Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

NZIOB welcomes Government Construction Procurement Guideline

NZIOB welcomes Government Construction Procurement Guidelines

The New Zealand Institute of Building (NZIOB) has welcomed the announcement of the second edition of the Government Construction Procurement Guidelines released earlier today by the Minister for Building and Construction, Hon Jenny Salesa, and the Minister for Economic Development, Hon Phil Twyford.

The NZIOB says the new Construction Procurement Guidelines mark a very positive shift in the way government agencies evaluate design consultants and contractors, who are bidding for government building work.

Malcolm Fleming, NZIOB Chief Executive, says “We appear to have moved away from the ‘lowest price is best’ model that has become an embedded practice, one which has led to poor outcomes for the construction sector and the built environment alike.”

For some time, the NZIOB has been drawing attention to the strong link between the current low margin/high-risk environment, and the sector’s lamentable low productivity rates. In the NZIOB’s view, the twin issues of poor productivity and low profitability feed one another i.e., companies that have poor productivity will naturally struggle to be profitable; while those who are not profitable, will find it difficult to invest in innovative processes and technologies that will raise productivity.

“To break the cycle, we need to shift our procurement practices to those that: promote innovation adoption, encourage the consideration of Early Contractor Involvement, be transparent and fair about risk transfer with the construction supply chain, and encourage procurers to evaluate construction projects through both capital expenditure and operating expenditure lenses i.e. adopt ‘whole of life’ evaluation models. The new Government Construction Procurement Guidelines do this, reflecting the shift in approach that the construction sector has been asking for.

“That the bulk of government agencies are either: mandated to use, expected to use, or encouraged to use the new Government Procurement Guidelines, sends a strong message from government that they have taken up the construction sector’s challenge: that government undertakes quality engagement with the sector, and resets its procurement practices to establish itself as a procurer of choice.

“As evidenced by the high-profile main contractor failures and difficulties of the past few years, the construction sector has been found wanting in its ability to deal with the emergence of risk transfer and unfair contractual practices such as ‘risk by stealth’, a great deal of which has been evident in government procurement contacts. A positive outcome has been the establishment of the Construction Sector Accord, the central premise of which is to improve the government - construction sector relationship.

“The development of a more enlightened, transparent, and fair approach to construction procurement is an excellent first step and one that is welcomed by the broader building industry,” says Malcolm Fleming.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Campbell on: the local body election result in Wellington

For obvious reasons, politics is more of a big deal in the capital city than anywhere else in the country. Even so, fewer than four in ten eligible voters bothered to vote in Saturday’s local body elections in Wellington (turnout 39.66%).

Even less was felt to be at stake this time around than in 2016, when 45% of the electorate voted Justin Lester into the mayoralty.

To put it mildly, the Lester-led Council failed to live up to expectations. Lester will be remembered mainly for the fact that somehow, he managed to lose this election. . More>>

 
 

Could Do Better: Post-Sroubek Review Of Deportation Info

Ms Tremain acknowledges that the review highlighted some aspects of the process that can be improved and makes five main recommendations to strengthen the existing processes for preparing files for decision-makers. Those recommendations are: More>>

ALSO:

Gordon Campbell: On A New Book On The Leaky Homes Scandal

We all know that journalism is short of cash and under pressure from the speed, brevity and clickbait pressures of the 24/7 news cycle… but hey, given the right subject and a sufficiently stubborn journalist, it can still surpass most of the works of the academic historians... More>>

Regulation: Review Finds NZTA Road Safety Failings

The independent review, carried out by consultant agency MartinJenkins, lists at least 10 reasons for the failures including the agency being focused on customer service at the expense of its policing functions. More>>

ALSO:

Rod Carr: Climate Change Commission Chair-Designate Announced

Climate Change Minister James Shaw has today announced the appointment of Dr Rod Carr as Chair-designate for the Climate Change Commission. More>>

ALSO:

Compliance Complaints: 'Putting Right' Holidays Act Underpayment In Health

The Government is putting right a decade’s worth of underpayment to nurses, doctors and other health workers, says Health Minister Dr David Clark. More>>

ALSO:

IPCA: Disasterous Police Pursuit, Excessive Use Of Dogs

At no stage did Police follow the correct procedure for the commencement of a pursuit... A Police dog handler used his dog to help with the arrest of two of the young people. One suffered injuries resulting in his hospitalisation, and the Authority found that the use of the dog was an excessive use of force. More>>

ALSO:

‘Hard Place To Be Happy’: Report On Youth Residential Care

Children’s Commissioner Andrew Becroft says the report, A Hard Place to be Happy, contains important challenges from children and young people, aged 9 to 17, about their experiences in care and protection residences. “I found this report extremely difficult to read, and I think most New Zealanders would too.” More>>

Africa And Middle East Refugees: 'Family Link' Restriction Removed

The founder of the Double the Quota campaign has applauded the coalition government for Friday’s announcement that a discriminatory policy would be removed. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels