Productivity Partnership Newsletter November 2013

FEATURE

AUCKLAND PIPELINE REPORT NO.3

The Productivity Partnership's Auckland Procurement Forum has released its third Auckland Pipeline Report, prepared by Constructing Excellence in New Zealand. Auckland Pipeline Report No. 3 provides a forward view of major public sector construction projects planned over the next three years in the Auckland region, including new build, refurbishment and upgrade projects. Understanding the future state of Auckland's construction market is key to informing procurement decisions. Features of the third report include data from new client organisations, inclusion of a supply-side perspective and more detail on client spend by trade division, enabling a clearer picture of spend areas. The next Auckland Pipeline Report is due for release later this month.

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FEATURE

IN PARTNERSHIP

You will have noticed we've been quiet over the last couple of months. The
Productivity Partnership's funding agreement with BRANZ, BCITO, PGDITO and MBIE expired at the end of June.

In the interim we've been mapping our way forward with MBIE, with some additional support from BRANZ on specific projects.

There is an obvious fit between the Partnership's drive to lift the building and construction sector's performance and MBIE's goal of lifting New Zealand's economic performance overall. In particular, there is synergy with MBIE's priority area to create well-functioning housing and construction markets.

The Governance Group is no more and it is with great sadness that we farewelled our founding chairman, the late Bill Smith, in September. We are now looking at what ongoing governance structure, if any, is needed for our operations and we expect a resolution by the end of the year.

One thing is certain – the Productivity Partnership will continue towards achieving our goal of a 20% improvement in sector productivity by 2020.

Core to the Partnership's continued existence is our commitment to building the value of the building and construction sector. Our strength is our ability to get things done, from an informed basis. Our role in bringing people together across the sector is proven, and the potential of our wide networks to foster collaboration between industry and government is being realised, especially in Canterbury.
The workstream chairs are working with us through the transition period. Improving industry skills, procurement practice and construction systems, directed by a sound evidence base, remain as important as ever.

Our priorities are:

This extensive work programme is supported by a lean Secretariat team, led by me.
I know that Bill would be immensely satisfied to see the Partnership as an effective catalyst for industry action, especially in Christchurch. An enduring, effective partnership between government and industry, for the good of New Zealand, is his legacy.

Chris Kane

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FEATURE

ON SITE

Currently, the Productivity Partnership is working with industry on:

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FEATURE

SMARTER PROCUREMENT FOR AUCKLAND

Smarter procurement is at the heart of lifting the productivity of the building and construction sector. With the high level of construction activity in Auckland, improving how the procurement process is managed will make a big difference to sector productivity at both regional and national levels, with significant economic benefits.

A key player in the Auckland "buildscape" is the Auckland Procurement Forum. It was established at the advent of the Auckland amalgamation in 2011 by the Productivity Partnership, with the support of Auckland Council, to bring major construction clients together. This collaborative forum is chaired by Auckland Council Chief Operating Officer, Dean Kimpton, and has a three to five year plan to drive more efficient procurement and project delivery practices across the region through four workstreams.

SMARTER PROCCUREMENT

On 7 November the Forum's Auckland Procurement Workstream hosted a workshop to help identify opportunities for improvement, including any potential industry-wide game changing initiatives.

"Our workstream is about reducing waste in procurement," says Auckland Council Chief Engineer and workstream chair Sarah Sinclair. "People spend too much time on the procurement process and that takes them away from other business. We surveyed the industry in 2012 about what causes waste and frustration. What emerged from the feedback were some key themes, which we wanted to brainstorm with the industry, to look for ideas for individuals, for organisations and for the industry to take on."

The workshop focused on three issues:

Reporting on the workshop Sarah says it was an intensive day that was intended to be thought-provoking. "It was fantastic. We had more than 100 people brainstorming for three hours on three separate subjects. The breadth of the discussion was wider than I thought it would be. There was a lot of talk about how we engage with the supply chain, the need for better communication and strategic planning and procurement."

Sarah says the best thing that emerged from the day is tangible ways clients and contractors can work differently to improve procurement. There was an excellent turnout from right across the industry at the workshop including CEOs, COOs and chief infrastructure officers of major organisations.

"It was great having people at the top of their game presenting what they do so others can take away good ideas and put them into practice," says Sarah. "The industry is at different stages of maturity so this kind of learning opportunity is really valuable."

TANGIBLE RESULTS
Two results of the workshop are a commitment to keep the Auckland Procurement Workstream going and support for Auckland Council to lead an "industry lessons learned forum". It was agreed that both will help improve industry communication and sharing information in the procurement space.

There's a ton of good stuff to come out of the workshop, according to Sarah. The outputs of the day are being written up, alongside the steering group's suggestions of how to take things forward. "Together, decision makers and procurement leaders in Auckland have mapped out where we could be, where we want to be and the stepping stones towards it. We've made great progress."

The findings from the workshop will be showcased at the Auckland Procurement Forum being held on 27 November (see Auckland Procurement Forum).

AUCKLAND PROCUREMENT FORUM

ANNUAL MEETING 27 November 2013

One of the big events on the construction industry's calendar is the annual meeting of the
Auckland Procurement Forum.

This year's programme features:

Those involved in both the demand and supply side of the industry will find this event a morning well spent.

For more information please contact Tim Warren at Constructing Excellence,
email

MAKE IT YOUR BUSINESS TO BE THERE!

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FEATURE

EYE ON CHRISTCHURCH

The forward capital works intentions for public sector clients involved in the Canterbury rebuild are estimated to be worth over $4.1 billion through to the end of the first quarter of 2015, according to Productivity Partnership Programme Director Peter Cunningham. These will involve clients going to market over the next six quarters which would conservatively create around $30 million of tender costs for contractors alone. Peter says that how the clients plan their work programme, engage with the sector and manage the associated tender process will be critical to successful project outcomes and overall delivery of the rebuild and recovery in Canterbury.

The Productivity Partnership is working with MBIE, through CERA, to improve the engagement and tender process by moving clients from the traditional way of going to market via RFPs and EOIs to a more co-ordinated programme managed approach to the rebuild. "What we're trying to do is to pre-qualify suppliers via a syndicated RFP for all public sector clients," says Peter. This process will be managed by MBIE's government procurement branch. "A managed programme of work will provide greater certainty about what projects are coming to market and when," he says. "Currently, clients are developing their programmes of work in isolation from each other. One of the dangers of this is that multiple clients will be going to market at the same time in an already resource constrained market."

The Partnership is also sharing information with the supply side of the sector through the recently formed Canterbury Construction Forum and the Construction Strategy Group to ensure it has a clear forward view of capital works intentions from public sector clients.

"We are seeking to bring clients and suppliers closer together to collaborate to achieve the best possible building outcomes and solutions for the Canterbury rebuild," is how Peter describes the Partnership's unique role.

Planned procurement for major public projects will be supported by the forecasting work currently being done by the Productivity Partnership. A meeting of the Canterbury Procurement Forum on 16 October provided an opportunity for clients to exchange critical information on planned public works and highlighted the challenge ahead.

The next set of data collected by the Partnership on forward work intentions of public sector clients in Canterbury – accounting for approximately 60% of the rebuild – is being released this month.

Timing is critical. "We're getting closer to the start of the major part of the work programme and it's essential that we have the best possible information available from clients to enable the supply side of the market to plan and gear up to meet expected demand," says Peter.

It's the Partnership's view that improving procurement practice by public sector clients in Canterbury will have a positive spin-off across the industry and contribute to higher productivity both in Canterbury and across the country.

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FEATURE

GETTING ON BOARD WITH BIM

Understanding and use of Building Information Modelling (BIM) by New Zealand's construction industry will be greatly assisted by better information. The Productivity Partnership is leading the production of a BIM handbook specifically for the New Zealand market. An industry working party headed by Construction Systems workstream leader, Andrew Reding, met in Auckland on 15 October to review the draft handbook which is due to be released for industry comment in December.

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PARTNERSHIP PEOPLE

REBECCA KEARNS

Secretariat glue and humourist, Naki native and mountain biker.

If you call the Productivity Partnership, chances are you'll speak to Rebecca Kearns.

She's the Partnership's first point of contact and can put you in touch with who you need to talk to. As Secretariat Administrator, Rebecca or "Becks" is the glue in the secretariat team, with her finger on the team's diaries, finances, travel arrangements and general business. Her sharp mind and quick wit help the Partnership navigate challenges with a sense of humour.

This month Rebecca celebrates her first anniversary with the Partnership and has seen its value to the industry first hand. "The most important thing about the Partnership is that it is a partnership between industry and government, not just a government initiative," says Rebecca. "It's a very useful 'in between' vehicle. We're not about policy, we're action orientated and people like that. The industry wants to see results."

With a degree in Psychology and Criminology from Victoria University, Rebecca enjoys the strategic side of her job. "I like being involved in strategic planning – providing input to mapping the future of the Partnership – where it can go next."

A "Naki" native, Rebecca frequently visits her family on their lifestyle block just out of New Plymouth. She's a devotee of mountain biking, with Makara Peak near Wellington's rugged southern coast rating highly among her favourite tracks. Future plans include travel overseas.

Meanwhile, if you've a question about the Productivity Partnership, get in touch with Becks,
phone or email

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