Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Change needed to reduce housing and infrastructure deficit

New Zealand’s construction industry desperately needs to change quickly to address the country’s housing and infrastructure deficit, and the Construction Industry Council is the organisation best placed to lead this change, say incoming Chair Graham Burke and Deputy Chair Malcolm Fleming.

Mr Burke said while there were some good initiatives underway, such as the Construction Sector Accord and introduction of new procurement rules, the industry was hard to penetrate because it had so many parts and so many small businesses.

“It is important to drive change though the whole industry, not just the big companies and clients. Small to medium enterprises and subcontractors are a critical component of the construction industry, and there is no way we can address the housing and infrastructure deficit without them.”

He said the only way to effectively engage with the entire industry was through industry associations, which provide advice to and represent the interests of those small companies.

Because of this, the Construction Industry Council – an overarching body of more than 30 construction industry associations – was the perfect body to lead the change because of its very wide coverage and involvement at all levels of the construction industry.

Because the Council represented a broad cross section of construction associations, it was well-placed to communicate at all levels and provide leadership around that change.

Mr Burke said a good example of the CIC’s leadership was the successful establishment of Construction Health and Safety New Zealand (CHASNZ), a charitable trust uniting the industry to focus on health and safety across construction sites and to start addressing high suicide rates in the industry. The Council had also recently developed an industry endorsed proposal designed to promote careers within the built environment.

A current focus is the industry’s need to adequately address recent building contractor failures, which affects everyone including; homeowners, commercial property owners and contractors. Often, the people most impacted in these situations are the subcontractors who run the risk of not getting paid for the work they perform. Should the project hit difficulties. ‘Subbies’ literally risked losing their homes in the fallout of a main contractor or developer failure, he said.

“We have all seen what is happening. There’s a lot of work out there with companies struggling to cope. Many contractors have taken on too much risk and their margins have become paper-thin. But that’s all changing, and quickly.”

Pushing responsibility for project risk down the chain to contractors and subcontractors was very unfair, project risk should sit with those best able to manage the risk. Expensive lessons had been learned, and even business owners not directly impacted were saying, ‘next time I could be left out of pocket’.

He said good clients were increasingly teaming up with reputable main contractors who are supported by a skilled subcontractor supply-chain, with construction businesses now more likely to shun clients and not bid on projects offering poor or unreasonable terms and conditions.

He said now was the time for the construction industry to stand up and be part of that change at all levels.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Data Investment: Govt Backs Te Reo, Environmental Data Research

The Government is investing in ambitious research that will digitise Te Reo, grow the low-carbon protein efficient aquaculture industry, help interpret environmental trends, and large data sets says Research, Science and Innovation Minister Megan ... More>>

ALSO:

Unsolicited Messages: NZ Company Fined $36,000

The New Zealand Trustees Association (NZTA) and founder, Errol Anderson, have been fined a total penalty of NZ$ 44,000 in the Auckland High Court for sending unsolicited commercial electronic messages. More>>

Marine And Freshwater Reports: EDS Calls For Urgent Action On Marine Management

“There are some big issues to address. These include many marine species and habitats that are in serious trouble. Of the sample investigated, the report finds that 22% of marine mammals, 90% of seabirds and 80% of shorebirds are threatened with or actually at risk of extinction..." More>>

ALSO:

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO: