Construction Sector Accord launches $37 million transformation plan

The Minister for Building and Construction and the Minister of Housing, Dr Megan Woods, together with the Construction Sector Accord leadership recently launched the Construction Sector Transformation Plan 2022-2025. The plan received $37 million for its implementation in the recent budget.

View the Construction Sector Transformation Plan 2022-2025

Often used as a barometer for the health of the economy, New Zealand's construction sector employs more than 290,000 people and contributes about 7.6 percent of the country's GDP (economic output of a nation).

Launched in April 2019, the Construction Sector Accord is a genuine partnership between industry and government to work together to tackle systemic problems that have beset the sector.

Membership of the Construction Sector Accord's Network includes leaders from across the public and private sector, from major commercial, vertical and residential construction companies to property developers, industry and professional bodies, and unions.

"The Transformation Plan 2022-2025 builds on the momentum that the Accord has achieved over the past three years," says Accord Steering Group co-chair, Andrew Crisp. "One of the fantastic outcomes of the Accord since it launched three years ago, has been the partnership built between industry and government.

"The Accord has become a trusted partner to government and a vehicle where ministers and advisors can hear directly from industry to understand the impact of policy on the construction sector."

Tracey Ryan, co-chair of the Accord's Steering Group says, "There are still significant challenges facing our sector. The Transformation Plan 2022-2025 has been informed by industry – we have asked the sector what their biggest concerns and challenges are.

"We have looked around the world to understand where the construction industry is headed and how governments and industry have most effectively worked together to achieve transformational change," says Tracey Ryan.

The Transformation Plan 2022-2025 focuses on four areas: People, Client Leadership, Environment and Innovation, with the ability to also respond to emerging issues and opportunities.

There are six key goals that will drive change including:

• Increased capabilities of leaders to drive change
• A more skilled and diverse workforce that is future ready
• More thriving people and organisations
• Greater Māori construction economy success
• Reduced waste and embodied and operational carbon
• Increased productivity through innovation, technology and an enabling regulatory environment.

To deliver on the key goal of greater Māori construction economy success, the Māori Advisory Group, Kōtuiā te hono, has been developed to drive delivery and advice on how the Accord can uplift the Māori construction economy. In addition, new sector reference groups made up of representatives from the residential, commercial and infrastructure sub-sectors have been established. The new reference groups will drive and inform change and plan delivery across the sectors.

Andrew Crisp says the Accord's role is not to direct the construction sector, rather it's about enabling and supporting behaviour change through industry and government collaboration.

"The effective partnerships formed between government and industry, and across industry, since the launch of the Construction Sector Accord in 2019 have reinforced that a partnership approach is key to how we drive change throughout our sector.

"We are confident that the work outlined in the Transformation Plan 2022-2025 will build on the work already underway in our sector, and reinforce existing partnerships, that are already changing culture and behaviours, to achieve a safer, better skilled, more productive industry that benefits all New Zealanders," says Andrew Crisp.