The Press

Building sector faces big hurdles

Stretched industry is splintered, inefficien­t and needs to develop trust despite ‘burnt fingers’, writes Marta Steeman.

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The fragmentat­ion of the New Zealand constructi­on industry, and the shortage of skills across the board from builders to designers to engineers, are key challenges with no short-term solutions.

These were among the issues discussed at ‘‘The Great Constructi­on Debate’’ organised by the Property Council and held in Auck- land recently.

Attended by 250 industry members, the debate aimed to air the challenges, particular­ly in Auckland where there is a huge pipeline of constructi­on work in the next few years.

One of the participan­ts in the panel debate, Chris Haines from quantity surveyors Rider Levett Bucknall, said an industry made up of many small operators was inefficien­t and costs were high.

The public perception was that projects were developed by tradesmen for big constructi­on companies such as Fletchers Constructi­on and Hawkins, and these firms were investing in apprentice­ships. The reality was ‘‘almost completely the opposite’’.

Big companies such as Fletchers and Hawkins managed the projects but there could be 45 subcontrac­ting trades, who had to be co-ordinated like a well-oiled machine.

The meeting heard that the skills shortage was being solved on building sites by hiring lots of subcontrac­tors who might be hiring other subcontrac­tors and crews of builders, individual builders and teams of overseas workers. But these were short-term solutions plugging a gap.

With the fragmentat­ion of the industry ‘‘the training and the apprentice­ships are coming from the bottom up rather than from the top down,’’ the meeting heard.

Haines said there needed to be a catalyst to get some of the big contractor­s – who were often overseasow­ned and well-funded – to invest more in the physical side of constructi­on and apprentice­ships and forge more relationsh­ips with sub-trades.

The industry acknowledg­ed it was hard for subcontrac­tors to employ a large staff because their workloads were so variable.

Haines said there was discussion about clients bundling commercial projects into packages that would give big contractor­s more security for forward work planning, and which might encourage the big tier-one and tier-two contractor­s to invest more in training.

The skills deficit was not just in the physical part of the building industry but also in design, architectu­re and engineerin­g and other discipline­s, the meeting heard.

The meeting agreed there needed to be sharing of knowledge, but knowledge was regarded as intellectu­al property, Haines said.

Phil Eaton, managing director of project management company Greenstone Group, said a key issue for all parties was that the constructi­on market in Auckland was already at its peak capacity.

Resources were stretched and many businesses only had time to focus on delivering projects rather than also investing in training and the business.

For developers, constructi­on costs were a major issue. Because of the way buildings were constructe­d, with most parts of a project bespoke, it was hard to get efficienci­es. Off-site manufactur­ed products were used in parts of the commercial building market but much more could be done.

‘‘Training and innovation are less likely to be carried out as the small businesses cannot afford it or do not have the confidence in forward work to do so,’’ Eaton said.

‘‘Trust in the constructi­on sector is a big issue. Everyone has had their fingers burnt and are a bit more than wary.’’

The Property Council said it would be using the content from the debate to inform its advocacy strategy.

‘‘Training and innovation are less likely to be carried out as the small businesses cannot afford it or do not have the confidence in forward work to do so.’’ Phil Eaton of Greenstone Group

 ?? CHRIS SKELTON/STUFF ?? The City Rail Link is a huge civil constructi­on project under way in Auckland.
CHRIS SKELTON/STUFF The City Rail Link is a huge civil constructi­on project under way in Auckland.

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