The Industry Transformation Framework identifies 30 future best practices to transform the New Zealand building and construction industry.
It is unashamably ambitious, calling on the sector to work together to make our industry fit for the 21st century.
The value of a framework
The framework calls on companies, the sector and government to prepare the ground work for system transformation.
It was first tabled at Constructive 17 in August 2017.
ITA framework in detail
The company group of the framework identifies best practices that companies can spearhead individually to achieve transformation.
Technology, materials and tools
New technology, materials and tools are powerful tools for innovation. They have the potential to transform how companies design and build buildings, and improve productivity and reduce cost. Best practices include:
- Advanced building and finishing materials
- New construction technologies
- Standardised, modularised and prefabricated components
- Smart & life-cycle optimising, and data capture equipment
- (Semi-) automated construction equipment
- Digital technologies and big data
Processes and operations
The building and construction process is complex and typically hampered by late design changes and a lack of information sharing and collaboration by all parties involved in the project. By streamlining and strengthening processes and operations, we can build better buildings faster and more cost effectively. Best practices include:
- Concerted time in design and (front-loaded) project planning
- Collaboration with subcontractors and suppliers
- Active/continuous risk management; collaboration with project owners
- Lean and safe construction management and operations
- Project management: learning from project to project
- Project monitoring (scope, time, cost)
Strategy and business model innovation
These best practices focus on how companies can be more agile, collaborative and better positioned to support growth while still competing effectively:
- Differentiated business models, consolidation and/or partnerships
- Sustainable products with optimal life-cycle value
- Internationalisation strategies to increase scale
People, organisation and culture
Changing demographics, skill shortages and new technologies demand a radical rethink of employment practices. Best practices include:
- Workforce planning, smart hiring and enhanced retention
- Continuous training and people development, knowledge management and sharing
- High-performance culture; innovation-friendly and forward-looking
The sector group identifies best practices best tackled by companies in collaboration with their peers.
Working together to agree on standards, shared information and benchmarking will be crucial. Best practices include:
- Mutual consent on standards across the industry
- Benchmarking and data exchange
- Best-practice sharing
Joint industry marketing
Joint industry marketing can benefit all of us. Best practices include:
- Industry-wide collaboration on employer marketing
- Coordinated communication with society and communities
- Effective interaction with the public sector
Government regulations and policies
The government group identifies best practices to be led by central and local government as both regulators and major project owners.
Regulation and policy
Smart policy and regulatory settings can help transform the operating environment. Best practices include:
- Adherence to harmonised building codes/standards; efficient permit processes
- Market openness to international firms and small and medium- sized enterprises (SMEs)
- Promotion and funding of R&D, technology adoption and education
Governments are a major client of the industry and need to actively coordinate public sector demand. Best practices include:
- Maintain high transparency standards
- Actively manage project pipeline and funding
- Set realistic bidding requirements, and drive efficient and effective bidding processes
The role of clients in transformation?
Work is currently underway to determine - "What is the role of clients in transformation?"
To help understand this, the ITA has been consulting with interested parties such as the Construction Clients’ Group of Constructing Excellence. These discussions are confirming that the voice of clients will be pivotal in demanding and driving transformative change across the industry in New Zealand.
Putting the ITA framework into action
After consulting with industry representatives, six priorities were identified for New Zealand.