Building industry supports new procurement guidelines

Building industry supports Government’s new construction procurement guidelines

The building and construction sector welcomes the announcement by Ministers Twyford and Salesa of the revised Construction Procurement Guidelines, released today.

The Guidelines acknowledge and address critical issues. The construction sector has been calling for fairer contract terms and better allocation of risk.

“For a number of years, construction contractors have been asking for change in how some Government agencies procure,” says Registered Master Builders Chief Executive, David Kelly. “We strongly support the release of the Guidelines, which have the potential to significantly improve the quality and consistency of how Government construction projects are delivered.

“It’s unsustainable for Government agencies to drive contract prices down and pass an unfair amount of risk onto the contractor. All this does is create an adversarial relationship and a culture of mistrust between parties, as well as leaving contractors potentially financially vulnerable.

“These Guidelines provide an opportunity to reset this culture by having agencies and contractors working more collaboratively to achieve fairer contract and risk allocations when delivering projects,” says Kelly.

“We are pleased to see the Government take another important step towards improving the health and vitality of the sector. This is a good initiative, showing the Government is committed to change as part of the Construction Sector Accord.”

“This isn’t just about improving the sector’s health. A vibrant building and construction sector is the infrastructure that underpins the New Zealand economy.”

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