Construction Sector Transformation Plan

Monday, February 3, 2020

On 26 January 2020 the Government released the three year Construction Sector Transformation Plan (Plan) which aims to ease the delivery of the workforce and productivity gains needed to boost the construction sector and deliver the recently announced infrastructure projects. According to the National Construction Pipeline Report 2019, construction activity is due to total $214.9 billion over the next five years (not including the further $12 billion investment announced in December).

Jenny Salesa, Minister for Building and Construction announced the Plan by saying:

“The action plan launched today delivers on the Government’s Construction Sector Accord promise in April to develop a tangible plan that ensures industry has the rights skills, the right people and the right internal coordination to lift its productivity and take advantage of the quarter of a trillion dollars of public and private construction work expected over the next five years”

This is the first Industry Transformation Plan and is part of the Construction Sector Accord’s (Accord) programme of works. The only remaining phase of the Accord’s programme is the Building System Legislative Reform Programme. The Bill is due in the first half of this year and we will provide our review on this when it is released.

The Plan is a three year plan which aims to remedy some of the challenges in the construction sector including skills shortages and development, allocation of risk, complex contracts, the boom and bust nature of the industry and aims to address issues with procurement and mental health in the sector.

The Plan sets out six main areas as follows:

  1. Leadership – Transformation requires effective cross-government and industry leadership, and will be supported by the sharing of success stories and lessons learned, and a co-ordinated voice on reforms
  2. Business Performance – Programmes in the Transformation Plan focus on lifting performance through a clearer pipeline and by sharing good business and risk management practice.
  3. People Development – The plan aims to build capability through addressing skills gaps, helping shape the reforms in vocational education, and creating a long-term workforce plan.
  4. Health, Safety and Wellbeing – It’s vital we reduce the number of workplace accidents and create a more supportive work environment – actions in the plan will work toward a better health and safety culture in the sector.
  5. Regulatory Environment – Programmes in the Transformation Plan will improve our building consenting system and create a single leadership voice to help shape and drive building legislative reform.
  6. Procurement and Risk – Good procurement practices are essential to high performance in the sector. The plan focuses on building procurement skills, promoting clearer contracts, and a better deal for subcontractors.

The Plan includes annual milestones for implementation of these six areas between now and June 2022.We will provide further updates as they are released.

In the meantime please contact our team if you wish to discuss the implications of the Plan or require assistance with submissions to the Accord’s leadership group (MBIE, specialist external consultants and industry leaders).

 

Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.

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