Current state of construction industry in New Zealand
Date: 03 April 2023
According to recent studies and reports, the construction industry in New Zealand is facing a significant rise in claims and disputes due to various factors, including inadequate contract management, poor project planning, insufficient design documentation, and unclear client requirements.
The most common types of construction claims in New Zealand include delays, variations, and defective workmanship. The claims process involves lengthy and costly procedures that often end in litigation, arbitration, or other forms of dispute resolution.
The government and industry players are taking steps to address the issue, including reforms in the Construction Contracts Act, implementation of the Construction Sector Accord and the introduction of alternative dispute resolution mechanisms. The focus is on enhancing communication, collaboration, and transparency among project stakeholders and promoting a culture of proactive risk management and integrated project delivery.
Overall, while the current state of construction claims in New Zealand presents significant challenges, there is also an opportunity to improve industry practices, enhance accountability and transparency, and foster long-term relationships among industry players.
Being part of the Construction Sector Acord, FC International has developed training programmes to help all construction players (developers, contractors and subcontractors) to better plan and mitigate inevitable issues on construction projects.