Procurement and pipeline management

The public sector spend on buildings and infrastructure makes up around 20% of the construction industry. The Government is committing to a more visible pipeline of work and procurement practices that are fair, efficient and predictable.

The New Zealand Infrastructure Commission

The New Zealand Infrastructure Commission — Te Waihanga(external link), is being established to:

  • develop a long-term infrastructure strategy for New Zealand by working with central and local government, and private sector infrastructure owners and investors
  • publish a pipeline of upcoming infrastructure projects(external link) and act as a first point of contact for industry
  • enable coordination of infrastructure planning
  • provide advice and best practice support to agencies and local authorities in planning and delivering major infrastructure projects
  • promote a whole-of life cost and outcome approach to infrastructure procurement so best long-term value is chosen over cheapest price

KiwiBuild

The KiwiBuild(external link) programme provides a pipeline of 100,000 new homes, giving greater certainty of construction demand in larger centres.

Housing and Urban Development Authority

The new Housing and Urban Development Authority (HUDA)(external link) will increase the pace, scale and certainty of development, including large-scale urban regeneration projects and KiwiBuild.

Partnering with local government

Agencies will partner more with local government through the Urban Growth Agenda(external link), to plan and commit to an accelerated pipeline of infrastructure and urban development projects. This includes specific work by the NZ Transport Agency on transport infrastructure projects.

Innovate, Partner, Build

The Innovate, Parter, Build(external link) programme will create procurement efficiencies by guaranteeing construction companies set volumes of work through its capacity partnering agreements.

Construction Procurement Guidelines

The Construction Procurement Guidelines(external link) will be revised, including more detail on risk management, and Ministers are requiring their agency Chief Executives to follow them.

Government procurement rules

New government procurement rules(external link) will require agencies to follow the construction procurement guides where appropriate, and to submit an assessment of their general procurement performance to MBIE so areas for improvement can be identified.

Transport infrastructure strategy

The transport infrastructure procurement strategy will be refreshed, and the NZ Transport Agency will publish a list of industry engagement activities to ensure all businesses have the opportunity to engage with the transport work programme.

Social Procurement Framework

A social procurement framework is being developed to enable and encourage agencies to engage with businesses that are socially responsible, and make it easier for businesses by creating a consistent approach from agencies.