INDEPENDENT NEWS

Govt sweeteners for KiwiBuild offsite manufacturers

Published: Thu 6 Sep 2018 08:15 PM
Govt dangles sweeteners in pitch for KiwiBuild offsite manufacturers
By Paul McBeth
Sept. 6 (BusinessDesk) - The government is dangling access to Regional Economic Development Minister Shane Jones's provincial growth fund in an effort to lure firms interested in setting up offsite manufacturing (OSM) factories to back the KiwiBuild construction programme.
The Ministry of Business, Innovation and Employment's KiwiBuild unit today issued an invitation to participate (ITP) for offsite manufacturers to support the construction of 100,000 houses over the next decade. Housing Minister Phil Twyford foreshadowed the tender in June, saying he'd been approached by a number of foreign and domestic firms already using offsite manufacturing for rapid construction, and the New Zealand Superannuation Fund has shown an interest in investing in prefabricated housing.
KiwiBuild wants ideas and proposals from potential suppliers and consortia to support the programme, and sees this move as part of a wider government strategy to use its buying power "to increase productivity and drive innovation gains in the building and construction sector". Ultimately, it seeks to cut construction costs, deliver consistent quality, boost capacity and accelerate building times.
The government wants to de-risk the capital-intensive investment in offsite manufacturing and is willing to offer financial support and other assistance if suppliers can meet its goals. That includes facilitating "access to other sources of government financial support such as the Provincial Growth Fund and assistance with the mitigation or removal of barriers and constraints identified by respondents," the document said.
KiwiBuild head Stephen Barclay said offsite manufacturing has been considered a "potential game-changer" for a long time.
"When we look at the proposals, consistent quality will be a high priority, alongside the other inherent benefits that OSM should offer, such as reduced construction costs and speed to market," Barclay said. "If you combine our approach to this procurement process with the government’s commitment to share risk and enable delivery, then I think we’ll see this ITP generate some really compelling, innovative, solutions-oriented proposals when it comes to offsite manufacturing, and we welcome that."
Responses are due by Nov. 12, with a shortlist to present to an evaluation panel in the first quarter of next year.
"Following this, there will be a period of negotiation with successful respondents to work through terms of engagement, the duration of which will be determined by the scale and complexity of the proposal," the KiwiBuild document said.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

2018: New Zealand’s equal-2nd warmest year on record
By: NIWA
GDP growth dampens in the September quarter
By: Statistics New Zealand
Coalition Government delivers boost for low income workers
By: New Zealand Government
IKEA to open in New Zealand
By: IKEA
2018 another hot year in NZ - Expert Reaction
By: Science Media Centre
Science Deadline: another hot year, fibre's benefits, 1080
By: Science Media Centre
2018 was NZ's warmest year on record - climate scientist
By: RNZ
Honours recognise work that addresses climate change
By: New Zealand Government
NZ economic growth softer than expected in Sept quarter
By: BusinessDesk
NZ economy slows, growth per person stalls
By: New Zealand National Party
Economic slowdown must prompt change in direction
By: ACT New Zealand
Taxpayers’ Union responds to economic growth slowdown
By: New Zealand Taxpayers' Union
Government outlines planned hikes in minimum wage
By: BusinessDesk
Wage rise welcome for some, worry for others
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media