Contracts to be treated the same under new school property rules

A new Crown agency is being established to manage New Zealand’s school property portfolio, and the Ministry of Education has confirmed that contracts will still be managed in the same way  

Announced in June, the New Zealand School Property Agency (NZSPA) will take over the planning and delivery of school property projects nationwide, including new builds, upgrades, and ongoing maintenance. The new agency is part of the Government’s $431m investment in school infrastructure, which includes $58m specifically earmarked to fast-track minor maintenance work at more than 2,300 schools. 

While the structural shift will see greater coordination across the school property system, Chief Executive for School Property Jerome Sheppard says there will be no requirement for school boards to centralise procurement through NZSPA. 

“School boards are currently required to openly tender any contract worth more than $100,000 through the Government Electronic Tenders Service (GETS) and this process will continue to be available,” Sheppard said. “The change to a New Zealand School Property Agency will not require School boards to tender their work through a centralised agency.” 

Sheppard added that builders who have established relationships with local schools can continue to be engaged directly for small-scale work, particularly as the additional maintenance funding flows through. 

“When work is less than $100,000…it may be best to directly engage with suppliers to complete the works,” he said. 

Most of the 2,300 schools have received some of the $58m funding for repairs and are proceeding to undertake maintenance activities such as building washdowns, cladding repairs, painting and other minor maintenance works. 

Support for small and medium contractors 

While the new agency will introduce more national-level coordination and standardisation, Sheppard said it is not intended to exclude smaller operators. 

“All suppliers play a critical role in our ability to successfully maintain the school property portfolio across the country,” he said. “We will continue to provide opportunities for different sizes of suppliers to contribute to the portfolio and deliver cost-effective solutions through local opportunities and engagement, as well as leveraging our scale from a national perspective when it makes sense to do so.” 

Consent pathways and modular builds 

The NZSPA will also play a leading role in advancing the use of modular, standardised school buildings – a move designed to simplify the procurement and consent process. A suite of offsite-manufactured building designs is in development, with the Ministry of Education retaining ownership of the intellectual property. 

While designs will be standardised for efficiency, schools will still have some flexibility over internal layouts, finishes and site-specific elements. 

“We are currently developing a suite of fully standardised, cost-efficient building designs. These designs are intended to streamline delivery and ensure consistency across school infrastructure projects. The Ministry will retain ownership of the intellectual property for these designs,” said Sheppard.  

The use of multi-proof building consents is also being explored as part of the offsite-manufacturing work, and Sheppard said it will be progressed further during 2026. The Ministry of Education is also looking at “better ways to progress the consenting regimes” for buildings of this type. 

“Seeking building consents through local authorities continues to be a variable experience for school property and so we are looking for better ways to progress through the consenting regimes,” he said. 

While the long-term aim of the NZSPA is to bring greater national coordination to school property delivery, Sheppard said local supplier networks and day-to-day contract flexibility remain essential parts of the picture.