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Government creates guidelines to stop construction firms collapsing

Author
Newstalk ZB,
Publish Date
Mon, 30 Sep 2019, 12:33PM
Economic Development Minister Phil Twyford

Government creates guidelines to stop construction firms collapsing

Author
Newstalk ZB,
Publish Date
Mon, 30 Sep 2019, 12:33PM

The government is hoping the private sector will follow its lead when it comes to contracts for multi-million dollar construction projects.

New procurement rules, which include better negotiation of risk and a shift away from the lowest price model, come into effect tomorrow.

Economic Development Minister Phil Twyford says the government makes up 18 percent of all large-scale construction projects.

He says the government will change the way it negotiates contracts and try to use its buying power for good.

“The industry needs much more support so it can complete the big jobs the government wants.”

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