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

Gordon Campbell: On The Demise Of The Tokyo Olympics

As the Covid vaccines roll out around the world, the Tokyo Olympics are looming as a major test of when (and whether) something akin to global normality can return – to international travel, to global tourism, to professional sport and to mass gatherings of human beings. Currently though, it looks like a forlorn hope that Japan will be able to host the Olympics in late July. Herd immunity on any significant scale seems possible only by December 2021, at the earliest... More>>

 

New Zealand Government: Cook Islanders To Resume Travel To New Zealand

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such ... More>>

ALSO:

A New Year: No politicians at Rātana in 2021

Annual celebrations at Rātana pā will be different this year, amid a decision to hold an internal hui for church adherents only… More>>

ALSO:

Government: Pre-Departure Testing Extended To All Passengers To New Zealand

To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. More>>

ALSO:

Covid: Border Exception for 1000 International Students

The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began....More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels