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- Accord set to change 'rules of the game' in construction industry
- Launch of the Construction Sector Accord
New broader outcomes guidance published
The Construction Sector Accord has published new guidance to support government buyers and industry suppliers in applying broader outcomes in construction procurement.
On this page
Broader outcomes are the additional benefits that can be achieved by the way a service, project or goods are produced or delivered. These outcomes can be social, environmental, cultural or economic benefits that deliver long-term public value for New Zealand.
Video Transcript
Visuals
Logo: Construction Sector Accord.
Shots of a construction site.
Text on screen: Broader outcomes.
Text on screen: Broader outcomes are the additional benefits that can be achieved by the way a service, project or goods are produced or delivered. They can be social, environmental, cultural or economic benefits that deliver long-term public value for New Zealand.
Alan Adcock interview.
Audio
Alan Adcock: We're going to be in this place for a long, long time. We're part of the community and whether it goes well or poorly as it develops impacts on all those around us. So the way the way that we do things has an enduring impact. If we can make that a positive one, that's a good thing.
Visuals
Shots of construction work.
Logo: Canam.
Logo: Whangarei District Council.
Text on screen: Canam and Whangarei District Council are implementing broader outcomes on the Council's Civic Centre project. Their innovative procurement process promotes community objectives, including use of local companies and training opportunities for the local workforce.
Audio
Alan Adcock: Everybody benefits from this, it's win-win all the way around. The benefits for the sector are about building the capacity and if everyone operates more efficiently and more effectively, we create value right through the process.
Visuals
Shots of construction work.
Nathan Te Miha interview.
Audio
Nathan Te Miha: When you stand back and you look at what broader outcomes can create. It can change an economy, it can change communities and at the same time be sustainable and you can also make money.
Visuals
Images of new houses.
Logo: ICONIQ Group.
Text on screen: ICONIQ Group is implementing broader outcomes through its projects with Kāinga Ora by supporting and promoting the use of Māori and Pasifika construction businesses and creating apprenticeship opportunities for local rangatahi.
Audio
Nathan Te Miha: Imagine how many businesses you can help grow if you just implemented a small percentage of broader outcomes within the contracts. You have to respect the other business owners around they've been in business for so long too and they only know what they know. At the same time if they've got subcontractors that they use then that's fine too. But even if you use one Māori or Pasifika business for a smaller project, imagine what change you can create by giving that individual or business a chance.
Visuals
Shots of construction work.
Image of ICONIQ Group's apprentices.
Audio
Alan Adcock: I think everyone should be trying to embrace achieving more than just getting things done for the lowest price they can. It's about creating value, it's about being sustainable.
Visuals
Shots of construction work.
Audio
Nathan Te Miha: It's not about one, it’s about everyone. If we can lift everyone together, meaning just as simple as a concrete layer or fencing contractor, then I feel we're doing our job as a business.
Visuals
Drone footage of construction site and crane.
Logo: Construction Sector Accord.
Transcript ends.
The guides will help buyers and suppliers better understand what broader outcomes are, why they are important, how to embed them into government procurement and tender documents, and what impact they have on tender evaluation. The Accord is proud to publish the first version of the guidance and looks forward to working with the sector to regularly update the guides to support the needs of the construction industry.
Read the guides and learn more about broader outcomes.
In October 2018, the Government recognised that its procurement activities offer a unique opportunity to achieve broader cultural, economic, environmental and social outcomes for Aotearoa New Zealand. These outcomes are incorporated into the Government Procurement Rules(external link).
The construction sector alone contributed $17 billion to the country's GDP in 2020 and employs more than 200,000 New Zealanders. Alison Murray, Director of Construction Procurement Transformation for the Construction Sector Accord, says there are significant opportunities in the sector that go beyond constructing new works.
"The workforce needs 76,000 more staff, construction waste contributes to 50% of what is sent to landfill each year and less than 18% of the construction-related workforce are women," says Murray.
"By embedding broader outcomes into construction projects, these opportunities in our sector can help create a higher performing industry for a better New Zealand."
Government agencies and construction companies across the country are already making broader outcomes a key part of their projects.
Whangarei District Council and its construction partner, Canam, embedded broader outcomes at the outset of the Council's Civic Centre project. The $48 million project was recently announced as a Beacons Case Study due to its innovative procurement approach that promotes community objectives, including the use of local companies and training opportunities for the region’s workforce.
Read the Canam and Whangarei District Council's Beacons case study.
As a result of this approach, 200 jobs have been created in the region for the project – 80% of those are in the local area, 25% are apprentices and trainees, and 20% of the workers on site are female.
"Through our Beacons programme we’re seeing many agencies and businesses making a huge difference to our sector by embedding broader outcomes into their projects," says Murray. "We hope this guidance helps others across the construction industry better understand these outcomes and do the same."
Read the guides and learn more about broader outcomes.
The guides will be updated regularly to support the needs of the construction sector. If you would like to provide any feedback, please contact us at accord@mbie.govt.nz.