity surveyor has a focused brief where professional confirmation is required.
Checks
- Does Tender list directly support the conclusion?
- Which information is verified, assumed, missing, superseded or contradictory?
- Has the feasibility, programme, risk register and decision register been updated?
Evidence to save
- Tender list
- Written Quantity surveyor response or a recorded reason it is not required
- Dated feasibility/risk/decision update
Hold point
Do not waive a condition, instruct design/work, commit funding, lodge, purchase, settle or represent the conclusion as confirmed until the authorised decision-maker has the required evidence and advice.
Stop or escalate when
- The source is missing, old, inconsistent or outside the reviewer's scope.
- The check changes yield, approval pathway, funding, legal rights, tax, safety or a material cost/programme assumption.
- A deadline is approaching and the responsible professional has not confirmed the position.
Documents and records
- Tender list
- Procurement strategy template
- Tender comparison template
- Current feasibility, risk register and decision register
- Cost effect
- Record changes to land value, consultant/council cost, construction/civil cost, finance, holding cost, contingency and exit value before contract type.
- Programme effect
- Record the decision deadline, dependencies, information lead time and effect on acquisition, consent, procurement, construction, sales or settlement milestones.
Next action
builder capability
Applicability: Confirm whether this check applies to the actual site, ownership, strategy, consent pathway, infrastructure and delivery model; record a reason when not applicable.
Use current site-specific documents and appropriately appointed professional advice. BuildPath does not make the development decision for you.
04builder capabilityLevel 2 · Procurement
TaskCheckHold pointEvidenceRecordNext actionSimple explanation
builder capability
Technical context
Test this point against Contract form, the current feasibility version and written input from Lawyer. Separate verified facts, professional opinion and assumptions.
Why it matters: This check can change yield, consent pathway, acquisition terms, funding, cost, programme or exit strategy. It must be resolved before the developer relies on risk allocation.
Prerequisites
- Contract form is current and its source/date are recorded.
- The project objective, feasibility version and decision deadline are clear.
- Lawyer has a focused brief where professional confirmation is required.
Checks
- Does Contract form directly support the conclusion?
- Which information is verified, assumed, missing, superseded or contradictory?
- Has the feasibility, programme, risk register and decision register been updated?
Evidence to save
- Contract form
- Written Lawyer response or a recorded reason it is not required
- Dated feasibility/risk/decision update
Hold point
Do not waive a condition, instruct design/work, commit funding, lodge, purchase, settle or represent the conclusion as confirmed until the authorised decision-maker has the required evidence and advice.
Stop or escalate when
- The source is missing, old, inconsistent or outside the reviewer's scope.
- The check changes yield, approval pathway, funding, legal rights, tax, safety or a material cost/programme assumption.
- A deadline is approaching and the responsible professional has not confirmed the position.
Documents and records
- Contract form
- Procurement strategy template
- Tender comparison template
- Current feasibility, risk register and decision register
- Cost effect
- Record changes to land value, consultant/council cost, construction/civil cost, finance, holding cost, contingency and exit value before risk allocation.
- Programme effect
- Record the decision deadline, dependencies, information lead time and effect on acquisition, consent, procurement, construction, sales or settlement milestones.
Next action
contract terms
Applicability: Confirm whether this check applies to the actual site, ownership, strategy, consent pathway, infrastructure and delivery model; record a reason when not applicable.
Use current site-specific documents and appropriately appointed professional advice. BuildPath does not make the development decision for you.
05contract termsLevel 2 · Procurement
TaskCheckHold pointEvidenceRecordNext actionSimple explanation
contract terms
Technical context
Test this point against Risk allocation notes, the current feasibility version and written input from Builder. Separate verified facts, professional opinion and assumptions.
Why it matters: This check can change yield, consent pathway, acquisition terms, funding, cost, programme or exit strategy. It must be resolved before the developer relies on who reviews tenders.
Prerequisites
- Risk allocation notes is current and its source/date are recorded.
- The project objective, feasibility version and decision deadline are clear.
- Builder has a focused brief where professional confirmation is required.
Checks
- Does Risk allocation notes directly support the conclusion?
- Which information is verified, assumed, missing, superseded or contradictory?
- Has the feasibility, programme, risk register and decision register been updated?
Evidence to save
- Risk allocation notes
- Written Builder response or a recorded reason it is not required
- Dated feasibility/risk/decision update
Hold point
Do not waive a condition, instruct design/work, commit funding, lodge, purchase, settle or represent the conclusion as confirmed until the authorised decision-maker has the required evidence and advice.
Stop or escalate when
- The source is missing, old, inconsistent or outside the reviewer's scope.
- The check changes yield, approval pathway, funding, legal rights, tax, safety or a material cost/programme assumption.
- A deadline is approaching and the responsible professional has not confirmed the position.
Documents and records
- Risk allocation notes
- Procurement strategy template
- Tender comparison template
- Current feasibility, risk register and decision register
- Cost effect
- Record changes to land value, consultant/council cost, construction/civil cost, finance, holding cost, contingency and exit value before who reviews tenders.
- Programme effect
- Record the decision deadline, dependencies, information lead time and effect on acquisition, consent, procurement, construction, sales or settlement milestones.
Next action
insurance
Applicability: Confirm whether this check applies to the actual site, ownership, strategy, consent pathway, infrastructure and delivery model; record a reason when not applicable.
Use current site-specific documents and appropriately appointed professional advice. BuildPath does not make the development decision for you.
06insuranceLevel 2 · Procurement
TaskCheckHold pointEvidenceRecordNext actionSimple explanation
insurance
Technical context
Test this point against Procurement strategy, the current feasibility version and written input from Architect. Separate verified facts, professional opinion and assumptions.
Why it matters: This check can change yield, consent pathway, acquisition terms, funding, cost, programme or exit strategy. It must be resolved before the developer relies on procurement route.
Prerequisites
- Procurement strategy is current and its source/date are recorded.
- The project objective, feasibility version and decision deadline are clear.
- Architect has a focused brief where professional confirmation is required.
Checks
- Does Procurement strategy directly support the conclusion?
- Which information is verified, assumed, missing, superseded or contradictory?
- Has the feasibility, programme, risk register and decision register been updated?
Evidence to save
- Procurement strategy
- Written Architect response or a recorded reason it is not required
- Dated feasibility/risk/decision update
Hold point
Do not waive a condition, instruct design/work, commit funding, lodge, purchase, settle or represent the conclusion as confirmed until the authorised decision-maker has the required evidence and advice.
Stop or escalate when
- The source is missing, old, inconsistent or outside the reviewer's scope.
- The check changes yield, approval pathway, funding, legal rights, tax, safety or a material cost/programme assumption.
- A deadline is approaching and the responsible professional has not confirmed the position.
Documents and records
- Procurement strategy
- Procurement strategy template
- Tender comparison template
- Current feasibility, risk register and decision register
- Cost effect
- Record changes to land value, consultant/council cost, construction/civil cost, finance, holding cost, contingency and exit value before procurement route.
- Programme effect
- Record the decision deadline, dependencies, information lead time and effect on acquisition, consent, procurement, construction, sales or settlement milestones.
Next action
programme
Applicability: Confirm whether this check applies to the actual site, ownership, strategy, consent pathway, infrastructure and delivery model; record a reason when not applicable.
Use current site-specific documents and appropriately appointed professional advice. BuildPath does not make the development decision for you.
07programmeLevel 2 · Procurement
TaskCheckHold pointEvidenceRecordNext actionSimple explanation
programme
Technical context
Test this point against Scope of works, the current feasibility version and written input from Developer. Separate verified facts, professional opinion and assumptions.
Why it matters: This check can change yield, consent pathway, acquisition terms, funding, cost, programme or exit strategy. It must be resolved before the developer relies on tender list.
Prerequisites
- Scope of works is current and its source/date are recorded.
- The project objective, feasibility version and decision deadline are clear.
- Developer has a focused brief where professional confirmation is required.
Checks
- Does Scope of works directly support the conclusion?
- Which information is verified, assumed, missing, superseded or contradictory?
- Has the feasibility, programme, risk register and decision register been updated?
Evidence to save
- Scope of works
- Written Developer response or a recorded reason it is not required
- Dated feasibility/risk/decision update
Hold point
Do not waive a condition, instruct design/work, commit funding, lodge, purchase, settle or represent the conclusion as confirmed until the authorised decision-maker has the required evidence and advice.
Stop or escalate when
- The source is missing, old, inconsistent or outside the reviewer's scope.
- The check changes yield, approval pathway, funding, legal rights, tax, safety or a material cost/programme assumption.
- A deadline is approaching and the responsible professional has not confirmed the position.
Documents and records
- Scope of works
- Procurement strategy template
- Tender comparison template
- Current feasibility, risk register and decision register
- Cost effect
- Record changes to land value, consultant/council cost, construction/civil cost, finance, holding cost, contingency and exit value before tender list.
- Programme effect
- Record the decision deadline, dependencies, information lead time and effect on acquisition, consent, procurement, construction, sales or settlement milestones.
Next action
Make and record the stage decision: Tender list. Then open the next applicable development stage.
Applicability: Confirm whether this check applies to the actual site, ownership, strategy, consent pathway, infrastructure and delivery model; record a reason when not applicable.
Use current site-specific documents and appropriately appointed professional advice. BuildPath does not make the development decision for you.
Developer go / no-go control
Decision gates before the next commitment
A gate records whether evidence supports a commercial decision. It does not replace advice or predict an authority, lender, purchaser or market outcome.
Before construction commitment and site start
Decision: Award/start, negotiate scope, stage work, or pause
Minimum evidence
- • Consent/approval status and pre-start conditions are understood
- • Comparable tender scope, exclusions, programme and evidence deliverables are reconciled
- • Contract, insurance, H&S, finance drawdown and change controls are ready
Update before deciding
- • Contract sum, provisional sums and owner-supplied scope
- • Construction cashflow, interest and contingency
- • Completion/CCC/settlement dependencies
Stop / escalate when
- • Work would start without required approval or current documents
- • Critical exclusions/gaps or insurance responsibilities are unresolved
- • Funding cannot support the updated downside cashflow
What this stage means
- Procurement strategy is the part of the project where the developer turns an idea into a checked decision, not a guess.
- The stage should connect market demand, planning rules, legal constraints, design, cost, funding, time, risk, and exit strategy.
- For Auckland residential development, the answer is site-specific. The same idea can be low risk on one site and unworkable on the next because of zoning, overlays, title interests, services, slope, flooding, neighbours, or finance.
Why this stage matters
- Early mistakes become expensive because land, design, consultants, holding costs, consent fees, and finance costs continue even when the project is paused.
- The developer needs written evidence for lenders, consultants, lawyers, valuers, builders, purchasers, and future dispute protection.
- This stage usually needs verification from Relevant professional advice, MBIE Build to the consent before the developer treats the conclusion as reliable.
Step-by-step guide
- 1Define the decision needed at the end of this stage and the date it is needed by.
- 2Gather the stage documents: Procurement strategy, Scope of works, Tender list, Contract form, and the remaining stage records.
- 3Read the documents once for understanding, then again to list unknowns, risks, contradictions, missing evidence, and professional questions.
- 4Ask the responsible professionals to confirm the critical points: Developer, Project manager, Quantity surveyor, Lawyer.
- 5Update the feasibility, programme, risk register, and decision register with source references and dates.
- 6Decide whether to proceed, pause, redesign, renegotiate, add conditions, seek more advice, or abandon the option.
- 7Save the evidence in a dated folder and write a short stage closeout note explaining what was decided and why.
What the developer must do
- Write down the development objective for procurement strategy in one clear paragraph: build-to-sell, build-to-rent, retain one dwelling, subdivide, renovate, or staged development.
- Open the current feasibility, programme, decision register, risk register, and due diligence folder before making new commitments.
- Collect the documents needed for this stage: Procurement strategy, Scope of works, Tender list, Contract form, Risk allocation notes.
- Send focused questions to the right people: Developer, Project manager, Quantity surveyor, Lawyer, Builder, Architect.
- Record assumptions separately from verified facts so the feasibility does not look more certain than it really is.
- Update cost, time, consent, finance, and sales assumptions immediately after receiving new information.
- Escalate anything that changes yield, sale price, cost, timing, consent pathway, title, funding, or settlement risk.
Verification
Source / where to check
Use current official information and the controlled documents for the actual project.
Planner, surveyor, architect, engineer, quantity surveyor, lawyer, accountant, lender, valuer, real estate agent, and other project specialists must confirm site-specific decisions.
MBIE guidance explains that work should be built to the issued building consent, inspections must be managed, and records/certificates should be kept for CCC.
Project-specific consented documents and professional advice override generic guidance.
Common mistakes
- Treating an agent comment, generic online rule, or old document as verified site-specific advice.
- Forgetting to update the feasibility after design, consent, finance, or market information changes.
- Not allowing enough contingency, professional fees, council fees, finance costs, holding costs, and time risk.
- Failing to keep written records of who confirmed what and when.
- Using procurement strategy to push ahead even when the red flags show the project should pause.
Common risks
- Yield reduces after proper planning, engineering, title, or infrastructure review.
- Costs increase after QS, builder, civil, geotechnical, demolition, asbestos, or consent information is received.
- Programme moves out because consultant inputs, council RFIs, neighbour issues, finance, title, or construction sequencing take longer than assumed.
- Funding or sales assumptions change before the project reaches settlement.
- The developer relies on unverified information and loses negotiating power or misses a due diligence deadline.
Common costs
- Professional fees for planner, architect/designer, surveyor, engineer, QS, lawyer, accountant, valuer, and lender reports.
- Council fees, consent fees, development contribution estimates, engineering approvals, infrastructure checks, and inspection/monitoring costs where relevant.
- Design revisions, reports, investigations, demolition/asbestos work, service location, geotechnical testing, and valuation updates.
- Holding costs such as interest, rates, insurance, utilities, temporary maintenance, and security.
- Contingency for unverified conditions until the relevant professional confirms them.
Quotes and fee proposals to obtain
- Obtain written fee proposals or quotations from the relevant stage professionals: Developer, Project manager, Quantity surveyor, Lawyer, Builder, Architect.
- Issue the same current documents and a clear scope to each party so prices, exclusions, assumptions, deliverables, lead times, and programme can be compared.
- Identify council, authority, investigation, testing, design, construction, monitoring, and close-out charges that may sit outside a consultant or contractor quote.
- Record every provisional sum, estimate, exclusion, expiry date, dependency, and unverified allowance in the Quote Register and feasibility.
- Do not approve an appointment or purchase order until scope ownership, evidence required, payment terms, variation process, insurance or competency checks, and completion deliverables are understood.
Common delays
- Waiting for property file, LIM, title instruments, survey information, consultant reports, or council responses.
- Design changes caused by planning controls, infrastructure constraints, engineering findings, budget pressure, or market feedback.
- Lender, valuer, lawyer, or purchaser conditions not being satisfied on time.
- Council RFI responses needing more consultant work than expected.
- Construction or subdivision closeout documents not matching settlement or sales deadlines.
Common consultant questions
- For Procurement strategy, what are the three highest risks that could change cost, time, yield, or approval pathway?
- Which parts of your advice are confirmed, which are assumptions, and which require another professional to confirm?
- What documents did you rely on, and are any documents missing, outdated, superseded, or inconsistent?
- What decision does the developer need to make now, and what should wait until more information is available?
- What wording should go into the decision register, consultant meeting minutes, or lender/client update?
Red flags
- A professional says the issue is outside their scope and no one else has been asked to confirm it.
- The feasibility only works if optimistic sale prices, low construction costs, fast consent, low interest, and no delays all happen together.
- A title, planning, flooding, geotechnical, access, service, or covenant issue may prevent the intended yield.
- A seller, agent, builder, or consultant pressures the developer to waive due diligence before core checks are complete.
- The project file has no written evidence for a major decision.
When to stop and get professional advice
- Stop and get professional advice when title, easements, covenants, unit title, cross lease, or subdivision matters affect the proposal.
- Stop and get professional advice when zoning, overlays, activity status, notification, infrastructure capacity, flooding, geotechnical, contamination, or heritage could affect yield.
- Stop and get professional advice when GST, income tax, entity structure, lending, guarantees, or sale contract terms affect the decision.
- Stop and get professional advice when the developer is about to sign, waive a condition, lodge consent, start work, approve a variation, accept practical completion, or settle.
Decisions that must be made
- Procurement route
- Tender list
- Contract type
- Risk allocation
- Who reviews tenders
Evidence to save
- Dated source documents and consultant advice.
- Feasibility version showing the assumptions used at the time of decision.
- Risk register and decision register entries.
- Meeting notes, emails, marked-up plans, calculations, photos, and council/lender/consultant responses.
- Clear note of who approved the next step and any conditions attached to that approval.
Beginner-friendly example
The developer waits for enough consent documentation before tendering a fixed price so builders price the same scope.
Use this in my project
Turn procurement strategy into controlled action
Open the relevant workspace register, create the project-specific record, link the controlling documents and preserve evidence. The guide does not automatically approve or verify the action.