NZIOB Government Procurement

News /
15 May 2016

From the desk of the National President, New Zealand Institute of Building.

The New Zealand Institute of Building (NZIOB); the professional industry body representing the construction industry, says that they are heartened to hear that the Government is looking to implement changes to the manner in which consultants and contractors are procured for Government construction projects.

The Minister of Construction and Housing, Maurice Williamson was quoted in Saturday’s Herald as saying that” the ‘cheapest price wins' is a mentality that we're changing,". The comment followed revelations of an expensive school remedial project, and alludes to the new rules for Government procurement that are being proposed to take effect from April 2014. According to the Minister of Economic Development, Stephen Joyce, these new rules shift the emphasis from who can deliver the lowest cost initial project to who can deliver the best value for money and other direct financial benefits over the life of a project.

The NZIOB is very supportive of the sea-change in Government procurement that appears to be occurring. NZIOB National President, Warren Chapman commented that the ‘cheapest price wins’ mentality not only lends itself to an adversarial relationship amongst all construction project participants, it is focused inclusively on the short term delivery costs of a project and not on whole of life analysis that includes consideration of material durability and on-going running costs of a building.

“The administration of current Government procurement methods are short-sighted and do not provide the best long-term result for the New Zealand taxpayer” says Chapman who believes that the requirement for Government procurement methods to include a level of contestability, can be incorporated in any analysis that takes a wider view than short term delivery costs.

New Zealand Institute of Building

The professional institute in New Zealand for persons engaged in building practice.

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