14 Apr 2019

Government announces construction industry agreement

1:55 pm on 14 April 2019

The Government has announced an agreement with the construction industry to transform and improve the sector.

The signed pledge.

The signed pledge. Photo: RNZ / Katie Scotcher

Ministers, government agencies and industry leaders, helped develop the agreement, which includes a number of government, industry and shared commitments.

They include raising the workforce capability and capacity, improving business performance and the building constents process.

Under the agreement, the Government and the industry are able to hold each other accountable.

The Prime Minister, Jacinda Ardern, said government agencies are already working to support the commitments.

"Together we have identified the priority areas we need to work on. The Government will lead where it can have maximum impact such as better procurement practices, improved Government construction pipeline management, and stronger building regulations."

Building and Construction Minister Jenny Salesa said the agreement helps address challenges facing the sector.

"Industry representatives have identified the need for enhanced leadership and collaboration within the sector. Better alignment will support the other industry-led priority work areas of improving businesses performance and promoting a culture of trust between all parties in the construction eco-system.

"Industry and Government will work together on a further four priorities which are to expand workforce capability and capacity, rebalance risk, improve health and safety and boost the supply of affordable and durable housing."

Chair of the Accord Development Group and chief executive of Fletcher Contruction, Peter Reidy, said the Accord provides a platform for change.

"The Accord recognises that the way the construction industry, its clients and government have behaved in the past has created systemic problems that are having an impact on the New Zealand economy and the wellbeing of New Zealanders.

"'It commits those working in, and with, the industry to start treating each other differently, so we can replace the current adversarial culture with one based on respect, trust and shared responsibility," he said. "We're agreeing to uphold new standards of behaviour and to be held accountable if we don't."

Industry leaders will now work with the Government to develop a more detailed plan.

Read more about the Construction Sector Accord here.

Government commitments

  • Better procurement practices and improved pipeline management
  • Improved building regulatory systems and consenting processes

Industry commitments

  • Enhanced industry leadership, collaboration and organisation
  • Better business performance
  • Improved culture and reputation

Shared by Government and Industry

  • Grow workforce capability and capacity
  • Better risk management and fairer risk allocation
  • Improved health and safety at work
  • More houses and better durability

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