On 9 October 2025, the Ministry of Business, Innovation and Employment (MBIE) published the proposed 5th edition of the New Zealand Government Procurement Rules and signalled that the new edition will take effect on 1 December 2025. One of the more material updates is the introduction of Rule 34 (Contract Management System) and Rule 35 (Contract Management Plan).
In practice, this means agencies covered by the Rules will be expected to:
- maintain a clear, system-based record of the contracts they have; and
- manage those contracts in a way that is proportionate to the contract’s value, risk and duration.
For agencies already invested in the Microsoft ecosystem (Microsoft 365, Dynamics 365, Business Central, Finance & Operations), this requirement can be met with a Dynamics 365 native contract management solution, such as Klevr Contracts, which can integrate with Microsoft ERP to provide finance, procurement and contract owners with a unified view of contract data, without introducing a standalone, isolated platform.
What does Rule 34 say?
Rule 34: Contract Management System (procurement.govt.nz)
Rule 34 requires agencies to have a systematic approach to identifying and managing their contracts. At a minimum, the system must be able to record:
- supplier name and identifier (e.g. NZBN),
- where the contract is stored,
- the responsible officer/contract owner,
- supplier contact details,
- start and end dates, and
- the ability to determine the actual amount spent under the contract.
This is best achieved through a structured contract record in an enterprise system, not through ad-hoc folders or personal records.
What does Rule 35 say?
Rule 35: Contract Management Plan (procurement.govt.nz)
Rule 35 requires agencies to maintain a contract management plan. Importantly, MBIE allows this to be “right sized”, higher-value or higher-risk contracts require more detailed management activity, while lower-value contracts may be managed under a lighter, category based approach. The key point is that the planning is deliberate and recorded.
Contract Lifecycle Management on Microsoft Stack
Many NZ agencies are already standardising on Microsoft because it provides:
- a secure identity model (Azure AD / Entra ID),
- familiar user experience,
- strong integration options across Dynamics 365 applications, and
- reporting through Power BI.
For these agencies, the lowest-friction approach to Rules 34 and 35 is to:
- Create the contract record in Dynamics 365 so it inherits Microsoft security and auditing.
- Use a Dynamics 365–built solution (e.g. Klevr Contracts) rather than procuring a separate CLM platform.
- Integrate to Dynamics 365 Business Central or Dynamics 365 Finance & Operations using prebuilt integration so contract information can be viewed alongside purchasing and spend data.
- Continue using Microsoft tools such as SharePoint for document storage and Power BI for oversight and reporting.
This approach meets the intent of the new rules while remaining inside the existing technology and security standards used across government.
Can we set up a Contract Management System in a month?
Timeframes will vary by agency size and data quality, but for agencies already on Microsoft, a staged rollout is realistic. A typical approach:
- Consolidate current contract information
Gather current contract details from existing registers and repositories and normalise them for loading into Dynamics 365. The goal is to move from dispersed records to a single, system-based source. - Deploy the contract record in Dynamics 365
A Dynamics 365–native application like Klevr Contracts already provides the fields required under Rule 34 (supplier, dates, owner, storage location, etc.), reducing design and configuration effort. - Apply proportionate tiers for Rule 35
This aligns directly with the “right sized” language in Rule 35. Define 2–3 management tiers, for example:-
- Tier 1: (high value/risk/duration): full contract management plan
- Tier 2: abbreviated plan
- Tier 3: covered by a category or panel plan
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- Connect to Microsoft ERP (BC/F&O/CRM) as required
Because Klevr is built for the Microsoft stack, it can be integrated so that finance and procurement staff see contract details in the same environment as purchasing and supplier records, without commissioning a large middleware project. - Publish oversight dashboards in Power BI
Examples include: contracts expiring in the next 90 days, contracts without an assigned plan, contracts by tier or supplier. These views provide management and audit with immediate assurance.
Why not simply buy a standalone CLM?
A standalone CLM is one way to respond, but Rule 34 itself notes that agencies may use outputs from their financial or ERP systems to manage contracts. For Microsoft-based agencies, introducing a separate platform often creates additional work in user management, integration, and reporting.
By staying Microsoft-native:
- you retain a familiar interface for users,
- you leverage existing Microsoft security and roles,
- upgrades and platform changes are simpler to manage,
- and contract information can be linked to finance/procurement processes without large, complex integration projects.
This is the gap a Dynamics 365 native solution such as Klevr Contracts is designed to fill, it meets the Rules’ requirements while fitting the technology stack government agencies already operate.