Risk management the most critical issue for the construction industry 31 July 2018

 A survey conducted by Registered Master Builders of the industry’s leading figures has revealed over half believe the sector is not performing to its potential, due to risk allocation in contracts and a lack of skills. 

The survey went out to over 50 select CEOs and senior managers from the leading commercial and residential building companies, property developers and designers, as well as other prominent figures in procurement, dispute settlement and construction law. It was conducted in the lead up to the third annual “all-of-sector” Constructive Forum, taking place on 16 August in Wellington. More details of the findings will be revealed at Constructive. 

“Constructive focuses on bringing industry together to solve these issues, and while considerable progress has been made, our survey shows there is still more to do,” says Registered Master Builders Chief Executive David Kelly.

“More equitable risk allocation in contracts is viewed as the most critical issue for industry transformation. This year’s Forum will discuss what needs to change to avoid further high-profile construction project failures. 

“This is not something the industry can solve alone, and Constructive will provide the opportunity to discuss with Government how to improve the way we price and manage risk in our sector,” says Kelly.

“Improved collaboration was also ranked as a critical issue to transform the industry, and this is what Constructive is all about – bringing together the entire supply chain, with Government, to tackle the issues as a whole.

“It is also unsurprising that a lack of skills was ranked the most critical issue affecting the sector right now. This has been a focus since the first Constructive in 2016, and we will highlight some of the initiatives that are underway. 

“The sector is working hard to raise the profile and lift the attractiveness of building and construction to more diverse groups, and this continues to be a key focus.”

Improved collaboration, through adopting technology and innovation in the way we work, is also important for the sector. Constructive will share the innovations and new approaches being used, including BIM, prefabrication and 3D printing and modelling.

The Constructive Forum takes place at the Museum of New Zealand Te Papa Tongarewa on Thursday 16th August in Wellington.