Cutting red tape?

By and - , Build 172

Reform in the construction sector is on the agenda, with the government calling on industry to have its say on a broad range of proposed changes aimed at lifting quality and addressing other key concerns.

THE MINISTRY of Business, Innovation and Employment (MBIE) has released a discussion document on the building and construction legislative reform programme resulting from over a year of engagement with industry representatives.

Far-reaching reforms open for consultation

The discussion document details proposals for addressing long-standing issues within the building and construction sector and initiating a public round of consultation.

The reforms have been dubbed far-reaching, and MBIE has included a full suite of options. These cover topics from building products and methods through to risk and liability allocations, occupational regulations and increased offences and penalties.

The discussion document is labelled as a response to low productivity within the sector as well as inefficient practices, poor health and safety and the ever-increasing skills shortage.

MBIE General Manager of Building System Performance Anna Butler says the reforms are one of five workstreams currently under way at the Ministry targeted at ‘lifting quality in the building sector so that things go right the first time and there are fairer outcomes if they go wrong’.

Industry feedback informed document

The discussion document, which is informed by feedback received from industry, focuses around three main issues:

  • The roles of parties to a construction contract are routinely amended to the point that the roles and responsibilities are not clear.
  • Information is not proactively provided and does not flow easily between parties.
  • In practical terms, it is becoming increasingly difficult to hold parties accountable for the quality of their work.

Reviewing certification schemes

There is also a specific focus on reviewing and enhancing the certification schemes for licensed building practitioners, engineers and plumbers, gasfitters and drainlayers.

The relatively low barriers to entry for a number of positions within the sector has been highlighted by industry groups involved in the sector discussions with MBIE over the past year, such as the Registered Master Builders Association.

Part of wider government work

While these legislative reforms are aimed more towards the quality and robustness of the sector, they flow from significant government work programmes aimed at increasing the overall building and construction capacity of the industry through reviews to:

  • the immigration settings for those with construction skills
  • the ambitious KiwiBuild programme
  • the construction skills shortage action plan.

Aim to strengthen partnership

MBIE’s long-term outcomes for this review are focused on instituting a stronger partnership between the industry and the government to improve performance while establishing a long-term measurable strategy for the building system and bracing the sector to respond to future demands.

Following this round of consultation and the drafting process, a Bill is expected to be introduced to Parliament next year.

Construction Sector Accord shared goals

Minister for Building and Construction Jenny Salesa concurrently announced and signed the Construction Sector Accord on 14 April 2019. This is a joint commitment between the government and industry leaders to strengthen the partnership and to be a catalyst to transform the sector for the benefit of all New Zealand.

The Accord seeks to do this by agreeing the common concerns with the sector and setting out a shared set of goals and principles with priority work areas and high-level commitments to action for the transformation of the sector.

The next phase of the Accord is for the sector to collaborate on a wider basis to develop a more detailed construction sector transformation plan, including a shared governance structure, to meet the challenges and achieve the Accord’s desired outcomes.

Time will tell

The question remains as to whether these initiatives will cut through red tape and address key concerns within the sector or whether it is just more white paper. Only time will tell.

Note

The discussion document is available from www.mbie.govt.nz/have-your-say. Submissions close on 16 June 2019.

Download the PDF

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